A STUDY ON CONSUMER ATTITUDE ON ONLINE SHOPPING WITH REFERENCE

TO DHARMAPURI

INTRODUCTION

Online consumers are always seeking new products, new attractiveness and the most
important thing being price compatibility with their budget. The internet is the best way to save
time and money through purchasing online within their range of budget at home or in anywhere.
Online consumers dont have limits to online shopping. They also use internet for comparison of
prices of goods and services, news, visit social networks and search information and so on.

Analyzing consumer behaviour is not a new phenomenon for scholars. Philip Cotler,
marketing expert, have studied on this topic. Theories about consumer behaviour have been used
to develop an effective marketing strategy. Moreover, it is impossible to think marketing without
the Internet in today's world. Online marketing is the topic that have been researched and made
applications many times by researcher from past to nowadays. Studies on online shopping
investigated the factors that influence online shopping as well as motives for, value of and
antecedents of online buying behaviour. As a result, the academic researchers and the business
world started to focus on the consumer side of the online purchasing behaviour and a lot of
researches and articles were prepared to make guidance for the development of online shopping.

Internet is changing the way consumers shop and buys goods and services, and has

rapidly evolved into a global phenomenon. Many companies have started using the Internet with

the aim of cutting marketing costs, thereby reducing the price of their products and services in

order to stay ahead in highly competitive markets. Companies also use the Internet to convey,

communicate and disseminate information, to sell the product, to take feedback and also to

conduct satisfaction surveys with customers.

Customers use the Internet not only to buy the product online, but also to compare prices,

product features and after sale service facilities they will receive if they purchase the

product from a particular store. Many experts are optimistic about the prospect of online

business.
 In addition to the tremendous potential of the E-commerce market, the Internet

provides a unique opportunity for companies to more efficiently reach existing and potential

customers. Although most of the revenue of online transactions comes from business-to-business

commerce, the practitioners of business-to-consumer commerce should not lose confidence. It

has been more than a decade since business-to- consumer E-commerce first evolved.

Scholars and practitioners of electronic commerce constantly strive to

gain an improved insight into consumer behavior in cyberspace. Along with the

development of E-retailing, researchers continue to explain E-consumers

behaviour from different perspectives. Many of their studies have posited new emergent factors

or assumptions that are based on the traditional models of consumer behaviour, and then examine

their validity in the Internet context.

Online shopping is definitely a great way to shop with everything available on the

websites. From clothes, gift items, food, home needs, medicines, and many more, this mode of

shopping allows one to shop conveniently without hassle on spending hours in a supermarket or

shopping areas. The Internet with its wide array of information nooks, allows the customer to go

through various reviews of the product or service before actually heading for purchases. These

online shopping websites also have daily deals for the customer looking for discounts and store

offerings.

The Internet has entered the mainstream consciousness over the past decade. This has

happened primarily because the web has got a graphical interface and Internet has moved from

governmental control to private hands. The activities which are happening on the Internet are

email and instant messaging, general web surfing or browsing, reading news, hobby searches,
entertainment searches, shopping and buying online, medical information searches, travel

information searches, tracking credit cards, and playing games.

Communication i.e. email, chat or instant message is the basic activity for which Internet

is used. It is the single most important reason for people to go online. E-mail provides the

opportunity to communicate more often with a much broader circle of people than one can reach

by telephone or by mail in a convenient way. In India too email constitutes the major activity on

the Internet. It was found that more elderly people are increasingly using email as compared to

the younger generations.

In India the top five online activities are e-mail, surfing, chatting, search and job search.

Some of the sites, which are commonly used for these particular activities, are:

Yahoo -Most preferred communication portal, tops for email and chat India times, Best

event and sports news provider:

1. Naukri-Best recruitment portal

2. Google-Best information domain
3. Shaadi-Best for matrimonial services
4. eBay-Best online shopping portal
5. Rapid growth of cybercafs across India
6. Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing. There are about 200 million of

middle-class population good spending powers. These people have very little time to spend for

shopping. Many of them have started to depend on internet to satisfy their shopping desires.

The figures from IAMAI show that the internet users in India will grow to 200 million by

2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the

26-35-year range.
 Indian online matrimonial sector is worth around $230 million.
Worldwide e-commerce is only growing at the rate of 28%, since India being a younger

market, the growth of e-commerce is expected at 51% in the coming years.

In line with global trends finally India has also started shopping online these days. As per

the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to

$522 million in 2008 and it is expected to rise above $700 million by end March 2010.
Indians are also Shopaholics like other Asians. There is a strong booming young adult

population in India with good levels of disposable income.

In India

Over $50 Billion and growing rapidly - Most popular online shopping products include:

books (45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%),

apparel (35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music

downloads (21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools (16%),

home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), etc.

Payments

Online shoppers commonly use a credit card to make payments, however some systems

enable users to create accounts and pay by alternative means, such as:

1. Billing to mobile phones and landlines

2. Cash on delivery (C.O.D., offered by very few online stores)
3. Cheque/ Check
4. Debit card
5. Direct debit in some countries
6. Electronic money of various types
7. Gift cards
8. Postal money order
9. Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the purchaser's

billing address and shipping address to be in the same country in which site does its business,

and still other sites allow customers from anywhere to send gifts anywhere. The financial part of
a transaction might be processed in real time (for example, letting the consumer know their credit

card was declined before they log off), or might be done later as part of the fulfillment process.

NEED FOR THE STUDY

In recent years, online shopping has become very popular. The growth of technology has

made these a part and parcel of everyday lifestyle. The advent of plastic money or the debit

/credit card and the smooth access to the World Wide Web has brought the shops from around the

world to the desktop. We personally have seen many of our friends surfing through various

online shopping sites and purchasing things. Student community has become so strong that even

the parents seek the help and advice of their children before conducting big purchases. This is

solely because of their exposure to web and social media. Moreover, while it comes to personal

purchases, students are very particular that they get best products available in the market and

seek all the possible ways to secure the best products. This is where the role of online shopping

sites emerges. Students who are well versed in the use of internet and active in social media,

know about online markets and have tried at least some of them.

The study is very relevant because it can give a clear picture of the future of online

markets in India and the emerging trends in this particular field. The various factors that

influence online shopping habits and its merits and demerits are also dealt with.The study also

tries to have a comparison of online shopping habits among different age group as well as

income group.

STATEMENT OF THE PROBLEM

Key to Online success is an understanding of customers' online perception, preferences

and concerns. Proper profiling and monitoring of customers are of critical importance to enable

the marketer to convert "browsers" into "shoppers" and more importantly into regular shoppers.
Understanding customer needs and wants significantly enhances the chance for success in the

Internet environment. If marketers don't understand the needs of their customers, it will be

difficult to know where to focus their energy, effort and capital. It could also lead to

organisations having to make significant (often expensive) changes to Websites after the launch

thereof.

OBJECTIVE OF THE STUDY

1. To know the consumers awareness and perception about the products and services

provided on internet.
2. To know how it provides products and services and satisfies their customers.
3. To analyse the consumer interest on online marketing.
4. To determine the factors affecting online buying.
5. To evaluate the growth of online marketing.

RESEARCH METHODOLOGY

Research methodology is a purely and simply the framework or a plans for the study that

guides the collection and analysis of data. Research is the scientific way to solve the problems

and its increasingly used to improve market potential. This involves exploring the possible

methods, one by one, and arriving at the best solution, considering the resources at the disposal

of research.

RESEARCH DESIGN

A research design is the specification of methods and procedure for acquiring the

information needed. It is the over all operation patterns or framework of the project that

stipulates what information is to be collected from which source by what procedure it is also the

blue print of the research process.

Data Collection Method

Primary Data

It is original primary data, for specific purpose of research project. For this project, I have

to use following common research instrument or tool.

Questionnaire

Questionnaire development is the critical part of primary data collection method. For this

I will prepare a questionnaire in such a way that it will be able to collect all relevant information

regarding the project. The questionnaire was designed using various scaling techniques. The

questionnaire was used mainly to test the model proposed for consumer perception towards

online shopping. This was done by going directly to the respondents or through mails.

Secondary Data

It will be collected to add the value to the primary data. This may be used to collect

necessary data and records by different websites, magazines, annual reports, journals, reference

books, and newspapers, etc.

Sample Design

Sample Unit

For studying customer perception on online shopping, samples were selected from

Dharmapuri District.

Sample Media

The respondents in the samples are reached through personal interviews.

Sampling Methods

Sampling methods fall under two broad categories-

1. Non-probability sampling methods.

2. Probability sampling methods.

Sample size
 Sample size taken for this study is totally 100 respondents.

Sample Design

I have prepared this project as descriptive type, as the objective of the study.

TOOLS USED FOR STUDY

Collected data were tabulated for this study. Statistical tool used for analysis is percentage

method, Chi Square.

PERCENTAGE ANALYSIS

Percentage Analysis is a simple method that converts the whole data to an answer against

hundred. The Formula used is as follows:

No of respondents * 100 / total no of Respondents

CHI-SQUARE

Chi-Square Test is a useful measure of comparing experimentally obtained results with those

expected theoretically and based on hypothesis that provides a set of theoretical frequencies with

which observed frequencies are compared. The measure of chi-square enable us to find out the

degree of discrepancy between observed discrepancy so obtained between observed frequencies

and theoretical frequencies is due to error of sampling or due to change.

CHI-Square = (Oi-Ei) / Ei

SCOPE OF THE STUDY

The theoretical scope of the study includes the popularity of online shopping, the need of

virtual markets, their role in influencing the consumption pattern and habits, merits and demerits

of e-markets, major players in online retailing etc.

We can listed the scope as below:

 1. The Study was conducted among the Internet users.

2. The Geographical area covered was Dharmapuri district.

3. The Study was based on a Schedule of Questions.

4. The scope of internet shopping

LIMITATIONS OF THE STUDY

1. Lack of environmental support for the study on the topic.

2. Less sample size, as it is just survey with 100 respondents.
3. Basically based on primary data, hence we cannot argue that the research is

applicable in each condition, time& place.

4. Short time duration, with in such short span of time it is too much difficult to

analyse the topic.

5. Lack of customer support, while asking the consumer they were behaving

rudely and not responding to the questions.

REVIEW OF LITRETURE

Rajeev Kamineni (2004) in his study finds that World Wide Web can change human

behaviour and human interactions to a very large extent. Web based shopping behaviour is one

major example to point out the trends in this direction. This study is of a very exploratory nature

and it intends to establish the differences between several web-based shoppers from different

parts of the world. Several critical factors associated with online shopping behaviour have been

explored. A cross cultural data set has been collected and an illustrative description of the

shoppers has been provided. As a final step the cross cultural differences between several

shoppers explored.
 ArchanaShrivastava, UjwalLanjewar, (2011) in online buying, the rate of diffusion and

adoption of the online buying amongst consumers is still relatively low in India. In view of

above problem an empirical study of online buying behavior was undertaken. Based on literature

review, four predominant psychographic parameters namely attitude, motivation, personality and

trust were studied with respect to online buying. The online buying decision process models

based on all the four parameters were designed after statistical analysis. These models were

integrated with business intelligence, knowledge management and data mining to design

Behavioral Business Intelligence framework with a cohesive view of online buyer behavior.

J.SINHA (2010) The number of people engaged in various online activities is increasing

every day. While the number of online shoppers is increasing, it is not proportional to that of

brick-and-mortar shoppers. Research has tried to explain the dismal performance of online

shopping as compared to the physical shopping format. Reasons for the lower level of Internet

sales have been cited as being perceived risk in carrying out an online transaction, socio-

psychological factors (Like - influence of friends and relatives) and infrastructural limitations

(Availability of Internet, computers, credit-cards, cyber laws etc.). Under the purview of

aforementioned factors this study tried understanding the online shopping behavior of Indian

consumers. Socio-psychological factors and infrastructure have been found influential factors

while the perceived risk surprisingly is not significant as a whole but at gender level there was

significant difference between the online behavior of male and female due to risk perception.

MoezLimayem, (2002) The topic of online consumer behavior has been examined under

various contexts over the years. Although researchers from a variety of business disciplines have

made significant progress over the past few years, the scope of these studies is rather broad, the

studies appear relatively fragmented and no unifying theoretical model is found in this research
area. In view of this, provide an exhaustive review of the literature and propose a research

framework with three key building blocks (intention, adoption, and continuance) so as to analyze

the online consumer behavior in a systematic way. This proposed framework not only provides

us with a cohesive view of online consumer behavior, but also serves as a salient guideline for

researchers in this area.

Burke, R.R. (2002), Trust is a key factor that determines the success of Business to

Consumer (B2C) e-commerce transactions. Previous researchers have identified several critical

factors that influence trust in the context of online shopping. This research focuses on available

security measures which assure online shoppers safety and great sales promotions and online

deals which stimulate customers to shop online.

Abel Stephen (2003) in his paper represents the findings of research studies that address

e-commerce design and associated consumer behavior. The innovation of e-commerce has

affected not only the marketplace through the facilitation of the exchange of goods and services,

but also human behavior in response to the mechanisms of online services. Researchers have

identified and hypothesized on relevant subject matters ranging from Web usability, marketing

channels and other factors influencing online buying behavior. Though researchers have focused

on what appear different aspects of online buying behavior, their studies may be shown to be

interrelated and interdependent, even to the extent of revealing constructs upon which e-

commerce, in terms of future design and research, could be built.

REVIEW OF LITERATURE

Dr. Seema Agarwal, A STUDY OF FACTORS AFFECTING ONLINE SHOPPING

 BEHAVIOUR OF CONSUMERS IN MUMBAI REGION; Tactful Management

Research Journal, (ISSN: 2319-7943)

The increasing use of internet by the younger generation in India, provides an emerging

prospect for online retailers. If online retailers know the factors affecting Indian consumer's

buying behaviour, the association between these factors and type of online buyers, then they can

further develop their marketing strategies to convert potential customers into active ones. This

study attempts to analyze the features related to the shopping behaviour of online shoppers.

Consumer's shopping behaviour in respect of online shopping was studied using different socio-

economic variables. The data was collected through questionnaire.

The results of study revealed that online shopping in India is significantly affected by

various demographic factors like age, gender, education and income. Further it also helps

retailers to understand the drivers of consumer's attitude and goal to shop on the internet and

consumer's perceptions regarding ease of use and usefulness. Conclusions derived from the

analysis can be used as useful guide for market orientation. The outcomes of the study suggest

that assessment of consumer's shopping behaviour can contribute to a better understanding of

consumer shopping behaviour in respect of online shopping.

Prof. Sanjeev Kumar & Savita Maan, December 2014, STATUS AND SCOPE OF

ONLINE SHOPPING: AN INTERACTIVE ANALYSIS THROUGH LITERATURE

 REVIEW; International Journal of Advance Research in Computer Science and

Management Studies (Volume 2, Issue 12, ISSN: 232 7782)

Online Shopping is a current phenomenon which has developed a great importance in the

modern business environment. The evolution of online shopping has opened the door of

opportunity to exploit and provide a competitive advantage over firms. This paper analyzed the

different issue of online shopping. The research aims to provide theoretical contribution in

understanding the present status of online shopping and explores the factors that affecting the

online shopping. The Study provides insights into consumers online

Page | 25

shopping behaviors and preferences. Moreover, paper also identify the hurdles that

customers face when they want to adopt internet shopping as their main shopping medium.

Present study is a descriptive study based on the detailed review of earlier relevant

studies related to the various concepts of online shopping to explore the concept of online

shopping.

Findings reveled that online shopping brings optimum convenience to the consumers.

Privacy and security risk emerges frequently as a reason for being wary about internet shopping.

Shopping convenience, immediate possession, information seeking, social interaction, and

variety affects the consumer attitude towards online shopping. The impossibility of product

testing, problems with complaints, product return and misuse of personal data are the main

uncertainties regarding on-line shopping.

Zia Ul Haq, PERCEPTION TOWARDS ONLINE SHOPPING: AN EMPIRICAL

STUDY OF INDIAN CONSUMERS; National Monthly Refereed Journal Of Research In

Commerce & Management (Volume No.1, Issue No.8, ISSN 2277-1166)

In this study four key dimensions of online shopping as perceived by consumers in India

are identified and the different demographic factors are also studied which are the primary basis

of market segmentation for retailers. It was discovered that overall website quality, commitment

factor, customer service and security are the four key factors which influence consumers

perceptions of online shopping. the study revealed that the perception of online shoppers is

independent of their age and gender but not independent of their education & gender and income

& gender Finally, the recommendations presented in this research may help foster growth of

Indian online retailing in future.

The result of our study showed that the perception of online shoppers is independent of

their age and gender but not independent of their qualification & gender and and income &

gender The analytical results of our study further indicate relationships between consumers

perceptions of the factors that influence their intention to buy through online. More specifically,

consumers perceptions of the customer service, commitment and web security of online

purchasing exhibit significant relationships with their online buying intention.

 Page | 26

Prof. Ashish Bhatt, June 2014, CONSUMER ATTITUDE TOWARDS ONLINE

SHOPPING IN SELECTED REGIONS OF GUJARAT; Journal of Marketing Management,

(Volume 2, No. 2, pp. 29-56, ISSN: 2333-6099)

The growing use of Internet in India provides a developing prospect for online shopping.

If E-marketers know the factors affecting online Indian behavior, and the relationships between

these factors and the type of online buyers, then they can further develop their marketing

strategies to convert potential customers into active ones, while retaining existing online

customers. Companies also use the Internet to convey, communicate and disseminate

information, to sell the product, to take feedback and also to conduct satisfaction surveys with

customers. Customers use the Internet not only to buy the product online, but also to compare

prices, product features and after sale service facilities they will receive if they purchased the

product from particular website. This paper focuses on factors which online Indian buyers keep

in mind while shopping online.

Findings states that information; perceived usefulness, perceived enjoyment and

security/privacy are the five dominant factors which influence consumer perceptions on online

purchasing.
 Ms. Dipti Jain, Ms. Sonia Goswami, Ms. Shipra Bhutani,

Sepember 2014,

CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING: AN EMPIRICAL

STUDY FROM DELHI; IOSR Journal of Business and Management (IOSR-JBM) (Volume 16,

Issue 9.Version IV, ISSN: 2278-487X)

In this study four dimensions of online shopping as perceived by consumers in India are

identified and the different demographic factors are also studied which are the primary basis of

market segmentation for retailers. The main objective of this research is to study the impact of

Perceived Risk, Perceived enjoyment, Perceived usefulness and Perceived ease of use factors on

online shopping behavior of consumers in Delhi. The population of this research consisted of

online shoppers from Delhi.

The empirical results revealed that only one factor, namely Perceived Risk significantly

affected online shopping behavior of consumers in Delhi while Perceived enjoyment, Perceived

ease of use and Perceived enjoyment hinders the consumers to shop online so

Page | 27

the researchers suggests that the companies must focus on Perceived risks to develop

consumers trust towards online shopping. The recommendations presented in this research may
help foster growth of Indian online retailing in future. The research findings revealed that

perceived risk negatively impact consumers attitude towards online shopping while perceived

usefulness, perceived ease of use and perceived enjoyment has no impact on consumers attitude

towards online shopping.

Dr. M. Rajesh & G. Purushothaman, DECEMBER 2013

CONSUMER

PERCEPTION TOWARDS ONLINE SHOPPING IN KANCHIPURAM; GALAXY

International Interdisciplinary Research Journal (Volume 1 (2), ISSN 2347-6915)

This research revealed that consumer buys goods from the online shopping website on

the basis of factors like offers and discounts, variety of product available, free home delivery,

website user friendliness. Analysis showed that most of the respondent would agree to buy

durable goods online rather than shopping of durable goods with the traditional method. Out of

the agreed respondent to buy online durable goods, most of the respondent would think that it

would be beneficial to shop durable goods online on the basis of factors like easy to order,

variety, discounts/ offers, saves time and avoid long queues. With above analysis we can thus

prove the hypothesis to be positive.

Radhe Jha, CONSUMERS PERCEPTION ON ONLINE

SHOPPING; A
 DISSERTATION REPORT

The growing use of Internet in India provides a developing prospect for online shopping.

If E-marketers know the factors affecting online Indian behavior, and the relationships between

these factors and the type of online buyers, and then they can further develop their marketing

strategies to convert potential customers into active ones, while retaining existent online

customers. This project is a part of study, and focuses on factors which online Indian buyers keep

in mind while shopping online.

This research found that information, perceived usefulness; ease of use; perceived

enjoyment and security/privacy are the five dominant factors, which influence consumer

perceptions of online purchasing. Increased Internet penetration, a hassle free shopping

environment and high levels of Net savviness see more and more Indians shopping online.

Page | 28

Dr. Payal Upadhyay & Jasvinder Kaur, ANALYSIS OF ONLINE SHOPPING

BEHAVIOR OF CUSTOMER IN KOTA CITY, International Journal in Multidisciplinary and

Academic Research, (Vol. 2, No. 1, ISSN 2278 5973)

If companies analyses the factors affecting consumer behavior towards online shopping

and the relationships between these factors and the type of online buyers, then they can devise
effective marketing strategies to convert potential customers into active ones, while retaining

existing online customers. This project is a part of study, and focuses on factors which online

Indian buyers keep in mind while shopping online.

This research found that information, perceived usefulness, ease of use; perceived

enjoyment and security/privacy are the five dominant factors which influence consumer

perceptions of online purchasing. The most preferred product of online buying is travelling

tickets and clothing remains the least preferred choice of online shoppers. Among the payment

options, Payment on delivery through cash in the safest choice of payment, while credit card are

next preferred choice, online bank transfer is least preference choice. Online shoppers seek for

clear information about product and service, time saving, convenience, security and delivery on

time are all important factor for online shopping. The offers with punch lines Attractive offers

do not attract online shoppers. Most of the consumers who have experienced online shopping are

very satisfied.

Dr. Renuka Sharma, Dr. Kiran Mehta, Shashank Sharma , July - Sept 2014

UNDERSTANDINGONLINE SHOPPING BEHAVIOUR OF INDIAN

SHOPPERS; INTERNATIONAL JOURNAL OF MANAGEMENT AND BUSINESS

STUDIES(IJMBS), (Vol. 4, Issue 3, ISSN : 2230-9519)

 The growth rate of Indias e-commerce industry is fascinating. It was reported as 88% in

2013 which is a clear contrast picture of the slower economic growth of India. The rising

inflation rate in recent years has not slipped away the performance of online shopping industry in

India. Companies are using the internet to put across and commune the information.

Simultaneously it helps the companies to give an idea about their products and instantly getting

the feedback of customers fulfillment to get stimulated turnover for future. The primary

objective of the current study is to understand the online buying

Page | 29

behaviour of consumers in India. It has also made an attempt to get information about the

scope of improvement in online shopping website.

Results revealed that there is clear indication of increasing significance of online stores in

the life of Indian people. The e-stores are frequently visited by the shoppers. The ease and

convenience provided by these stores for 24x7 has made very easy shopping for consumers

worldwide. The analysis discussed in the above section has documented that the Indian

customers are also getting addicted to the online shopping and they do like various features of

online shopping as by rest of the world. But the statistics available has shown that Indian market

is still not a fully developed market for e-tail stores. There is huge scope of web-stores in various

areas and in almost all the segments. The young population is the biggest attraction of this

industry and they may contribute substantially to the growth of online shopping in India. The
majority of internet users are youngsters, the majority of goods and services demanded are

related to only this segment.

Md. Mahbubur Rahaman, 2014, ON-LINE SHOPPING TRENDS, PATTERNS AND

PREFERENCES OF UNIVERSITY UNDERGRADUATE STUDENTS: A SURVEY

STUDY ON SYLHET REGION; Global Disclosure of Economics and Business,

(Volume 3, No 2, ISSN 2305-9168)

This paper consists of the groundwork with a brief introduction of recent trends in e-

commerce on people of Bangladesh; particularly its impact on university undergraduate students

in Sylhet region. This has been followed by their general perceptions and preferences of the

online shopping including products and website selection. Each of these e-commerce

characteristic is compared to information combined from survey questions and open-ended

discussions with a small sample group of university students at undergraduate level in Sylhet

region. It also investigates into positive as well as negative website characteristics and sum up

the favorable elements into a description of an e-commerce website that would suitable to the

group being studied.

Research revealed that people are trying to familiar and habituated with online shopping.

But the internet infrastructure and socio-economic condition of Bangladesh does not allow the e-

tailers as well as the actual and potential customers to remain and become optimistic
 Page | 30

about the new business concept of e-commerce. Also, the dependency of students is

another constrain. By looking at what students want and their satisfaction levels some established

e-tailers such as Cell Bazaar and Bikroy.com have been invested significant resources in this

sector. Perhaps it would be useful for Cell Bazaar and Bikroy.com in Bangladeshi perspective to

imitate some of the worlds established e-tailers such as Amazon, eBay and others to maintain

large numbers of students as their customer.

Ms. Asmatara Khan, March, 2015, FACTORS AFFECTING ON-LINE SHOPPERS

BEHAVIOR FOR ELECTRONIC GOODS PURCHASING IN

MUMBAI: AN

EMPIRICAL STUDY; International Journal in Management and Social Science, (Vol.03

Issue-03, ISSN: 2321-1784)

This paper had analyzed factors affecting on online shopping behavior of consumers that

might be one of the most important issues of e-commerce and marketing field. However, there is

very limited knowledge about online consumer behavior because it is a complicated

sociotechnical phenomenon and involves too many factors. This goal has been followed by using
a model examining the impact of perceived risks, motivational factors and return policy on

attitude toward online shopping behavior and subjective norms, perceived behavioral control,

domain specific innovativeness and attitude on online shopping behavior as the hypotheses of

study. This study identifies the following implications.

The results and findings of this study revealed retail companies should start taking

measures to eliminate risk factor and build trust in this form of retail. The retail managers should

sway consumers through different platforms like social networking sites, ads, promotions, online

only discounts etc. to let people cross the threshold and start buying because Indian consumers

are still comfortable with brick and mortar format as they appreciate friendly approach of

salesman and social element of shopping, which has been found as important element in

shopping .

Ojaswita Shrivastava, 2014, TO STUDY THE REASONS FOR

CUSTOMER

ABANDONING THEIRON-LINE SHOPPING CART BEFORE

PURCHASE

Page | 31
 COMPLETION STAGE; The International Journal Of Engineering And Science,

(Volume 3 Issue 2, ISSN (e): 2319 1813 ISSN)

E-tailers spend enormous amount of time, effort and energy and resources to market and

sell their products and services to their consumers. They engage in activities such as

segmentation, targeting, positioning and use the four Ps to ensure that the consumers select their

products and services from a shelf full of competing products. The perceived transaction

inconvenience is the major predictor of shopping cart abandonment. The other predictors are

perceived risks and perceived waiting time. While marketing literature is replete with

investigations focusing on virtually every aspect of consumer and shopping behavior, little

academic research focus has been directed towards understanding why consumer abandon a

shopping cart towards the end, after they have selected the product.

The study examines the unexplored area of consumer behavior at the final stages of

transaction culmination and hence is an initial step towards filling that gap.

Ajeet Singh Karan Singh Shahazad M.H Khan, Manik Chandra, March 2012, A

REVIEW: SECURE PAYMENT SYSTEM FOR ELECTRONIC TRANSACTION;

International Journal of Advanced Research in Computer Science and Software Engineering,

(Volume 2, Issue 3, ISSN: 2277 128X)

 Electronic commerce involves the exchange of some form of money for goods and

services over the Internet but today, Internet is an insecure and unreliable media. The asymmetric

key cryptosystem Methodology with help of Security Protocol, secure communication tunnel

techniques can protect conventional transaction data such as account numbers, amount and other

information.

The results of this paper showed that a secure electronic payment system for Internet

transaction. The electronic payment system is to be secure for Internet transaction participants

such as Payment gateway server, Bank sever and Merchant server. The security architecture of

the system is designed by using Many Security Protocols and techniques, which eliminates the

fraud that occurs today with stolen credit card/debit card payment information and customer

information.

Dr. Shuchi Singhal Shashi Shekhawat, April June 2015, ONLINE AND OFFLINE

CONSUMER BUYING BEHAVIOUR: A LITERATURE REVIEW; Pezzottaite Journals,

(Volume 4, Number 2, ISSN (Print):2279-0977)

Consumer buying behaviour is the figure total of a consumer's outlooks, likings, purposes

and decisions at the time of purchasing any product or services. Many researchers have done

various types of studies in online and offline consumer buying behaviour. The purpose of the

paper is to provide a comprehensive review of extensive literature of previous studies since 1999

till date. The study of various literatures for last fifteen years, led to the extraction of various
factors affecting online purchasing of various products and services. The most motivating factors

have been identified which encourage consumers to shop online.

The study unveiled the various resisting factors, which act as barrier and divert the

consumers towards traditional buying mechanism. Online shopping involves no travel, product

carrying or restrictions on shopping hours, offering easy accessibility, convenience and time

saving. In contrast, offline shopping permits and allows physical examination of the products,

interpersonal communication but involves high travel and search costs, and also has restrictions

on shopping hours. Consumers may use the two channels differently resulting the same

consumers may exhibit different behaviors when shopping across online and offline channels.

Therefore, it is important to understand how the same consumers behave at the two channels.

This study attempts to provide an exhaustive review of prior theoretical literature of online vs.

offline consumer behavior.

Dr. Abdul Baji1 and N. D Chandra Sekhar, October 2013, CONSUMER BEHAVIOR

TOWARDS BUYING OF ELECTRONIC GOODS; International Monthly Refereed Journal of

Research In Management & Technology, (Volume 2, ISSN 2320-0073)

Despite the basic characteristics of consumers the behavior pattern of consumers are

more or less similar to each other, particularly in the aspects like quality, preference and decision

making. However it is evident that the present approaches to draw the attention of customers are

not adequate.
 Results showed that the consumers are particular about the appropriate system of

distribution and hence there is a great need for change in the distribution system. It may not be

always correct to say that consumers behave in the same way as it much depends on type of

products, quality of the products and price of the products. Therefore the producer must be paid

special attention at least with regard to price and distribution system to cover the large number of

customers. This is mainly because of the fact that the buying capacity of the consumers may not

be equal to the buying capacity.

Upasana Kanchan, Naveen Kumar and Abhishek Gupta, August 2015, A STUDY

OF ONLINE PURCHASE BEHAVIOUR OF CUSTOMERS IN INDIA; ICTACT

JOURNAL ON MANAGEMENT STUDIES, (Volume: 01, ISSN: 2395-1664)

The purpose of this study is to understand and analyze the factors effecting online

purchase decisions of Indian customer. The questionnaire contained questions about consumer

demographics, security and privacy concerns, technological familiarity, past online shopping

experiences and intentions to buy various types of products through internet in future. The

findings of the study indicate that customer online purchase intentions are significantly related to

their gender, education, age, security concern, technological familiarity, and past online purchase

frequency. The data was collected through survey of 200 students of graduation and post-

graduation courses in Bareilly region of Uttar Pradesh.

 The paper identified that the determinants of online purchase intentions of youths in

Indian context. Based on extensive literature review, factors effecting online purchase intentions,

antecedents of service quality and consumer attitudes were identified and a structured-non-

disguised questionnaire was prepared. Consumer buying behavior is also affected by product

type, purchase frequency and expensiveness. Their purchase decisions are also found to be

related with the online retailers services like return, refund and delivery services.

Monisha Singh, Saurab Dhanothia, Ayush Agarwal, Deepa V. Jose, February 2015

ONLINE SHOPPING BEHAVIOUR: AN EFFECTIVE APPROACH; International

Journal of Advanced Research in Computer Science and Software Engineering, (Volume 5, Issue

2, ISSN: 2277 128X)

The online marketing space is in constant shift as new technologies, services, and

marketing tactics gain popularity. Understanding shifts in consumer behaviour gives insights into

the demands of the market. Knowing these things enables marketers to drop certain products or

make strategic changes in pricing that will result in big gains or, at the very least, limit damage to

profits. This paper focuses on one such strategy which can be implemented to meet the demands

of the dynamic market.

The results of this study showed that there are many different segments available for

online stores, which are effected by constant evolutions. To meet the new challenges and

requirements of the market, the business owners need to think and make better decisions. Having

access to statistical information from all areas of online marketing and sales activities gives an
advantage over competitors that do not have this information. To meet the requirements of the

customers, the business strategy always comes up with a new idea. This is one such idea through

which customers can not only buy a new product through ecommerce websites, but also go for

exchanging old products.

Prashant Singh, February 2014, CONSUMERS BUYING BEHAVIOUR TOWARDS

ONLINE SHOPPING A CASE STUDY OF FLIPKART.COM USERS IN LUCKNOW

CITY; National Monthly Refereed Journal of Research In Commerce & Management, (Volume

3, ISSN 2277-1166)

The purpose of this study is to examine and analyse the consumers buying behavioural

pattern towards online shopping (specially in case of flipkart.com users in Lucknow city). Also

tried to find out various attitudes of flipkart users of Lucknow city towards the online shopping.

For this study survey was conducted during 1 st Sep. to 28th Oct. 2013. The data will be

collected from respondents through a scheduled containing questions. The study result concluded

that future of e-tailers in India specially in cities looking very bright. Flipkart.com offering best

prices, good products and completely hassle-free shopping experience for our customers. The

success of any e-tailer company in India is depending upon its popularity, its branding image, its

unique & fair policies, and its customer relations etc.

Pradeep Kumar Tiwari, April 2013, ONLINE SHOPPING BEHAVIOUR

 This research shows that online shopping is having very bright future in India. Perception

towards online shopping is getting better in India. With the use of internet, consumers can shop

anywhere, anything and anytime with easy and safe payment options. Consumers can do

comparison shopping between products, as well as, online stores. This study is mainly focus on

the factors from the Internet and examines those factors that affect the consumers online

shopping behaviours. The research focus on the Internet shopping (include the nature of Internet

shopping, E-commerce website, and online security, privacy, trust and trustworthiness) and

online consumer behaviours (include background, shopping motivation and decision making

process). Those factors were looked at, and examined to reveal the influence at online consumer

behaviours. In addition, the previous researches were used to help researchers understanding

more comprehensively. Moreover, the customers purchase decision making process was also

examined to identify the potential factors. The information search is the most important factor

that helps the customers find the suitable products or services for their needs.

Ruchi Nayyar, S. L Gupta, 2011 Determinants of Internet Buying Behavior in India;

Asian Journal of Business Research, (Volume 1 Number 2)

The aim of this research is to provide a view of the various demographic and

psychographic factors influencing consumers willingness to purchase online. A new model

based on Technology
 Acceptance Model (TAM) has been developed for the purpose of this research which

incorporates consumer demographic factors and Perceived risk along with other TAM variables

to explain the consumer acceptance of online shopping.

The findings of this study have revealed a higher number of male internet shoppers than

females. The results are in consistence with the literature review. Men adopt computer

technology much faster than females. In comparison to females, males are more prone to

participate in internet activities predominantly emailing, information search or downloading and

purchasing activities. Females exhibit a higher degree of computer nervousness and techno stress

than males. Age has also been found to have an influence on internet retailing adoption. Internet

usage has not diffused uniformly amongst all age groups, hence the difference in attitude towards

online

AN OVERVIEW OF THE STUDY AREA

ONLINE SHOPPING IN INDIA

The e-commerce industry in India is still in its early stages of development. Online

shopping in India is growing fast, aided by the fact that the number of Indians with access to fast

broadband internet and smart phones is increasing by leaps and bounds every year. Theres been

a massive increase in the use of the Internet and this is expected to continue over the next 4-5

years as well.

As we begin 2016, it makes us very happy to say that there were over 400 million internet

users in India. The Government of Indias Digital India initiative is meeting a lot of success.

Other initiatives, such as Googles Project Loon are expected to help as well. Talks are on to

launch Project Loon in India, which should deliver fast and affordable internet to more people.
 Today, online shopping in India is huge. According to an estimate 14% of Indias

population buys online on a regular basis. Now, 14% may not seem to be something you would

want to boast about at first glance, but when you consider that Indias population is 1.3 billion,

well, the number of online shoppers in India is equal to half of the US population and thats a big

deal indeed!

Three companies that have taken the greatest advantage of the new boom in online

shopping in India are Flipkart, Amazon and Snapdeal. There are thousands of other players in the

online retail industry as well, but none as big as the top-3 of Indian eCommerce, who have

invested billions of dollars in the country.

Indeed, the online shopping industry in India is expected to clock a compounded annual

growth rate of 35%. It is expected to cross the $100 billion mark by 2020, up from the $17

billion that it is worth today, according to a study by Assocham-Pricewaterhouse Coopers study.

The momentum of the e-commerce sector has been so strong that shopping malls in India

have been a huge casualty of this. Theres a vacancy rate of 25% in shopping malls across India

and rentals have dropped by over 30% in just 1 year. Its even worse in countries with a more

advanced online retail industry such as the U.S. and the U.K., where the vacancy rate in

shopping malls is 46% and 32% respectively.

As Assoc ham Secretary General D S Rawat, Online shopping has shown a handsome

growth while brick-and-mortar malls are witnessing a slowdown. The growth in e-commerce

looks impressive because of a low base and rising penetration of the Internet.

Indeed, over the next 15 years, 45% of the malls in India will be converted into non-retail

space and replaced by movie theatres, restaurants, discount retailers and so on, according to the

study by Assocham-Price water house Coopers.

 As fast broadband internet becomes accessible to more people India, the online retail

industry is only expected to grow further in size. It is expected that over the next few years, more

people in rural India will have access to the Internet. Rural internet users will rise from 29% of

total internet users in the country in 2013 to around 40% to 50% by 2018.

This is great news because Internet in India has so far been a largely urban phenomenon.

As more people in rural India take to the Internet, we expect online retailers in the country

modify their business models slightly so as to make rural India a part of their growth strategy as

well. Theres a lot of hidden potential here, which is waiting to be explored.

Some of the roadblocks along the way are that internet speeds are not uniform

everywhere in India or across ISPs. If you feel your internet speed is not as high as promised by

your ISP, check it out at DoSpeedTest.com, the most accurate internet broadband speed checking

tool that you will find online. Follow the tips given here on how to increase your internet

broadband speed as well.

At CouponClue.com, we play a tiny but significant role in making your online shopping

experience easier as well, which is something that gives us a lot of pride. amazon coupons from

CouponClue.com is a site that is dedicated to finding and posting the very best and most

affordable coupon codes, so that you can get everything you want at the lowest possible cost.

MAIN PLAYERS IN INDIAN ONLINE SHOPPING

Flipkart.Com

Flipkart.com is an e-commerce website founded by Sachin Bansal and Binny Bansal in

2007. Both are from IIT Delhi Alumni and also worked in Amazon.com.

Flipkart.com ranks #502 in world according to Alexa traffic rankings. In Google page it

ranks #6. It forms advertising revenue of $4.8 million. It receives 2.2 million page views in a day
and generates $6,574 in advertising revenue every day. Moreover it has certain losses 0.60% in

traffic ranking. Loading time of an average page is 2.1 sec as it is much faster than 29% of sites

around the world. The mode o f payments include Credit card, Debit card, Net banking, e-gift

vouchers, cash on delivery.

eBay

eBay is an online shopping website a consumer to consumer corporation which helps the

people and businessman to buy and sell products worldwide. It is operated to almost 30

countries.

eBay ranks #544 among Alex a traffic ranking. In Google it has page rank #6. The

advertising revenue inculcated was about $4.4 Million. Moreover it receives 2 million page

views per day which generates $6,066 in the advertisement revenue. Recently it has show n

15.13% growth in traffic rank. The page loading time is up to 2 sec which is likely faster than 24

% sites across the world.

Snapdeal

Snapdeal deals with online marketing of products including Mobiles, Electronics,

Fashion accessories, Apparel, Footwe ar, Kids, Home and Kitchen, Sports, Books; a nd services

like Restaurants, Spas & Entertainment. It was launched by KunalBahl, a Wharton graduate and

RohitBansal, alumnus of IIT Delhi, in February 2010.

Yebhi.com

It is an online shopping com merce for Home; Lifestyle & Fashion e-retailer founded in

2009 BigShoeBazaar.com has a user base of about 1.5 million people. Yebhi.com offers lifestyle

& Home products and products from a range of some 250 brands to its customers dealing in
Shoes, Apparels, Bags, Mobiles, Cameras, Sunglasses, Watches, Home furnishing, Home decor,

Home ware, Lingerie an d Fragrances.

It ranks #1,782 among Alexa traffic ranking. It ranks #4 in Google page r anking.

Advertising revenue is about $1.4 million. It receives 617,284 page views per day gene rating

$1,852 in advertising revenue. It has re cently shown 6.70 Growth among traffic ranking. The

page loading is about 2 sec which is faster than 39% of sites around the world.

Amazon.in

The International giant eCommerce retailer recently stepped into India with a Indian

version site www.amazo n.in, since the launch, amazon.in has se en a nice growth in the number

of custome rs. Amazon.com too had a huge number of Indian customers even before it launched

store in India. The store hosts wide range of products like Electronics, Mobiles, Laptops, Books,

Fashion, Jewellery, Kitchen ware and more

Shopclues.com

A reputed online shopping re tail website having head quarter in Gurgaon,

Shopclues.com maintains more than 12,000 merchants who are registered with the company. It is

one of the top ecommerce websites in India, which deals in more than 2 million products. They

guarantee authenticity of products, warranty and even ensure lowest price. They even have a

record of catering to more than 42 million online visitors. The company has even more than 350

registered employees across the country. T hey offer wide range of branded products to

consumers from every corner of the country.

Shopclues.com initiate free delivery services at the doorsteps of customers through

reputed courier services to nearly 10,000 cities across the country. They even initiate a 30-day

return guarantee if unable to meet customer satisfaction. One of the leading only shopping
 companies in India, Shopclues.com accepts online payment through major credit and

debit cards, including net banking services. The online shopping website service employs more

than 400 personnel for effective handling of the business and is even funded by national

institutional investors.

Myntra

Myntra is an Indian ecommerce site. It is regarded as Indias top 3rd online site to shop

products. Myntra allows its users to choose varieties of dress. One can choose any type of dress

of any brand from Myntra. The best thing about Myntra is its product quality and service. Now,

Myntra is merged into Flipkart to compete Amazon, but myntra.com is still running as a separate

website and entity. Buying clothes and gifts online can be best done v ia Myntra.

HomeShop18

HomeShop18 is the online & on-air retail marketing and distribution venture of

Network18 Group that was launched as Indias first 24 hour Home Shopping TV channel on

April 9, 2008. Ho meShop18 offers innovative, differentiated and demonstrative retail

experiences on TV an d internet and has emerged as the largest multimedia retailer in India with

a user base of 2.5 million users and some prestigious awards.

HomeShop18 is a venture of the Network18 Group, Indias fastest growing media and

entertainment group that operates Indias leading business news television channels like CNN-

IBN, CNBC TV18 and CNBC Awaaz.

There are many reasons for such a rapid developing of internet shopping, which mainly due to
the benefits that internet provides. First of all, the internet offers different kind of convenience to
consumers. Obviously, consumers do not need go out looking for product information as the
internet can help them to search from online sites, and it also helps evaluate between each sites to
get the cheapest price for purchase. Furthermore, the internet can enhance consumer use product
more efficiently and effectively than other channels to satisfy their needs. Through the different
search engines, consumers save time to access to the consumption related information, and
which information with mixture of images, sound, and very detailed text description to help
[5]
consumer learning and choosing the most suitable product.

However, internet shopping has potential risks for the customers, such as payment safety, and
after service. Due to the internet technology developed, internet payment recently becomes
prevalent way for purchasing goods from the internet. Internet payment increase consumptive
efficiency, at the same time, as its virtual property reduced internet security. After service is
another way to stop customer shopping online. It is not like traditional retail, customer has risk
[6]
that some after service should face to face serve, and especially in some complicated goods.

In last two years many e-commerce websites have come up and competing one another with

striking deals like free shipping, coupons, free gifts, easy return policy, and many others. The

latest data reveals that Flipkart, Amazon, Snapdeal, Paytm, Myntra, eBay, Jabong, Shopclues,

Homeshop 18, and Infibeam are the top ten e-commerce websites in India. Flipkart is one of the

biggest Ecommerce giant that arrived as the top among e-commerce websites in India.