TABLE OF CONTENTS

SR. CHAPTERS CONTENTS PAGE

NO. NO.

1. Chapter - 1 INTRODUCTION 3-4

2. Chapter – 2 LITERATURE REVIEW 5-16

RESEARCH OBJECTIVES &
3. Chapter – 3 RESEARCH METHODOLOGY 17-19

4. Chapter - 4 DATA PRESENTATION 20-42

,INTERPRETATION &
HYPOTHESIS TESTING

5. Chapter - 5 RESEARCH FINDINGS 43

LIMITATIONS,
Chapter - 6 SUGGESTIONS AND
6. 44-46
CONCLUSION

7. Chapter - 7 BIBLIOGRAPHY 47

8. Chapter - 8 APPENDICES
 ABSTRACT

This study helps to investigate the relationship between the free shipping services
on the online purchasing behavior of customers. The Data has collected by
distributing the structured questionnaire among the respondents who presently
living in Bareilly city .Convenience sampling method was used with sample size of
125 individual for collection. Descriptive research design was used to analysis the
demographics. The result of this study offers insights and evidence about the
customer preference towards online shopping.

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 DECLARATION

We Group 2 ( Jaskirat Singh, Garvit Pagrani, Isha Bansal, Anshika Mohan) of PG 1 of LAL
BAHADUR SHASTRI INSTITUTE OF MANAGEMENT AND TECHNOLOGY Bareilly
hereby declare that the project titled “A study on the impact of free shipping service on the
online purchasing behavior of customers”has been prepared by us, under the guidance of
Mrs.Upasana Gupta.

We also declare that this is purely original work of us with declaration and effort.

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 INTRODUCTION OF THE TOPIC
With the growth of e-commerce, online shopping market has grown rapidly. When it comes to online
shopping, it also underlines the importance of shipping fees. From the firm’s perspective, it is
important but hard to design a shipping method to recover delivery cost and to attract customers.
From the consumer’s standpoint, shipping fees are a main reason why consumers decide to give up
purchasing online because they have to pay additional fees. In addition, the survey data shows that
online consumers prefer to buy more products when offering free shipping. Although the shipping
fees are important to the firms and consumers, only very sparse literature focus on shipping fee.
Further, the existing literatures do not compare FSQ (Free Shipping Quantity) to threshold-based free
shipping. In online shopping market, many firms are increasingly providing free shipping to
consumers when online consumers exceed the quantity or dollar threshold set by online firms. We
focus on two common online free shipping method in India, FSQ (Free Shipping Quantity) and
threshold-based free shipping.This study attempts to fill the research gap and contribute to the
handful studies by examine the two common free shipping method- FSQ and threshold-based free
shipping method With FSQ method, retail`ers waive the shipping fee when consumers reached a
specific quantity set by retailers, but charge a fixed fee otherwise. With threshold-based free shipping
method, retailers waive the shipping fee when consumers reached a specific dollar amount by
retailers, but charge a fixed shipping fee otherwise. The primary purpose of this study is to
experimentally examine how online consumers evaluate and their respond to the two different free
shipping methods. In addition, we consider other factors that may affect the effect of free shipping
method on consumers’ evaluations and choice, these factors include product price level and pick-up
methods.

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 About Industry
E-commerce is the activity of buying or selling of products on online services or
over the Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI),
inventory management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-mail.
Typical e-commerce transactions include the purchase of online books (such as
Amazon) and music purchases (music download in the form of digital distribution
such as iTunes Store), and to a less extent, customized/personalized online liq
uor store inventory services.[1] There are three areas of e-commerce: online
retailing, electric markets, and online auctions. E-commerce is supported by
electronic business.

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 LITERATURE REVIEW

2.1Shipping Fees and Product Assortment in Online Retail

1) Chaoqun Chen Cox School of Business Southern Methodist University

2) Donald Ngwe Harvard Business School Harvard University

September 21, 2018

Shipping fees are an important aspect of online retail for both consumers and sellers. A common fee
structure is contingent free shipping, in which consumers are granted free shipping for basket sizes
above a minimum value, and are charged a flat fee for orders below this threshold. We seek to
characterize how contingent free shipping influences purchase outcomes in a multi-category shopping
environment. We build a demand model in which consumers choose how to allocate their spending
over different product categories to maximize their direct utility under contingent free shipping. We
estimate model parameters using transaction data from a pure online fashion retailer. We find that,
relative to offering free shipping, offering contingent free shipping increases basket sizes by
encouraging consumers to meet the minimum order threshold. Consumers incur search costs to meet
this threshold exactly; sellers may benefit from maintaining high search costs to encourage
overshooting. Moreover, we find that contingent free shipping shifts demand to more popular
products, and that the effects of category-level price changes on profits depends on the active
shipping policy. Findings - demonstrate the importance of jointly determining product assortment
attributes and shipping fee policies.

Keywords - shipping fees, e-commerce, multi-category demand, search costs, shipping membership

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 2.2INFLUENCE OF DELIVERY CHARGES AND TIME ON ONLINE PURCHASE
DECISION 1E. Noble Kennedy and. 2Gautam Kumar Kundu 1,2VITBS, Vellore Institute of
Technology, Vellore -14

OBJECTIVE - The purpose of the article to examine the influence of Delivery Charge (DC) and
Delivery Time (DT) in online Purchase Decision (PD). There are many key factors that influence
online purchase decision, this article helps to know about the delivery charge and delivery time of
supply chain services and its influence of online purchases.

Methodology -The research method used in this study were collected through convenience sampling,
overall 122 valid responses of 200 samples distributed survey were collected. Smart PLS used to test
the hypothesis.

Findings – It is found that Delivery Charge and Delivery Time positively significant and influence
the PD of online shopping. The two variables were prioritized Delivery Charge influence more than
the Delivery Time.

Keywords – Delivery charge, delivery time, online purchase decision, online shopping.

2.3THE EFFECT OF FREE SHIPPING METHOD ON CONSUMERS' ONLINE

EVALUATION AND PURCHASE DECISION

1) Yi-Ching Cheng Department of Marketing, National Chung Hsing University,Taichung,

Taiwan

2) Wen-Hsien Huang Department of Marketing, National Chung Hsing University Taichung,

Taiwan

how online consumers respond to the different free shipping methods. We focus on two of the most
prevalent free shipping method in Taiwan, FSQ (Free Shipping Quantity) and threshold-based free
shipping. In Study1, we first demonstrate that online consumers have a significant difference on
purchase intention and offer evaluation to the two different free shipping methods. Second, we

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demonstrate the interaction effects on purchase intention and offer evaluation. When the product
price is in a high level, FSQ generates higher purchase intention and offer evaluation than
threshold-based free shipping. In Study2, we demonstrate the interaction effects on purchase
intention, offer evaluation. When pick-up method has only one choice, FSQ generates higher
purchase intention and offer evaluation than threshold-based free shipping.

Keywords - Shipping fees; Free shipping; FSQ (Free Shipping Quantity); Threshold-based free
shipping; Online shopping

2.3Shipping Costs Heavily Affect Online Customer Behavior, Loyalty

June 5, 2012

Shipping costs are a key aspect of online shopping for consumers, and there is room for e-retailers
to improve on this front, according to a June 2012 report from comScore and UPS. The report finds
that while comparison shopping, shipping charges are almost as important to consumers as product
pricing (23% and 26%, respectively). And when it comes to the types of discounts and specials that
bring customers back to a retailer, free or flat rate shipping deals (54% combined) outweigh discount
(36%) and coupon (11%) deals. Despite the evidence demonstrating the importance of free or
discounted shipping, this factor topped the list of areas shoppers want to see improved by retailers,
cited by 58% of respondents. A significant proportion of consumers also see the need for retailer
improvement for ease of returns/exchanges (42%), variety of brands/products, and online tracking
ability (both at 38%).

The report notes that examining levels of customer importance and satisfaction reveals that ease of
making returns/exchanges is above-average in importance and below-average in satisfaction, while
the availability of free or discounted shipping is above-average in satisfaction and slightly
below-average in importance. This suggests that retailers should focus on their return policies first
before tackling their shipping policies.

Free Shipping Key to Customer Recommendations

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According to the “Online Shopping Customer Experience Study,” roughly two-thirds of customers
said that free shipping has either led them to recommend a retailer (63%) or would lead them to do
so (68%). This factor has led to more recommendations from customers than others such as
receiving a product when expected (41%), free returns (29%), and easy returns and exchanges
(28%).

Findings:

● 74% of the respondents rated their satisfaction with free/discounted shipping a top-2 box

score, behind other aspects such as ease of check-out (83%) and variety of brands/products

(82%). Just 65% were satisfied with the ease of making returns or exchanges.

● The most common number of days consumers are willing to wait for most purchases are 4-5,

or 6-7 (both at 29%).

● Almost 1 in 4 shoppers who abandoned their cart due to delivery time did so because no

estimated delivery date was provided.

● The economy ground option is both the most expected (78%) and most chosen (67%)

shipping option.

● 3 in 4 respondents agree that the provision of tracking information is an important service

every retailer should offer. The most popular shipment tracking service is email or text

notifications with a tracking number (45%).

● The best returns experience is based on a return label inside the box (62%), an easy-to-print

returns label (61%), and an automatic refund (57%). The most common complaints are

having to pay for return shipping (66%) and having to pay a restocking fee (43%).

About the Data: The Online Shopping Customer Experience Study, a report commissioned

by UPS, evaluates consumer shopping habits from pre-purchase to post-delivery. The study

is based on a comScore survey of more than 3,100 U.S. online shoppers.

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2.4 Comparative Study on Factors Influencing Online and Offline Shopping

(With Special Reference to Kanyakumari District of Tamil Nadu) I Dr.R.Sivanesan,

IIC.Monisha, IIIP.V. Babisha, IVS.A.Abisha I Head and Assistant Professor, St.Alphonsa
College of Arts & Science, Karinkal, Tamilnadu, India II,III,IV.B.Com, St.Alphonsa College of
Arts & Science, Karinkal, Tamilnadu, India

The study tries to recognize that, how consumer measure channels for their purchasing.
Specifically, it progresses a conceptual model that addresses consumer value perception for using
the internet shopping versus the traditional shopping. Earlier study showed that perceptions of price,
product quality, service quality and threat strongly impact perceived value and purchase intents in
the offline and online network. Observations of online and offline buyers can be evaluated to see
how value is constructed in both channels. It is hitherto to recognize what factors influence online
and offline shopping choice progression. The objective of this study is to provide an impression of
online shopping decision process by comparing the offline and online decision making and
identifying the factors that motivate customers to decide whether to do online shopping or go for the
offline shopping. Consumer’s shop when and where they want, where they are comfortable with the
products and the choice of shopping. The study finds that female are more into online shopping than
male. Since last two years as population are more aware of the technology the online shopping
increased immensely. The people from the age group 35 and above are less likely to do online
shopping because they are less aware of the technology. However the respondent said that they will
love to purchase from online shopping if only the price of the product is less than the market. They
revealed that it is fairly important to go for e-shopping.

Keywords Technology, consumer, online shopping, offline shopping, internet, purchasing behaviour

Key findings Of The Study The following are the important finds of the study. 50 online shoppers
(55 percent) are female, 40 offline shoppers (67 percent) are male. 40 online shoppers (45 percent)
are lies in the age group of 20 to 30 and 20 offline shoppers (34 percent) are lies in the age group
above 50 years. 60 online shoppers (67 percent) are live with nuclear family and 40 offline shoppers
(67 percent) are live with joint family. 60 online shoppers (67 percent) are married and 45 offline
shoppers (75 percent) are married. 49 online shoppers (54 percent) are dependent and 20 offline

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shoppers (33 percent) are dependent. 30 online shoppers (33 percent) earned below Rs.10000 and
30 offline shoppers (50 percent) earned below Rs.10000. Amazon obtained first rank (Mean score
4.211), Flipcart obtained second rank (Mean score 3.866), Snapdeal obtained third rank (Mean score
3.633) and last rank obtained by Myntra (Mean score 1.677). Among the offline shoppers, super
market obtained first rank (Mean Score 6.266), Margin Free Market obtained second rank (Mean
Score 6.250), Stores obtained third rank (Mean score 5.900), fourth rank obtained by petty shop
(Mean Score 5.750) and last rank obtained by Mall (Mean score 2.083). Among the online shoppers,
cloths obtained first rank (Mean score 4.422), second rank obtained by mobile phones (Mean Score
4.277), third rank obtained by cosmetics (Mean Score 4.211), fourth rank obtained by watch items
(3.633) and last rank obtained by medicine (Mean score 0.944). Among the offline shoppers, first
rank obtained by food items (mean score 6.666), second rank obtained by medicine (Mean score
6.416), third rank obtained by sanitary items (Mean score 6.266), fourth rank obtained by cloths
(Mean score 5.999) and last rank obtained by mobile phones (Mean score 4.750). Among the online
shoppers, first rank obtained by once in a week (Mean score 4.277), second rank obtained by
frequently (Mean score 3.833), third rank obtained by once in a month (Mean score 3.566), fourth
rank obtained by twice in a month (Mean score 3.333) and last rank obtained by yearly (Mean score
1.000). Among the offline shoppers, first rank obtained by daily (Mean score 6.750), second rank
obtained by once in a week (Mean score 6.583), third rank obtained by frequently (Mean score
6.500) and nobody is purchasing half early and yearly. Among the online shoppers, first rank
obtained by one plus one offer (Mean score 4.166), second rank obtained by sales advertisement
(Mean score 3.977), third rank obtained by discounts advertisement (Mean score 3.833), fourth rank
obtained by festival advertisement (Mean score 3.488) and last rank obtained by cash back offer
(Mean score 2.500). Among the offline shoppers, first rank obtained by additional product
advertisement (Mean score 5.933), second rank obtained by free gift advertisement (Mean score
5.750), third rank obtained by bomber prize offer advertisement (Mean score 4.266), fourth rank
obtained by festival advertisement (3.555) and last rank obtained by discount advertisement (Mean
score 3.283). Among the online shoppers, first rank obtained by NEFT transfer (Mean score 4.322),
second rank obtained by cash on delivery (Mean score 4.277), third rank obtained by net banking
(Mean score 4.166) and last rank obtained by credit card payment (Mean score 2.844). Among the
offline shoppers, first rank obtained by cash on delivery (Mean score 6.616), second rank obtained
by debit card (Mean score 6.433) and last rank obtained by credit card (Mean score 2.066)rds
Technology, consumer, online shopping, offline shopping, internet, purchasing behaviour Effect of
Attitudes, Subjective Norms, Perceived Behavioral Control and Domain Specific Innovativeness on
Online Buying

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2.5Deepal Joshi

Som Lalit Institute of Business Administration

(deepal2277@gmail.com)

Sarla Achuthan

B.K. School of Business Management

(sarlaachuthan@gmail.com)

Volume 9, Number 2

May 2015, pp. 107-132

The decision making process of consumers has changed in a big way with internet as an alternative
channel for shopping. Internet retailing or e-tailing or online buying, as it is popularly known, is
buying and/or selling of goods, services and information using internet as a medium (Turban, Lee,
King & Chung, 2000). The new wave of consumerism coupled with the urbanization and ever
increasing middle class with shift in their demographic and psychographic dynamics have driven
consumers to use retail websites to search for product information and/or make purchases (Prasad
& Aryasri, 2009). According to a Forrester research, it is estimated that e-commerce market in India
is expected to touch $8.8 billion by 2016 (Phadnis & Kurian, 2013).

Findings

Indian consumers’ online shopping behavior is influenced by social norms and its acceptance can be
attributed to the social beliefs about online shopping. Consumers prefer to use Web sites for
shopping if their social systems and groups have a positive opinion about its attributes. ‘Social
affiliation’ is important for consumers’ in online shopping acceptance. Consumers appear to be
comfortable with traditional shopping formats. This may be because traditional retail formats are not
faceless and they can easily interact with service staff. Interaction with service staff improves
consumers’ perceptions about service. Not all consumers are conversant with technology and online
Web sites appear complex and difficult to understand. The acceptance of Internet is dependent on

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the quality of Internet connections, accessibility, technology related laws, and power failures. Poor
technology infrastructure and lack of government support heightens consumers’ perception of risk
toward online Web sites. The findings support earlier research that collectivist societies are less
likely to adopt online shopping since they are influenced by groups, families, and friends in their
purchase behavior. The normative influence may be understood to play an important role in
instilling trust for online shopping Web sites. Indian consumers are guided by the social acceptability
about security and risk concerns of online transactions. Online shopping Web sites should have
offline system available for providing counseling, help, and support. The help desk option should be
active and easily accessible. This would instill confidence among consumers and make online
shopping socially acceptable and popular.

The study suggests domain specific innovativeness of an individual has a positive impact on his
intention to buy online in future. Young urban Indian population is likely to have the highest
inclination as an early adopter of technology and products. As the young urban Indian population
continues to grow, online buying of goods and services is likely to accelerate at a faster rate.
Television advertisements of online retailers in India will help the non-innovative traditional buyers
also to catch up with the concept of online buying in India.

2.6 Shopping Comfort as Perceived Benefit in Online Buying

Online shopping gives comfort in terms of taking as much time as one wants to for shopping. An
added advantage for online shoppers could be avoiding the embarrassment even if nothing is bought
after browsing the sites for many long hours and many a times. The same may not be possible with
brick and mortar stores. According to Sheth (1983), recreational shoppers are motivated by
shopping comfort which is provided by online shopping and therefore, shopping comfort can develop
a positive attitude for online shopping.

In the Indian context, Mishra (2009) suggests that shopping comfort provided by ease of use is a
complementary benefit in the pre-purchase search and evaluation stage for an online buyer in India.
Sarkar (2011) and Khare et al., (2012) also report that shopping comfort through ease of use is a
perceived benefit of online shopping in India, which builds a positive attitude for online buying. It
provides the flexibility to take as much time to shop and avoid the embarrassment if anything is not

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purchased. Both these shopping comfort elements are nowhere available through the brick and
mortar stores.

2.7 Shopping Enjoyment as Perceived Benefit in Online Buying

Enjoyment means that an online shopper perceives fun, pleasure and attractiveness in online
buying. Highly successful e-businesses tend to differentiate themselves by developing Web sites
that are pleasing to the eye and mind by presenting attractive, vivid, interesting, and exciting visuals,
illustrations, formats, and content throughout the shopping experience—from beginning to end.
(Anderson & Swaminathan, 2011) Studies have shown that individuals do not find it difficult to learn
to use websites for online shopping, if they find the process enjoyable (Venkatesh, 2000; Venkatesh
et al., 2002). Even if the content of the website is poor or it is difficult to search the website, if the
visitors find the website appealing and enjoyable, they consider it easy to use (Venkatesh et al.,
2002). Online shoppers may find online shopping attractive, fun to use and pleasure to browse
through, or it may be otherwise. They may also consider it like trying as a new experience.

In the Indian context, studies of Prasad and Aryasri (2009), Sarkar (2011) and Khare et al., (2012)
are worthy of mention. Prasad and Aryasri (2009) state that web shopping enjoyment influences the
consumer attitude towards e-tailing. In-store retail formats provide more benefits to consumers than
simply having merchandise readily available and helping them to buy it. It is indeed a place for
entertainment and social interaction and can be a stimulating experience for some people. As
against this, internet retail formats were limited in the degree to which they can provide
entertainment and social interaction experience. However, with increasing advances in technology
and communication, internet retailers are creating the most attractive and inventive web pages and
video clips. Online atmospherics research demonstrates that there is a positive relationship between
website design and shopping pleasure (Prasad & Aryasri, 2009).

Sarkar (2011) has used shopping enjoyment as a hedonic shopping motive to study its impact on
perceived benefits and perceived risks in online buying context. Khare et al. (2012) have used TAM
model to study the shopping enjoyment factor in an online buying situation in the Indian context.

2.8 Time and Convenience as Perceived Risk in Online Buying

Time/convenience risk includes the inconvenience incurred during online transactions, often
resulting from difficulty of navigation and/or submitting orders, or delays receiving products (GVU,
1998). Rajamma et al., (2009) have studied the reasons due to which online buyers abandon the

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shopping cart without closing sales. One important factor citied by that study is ‘transaction
inconvenience’.

In the Indian context, Mishra (2009) and Suresh and Shashikala (2011) have discussed time and
convenience as a perceived risk in online buying. Mishra (2009) mentions that effort during the
transaction and purchase stage and cost, efforts and time taken to return a product during the
post-purchase stage will create negative value for the online buyer in the Indian e-tailing context.
Suresh and Shashikala (2011) report that time risk associated with risk of product delivery on time is
a significant perceived risk in online buying context. This risk has a negative impact on the attitude
for online buying.

2.9 Attitude Towards Online Buying

Attitude has been discussed in a number of behavior studies. These studies include ‘The Theory of
Reasoned Action’ (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980), ‘Technology Acceptance Model’
(Davis, 1989), ‘Theory of Planned Behavior’ (Ajzen, 1985, 1991) and ‘Decomposed Theory of
Planned Behavior’ (Taylor & Todd, 1995). Attitude of an individual refers to a mental state involving
beliefs, feelings, values and dispositions that guide an individual to act in certain way. This act is
either for or against something (Ajzen, 1985). In terms of online shopping it refers to a consumer‘s
state of mind in terms of buying products or services on the Internet (Yang et al., 2003).

2.10 The 2018 Online Consumer Behavior Study

by Jack Loechner , Staff Writer @mp_research, May 25, 2018

Technology has dramatically changed the online experience for consumers, and, along with
this, digital platforms continue reshaping the way consumers interact and engage with each
other, as well as with online brands. This new reality has made capturing consumer
business and loyalty a bigger challenge than ever for eCommerce brands, says a new study
by Namogoo, the 2018 Online Consumer Behavior Study.

To better understand the state of contemporary consumers, the Namogoo study asked more
than 1,300 online shoppers about their shopping habits, what online and offline distractions

14
are competing for their attention, and what factors most influence them to embrace, or
abandon, their online shopping experience.

Key Findings:

● 44% of online shoppers use their smartphone to shop more than any other device.
Over half of consumers are doing their shopping online while simultaneously
performing other tasks competing for their attention.
● Prices and shipping fees are the most important criteria influencing shopping
decisions for more than 90% of respondents. Additionally, 77% cite shipping and
other extra fees as the main reasons they would abandon their online shopping cart.
For both mobile (63%) and desktop (53%) shoppers, having to enter the same
information twice was the top reason chosen as the most frustrating part of the
checkout process.
● Email is still a very efficient channel to recover cart abandonment as 38% of
respondents indicated they have returned to an eCommerce site to complete a
transaction after getting an email offering a discount on the products in their cart.
● 78% of consumers exposed to unauthorized injected ads, while shopping on an
eCommerce site view, that retailer in a negative light as a result. 62% feel these ads
mean the customer experience is not a priority for the retailer.
● Over 55% of respondents are likely to click on ads appearing on retailer sites that
offer the same product they’re looking at for a lower price. 80% of visitors who end
up purchasing elsewhere are likely to buy again from the site that lured them away.

The numbers revealed in this survey indicate that online shopping is a regular part of
consumers’ routines, and that a significant portion of online consumers are active shoppers.
Consumers are most likely to abandon an online shopping cart over shipping costs and
other extra fees.

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2.11Threshold free shipping policies for internet shoppers

•This study examines how consumers evaluate and respond to threshold free shipping (TFS)
policy.

•A piece-based TFS results in a higher intention to shop than a dollar-based TFS.

•The effect of TFS is attenuated when the shipping charge information is present.

•When the duration for a promotion is short, the effect of TFS is diminished.

•Offer evaluation mediates the effect of TFS policy on intention to shop.

This study examines how consumers evaluate and respond to two economically equivalent but
different forms of threshold free shipping (TFS) policy: piece-based or dollar-based (e.g.,
Regular: $25; free shipping on orders of “4 items” as opposed to “$100”) offered by an online
store. We first demonstrate that a piece-based TFS will result in a higher intention to shop than
a dollar-based TFS. However, this effect is attenuated when information about the shipping
charge is present (e.g., “$4.99 flat rate shipping. Free shipping on orders of ___”) or when the
time restriction for the TFS policy is short (e.g., “today only”). Finally, the effect of the TFS
policy on intention to shop is shown to be mediated by the consumer’s evaluation of the offer.
The observations have important implications for internet retailers.

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OBJECTIVES OF THE STUDY
1) Impacts of free shipping method on customer purchasing decisions.

2) To study the customer preference towards online shopping.

3) To measure the satisfaction level of customers.

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RESEARCH METHODOLOGY
The Research Design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.

The research design used here is Descriptive Research Design. Descriptive research studies are
those studies which are concerned with describing the characteristics of a particular individual, or
of a group.

The Cross-Sectional Study is used here in descriptive research design. Cross-sectional studies
measure units from a sample of the population at only one point in time.

In cross-sectional study used here is a Single Cross-Sectional Design. In single cross-sectional

designs only one sample of respondents and information is obtained from this sample only once.
These designs are also called sample survey research designs.

SOURCES OF DATA COLLECTION

Primary data: The data which is collected from its source of origin is called primary data. The
primary data for this study has been collected directly from consumer through structured
questionnaire.

Secondary data: Secondary data means data that are already available i.e., they refer to the data
which have already been collected and analyzed by someone else.

The secondary data for the study has been collected from various journals, magazines, websites etc.

Sample Size
The sample size is of 125 individuals.

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 Sample Unit
Once the sampling unit is determined sampling frame has to be prepared so that each and every
one in the target population has an equal chance of being sampled.

Sampling Area
A sample area is an individual who are residing in Bareilly.

Data Analysis Technique

For the purpose of the study, the researcher selected convenience sampling.

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Data Presentation & Interpretation

20
Interpretation-

The above figure shows that out of 125 respondents 51.2% of respondents are male and other
48.8% respondents are female.

Interpretation-

The above table and figure shows that out of 125 respondents, 0.8% of respondents are

1-10 year old, 8.0% of respondents are 11-20 year old, 73.6% of respondents are 21-30

year old, 0.8% of respondents are 30-40 year old , 8.0%% of respondents are 40+ year old.

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Interpretation

The above table and figure shows that out of 125 respondent, 2.4% of respondents are

unemployed, 9.6% of respondents are the businessman, 6.4% of respondents are home

maker, 27.2% of respondents are professional, 53.6% of respondents are students and 0.8%of
respondents are retired.

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Interpretation

The above table and figure shows that out of 125 respondents, 34.4% of respondents are

having income under 1 lakh, 58.4% of respondents are having income between 1-10 lakh,

6.4%of respondents are having income between 10-50 lakh, 0.8% of respondents are having income

1 crore above.

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Interpretation

The above table and figure shows that out of 125 respondents 88.8% of respondents prefer online
shopping and 11.2% does not prefer online shopping.

Interpretation

The above table and figure shows that out of 125 respondents 77 respondents shop online once in a
month, 16 respondents shop online for more than 3 times in a month and 25 respondents shop
online for 2-3 times in a month..

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Interpretation

The above table and figure shows that out of 125 respondents 36 respondents spend 1000-1500 in
a month , 25 respondents spend more than 2000 in a month , 37 respondents spend less than 1000
in a month and 20 respondents spend 1500-2000 in a month.

Interpretation

The above table and figure shows that out of 125 respondents 55 respondents never buy Books/
magazines , 28 respondents occasionally buy Books/ magazines , 16 respondents sometimes buy
Books/ magazines , 12 respondents often buy Books/ magazines and 2 respondents always buy
Books/ magazines online.

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Interpretation

The above table and figure shows that out of 125 respondents 22 respondents never buy
electronics , 41 respondents occasionally buy electronics , 23 respondents sometimes buy
electronics , 16 respondents often buy electronics and 13 respondents always buy electronics online.

Interpretation

The above table and figure shows that out of 125 respondents 7 respondents never buy clothing ,
36 respondents occasionally buy clothing , 30 respondents sometimes buy clothing , 25
respondents often buy clothing and 18 respondents always buy clothing online.

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Interpretation

The above table and figure shows that out of 125 respondents 38 respondents never buy food &
beverages , 16 respondents occasionally buy food & beverages , 31 respondents sometimes buy
food & beverages , 12 respondents often buy food & beverages and 12 respondents always buy
food & beverages online.

Interpretation

The above table and figure shows that out of 125 respondents 84 respondents never buy services ,
13 respondents occasionally buy services , 7 respondents sometimes buy services, 4 respondents
often buy services and 5 respondents always buy services online.

27
Interpretation

The above table and figure shows that out of 125 respondents 95.8% of respondents consider free
shipping facility while purchasing online and 4.2% does not consider free shipping facility while
purchasing online.

Interpretation

The above table and figure shows that out of 125 respondents 16.9% of respondents say that they
may be comparing shipping charges while shopping online and 21.2% of respondents say that they
do not compare shipping charges while shopping online and 61.9% of respondents say that they
compare shipping charges while shopping online

28
Interpretation

The above table and figure shows that out of 125 respondents 78.6% of respondents say that they
wait for online seasonal sale to shop and 21.4% of respondents say that they do not wait for online
seasonal sale to shop.

Interpretation

The above figure shows that out of 116 respondents 32 respondents say that free shipping factor
influence them the most , 13 respondents say that customer service factor influence them the most ,
29 respondents say on time delivery date factor influence them the most ,30 respondents say that
easy refund policy factor influence them the most and 12 respondents say that variety of payment
option factor influence them the most .

29
Interpretation

The above table and figure shows that out of 125 respondents 55 respondents agree (highest) and
5 strongly disagree (lowest) with the above written statement .

Interpretation

The above table and figure shows that out of 125 respondents 43 respondents agree (highest) and
4 strongly disagree (lowest) with the above written statement .

30
Interpretation

The above table and figure shows that out of 112 respondents 48 respondents agree (highest) and
6 strongly disagree (lowest) with the above written statement .

Interpretation

The above table and figure shows that out of 112 respondents 43 respondents agree (highest) and
4 strongly disagree (lowest) with the above written statement .

31
Interpretation

The above table and figure shows that out of 112 respondents 48 respondents agree (highest) and
6 strongly disagree (lowest) with the above written statement .

Interpretation

The above figure shows that out of 112 respondents 53 respondents agree (highest) and 1 strongly
disagree (lowest) with the above written statement .

32
Interpretation

The above figure shows that out of 112 respondents 44 respondents agree (highest) and 8 strongly
disagree (lowest) with the above written statement .

Interpretation

The above figure shows that out of 125 respondents 37 respondents agree (highest) and 2 strongly
disagree (lowest) with the above written statement .

33
Interpretation

The above figure shows that out of 112 respondents 47 respondents agree (highest) and 2 strongly
disagree (lowest) with the above written statement .

Interpretation

The above figure shows that out of 112 respondents 41 respondents disagree (highest) and 2
strongly disagree (lowest) with the above written statement .

34
Interpretation

The above figure shows that out of 109 respondents 39 respondents agree (highest) and 7 strongly
disagree (lowest) with the above written statement .

Interpretation

The above figure shows that out of 109 respondents 61 respondents agree (highest) and 4 strongly
disagree (lowest) with the above written statement

35
Interpretation

The above figure shows that out of 109 respondents 61 respondents agree (highest) and 2 strongly
disagree (lowest) with the above written statement .

Interpretation

The above figure shows that out of 109 respondents 67 respondents agree (highest) and 3 strongly
disagree (lowest) with the above written statement.

36
Interpretation

The above figure shows that out of 84 respondents 27 respondents agree (highest) and 8 strongly
disagree (lowest) with the above written statement.

Interpretation

The above figure shows that out of 84 respondents 35 respondents disagree (highest) and 1
strongly agree (lowest) with the above written statement.

37
Interpretation

The above figure shows that out of 84 respondents 23 respondents agree (highest) and 4 strongly
disagree (lowest) with the above written statement.

Interpretation

The above figure shows that out of 84 respondents 34 respondents agree (highest) and 3 disagree
(lowest) with the above written statement.

38
Interpretation

The above figure shows that out of 84 respondents 28 respondents strongly disagree (highest) and
1 strongly agree (lowest) with the above written statement.

Interpretation

The above figure shows that out of 125 respondents most prefered online website is amazon and
least prefered online website is ebay.

39
HYPOTHESIS TESTING
For analysing data we have used here,” KIEZ SQUARE TEST” i.e Non Parametric test . We have
also examined that whether the conditions for applying kiez square test are fulfilled.

1. Is there any significant relationship between gender of respondents and their preference
for online shopping

NULL HYPOTHESIS - THERE IS NO SIGNIFICANT RELATIONSHIP BETWEEN GENDER OF

RESPONDENTS AND THEIR PREFERENCE FOR ONLINE SHOPPING

ALTERNATE HYPOTHESIS - THERE IS SIGNIFICANT RELATIONSHIP BETWEEN GENDER OF

RESPONDENTS AND THEIR PREFERENCE FOR ONLINE SHOPPING

We have taken level of significance 5%.

PREFER ONLINE DON’T PREFER

SHOPPING ONLINE SHOPPING

MALE 59 5 64

FEMALE 52 9 61

TOTAL 111 14 125

O E O-E (O-E)(O-E) (O-E)(O-E)|E

59 56.832 2.168 4.7 0.083

5 7.168 -2.168 4.7 0.656

52 54.168 -2`168 4.7 0.087

9 6.832 2.168 4.7 0.688

Kiez square 1.514

value

40
Degrees of freedom

(no. of rows - 1)*(no. Of column)

(2-1)*(2-1)

=1

Table or standard value = 3.84

Since, calculated value is less than std value, we should accept the null hypothesis that there is no
significant relation between gender and online shopping preference .

2. There is any significant relationship between income level of respondents and behavior
towards comparison of shipping charges

NULL HYPOTHESIS - THERE IS NO SIGNIFICANT RELATIONSHIP BETWEEN INCOME LEVEL

OF RESPONDENTS AND THEIR BEHAVIOR TOWARDS COMPARISON OF SHIPPING
CHARGES.

ALTERNATE HYPOTHESIS - THERE IS NO SIGNIFICANT RELATIONSHIP BETWEEN INCOME

LEVEL OF RESPONDENTS AND THEIR BEHAVIOR TOWARDS COMPARISON OF SHIPPING
CHARGES.

We have taken level of significance 5%.

DO YOU COMPARE ONLINE SHOPPING

INCOME LEVEL YES MAYBE NO

1CR ABOVE 1 0 0 1

1LAKH-10LAKH 45 10 15 75

10LAKH-50LAKH 5 2 1 8

UNDER 1 LAKH 22 8 9 39

41
 O E O-E (O-E)(O-E) (O-E)(O-E)|E

1 0.59 0.41 0.168 0.284

0 0.16 0.16 0.025 0.1560.2

0 0.20 0.20 0.04 0.2

45 44.51 0.49 0.240 0.005

10 12.19 2.19 4.796 0.393

15 15.24 0.24 0.057 0.003

5 4.74 0.26 0.067 0.014

2 1.3 0.7 0.49 0.376

1 1`62 0.62 0.384 0.237

22 23.14 1.14 1.299 0.056

8 6.34 1.66 2.755 0.434

9 7.92 1.08 1.664 0.210

Kiez square 2.368

value

Degrees of freedom

(no. of rows - 1)*(no. Of column)

(4-1)*(3-1)

=6

Table or standard value =12.6

Since, calculated value is less than std value, we should accept the null hypothesis that there is no
significant relation between income level of respondents and their behavior towards comparison of
shipping charges.

42
 Findings
● According to most (88.8%) respondents, prefer online shopping.
● According to most of the respondents, shop online once a month or less.
● According to most of the respondents, spend less than 1000 on online shopping a
month.
● According to most of the respondents, never buy books/magazines, food &
beverages Services (legal, insurance,etc.), ; occasionally buy electronics, clothing
online.
● According to most of the respondents,prefer Amazon site for online shopping.
● According to most of the respondents,free shipping factor influences the most.
● According to most (78.6%) respondents, wait for online seasonal sale to shop.
● According to most (61.9%) respondents, compares shipping charges while shopping.
● According to most of the respondents, neutral about shop online as they can shop in
privacy of home;shop online as they don't have to leave home for shopping; shop
online as they can get detailed product information online, user/expert reviews of
the product and online shopping for buying product which are otherwise not easily
available in the nearby market or are unique(new).
● According to most of the respondents, free shipping helps in increasing purchase
quantity, on time delivery gets suffered due to free shipping, free shipping makes
shopping more convenient, don't think quality of packaging affected by free
shipping.
● According to most of the respondents, shop more often with that site, recommend
that site to a friend, give positive feedback and prefer that site for other products if
an e-commerce site offers them free shipping.
● According to those respondents, who do not prefer online shopping as they think
that they can not get to examine the product, there is no free return shipment
service available, there is No money back guarantee, do Not like being charged for
shipping .

43
LIMITATIONS OF STUDY

● The data is collected from a small sample of 125 individuals.

● Time period in which the data is collected is between March to April.

● The study is done for only the Bareilly region.

● Convenient sampling technique has been used and hence the samples are
not the true representation of the universe.

● Personal bias and prejudices of the respondent could have affected the
result of the study.

● Some question has not been answered by some respondents.

44
 Suggestions

Based on the resultant outcome of the project, the following suggestions have been
Highlighted.

● Many respondents buy during seasonal sale. Therefore, online retailers has to provide
more offers ; discounts during seasonal sale.

● The online retailer have to concentrate on these attributes to attract more

Consumers towards their e-commerce websites.

● Most of the respondents do not have knowledge about the e-commerce websites.

It must be boosted through advertisements. Offers and discounts provided to customers

must be improved .

● As quality is an important aspect of a product it should be maintained always.

● It is also seen from the project that customer prefer products with color variation

and design style and features. The manufacturers and e-commerce website management
should have clear conception on various products aspects and customer requirements and
they should place the products to the customer accordingly.

● Need to provide new features in e-commerce websites.

45
 Conclusion
This survey report comes to the conclusion that people are preferring Online
shopping , Due to rise of better standard of living and better internet facility
more consumer are preferring Online shopping. People wait for Online
seasonal sale. Larger penetration of internet services and social media are
making consumers much more aware about various e-commerce websites and
latest trends they can compare online free shipping charges and various
offers. This shift in consumers’ psychology that now they have more
knowledge about the free shipping charges that different e-commerce websites
are giving. People do online shopping as they can not get the product easily in
the nearby market. Finally, it can be concluded that free shipping is the one of
the important factor that people do online shopping and it is very important
to know the customers buying behavior process and customers’ requirements
properly.

46
 BIBLIOGRAPHY

● Chen, C., & Ngwe, D. (2018). Shipping Fees and Product Assortment in
Online Retail. Harvard Business School
● Cheng, Y. C., & Huang, W. H. (n.d.). THE EFFECT OF FREE SHIPPING
METHOD ON CONSUMERS' ONLINE EVALUATION AND PURCHASE
DECISION.
● Huang, W. H., & Cheng, Y. C. (2015). Threshold free shipping policies for
internet shoppers. Transportation Research Part A: Policy and Practice, 82,
193-203.
● Kennedy, 1., & Kundu, 2. K. (2018). INFLUENCE OF DELIVERY CHARGES
AND TIME ON ONLINE PURCHASE DECISION. INFLUENCE OF DELIVERY
CHARGES AND TIME ON ONLINE PURCHASE DECISION,118(18), 4393-4404.
Retrieved from https://ijpam.eu/.
● D., I., P., & V. (2017). Comparative Study on Factors Influencing Online and Offline
Shopping. International Journal of Research in Management & Business Studies,4(3
(SPL 1)).

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