Report On Online Shopping

L.J.
INSTITUTE OF BUSINESS ADMINISTRATION
2012-13
L.J. INSTITUTE OF BUSINESS ADMINISTRATION
2012-13
A PROJECT REPORT BASED ON
CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING (E-Shopping)

Submitted To, L.J. Institute of Business Administration Vastrapur, Ahmedabad
Project Guide, Prof. Saurin Shah
Submitted by : T.Y.B.B.A. (2012-13)
2012-13
No. 1 2 3 4 5 6
Subject Certificate Acknowledgement Preface Problem Statement Objectives of Study Macro Information History of Online Shopping History of E-Commerce E-Commerce Today Future of E-Commerce Indian Scenario E-Commerce & Competition Foundations of Consumer Behaviour Consumer behaviour towards online shopping in India Future of online shopping in India
Pg. No 5 6 7 8 10 12 13 23 33 34 37 43 47 69 84 86 87 93 98 102 108 116 117 136 151 158
Micro Information Myntra.com Flipkart.com Jabong.com Ebay.com
8 9
Survey Questionnaire Analysis of Questionnaire Shoppers Non-Shoppers
10 11
Research Methodology S.W.O.T Analysis
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12 14 15 16 17 18 19
Observations Findings Limitations Suggestions Conclusions Bibliography Declaration
163 166 171 173 175 177 178
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ACKNOWLEDGEMENT
The successful completion of this project would not have been possible without the co-operation and support of our respected teachers, beloved friends and our institute of inspiration, L.J. Institute of Business Administration. We hereby acknowledge the relentless and wholehearted support from one and all of our wellwishers and express everlasting gratitude to the respected professor in charge, Prof. Saurin Shah & our respected Director Prof. Rupal Shah for imparting valuable guidance and co-operation during the consolidation of our perception in the form of report. And also to all other seniors and friends who have extended their support in our getting the required material, facts and figure and drive to make this report as a successful assignment. Further, we are thankful to all the people eho spared a minute from their busy schedule and obliged us by giving their co-operation in filling up the questionnaire which was an evitable part of the process of completion of this project report. Our respectful thanks and acknowledgement goes to the leading websites and books which have helped us a lot in our understanding the industry and express ourselves in this project in a better way.We are also thankful to the Gujarat University for introducing the preparation of such report as a significant aspect of the B.B.A programme, without which we would have had any practical exposure of real Business Environment. This practical exercise has helped us to develop our analytical skills and interpretation power.
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PREFACE
Management is the most important thing for the world today. As a part of the co-curriculum activity and management students we had to prepare an in depth analytical report for which we chose to do a report on consumer behaviour towards online shopping of people in Ahmedabad and find out the recent trends in online shopping. We were successful in reaching the people and have a good conversation with them and find out what they think and what they wanted from the online companies and also were they happy with all the facilities provided to them.We gained immense and practical knowledge by going on the streets and communicating with people, this project also helped us out to increase our communication skills with consumers which is an integral part of management. During the academic year 2012-2013, we have under taken the project research work on the topic CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING. This project helped us greatly in understanding, what is consumer behaviour? And how we can deal with a consumer. We also gained practical knowledge of how a consumer thinks when he wants to purchase something. It is a matter of pride for our group to explain this project work wherein we have put our earnest efforts.
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PROBLEM STATEMENT
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PROBLEM STATEMENT
Our study of the project Consumers behaviour towards e-shopping is basically based on the survey of consumers of various age groups to analyse their behaviour towards online shopping & future of e-shopping in the city & India. At present e-commerce is an emerging market segment which is growing rapidly. Our main focus here is on e-shopping as many multinational companies are entering this market segment rapidly in past few years. Since online retailing is a new retailing medium and online consumer behaviour is diverse from traditional consumer behaviour, we aim to identify what influences the online consumer, i.e. the factors that online consumers take into consideration while making decisions about their purchases. To further understand how these factors influence different types of consumers, we must identify various segments which will enable us to make comparisons.
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OBJECTIVES OF THE STUDY
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OBJECTIVES OF THE STUDY

The purpose of this research is primarily to identify and get insight into what main factors influence the consumer when making online purchase decisions. Besides the factors influencing another purpose of the study is to analyze analysis who are online shoppers in terms of demography, i.e. , in terms of age, gender, income and education. The research was conducted to further determine the level of satisfaction of the consumers in Ahmedabad with regard to online shopping and to examine whether customers prefer online shopping significantly to physical stores.
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MACRO INFORMATION
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HISTORY OF ONLINE SHOPPING
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HISTORY OF ONLINE SHOPPING

Shopping on the internet is certainly a popular past time, an efficient timesaver, and a great way to comparison shop on virtually any kind of item youre interested in. The history of e-commerce as most people think of it has a short but interesting time line. Most people dont realize that e-commerce and its underlying technology have been around for about forty years. Weve provided a brief history of e-commerce below starting with its conception and rapid development and finishing with a brief description of its early pioneers.
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This is how E-commerce started:-
TIMELINE
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1960-1982
Paying the way for electric commerce was the development of the Electronic Data Interchange (EDI). EDI replaced traditional mailing and faxing of documents with a digital transfer of data from one computer to another. Trading partners could transfer orders, invoices and other business transactions using a data format that met the ANSI ASC X12, the predominant set of standards in North America. Once an order is sent, it is then examined by a VAN (Value-Added Network) and finally directed to the recipients order processing system. EDI allowed the transfer of data seamlessly without any human intervention. Michael Aldrich, an English inventor, innovator and entrepreneur is credited with developing the predecessor to online shopping. The idea came about during a stroll with his wife and Labrador when Aldrich lamented about their weekly supermarket shopping expedition. This conversation sparked an idea to hook a television to their supermarket to deliver the groceries. Immediately after the discussion Aldrich quickly planned and implemented his idea. In 1979 Aldrich connected a television set to a transaction processing computer with a telephone line and created what he coined, teleshopping, meaning shopping at a distance. ABOUT VIDEOTEXT Videotex was being researched since much earlier for supplying the end users with textual information. Much work was done in UK on videotext, it was a two way message service and developed basically for information sending where many companies were interested in, but on the backdrop of all that Michael Aldrich in 1979 gave the concept of teleshopping (today online shopping) which revolutionized the way businesses happen. Same happened in the US around that year with services like The Source and CompuServe.
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1982-1990
It was apparent from the beginning that B2B online shopping would be commercially lucrative but B2C would not be successful until the later widespread use of PCs and the World Wide Web, also known as, the Internet. In 1982, France launched the precursor to the Internet called, Minitel. The online service used a Videotex terminal machine that was accessed through telephone lines. The Minitel was free to telephone subscribers and connected millions of users to a computing network. By 1999, over 9 million Minitel terminals had been distributed and were connecting approximately 25 million users in this interconnected network of machines. The Minitel system peaked in 1991 and slowly met its demise after the success of the Internet 3 years later. Eventually, in 2011, France Telecom announced its shutdown of the Minitel service system. Sadly, it had not become what it had hoped to be, the Internet.
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1987
With Swreg (offshoot of CompuServe) the community of software developers and shareware authors got an online market where they could sell their product using Merchant account. Thus online shopping started for then software industry people.
1990
Tim Berners-Lee wrote the WorldWideWeb and gave the first browser to view the web which changed most of things; a whole new revolution started, which till date is ON.
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1992
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Revolutionary book by J.H. Snider and Terra Ziporyn namely; Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martins Press.
1994
Netscape released Navigator browser, later introduced Secure Sockets Layer (SSL) encryption for secure transaction. Pizza Hut started online ordering on their webpage, cars, bikes and adult content as well started selling on the internet.
1995
Amazon.com started selling each and everything online, and along with that Jeff Bezos starts first commercial-free 24 hour, internet-only radio stations. Then Radio HK and NetRadio start broadcasting. Companies like Dell and Cisco started using internet in all their transactions. Online auction started by eBay.
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1998
United States started selling Electronic postal stamps online wherein they could be purchased and downloaded for print.
1999
Acquisition of Business.com by eCompanies in US $7.5 million. Napster the peer-to-peer file sharing software launches. Home decorative items started selling on ATG Stores.
2000
The dot-com bust as we know it today wasnt something that happened in a day, over speculation for a period of time (approx. 1995-2000) where just the prefix e- or .com in names could make stock prices rise at great rates. This saw a great many companies rise and fall. Many entrepreneurs came up with brilliant plans and most got pretty generous venture capitalists, most of these firms started working on the principle expand the market and later profits will cover all present debts and losses. This speculation was constantly taking the market upwards with NASDAQ at a peak of 5132.52 points on March 10, 2000. After this the market goes down and with them the over speculating ones were just wiped off the market.
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2002
PayPal the company which offered an alternative (through internet) to cash or check payment was acquired by eBay for $1.5 billion. CSN Stores and NetShops were founded with the concept of domain specific commodity and sprung with many online stores, going for one item on each website.
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2003
Online shopping matures showing to the world their confidence Amazon.com posted first yearly profit and thus again making presence on the stock market.
2007
Acquisition of Business.com by R.H. Donnelley for $345 million, making way for bigger players in technology domain.
2008
Tremendous growth in US in Ecommerce with sales figures touching $204 billion, a decent 17% rise from the previous year.
2009
Online Retailer Amazon.com has an estimated turnover on a daily basis is over US $2.5 trillion with growth rate of 14% annually. Ebay having sales of US $1.89 billion, these numbers alone speak.
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HISTORY OF E-COMMERCE
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HISTORY OF E-COMMERCE
One of the most popular activities on the Web is shopping. It has much allure in it you can shop at your leisure, anytime, and in your pajamas. Literally anyone can have their pages built to display their specific goods and services. History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. The Early Years The term e-commerce was originally conceived to describe the process of conducting business transactions electronically using technology from the Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These technologies, which first appeared in the late 1970s, allowed for the exchange of information and the execution of electronic transactions between businesses, typically in the form of electronic purchase orders and invoices. EDI and EFT were the enabling technologies that laid the groundwork for what we now know as e-commerce. The Boston Computer Exchange, a marketplace for used computer equipment started in 1982, was one of the first known examples of e-commerce. Throughout the 1980s, the proliferation of credit cards, ATM machines and telephone banking was the next step in the evolution of electronic commerce. Starting in the early 90s, e-commerce would also include things such as enterprise resource planning (ERP), data warehousing and data mining. It wasnt until 1994 that e-commerce (as we know it today) really began to accelerate with the introduction of security protocols and high speed internet connections such as DSL, allowing for much faster connection speeds and faster online transaction capability. Industry experts predicted explosive growth in ecommerce related businesses.
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E-COMMERCE BEGINS TO EMERGE It was apparent from the beginning that B2B online shopping would be commercially lucrative but B2C would not be successful until the later widespread use of PCs and the World Wide Web, also known as, the Internet. In 1982, France launched the precursor t o the Internet called, Minitel. The online service used a Videotex terminal machine that was accessed through telephone lines. The Minitel was free to telephone subscribers and connected millions of users to a computing network.
By 1999, over 9 million Minitel terminals had been distributed and were connecting approximately 25 million users in this interconnected network of machines. The Minitel system peaked in 1991 and slowly met its demise after the success of the Internet 3 years later. Eventually, in 2011, France Telecom announced its shutdown of the Minitel service system. Sadly, it had not become what it had hoped to be, the Internet. However, between 1998 and 2000, a substantial number of businesses in Western Europe and the United States built out their first rudimentary e-commerce websites. The definition of e-commerce began to change in 2000 though, the year of the dot-com collapse when thousands of internet businesses folded. Despite the epic collapse, many of the worlds most established traditional brick -and-mortar businesses were emboldened with the promise of e-commerce and the prospect of serving a global customer base electronically. The very next year, business to business transactions online became one of the largest forms of e-commerce with over $700 billion dollars in sales.
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Many of the dot-com collapses first-mover failures served their offline competitors very well, providing evidence of what not to do in building a viable online business. For example, Webvan, which was one of the more infamous dotcom failures, trail blazed the path for Albertsons and Safeway, two of the largest national supermarket chains, who each have developed their own successful online grocery delivery businesses.
As stated ealier, in 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, the "brick and mortar" retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to enable their customers to buy groceries online). By the end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.
According to all available data, ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales. Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order catalogs. Consumers can easily search through a large database of
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products and services. They can see actual prices, build an order over several days and email it as a "wish list" hoping that someone will pay for their selected goods. Customers can compare prices with a click of the mouse and buy the selected product at best prices. Online vendors, in their turn, also get distinct advantages. The web and its search engines provide a way to be found by customers without expensive advertising campaign. Even small online shops can reach global markets. Web technology also allows to track customer preferences and to deliver individuallytailored marketing.
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E-COMMERCE PIONEERS
History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most famous worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the most popular categories of products sold in the World Wide Web are music, books, computers, office supplies and other consumer electronics. Amazon.com, Inc., founded by Jeff Bezos, was the original e-commerce pioneer and certainly the most recognizable. In the beginning, Amazons business model required massive investment in warehousing, delivery and fulfilment capability and took years for Amazon to gain profitability. But finally in 2003, almost 10 years after launching the company, Amazon.com realized its first annual profit.
At the outset Amazon.com was considered as an online bookstore, but in time it extended a variety of goods by adding electronics, software, DVDs, video games, music CDs, MP3s, apparel, footwear, health products, etc. The original name of the company was Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename his business "Amazon" after the world's most voluminous river and it enjoys a truly global presence with standalone websites in six other countries, including the United Kingdom, Canada, France, Germany, Japan and China.
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Amazon.com was also the original pioneer in affiliate marketing, allowing other websites to earn sales commissions for referring Amazon products to their customers. Today, Amazon generates anywhere between 30 to 40% of its total sales revenue from affiliates or third party merchants who list and sell their products on Amazons web site. Today, the Amazon moniker certainly applies as it is one of the most recognized and most profitable e-commerce businesses on the planet. In 1999, Jeff Bezos was honoured with Time Magazines Person of the Year award, immortalizing him forever as probably the single most recognizable figure in the entire e-commerce community.. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year. The most popular feature of the web site is the review system, i.e. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars. Amazon.com is also wellknown for its clear and user-friendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database. One more company which has contributed much to the process of ecommerce development is Dell Inc., an American company located in Texas, which stands third in computer sales within the industry behind Hewlett-Packard and Acer. Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of 1997 was the first company to record a million dollars in online sales. The company's unique strategy of selling goods over the World Wide Web with no retail outlets and no middlemen has been admired by a lot of customers and imitated by a great number of ecommerce businesses. The key factor of Dell's success is that Dell.com enables customers to choose and to control, i.e. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. According to statistics, approximately half of the company's profit comes from the web site. In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500 list and 8th on its annual Top 20 list of the most successful and admired companies in the USA in recognition of the company's business model. Another major success story of the dot com bubble was EBay, an online auction site that debuted in 1995. Other retailers like Zappos and Victoria Secret followed suit with online shopping sites; Zappos being a web only operation. Also in 1995, was the inception of Yahoo followed by Google in 1998, two leading search engines in the US. These successful web directories began their own ecommerce subsidiaries with Google Shopping and Yahoo! Auction, in following years.
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Global ecommerce company, PayPal, began its services in 1998 and currently operates in 190 markets. The company is an acquired bank that performs payment processing for online vendors, auction sites, and other commercial users. They allow their customers to send, receive and hold funds in 24 currencies worldwide. Currently, PayPal manages more than 232 million accounts, more than 100 million of them active. As more and more people began doing business online, a need for secure communication and transactions became apparent. In 2004, the Payment Card Industry Security Standards Council (PCI) was formed to ensure businesses were meeting compliance with various security requirements. The organization was created for the development, enhancement, storage, dissemination and implementation of security standards for account data protection.
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The growing use of the Internet, tablet devices, and smart phones coupled with larger consumer confidence will see that ecommerce will continue to evolve and expand. With social media growing exponentially in recent years, the conversation between businesses and consumers has become more engaging, making it easier for transactional exchanges to happen online. Internet retailers continue to strive to create better content and a realistic shopping experience with technologies like augmented reality. With mobile commerce gaining speed, more users are purchasing from the palm of their hand. The market for mobile payments is expected to quadruple by 2014, reaching $630 billion in value. Total sales in ecommerce have grown from $27.6 billion in 2000 to $143.4 billion in 2009 and are expected to continue its growth for the foreseeable future.
The birth of companies such as Amazon and Dell really began to lead the way in e-commerce. Both Dell and Amazon were among the first to establish prominent
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e-commerce brands. The most prominent e-commerce categories today are computers, books, office supplies, music, and a variety of electronics. History of ecommerce is a history of a new, virtual world which is evolving according to the customer advantage. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations.
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ECOMMERCE TODAY
Ecommerce today is a remarkable experience. It has transformed traditional shopping beyond recognition. It is so much better than any other way of shopping that it has already attracted a great many of ecommerce-lovers. If some years ago ecommerce was a buzz word, now it has become the order of the day. People seem to shop literally everywhere at their workplaces during lunch times, in rush hour when there is nothing else to do but switch on their laptops and start surfing. Ecommerce today gained so much popularity because its underlying technologies are evolving at giant steps. We are even offered to feel the product with a 3D mouse to better understand its shape, size and texture. Why go somewhere out when all you have to do is make an order, choose the shipping method, put up your feet and wait till the order is delivered right to your door-step? Ecommerce today offers so much luxury that even conventional stores have already signalled the alarm. Although, everyone agrees that it is a long way for an ecommerce to replace brick-and-mortar stores, it has every chance to happen in the future. Ecommerce which we are witnessing today brings in so much adventure into our lives that it is enjoyed by the whole online community. Ecommerce today does have some drawbacks but they say he that fears every bush must never go a birding. A lot of consumers do put up with minuses since they trust the online world and want it to be a better place. Ecommerce today reflects what we created at the very dawn of online electronic commerce.
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FUTURE OF ECOMMERCE
Experts predict a promising and glorious future of ecommerce in the 21st century. In the foreseeable future ecommerce will further confirm itself a major tool of sale. Successful ecommerce will become a notion absolutely inseparable from the web, because e-shopping is becoming more and more popular and natural. At the same time severe rivalry in the sphere of ecommerce services will intensify their development. Thus prevailing future trends of ecommerce will be the growth of Internet sales and evolution.
Each year number of ecommerce deals grows enormously. Sales volumes of on-line stores are more than comparable with those of brick-and-mortar ones. And the tendency will continue, because a lot of people are imprisoned by work and household duties, while Internet saves a lot of time and gives opportunity to choose goods at the best prices. Present-day Internet sales boom is the foundation for magnificent ecommerce future. The quantity to quality tendency of ecommerce is also becoming more and more obvious, as the Internet has excluded geographical factor from the sale. So it doesnt matter anymore whether your store is situated in New York or London or in a small town. To survive, merchants will have to adapt rapidly to the new conditions. To attract more customers e-store-owners will have not only to increase the number of available services, but to pay more attention to such elements like attractive design, user-friendliness, appealing goods presentation, they will have to opportunely employ modern technologies for their businesses to become parts of ecommerce future.
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Of course, those, who acquire e-stores earlier, get better chance for future success and prosperity, though an ecommerce site itself doesnt guarantee you anything. Only an appropriate ecommerce solution in combination with thorough emarketing and advertising can buy your business insurance. In India to compare with the total population, around 2.5 crores are the internet users. The most of the study found that, most of the shoppers access the internet from office, followed by those who access it from home. Some also go to cyber cafes. The business module is cost effective, easily accessible and profitable in many functional areas. Consumers and retailers both desire a safe, simple and complete online shopping. From this we can find out what is the actual and real power of internet now a days. According to the Preeti Desai, President, Internet and Online Association of India "E-commerce is coming of age in India. Chaining lifestyles and shopping habits" Now a days most of the metro and non-metro corporation cities are basing completely on the media and internet and multiple internet access points. As per the survey reports, of Internet and online association of India, the total value of e-commerce activities within India crossed Rs.570 crore during 2004-05. On the basis of that, the present and the next couple of years it may be crossed to Rs.2,300 crore worth of e-business in India. In India most of internet users are purchasing their commodities and services through online shopping through internet and e-business. As per the reports, out of 3099 online shoppers, the average of 55% i.e., 1,716 shoppers are benefiting for online services, that are getting services through online and use of internet by way of e-commerce. The rapid development of E-commerce in India is forcing companies to adopt business strategies revolving around the internet. As per the Chairman of IOAL "The report reflects the changing face of business trends in India. Today, the internet population is 25+ million and is expected to grow at 100 million by end of 2008" So on the basis of reports, we can imagine how the India is growing with online shopping and e-commerce. India is the second most populous country and the largest democracy in the world. Now India has improved its position to the 43rd rank in the World of ECommerce activities. The rapid development of e-commerce is forcing companies today to adopt business strategies rotating around the internet. Finance Minister of India Mr.P.Chidambaram announced recently that expected growth rate of Indian economy is 9 % for the year 2008 and that is excellent by any means. Though impact of Indian economy growth may not be considerable on world scale but at least all Indians will be very happy.
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Online shopping is the buzz, the sensation in the current scenario. Getting anything by a click of the mouse right from fashion accessories to jewellery, apparel, electronic items, crockery, home appliances, personal care products, and more has led to the popularity of the 'online shopping mall' phenomenon. It is the easiest and fastest way of shopping. At an online shopping mall, you can catch a glimpse of new product releases, combo deals, packages, discount offers, seasonal products, etc. and accordingly grab the best deal. Time is not the constraint; you can shop anytime - the facility is available round the clock. Another plus point of online shopping is that you can compare products in terms of brands, specifications, features and prices and buy the right ones. It is discount shopping that attracts customers to shop online. There are a number of shopping platforms. Focus on one particular portal that provides complete products and offers the best deals. Get yourself registered to avail various benefits. For example, you can feed in your contact details so that you need not enter the same every time you shop. With every purchase, you earn redeem points. Many an online shopping mall offers special/combo deals and great discount offers. There are counted few platforms that facilitate group bargaining, helping buyers collectively avail maximum discounts in addition to enjoying voice video text chat, meeting new shoppers, earning redeem coins, winning prizes, and more. The scope of discount shopping is not only limited to one particular section. Many an Internet literate individual encompassing the young and the old alike of both the sexes prefer online shopping. For the same you need to have a bank account. You can use your credit card or debit card to buy the desired products. Most online platforms provide payment facilities in all available modes right from Internet banking, paying by cash, paying cash at the time of delivery, etc. At a shopping mall, you can explore similar products representing some of the biggest brands at the national and international level. If you are fortunate, you can avail discounts over more than fifty per cent. You can always find something new and interesting. So shop online and stay benefited! Online shopping developed with B2B as well as with B2C since everybody is on internet, and development is going on each and every second for grabbing a better share of the market. Even as we write this article on Ecommerce with our exhaustive research!!! May just be not enough.
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INDIAN SCENARIO
E-commerce is not possible without internet, and today India stands 11 th in average time spent by 1 user on internet every day. Thanks to one of the most prolific thing in todays world i.e. Facebook. We have some data related to internet consumption in India and we got this data from Huffington Post which is an American News Website reveals the data. Countries that spend maximum time Average time spent online 43.5 hours/month Canada 35.3 hours/month U.S 32.3 hours/month U.K 27.7 hours/month South Korea 26.6 hours/month France Brazil Germany Russia Japan China 11.9 hours/month India In the above table we can see that an average Indian user spends on an average 11.9 hours every month which is 11th ranked in the world which is very high as compared to many first world countries of the world. 18.4 hours/month 13.5 hours/month 25.8 hours/month 24.1 hours/month 21.8 hours/month
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INCREASE IN INTERNET CONSUMPTION IN INDIA

In the year 2000, there were approximately 50,00,000 users and now the latest data reveals that till June ,2012 the approximate online users were crossed 13,70,00,000 regular users. i.e 11% increase in 11 years. India consumes 5.7% of the whole worlds internet consumption. India is ranked 3rd worldwide for highest number of users with 137 million users.
ONLINE SHOPPING IN INDIA To quote TOI dated December 17,2012, Online shopping in India, which is at a nascent stage, is poised to witness significant growth in the next few years, with the industry likely to touch USD 34.2 billion by 2015. "It is estimated, that around 27 million (in India) are active mobile internet users. Currently 4 per cent are buying products through mobiles and in next four years time, it can go up to 20 per cent," Homeshop18.com CEO Sundeep Malhotra told PTI. For developing countries like India, e-commerce offers considerable opportunity. Ecommerce in India is still in nascent stage, but even the mostpessimistic projections indicate a boom. It is believed that low cost of personal computers, a growing installed base for Internet use, and an increasingly competitive Internet Service Provider (ISP) market will help fuel e-commerce growth in Asias second most populous nation.
Indian middle class of 288 million people is equal to the entire U.S. consumer base. This makes India a real attractive market for e-commerce. To make a successful
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e-commerce transaction both the payment and delivery services must be made efficient. There has been a rise in the number of companies' taking up e-commerce in the recent past. Major Indian portal sites have also shifted towards e-commerce instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers. With stock exchanges coming online the time for true e-commerce in India has finally arrived. On the negative side there are many challenges faced by e-commerce sites in India. The relatively small credit card population and lack of uniform credit agencies create a variety of payment challenges unknown in India. Delivery of goods to consumer by couriers and postal services is not very reliable in smaller cities, towns and rural areas.
However, many Indian Banks have put the Internet banking facilities. The speed post and courier system has also improved tremendously in recent years. Modern computer technology like secured socket layer (SSL) helps to protect against payment fraud, and to share information with suppliers and business partners. With further improvement in payment and delivery system it is expected that India will soon become a major player in the e-commerce market. While many companies, organizations, and communities in India are beginning to take advantage of the potential of e-commerce, critical challenges remain to be overcome before e-commerce would become an asset for common people. Indias ecommerce industry is on the growth curve and experiencing a spurt in growth. The Online Travel Industry is the biggest segment in ecommerce and is booming due largely to the Internet-savvy urban population. The other segments, categorized under online nontravel industry, include e-Tailing (online retail), online classifieds and Digital Downloads (still in a nascent stage). The online travel industry has some private players such as Makemytrip, Clear trip and Yatra as well as a strong government presence in terms of IRCTC, which is a successful Indian Railways initiative. The online classifieds segment is broadly divided into three sectors; Jobs, Matrimonial and Real Estate. Mobile Commerce is also growing rapidly and proving
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to be a stable and secure supplement to ecommerce due to the record growth in mobile user base in India, in recent years. Growth drivers and barriers are present in equal measures for new ecommerce ventures. A report by the Internet and Mobile Association of India has revealed that Indias Ecommerce market is growing at an average rate of 70 percent annually and has grown over 500 % since 2007. The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the year 2007 at $1.75 billion. Apparently, more online users in India are willing to make purchases through the Internet. Overall e-commerce industry is poised to experience a high growth in the next couple of years. The 70 percent year on year growth is expected to continue and Indias e-commerce market is forecast to reach a whopping $US 10 billion by the end of 2011.The e-commerce market in India was largely dominated by the online travel industry with 80% market share while electronic retail (E-Tailing) held second spot with 6.48% market share. E-Tailing and digital downloads are expected to grow at a faster rate, while online travel will continue to rule the major proportion of market share. Due to increased e-commerce initiatives and awareness by brands, e-Tailing has experienced decent growth. According to the third edition of eBay India census 2010 conducted across 28 states and seven union territories, Indias top five rural e-commerce hubs are Ambalapuzha (Kerala), Sajiyavadar (Gujarat), Adala (Gujarat), Abdalipur (West Bengal) and Kangayampalayam (Tamil Nadu). This means there are two rural ecommerce hubs of Gujarat in top five across India. The survey reveals that Gujarat has emerged as one of the top five online shopping markets in the country. Gujarat is ranked 4th after Maharashtra, Delhi and Tamil Nadu. During the census in 2009, Gujarat was ranked at seventh, from which it has jumped to fourth position. The city of Ahmedabad ranks 7th among top 10 ecommerce hub in the country. eBay India, a 100 per cent subsidiary of eBay Inc. one of the leading ecommerce hub in India , has observed a surge in the number of e-commerce hubs in India from 2,500 last year to 3,300 this year. According to the eBay Census Guide 2009 for Indian ecommerce scenario, it has been found that India has over 2,471 ecommerce Hubs. These hubs are the cities, towns, villages and smaller towns covering the entire length and breadth of the country. Technology or technology related products dominate Indias domestic ecommerce. Whereas, lifestyle product category dominates in the global trade. Technology, being Indias favourite traded vertical category contributes 44% of totals ecommerce transactions according to the latest eBay Census. Lifestyle category at 35% comes second in popularity for online Indians. For Global Trade,
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lifestyle is the clear winner at 64% of all transactions followed by Media & Collectibles at 15% each. Elaborating Indias domestic online shopping scenario, South India has the most active buyers at 41% of all transactions, followed by West India at 27%. However, West India has the most active sellers at 46%, followed by North India at 28%. Delhi entrepreneurs sold the most technology gadgets at 46% of all transactions to buyers in India. Lifestyle scored on the Exports front at 67% of all transactions Delhi sells the most musical instruments percussion, brass, synthesizers, and guitars - in the country. In addition to this, Delhi buyers bought the most sunglasses in the country according to the eBay census. Delhi buyers have also bought the most number of high end digital cameras in the country. India is showing tremendous growth in the Ecommerce. Rival tradeindia.com has 700,000 registered buyers and it has the growth rate of 35% every year which is likely to double in the year 2010. Indiamart.com claims revenues of Rs. 38 crores and has a growing rate of 50 every year. It receives around 500,000 enquiries per month. Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited potential in India. The real estate costs are touching the sky. The travel portals' share in the online business contributed to 50% of Rs4800 crores online market in 2007-08. The travel portal MakeMyTrip.com has attained Rs. 1000 crores of turnovers which are around 20% of total e-commerce market in India. Further an annual growth of 65% has been anticipated annually in the travel portals alone.
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FACILITATORS OF E-COMMERCE IN INDIA

A. INFORMATION DIRECTORIES: The products and services a relisted with appropriate subheadings to make it easy for a serious information-seeker to find what he wants. Allied services provided by them: Message boards, chat rooms, forums, etc. B. BANKS: 1) NET BANKING/PHONE BANKING: This is an online banking facility available for savings account holders as well as current account holders. Some of the special Net banking services are: Demat accounts for sale/purchase of stocks and shares, Foreign Exchange services, Direct/Instant payment of bills on the account-holders behalf, Financial Planning.
2) CREDIT/DEBIT CARDS: Banks facilitate E-commerce by providing the most vital trade instrument, namely the Credit or Debit Card, without which E-commerce would be impossible.
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E-COMMERCE AND COMPETITION

The changes brought about by E-commerce have the potential to significantly increase competition by increasing consumers choice of products and traders. They also enable business to achieve significant efficiencies in their commercial operations as they move from high cost paper-based transactions to faster, lower cost electronic transactions.
At the same time, care must be taken to ensure that the opportunities for competition in the dynamic new area of economic activity are not stifled by anticompetitive issues. While it is true that in rapidly changing high technology markets competition may be fierce but in some instance businesses may achieve significant market power, and use their position to stifle further competition. From a consumer protection prospective, there have also been a no. of international cases where unscrupulous traders have taken advantage of the internet as a medium to propagate old-fashioned scams.
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POTENTIAL COMPETITION ISSUES

Generally, e-commerce has the potential to increase competition by enabling the development of new services, new distribution channels, and greater efficiency in business activities. Competition policy issues may arise in relation to joint ventures to develop B2B electronic marketplaces (e hubs), particularly when they are developed by existing market participants with a significant combined market share (as buyers and sellers) in underlying wholesale markets. Competition policy issues may arise in relation to hubs on an on-going basis if they appear to have developed sustainable market power resulting from network effects and other factors, and/or engage in strategic acts to preserve or maintain their market power.
Potential issues would include evidence of price fixing or tacit collusion, or anti-competitive discrimination against, or refusal of access to third parties. Issues will not arise in all cases, and this will depend on the details in each case. In many situations there will be pro-competitive and other public benefit issues that should be taken into account. A recent Federal Trade Commission report identified a range of potential efficiency gains that may accrue from the use of eHubs. They include reductions in administrative costs, reductions in search costs when accessing appropriate trading partners, creating new markets (e.g. markets for surplus stock), economies of scale in joint purchasing, and more effective supply chain management.
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POINTS TO BE KEPT IN MIND

EHubs may be pro-competitive and enable the achievement of efficiencies. They may also provide wider gains to society by encouraging innovation. Competitive concerns are more likely to arise when a B2B exchange allows a number of firms on one side of a wholesale market to coordinate transactions and those firms jointly represent a significant part of the market. The key question is whether the B2B E-commerce and competition issues under the Trade Practices Act exchange enables an exercise of market power not previously available to participants.
Main issues include the potential for participants to engage in tacit collusion, exercise of monopsony power or exclusion of third parties. This may affect competition in the relevant wholesale markets, and in some cases associated retail markets. In considering whether issues of tacit collusion are likely to arise it is important to assess if the eHub in question really changes the underlying nature of transactions occurring. In some instances it may not, and each case should be considered individually eHubs may exhibit network effects, a factor which suggests that a market will favour one eHub being used. This is a fact of life in such industries. What is relevant is to assess whether certain firms can prevent serial competition over time between new entrant eHubs. This behaviour is more likely from firms which have significant market presence in underlying wholesale markets.
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The question is what to do about it. There may be value in allowing an incumbent to invest in an eHub, as this may assist in developing such proposals. However, they should not be allowed to use market power to affect the competitive process.
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FOUNDATIONS OF CONSUMER BEHAVIOUR
WHO IS A CONSUMER? Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market. Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above examples, both Tom and Mike are consumers.
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WHAT IS CONSUMER INTEREST?

Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket. LET US GO THROUGH THE FOLLOWING EXAMPLE: Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. The store manager showed them the best dresses available with him. Maria immediately purchased two dresses but Sandra returned home empty handed. The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store. In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste, mind set and ability to spend. Thus, we can say that a typical study of consumer behaviour comprises the following questions:
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STAGES IN CONSUMER DECISION MAKING PROCESS

An individual who purchases products and services from the market for his/her own personal consumption is called as consumer. To understand the complete process of consumer decision making, let us first go through the following example: Tim went to a nearby retail store to buy a laptop for himself. The store manager showed him all the latest models and after few rounds of negotiations, Tim immediately selected one for himself. In the above example Tim is the consumer and the laptop is the product which Tim wanted to purchase for his end-use. Why do you think Tim went to the nearby store to purchase a new laptop ? The answer is very simple. Tim needed a laptop. In other words it was actually Tims need to buy a laptop which took him to the store. The Need to buy a laptop can be due to any of the following reasons: His old laptop was giving him problems. He wanted a new laptop to check his personal mails at home. He wanted to gift a new laptop to his wife. He needed a new laptop to start his own business. The store manager showed Tim all the samples available with him and explained him the features and specifications of each model. This is called information. Tim before buying the laptop checked few other options as well. The information can come from various other sources such as newspaper, websites, magazines, advertisements, billboards etc.
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THIS EXPLAINS THE CONSUMER BUYING DECISION PROCESS
A consumer goes through several stages before purchasing a product or service.
Step 1 - Need is the most important factor which leads to buying of products and services. Need infact is the catalyst which triggers the buying decision of individuals. An individual who buys cold drink or a bottle of mineral water identifies his/her need as thirst. However in such cases steps such as information search and evaluation of alternatives are generally missing. These two steps are important when an individual purchases expensive products/services such as laptop, cars, mobile phones and so on.
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Step 2 - When an individual recognizes his need for a particular product/service he tries to gather as much information as he can. An individual can acquire information through any of the following sources: Personal Sources - He might discuss his need with his friends, family members, coworkers and other acquaintances. Commercial sources - Advertisements, sales people (in Tims case it was the store manager), Packaging of a particular product in many cases prompt individuals to buy the same, Displays (Props, Mannequins etc.) Public sources - Newspaper, Radio, Magazine Experiential sources - Individuals own experience, prior handling of a particular product (Tim would definitely purchase a Dell laptop again if he had already used one) Step 3 - The next step is to evaluate the various alternatives available in the market. An individual after gathering relevant information tries to choose the best option available as per his need, taste and pocket. Step 4 - After going through all the above stages, customer finally purchases the product. Step 5 - The purchase of the product is followed by post purchase evaluation. Post purchase evaluation refers to a customers analysis whether the product was useful to him or not, whether the product fulfilled his need or not?
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FACTORS INFLUENCING BUYING DECISIONS OF A CONSUMER

There are several factors which influence the buying decision of consumers, cultural factors being one of the most important factors. 1. What are Cultural Factors ? Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture. Example - In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to foreign countries where children are more independent and leave their parents once they start earning a living for themselves. Cultural factors have a significant effect on an individuals buying decision. Every individual has different sets of habits, beliefs and principles which he/she develops from his family status and background. What they see from their childhood becomes their culture. Let us understand the influence of cultural factors on buying decision of individuals with the help of various examples. Females staying in West Bengal or Assam would prefer buying sarees as compared to Westerns. Similarly a male consumer would prefer a Dhoti Kurta during auspicious ceremonies in Eastern India as this is what their culture is. Girls in South India wear skirts and blouses as compared to girls in north India who are more into Salwar Kameez. Our culture says that we need to wear traditional attire on marriages and this is what we have been following since years. People in North India prefer breads over rice which is a favourite with people in South India and East India.
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2. SUBCULTURES Each culture further comprises of various subcultures such as religion, age, geographical location, gender (male/female), status etc. a. RELIGION (CHRISTIANITY, HINDU, MUSLIM, SIKHISM, JAINISM ETC.) A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian bride wears a white gown on her wedding day. It is against Hindu culture to wear white on auspicious occasions. Muslims on the other hand prefer to wear green on important occasions.
For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely relish the same. Eating pork is against Muslim religion while Hindus do not mind eating it. A sixty year old individual would not like something which is too bright and colourful. He would prefer something which is more sophisticated and simple. On the other hand a teenager would prefer funky dresses and loud colours. In India widows are expected to wear whites. Widows wearing bright colours are treated with suspicion. b. STATUS (UPPER CLASS, MIDDLE CLASS AND LOWER CLASS) People from upper class generally have a tendency to spend on luxurious items such as expensive gadgets, cars, dresses etc. You would hardly find an individual from a lower class spending money on high-end products. A person who finds it difficult to make ends meet would rather prefer spending on items necessary for survival. Individuals from middle class segment generally are more interested in buying products which would make their future secure.
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c. GENDER (MALE/FEMALE) People generally make fun of males buying fairness creams as in our culture only females are expected to buy and use beauty products. Males are perceived to be strong and tough who look good just the way they are.
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3. SOCIAL FACTORS Since Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Social factors play an essential role in influencing the buying decisions of consumers. Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of society. Social Factors influencing consumer buying decision can be classified as under: Reference Groups Immediate Family Members Relatives Role in the Society Status in the society a. REFERENCE GROUPS Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time. Co-workers, family members, relatives, neighbours, friends, seniors at workplace often form reference groups. Reference groups are generally of two types: a. PRIMARY GROUP:- consists of individuals one interacts with on a regular basis. Primary groups include: Friends Family Members Relatives Co Workers All the above influence the buying decisions of consumers due to following reasons:
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They have used the product or brand earlier.They know what the product is all about. They have complete knowledge about the features and specifications of the product. Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product. We tend to pick up products our friends recommend. A married individual would show strong inclination towards buying products which would benefit not only him but also his family members as compared to a bachelor. Family plays an important role in influencing the buying decisions of individuals. A consumer who has a wife and child at home would buy for them rather than spending on himself. An individual entering into marriage would be more interested in buying a house, car, household items, furniture and so on. When an individual gets married and starts a family, most of his buying decisions are taken by the entire family. Every individual goes through the following stages and shows a different buying need in each stage: Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends Lavishly) Newly Married: Tend to purchase a new house, car, household furnishings. (Spends sensibly) Family with Children: Purchases products to secure his as well as his familys future. Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health Products, and Necessary Items. A Ford Car in the neighbourhood would prompt three more families to buy the same model. b. SECONDARY GROUPS:- Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc.
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1. ROLE IN THE SOCIETY Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm is also someones husband and father at home. The buying tendency of individuals depends on the role he plays in the society. 2. SOCIAL STATUS An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items required for his/her survival. a. PERSONAL FACTORS Consumer Behaviour helps us understand the buying tendencies and spending patterns of consumers. Not all individuals would prefer to buy similar products. Consumer behaviour deals with as to why and why not an individual purchases particular products and services. Personal Factors play an important role in affecting consumer buying behaviour. b. OCCUPATION The occupation of an individual plays a significant role in influencing his/her buying decision. An individuals nature of job has a direct influence on the products and brands he picks for himself/herself. Tim was working with an organization as Chief Executive Officer while Jack, Tims friend now a retired professor went to a nearby school as a part time faculty. Tim always looked for premium brands which would go with his designation whereas Jack preferred brands which were not very expensive. Tim was really conscious about the clothes he wore, the perfume he used, the watch he wore whereas Jack never really bothered about all this. That is the importance of ones designation. As a CEO of an organization, it was really essential for Tim to wear something really elegant and unique for others to look up to him. A CEO or for that matter a senior professional can never afford to wear cheap labels and local brands to work.
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An individuals designation and his nature of work influence his buying decisions. You would never find a low level worker purchasing business suits, ties for himself. An individual working on the shop floor cant afford to wear premium brands every day to work. College goers and students would prefer casuals as compared to professionals who would be more interested in buying formal shirts and trousers. 3. AGE Age and human lifecycle also influence the buying behaviour of consumers. Teenagers would be more interested in buying bright and loud colours as compared to a middle aged or elderly individual who would prefer decent and subtle designs. A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties, clubs and so on. A young single would hardly be interested in buying a house, property, insurance policies, gold etc. An individual who has a family, on the other hand would be more interested in buying something which would benefit his family and make their future secure. 4. ECONOMIC CONDITION The buying tendency of an individual is directly proportional to his income/earnings per month. How much an individual brings home decides how much he spends and on which products? Individuals with high income would buy expensive and premium products as compared to individuals from middle and lower income group who would spend mostly on necessary items. You would hardly find an individual from a low income group spending money on designer clothes and watches. He would be more interested in buying grocery items or products necessary for his survival. 5. LIFESTYLE Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the way an individual stays in the society. It is really important for some people to wear branded clothes whereas some individuals are really not brand conscious. An individual staying in a posh locality needs to maintain his status and image. An individuals lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings. 6. PERSONALITY An individuals personality also affects his buying behaviour. Every individual has his/her own characteristic personality traits which reflect in his/her buying behaviour. A fitness freak would always look for fitness equipments whereas a music lover would happily spend on musical instruments, CDs, concerts, musical shows etc.
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4. PSYCHOLOGICAL FACTORS Let us understand the effect of psychological factors on consumer behaviour: EXAMPLE: Nancy went to a nearby restaurant and ordered pizza for herself. Why did Nancy buy pizza? Answer - She was feeling hungry and wanted to eat something. In the above example, Hunger was the motivating factor for Nancy to purchase pizza. There are several other factors which motivate individuals to purchase products and services. An individual who is thirsty would definitely not mind spending on soft drinks, packaged water, juice and so on. Recognition and selfesteem also influence the buying decision of individuals. Why do people wear branded clothes? Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive. An individual who wears a Tag Heuer watch would never purchase a local watch as this would be against his image.
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PERCEPTION
What is Perception? What an individual thinks about a particular product or service is his/her perception towards the same. For someone a Dell Laptop might be the best laptop while for others it could be just one of the best brands available. Individuals with the same needs might not purchase similar products due to difference in perception. Catherine and Roselyn had a hectic day at work and thus wanted to have something while returning from work. Catherine ordered a large chicken pizza with French fries and coke while Roselyn preferred a baked vegetable sandwich. Though both Catherine and Roselyn had the same motivation (hunger), but the products they purchased were entirely different as Roselyn perceived pizza to be a calorie laden food. Individuals think differently and their perceptions do not match.
Individuals perceive similar situation differently due to difference in the way they interpret information.
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There are three different processes which lead to difference in perception: 1. SELECTIVE ATTENTION - Selective attention refers to the process where individuals pay attention to information that is of use to them or their immediate family members. An individual in a single day is exposed to numerous advertisements, billboards, hoardings etc. but he is interested in only those which would benefit him in any way. He would not be interested in information which is not relevant at the moment. 2. SELECTIVE DISTORTION - Consumers tend to perceive information in a way which would be in line to their existing thoughts and beliefs. 3. SELECTIVE RETENTION - Consumers remember information which would be useful to them, rest all they forget in due course of time. Michael wanted to purchase a watch for his wife and thus he remembered the RADO advertisement which he had seen several days ago.
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LEARNING
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Learning comes only through experience. An individual comes to know about a product and service only after he/she uses the same. An individual who is satisfied with a particular product/service will show a strong inclination towards buying the same product again. BELIEFS AND ATTITUDE Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image. Consumers purchase products/services based on their opinions which they form towards a particular product or service. A product might be really good but if the consumer feels it is useless, he would never buy it. ROLE OF FAMILY IN CONSUMER BEHAVIOUR No two individuals have same buying preferences. The buying tendencies of individuals vary as per their age, need, income, lifestyle, geographical location, willingness to spend, family status and so on. An individuals immediate family members play an essential role in influencing his/her buying behaviour. An individual tends to discuss with his immediate family members before purchasing a particular product or service. Family members might support an individuals decision to buy a particular product, stop him for purchasing it or suggest few other options.
FAMILY COMPRISES OF: Parents Siblings S0pouse Grandparents Relatives (Cousins/Aunts, Uncles etc.)
What an individual imbibes from his parents becomes his/her culture. In countries like India, where children are supposed to stay with their parents till the time they get married, the influence of parents on an individuals buying decisions cannot be ignored. What he sees from his childhood becomes his habit or in other
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words lifestyle. A female from an orthodox background would prefer salwar suits, saris instead of westerns or short outfits. In India, parents expect their children to dress up in nice, colourful outfits during marriages, festivals or other auspicious occasions. Even if children want to buy something else, their parents would always prompt them to buy traditional attire, thus influencing their buying decision.
The moment an individual enters into wedlock, his/her partner influences his buying decisions to a great extent. In most families, wife accompanies her husband for shopping be it grocery, home appliances, furnishings, car etc. An individual would always discuss with his/her partner before any major purchase. After marriage, individuals generally do not like spending on himself/herself; rather they do it for their partner or family. A young bachelor would not mind spending on alcohol, attending night parties, casinos but the moment he has a wife at home, he would instead spend on household and necessary items. No bachelor likes to invest money on mutual funds, insurance policies, med claims etc. but for someone who is married buying an investment plan becomes his first priority. Women generally are inclined towards buying toiletries, perfumes, dresses, household items, furnishings, food products while men would rather love to spend on gadgets, cars, bikes, alcohol etc. Both have different tastes but when they come together, they mutually decide on what to buy and what not to buy.
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A Bachelor would never purchase Womens Horlicks or Kelloggs K special or a female perfume but when he has a wife at home; he would love to purchase them for his wife. A young girl who has never purchased shaving creams or mens perfume all through her life for herself would not mind purchasing for her husband, father or father in law. A working woman would have different needs as compared to a housewife. A woman who goes to office would prompt her husband to buy formal trouser and shirt, office bag, make up products etc. for her while a house wife would not like spending on all these as she does not require an office bag and so on.
Children also influence the buying decisions of individuals. An individual spends happily on toys, candies, ice creams, chocolates. sweets when he has children at home. Children in the family prompt their parents to subscribe to Disney Channel, Cartoon network and so on. Individuals do not mind spending on medicines, health supplements, vitamin tablets, protein drinks if they have ailing parents at home.
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DIFFERENT TYPES OF CONSUMERS In business terms there are different types of consumers of goods and services that are offered for sale by companies and manufacturers. A product manufacturing company has to determine, know or understand the type of consumers its targeting with its goods to make sure that there exists a market for the products they intend to introduce into the market. Knowing the types of consumers for goods is also important in that it enables the company to avail the right and desired product to the consumer hence increasing sales and profitability. There are different types, classes or categories of consumers of goods and services and in this article each of them will be discussed in detail. 1. SEASONAL CONSUMERS These are types of consumers who purchase and consume products on seasonal basis. You would most of the times not find these types of consumers buying the goods or service in question but rather at certain times when the need for them arises. They buy products that are season based or demanded at certain times and not all the times.
Examples Purchasing umbrellas during the rainy season Purchasing cold drinks during the hot seasons Going out for holyday during the Christmas season
2. PERSONAL CONSUMERS These types of consumers are individual consumers who purchase goods for the sole purpose of personal, family or household use. Examples
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Going to the supermarket and shopping for goods which are to be used in the house Purchasing a car that you intend to use personally Purchasing clothes for personal use from a clothing mall Purchasing a mobile phone to communicate with people 3. ORGANIZATIONAL CONSUMER Organizational consumers are consumers of goods and services whose main intention is not for immediate use but rather to use it for things like production, using them to carry out the organizations activities or for resale purposes aimed at getting profits as a result. E.g. an organization may buy raw materials that are aimed at producing other goods that will later be offered for sale to other consumers.
4. IMPULSE CONSUMERS Impulse consumers or buyers are those who make unplanned buying decisions. Impulse buyers make swift buying decisions in that they encounter products which they immediately purchase after they fall in love with the product and its features. The products they purchase were not initially in their plans but as a sort of something that comes up all over sudden from somewhere and that calls for the consumer to make an unplanned purchase. 5. NEED BASED CONSUMERS Need based consumers are those types of consumers who buy goods and services when they need them and not any other time. A need for a certain product will necessitate buying it, as the consumer would find it tempting to buy the product because it is needed immediately for a certain purpose. 6. DISCOUNT DRIVEN CONSUMERS Discount driven consumers are types of consumers who are purchase goods and services primarily for the discounts on offer. They may not engage in any buying activity for most of the times only to act when they hear or see large discounts being offered on products they like. They are price sensitive and they would rather wait and purchase products when they come with discounts as opposed to when they have no discount. 7. HABITUAL CONSUMER Habitual consumers are those who find it a must or compelling to use certain type of goods whenever they are presented with the opportunity. It is just like a habit that they cant do without engaging in it. E.g. the cigarette smoker falls under this category of consumers. The person would smoke at any given time when he/she has a cigarette. He may also not be able to do without smoking because it is a habit that he has become addicted to.
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Thus, in nutshell, it can be said that the marketers need to study consumer behavior for the following reasons:
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CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING IN INDIA
Malls springing up everywhere and yet people are e-shopping! And not in small numbers either. E-commerce figures are going through the roof, according to Assocham (Associated Chambers of Commerce & Industry of India). Today (2007-08) the figures are touching Rs. 2200 crore, but are expected to increase by 150 percent by 2008-09 - to Rs. 5,500 crores! And two metros - Delhi and Mumbai are driving the growth:
CITY
Mumbai Delhi Chennai Kolkata Bangalore
SHARE IN 07-08
24% 20% 7% 7% 6%
PROJECTION FOR 08-09

30% 30% 11-12% 10-11% 9%
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It was never thought that Indians would go in for e-shopping in such a big way. Ticketing, travel bookings and even books and movies seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that there are people buying these items online? Well, Assocham says that books are the hottest selling item on the internet. In fact most products bought and sold off online are: books, electronic gadgets and railway tickets. However, people are also buying clothes, gifts, computer and peripherals, and a few are buying home tools and products, home appliances, toys, jewellery, beauty products and health and fitness products Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai. Here are few reasons for this : 1. CONVENIENCE It is the major reason. Both the cities are spread out over a large area and the best stores in both these cities are often concentrated in certain posh areas. In Mumbai for example there are certain items you get only in Crawford market which is at the other end of town in South Mumbai. And demographics show that the population of Mumbai is now concentrated in the suburbs. Of course, huge malls have come up in the suburbs as well, and Indias biggest mall Nirmal Lifestyle is in far-flung Mulund but often you find a better choice of sizes and styles choice in other malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have transport system, few people like to travel for two hours just to get to a shop at the other end of town. Clearly the transport systems leave much to be desired. In Delhi, safety is also an issue for women traveling alone in the evenings. 2. LITERACY RATE AND THE CITIES INTERNET SAVVY POPULATION Most cities in India have a higher literacy rate as compared to the national average of 64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86 per cent). Delhi too has a high literate population (81.2 per cent). Oddly, although Bangalore has a higher literacy rate than Delhi, at 83 per cent, the citys share of e-commerce is not very high. Kolkata too has a literacy rate (80.8 per cent) and so does Chennai (80.1 percent.) If one compares these rates to literacy rates of cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73 percent) its clear why its the metros which are going to continue to lead eshopping.
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3. HOME DELIVERY CONCEPT In any case, home delivery is a concept that Indians are familiar with and love. The mall craze has started only now.
Earlier it was a choice between sweating it out in small crowded markets, or asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this system is still thriving. 4. INCREASE IN THE INTERNET USERS Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet users across India. The demographic segments that have witnessed maximum growth comprise college going students and young persons. These segments are the users of advanced applications and technologies online and are most likely to be heavy E-Commerce users. 5. INCREASE IN THE NUMBER OF BUYERS AND SELLERS The success of a marketplace depends on the presence of a large number of buyers and a large number of sellers. In addition to online buyers, many offline stores have begun to sell their products in the online marketplace. The greater the number of sellers and buyers, the faster the market grows.
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PRODUCT PREFERENCES CITY WISE Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies, bookings, actually just about everything. Kolkata prefers to buy music and movies online Mumbai leads in all categories, except jewellery. Delhites seem to prefer buying jewellery online as compared to any other city
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DEMOGRAPHIC TRENDS
ACROSS VERTICALS 1. 15-24 age group gets 40% traffic. Early adoption amongst this Age group which will lead consumption in the coming decade is a good sign. 2. Low Middle Income earners dominate 3. City wise traffic is Maximum from Mumbai, Delhi, and Bangalore. About 40% traffic is outside metro and tier 1 cites. 4. Primary customers are Young Graduate Adults.
VERTICAL
UNIQUE USERS/ DAY
AANUAL GROW TH 100%
TRAVEL
150,000
ALL INDIA REA CH 4%
TIME SPENT/VISIT(MIN UTES)
SITES CONSIDERED
8%
BOOKS ELECTRONICS/ DVDS APPAREL
40,000
80%
1.5%
30,000
220%
1.25 %
9.2
Makemytrip.com, cleartrip.com, yatra.com, tripadvisor.in Flipkart.com, infibeam.com, naaptol.com, letsbuy.com FashionAndYou.com,Ye bhi.com, Myntra.com, 99labels.com
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Through an average of Top Down, Bottom Up and Comparable Geography Market Size, I expect Indian E-Commerce to grow at 30-40% Annually and be a Rs. 260,000 Crores(GMV) market by 2016. CUSTOMER FACING Web Product Design. User friendly interface is crucial to converting Visitors into Buyers. Typical Ecommerce conversions are 4-6%. China/US Ecommerce sites convert at > 10% levels. Customer Acquisition. Digital Marketing channels including SEO, SEM, Social Media, SMS, Emails, Mobile Ads; Offline channels include Print, Radio and TV. Typical Cost per Acquisition range from Rs. 400 to Rs. 2000. Marketing through Digital Channels is clearly not cheap. (See Appendix 7: Google Ad Words CPC by Segment) (http://www.alootechie.com/news/google-targetstriple-digit-revenue-growth-through-local-ads-indian-smbs) . Customer Support (Social Media and Inbound Call Centres) Payment Processing. E.g. Avenues.com, ItzCash. Costs can vary from 2-5% depending on volumes and form of payment. Failure rates and Fraud have considerably reduced to an acceptable level
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SUPPLY NETWORKS Supply networks have evolved differently for each vertical. MerchandiserVendor negotiations greatly determine Payment terms and Supply Time/reliability.
In general the more consolidated an industry the more organized the network (E.g. Flight Ticketing). 1. BOOKS, ELECTRONICS & APPAREL Most brands/publishers work with national level distributors, who then distribute to regional dealers. Ecommerce players can work with either Regional Dealers or National Distributors. With volume these can be removed and direct brand relationships need to be built. 2. TRAVEL TICKETING Ticket Aggregators such as GDS provide fairly straightforward integration into flight availability and booking. 3. HOTEL BOOKING A challenge exists in streamlining the various layers of intermediaries /aggregators which exist without adding any real value between the Customer and Hotel. Myriad layers of intermediaries with vested interests are not allowing this category to take off in spite of huge margins and high volumes. However as OTAs gain volumes they are replacing some of these aggregators and there is an opportunity to consolidate the value chain. 4. DEALS There are no existing networks for aggregating deals. Thus it is a challenge to build a Business Development team to collect deals. At the same time it is an opportunity given that margins do not need to be shared with intermediaries.
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DELIVERY CHANNELS
Needed only for product delivery, deals/ticketing can forgo this expense 1. INVENTORY MANAGEMENT, WAREHOUSING, PACKAGING AND SHIPPING: Technology enabled CRM systems and demand forecasting are vital to optimize delivery time & cost. 2. COURIERS AND LAST MILE DELIVERY CHANNELS: (E.g. Aramaex and AFL Couriers) Negotiations determine freight costs, time to deliver, attempts at delivery, etc.. COD greatly boosts market size; however it comes with its own challenges around Returns, Incorrect Address, etc. Hence this is more expensive (even excluding freight) than traditional Payment processors.
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MARKET SHARE & COMPETITIONS
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Non travel Retail related sites reach about 54% (up 14% YoY) of the Online Audience in India. With the bulk of the reach coming from Computer Software downloads, Consumer Electronics, Hardware, Comparison shopping and Books Travel related sites reach 40% (up 13% YoY) of Indian Online users, dominated by Railways booking sites, followed by OTAs
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KEY GROWTH DRIVERS Scale through a superior service quality and high repeat business and referrals. Horizontal play, Number of categories served Reduce operational expenses by investing in warehouses / Logistics.
Supplier relationships over other brands and potential new entrants Variety of products available under each category. Conversion rates for major players are still in the middle single digits, contrast with US/China where they are above 10%. COD consists of 80% of Ecommerce transactions in China, India has much lesser. South East Asia represents a huge opportunity for Indian Ecommerce companies to expand into. Snapdeal is one of the Companies considering going global.
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KEY CHALLENGES / BARRIERS Accounting practices at most ecommerce sites still report revenues as Gross Merchandise Value. Further deep discounts are treated as long-term amortisable marketing expenses 20 % of the Users account for 64% of the total time spent on the Internet. In order to scale it is important to increase internet consumption across existing Internet users
Core network infrastructure in India is not capable of handling a huge surge in Internet traffic. Only 20% of the Intra Telco network is over robust fiber networks, While Telcos concentrate on individual networks, there arent sufficient peering points for traffic crossover. Payment system infrastructure continues to be woefully inadequate. It is rumored that SEBI is considering imposing Capital gains tax on Venture capital investments. Global players such as Amazon looking to enter India Local Language Content Local Search Engines Like Baidu
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TO SUM UP:Consumers attitude towards online shopping refers to their psychological state in terms of making purchases over the Internet. Online buying behaviour process refers to the products purchased online. The process of online buying behaviour consists of five steps and it is similar to traditional shopping behaviour. For instance, consumer recognize the need for buying some product (book), they refers to the internet to buy online and start to search for the information and look for all the alternatives and finally make a purchase which best fits to their needs. Before making final purchase consumers are bombarded by several factors which limits or influence consumers for the final decision.
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The main theme of the study is to know the factors that influence the consumers attitudes and behaviours towards online shopping. Researchers will also focus on how consumers form such attitudes with the help of models and who are truly the online shoppers. Generally speaking the trend of e-commerce has been increased rapidly in the recent years with the development of internet and due to the easy accessibility of internet usage. Easy access to internet has driven consumers to shop online. Online shopping is third most popular activity on the internet after email using and web browsing. Globally more than 627 million people have done online shopping so far, Worlds biggest online shoppers include Germans and British. Books, airline tickets/reservations, clothing/shoes videos/games and other electronic products are the most popular items purchased on the internet. On the other hand E- commerce has been grown very fast because of many advantages associated with buying on internet because of lower transaction and search cost as compared to other types of shopping. Through online shopping consumers can buy faster, more alternatives and can order product and services with comparative lowest price.
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The above model shows a relationship between dependent variable (DV) and independent variables (IDV). Consumer attitudes towards online shopping are perceived as dependent variable whereas convenience, time saving, website design/features and security are the independent variables that influence the consumers to shop online. The research model developed by the writers will serve as a basis for this research and it will help in analysing and interpreting the empirical results.
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FUTURE OF ONLINE SHOPPING IN INDIA
The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015 http://www.ibef.org/industry/retail.aspx). Currently 3% of retail transactions occur online, which will grow to 7-9% by 2016.
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Each Web property receives on an average 150,000 Unique Users / Day (Growing > 100% annually). In a month these properties reached around 4% of the Indian Population Users spent about 8 minutes per visit, enough time to research and buy. Primary customers are Young Graduate Males, Middle Income Groups. Long tail in terms of lower Income groups is also visible Early adoption amongst the Under 15 and 15-24 Age group who will lead consumption in the coming decade. Metros and Tier one cities account for roughly half the traffic, with the remainder distributed across India. Showing the long tail of users.
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MICRO INFORMATION
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MYNTRA
Myntra.com is ranked among the leading e-commerce companies in India and is the largest online retailer of lifestyle and fashion products. The company was started by a group of IIT/IIM graduates in 2007 and is headquartered in Bangalore. Funded by top tier Venture Capital Funds, Myntra is among the best funded ecommerce companies in the country today. Myntra, which started as an online destination for personalized products back in 2007, has expanded into broader lifestyle and fashion retailing. Today, Myntra is the largest online lifestyle retailer with over 200 national and international brands under its banner. Who started it? MYNTRA was established by Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena in February 2007. All three are IIT alumni, and have worked for several startups. Myntra is headquartered in Bangalore and has been funded by top tier Venture Capital funds like IndoUS, IDG & Accel Partners. How MYNTRA started? The company started off in the business of personalization of products, and soon expanded to set up regional offices in New Delhi, Mumbai and Chennai. It began its operations in the B2B (business to business) segment with the personalization of gifts, which included T-shirts, mugs and caps to name a few. However, in 2010, the company shifted its strategy to becoming a B2C (business to customer) oriented firm, expanding its catalogue to fashion and lifestyle products. From 2007 to December 2010, Myntra.com was in the business of online demand personalization. The products ranged from T-shirts, mugs, greeting cards, calendars, key chains, diaries, wine glasses, coasters and many such products with photographs, one-liners and slogans. In three years, Myntra became one of the Indias largest on-demand personalization platform for products and gifts with over a 50% market share.
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What MYNTRA does? MYNTRA has tied up with top fashion and lifestyle brands in India, such as Nike, Inc., Reebok, Puma, Adidas, Asics, Lee, Lotto, Decathlon, FIFA, John Miller, Indigo Nation etc. to offer a wide range of current season merchandise from these brands Myntra currently offers products from more than 200 Indian and international brands. These include shoes for running, tennis, football, basketball and fitness, along with casual footwear from world-renowned industry leaders like Nike, Puma, Converse, Adidas, Decathlon, Reebok, Lee Cooper, Numero Uno, Skechers, Crocks, Asics, Fila, Lotto, ID and many more. There are also casual and dressy footwear for women from Catwalk, Carlton London and Red Tape to name a few. Myntra also stocks T-shirts for men and women from popular brands like Jealous 21, Forever New, Classic Polo, Inkfruit, Lee, Nike, Inc., Probase, Puma, Adidas, Reebok, Ed Hardy, Decathlon, Lotto, Ediots, Mr. Men, Tantra and Guerilla. The website has also launched Being Human and Fastrack watches. Myntra also offers sports jerseys of several cricket and football teams such as Team India, IPL teams, national football teams, and Premier League football teams. These jerseys could be personalised with a name and number of the customers choice. Myntra offered sports jerseys of several cricket and football teams such as Team India, IPL teams, national football teams, and Premier League football teams. These jerseys could be personalised with a name an d number of the customers choice. Myntra has brought in a new level of professionalism and technology enablement to the e-commerce space in India. For consumers, this translates to superior experience, broader product selection and unmatched efficiency, thus adding to a better purchasing decision. The company's unique offerings include the largest in-season product catalogue, 100% authentic products, cash on delivery, and 30 day return policy, making Myntra the preferred online shopping destination in the country. 663000 people like the myntra page on facebook.
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MYNTRAS Awards
CNBC - TV18 Young Turks Award as one of the "Hottest Internet Companies of the Year 2011-12" "Pride of India 2011-2012" for Most Successful Fundraising by IDG Ventures "Pride of India 2009-2010" award for Exceptional Business Growth by IDG Ventures Red Herring Global 100 winner 2010 Team At the helm of Myntra's success is a management team of experienced and high caliber senior management professionals from globally recognized organizations such as Microsoft, Google, Intel, Trilogy and SAP, to name a few. The company has an employee base of over 400+ employees from a mix of corporate, business and premier academic institutions like IIMs and IITs who love to have fun and balance work at the same time.
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Business Model Of MYNTRA

Myntra.com is an aggregator of many brands. Its business model is based on procuring current season merchandise from various brands and making them available on the portal at the same time as in respective retail brand outlets. All these products are offered to customers on MRP. In October 2007, Myntra received a seed funding from Accel Partners (formerly Erasmic Venture Fund), Sasha Mirchandani from Mumbai Angels and another angel investor. In November 2008, Myntra raised with it a funding of $5 million from NEA-IndoUS Ventures, IDG Ventures and Accel Partners. In the second round of funding led by Tiger Global and participated by existing investors IDG Ventures and Indo-US Venture Partners, Myntra raised $14 million. Towards the end of 2011, Myntra.com raised $20 million in its third round of funding led by Tiger Global. Myntra launched a brand campaign with its first TVC in July 2011. The commercial 'juxtaposes new-age fashion with old-world grit' and positions Myntra as a 'fashionable new age' brand. Myntra's second campaign, with the tagline "Ramp It Up", was launched in October 2011 with a TVC. The new ad scored high on fashion quotient and the core message was to communicate the launch of the Autumn Winter 2011 collection on Myntra.com. In February 2012, Myntra also rolled out an OOH (out of home) campaign across Tier 2 cities, to build brand awareness and promote online shopping. In June 2012, Myntra launched its third campaign. Created by Taproot, the communication emphasises the benefits of buying online, and is titled 'Real life mein aisa hota hai kya'. Myntra.com was announced as a winner of the Red Herring Global 100 award. Red Herring announced its Global 100 awards in recognition of leading private companies from North America, Europe, and Asia, celebrating these startups' innovations and technologies across their respective industries. CNBC - TV18 awarded Myntra.com as one of the Hottest Internet Companies of the Year at the Mercedes - Benz CNBC - TV18 Young Turks Awards. It crossed 160 million dollars last year. Myntra is one of the leading online shopping portals which have the largest online catalogue of over 350 international and national brands. More than 400,000 people daily visit the site. Myntra's deliveries crossed 8,000 and is now tracking a $100 million revenue in financial year 2013.
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Flipkart went live in 2007 with the objective of making books easily available to anyone who had internet access. Today, we're present across various categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationery, perfumes, toys and still counting! Who started FLIPKART? MANAGEMENT TEAM
Sachin Bansal, CEO and Co-founder. He graduated from IIT-Delhi with a degree in Computer Engineering. In 2006 he joined Amazon.com in India which he later left to set-up Flipkart. Binny Bansal, COO and Co-founder. Binny went on to get a degree in Computer Engineering from IIT Delhi. He had a brief stint at Amazon before taking the entrepreneurial plunge with Flipkart.
Mekin Maheshwari, President, Technology. Mekin completed his B.E. from PESIT Bangalore in 2002. He started his career with Yahoo! and then went on to join Ugenie where he created we read, a successful social network around books. At Flipkart, Mekin is responsible for overseeing the companys technological operations. These include innovation and application of technology in areas starting from supply chain to website management.
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Sujeet Kumar, President, Operations. Sujeet completed his engineering from IIT Delhi. He worked in the KPO industry and orchestrated several freelance projects before joining Flipkart in 2008. Karandeep Singh, CFO. He has a Bachelors Degree in Commerce from Delhi University (Gold Medalist) and is a member of the Institute of Chartered Accountants of India (ICAI). He is also a fellow member of Aspen Leadership Network, associated through its India Leadership Initiative. Prior to joining Flipkart, Karandeep held the position of Vice President (Finance) & Managing Director at Sapient Corporation Pvt. Ltd. How FLIPKART works:With over 11.5 million book titles, 14 different categories, more than 3 million registered users and sale of 30000 items a day, we can say with utmost confidence that Flipkart is one of the leading e-commerce players in the country. They believe that their success is largely due to our obsession with providing our customers a memorable online shopping experience. Be it our pathbreaking services like Cash on Delivery, a 30-day replacement policy, EMI options, free shipping - and of course the great prices that we offer. Then there's one dedicated Flipkart delivery team that works round the clock to personally make sure packages reach on time. For now they're present in 37 lucky cities, but don't worry, plans are underway to spread to many others. So it's no surprise that they are a favourite online shopping destination. Online book seller FlipKart aims a revenue of Rs. 100 crore in next fiscal as it plans to expand portfolio by introducing electronic gadgets and mobile phones. Tag line at FLIPKART:-
TRUST IS MORE IMPORTANT THAN LOWER PRICES.
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Jabong.com is a young and vibrant company that aims to provide good quality branded products. Jabong.com caters to the fashion needs of men, women and kids across footwear, apparel, jewellery and accessories. What JABONG offers:At Jabong.com we strive to achieve the highest level of Customer Satisfaction possible. Our cutting edge E-commerce platform, highly experienced buying team, agile warehouse systems and state of the art customer care centre provides customer with:

Broader selection of products Superior buying experience On-time delivery of products Quick resoulution of any concerns
Tag line of Jabong.com:-
"No Questions Asked Return Policy!"
If you see the Unique visitor count, Jabong.com is attracting close to 50% more traffic than Flipkart.com which is phenomenal given that jabong.com has only been in market for about 9 months. Yes, obviously they are investing piles of cash in advertising, but they are also backing it with up with great service. I have ordered 3 times via jabong.com and my experience has been absolutely brilliant. They offered great prices, great variety for most of their products and best of all, their customer support has been top notch.
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For a new site like Jabong, to get all the processes and people in place in such a short time is really commendable.
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Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global commerce platform and payments leader connecting millions of buyers and sellers. We do so through eBay, the world's largest online marketplace, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through GSI, which facilitates ecommerce, multichannel retailing and digital marketing for global enterprises. X.commerce brings together the technology assets and developer communities of eBay, PayPal and Magento, an ecommerce platform, to support eBay Inc.'s mission of enabling commerce. We also reach millions through specialized marketplaces such as StubHub, the world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com E-BAY India (www.ebay.in) is India's leading online marketplace. eBay India (www.eBay.in ), India's leading ecommerce marketplace, is India's largest online shopping website where thousands of Indian entrepreneurs list a wide range of products across Electronics, Lifestyle, Collectibles and Media categories. eBay India has 4 million registered users from 3,311 cities in India. eBay India is a 100% subsidiary of eBay Inc. Thousands of sellers sell on eBay India daily across 2000 categories of products over a wide range of products including Lifestyle, Media, Collectibles& Electronics. At any given time, there are over 7 million live listings on eBay India. In 2009, eBay India launched Global EasyBuy - The International Online Shopping Destination - which provides Indian shoppers with instant access to an unprecedented 18 million products at any given point of time. Global EasyBuy (www.ebay.in/geb) is aimed at redefining the Indian retail landscape and will provide savvy Indian shoppers access to the world's hottest labels and coolest brands from the comfort of their home. Global EasyBuy is a pioneering service in the country that enables Indian shoppers to purchase directly from international eBay sites, pay a single price (inclusive of product cost, shipping and any applicable duties) in Indian Rupees and get assured doorstep delivery.
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What e-bay offers? On an average day on eBay India:
A mobile accessory sells every 1 minutes A health or beauty product sells every 1 minute A portable storage device sells every 2 minutes A coin or a note sells every 2 minutes A mobile handset sells every 2 minutes A piece of home dcor sells every 2 minutes A car or bike accessory sells every 3 minutes A piece of apparel sells every 3 minutes A stamp sells every 4 minutes A piece of jewellery sells every 3 minutes A watch sells every 5 minutes A book or magazine sells every 6 minutes A fitness & sports item sells every 7 minutes A toy sells every 8 minutes A tablet sells every 11 minutes A home appliance sells every 11 minutes A piece of office supplies sells every 17 minutes A pair of footwear sells every 20 minutes A digital camera sells every 20 minutes A laptop sells every 23 minutes
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A baby care product sells every 34 minutes A pair of sunglasses sells every 37 minutes A MP3 player sells every 37 minutes A TV sells every 43 minutes
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BENEFITS OF E-BAY
DEALER-BUYER BENEFITS:
Access to aggregated vehicle inventory from various sellers at one place Inspection led bidding An independent & transparent platform that enables equal opportunity trade Opportunity to bid across states and across vehicle categories A simple, easy to use product with dedicated customer support
CORPORATE-SELLER BENEFITS:
A liquid marketplace for high inventory turnover High Conversion Rates for the vehicles listed on the platform A transparent audit friendly process that ensures fair trade Efficient market pricing through exposure of stock to a large audience of 14,743 dealers across the country
KEY FAST FACTS

Founded in 2002 as part of Baazee.com (now eBay India), eBay India Motors is the largest single B2B Motors marketplace in India. A vehicle sells every 15 minutes on the eBay India Motors platform Over 14,743 dealers from 295 cities in India are registered on the platform
On an average day, there are over 188 vehicles for auction.
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SURVEY QUESTIONNAIRE
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SURVEY QUESTIONNAIRE
This survey is solely done for the official use of the Academic Research Project on Consumers Behaviour towards Online Shopping for L. J. Institute of Business Administration. The information provided will be solely used only for the authenticity of the Survey & the Conclusions derived thereof. Note: You may tick ( ) multiple options as & when required. 1) Personal information: a. Full Name : _________________________________________ b. Mobile no.: _________________________________________ c. Email 2) Gender : 3) Age group : a. c. : _________________________________________ Male Female b. d. 18 30 years 50 & above
Below 18 31 50 years
4) Occupation : a. c. Student Professional b. d. Employee Businessman / Businesswoman
5) Monthly Income : a. c. Rs. 10000 25000 Rs. 35000 Rs. 50000 b. d. Rs. 25000 35000 Rs. 50000 & above
6) Approximate monthly expenditure on shopping : a. c. < Rs. 2000 Rs. 5000 10000 b. d. Rs. 2000 5000 Above Rs. 10000
7) Are you aware of Online shopping? a. Yes b. No
If Yes, which websites are you aware of? 1. 2. 3. Flipkart.com Jabong.com Myntra.com
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4.
ebay.in
Others, please specify _____________________________________ 8) Do you think online shopping is advantageous over traditional shopping? a. Yes b. No
9) Do you think Cash on Delivery (COD) is better than credit/debit cards? a. Yes b. No
If Yes, why? ____________________________________________________________ 10) Do you think online shopping is helpful to consumers in e-business domain? a. Yes b. No c. Cant say
If yes, how? a) b) c) It broadens consumer choice It avails price transparency Fastens transaction process
11) Do you think e-commerce facilitates more effective business transactions? a. Yes b. No c. Cant say
If yes, how? a) b) c) Comprehends consumers demand effectively Fuels business by creating customer & business network Ensures guarantee of give & take
12) Do you think online shopping has increased over the years in India? a. Yes b. No c. Cant say
13) Do you agree online shopping can provide a better marketing channel by eliminating middlemen? a. Yes b. No c. Cant say
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14) According to you, which category has the largest market share in ecommerce? a. B2B b. B2C c. B2G d. Cant say
15) What are the challenges for online shopping in India? a. b. c. d. Access of Internet Lack of Trust Lack of consumer awareness Security concerns
16) What measures would you recommend for promotion of e-shopping & ecommerce in India? a. b. c. Ease of Internet access Increasing consumer awareness Integrated promotional approach
17) According to you, what is the future of e-shopping in India? a. c. Very good Not so good b. d. Good Doesnt have any
18) Which is the most prominent domain in e-commerce in India, according to you? a. b. c. d. e. f. Matrimony Education Real Estate Travel & Tourism Consumer goods Banking
19) Do you shop online? a. Yes b. No
Please answer the following set of questions if you dont shop online.
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If you do, kindly skip this section & answer the next set of questions. 20) You dont shop online because of : a. b. c. d. e. No internet access Unawareness about the procedure of online shopping Lack of trust No debit/credit cards High cost of products
If any other reason, please specify _____________________________________________________________ 21) Will you opt for e-shopping over traditional ways in the future? a. Yes b. No c. Probably yes d. Cant say
22) Which factors do you think will induce you to opt for online shopping? a. b. c. d. e. Positive response of family & friends Getting debit/credit cards More simplification of buying procedure Attractive offers/gifts/discounts by such websites Just by chance
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If you shop online, then kindly answer the following questions : 24) How often do you shop online? a. c. Weekly Quarterly b. d. Monthly Rarely
25) What is your average monthly expenditure on online shopping? a. c. < Rs. 1000 Rs. 2000 Rs. 3000 b. d. Rs. 1000 Rs. 2000 above Rs. 3000
26) For how many years have you been shopping online? a. c. Less than a year 3 5 years b. d. 1 3 years above 5 years
27) Do you think online shopping is a status symbol? a. Yes b. No
28) What do you shop online the most? a. c. Apparels Electronics b. d. Books Travel & Tourism
If others please specify _____________________________________________________________ 29) Which is your most preferred mode of payment? a. c. Cash on Delivery (COD) Debit Cards b. d. Credit cards Demand Draft
30) According to you which are the 5 best websites for e-shopping? a. b. c. d. e. ____________________________ ____________________________ ____________________________ ____________________________ ____________________________
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31) What influences your perceptions towards such websites the most? a. b. c. d. Reviews published in mass media Friends / Colleagues opinion Family members opinion Information & offers published on such websites
32) Please mark the website you prefer the most for shopping online. a. b. c. d. Flipkart.com Myntra.com Jabong.com ebay.in
Others please specify _____________________________________________________________ Please specify the major reasons for choosing this website _____________________________________________________________ 33) Have you ever switched over from your most preferred website to another? a. If yes, why? a. b. c. d. e. f. g. Poor after sales services Absence of CoD Less options High prices Poor quality of goods No response to complaints Just for a change Yes b. No
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34) What after sales services do you expect from online sellers? a. __________________________________________________________ b. __________________________________________________________ c. __________________________________________________________ d. __________________________________________________________ Please give your valuable suggestions for online retail companies for enhancing the future prospects of e-shopping in India __________________________________________________________________ __________________________________________________________________ _________________________________________________________________ _________________________________________________________________
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ANALYSIS of questionnaire
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SHOPPERS
Q1. Age Group Age Below 18 18-30 31-50 50 & Above Total Male 4 66 5 0 75 % 5.34 88 6.66 0 100 Female 7 29 6 1 43 % 16.28 67.44 13.95 2.33 100
90
80 70 60
88
67.44
50
40 30 20 10 0
16.28
Male
13.95
5.34 6.66
Below 18
Female
2.33 0
Female
Male
18-30
31-50
50 & above
INTERPRETATION:According to our survey of 200 people the survey is very much dominated by people falling in age group of 18-30 i.e. 88% males and 67.44% of females. It means that our data is youth dominated with a very little competition from other age group of below 18 5.34 males and 16.28% females falling under this group
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Q2. Occupation (Shoppers) Occupation Student Employee Professional Businessman Total Male 42 17 5 11 75 % 56 22.66 6.66 14.68 100 Female 27 8 7 1 43 % 62.8 18.6 16.28 2.32 100
70 60 50 56
62.8
40
30 20 22.66 18.6 16.28 14.68 2.32 Student Employee Professional 6.66 Male Female
10
0
Businessman
INTERPRETATION:In our survey the occupation of shoppers is heavily influenced by students being the highest with 56% and 62.8% males and females respectively. Employed persons come second in both categories of male and female with 22.66% and 18.6% respectively .
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Q3. Average monthly expenditure on shopping. Expenditure (Rs.) <2000 2000-5000 5000-10000 10000 & above Total Male 9 42 16 8 75 % 12 56 21.33 10.97 100 Female 10 19 11 3 43 % 23.25 44.19 25.6 6.96 100 Rs. 4746.67 Rs. 4441.86
Average monthly expenditure on shopping (Male) = Average monthly expenditure on shopping (Female) =
10000 & above
6.96 10.97
25.6 21.33 44.19 56 23.25
5000-10000
Female (%) Male (%)
2000-5000 <2000 0 10
12 20
30
40
50
60
INTERPRETATION:In our survey, males have shadowed females in terms of average monthly expenditure with 4746.67 Rs. as against 4441.86 by females.
56% males spending in between 2000-5000 and females falling under this group is 44.19%.
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Q4. Are you aware of online shopping? If Yes, which sites are you aware of? 1. 2. 3. 4. Aware Yes No Flipkart.com Jabong.com Myntra.com Ebay.in Male 75 0 % 100 0 Female 43 0 % 100 0
Sites Flipkart.com Jabong.com Myntra.com Ebay.in
Rank 1 4 3 2
INTERPRETATION: According to our survey, 100% people are aware about online shopping and 1st rank is secured by flipkart.com while 2nd rank is given to ebay.in and 3rd and 4th rank are secured by myntra.com and jabong.com respectively.
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Q5. Do you think online shopping is better than traditional way of shopping? Male 61 14 75 % 81.33 18.67 100 Female 32 11 43 % 74.42 25.58 100
Yes No Total
No
25.58 18.67
Female (%)
Male (%)
Yes 0
74.42 81.33 20 40
60
80
100
INTERPRETATION:According to our survey, 81.33% males and 74.42% of females find that online shopping is better than traditional shopping methods, while 18.67% males and 25.58% females deny it.
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Q6. Do you think COD is better than Credit/Debit cards?
Yes No Total
Male 63 12 75
% 84 16 100
Female 36 7 43
% 83.72 16.28 100
90 80 70 60 50 40 30 20 10 0
84
83.72
Male (%) 16.28 16 Female (%) Yes No Male (%) Female (%)
INTERPRETATION:According to our survey, 84% in both categories of males and females agree to the fact that COD is better than debit/credit cards. Whereas 16% of males and females think the other way.
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Q7. Do you think online shopping is helpful to consumers in e-business domain? If Yes, how? a. It broadens consumer choice b. It avails price transparency c. Fastens transaction process
Options Yes No Cant Say Total
Male 51 6 18 75
% 68 8 24 100
Female 33 2 8 43
% 76.74 4.65 18.61 100
76.74 80 70 60 50 40 30 20 10 0 Yes No Can't Say Male Female Female Male 68
18.61 4.65 8
24
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Q8. Do you think e-commerce facilitates more effective business transactions? If Yes, how? a. Comprehends consumers demand effectively b. Fuels business by creating customer & business network c. Ensures guarantee of give & take Options Yes No Cant Say Total Male 55 5 15 75 % 73.33 6.67 20 100 Female 27 8 8 43 % 62.8 18.6 18.6 100
Can't Say
18.6 20
No
18.6 6.67 Female (%) Male (%)
Yes
62.8 73.33 0 20
40
60
80
INTERPRETATION:According to our survey, 73.33% males and 62.8% females think that e-commerce facilitates more effective transactions as they comprehend consumers demand effectively, whereas there is less competition from no and cant say with less than 26% of males and 37% females replying negative.
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Q9. Do you think online shopping has increased over the years in India?
Male 75 0 0 75
% 100 0 0 100
Female 41 1 1 43
% 95.32 2.34 2.34 100
100 100 80
95.32
60
Male (%) 40 20 0 Yes No Can't Say 0 2.34 0 2.34 Female (%) Female (%)
Male (%)
INTERPRETATION:According to our survey, 100% males in our list voted that yes online shopping has increased over the years, same was the case with females as 95.32% females agree to the fact that online shopping has increased over the years. Whereas other categories such as no and cant say get one vote each with 2.34% each.
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Q10. Do you agree that online shopping can provide a better marketing channel by eliminating middlemen?
Male 60 11 4 75
% 80 14.67 5.33 100
Female 36 3 4 43
% 83.72 6.97 9.31 100
90 80 70 60
80
83.72
50
40 Male (%) Female (%) 14.67 6.97 Yes No Can't Say 5.33 9.31
30 20 10
0
INTERPRETATION:According to our survey, we found out that 80% males and 83.72% females think positive about online shopping portals not engaging middlemen and it provides better marketing channel. Whereas persons denying it are very less.
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Q11. According to you, which category has the largest market share in ecommerce?
Options B2B B2C B2G Cant Say Total
Male 11 57 0 7 75
% 14.67 76 0 9.33 100
Female 5 27 1 10 43
% 11.63 62.8 2.32 23.25 100
80 70 60 50 40 30 20 10 14.67
76
62.8
Male (%) Female (%) 23.25 11.63 0 2.32 B2G Can't Say
9.33
0 B2B B2C
INTERPRETATION:According to our survey, 76% males voted for B2C being the most used domain also females backing the males with 62.8% votes, while B2B getting second rank in the list and third is B2G with negligible voting.
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Q12. According to you, what is the future of e-commerce in India?
Options Very Good Good Not so good Doesnt have any Total
Male 52 23 0 0 75
% 69.33 30.67 0 0 100
Female 24 19 0 0 43
% 55.8 44.2 0 0 100
80 70 60 50 40 30.67 30 20 69.33
55.8 44.2 Male (%) Female (%)
10
0 0 Very good Good Not so good Doesn't have any 0 0 0
INTERPRETATION:According to our survey, 69.33% of shoppers think that future of online shopping is very good and 55% of female shoppers agree with males.30.67% males and 44.2% females think that the future is good.
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Q13. Which is the most prominent domain in e-commerce in India according to you?
Domain Matrimony Education Real Estate Travel & Tourism Consumer goods Banking
Rank 4 5 6 2 1 3
Rank
Banking Consumer goods Travel & Tourism Real Estate Education Matrimony 0 10 20 17 21 31 30 60 Rank 49 68
40
50
60
70
INTERPRETATION:According to our survey, the domains are ranked by votes given by online shoppers and in that 1st rank is secured by consumer goods, while 2nd rank is given to travel and tourism,3rd 4th and 5th rank is secured by banking, matrimony and education respectively and last rank is secured by real estate.
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Q14. How often do you shop online?
Options Weekly Monthly Quarterly Rarely Total
Male 10 25 8 32 75
% 13.33 33.33 10.67 42.67 100
Female 3 12 10 18 43
% 6.97 27.9 23.25 41.88 100
45 40 35 30 25 20 15 10 5 0 33.33 27.9 23.25
41.88 42.67
Male (%) 13.33 6.97 10.67 Female (%) Weekly Monthly Male (%) Quarterly Rarely Female (%)
INTERPRETATION:According to our survey, most online shoppers shop sometimes according to their need with 42.67% males and 41.88% females shopping sometimes while 33.33% males and 27.9% females shop monthly. And also 13.33% males and 6.97% females shop every week from online shopping websites.
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Q15. What is your average monthly expenditure on online shopping?
Options <1000 1000-2000 2000-3000 3000 & above Total
Male 14 28 19 14 75
% 18.67 37.33 23 21 100
Female 16 16 6 5 43
% 37.2 37.2 13.9 11.7 100
40 35 30 25 20 15 10 5 0
37.2
37.33 37.2
18.67
23 21 13.9 11.7 Male (%) Female (%)
<1000
1000-2000
2000-3000
3000 & above
INTERPRETATION:According to our survey, men tend to spend more on online shopping on an average, as compared to women who shop online. 37.33% men spend Rs. 1000- Rs. 2000 on an average while shopping online, similar to women.
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Q16. For how many years you have been shopping online?
Options Less than a year 1-3 years 3-5 years Above 5 years Total
Male 25 38 9 3 75
% 33.33 50.67 12 4 100
Female 23 17 2 1 43
% 53.5 39.53 4.65 2.32 100
60 53.5 50.67 50 39.53 33.33 30 Male (%)
40
Female (%)
20 12 10 4.65 4 2.32
0 Less than a year 1-3 years 3-5 years above 5 years
INTERPRETATION:According to our survey, from the shoppers 33.33% males and 53.5% females are shopping online since less than a year whereas 50.67% males and 39.53% females are shopping since 1-3 years .Whereas the shoppers who are shopping since long time like above 3 years are 16% males and 7%.
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Q17. Do you think online shopping is a status symbol?
Options Yes No Total
Male 38 37 75
% 51 49 100
Female 18 25 43
% 41.86 58.14 100
58.14
60
51 50 40 30 20 10 Female (%) Male (%) Yes No Male (%) Female (%) 41.86 49
INTERPRETATION:51% males think that online shopping is a status symbol whereas females think otherwise with 58.14% votes in no. This shows that males and females have differences in opinion about status symbol.
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Q18. Most preferred website.
Rank
38 25 41
66 Flipkart.com Myntra.com Jabong.com Ebay.in
INTERPRETATION:According to our survey, flipkart is ranked 1 st by getting maximum number of votes, 2nd rank goes to myntra, while 3rd and 4th ranks are e-bay and jabong respectively.
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Q19. Have you ever switched over from your most preferred website to another?
Options Yes No Total
Male 41 34 75
% 54.67 45.33 100
Female 24 19 43
% 55.81 44.19 100
55.81 60 54.67 44.19 45.33
50
40 30 20 10 0
Male Female Female Male
Yes
No
INTERPRETATION:According to our survey, 54.67% males and 55.81% females have shifted from one website to other because of loopholes in the portals like absence of COD whereas 45.33% males and 44.19% females are loyal to their present website and dont wish to change.
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NON-SHOPPERS
Q1. Age Group
Option Below 18 18-30 31-50 50 & above Total
Male 4 32 3 4 43
% 9.3 74.42 6.97 9.31 100
Female 8 28 3 0 39
% 20.5 71.8 7.7 0 100
80 70 60 50 40 30 20 10 0 9.3 20.5
74.42
71.8
Male (%) Female (%) 7.7 6.97
9.31
0 Female (%) Male (%)
Below 18
18-30
31-50 50 & above
INTERPRETATION:According to our survey, maximum number of non-shoppers fall under the age group of 18-30 with 74.42% males and 71.8% of females falling under this group. The other 3 categories dont give enough competition 9.3% males and 20.5% females below 18. 31-50 category get 6.97% males and 7.7% females whereas 50+ gets 9.31% of males and no females .
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Q2. Occupation Occupation Student Employee Professional Businessman Total Male 18 16 4 5 43 % 41.86 37.2 9.3 11.64 100 Female 25 9 4 1 39 % 64.1 23.09 10.25 2.56 100
70 60 50 40 30
64.1
41.86 37.2 Male (%) 23.09 Female (%) 9.3 10.25
20 10 0 Student Employee 11.64 2.56 Professional
Businessman
INTERPRETATION:According to our survey, non-shoppers get a huge share from students with 41.86% from males and 64.1% from females, while 37.2% males and 23.9% females fall under employed group. 9.3% males and 10.25% females are professional and in business category there are 11.64% and 2.56% males and females respectively
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Q3. Approximate monthly expenditure on shopping. Expenditure <2000 2000-5000 5000-10000 10000 & above Total Male 12 19 9 3 43 % 27.9 44.19 20.93 6.98 100 Female 16 17 4 2 39 % 41.02 43.59 10.25 5.14 100
Average monthly expenditure on shopping (Male) = Average monthly expenditure on shopping (Female) =
Rs. 4093 Rs. 3218
45 40 35 30 25 20 15 10 5 0
41.02 44.1943.59
27.9 20.93 10.25 5.14 6.98 Female (%) < 2000 2000-5000 Male (%) 5000-10000 10000 & above
Male (%) Female (%)
INTERPRETATION:According to our survey, non-online shoppers spend lesser amount per month as compared to the ones who shop online . the average monthly expenditure of males is very much higher than females leaving them far behind with Rs.4093 as against Rs.3218 by females. Non online shoppers spend between 2000-5000 with 44.19% males and 43.59% females shop between this amount
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Q4. Are you aware of online shopping? If Yes, which sites are you aware of? 1. 2. 3. 4. Aware Yes No Flipkart.com Jabong.com Myntra.com Ebay.in Male 43 0 % 100 0 Female 39 0 % 100 0
Sites Flipkart.com Jabong.com Myntra.com Ebay.in
Rank 1 3 3 2
Rank
60 50 40 30 20 10 0 Flipkart.com Jabong.com Myntra.com Ebay.in 53 38 38 44 Rank
Interpretation:According to our survey, amongst the non-online shoppers flipkart wins the race.
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Q5. Do you think online shopping is better than traditional way of shopping?
Yes No Total
Male 13 30 43
% 30.23 69.77 100
Female 19 20 39
% 48.72 51.28 100
70 60 50 40 30 20 10 0 30.23 48.72
69.77 51.28
Male (%) Female (%)
Female (%) Male (%)
Yes No
INTERPRETATION:According to our survey, from the nononline shoppers 69.77% males dont agree that online shopping is better than traditional shopping, and there was a tough competition in females with 48.72% say yes it is better and 51.28% deny it.
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Q6. Do you think COD is better than Credit/Debit cards?
Yes No Total
Male 27 16 43
% 62.8 37.2 100
Female 29 10 39
% 74.35 25.64 100
74.35 80 70 60 50 40 30 20 10 0 Yes No Female (%) Male (%) 37.2 25.64 Male (%) Female (%) 62.8
INTERPRETATION:According to our survey, there was a great resemblance in the answers given by males and females to the above question with huge responses are in positive favour with 62.8% males and 74.35% females replying positively yes that COD is better than credit/debit card whereas there is very less competition from the ones denying it with 37.2%, males voting in negative and 25.64% females denying it.
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Q7. Do you think online shopping is helpful to consumers in e-business domain? If Yes, how? d. It broadens consumer choice e. It avails price transparency f. Fastens transaction process Options Yes No Cant Say Total Male 18 11 14 43 % 41.86 25.58 32.56 100 Female 20 6 13 39 % 51.29 15.38 33.33 100
100 90 80 70 60 50 40 30 20 10 0 Yes No Can't say 41.86 25.58 32.56 15.38 33.33 Female (%) Male (%) 51.29
INTERPRETATION:According to our survey, 41.86% males and 51.29% females think that online shopping is helpful to consumers by broadening consumers choice and also there is price transparency whereas 25.58% males and 15.38% females say that it is not so. And 32.56% males and 33.33% females cannot say anything about this issue.
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Q8. Do you think e-commerce facilitates more effective business transactions? If Yes, how? a. Comprehends consumers demand effectively b. Fuels business by creating customer & business network c. Ensures guarantee of give & take
Male 17 11 15 43
% 39.53 25.58 34.89 100
Female 16 12 11 39
% 41 30.78 28.22 100
Can't Say
No
Female (%) Male (%)
Yes
10
20
30
40
50
INTERPRETATION:According to our survey, we got some positive response from non-online shoppers with 39.53% males and 41% females think that online shopping provides them with more effective transactions as they comprehend consumers demand effectively. Whereas25.58% males and 30.78% females replied in negative for this question.
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Q9. Do you think online shopping has increased over the years in India?
Male 31 4 8 43
% 72.1 9.3 18.6 100
Female 30 6 3 39
% 76.92 15.38 7.7 100
Can't say
18.6
7.7
No
9.3 15.38
Male (%) Female (%)
Yes
72.1 76.92 0% 20%
40%
60%
80%
100%
INTERPRETATION:According to our survey, from the non-online shoppers, 72.1% males and 70.32% females think that online shopping has increased over the years. Whereas 18.6% males and 7.7% females answered cant say.
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Q10. Do you agree that online shopping can provide a better marketing channel by eliminating middlemen?
Male 21 8 14 43
% 48.83 18.6 32.57 100
Female 18 11 10 39
% 46.15 28.21 25.64 100
Can't say
25.64
32.57
No
28.21 18.6 Female (%) Male (%)
Yes
46.15 48.83 0 10 20
30
40
50
INTERPRETATION:According to our survey, 48.83% males and 46.15% females said that online shopping has created better marketing channel by neglecting middlemen .Whereas 32.57% males and 25.64% females cannot decide.
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Q11. According to you, which category has the largest market share in ecommerce?
Options B2B B2C B2G Cant Say Total
Male 5 20 3 15 43
% 11.63 46.51 6.97 34.89 100
Female 5 25 0 9 39
% 12.82 64.1 0 23.08 100
70 60 50 40 30 20 10 0 B2B B2C 11.63 12.82 46.51
64.1
34.89 23.08
Male (%) Female (%)
6.97
0 Female (%) Male (%)
B2G
Can't Say
INTERPRETATION:According to our survey, in the above category non online shoppers voted maximum for the B2C category with 46.14% males and 64.1% votes from females while 34.89% male and 23.08% females couldnt decide which to vote.
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Q12. According to you, what is the future of e-commerce in India?
Options Very Good Good Not so good Doesnt have any Total
Male 9 24 9 1 75
% 20.9 55.83 20.9 2.37 100
Female 12 23 2 2 39
% 30.77 58.97 5.13 5.13 100
58.97 60 50 40 30 20 10 0 20.9 20.9 5.13 5.13 2.37 Female (%) Male (%) Not so good Doesn't have any 30.77 55.83
Male (%) Female (%)
Very good
Good
INTERPRETATION:According to our survey, 20.9% of males and 30.77% of females think that future of online shopping is very good, while a heavy % of 55.83% males and 58.97% females think that future is good. Whereas there are very less % of people think that future of online shopping is not good.
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Q13. Which is the most prominent domain in e-commerce in India according to you? Domain Matrimony Education Real Estate Travel & Tourism Consumer goods Banking Rank 5 4 6 1 2 3
Rank
Banking Consumer goods Travel & Tourism Real Estate 6 12 10 0 10 22 28 39 Rank
Education
Matrimony
20
30
40
INTERPRETATION:According to our survey, from the non-online shoppers the ranks have been given , maximum votes going to travel and tourism by nononline shoppers and next being consumer goods coming before banking ,followed by education, matrimony and real estate getting 4 th,5th,and 6th rank respectively.
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Q14. You dont shop online because: a. b. c. d. e. No Internet access Unawareness about procedure of online shopping Lack of trust No debit/credit cards High cost of products
Rank
No Internet access Unawareness
Lack of trust
No debit/credit cards High cost
INTERPRETATION:According to our survey, we listed down some problems of nonshoppers so as to know why they dont shop online and here are the results: biggest reason being lack of trust on online shopping portals getting the highest votes, then being unaware, followed by no internet access, no internet access and the last being high cost of products.
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Q15. Will you opt for e-shopping over traditional way in the future?
Options Yes No Probably yes Cant say Total
Male 7 8 24 4 43
% 16.28 18.6 55.82 9.3 100
Female 3 7 24 5 39
% 7.7 17.95 61.53 12.82 100
70 60 50 40 30 20 10 0 Yes No 16.28 7.7 18.6 17.95
61.53 55.82
Male (%) 12.82 9.3 Female (%) Male (%) Female (%)
Probably yes
Can't say
INTERPRETATION:According to our survey, we asked the non-online shoppers would they like to start shopping online and we got a positive response from them. Maximum votes were given to probably yes category with 55.82% males and 61.53% females opting out for probably yes. Whereas 18% males and 18% females deny of ever opting for online shopping clearly stating they will never opt for online shopping instead go for traditional shopping methods instead.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
We will attempt to find the main factors that influences the consumer when making an online purchase. To broaden our own understanding of the subject, we conducted our initial research in literature on consumer behaviour and e-commerce. We reviewed studies that had similar aims and paid particular attention to their results. For our own research, we decided that the most appropriate approach would be a questionnaire that would be filled up by the residents of Ahmedabad. This study started off as an exploratory study but developed into an explanatory study as we first attempted to identify what is the consumer behaviour towards online shopping, gradually gaining insights into the reasons behind particular behavioural patterns. Havind identified the contributing factors, we attempted to highlight the major ones amongst them and establishing relationships between these variables.
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RESEARCH APPROACH
There are two most commonly used research approaches-the inductive and the deductive method. The inductive research method attempts to set up a theory on the basis of the collected data while the deductive research approach attempts to find the theory first and then test It to the observed data. We chose the deductive research approach for our study will move from the more general information to the specific information.
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RESEARCH DESIGN AND DATA COLLECTION METHOD
RESEARCH METHOD Our research regarding Consumers behaviour towards online shopping is a descriptive research because we aim to draw a detailed picture of the same, also covering the factors that influence consumers to shop online. In general two types of research methods are there- quantitative and qualitative. We adopted quantitative method in our research as it is a more precise and relevant to our topic. According to Creswell (1994) time is vital attribute for decision making while selecting research method. Saunders, Lewis, and Thornhil (2000) suggests that quantitative research can be faster as compare to qualitative as it is possible to forecast the time schedule, whereas qualitative can be relatively long in duration. Research projects normally done for academic reasons are limited to time as our research is also being done for academic purpose and is time limited so that is why we prefer quantitative approach for the same.
DATA COLLECTION There are two methods in general used by researchers to collect data- primary and secondary method. Primary data includes observation method, Interview/ questionnaire method, case study method, projective techniques and sociometry. Whereas, secondary data is the data which is already collected by some other researcher not for the reason for particular study or research.
We used both secondary as well as primary data for our research. Macro aspects about the project were covered by secondary sources of information whereas all other areas where studied by conducting a survey of residents of
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Ahmedabad. The survey was conducted by circulating questionnaires questionnaire amongst the Consumers in Ahmedabad in order to find out what are the factors that influence consumers to purchase online. As our study Covers Ahmedabad online/traditional shoppers, we considered it easier to distribute the questionnaires and then analyse the situation.
SAMPLING By keeping in view the limitations of time, resources and population writers have decided to apply convenience sampling technique for the purpose of collecting empirical material. As time and resources are one the constraints faced by the researchers convenience sampling is helpful, and it seemed suitable for our research purpose as we are unaware of the online shoppers in Ahmedabad and besides this we could not get the list of online shoppers as it was difficult to get the required list from any authentic source. That is why we decided to circulate our questionnaires among the residents of Ahmedabad and from malls in Ahmedabad. Again, convenience sampling was considered more efficient when it came to approach the respondents and collect the data on time and also to avoid low response rate, as we were expecting at least 100% response rate.
SAMPLE DESIGN In a particular research, a procedure that is followed for selecting a sampling unit is called the sample design. This procedure of selecting a sampling unit is generally a mixed process. A mixed process as in it consists of conducting survey online as well as in person to the respondents. The population selected by us for the study is the general public residing in Ahmedabads mentioned in above paragraph we have selected convenience sampling technique so sample is designed accordingly by approaching the respondents by circulating the questionnaires to general public in Ahmedabad. The purpose of using the mixed process is to collect empirical data conveniently and on time, as time and resources were also kept in mind by us at every step of this thesis.
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SAMPLE SIZE As stated earlier, the population for the research is the general public of Ahmedabad and keeping in view the limitations of time and resources we decided to take the sample of 200 random people we encountered.
Questionnaires were circulated by hand to respondents and enough time was given to respondents to fill the questionnaires accurately, so as to minimize the sampling error. Questionnaire is constructed in simple language in order to reduce the risk of ambiguity.
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QUESTIONNAIRE DESIGN
The questionnaire is carefully designed to meet the requirements of the research. The questions are taken from previous literature on Consumers attitudes towards online shopping with a view to validate the research more and some of the questions are self-structured to cover the diversity of research problems.
The questionnaire consists of 3 parts broadly: The first part consists of general questions in terms of demography about all the respondents, irrespective of whether they shop online or not. The second part is meant to be responded by those respondents who dont shop online, so that we could find out the proportion of traditional shoppers along with the reasons behind their reluctance to shop online. The third part is meant to be responded by those respondents who shop online, so that we could find out the proportion of online shoppers along with the reasons behind their preference for online shopping.
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S.W.O.T ANALYSIS
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STRENGTHS:Youth of India is voting maximum for online shopping as they dont have much time to spend for shopping by going at different places rather they tend to compare prices at their home and shop online. Target segment for online shopping portals are students and employed persons till age group of 40. And in our survey this point is proved as maximum online shoppers in our primary data are students and employed persons. Maximum people think that online shopping is more comfortable as they dont need to go shop to shop for purchases. Best service that online shoppers provides in todays date is of COD as consumer can get a trial at home and they can check the product themselves and then pay. Also with 30 day return policy being adopted by maximum companies online shopping can go to new heights. Most non online shoppers tend to turn to online shopping as they are attracted but were scared by providing information but with COD they now tend to shift. A lot of cost is being incurred by portals in making advertisements which customers love to see like the flipkart ads take children as in lead role which attract the customers heavily.
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WEAKNESS:Fear still prevails in most of the people above 40 age group, but with cod in place this fear may subside with passing of time. Many females are yet to think about shifting to online shopping so online portals need to focus on luring females. Many persons are yet not aware about what online shopping actually is ,so government as well as portals need to find a way to bring more awareness regarding online shopping and its benefits. As internet Is the only thing that connects consumer with portals that may cause problems to consumers.
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OPPORTUNITIES:Online portals have great opportunities in youth and employed persons and the youth is the core consumer and this shopping convenience will prevail till a long time. Purchasing power of people in India is increasing day by day which is a positive sign for online portals as they spend more on shopping. With convenience to buy and pay after delivery, many non-online shoppers will shift to online shopping. With services that they provide and product quality and branded products there is great opportunity for online companies.
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THREATS:There are not much threats to face In the portals but still the main threat that may prevail for online shopping portals is fear of providing personal information. Companies who dont provide cod may face problems from persons who dont want to provide their card information. Traditional shoppers who are loyal to their stores from where they have been shopping all these years , it will be a tough task to make them shift from their base.
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OBSERVATIONS
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It was a great experience for us as a student of BBA to experience and understand aspects of business and this project helped us out to relate us with business environment. We observed a lot of things while preparing this project and different stages of preparing this project helped us observe many things. We observed many aspects of not only online shopping but also business as a whole. While the 3 stages of preparing the project The Questionnaire phase Analysis phase Editing phase
The most important question for us was to understand with increase in internet usage by the people do they change with time and trends. Which we did till some extend but could not as the time provided was less also the sample size that we had to deal with was not to be more than 200. As a result what we could finish with was an analysis of 200 random people. 1. QUESTIONNAIRE FILL-UPS:The first thing we observed in the Questionnaire fill-up stage was that youth doesnt have much problem with changing with time ,whereas the peo ple above 50 were quite reluctant in using technology for their purchases. Most people wanted and are willing to purchase online but are scared that their information can be misused. One big thing that we observed in the questionnaire phase was that Online shopping is a hit in youth. Maximum number of online shoppers in our survey are youth who are willing to shop online and now with a great option of COD online shoppers are very happy and also the ones who dont shop online are willing to shift their base from traditional shopping methods to online shopping. 2. ANALYSIS PHASE:While we were in the analysis phase we observed a few very interesting facts as to what benefits the online shopping portals provide or what they think about their online shopping portals.74% of online shoppers in our survey think that ecommerce comprehends consumers demand effectively and also 68% online
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shoppers think that online shopping provides them with broader choices and selections and it avails price transparency with fast transactions. 38% males and 37% females from online shoppers spend at least Rs.1000-2000. We also observed that 51% of males who shop online are using it since 1-3 years whereas females 53.5% use it since less than a year. 55% of males and 56% of females have switched from one website to other and the reasons were like lack of COD and not proper services and many were just wanted to try other websites out. Also the non-shoppers had some positive response towards online shopping as56% males and 59% females think that future of online shopping is good in India. 3. EDITING PHASE:Every information was to be checked before finalising the report, as we could not add each and every information because of restricted page limit and time . Also it was very difficult to clarify what information and data to be taken and to be neglected. We tried our level best to provide and show authentic data and hard work. All the members in our group had different ideas and way of working and we tried our best to sum it up.
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FINDINGS
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FINDINGS
We as students of BBA were quite happy with our topic as we could get knowledge of what are the current trends and situations going on in the market and what better topic could we get than consumer behaviour towards online shopping which is growing by leaps and bounds in Indian market. We had a base of 4 online shopping companies that were 1. Myntra.com 2. Jabong.com 3.E-bay.in 4. Flipkart.
It was great to go amidst the youth and the experienced lot and ask their reviews regarding the latest and happening thing in the market. We went face to face and had conversations with 200 persons and these were our samples and we filled up questionnaires from them and the data used in this project is because of them. One very good thing about this project is the challenge to decide between the 2 questions:Is online shopping better than traditional shopping? If there would not have been COD would the impression of online portals would have been same in a country like India? We got some punch lines from the persons whom we interviewed and most interesting were 2 punches one from online shoppers and other from non-online shopper:Why do people always believe what they cant see clearly and follow it blindly, there may be a pothole ahead but people dont understand and en d up in problem. This online portals are such a boon and save so much of my time that I can spend some good time with my family which I had to waste when I went shopping.
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FINDINGS IN ACCORDANCE TO OUR SURVEY
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According to our survey of 200 random people , we found out that 118 of them were regular online shoppers. Which is very good sign for the fast growing business portal of e-commerce. Of those 118 online shoppers 43 were female, which again is a positive thing and breaks the myth that females are afraid or dont intend to shop online much. The dominating age group of our survey boasts of a hefty 88% of males and 67.44% of females falling under the age group between18-30.While the weakest being above 50 age group with just 2.33% of persons shopping online that too female. The occupation group dominated by students with 56% of male shoppers and 62.8% female shoppers falling under this group, followed by 22.66% and 18.6% of male and females respectively which are employed. And 6.66% males and 16.28% females are professionals, while 14.68% of males are businessmen and 2.32% females are into business. In our survey, the myth of women being the more spendthrift is broken as the average expenditure on shopping made by men is more than women i.e. 4746.67 by men as compared to 4441.86 by women. The dominating group of expenses is 2000-5000 for 56% males and 44.19% females spending amount between 2000-5000. 100% people in our sample survey of 200 are aware of online shopping. The new idea of payment being launched i.e. C.O.D is getting great positive response from the buyers, 84% of males and same number of females consider C.O.D to be better than credit or debit cards. As they can see and try the products at home before paying. 100% males think that online shopping has increased over the years and the females also agree to the same with a positive number of 95.32%. 80% males and 83.72% females think that as there are no middlemen online shopping provides better marketing channel. The market share in e-commerce being dominated by B2C (business to client) with 76% males and62.8% females giving their vote to B2C.
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According to our survey, 69.33% males and 55.8% females think that future of ecommerce is very good, and remaining 30.67% of male and44.2% of females think that it is good. No shoppers think that future is bad for e-commerce. 51% males and 41.86% females think that online shopping is a status symbol. The most prominent domain is consumer goods ranked 1 in our survey.
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LIMITATIONS
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LIMITATIONS
Though it was a great experience in preparing this project along with great experience and learning that we got we also had to deal with a few limitations. TARGET COMPANIES:- There were not many online portals that we had to choose from we had to take the top 4 companies as our base as other portals were not much known. Only data that we could get was from the internet as no online shopping company has a head office in Ahmedabad. And also these 4 companies dont form 100% market which was the biggest limitation. FINANCIAL LIMITATIONS:- As the report was done by students we were not left with much of financial support and had to be within reach of our pockets and thus could not go on a larger scale to do full justice to the concept. Though we tried our best to do with the resources we had. SAMPLE SIZE:- As we were bound by the resources and time and also the instructions given by mentors, we had only 200 sample persons which dont form whole market and we had to conclude the report based on only 200 samples. LACK OF TIME:- Time that we could devote was less as the topic of research was such huge and vast and we could not find enough time to away as our base had to be Ahmedabad. LACK OF EXPERTISE:- Except for our project guide Mr.Saurin Shah and our honourable director Mrs.Rupal Shah we didnt have much expertise help from any of the companys side or outside. SECONDARY DATA:- As we had to heavily depend on the data published in newspaper and internet sources we had no other area of access to secondary data . As we could not travel to any of the head offices which are either based in Bangalore or Delhi, we were bound to take secondary data from internet and newspaper.
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SUGGESTIONS
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SUGGESTIONS
Increased Internet penetration, a hassle free shopping environment and high levels of Netsaviness see more and more Indians shopping online. But at the same time the companies need to reduce the risks related to consumer incompetence by tactics such as makingpurchase websites easier to navigate, and introducing Internet kiosk, computers and otheraids in stores. The goal is not to convert all shoppers to online purchasing, but to show them its an option. In addition to above, efforts need to be taken to ed ucate the online buyers on the steps that need to be undertaken while making an online purchase.Moreover, the feedback of an online buyer should be captured to identify flaws in servicedelivery. This can be done through online communities and blogs that serve asadvertising and marketing tools and a source of feedback for enterprises. We found that it is a challenge for E-marketers to convert low frequency online buyers into regular buyersthrough successful website design and by addressing concerns about reliableperformance. Thus, the online retailing raises more issues than the benefits it currentlyoffers. The quality of products offered online and procedures for service delivery are yetto be standardized. Till the same is done, the buyer is at a higher risk of frauds.
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CONCLUSIONS
The study entitiled Consumer behaviour towards online shopping has been undertaken with the objective, to analyse the consumer behaviour of people in Ahmedabad city towards online shopping. Analysis of the study was undertaken with the help of survey conducted. After analysis and interpretation of data it can be said that along with the whole world and whole country even a tier-2 city like Ahmedabad is also changing trends and also it is responding in a very positive manner towards the revolutionary change in methods of shopping. Not everyone wants to shift their bases but the people who find it feasible and helpful it is definitely a change to be happy about. The online shopping websites have found a strong base amongst youngsters and employed professionals who cannot spend hours in malls for shopping or who doesnot want to wait in a queue. And with the latest facility of Cash on Delivery and footstep delivery we can estimate a lot of consumer base to be shifted to online portals. From our survey we can say that Consumer is the king, and there are already many kings in the market who want their plates to be ready and served and there will be many more kings in future wanting the same to happen atleast the things that they find easier to access and helpful in time saving. Thus we found that there is a long way and great future for online shopping and the perception is also rapidly changing and the change is positive. Though many people think that it is a cool trend to shop online and many find it helpful what we conclude is that it is blend of both and that its future is bright and they will be keeping the red carpet ready for the customers waiting to shop.
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The Huffington Post Kotler and Armstrong Marketing Research 12th edition. Marketing Management by Kotler and Keller. The Times of India. Myntra.com. Flipkart.com. Jabong.com. Ebay.in Yahoo finance. Google finance help. Articles in print media. Indiaitlaw.com
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DECLARATION
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DECLARATION
We hereby declare that the grand project on the study of Consumer Behaviour towards Online Shopping is original to the best of our knowledge and has not been published elsewhere. This is for the award of degree of bachelors of business administration.
SR.NO. NAME
1 2 3 4 5 6 7 8 9 10 SIDDHARTH IYER RAJ JOISAR KEVAL AMRELIYA DHANRAJ SOLANKI DHAIRYAH MANEK AKASH GUPTA SANDEEP OJHA BHOOMI KOTADIA SIMPY HARWANI BINNY MACHCHHAR
ROLL NO.
47 55 05 145 78 43 86 66 45 71
SIGNATURE
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Report On Online Shopping

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L.J.

INSTITUTE OF BUSINESS ADMINISTRATION

L.J. INSTITUTE OF BUSINESS ADMINISTRATION

A PROJECT REPORT BASED ON

CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING (E-Shopping)

Project Guide, Prof. Saurin Shah

Submitted by : T.Y.B.B.A. (2012-13)

L.J. INSTITUTE OF BUSINESS ADMINISTRATION

Pg. No 5 6 7 8 10 12 13 23 33 34 37 43 47 69 84 86 87 93 98 102 108 116 117 136 151 158

Micro Information Myntra.com Flipkart.com Jabong.com Ebay.com

Survey Questionnaire Analysis of Questionnaire Shoppers Non-Shoppers

Research Methodology S.W.O.T Analysis

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Observations Findings Limitations Suggestions Conclusions Bibliography Declaration

163 166 171 173 175 177 178

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OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY

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HISTORY OF ONLINE SHOPPING

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HISTORY OF ONLINE SHOPPING

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This is how E-commerce started:-

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INCREASE IN INTERNET CONSUMPTION IN INDIA

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FACILITATORS OF E-COMMERCE IN INDIA

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E-COMMERCE AND COMPETITION

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