Online Shopping's Impact on the Environment

CHAPTER 1
INTRODUCTION OF ONLINE SHOPPING

Anything that customers purchases affects environment by means of delivery, whether they have
the product shipped at home or drive to a brick and mortar store(supermarket). In earlier days
people used to go to different shops before purchasing as they didn't have a great deal of easy
access to information on products. Due to the development of World Wide Web it has now
become easy to access the products available worldwide without wasting time, money and other
resources apart from helping environment. Centre for Energy and Climate Solutions suggests
that we can protect land and save energy by shopping online. (Trask, 2006)
The example of Ocado Group plc that delivers the grocery directly to the customer instead of
shopping from the supermarket helped in controlling the carbon emissions. Many supermarkets
such as Marks and Spencer's, John Lewis, Amazon, Carbon Cart etc. have their own websites are
selling greener products and offering more choices to customers. Markham (1998)
Ocado's mission is to revolutionise the way people shop by giving them innovative and greener
alternatives to traditional shopping. Using the cutting edge technology in their delivery model
helps them to cut price, deliver quality and save environment.
'Meat free Mondays' creates environmental awareness of climate changing impact of production
of meat and consumption. By using bio- diesel in delivery vans the emission is reduced. They
deliver their products from the state-of-the-art warehouses directly to consumer home. They are
using anaerobic digestion to produce electricity from the leftover food. The company has their
own green team called eco-warriors to increase environment awareness amongst the staff. They
have slots allotted for green van area-wise to reduce carbon emission. They use combined heat
and power (CHP) which is energy efficient process to mitigate environmental impact. A lot of
recycling works using closed loop grocery bag recycling by keeping a track of the consumption
of plastic bags and batteries.
Bricks and mortar store eat up lot of energy and resources. Online shopping retail companies
stores goods in direct warehouse which saves cost of fixtures and glitzy gimmicks of brick and
mortar store.
External Analysis of Online Shopping Industry
The country is politically stable and the environment is suitable to promote online shopping
industry. The government is all open to offer the infrastructural and policy support needed to
make the experience of online shopping safer, efficient making it friendly to consumer, sellers
and environment which will help them meet the standards of carbon emission and reduce green
house gases set by The Kyoto Protocol and The Copenhagen Climate Council. The UK
government is taking up broadband and digital media growth rapidly paving way for online
shopping.
Economic
Online shopping has the potential to create huge opportunities for innovation and economic
growth in UK market which is facing recession. Online shopping will help in economic
efficiency increasing competitiveness and profitability by mitigating environmental impacts.
Social
Social awareness about environment is also driving people not to drive to the physical shops and
buy online with increase in internet connection. The people are more technology equipped than
before. Many retail chain such as Marks and Spencer, Ocado, etc are now promoting green
concept to sell their products online and generating goodwill which is ultimately helping them to
reduce costs and increase profits.
Technological
Technology is one of the key drivers to successfully implement effective online shopping. The
banking system and internet payments are some areas of concern but with improvements in
technologies related to internet security such as in Amazon.com shopping experiences are
becoming more convenient and safer. The countries, organisations and internet community must
concentrate on technologies by using effective payment, delivery and storage means e.g. Ocado
warehouses and deliveries, Mega electric cars, etc.

Environment
Organisation are now challenging the status quo and thinking of changing the way of doing
business because of energy prices. During the recent spike in gas prices online shopping brought
some respite to these shops which incurred significant losses otherwise. Implementing online
sales plan will assist a company to develop a baseline of energy use, actively managing energy
use and costs, reduce emissions without negative effect on operations, continue to improve
energy use and product output overtime and document savings for internal and external use eg.
Emission credits.
Legal
More environmental regulation from governments will also support energy efficient technologies
such as online shopping. Consumer Protection (Direct Selling) Act 2000 helps consumer on
issues related to online shopping.

Porter's five forces:
Bargaining power of Suppliers: As the online shopping is a huge network with many suppliers
the bargaining power of supplier is not strong. Suppliers can be rapidly switched without
affecting disrupting consumers shopping experience.
Bargaining power of customers: The customers of Schneider Electric have an equally strong
bargaining power because of the easy of information available about other competitors. There
will not much competition if the services and solutions provided have to be customised as per the
consumer needs.
Restriction to new entry: The industry is expanding with new keeping the market open for new
entrants. An innovative idea such as CarbonCart is sufficient to become successful even with
limited resources.
Substitution effect: There are varied solutions to same problem for example electricity can be
saved by insulation as well as improvement in technology. This keeps many substitution
companies open to competition for Schneider Electric.
Existing competition: There are many competitors as mentioned above which can become
potential threat in future. Schneider Electric has been successful in acquiring many companies to
reduce competition and increase their market.

Online Sellers
Argos is allowing customers to order goods through mobile phone by jumping in text messaging
bandwagon.(BBC, 2002). Dell has been pioneer in direct selling proving that complex product
such as computer can be sold without contact. Ocado Group plc (Ocado) is engaged in online
retailing and distribution of groceries and consumer goods in UK. Ocado offers delivery of
grocery products to customers centrally picked from a single highly-automated warehouse. John
Lewis knew from talking to their customers just how important energy saving has become to
their customers, and they developed their own range of electrical appliances with that in mind.
Aixam Mega sells light and private commercial vehicles with their key priority for environment.
Their investment in product market and designs has made them leader in market of affordable
diesel and electric vehicle.
Opportunities for Schneider Electric:
"You must be the change you wish to see in the world" Mahatma Gandhi. Schneider Electric's
mission is to assist organisation and people make most of their energy. Their vision is to extract
more while consuming lesser resources from our earth.
The company can involve itself in supplying parts to vehicles such as those Designed by Aixam
Mega, Ocado etc to help them become more energy efficient. This will help them to expand its
business on the vehicle segments as well. Schneider can also start its online selling business on
the lines of Amazon, Waitrose, Dell etc. using the direct selling model. This will help to
eliminate distributors thereby reducing costs and increasing profitability. The company can use
Bricks and clicks model where consumer can order online and pick goods from shop or get it
delivered at home. The company can appoint various people as marketing agents to popularise
and sell their products and earn commission. Schneider can use the text and take home service
used by Argos to sell their products through mobile phone.
Threat to Schneider
CarbonCart.com allows one to pick "Green" products and create a positive impact by
neutralizing more than hundred percent of the carbon emission generated from delivery. This
makes consumer feel responsible about the contribution they make to environment by purchasing
from CarbonCart.com. The direct selling model of Schneider will not be successful if people will
buy more from such industries.
Online shopping model for company such as Schneider which sells technical products will have
to backed up by large number of customer assistant agents which requires huge financial and
human resources where the attrition rate is high.
Segmentation
Direct customers: These are the customers who have purchase product directly from the
company. The direct customers will get maximum price advantage in product and services.
Distributors: Customers who have purchased product through distributor network operators
(DNO's) of company's product. The distributors will be given fixed targets and will be allowed to
sell the product in their name and below the price. This helps company to increase sales and
avoid dealing with individual consumers. Through the company DNO's can reduce maintenance
and installation cost with superior network design.
Direct Agents: The agents are the customers who have sold company products to their
customers. These agents will sell products at higher prices and will be given incentives on sales.
CHAPTER 2
LITERATURE REVIEW
This chapter will mainly discuss on the study that are done by previous research of other authors
in the similar area of the present study. Throughout this chapter, there will be comprehensive
discussion on theoretical and practical views of previous studies done in online shopping and
offline shopping for apparels. This study combines factors that other studies have done that will
influence the consumer's purchasing decision in online and offline stores for apparels. It includes
the price attractiveness, time saving, perceived risk, enjoyment and excitement, tangibility and
high interactivity. All of these factors will contribute to the study of customer's purchasing
intention for apparels on both stores which includes online and offline shopping. Pan, (2007)
defined purchasing intention as the eagerness of purchasing the product. Similarly, Engel,
Blackwell and Miniard, (1990) defines purchasing intention as a psychological process of
decision-making. In online shopping, it is expected that shoppers are more likely to associate
price attractiveness and time saving with their intention to shop while in offline shopping,
consumers are more likely to associate tangibility, high interactivity and enjoyment with their
intention to shop. As a result, online marketers or retailers should be aware of the problems faced
by the consumers and their perceived risk to increase their intention to shop in online. Designers
must take note of consumers' needs because the usability is the starting point to get the
confidence and support of the consumers (Alzola et. al., 2006).

Research Variables
In this part of the study, definition and citations from other authors of the dependent and
independent variables in the similar area of research will be presented here.
Purchase Intention
From the study of Pan (2007, p.5), the author cited from Engel, Blackwell and Miniard (1990),
that defines purchasing intention as a psychological process of decision-making. According to
Pan (2007), "purchasing decision process" is when the relevant information is searched by the
consumers that are motivated by the fulfillment of demands according to personal experience
and the external environment; then after accumulating a certain amount of information, they
begin to evaluate and consider; and finally after comparison and judgement, they make the
decision on certain products.
In the recent study of Chen, Ching and Tsou (2007), the authors cited from Azjen (1988); Azjen
and Fishbein (1980), that the theory of reasoned action (TRA) states that behavioral intentions
formed through the attitude toward a behavior and subjective norms lead to actual behavior given
the availability of resources and opportunities. A person's interest in performing a particular
behavior is reflected by the attitude toward a behavior and it is determined through behavioral
beliefs; these beliefs are obtained through a cognitive evaluation of outcomes associated with
performing the behavior and the strength of the association between outcomes and behavior;
while the evaluation produces either a favorable or unfavorable response to the object, person,
thing or event (Chen, Ching and Tsou, 2007).

According to Monsuwe, Delleart and Ruyter (2004), there are five external factors to understand
consumer's intention to purchase in the internet which is the consumer personality, situational
factors, product characteristics, previous online shopping experiences and the trust in online
shopping. Consumer's trait includes their demographic factors such as age, income, gender and
educational level will lead them to have the intention to shop online. For age factor, consumers
that are aged under 25 has more potential to shop in online because of their interest in using new
technologies to search for product information and compare and evaluate alternatives (Wood,
2002). For educational level, higher educated consumers are more likely to use the internet for
their shopping medium because they are more computer literate (Burke, 2002).
Situational factors will also lead a consumer to have the intention to shop in the internet such as
time pressure, lack of mobility, geographical distance, need for special items and attractiveness
of alternatives (Monsuwe, Delleart and Ruyter, 2004). Time pressure can be the insufficient time
for consumers to shop in traditional stores because of their hectic lifestyle. Consumers are able to
shop any time of the day or night in the comfort of their home; especially for consumers who
have little amount of free time because of extended working hours (Wolfinbarger, et, al,. 2001).
For consumers that lack of mobility might be caused by their inability to reach the traditional
store. Geographical distance is referred to as the far distance between the consumer's residential
area and the shopping mall. Need to special items could be the consumer's needs of customized
products to suit their demand (Monsuwe, Delleart and Ruyter, 2004).
Product characteristic is also another factor that will influence the consumer's intention to
purchase in the internet. Product characteristic can be tangible or intangible; standardized or
customized. In an online context, lower tangibility of a product is caused by the lack of physical
contact and assistance in the shopping process; consumer's intention to shop on the internet will
be low when there is a need to seek advice from a salesperson regarding the considered product
(Monsuwe, et. al., 2004). Products such as car, computers, perfume, perfume or lotion has the
lower potential to be purchased by the consumer because it requires more personal knowledge
and experience (Elliot, et. al., 2000).
Another factor that influences the consumer's intention to purchase in online is the previous
online shopping experiences. Consumers will continue to shop in the internet in the future is
because they are satisfied with the online shopping experience and it was evaluated positively
(Shim, Eastlick, Lotz and Warrington, 2001). Consumer's perceived risk will tend to reduce
when they are satisfied from the shopping experiences (Monsuwe, Delleart and Ruyter, 2004).
The last factor that will influence consumer's intention purchase in online is the trust in online
shopping. According to Lee and Turban (2001), reasons that consumers choose not to shop
online is because consumers lack of trust in online shopping. Attitude towards security
transaction such as payment security, consumer information privacy, return policy, and product
shipping guarantee predicts online purchasing intentions for apparels product (Kim, et. al.,
2003). Similarly, consumer's trust towards online shopping is based on the level of security and
privacy.
Price attractiveness
Price is a form of monetary that people use for any transactions. It is predicted that price of a
product differs in online and offline shopping. According to Xia and Monroe (2009), consumers
will save in monetary when there are price promotions on specific products. In an online context,
consumers are more likely to depend on the price cues to determine the quality of a product
which are presented in the web site because they cannot see or touch the actual product (Jiang
and Rosenbloom, 2005). The study of So, Wong and Sculli (2005) resulted that when there is the
presence of promotional offers, consumers will have higher intention to purchase in web-
shopping; purchasing decisions and choice making from alternative evaluations can be made
easily when there is the presence of promotional offers.
According to Xia and Monroe (2009), their study resulted that consumers with a shopping goal
are more responsive towards promotional messages such as "pay less" and "discount" while
consumers without shopping goal are responsive towards promotional messages such as "save
more" and "free gift". Xia and Monroe (2009, p.691) cited from (Monroe, 2003) that price
promotion have several benefits such as to increase demand, adjust fluctuations in supply and
demand, and increasing consumers' purchasing over time.
As we know that online shopping requires shipping fees for product delivery. It is expected that
some consumers intention to purchase a particular product because they have to pay extra
charges for the delivery service. But according to Jiang and Rosenbloom (2005), e-tailers can use
charges for shipping and handling as a tool to attract patronage by matching consumers' delivery
needs; for example, some consumers who would prefer a quick delivery will have to pay higher
cost while others may prefer to wait if they pay lower shipping and handling charges.
According to Parasuraman, Zeithaml and Berry (1988), perceived quality and price are thought if
as a cue to assume a product's value. Xia and Monroe (2009) viewed that at a certain point,
perception of lower quality of the product will evoked when there is a price reduction or there
will be questions on the retailer's intention to reduce the price. Price will be a primary factor
when consumers search product in a web and this would show that customer behavioral intention
are related to the price cues that are more readily accessible from memory (Jiang and
Rosenbloom, 2009).
According to Liu, He, Gao and Xie (2008), it is important for e-tailers to provide varied types of
merchandise and preferential price because customer satisfaction is still based on product price
and product variety; to create competitive advantage, small e-tailers should offer more product
choices for the consumers and offer competitive prices.. In online shopping, consumers are able
to compare prices on the internet in different web sites and they will have the material benefit
because they can analyze and compare prices based to enhance their decision to purchase (Liu,
He, Gao and Xie, 2008). According to Jin and Kim (2003), diverse consumer groups with
various motivations and economic conditions can be satisfied through discount stores that are
available in Korea.
Pricing factor will also contribute to the shopping convenience. Price perception is positively and
strongly correlated with shopping convenience (Jiang and Rosenbloom, 2005). Similarly agreed
by Jayawardhena and Wright (2009), shoppers who value convenience can obtain the benefits of
product and services with less money spent and this would have a positive relationship with
shoppers' excitement; increasing search efficiency by eliminating travelling costs and
psychological costs brings convenience in e-shopping.
Time saving
Time is also perceived as one of a factor that relates with intention to purchase in a shopping
context. It is believed that consumers have their own perception of time, whether or not to shop
from the internet. According to Hansen and Jensen (2009), accomplishing the shopping trip as
soon as possible refers to the time-saving oriented consumers and they prefer store choices
favoring quick shopping; people who dislike shopping and approaching for time saving retail
stores refers to the economic shoppers or known as "problem-solvers".
In online shopping, it requires less effort and better decision making for consumers who opt to
purchase at the e-store (Jiang and Rosenbloom, 2005). Shoppers may save their time in e-
shopping because they do not have to go through any effort on travelling to a mall or saving their
time in other psychology factors such as traffic jam etc. Online shopping increases search
efficiency by eliminating travelling costs and psychological costs brings convenience in e-
shopping (Jayawardhena et. al., 2009). Comparing online and traditional shopping, Alreck and
Settle (2002) found that internet shopping was viewed as saving more time.
Shoppers who value convenience can obtain the benefits of product and services with less effort
and this would have a positive relationship with shoppers' excitement (Jayawardhena et. al.,
2009). Ordered products are directly delivered to the door is the greatest interest to many
consumers because online shopping does not requires us to leave the hours or office (Chen and
Chang, 2003). According to Monsuwe, Delleart and Ruyter (2004), the main drive of online
shopping is that the internet is time saving and accessible 24 hours a day. Shopping in the
internet saves time and effort because consumers are able to shop any time in the comfort of their
home; especially for consumers who have little amount of free time because of extended working
hours (Wolfinbarger and Gilly, 2001).
Consumers expect timely delivery in the online store as they browse and "internet shopping" is
just alike as they visit the "offline stores" and they "create order transaction" just like they
"purchase the product" (Ahn, Ryu and Han, 2004). In the previous study of Koyuncu and
Bhattacharya (2004), the researchers found that online shopping offers better prices on the
products and it allows consumers to shop more quickly than other shopping alternatives, and this
will lead individual to be inclined to increase their shopping from the internet. According to
Monsuwe, Delleart and Ruyter (2004), online shopping requires least effort, inconvenience and
time investment for consumers to browse the whole product-assortment; consumers can make the
correct decisions efficiently because they can gain vital knowledge about firms, products and
brands.
Consumers also expected that product delivery in online shopping will be quicker compared to
offline stores and timely delivery on their convenience time; factors that keep consumers satisfy
in using internet as a tool for shopping is timely and reliable delivery (Ahn, Ryu and Han, 2004).
Broekhuizen and Huizingh (2009) expected the relationship between time or effort savings and
purchase intentions is strengthen; consumers will place more emphasis on the time and effort
savings once they have experienced how little time and effort takes to make an online purchase.
Liu, He, Gao and Xie (2008) suggested that to save customer's time and fully reflect the
convenience of online shopping, e- marketers should strengthen the web site's transaction
capability and make sure all operations can be completed online.
Perceived risk
Perceived risk is defined as consumer experiencing consequences or the amount of uncertainty in
contemplating as particular purchase decision. (Cox and Rich, 1964). Similarly, Gronhaug,
(1976); Newall, (1977); Upah, (1980) defined perceived risk as the potential of unfavorable
consequences and the level of uncertainty in a purchasing situation. Stone and Gronhaug (1993)
defined perceived risk increases psychological costs when feelings of discomfort occur in an
individual. According to Walker and Johnson (2006), they stated that perceived risk has two
main concerns. First is concerning the service delivery system's technical performance or
functional reliability; and second is concern on privacy and security. Functional or performance
goals, psychological goals, or the means of money, time and effort invested to attain those goals
may be regarded as the consequences (Park and Stoel, 2005).
There is certain risk that consumers will face when making online purchase. Shopping on the
internet which is a new medium for consumers will be a challenge for them because shopping on
the internet is relatively new and consumers have less experience with it (Monsuwe, Delleart and
Ruyter, 2004). According to Sorce, Perotti and Widrick (2005), perception of convenience in the
internet and its informative sources will positively affect good decision making for online
shopping but the decision will be negatively influenced when there is high perceived risk. From
the research of So, Wong and Sculli (2005), excessively worries of security from the perceived
risk will lead a consumer to decide not to conduct web-shopping. When consumer's perceived
risk is lower, then their purchasing intention will be higher (Park and Stoel, 2005).
When purchasing occurs in an online environment especially for products such as apparels, it
can't be denied that consumers will have the feeling of unsecure regarding the product
information and the actual material and color that they will receive by viewing the display in the
website. This is also agreed by Park and Stoel (2005), clothing such as skirts and sweaters are
high risk items where size, color and fit matters to the consumer. According to Burke, (2002);
Parasuraman and Zinkhan, (2002), in internet shopping, there will be risk involved, privacy,
security, visual appeal, delivery terms, form of payment and product information. Besides that,
quality of a product cannot be physically checked by the consumers and the security of sending
sensitive personal and financial information while conducting online shopping cannot be
monitored by the consumers (Lee and Turban, 2001). For apparel shoppers, they should use the
internet to search for extra information to reduce risk in decision making because of they are
unable to try on the garment (Park and Stoel, 2005). Attitude towards security transaction such as
payment security, consumer information privacy, return policy, and product shipping guarantee
predicts online purchasing intentions for apparels product (Kim and Kim, 2003).
Perceived risk is expected to be more distinct in online shopping compared to offline shopping.
Perceived risk in online shopping can be reduced in terms of appropriate description the product.
To reduce risk, product information and its description should be clearly stated as well as the
store policies (Kwon, 1991). Internet marketers must also create trust with online buyers so to
lower the buyer's perceived risk. There is an important moderating effect on trust with the
relationship between consumers' attitude toward Internet shopping and intention to shop online
(Monsuwe, Dellaeart and Ruyter, 2004).
Perceived risk can be reduced when the consumers are more familiar with the online
technologies (Kleijnen, 2007). Similarly, Bucklin and Sismeiro (2003) state that consumer's
skills are more advanced when they learned how to shop through a site this will increase their
efficiency in shopping. Past experience and ongoing usage of internet-based purchase will
increase consumer's familiarity and thus, feeling of anxiety and perceived risk should be reduced
of such purchases; to lessen consumer's anxiety, knowledge about the actual experience with the
internet should be increased (Kuhlmeier and Knight, 2005).
Enjoyment and excitement

Excitement is defined as high level of enjoyment and stimulation that has the positive emotional
state (Russell, 1980). Excitement can also be associated as to satisfy retail outcomes (Dawson,
1990). According to Lotz, Eastlick and Shim (1999), the emotion that has been considered as the
key experience that attracts customer to a shopping mall is excitement. Jeong, Fiore, Niehm and
Lorenz (2009, p.109) cited from (Eroglu, Machleit and Davis, 2003; Mano and Oliver, 1993) that
emotional pleasure is defined as the degree of happiness and pleasantness and arousal as the
degree of stimulation, excitement, and alertness; therefore, dimensions of emotional pleasure and
arousal may mediate consumer experiences and web site patronage intention. Similarly, as the
web site's shopping is more enjoyable, consumers are more likely to purchase a product
(Monsuwe, Delleart and Ruyter, 2004).
Consumer also associate shopping with enjoyment and excitement which they would think is a
fun activity to them regardless in an online or offline context. Enjoyment is defined as the extent
to which online shopping is perceived to be personally enjoyable and fun (Chiu, Chang, Cheng
and Fang, 2009, p.767). Shoppers nowadays tend to be more leisure driven compared to the
shoppers in the early 1990's (Nicholls, Li, Kranendonk and Roslow, 2002). For some consumers,
shopping for apparels is fun, enjoy, relaxing, pleasure or leisure. In offline shopping, consumers
may associate enjoyment and excitement in the shopping mall environment with their friends or
family. According to the research of Dennis (2002), he suggests that offline shopping will be
more enjoyable than online shopping as regarded by the consumers. Hunter, (2006) suggested
that retailers should increase the level of positive emotions in their shopping mall by creating an
exciting and happy experience.

The research of Millan and Howard (2007) resulted that Hungarian shoppers visited shopping
centers for both utilitarian and experiential reasons; some viewed shopping as a leisure activity
accompanied by somebody and enjoyed looking around while accomplishing their shopping task.
Rajamma, Paswan and Ganesh (2007) suggested that there is a higher importance to the
enjoyment aspect of shopping for consumers who prefer to shop in offline stores compared to
those consumers who feel comfortable purchasing from the internet. Otieno, Harrow and Lea-
Greenwood (2005) stated that women enjoyed shopping because of the fashion, trends, fun, for
browsing, felt special, looked good on the apparels, claimed to be "shopaholic", retail therapy,
forget other problems, love for clothes, etc.
While in online shopping, consumers is expected to relate enjoyment and excitement with the
experience absorbed in the purchasing process and the excitement level is expected to arise
during the product delivery process. According to Broekhuizen and Huizingh (2009), online
shopping causes enjoyment which is fun and playful rather than from shopping task completion;
customers may regard the purchase of goods in online shopping as an experience and the
perceived entertainment will be regarded as enjoyment to them.
Consumers tend to browse more, engage in more unplanned purchasing and seek out more
stimulating products when they feel pleasant and aroused in the shopping environment
(Monsuwe, Delleart and Ruyter, 2004). Consumer's intention to return should increase as the
extent a consumer associate excitement with an e-tailer increase; as the psychological cost
reduces, the online shopping experience will be more enjoyable and therefore creates excitement
(Jayawardhena and Wright, 2009). Consumers will have more positive attitude when they enjoy
the experience of online shopping and are more likely to adopt internet as a shopping medium;
potential of entertainment of online shopping will reflect consumers' enjoyment (Monsuwe,
Delleart and Ruyter, 2004). From the research of Jayawardhena and Wright (2009), it resulted
that the assessment of the e-tailing environment leads the customers to enjoy the shopping
experiences; they also found that positive word of mouth will be created when it is influenced by
the excitement positively.
Regardless of online or offline shopping, retailers should put in more effort to create better
environment so that shoppers are able to shop in positive emotions and enjoy the shopping
process. The study of Liu, He, Gao, and Xie (2008) stated that the page desigh, layout and color
match will bring the first impression to the visitors; thus e-tailers should design comfortable and
pleasing pages to attract customers and prolong their stay so that it will increase the possibility of
purchase.
Tangibility
Regardless of online shopping or offline shopping, tangibility is expected to be a factor that
consumers will consider during the purchasing process. Tangibility products including shoes and
clothes; although it is considered as standardized products, consumers need to feel it and touch it
to make their purchasing decisions (Rajamma, Paswan and Ganesh, 2007). Consumers are
particular about the tangibility of a product is because they need the security and assurance of the
product purchased is in a good condition and assurance of purchasing the right thing.
According to Kotler (1974); Bitner (1992); Solomon, Suprenent, Czepiel and Gutman (1985),
assurance is important to capture confidentiality, shopping security, complaint resolution,
problem solving and warranties. In an online shopping environment, consumers are not
associated with a physical location while they are only communicating with a machine and not
human being (Ekeldo and Sivakumar, 2004). With the inability of consumers to feel and touch
the product in an online context because online retailing lacks the tangible features, it makes it
difficult to market those products on the internet. (Lindstrom, 2001).
Rajamma, Paswan and Ganesh (2007) stated that offline shopping will be perceived in higher
tangibility level because of its physical location and buildings that consumers can attached with
the sensory cues; while in online shopping are by definition but in virtual. Monsuwe, Delleart
and Ruyter (2004) states in an online context, lower tangibility of a product is caused by the lack
of physical contact and assistance in the shopping process; consumer's intention to shop on the
internet will be low when there is a need to seek advice from a salesperson regarding the
considered product. The reason why consumers like to shop in an offline context is because the
stores fulfill the realistic expectations (Rajamma, Paswan and Ganesh, 2007).
For internet shopping, product such as books, CD's, videotapes, groceries and flowers which is
more familiar will have higher potential to be purchased by the consumers (Grewal, Iyer and
Lavy, 2004) while products such as car, computers, perfume, perfume or lotion has the lower
potential to be purchased by the consumer because it requires more personal knowledge and
experience (Elliot and Fowell, 2000). Rich, sensory-oriented product information on the screen is
provided for clothing to substitute the tactile experience, so that it may be useful to satisfy the
consumer's purchasing criteria (Park and Stoel, 2005). Personal contact is required or expected
when there is event of something going wrong or creating uncertainty in the mind of the
customers (Walker and Johnson, 2006). Some consumers may perceive that the items offered in
online shopping will be difficult to choose than offline shopping because they need to seek
advice from sales personnel (Hansen and Jensen, 2009).
To reduce insecurity in online shopping, designers must take note of consumers' needs because
the usability is the starting point to get the confidence and support of the consumers; besides that,
tangibility also helps to reduce heterogeneity of the web site in the supply of the service and to
improve quality control (Alzola and Robaina, 2006). This statement is also parallel with the
study of Liu, He, Gao, and Xie, (2008) where they suggested that because the products are
intangible in the online shopping environment, detailed and complete product information should
be provided; to know the quality of a product, consumer can only rely on the pictures and
description on the web page because they are unable to feel and touch the product. Moreover, to
ensure customer can make purchasing decisions, the web site should provide complete
description of a particular good, including its color, functionality, model, etc (Liu, He, Gao, and
Xie, 2008).
CHAPTER 3
MATERIAL AND METHODS
CHAPTER 4
RESULT AND DISCUSSION
This chapter aims obtain the objective of the study by critically analysing the qualitative
data through thoroughly examining the interviewee’s responses and beliefs. This has been
achieved through evaluating the most relevant responses by the participants. The data has been
analysed and discussed by comparing the comments made by the respondents with the literature
review keeping in mind the research objective of the study. Thus, the rationale of this analysis is
based on the personal answers provided by the respondents.
An appropriately designed questionnaire was used to collect the primary data for the study. The
data for 100 respondents was organized systematically in tables and graphs and then was
subjected to analysis using appropriate statistical tools. The results of the analysis are presented
in the following section in order to assess the customer perception towards online shopping on
Flipkart.com in India.
Here for analysing, we are considering two factors. That is:
 Demographical factors
 Behavioural factors
Demography:
1. Gender of Respondents:
Table : Gender wise respondents
Male Female Total

Responses 58 42 100
Percentage 58 42 100
Graph : Gender wise respondents
Gender
42%
58% Male
Female
Analysis and Interpretation:
According to demography profile, in this study 70 % male and 30% female respondents are part
of my target population and they help me to fulfil my questionnaire from different area of
Bareilly city. From these groups total respondents are 100. So, according to the survey result,the
male respondents are more and can be told that they interested to shop online than female, even
though both of them shop online.
2. Age Group:
Table : Age wise respondents
15 -25 25 -35 35 - 45 45 & above Total

No of respondents 63 24 12 1 100
Percentage 63 24 12 1 100
Graph : Age wise respondents
Age Group
1%
12%
15 -25
24%
25 -35
63%
35 - 45
45 & above
Below figure shows that 63% respondents are between 15-25 years old, 24% respondents are
between 25-35 years old, 12% respondents between 35-45 years old, and 1% respondents are
between 45&above. Overall result shows that between all of them the respondents who has age
limit between 15 to 35 years (63%+24%= 87%) people are more familiar to shop online on my
target population.
3. Occupation:
Table : Occupation wise respondents
Business House wife Salaried Student Total

person
No. of respondents 8 7 46 39 100
Graph : Occupation wise respondents
Occupation
7%
8%
39%
Business person
House wife
46% Salaried
Student
In this survey, 46% of the respondents are salaried and 39% are students. So they both together
made majority of respondent’s percentage (85%). 8% are business persons and 7% are House
wife. Salaried persons and students will always look for new technologies and new services
which make them more comfort.
4. Educational Qualification:
Table : Educational wise respondents
Graduate post SSC or Others

graduate Equivalent (PhD)
Number of respondents 63 36 0 1
Percentage 63 36 0 1
Graph : Educational wise respondents
Educational Qualifications
1%
0%
36%
Graduate
post graduate
63%
SSC or Equivalent
PhD
All of them in this survey are graduate and above qualified peoples only. Among these 63% are
graduates, 36% are post graduates and one person is PhD.
5. Annual Income:
Table : Income wise respondents
0- 3 L 3-6L 6-9L 9 & above

Number of respondents 60 23 13 4
Percentage 60 23 13 4
Graph : Income wise respondents
Annual Income
4%
13%
0- 3 L
23% 3-6L
60%
6-9L
9 & above
Since 39% of this survey is students most of them are of 0-3L income range, ie 60%. 23% of
them are in 3-6Lincome range, 13% in 6-9L and 4% is 9 & above.
Behavioural factors:
This survey is conducted on those people who do online shopping and are aware of Flipkart. So
everyone answered ‘yes’ for those two questions.
6) Frequency of purchase from online:
Table : online shopping usage
Always Often Sometimes Seldom Never Total

Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100
Graph : online shopping usage
35
29
30
25 23
21
20
14
15
10
5 4
5 3
1 0 0
0
Always Often Sometimes Seldom Never
Male Female
More than half of them use online shopping sometimes, ie 52%. People who always and mostly
shop through online shopping are also good in number, 9 and 35, together 44%. And who use
online shopping rarely is very less in number 4%. Since only 44% are mostly using this, there is
a wide space to fill and to make online shopping a great success. And there is not much gender
difference inonline shopping, which means both males and females enjoying online shopping
and its benefits.

7)Mode of awareness about Flipkart.com:
Table : Modes of awareness about Flipkart
Word of Advertisements, Blog Links Promotional Search Total

Mouth newspapers, TV recomme- from emails engines(like
ndations other Google)
websites
No: of 39 22 2 15 5 17 100
respondents
Percentage 39 22 2 15 5 17 100
Graph : Modes of awareness about Flipkart
No: of respondents
45
40
35 39
30
25
20
15 22
10 15 17
5 2 5
0 No: of respondents
Most of them are awareabout Flipkart through word of mouth (39%) followed by television and
online advertisements (22%). Customers got awared through blog SUGGESTIONS (2%) and
promotional e-mails (5%) are very less in number.
This means a good communicaton about Flipkart is going on through friends and families, which
proves that word of mouth strategy by them is the most successful means of making people
aware about their products. Success can only be gained through delighted customers who act as
advocates for their products and there is a wide scope of other digital advertisement techniques
like search engine marketing, email- marketing, providing links and blog SUGGESTIONS
inorder to make more customers.
8) Frequency of usingFlipkart.com while online purchasing:
Graph : Frequency of using Flipkart
Every Occasionally Most of the Hardly Total

time time ever
No: of 17 45 32 6 100
respondents
Graph : Frequency of using Flipkart
No: of respondents
50
45
45
40
35 32
30
25
No: of respondents
20 17
15
10
6
5
0
Everytime Occasionaly Most of the time Hardly ever
Here on this survey 17% are always choosing Flipkart for online shopping, while 45% are using
it occasionally. Hardly ever using members are very less, and 32% are using it most of the time.
Since more than half of them prefer Flipkart while thinking of online shopping, it means
branding had done successfully by them either through advertisements, services or providing
good experience to customers.
9) Category that mostly prefer to buy from Flipkart.com:
Graph : Category mostly prefer to buy from Flipkart
Electronics Apparels & Books, Stationaries Healthcare Home & Total

Accessories Movies & Kitchen
& Music personalcare items
No: of 39 20 30 3 4 4 100
respondents
Percentage 39 20 30 3 4 4 100
Graph : Category mostly prefer to buy from Flipkart
No: of respondents
45
40
35 39
30
30
25
20
20
15
10 No: of respondents
5
3 4 4
0
Electronic items, Books and Stationery, Apparels& Accessories, cameras, watches and others
(bags, belts, etc.) are purchased more. 39% of respondents are preferred to buy Electronics items
followed by Books and Stationery (30%) and Apparels and Accessories (20%). Books &
stationery and electronics items are more famous among the students and that may be the reason
for large purchase of those items from Flipkart.com.
10) Reason for customer’s preference on Flipkart.com than others:
Table : Customers expecting feature of Flipkart
Fast Availability After Sales Easy Portal Total

Delivery Services Payment Features
options
Responses 41 29 8 17 5 100
Percentage 41 29 8 17 5 100
Graph : Customers expecting feature of Flipkart
Responses
45
40
41
35
30
29
25
20 Responses
15 17
10
5 8
5
0
Fast Delivery Availability After Sales Easy Payment Portal Features
Services options
One of the most efficient features in Flipkart is fast delivery when compared to other online
shopping websites. So, most of the customers prefer this website for shopping with the
perception of quick delivery (41%) and availability of product (29%), followed by easy
payment options (17%). And there is a scope of increasing after sales services and portal
features when comparing with other features.
11) Product selection from the categories given by Flipkart.com:
Table : On the basis where product is chosen
Rating of the Discounts and Review about the Brand of the Total
product features product product
No: of 14 48 26 12 100
Responses
Percentage 14 48 26 12 100
Graph : On the basis where product is chosen
No: of Responses
60
50
48
40
30
No: of Responses
26
20
10 14
12
0
Rating of the Discounts and Review about the Brand of the
product features product product

Customer perception varies while using Flipkart; it is one of the online shopping sites which
give high discounts and offers. Most of them in this survey (48%) are looking for good featured
product with high discounts while purchasing products from Flipkart. And also customers more
often go through the product review (26%) before making their decision topurchase. Product
review is a kind of word of mouth strategy where product usersleave their review on their
experiences with Flipkart. Customers are giving priority to these two features while brand of
product (12%) and rating of product (14%) also taken care by some other customers.
12) Rating of services on Flipkart.com (in a scale of Excellent, Good, Average,
below average, Poor)
Table : Rating of Flipkart services
Excellent Good Average Below Poor

Average
Cash on delivery 46 45 5 2 2
30 days replacement 23 55 20 2 0
policy
EMI options 21 48 25 5 1
Free shipping 35 34 17 12 2
Graph : Rating of Flipkart services
60
50
40
Cash on delivery
30 30 days replacement policy
EMI options
Free shipping
20
10
0
Excellent Good Average Below Poor
Average
46% of respondents are rated excellent for cash on delivery service, while for 30 days
replacement policy 55% rated good and 23% rated excellent. For EMI options 48% rated good
and 21% rated excellent, and for free shipping 35% rated excellent.
While analysing the data, customers have more interest in two services of Flipkart: That is,
30 days replacement policy and EMI options.
Since Flipkart is providing 30 days replacement policy for all the products in the platform. And
this combined mix service increased the customer trust.
In case of EMI options, Flipkart is the only site which accepts all credit cards and thus it
provides a better payment options to the customers.
Cash on delivery is a compactable service that provided to the customers and they are much
satisfied on that service also. Even some rated less for this service, may be because of less
customised experience on cash on delivery.
In case of free shipping, Flipkart provide this service for total purchase of rupees 300 and above
only. So it may affect some of the customers who purchase less price products frequently.
13) Issues faced by customers while shopping in Flipkart.com?
Table : Issues faced when purchased from Flipkart
Out of Payment Replacement Delay in Faulty No Others Total

stock issues issues Delivery product issues
No of 37 6 6 12 8 30 1 100
Responses
Percentage 37 6 6 12 8 30 1 100
Graph : Issues faced when purchased from Flipkart
40 37
35
30
30
25
20
15 12
8
10 6 6
5 1
No of Responses
In this survey, 30% of customers didn’t face any of those problems that mentioned, while 37%
of customers faced out of stock issue. This is one of serious issue faced by most of customers.
Since discounts and features are the one feature that most of the customers looking for and
when a good product with high discount is displayed in Flipkart platform, customers brought it
as soon as they could. Thus the products will be out of stocked.
Flipkart started notifying the customers about the product when the stock got available.
Payment issues and replacement issues are less in number (total 12%) since different payment
options like EMI options, card payments, Cash on delivery, Wallet payments etc… are
provided by Flipkart and customers are satisfied with those.
In case of replacement also only less issues are happened, thus shows most of them are satisfied
with that service.
Delay in delivery happens because of shipping and courier service issues. It is a problem with
supply chain. Mostly it happens in the end part of the supply and in rural areas where courier
services are less active.
Faulty product issue also happened to 8% of the customers and one of the policies to overcome
this issue is 30 days replacement policy of Flipkart.
14) Recommending this website to others:
Table : Recommending Flipkart to others
Yes No Total
No: of 95 5 100
Responses
Percentage 95 5 100
Graph : Recommending Flipkart to others
95
100
80
60
40
5
20
0
Yes No
No: of Responses
In this survey, most of them (95%) are happy to recommendFlipkart to others like friends and
family. And this shows word of mouth publicity is successfully running and this is one of the
great advantages for Flipkart.
15) Customer’s rating about services onFlipkart.com: (in a scale of 5, 5 as highest and 1
asleast)
Table : Rating the experience from Flipkart
1 2 3 4 5 Total
No of 7 11 16 49 17 100
Responses
Percentage 7 11 16 49 17 100
Graph : Rating the experience fromFlipkart
49
50
40
30
16 17
20
11
7
10
0
1 2 3 4 5
No of Responses
While analysing the rating of experiences, Flipkart provides a good and excellent experiences to
most of the customers.
Mode of given data: 4 & Median of given data: 4
49% of customers rated 4 as the experience and more than half of the population (66%) rated 4 &
5 as experience.
16) Satisfaction of customers while Flipkart services are used:
Table : Satisfaction on services of Flipkart
Yes No Total
No: of responses 81 19 100
Percentage 81 19 100
Graph : Satisfaction on services of Flipkart
81
100
80
60
19
40
20
0
Yes No
No: of responses
81% of the population is satisfied with the service of Flipkart. This helpsFlipkart to retain the
customers and also shows that the branding and marketing techniques of Flipkart also got
succeed.
CHAPTER 5
SUMMARY AND CONCLUSION
Major findings of buying behavior of Internet Shoppers 6.2 Major findings of customer‘s
preference towards Internet Shopping 6.3 Major findings of customer‘s perception about risk in
Internet Shopping 6.4 Major findings regarding Trust Respondents have on Online
merchants/Internet Shopping 6.5 Major findings relating to reasons for reluctance to internet
shopping.
Like a voyager, who after finishing his voyage, reaches to destination and glances back to see the
distance that he has covered for identifying the important landmarks he came across. This
chapter shows the study of important aspects and summing up of the key observations is
presented in this chapter. Online shopping is the buzz, the sensation in the current scenario. The
Internet has made a new generation of consumers who like to shop online. 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, one 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; one can
shop anytime - the facility is available round the clock.
Besides saving our time of visiting an offline store and staying away from the hassles involved,
one can gain an additional advantage, i.e., saving a lot on the money factor.
However, internet shopping is not without risks. Customers perceive it to be risky and hesitate to
shop online. It implies such customers even do not have trust on internet merchants and internet
shopping. Those customers who shop online also feel that there are perceived risks associated
with internet shopping. We can say customers have now become aware about term internet
shopping, however there are more people who still prefer shopping in stores then online.
Throughthis study, whether trust matters or not in internet shopping and risk perception of
internet shopping in selected cities of Gujarat is studied and the important findings of the study
are presented below:
6.1 Major findings of buying behavior of Internet Shoppers:
26.7 % of the respondents shop according to the need while 56.7% of the respondents never shop
online 41.5% of the respondents under the age group of 20-29 shop online whileonly 2.3% of the
respondents under the age group of 15-19 shop online. 41.5% of respondents under service
profession shop online while 0.8 % (i.e. 1) respondent who is housewife shop online 77.7% of
the respondents who shop online are male and 22.3% of the respondents are female 51.5% of the
respondents who shop online are post graduates while only 5.4% of them are SSC or below
qualification 46.9% of respondents who shop online fall in the income group of 20,000 to 40,000
monthly income while only 8% of respondents fall in the income group of 80,000 to 100,000
64.6% of respondents who shop online are married while only 35.4% of respondents are single
51.5% of the respondents who shop online live in joint family while 48.5%Performance &
Privacy, Psychological risk, Physical risk and Social risk in doing internet shopping. Initial level
of trust of customers matter a lot in influencing internet shopping which depends upon perceived
reputation of internet merchants.
It is also important for all of us to understand how to shop online safely and wisely. This
research study has helped in understanding how many people are buying products and services
through online shopping, what is their buying behavior, whether they are placing trust in internet
shopping and what is their perception about risk in internet shopping. This research study has
given me a precise knowledge about buying behavior of internet shoppers, preferences towards
internet shopping, risk perception and reasons for not shopping online. of the respondents live in
nuclear family 61.5% of the respondents use search engines (like google, etc.), while only 3.8%
of the respondents prefer Blogs and 10% of the respondents use product catalogue as sources to
gather information about various products online 63.8% of the respondents prefer cash on
delivery while only 6.9% of therespondents prefer to use net banking as a payment mode in
internet shopping 33.8% of the respondents has given 1st preferred rank in buying electronic
goods through internet shopping, 32.3% of the respondents have given 2nd rank to airline
reservation/railway ticket booking online and 18.5% of the respondents have given 3rd rank to
buying of apparels online. This shows that electronic items, air or rail tickets and apparels are the
most frequently bought products online 6.2 Major findings of customer’s preference towards
Internet Shopping The research shows systematic association between Age and Convenience,
Offers/Discounted prices, No need to deal with sales people, Known or famous brand name and
Ease of product return and money refund. The research shows a systematic association between
Profession and Offers/Discounted prices, Can find products that are not available in the stores,
No need to deal with sales people and Ease of product return and money refund. The research
shows a systematic association between Gender and Assurance of on-time delivery . The
research shows systematic association between Qualification and Convenience Can find products
that are not available in the stores and Ease of product return and money refund . The research is
not showing systematic association between Monthly Income and Customer preference towards
internet shopping. This means that preference for internet shopping is same among all monthly-
income groups.
The research is showing a systematic association between Marital Status and Ease of
comparison, Offers/Discounted prices, No need to deal with sales people and Ease of product
return and money refund The research is not showing any systematic association between Family
Type and Customer preference towards internet shopping. This means that preference for
internet shopping is same among joint family and nuclear family.
Result of Factor analysis reveals certain broad dimensions for preference of internet shopping
which includes factor 1 experimental uniqueness, factor 2 customer service and factor 3
convenience. contained four attributes explained 24.898% of variance in the data, with the Eigen
value of 2.490 and reliability of 74%. The attributes associated with this factor dealt with
Inclination towards trying something new, Can find products that are not available in the stores,
No need to deal with sales people, and Known or famousbrand name. Factor 2 Customer
Service accounted for 17.917% variance in the data with Eigen value 1.792 and reliability of
70.20%. This factor loaded with Ease of comparison, Offers/Discounted prices, Assurance of
on-time delivery, and Ease of product return and money refund. Factor 3 Convenience loaded
with two attributes. This factoraccounted for 12.734% of the variance, with an Eigen value of
1.273 and reliability of 78%. These attributes were Convenience and Ease of finding products
6.3 Major findings of customer’s perception about risk in Internet Shopping.
The research is showing systematic association between Age and No possibility for "touch, feel
or see" actual product to assess quality, Suffering from backache problem due to long online
shopping hours, Fear of misuse of credit card, Doubt about the performance of the product or
brand as expected, Fear of experiencing unnecessary tension due to shopping online, Worry that
friends would think that I am trying to show off by purchasing online and Uncomfortable feeling
on thought of purchasing online. The research is showing systematic association between

Profession and Fear of on time delivery after payment, Doubt about the performance of the
product or brand as expected and Fear that the delivered products would not match those
described on the Website. The research shows systematic association between Gender
andSuffering from backache problem due to long online shopping hours and Uncomfortable
feeling on thought of purchasing online .The research shows systematic association between
Qualification and Doubt about the performance of the product or brand as expected, Fear of
personal information being sold or rented without consent, Fear of choosing poor
product/service, Worry that friends would think that I am trying to show off by purchasing online
and Bodily discomfort due to poor fitting while purchasing apparels.The research is showing
systematic association between Monthly Income and Doubt about the performance of the
product or brand as expected, Fear of personal information being sold or rented without consent,
Fear of choosing poor product/service, Worry that friends would think that I am trying to show
off by purchasing online and Bodily discomfort due to poor fitting while purchasing apparels.
The research shows systematic association between Marital Status and Fear of misuse of credit
card, Fear of on time delivery after payment, Doubt about the performance of the product or
brand as expected, Fear of choosing poor product/service and Uncomfortable feeling on thought
of purchasing online The research is showing systematic association between Family Type and
Fear of misuse of credit card .Result of Factor analysis reveals certain broad dimensions for
customer‘s perception about risk in internet shopping which shows five factors. Factor 1
Perceived Time Loss and Functional Risk contained four attributes explained 24.836% of
variance in the data, with the eigen value of 3.477 and reliability of 74%. The attributes
associated with this factor dealt with Fear of on time delivery after payment, Fear that the
delivered products would not match those described on the Website, Fear of choosing poor
product/service and Bodily discomfort due to poor fitting while purchasing apparels. Factor 2
Perceived Risk of Performance and Privacy Risk accounted for 12.314% variance in the data
with eigenvalue 1.724 and reliability of 70.20%. This factor loaded with No possibility for
"touch, feel or see" actual product to assess quality, Doubt about the performance of the product
or brand as expected and Fear of personal information being sold or rented without consent.
Factor 3 Perceived Psychological Risk loaded with four attributes. This factor accounted for
9.301% of the variance, with an eigenvalue of 1.302 and reliability of 78%. These attributes were
Worry that friends would think that I am trying to show off by purchasing online, and
Uncomfortable feeling on thought of purchasing online. Factor 4 Perceived Physical Risk
contained five attributes that referred interpersonal relationship. This factor explained 8.477% of
variance with an eigenvalue of 1.187 and reliability of 82%. These attributes were suffering from
backache problem due to long online shopping hours and Fear of developing eyestrain problem.
Factor 5 Perceived Social Risk consists of only one variable i.e., Fear of social isolation and
losing social contacts and it explains 7.268% of variance with an eigenvalue of 1.018.
Major findings regarding Trust Respondents have on Online
merchants/Internet Shopping
The research shows systematic association between Age and I am never overcharged by Internet
merchants during sales transactions, If there is any problem with my transaction Internet
merchants will go out of their way to help me, Internet merchants always keep promises and
commitments, I feel that Internet merchants are likely to care for my welfare and Internet
merchants act sincere in their dealings.
The research shows systematic association between Profession and Ifthere is any problem with
my transaction Internet merchants will go out of their way to help me, Internet merchants always
keep promises and commitments, I feel that Internet merchants are likely to care for my\ welfare
and Internet merchants act sincere in their dealings .
The research shows systematic association between Gender and If there is any problem with my
transaction n Internet merchants will go out of their to help me, In merchants always keep
promises and commitments, I feel that Internet merchants are likely to care for my welfare and
Internet merchants act sincere in their dealings.
The research does not show any systematic association between and Trust in Internet
shopping.The research shows systematic association between Monthly Income andInternet
merchants have sufficient expertise and resources to do business on the Internet .The research
shows systematic association between Marital Status and I am never overcharged by Internet
merchants during sales transactions, If there is any problem with my transaction, Internet
merchants will go out of their way to help me, Internet merchants always keep promises and
commitments, I feel that Internet merchants are likely to care for my welfare and Internet
merchants act sincere in their dealings .The research does not show any systematic association
between Family Type and Trust in internet shopping .Result of Factor analysis reveals two
factors for measuring trust respondents have on online merchants/internet shopping. Factor 1
Initial Trust measures the variables I am never overcharged by Internet merchants during sales
transactions, If there is any problem with my transaction internet merchants will go out of their
way to help me, Internet merchants always keep promises and commitments, I feel that Internet
merchants are likely to care for my welfare and Internet merchants act sincere in their dealings
have loading of 0.634, 0.612, 0.816, 0.683, and 0.780 on factor 1. This suggests that factor 1 is a
combination of these five attributes explained 35.620% of variance in the data with the eigen
value of 2.850 and reliability of 74%. Factor 2 Perceived Reputation accounted for 17.078%
variance in the data with eigen value 1.366 and reliability of 70.20%. This factor loaded with
Most Internet merchants have a good reputation, In general I cannot rely on Internet vendors to
keep the promises that they make and Internet merchants have sufficient expertise and resources
to do business on the Internet have a loading of 0.599, 0.632, and 0.701 respectively.
Major findings regarding reasons for reluctance to internet shopping.
1. The research shows systematic association between Age and I amworried about giving
out my credit card number, I don't have a credit card, I don't like providing personal
information and I don't know but I amuncomfortable about purchasing through Internet.
2. The research shows systematic association between Profession and I am worried about
giving out my credit card number, I don't have a credit card, I don't like providing
personal information and I don't know but I am uncomfortable about purchasing through
Internet The research shows systematic association between Gender and I am worried
about giving out my credit card number, I don't like providing personal information and I
don't know but I am uncomfortable about purchasing through Internet.
3. The research shows systematic association between Qualification and I don't know but I
am uncomfortable about purchasing through Internet.
4. The research shows systematic association between Monthly Income and I don't have a
credit card.
5. The research shows systematic association between Marital Status and Iam worried about
giving out my credit card number, I don't have a credit card and I don't like providing
personal information.
6. The research shows systematic association between Family Type and Iam worried about
giving out my credit card number.

CONCLUSION
In conclusion, having access to online shopping has truly revolutionized and influenced our
society as a whole. This use of technology has opened new doors and opportunities that enable
for a more convenient lifestyle today. Factor analysis results reveal that Experimental
Uniqueness, Customer Service and Convenience tend to be three significant dimensions as to
why customers prefer internet shopping. Electronic goods and Airline or Railway ticket
reservation tend to be the most sought after products bought online. Online shopping is a
different experience and one can make the shopping creative over the internet as one gets used to
it. There can be a lot of apprehensions about online shopping when one gets in to it for the first
time. As people experience more and more of it, those apprehensions get disappeared slowly.
The internet has become a major resource in modern business, thus internet shopping has gained
significance not only from the entrepreneur‘s but also from the customer‘s point of view. For the
entrepreneur, internet shopping generates new business opportunities and for the customer, it
makes comparative shopping possible. In turn, exposure to innovative online services and
opportunities has brought about lasting changes for professionals and families as well. In all
likelihood, these changes will probably intensify as the internet increasingly influences our way
of life. As such, because of its experimental uniqueness, online shopping will probably increase
to the point that it could easily be the principal purchasing tool of the future for most families.
In Nutshell, Online shopping has come to stay but it is not a threat to traditional shopping
because many consumers still value some of its features like quality of customer service, the
experience of trying and buying products, how products are displayed and so on. However, we
can say that most of the respondents are aware about internet shopping but not shopping online
as they enjoy going out for shopping and they don‘t like providing personal information.
Moreover, Factor analysis reveals that customers perceive Time-loss and Functional risk, Risk of
Performance & Privacy, Psychological risk, Physical risk and Social risk in doing internet
shopping. Initial level of trust of customers matter a lot in influencing internet shopping which
depends upon perceived reputation of internet merchants.
It is also important for all of us to understand how to shop online safely and wisely. This
research study has helped in understanding how many people are buying products and services
through online shopping, what is their buying behavior, whether they are placing trust in internet
shopping and what is their perception about risk in internet shopping. This research study has
given me aprecise knowledge about buying behavior of internet shoppers, preferences towards
internet shopping, risk perception and reasons for not shopping online.
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Online Shopping's Impact on the Environment

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CHAPTER 1

INTRODUCTION OF ONLINE SHOPPING

helps them to cut price, deliver quality and save environment.

of plastic bags and batteries.

External Analysis of Online Shopping Industry

efficiency increasing competitiveness and profitability by mitigating environmental impacts.

reduce costs and increase profits.

technologies related to internet security such as in Amazon.com shopping experiences are

warehouses and deliveries, Mega electric cars, etc.

issues related to online shopping.

affecting disrupting consumers shopping experience.

saved by insulation as well as improvement in technology. This keeps many substitution

companies open to competition for Schneider Electric.

reduce competition and increase their market.

diesel and electric vehicle.

Opportunities for Schneider Electric:

more while consuming lesser resources from our earth.

used by Argos to sell their products through mobile phone.

buy more from such industries.

human resources where the attrition rate is high.

and installation cost with superior network design.

Blackwell and Miniard, (1990) defines purchasing intention as a psychological process of

confidence and support of the consumers (Alzola et. al., 2006).

independent variables in the similar area of research will be presented here.

that defines purchasing intention as a psychological process of decision-making. According to

decision on certain products.

the availability of resources and opportunities. A person's interest in performing a particular

thing or event (Chen, Ching and Tsou, 2007).

products to suit their demand (Monsuwe, Delleart and Ruyter, 2004).

purchase in the internet. Product characteristic can be tangible or intangible; standardized or

and experience (Elliot, et. al., 2000).

easily when there is the presence of promotional offers.

demand, and increasing consumers' purchasing over time.

shoppers' excitement; increasing search efficiency by eliminating travelling costs and

psychological costs brings convenience in e-shopping.

stores refers to the economic shoppers or known as "problem-solvers".

efficiency by eliminating travelling costs and psychological costs brings convenience in e-

hours (Wolfinbarger and Gilly, 2001).

capability and make sure all operations can be completed online.

Perceived risk is defined as consumer experiencing consequences or the amount of uncertainty in

may be regarded as the consequences (Park and Stoel, 2005).

(Monsuwe, Dellaeart and Ruyter, 2004).

internet should be increased (Kuhlmeier and Knight, 2005).

Enjoyment and excitement

(Monsuwe, Delleart and Ruyter, 2004).

exciting and happy experience.

forget other problems, love for clothes, etc.

perceived entertainment will be regarded as enjoyment to them.

the excitement positively.

Regardless of online shopping or offline shopping, tangibility is expected to be a factor that

assurance is important to capture confidentiality, shopping security, complaint resolution,

difficult to market those products on the internet. (Lindstrom, 2001).

advice from sales personnel (Hansen and Jensen, 2009).

Here for analysing, we are considering two factors. That is:

Table : Gender wise respondents

Male Female Total

Graph : Gender wise respondents

Analysis and Interpretation:

Table : Age wise respondents

15 -25 25 -35 35 - 45 45 & above Total

Graph : Age wise respondents

Analysis and Interpretation:

Table : Occupation wise respondents