RESEARCH PROJECT REPORT

On

TO STUDY YOUNG CONSUMER PREFERENCE TOWARDS ONLINE SHOPPING FOR MOBILE

PHONES

Towards partial fulfillment of

Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
KAUSHAL PANDEY
IV Semester
Roll No- 1180672055

Session 2019-2020
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

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 DECLARATION

I hereby declare that the research report entitled “TO STUDY YOUNG CONSUMER PREFERENCE

TOWARDS ONLINE SHOPPING FOR MOBILE PHONES,” submitted to the Babu Banarasi Das

University Lucknow, is a record of an original work done by KAUSHAL PANDEY, under the guidance of

Mr. Saiyid Saif Abbas Abidi, in partial fulfillment of the requirements for the award of the degree of Master

in Business Administration. The results embodied in this research have not been submitted to any other

University or Institute for the award of any degree or diploma.

KAUSHAL PANDEY

Roll no: 1180672055

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 ACKNOWLEDGEMENT

It is with immense pleasure that i take this opportunity to express my sincere thanks to my respective lecturers

and report guide Mr. Saiyid Saif Abbas Abidiof Babu Banarasi Das University Lucknow, under whose

guidance this entire research report was done. I express my profound sense of gratitude for his encouragement,

observations, suggestions and kind co- operation in designing and bringing out this dissertation work

successfully.

My sincere thanks to our dean Mr. Shushil Pandey of Babu Banarasi Das University Lucknow, for providing

me the necessary infrastructural facilities required to carry out this dissertation work.

I would like to acknowledge and thank the authority of Arshita Dental Services Private Limited, Lucknow

for providing me the necessary documents, supporting and encouraging me to work and learn under their

guidelines to complete my research.

Finally, i am very grateful to my parents, friends and well-wishers who has been constant inspiration which

enable me to reach this exuberant of my life.

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 EXECUTIVE SUMMARY

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

marketers know the factors affecting online Indian behavior, and the relationships between these

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

convert potential customers into active ones, while retaining existing online customers.

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

while shopping online. This research found that information, perceived usefulness, ease of use;

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

consumer perceptions of Online purchasing.

Consumer behavior is said to be an applied discipline as some decisions are significantly affected

by their behavior or expected actions.The two perspectives that seek application of its knowledge

are micro and societal perspectives.

Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved

into a global phenomenon. Many companies have started using the Internet with the aim of cutting

marketing costs, thereby reducing the price of their products and services in order to stay ahead

in highly competitive markets.

Companies allows the Internet to convey, communicate and disseminate information, to sell the

product, to take feedback and also to conduct satisfaction surveys with customers.

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 TABLE OF CONTENTS

S.NO PARTICULARS PAGE

01 Introduction 08
02 Online shopping in India 9-10
03 E-commerce Industry in India 11-14
04 History of online shopping 15-18
05 Top Indian E-commerce site in 2019 19-23
06 Top Global E-commerce site in 2019 24-28
07 Drivers of E-commerce growth 29-30
08 Objective of the study 31-32
09 Scope of the study 33-34
10 Research design 35-37
11 Data Analysis and Interpretation 38-52
12 Findings 53
13 Conclusion 54
14 Limitations of the study 55
15 Suggestion and recommendation 56
16 Bibliography 57
17 Annexure 58-60
INTRODUCTION
TO THE
TOPIC
 INTRODUCTION

Mobile phones have become an inevitable part of personal communication today. Majority of the

people, irrespective of their age, income and geographic location, have accepted it as a necessary

aspect of their day to day lives. Mobile phone industry all over the globe is currently passing through

a turbulent business environment due to heightening competition as well as the continuous changes in

the tastes, preferences and requirements of the customers. Due to this, the players in the industry

constantly engage in innovation and differentiation to meet and satisfy consumer preferences.

However, the consumer behaviour literature has very few studies that uncover the underlying motives

and choices of consumers during mobile phone purchase process.

During the introduction stage, mobile phones were used solely for communication. With technological

innovations, advancements and convergence of features of other industries, the functionality of the

product has gone beyond imagination. The industry is very dynamic and new models are introduced to

the market almost on a weekly basis. Availability of 3G and 4G networks and evolution of smart

phones have made mobile phones more of a personal digital assistant. Beyond voice, the major trends

shaping the mobile culture have been identified to be (a) communication services such as voice, text

and pictures; (b) wireless internet services such as browsing and e mail; and (c) different media

services such as motion pictures, games and music (Hansen, 2003). With internet access enablement

in mobile phones, they have become one step closer to personal computers.

It explores the factors influencing consumer preference towards mobile phones and investigates the

reasons that trigger the purchase of new ones. The brand loyalty of consumers is explored and the

influence of gender on purchase choice is examined. The preferences of consumers can, to a larger

extent, impact the technology push driven mobile phone industry in creating new models and adding

innovative features to satisfy them.

Internet is changing the way consumers shop and buy good sand services, and has rapidly evolved into

a global phenomenon. Many companies have started using the Internet with the aim of cutting

marketing costs, thereby reducing the price of their products and services in order to stay ahead

in highly competitive markets. Companies also use the Internet to convey communicates and disseminate

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

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

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

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

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique

opportunity for companies to more efficiently reach existing and potential customers .Although most of

the revenue of online transactions comes from business-to-business commerce, the practitioners of

business-to-consumer commerce should not lose confidence .It has been more than a decade

since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic

commerce constantly strive to gain an improved insight into consumer behavior in cyberspace.Along

with the development of E-retailing, researchers continue to explain E- consumers behavior from

different perspectives. Many of their studies have posited new emergent factors or assumptions

which are based on the traditional models of consumer behavior, and then examine their validity in

the Internet context.

 ONLINE SHOPPING IN INDIA

The birth and growth of Internet has beenthe biggest event of thecentury.E-commerceinIndia has

come a long way from a timid beginning in the 1999-2000 to a period where one can sell and find

all sorts of stuff from a high end product to a meager peanut online. Most corporations are using

Internet to represent their product range and services so that it is accessible to the global market and

to reach out to a larger range of theiraudience.

Computers and the Internet have completely changed the way one handles day-to-day

transactions;online shopping is one of them. The Internet has brought about sweeping changes in

the purchasing habits of the people. In the comfort of one's home, office or cyber cafe or anywhere

across the globe, one can log on and buy just about anything from apparel, books, music, and

jewellery to digital cameras, mobile phones, MP3 players, video games, movie tickets, rail and

air tickets. Ease, simplicity, convenience and security are the key factors turning the users to

buyonline.

It is a fact that a great online shopping revolution is expected in India in the coming years. There

is a huge purchasing power of a youth population aged 18-40 in the urbanarea

 FEWFACTORSTHATBOOSTONLINESHOPPINGININDIA

 Rapid growth of Internet across India

 Access to Information

 The increase in number of computer and smart phone users

 Cheap availability of the internet services

 Middle-class population with spending power is ngrowing. There are about 400 million of

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

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

desires.
 E-commerce Industry in India

Introduction

The e-commerce has transformed the way business is done in India. The Indian e-commerce market is

expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much growth of the

industry has been triggered by increasing internet and smart phone penetration. The ongoing digital

transformation in the country is expected to increase India’s total internet user base to 829 million by

2021 from 560.01 million as of September 2018. India’s internet economy is expected to double from

US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce. India’s

E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020,

growing at an annual rate of 51 per cent, the highest in the world.

Market Size

Propelled by rising smart phone penetration, the launch of 4G networks and increasing consumer

wealth, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5
billion in 2017 Online retail sales in India are expected to grow by 31 per cent to touch US$ 32.70

billion in 2018, led by Flipkart, Amazon India and Paytm Mall.

During 2018, electronics is currently the biggest contributor to online retail sales in India with a share

of 48 per cent, followed closely by apparel at 29 per cent.

Investments/ Developments

Some of the major developments in the Indian e-commerce sector are as follows:

 Flipkart, after getting acquired by Walmart for US$ 16 billion, is expected to launch more

offline retail stores in India to promote private labels in segments such as fashion and

electronics. In September 2018, Flipkart acquired Israel based analytics start-up Upstream

Commerce that will help the firm to price and position its products in an efficient way.

 Paytm has launched its bank - Paytm Payment Bank. Paytm bank is India's first bank with zero

charges on online transactions, no minimum balance requirement and free virtual debit card

 As of June 2018, Google is also planning to enter into the E-commerce space by November

2018. India is expected to be its first market.

 E-commerce industry in India witnessed 21 private equity and venture capital deals worth US$

2.1 billion in 2017 and 40 deals worth US$ 1,129 million in the first half of 2018.

 Google and Tata Trust have collaborated for the project ‘Internet Saathi’ to improve internet

penetration among rural women in India

 According to EY, E-commerce and consumer internet companies in India received more than

US$ 7 billion in private equity and venture capital in 2018.

Government initiatives
Since 2014, the Government of India has announced various initiatives namely, Digital India, Make in

India, Start-up India, Skill India and Innovation Fund. The timely and effective implementation of

such programs will likely support the e-commerce growth in the country. Some of the major

initiatives taken by the government to promote the e-commerce sector in India are as follows:

 In order to increase the participation of foreign players in the e-commerce field, the Indian

Government hiked the limit of foreign direct investment (FDI) in the E-commerce marketplace

model for up to 100 per cent (in B2B models).

 In the Union Budget of 2018-19, government has allocated Rs 8,000 crore (US$ 1.24 billion)

to BharatNet Project, to provide broadband services to 150,000 gram panchayats

 As of August 2018, the government is working on the second draft of e-commerce policy,

incorporating inputs from various industry stakeholders.

 The heavy investment of Government of India in rolling out the fiber network for 5G will help

boost ecommerce in India.

 In February 2019, the Government of India released the Draft National e-Commerce Policy

which encourages FDI in the marketplace model of e-commerce. Further, it states that the FDI

policy for e-commerce sector has been developed to ensure a level playing field for all

participants. According to the draft, a registered entity is needed for the e-commerce sites and

apps to operate in India.

Achievements

Following are the achievements of the government in the past four years:
  Under the Digital India movement, government launched various initiatives like Udaan,

Umang, Start-up India Portal etc.

 Under the project ‘Internet Saathi’, the government has influenced over 16 million women in

India and reached 166,000 villages

 Udaan, a B2B online trade platform that connect small and medium size manufacturers and

wholesalers with online retailers and also provide them logistics, payments and technology

support, has sellers in over 80 cities of India and delivers to over 500 cities.

 According to the UN’s eGovernance index, India has jumped 11 positions to 107 in 2016 from

2018 in 2014.

 The government introduced Bharat Interface for Money (BHIM), a simple mobile based

platform for digital payments.

The e-commerce industry been directly impacting the micro, small & medium enterprises (MSME) in

India by providing means of financing, technology and training and has a favourable cascading effect

on other industries as well. The Indian e-commerce industry has been on an upward growth trajectory

and is expected to surpass the US to become the second largest e-commerce market in the world by

2034. Technology enabled innovations like digital payments, hyper-local logistics, analytics driven

customer engagement and digital advertisements will likely support the growth in the sector. The

growth in e-commerce sector will also boost employment, increase revenues from export, increase tax

collection by ex-chequers, and provide better products and services to customers in the long-term

The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass

the US to become the second largest e-commerce market in the world by 2034. The E-commerce

market is expected to reach US$ 200 billion by 2027 from US$ 38.5 billion in 2017. India's e-

commerce market has the potential to grow more than four folds to US$ 150 billion by 2022
supported by rising incomes and surge in internet users. Online shoppers in India are expected to

reach 120 million in 2018 and eventually 220 million by 2025. Average online retail spending in India

was US$ 224 per user in 2017.

E-commerce and consumer internet companies in India received more than US$ 7 billion in private

equity and venture capital in 2018. Online retail sales in India are expected to grow by 31 per cent to

touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall. Online retail is

expected to contribute 2.9 per cent of retail market in 2018.

Much growth of the industry has been triggered by increasing internet and smartphone penetration.

Internet penetration in India grew from just 4 per cent in 2007 to 34.42 per cent in 2017, registering a

CAGR of 24 per cent between 2007 and 2017. As of September 2018 overall internet penetration in

India was 42.87 per cent. The number of internet users in India is expected to increase from 560.01

million as of September 2018 to 829 million by 2021. Internet penetration in rural India is expected to

grow as high as 45 per cent by 2021 compared to the current rate of 21.76 per cent. The e-commerce

retail logistics market in India is estimated at US$ 1.35 billion in 2018 and is expected to grow at a 36

per cent CAGR over the next five years.

A young demographic profile, rising internet penetration and relative better economic performance are

the key drivers of this sector. The Government of India's policies and regulatory frameworks such as

100 per cent foreign direct investment (FDI) in B2B e-commerce and 100 per cent FDI under

automatic route under the market place model of B2C e-commerce are expected to further propel

growth in the sectors. As of August 2018, the government is working on the second draft of e-

commerce policy, incorporating inputs from various industry stakeholders. In February 2019, the

Government of India released the Draft National e-Commerce Policy which encourages FDI in the

marketplace model of e-commerce. Further, it states that the FDI policy for e-commerce sector has
been developed to ensure a level playing field for all participants. According to the draft, a registered

entity is needed for the e-commerce sites and apps to operate in India.
 HISTORY OF ONLINE SHOPPING

Online shopping is a form of electronic commerce wherebyconsumers directly buy goods or services

from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store,

Internet shop, web-shop, web-store, online store, or virtual store evokes the physical analogy of

buying products or services at a bricks-and-mortar retailer orshoppingcentre.Theprocess is

calledbusiness-to-consumer (B2C) online shopping. When abusiness buys from another business it

is called business-to-business(B2B) onlineshopping.

1979

Videotext was being researched since much earlier for supplyingthe end users with textual

information. Much work was done in UK on videotext, it was a two way message serviceand

developed basically for information sending where “many companies” were interested in, but on

the backdrop of all that Michael Aldrich in 1979 gave the “concept of teleshopping” (today

online shopping) which revolutionized the way businesses happen. Same happenedin the US

around that year with services like The Source andCompuServe.

1982

MinitelsucceededVideotext as onlineservice making online purchases, check share market, search

telephone directory and could even chat. This is one of the most successful services before

WWW usingtelephone lines; it was launched in France successfully but in UK as well but to

lesssuccess.
1987

With Swreg(offshoot of CompuServe) the community of software developers and shareware

authors got an online market where they could sell their product using “Merchant account”. Thus

online shopping started for then software industrypeople.

1990

Tim Berners-Lee wrote the World Wide Web and gave the first browser to view the web

which changed most of things; a whole new revolution started, which till date is ON.

1992

Revolutionary book by J.H. Snider and Terra Ziporynnamely; Future Shop: How New

Technologies Will Change the Way We Shop and What We Buy. St. Martin’sPress.

1994

Netscape released Navigator browser, later introduced Secure Sockets Layer (SSL) encryption

for secure transaction. Pizza Hut started online ordering on their webpage, cars, bikes and

adultcontent as well started selling on theinternet.

1995

Amazon.comstarted selling each and everything online, and along with that Jeff Bezos starts first

commercial-free 24 hour, internet-only radio stations. Then Radio HK and NetRadiostart broadcasting.

Companies like Dell and Cisco started using internet in all their transactions. Online auction started

byeBay.
1998

United States started selling Electronic postal stamps online wherein they could be purchased

and downloaded for print.

1999

Acquisition of Business.com by e-Companies in US $7.5 million. Napster the peer-to-peer file

sharing software launches. Home decorative items started selling on ATGStores.

2000

The dot-com bust as we knowit today wasn’tsomethingthathappenedinaday,over speculation for a

period of time (approx. 1995-2000) where justthe prefix “e-” or “.com” in names could make

stock prices rise at great rates. This saw a great many companies riseand fall.

Many entrepreneurs cameup with brilliant plans and most got pretty “generous” venture

capitalists, most of these firms started working on the principle “expand the market and later

profits will cover all present debts and losses.” This speculation was constantly taking the market

upwards with NASDAQ at a peak of 5132.52 points on March 10, 2000. After thisthe market

goes down and with them the over speculating ones were just wiped off themarket.

2002

PayPal the company which offered an alternative (through internet) to cash or check payment

was acquired by eBay for $1.5 billion. CSN Storesand NetShopswerefounded with theconcept of

domain specific commodity and sprung with many online stores, going for one item on each website.
2003

Online shopping matures showing to the world theirconfidence Amazon.composted first yearly

profit and thus again making presence on the stockmarket.

2007

Acquisition of Business.com by R.H. Donnelley for$345 million, making way forbigger

players in technologydomain.

2012

Tremendous growth in US in Ecommerce with salesfigures touching $204 billion, a decent 17%

rise from the previousyear.

2014

Online Retailer – Amazon.com has an estimated turnover on a dailybasis is over US $2.5 trillion
with growth rate of 14% annually. EBay having sales of US $1.89 billion, these numbers alone
speak.

2016

average online purchases are expected to increase by 78 percent in 2016 from 66 percent in

2015, due to attractive deals and aggressive marketing of ever-expanding range of merchandise

from clothes tojewellery,fromelectronicstobooks,"saidastudybyAssochamand international accounting

firm Price water house Coopers(PwC).

TOP 10 INDIAN E-COMMERCE WEBSITE IN 2019

SHOPPIN SITES

1. Flipkart.com

2. Amazon.in

3. Snapdeal.com

4. Jabong.com

5. Myntra.com

6. Localbanya.com

7. Homeshop18

8. Infibeam.com

9. Shopclues.com

10. Firstcry.com
This one has to come first hands down. The entire country is completely dependent on

Flipkart for nearly all their shopping needs. Flipkart sells everything from gift vouchers

to electronics to home appliances. In fact, statistics claim that there are more items on

flipkart than in a mall. Hence, Indians are heavily reliant on flipkart for all their

shopping needs.

A large number of people from India swear by the services of amazon. Amazon and

flipkart are always at war with each other and are always at close heels. Amazon has an

equally large number of products as flipkart. In fact, Amazon apparently sells more

than flipkart. Since amazon is an American company, it lacks the desi taste that would

be preferred by an Indian. It would be wise to indianise its Indian domain. It would

then be an instant hit amongst the masses

Snapdeal is a completely Indian website and is often preferred by the masses for its

cheap rates. It sells products at really low prices and hence, is a favourite of the masses.

It is a good idea to buy from Snapdeal if you are looking for absolutely cheap prices.

However, there have been times when consumers have complained of the products of

Snapdeal and hence, some of them stay away from Snapdeal.

 Jabong.com

Jabong is again an American brand but seems to be doing very well in India. It has a

large number of clothes and accessories for sale and is a complete paradise for those

who love shopping for clothes. It has all kinds of products from western wear to

desikurtis and it would be fun to sit home and shop for clothes on jabong. Jabong is

excessively preferred by women shoppers.

An equally large number of women favour myntra over jabong. Myntra also has a large

number of accessories and clothes on its online portal. It has a large number of
categories as well and one can buy from a category of their choices. From western to

ethnic to traditional, all kinds of clothes are sold on myntra.

This is a website meant for shopping groceries and is a blessing for working women. It

is also a blessing for the woman who is busy all the time. All of the grocery items are

available over here and one can buy according to their needs. From organic to inorganic

items, everything is available over here. Thus, localbanya.com is indeed one of the

leading grocery shopping sites in India.

This is an equally popular website amongst online shoppers. Those who do not mind

waiting a little extra for delivery at the reward of a lower price, order from here. A lot

of times, the cheapest of items and the remotest of items are easily found on

homeshop18.com. Thus, this site also has an equally large number of shoppers who are

loyalists. However, homeshop18 cannot be trusted when one is in an emergency. You’d

rather buy from one of the websites where they give express deliveries.
Infibeam.com is a place where you often find things that are not found anywhere else.

The rarest of things, the rarest of books and the rarest of electronics and many other

such items are easily found on infibeam.com. Infibeam.com has a long way to go

before it comes higher up the ranks but it definitely isn’t doing badly so far.

Shopclues is famous for their heavily discounted best shopping deals. Shopclues is one

of the best online stores that offers a wide variety of cameras, Computer accessories,

Mobile, Gift, Jewellery, Cosmetics, toys, clothes, books and bag.

Firstcry.com India’s largest store for Kids selling 70000+ items from 400+ top

International and Indian brands. FirstCry sells almost all the baby care products such as

diapers, toys, clothes, strollers, footwear’s

 5 Things Emerging As a Driver of E-Commerce Growth

1. Third-party logistics

Logistics plays a pivotal role in the creation of visibility in the e-commerce supply chain and

determines the overall satisfaction of the customers, efficiency and service delivery. Unfortunately,

logistics are very complex and very exhaustive. It also requires lots of expertise and a complex

network of several small systems.

These challenges or trends have led to the growth of supply chain within the industry. Third-party

logistics is now emerging as a key driver in the e-commerce in the country. Most online retailers are

finding it financially feasible to outsource the logistics component of the supply chain given its

complex and capital-intensive nature. The 3PL service providers are helping these retailers to become

efficient through superior service delivery.

There are a number of e-commerce companies with their eyes on e-commerce shipments with tools to

cater for the e-commerce industry. The companies offer storage maintenance, storage and delivery

reducing the requirement of maintaining warehouses and means of transport. They also reduce the risk

of damage when the goods are in transit.

2. Explosion in the mobile internet penetration

The adoption of the latest mobile technologies is playing a big role in the growth of e-commerce. The

need for ease when doing shopping on the go led to the growth of mobile shopping.
Growth in mobile online shopping has grown tenfold since 2014. In fact, the global smartphone sales

are growing each day against the fall in the unit prices. This has made the smartphones affordable

even to the low-income populations of the world. According to HootSuite, by April 2019, the mobile

internet penetration had grown by 66 percent bringing the number of unique mobile internet users to

4.960 billion against a world population of 7.497 billion. The highest growth in mobile internet usage

has been witnessed in second and third world economies.

Mobile internet penetration combined with increasing disposable income is driving more customers to

online mobile shopping. Moreover, customers are getting sharper and more informed about their

needs and available solutions than never before and trusting the online retail networks with their cash.

3. Increased range of payments for under banked shoppers

Unlike the first world, there is a huge population in the second and third world that are underbanked.

In a country like Brazil about a third of the adult population does not maintain a bank account. The

number is higher in many countries across Africa.

Large online payments platforms such as PayPal and Payoneer have expanded across the world.

However, there is still a gap as the services are not available across all the countries. This gap is filled

by local online payment processing platforms and mobile phone money transfer platforms such as

Mpesa in Kenya. China has stand-alone street terminals for use in making purchases.

There has also been a high growth of online wallets and crypto currencies and other digital currencies

that are making it possible to trade without worrying about exchange rates and country-specific

financial issues. The wide spectrum of options has made it easier for many people to buy online.
4. Increased political willingness and promotion of online trade

While the first world has been upbeat about online trade, there has been some bit of resistance and

controls in the most emerging market with governments keen at keeping the online trade under their

control. In addition, there have been several logistical challenges as often unnecessary inspection and

clearance procedures have been put at the point of entry into these markets.

However, by 2016, most governments in second and third-world countries have realized the benefits

that come with increased border trade thereby allowing and even promoting it. We have witnessed

lowering of customs, clearance procedures and other lengthy procedures that increased the delivery

time in many emerging markets. This has also been promoted by the increased use of technology at

the point of entry. Therefore more online retailers can ship to many parts of the world with ease.

5. Growth of Big Data

It has often been said that quality service comes from good analysis of customer needs and delivering

customer experience in your solutions. This cannot be far from the truth when it comes to e-

commerce. The delivery of quality solutions lies in analyzing the target market and delivering

solutions that exceed customer expectations. The challenge has always been that the customer is not

physically present and there is little chance to have a one-on-one with the customers.

Fortunately, the problem has been solved by the use of big data and AI. These tools have been a lot

useful in subscription online retail marketing where customers subscribe to items to be delivered at

given intervals. AI helps track the customer behavior online and lets the business determine the needs,

tastes and preferences of the customer. With the information, the e-commerce sites can tune their

offerings to match the exact needs and preferences of each customer.

LITERATURE
REVIEW
 LITERATURE REVIEW

From consumer behaviour perspective, a consumer passes through five steps during the purchase of

products such as need recognition, information search, evaluation of alternatives, purchase and post

purchase evaluation (Schiffman et al, 2015) [10]. The information search can be done through

different sources such as advertisements, word-of-mouth, reference groups, recommendations, social

media, etc. The consumers’ formulate their purchase decisions by the limited information search of

what they got rather than evaluating all possible alternatives (Moorthy et al., 1997) [9].

In case of mobile phone purchases, a consumer may go through all the five stages of rational decision

making or he may make quick purchase on account of hedonic considerations. The general belief is

that in case of utilitarian products, rational decision making is involved, whereas in case of hedonic

products, emotional decision making is involved. For mobile phone purchase, both rational and

hedonic considerations may drive consumers (Batra & Ahtola, 1991) [1]. The purchase decisions for

mobile phones mostly follow rational buying process, but in certain cases the decision may also be

influenced by symbolic preference associated with some brands. (Dorsch et al, 2000) It has been

observed that younger consumers value more hedonic features in mobile phones (Wilska, 2003) [12] .

While making the purchase decision, a consumer is influenced by several social, cultural and

economic factors surrounding him. The factors that determine mobile phone handset purchase vary

from one age to another, between male and female, one ethnic group to another and from various

psychographic and behavioural patterns. It is also noted that the all factors- whether technological,

design, brands, purposes and social reference groups played a role in influencing consumer behaviour

in selection of mobile phone handsets. (Ehtesham Mohammad, 2012) [3].

The different product attributes that the consumers gives importance in selecting a handset have been

observed to be design, price, internet connection, battery life, camera, video quality, apps

downloading, operating system and social networking. The product attributes help to select the
product when customer confused between different products. (Sandeep Kumar, 2015) [6]. It is not

necessary that all the factors must influence a person in the same way and to the same extent. (Md

Reaz Uddin et al, 2014) [11] .

The six independent variables such as price, social influence, durability, brand name, product feature

and after sales service combined significantly influence the consumers buying decision of mobile

phone devices. The leading factor is price followed by product features and durability (Mesay Sata,

2013) [8]. The size, physical appearance and main menu of mobile phone are found to be the most

important factors influencing the choices of mobile phones (Ling Hwang and Salvendy, 2007).

Consumers’ selfknowledge was measured by comparing the product attribute importance with the

predicted judgements and the actual purchase. The consumers were having a relatively good

predictive power of a product they have chosen, but not a perfect one (Hernan Riquelme, 2001).

Sheetal Singla (2010) tried to find out the mobile phone usage pattern among Indian consumers. The

study was conducted in Ludhiana district & the Sangrur District of Punjab. Research study objective

is to understand the difference in the importance given by gender groups to consider leading factors

while purchasing mobile handsets. Researcher also tried to explain customer’s satisfaction level that is

influenced by various technical & non technical factors. Research study confirms that price and

features of mobile phone are most influential factor affecting the buyer’s decision making process.

Research study further confirmed that 57% of total male has given importance to quality of mobiles

phone.

Another descriptive study conducted by Kavitha and Yogeswari (2012) to know the customer attitude

towards smart phone in Erode, district of Tamil Nadu. In this study, researcher also tried explore the

customer satisfaction of the smart phone. Researchers choose the convenience sampling for collection

of primary data. Study was conducted on 50 people in Erode city. Researchers used descriptive and

Chi-Square test for analysis of data. Chi-Square test used to know the relationship between genders of
respondents and motivate factors. Study confirms no relationship between genders of respondents and

motivates factors. Research study reveals that consumer buy a variety of smart phone which lead

towards satisfaction his needs and wants and consumers always select a branded smart phone or

operating system over preferred to others. Study reveals facts Samsung smart phones preferred most.

Further, descriptive nature a research study conducted by Malviya and Saluja (2013) to indentified

factors which influence buying decision of smart phone users in Indore. Objective behind this research

study is to find out the leading factors those have a dominating effect on the consumers’ behavior

while taking a buying decision of smart phone. Researcher took a sample of 250 respondents for

study. Researcher used chi- square, Factor analysis and reliability analysis with the help of SPSS

statistical package for analysis and interpretation of data. The study reveals the fact that people in

Indore are purchasing smart phone irrespective of cost. Research also reveals fact that features like

technology and durability, brand, social image are also performing leading role in buying decisions of

smart phone users in city.

Lay-Yee, Kok-Siew and Yin-Fah (2013) conducted a study to know and investigate the buying

decision of Malaysian Generation Y. Researchers also want to investigate buying decision association

with brand concern, price, dependency concern, convenience concern and product & social concern.

They collected primary data from 125 respondents through self-administered questionnaire. Their

study confirm that there have a positive association between smart phone purchasing decision and

brand concern, price, dependency concern, convenience concern and product & social concern in

Generation Y city.
Further, Wollenberg and Thuong (2014) conducted a descriptive research study in Vietnam to know

the consumer behavior in market. Researchers conducted study in largest city of Vietnam named Chi

Minh. Motive behind the study is to know key leading variables that influences brand perception and

buying decision process of smart phone in the Smartphone market. They want to evaluate whether

brand perception effect the Smartphone buying choice. Researchers identified four variables that

impact brand perception i.e. advertisement, perceived quality, price and word of mouth. Researchers

collected primary data through well structured questionnaire from 170 respondents. They used

Pearson Correlation analysis for testing of hypothesis. They conclude that following factor

advertisement, perceived quality, price, brand, word of mouth has effect the buying decision of smart

phone.

Uddin, Lopa and Oheduzzaman (2014) conducted a study in Khulna City of Bangladesh to discover

latent variable (factors) which play lead role in buying decision of Smartphone users. They included

34 variables in study and classified these variable into seven factors i.e. first factor physical attributes,

second factor pricing, third factor charging and other operating facilities, fourth factor size and

weight, fifth factor friends’ and colleagues’ recommendations, sixth factor advertising. This research

is study based on total 160 respondent opinions. They applied Factor analysis for factor

extraction and descriptive statistical tools for data analysis. They opined that most important factor is

physical attributes which contribute 30.992% variance in buying decision.

Rani and Sharma (2014) conducted a descriptive study on consumer behavior towards usage of smart

phone. Leading motives behind this research paper is to analyze the consumer preference for brand of

smart phone in Rohtak city and another to determine whether gender playing significant role to

determine preference for feature of smart phone with special reference to Samsung, Apple and Nokia,
Blackberry. Researcher used convenience sampling to collection of data and independent sample t-test

used for analysis. Study showed that researcher involved maximum female Smartphone users in

research study and mostly female are student. Study also reveals that Smartphone user's decision is

influenced by features which them enable to access many utility i.e. apps and internet.
 SMARTPHONE

Smart phone is need of today. A Smartphone not only fulfill the task of calling and receiving calls but

also serve various need of users like internet and social connectivity, multimedia, selfie, health traits

measurement, video calling etc. A large number of variables affect the buying decision of Smartphone

buyers. It is need to note for manufactures of smart phone consider preference of buyer while design

the smart phone. A number of large factors influence and decide the buying behavior of smart phone

buyers. It is also need to consider to manufacturers that what type of feature, design and model, size,

memory capacity, price range, after sales services. In this study various type of variables are included

for study which represent different part of smart phone.

A smartphone is a mobile phone built on a mobile computing platform, with more advanced

computing ability and connectivity than a feature phone. The first smartphones were devices that

mainly combined the functions of a personal digital assistant (PDA) and a mobile phone or camera

phone. Today's models also serve to combine the functions of portable media players, low-end

compactdigital cameras, pocket video cameras, and GPS navigation units. Modern smartphones

typically also include high-resolution touchscreens, web browsers that can access and properly display

standard web pages rather than just mobile-optimized sites, Flash compatibility, and high-speed data

access via Wi-Fi and mobile broadband.

The most common mobile operating systems (OS) used by modern smartphones include Apple'siOS,

Google's Android, Microsoft's Windows Phone, Nokia's Symbian, RIM'sBlackBerry OS, and

embedded Linux distributions such as Maemo and MeeGo. Such operating systems can be installed on

many different phone models, and typically each device can receive multiple OS software updates

over its lifetime.

The distinction between smartphones and feature phones can be vague and there is no official

definition for what constitutes the difference between them. One of the most significant differences is

that the advanced application programming interfaces (APIs) on smartphones for running third-party

applications can allow those applications to have better integration with the phone's OS and hardware

than is typical with feature phones. In comparison, feature phones more commonly run on proprietary

firmware, with third-party software support through platforms such as Java ME or BREW. An

additional complication in distinguishing between smartphones and feature phones is that over time

the capabilities of new models of feature phones can increase to exceed those of phones that had been

promoted as smartphones in the past.

Platform, with more advanced computing ability and connectivity than a feature phone. The first

smartphones were devices that mainly combined the functions of a personal digital assistant (PDA)

and a mobile phone or camera phone. Today's models also serve to combine the functions of portable

media players, low-end compactdigital cameras, pocket video cameras, and GPS navigation units.

Modern smartphones typically also include high-resolution touchscreens, web browsers that can

access and properly display standard web pages rather than just mobile-optimized sites, Flash

compatibility, and high-speed data access via Wi-Fi and mobile broadband.

1.2.1.2 The Nokia 9000

The

Nokia

Communicator line was the first of Nokia's smartphones starting with the Nokia 9000, released in

1996. This distinctive palmtop computer style smartphone was the result of a collaborative effort of an

early successful and costly personal digital assistant (PDA) by Hewlett-Packard combined with
Nokia's best-selling phone around that time, and early prototype models had the two devices fixed via

a hinge. The Communicators are characterized by a clamshell design, with a feature phone display,

keyboard and user interface on top of the phone, and a physical QWERTY keyboard, high-resolution

display of at least 640×200 pixels and PDA user interface under the flip-top. The software was based

on the GEOS V3.0 operating system, featuring email communication and text-based web browsing. In

1998, it was followed by Nokia 9110, and in 2000 by Nokia 9110i, with improved web browsing

capability.

In 1997 the term 'smartphone' was used for the first time when Ericsson unveiled the concept phone

GS88, the first device labeled as 'smartphone'.

1.2.2. Symbian

1.2.2.1. Ericsson R380

In 2000, the touchscreen Ericsson R380 Smartphone was

released. It was the first device to use an open operating

system, the Symbian OS.It was the first device marketed

as a 'smartphone'.It combined the functions of a mobile

phone and a personal digital assistant (PDA). In December

1999 the magazine Popular Science appointed the

Ericsson R380 Smartphone to one of the most important

advances in science and technology. It was a

groundbreaking device since it was as small and light as a normal mobile phone. In 2002 it was

followed up by P800.

1.2.2.2. Nokia 9210 communicator

Also in 2000, the Nokia 9210 communicator

was introduced, which was the first color screen

model from the Nokia Communicator line. It

was a true smartphone with an open operating

system, the Symbian OS. It was followed by the

9500 Communicator, which also was Nokia's

first camera-phone and first Wi-Fi phone. The

9300 Communicatorwas smaller, and the latest

E90 Communicator includes GPS. The Nokia

Communicator model is remarkable for also

having been the most costly phone model sold

by a major brand for almost the full life of the model series, costing easily 20% and sometimes 40%

more than the next most expensive smartphone by any

major producer.

1.2.2.3. Nokia N95

In 2007 Nokia launched the Nokia N95 which

integrated a wide range of multimedia features into a

consumer-oriented smartphone: GPS, a 5 megapixel

camera with autofocus and LED flash, 3G and Wi-Fi connectivity and TV-out. In the next few years

these features would become standard on high-end smartphones. The Nokia 6110 Navigator is a

Symbian based dedicated GPS phone introduced in June 2007.

In 2010 Nokia released the Nokia N8 smartphone with a stylus-free capacitive touchscreen, the first

device to use the new Symbian3 OS. It featured a 12 megapixel camera with Xenon flash able to

record HD video in 720p, described by Mobile Burn as the best camera in a phone, and satellite

navigation that Mobile Choice described as the best on any phone. It also featured a front-facing VGA

camera for videoconferencing.

Symbian was the number one smartphone platform by market share from 1996 until 2011 when it

dropped to second place behind Google's Android OS. In February 2011, Nokia announced that it

would replace Symbian with Windows Phone as the operating system on all of its future smartphones.

This transition was completed in October 2011, when Nokia announced its first line of Windows

Phone 7.5 smartphones, Lumia 710 and 800.

1.2.3. Windows Mobile

Windows Mobile is a mobile operating system developed by Microsoft for smartphones and Pocket

PCs. It is supplied with a suite of basic applications developed with the Microsoft WindowsAPI, and

is designed to have features and appearance somewhat similar to desktop versions of Windows. Third

parties can develop software for Windows Mobile with no restrictions imposed by Microsoft. Some

software applications can be purchased from Windows Marketplace for Mobile until it is discontinued

on 9 May 2012.

Most early Windows Mobile devices came with a stylus, which can be used to enter commands by

tapping it on the screen. The primary touch input technology behind most devices were resistive

touchscreens which did not require a stylus and work with any pressed input method; later devices

used capacitive sensing. Along with touchscreens a large variety of form factors existed for the

platform. Some devices featured slide-out keyboards, while others featured minimal face buttons.

In February 2010, Microsoft announced a new phone platform, Windows Phone, to supersede

Windows Mobile, incompatible with Windows Mobile devices and software. The final version of

Windows Mobile, released after the announcement of Windows Phone, was 6.5.5. Phones running

Windows Mobile cannot run software for Windows Phone. Microsoft says that the Windows Phone

operating system is incompatible with devices designed for Windows Mobile as "Windows Mobile

6.x devices do not meet Windows Phone hardware requirements designed to ensure a consistent user

and developer experience", and software designed for Windows Mobile is incompatible with the new

operating system. However, Windows Phone 7 ROMs that are compatible with some Windows

Mobile devices have been developed and Microsoft, while not supporting them, has taken no other

action.
1.2.4. BlackBerry OS

BlackBerry OS is a proprietary mobile operating system, developed by Research In Motion for its

BlackBerry line of smartphone handheld devices. The operating system provides multitasking and

supports specialized input devices that have been adopted by RIM for use in its handhelds,

particularly the trackwheel, trackball, and most recently, the trackpad and touchscreen.

The BlackBerry platform is perhaps best known for its native support for corporate email, through

MIDP 1.0 and, more recently, a subset of MIDP 2.0, which allows complete wireless activation and

synchronization with Microsoft Exchange, Lotus Domino, or Novell GroupWise email, calendar,

tasks, notes, and contacts, when used with BlackBerry Enterprise Server. The operating system also

supports WAP 1.2.

Updates to the operating system may be automatically available from wireless carriers that support the

BlackBerry over the air software loading (OTASL) service.

Third-party developers can write software using the available BlackBerry API classes, although

applications that make use of certain functionality must be digitally signed.

Research from June 2011 indicates that approximately 45% of mobile developers were using the

platform at the time of publication.

1.2.5. iOS

iOS (formerly iPhone OS prior to June 2010) is Apple Inc.'s mobile operating system. Originally

developed for the iPhone, it has since been extended to support other Apple devices such as the iPod

Touch, iPad, and Apple TV. Unlike Windows CE (Mobile and Phone) and Android, Apple does not

license iOS for installation on non-Apple hardware. As of March 6, 2012, Apple's App Store

contained more than 550,000 iOS applications, which have collectively been downloaded more than

25 billion times. It had a 16% share of the smartphone operating system units sold in the last quarter

of 2010, behind both Google's Android and Nokia's Symbian. In May 2010 in the United States, it

accounted for 59% of mobile web data consumption (including use on both the iPod Touch and the

iPad).

The user interface of iOS is based on the concept of direct manipulation, using multi-touch gestures.

Interface control elements consist of sliders, switches, and buttons. The response to user input is

immediate and provides a fluid interface. Interaction with the OS includes gestures such as swipe, tap,

pinch, and reverse pinch, all of which have specific definitions within the context of the iOS operating

system and its multi-touch interface. Internal accelerometers are used by some applications to respond

to shaking the device (one common result is the undo command) or rotating it in three dimensions

(one common result is switching from portrait to landscape mode).

iOS is derived from Mac OS X, with which it shares the Darwin foundation, and is therefore a Unix

operating system.
In iOS, there are four abstraction layers: the Core OS layer, the Core Services layer, the Media layer,

and the Cocoa Touch layer. The current version of the operating system (iOS 5.1) uses roughly 770

megabytes of the device's storage, varying for each model.

1.2.5.1. The iPhone

In 2007, Apple Inc. introduced its first iPhone. It was initially costly, priced at $499 for the cheaper of

two models on top of a two year contract. The first mobile phone to use a multi-touch interface, the

iPhone was notable for its use of a large touchscreen for direct finger input as its main means of

interaction, instead of having a stylus, keyboard, and/or keypad, which were the typical input methods

for other smartphones at the time. The iPhone featured a web browser that Ars Technica then

described as "far superior" to anything offered by that of its competitors. Initially lacking the

capability to install native applications beyond the ones built-in to its OS, at WWDC in June 2007

Apple announced that the iPhone would support third-party "web 2.0 applications" running in its web

browser that share the look and feel of the iPhone interface. As a result of the iPhone's initial inability

to install third-party native applications, some reviewers did not consider the originally released

device to accurately fit the definition of a smartphone "by conventional terms." A process called

jailbreaking emerged quickly to provide unofficial third-party native applications. The different

functions of the iPhone (including a GPS unit, kitchen timer, radio, map book, calendar, notepad, and

many others) allowed consumers to replace all of these items.

In July 2008, Apple introduced its second generation iPhone with a lower list price starting at $199

and 3G support. Released with it, Apple also created the App Store, adding the capability for any

iPhone or iPod Touch to officially execute additional native applications (both free and paid) installed

directly over a Wi-Fi or cellular network, without the more typical process at the time of requiring a

PC for installation. Applications could additionally be browsed through and downloaded directly via
the iTunes software client on Macintosh and Windows PCs, rather than by searching through multiple

sites across the Internet. Featuring over 500 applications at launch, Apple's App Store was

immediately very popular, quickly growing to become a huge success.

In June 2010, Apple introduced iOS 4, which included APIs to allow third-party applications to

multitask, and the iPhone 4, which included a 960×640 pixel display with a pixel density of 326 pixels

per inch (ppi), a 5 megapixel camera with LED flash capable of recording HD video in 720p at 30

frames per second, a front-facing VGA camera for videoconferencing, a 1 GHz processor, and other

improvements. In early 2011 the iPhone 4 became available through Verizon Wireless, ending

AT&T's exclusivity of the handset in the U.S.,and allowing the handset's 3G connection to be used as

a wireless Wi-Fi hotspot for the first time, to up to 5 other devices.Software updates subsequently

added this capability to other iPhones running iOS 4.

The iPhone 4S was announced on October 4, 2011, improving upon the iPhone 4 with a dual core A5

processor, an 8 megapixel camera capable of recording 1080p video at 30 frames per second, World

phone capability allowing it to work on both GSM & CDMA networks, and the Siri automated voice

assistant. On October 10, Apple announced that over one million iPhone 4Ss had been pre-ordered

within the first 24 hours of it being on sale, beating the 600,000 device record set by the iPhone 4,

despite the iPhone 4S failing to impress some critics at the announcement due to their expectations of

an "iPhone 5" with rumored drastic changes compared to the iPhone 4 such as a new case design and

larger screen. Along with the iPhone 4S Apple also released iOS 5 and iCloud, untethering iOS

devices from Macintosh or Windows PCs for device activation, backup, and synchronization, along

with additional new and improved features.

There are about 35 percent of Americans that have some sort of smartphone. This shows that the

market is spreading fast and there are also more capabilities for smartphones because of this spread.
Smartphones are also mainly valuable based on the operating system. For example, the iPhone runs on

the iOS and other devices run different operating systems which makes the functionality of these

systems different.

1.2.6. Android

Android is a Linux-based operating system for mobile devices such as smartphones and tablet

computers. It is developed by the Open Handset Alliance led by Google.

Google purchased the initial developer of the software, Android Inc., in 2005. The unveiling of the

Android distribution in 2007 was announced with the founding of the Open Handset Alliance, a

consortium of 86 hardware, software, and telecommunication companies devoted to advancing open

standards for mobile devices. Google releases the Android code as open-source, under the Apache
License. The Android Open Source Project (AOSP) is tasked with the maintenance and further

development of Android.

Android has a large community of developers writing applications ("apps") that extend the

functionality of the devices. Developers write primarily in a customized version of Java. Apps can be

downloaded from third-party sites or through online stores such as Google Play (formerly Android

Market), the app store run by Google. As of February 2012 there were more than 450,000 apps

available for Android, and the estimated number of applications downloaded from the Android

Market as of December 2011 exceeded 10 billion.

Android was listed as the best-selling smartphone platform worldwide in Q4 2010 by Canalys with

over 300 million Android devices in use by February 2012. According to Google's Andy Rubin, as of

February 2012 there are over 850,000 Android devices activated every day.
1.2.6.1. Galaxy Nexus, the latest "Google phone"

The Android operating system for smartphones was released in 2008. Android is an open-source

platform backed by Google, along with major hardware and software developers (such as Intel, HTC,

ARM, Motorola and Samsung, to name a few), that form the Open Handset Alliance. The first phone

to use Android was the HTC Dream, branded for distribution by T-Mobile as the G1. The software

suite included on the phone consists of integration with Google's proprietary applications, such as

Maps, Calendar, and Gmail, and a full HTML web browser. Android supports the execution of native

applications and a preemptive multitasking capability (in the form of services). Third-party apps are

available via Google Play (released October 2008), including both free and paid apps.

In January 2010, Google launched the Nexus One smartphone using its Android OS. Although

Android has multi-touch abilities, Google initially removed that feature from the Nexus One, but it

was added through a firmware update on February 2, 2010.

Concerning the Xperia Play smartphone, an analyst at CCS Insight said in March 2011 that "Console

wars are moving to the mobile platform". In the same month, the HTC EVO 3D was announced by

HTC Corporation, which can produce 3D effects with no need for special glasses (autostereoscopy).

The HTC EVO 3D was officially released on June 24, 2011.

1.2.7. Bada

The Bada operating system for smartphones was announced by Samsung on 10 November 2009. The

first Bada-based phone was the Samsung Wave S8500, released on June 1, 2010, which sold one

million

handsets in its

first 4 weeks on

the market.

Samsung

shipped 3.5

million
phones running Bada in Q1 of 2011. This rose to 4.5 million phones in Q2 of 2011
OBJECTIVE OF
THE STUDY
 OBJECTIVE OF THE
STUDY

 To investigate the factors influencing consumer preference towards mobile

phones and

 To explore the reasons that trigger the purchase of new mobile phones as a

replacement for existing ones.

 The most preferred brand of mobile phones among the sample respondents is

explored along with their brand loyalty. The influence of gender on purchase

choice is examined and the frequency of purchase is investigated.

SCOPE OF THE STUDY
 SCOPE OF THE STUDY

At any given time there are millions of people online and each of them is a potential customer for

a company providing online sales. Due to the rapid development of the technologies surrounding

the Internet, a company that is interested in selling products from its website will constantly has

to search for an edge in the fierce competition. Since thereare so many potential consumers, it is

of the out most importance to be able to understand what the consumer wants and needs. The

importance of analyzing and identifying factors that influence the consumer when he or she

decides to purchase on the Internet is vital.SincetheInternetis anew medium for there have been

new demands set by the consumer. That is why it iscrucial for the online retailers to know what

influences the online consumer. Since online retailing is a new retailing medium and online consumer

behavior is diverse from traditional consumer behavior, one must identify what influencesthe

online consumer. Analyzing the process that the online consumer goes through when deciding

and making a purchase over the Internet, shows some factors that consumers consider these factors

need to be identified and taken into account by online retailers in order to satisfy consumer demands

and compete in the online market. Thus this study will be beneficial to the online marketer in

making the strategy to fulfill the need of customer through knowing the attitude and

satisfactionlevel.
 RESEARCH
METHODOLOGY
 RESEARCH DESIGN

“The research design is the conceptual structure with in which research is

conducted it consist the blue print of the collection measurement and analysis of data”.

In that project the research design was adopted for the “Descriptive research study”

the exploratory research studies is that of formulating a problem for more operational

point of view.

The main purpose of the study was to tell the consumer satisfaction in “A.

The major emphasis was on the discovery of the ideas and opinions of the consumers at

different levels in the existing environment.

Two methods that are used for the study are:

The survey of concerning literature.

The experience study

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample size from a given population.

It refers to the technique or the procedure the researcher would adopt in selecting items

for the sample. The sample design is determined before data are collected.

The sampling used for the study is “Convenience Sampling”. Under this

sampling design every item or the universe has equal change or inclusion in the sample

because this consumer ‘Satisfaction survey, so we give each person at any place an

equal probability of getting into the sample.

The implications of random sampling are:

It gives each element in the population an equal probability of getting into the sample;

and all choices are independent of one other.

It gives each possible sample combination an equal probability of being chosen.

RESEARCH PLAN

Sampling unit

The units chosen for survey were related consumers

Sample size

25

Research Instrument

Questionnaire

Contact method

Direct Personal interview

Sample area

Lucknow city

TYPES OF DATA

In the survey two types of data are collected.

Primary data: These data’s are those which are collected for the first time and therefore original in

nature.

Secondary data: Data, which have already been collected by someone else and hence passed through

the statistical process.

DATA COLLECTION

PRIMARY DATA COLLECTION

For the collection of the primary data following methods were used:

Interview method: Personal interview of the consumer are taken at different levels to get their

opinions and suggestions. And the interview was structured in nature.

Questionnaire method: Structured questionnaire on the basis of information collected from different

sources. The questionnaire both open and ended questions.

SECONDARY DATA COLLECTION

Secondary data were collected from the following sources:

 Books related to topic

 Organization documents

 Magazines

 Websites

STATISTICAL TOOLS

Statistical tools used in the project study are

:Pie charts
DATA ANALYSIS AND INTERPRETATION
 DATA ANALYSIS ANDINTERPRETATION

1.Do you shop online?

10

100

Interpretation:
In my survey I found 90% people prefer to shop online
2.Age.

15

35

20

30

Interpretation:

35% of people are between 15-25

30% of people are between 26-35
20% of people are between 36-45
15% of people are between 46-55
3.Gender

42 Male
Female

58

Interpretation:

58% are male and 42% are female.

 4. Profession

13
18

18 Student
service
business
professional
Housewife

28

23

Interpretation:

18 % are student
28% are of service class
23% are of business class
18% are professionals
13% are housewife
 5. Monthly Income

20

>20000
20000-40000
40000-60000
58 60000-80000
22

Interpretation:

58% people are having less than 20000 of income

22% people are having income between 20000-40000
20% people are having income between 40000-60000
 6. How often do you shop online

21
29

once in a weak
once in a month
Ocassionally
According to the need
Rarely

30
20

Interpretation:

29% people shop once in a week

20% people shop once in a month
30% people shop Occasionally
21 % people shop according to the need
7. Payment mode normally adopted by you in Online shopping.

17

Credit card
3 Debit card
Net banking
Cash on delivery

75

Interpretation:

75% people use cash on delivery

17% people use debit card for payment
5% people use credit card for payment
3% people use net banking for payment
 8. What do you buy on internet?

Books 15
Apparels 40
Gifts and greetings 5
Air and Rail tickets 20
Electronic goods 20
Music CD’s 0

Interpretation:

40% of people buy apparels through online shopping

20% people prefer to buy electronic goods through online shopping
15% people buy books through online shopping
20% people buy air and rail tickets
5% people buy gifts and greetings
9. Why do you Prefer Internet Shopping?

100

90

80

70

60

50
strogly agree
40 agree
neutral
30
strongly disagree
20

10

0
Convenience ease of ease of discount cam find no need to
finding the comparison products that deal with
product are not sales person
available in
market
 10. Which of the following store you visit for online shopping.

10

5
40 flipkart
Amazon
snapdeal
10
ebay
Myntra
others

30

Interpretation:

40% of people use Flipkart for online shopping

30 % of people use Amazon for online shopping
10% of people use snapdeal for online shopping
10% of people use Myntra for online shopping
5% of people use ebay for online shopping
5 % of people use other online shopping sites
11. What factors helps you to decide which site to use for shopping.

6
15
8

search engine
personal recommendation
17 special offer on site
online advertisement
TV advertisement
others

54

Interpretation:

54% people visit particular website because of special offers on site.

17% people visit because of personal recommendation.
15% people visit because of search engine
6% people visit because of TV advertisement
8% people visit because of online advertisement
12. (a) Have you faced any problem Whileshopping online?

20

Yes
No

80

Interpretation:

80% of people don’t face any problem while shopping online

20% people faced problem while shopping online
12 (b) If yes what problems you faced?

20
18
16
14
12
10
8 agree
6 strongly agree
4 neutral
strongly disagree
2
0
ity n ue ue ur
e rs
tiv atio i ss iss ail he
ec
vig y ed f ot
nn na er lat en
t
co liv e m
t de ct
r y
r ne du pa
te o
In pr

Interpretation:

Mostly customers faced the problem of connectivity. Navigation, delivery issue, product related issue and
payment failure
13. Are you satisfied with the online services?

28

YES
NO

72

Interpretation:

72% people are satisfied with the online services

28% people are not satisfied with the online services
FINDINGS
 FINDINGS

 In my study I found In today’s scenario mostly everyone prefer to shop online.

 In my study I found People from all age group prefer to shop online but mostly people are

young.

 In my study I found Both Middle as well as high class prefer to shop online because it is

time saving and convenient.

 In my study I found that mostly people prefer to shop occasionally.

 In my study I found most preferred mode of payment is Cash on Delivery.

 In my study I found mostly people prefer to by apparels and electronic goods.

 In my study I found people prefer online shopping because it is convenient, time saving,

easy comparison, good discounts easy availability of the products.

 In my study I found most preferred online store is flipkart, amazon and snapdeal.

 In my study I found people prefer specific website/online store because of special offers

on online stores and personal recommendations.

 In my study I found people who faced problems in online shopping mainly because of

website interface/navigation, poor connectivity, delivery issues

SUGGESTIONS
 SUGGESTION & RECOMMENDATIONS

After researching this topic, I would recommend some suggestions and listed are as follows as:

 First of all I recommend that the online sellers have to make transparent paymenttransactions

because sometimes the online shoppers unaware about hidden cost. So, theremust be

transparency regarding price between online sellers andshoppers.

 Online sellers also helps to make people more aware about the low risk towards shopping of the

net because online shoppers facing thefraudulent.

 onlinesellers have to give more offers to their customers so that they may visit again and

again to theirsite.

 There are some implications should be followed by the online sellers are as followsas:

 Discount prices

 Cash back offers

 Fast transactions

 Focus on customer satisfaction

CONCLUSION
 CONCLUSION

Increased Internetpenetration,a hassle freeshopping environment providing to the online shoppers

with one click and the product is delivered at home so, that’s why more Indians prefer shopping online.

But at the same time the companies need to reduce the risks related to consumer incompetence by

tactics such as making purchase websites easier to navigate, and introducing Internet kiosk,

computers and other aids in stores. The goal is not to convert all shoppers to online purchasing,

but to show them it’s an option. In addition to above, efforts need to be taken to educate the

online buyers on the steps that need to be undertaken while making an online purchase. Moreover,

the feedback of an online buyer should be captured to identify flaws in service delivery. This can

be done through online communities and blogs that serve as advertising and marketing tools and a

source of feedback for enterprises. I found that it is a challenge for E-marketers toconvert low

frequency online buyers into regular buyers through successful websitedesignand by addressing

concerns about reliable performance. Thus, the online retailing raises more issues thanthe benefits it

currently offers. The quality of products offered online and procedures for service delivery are yet

to be standardized. Till thesame is done, the buyer is at a higher risk offrauds.

LIMITATIONS
 LIMITATIONS

There are some problems which I faced during my research study and listed few problems are:

1. The first problem which I faced is unable to getting the co-operation of the customers.

Many of the respondents did not agree to the need and utility of the project and hence not

agreed to provide theinformation.

2. The behavior of the customer is unpredictable which may result in the lacking of
accuracy in the data.

3. Study accuracy is based upon the respondent’s response.

4. Time Constraints
BIBLIOGRAPHY
 BIBLIOGRAPHY
Books
 Kotler Philip, (2003) marketing management, eleventh edition, Pearson
education,Delhi.

 Kothari,research methodology, vishwaprakashan.

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attitudes. Marketing Letters. 1991; 2(2):159-170.
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Services Marketing. 2002; 14(2):92-118.
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Handsets: A Case Study of USIU. 2012.
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Handsets: A Descriptive Study. International Journal of Emerging Research in Management
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features, Universal Access in the Information Society. 2006; 5(2):239-249.
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Buying Decisions of Mobile Phone: A Study on Khulna City, Bangladesh. International
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Websites:
 http://www.emeraldinsight.com/doi/full/10.1108/17554191311303367

 http://shodhganga.inflibnet.ac.in/handle/10603/2695

 http://www.amazon.in/b/ref=gw_m_b_corporate/275-9063862-

 http://www.flipkart.com/about-us

 http://www.snapdeal.com/info/aboutus

 http://www.ebay.in/?aff_source=Google_cpc

 https://www.google.co.in/#q=project+report+on+consumer+perception+toward
s+online+

 https://www.ibef.org/industry/ecommerce.aspx

 https://www.business2community.com/ecommerce/5-things-emerging-driver-
e-commerce-growth-01927264
ANNEXURE
 QUESTIONNAIRE

Name:

Address:

1. Do you shop online

a) Yes

b) No

2. What is your age group?

a)15-25

b) 26-35

c) 36-45

d) 45-55

3.In which occupation you belongto?

a)Professional b)Students c)Businessman d)service e)Others

4. What is your monthly income?

a) >20,000

b) 20000 - 40000

c) 40000 - 60000

d) 60000 - 80000
5. How often do you shop online ?

a) Once in a week

b) Once in a month

c) Occasionally

d) According to the need

e) Rarely

6. Mode of payment normally adopted by you in online shopping

a. Credit card

b. Debit card

c. NET banking

d. Cash on delivery

7. What do you buy online?

a) Books

b) Gifts and greetings

c) Air and rail tickets

d) Electronic goods

e) Music Cd’s
 f) apparels

8. why do you prefer internet shopping?

a) convenience

b) ease of finding the product

c) ease of comparison

d) discount

e) no need deal with sales person

9) which store do you prefer for online shopping?

a) Flipkart

b) Amazon

c) Snapdeal

d) Myntra

e) Ebay

f) others
10) what factors help you to decide which site to use for shopping?

a) Search engine

b) Personal recommendation

c) Special offer on site

d) Online advertisement

e) TV advertisement

f) others

11) have you faced any problem while shopping online

a) YES

b) NO

12) If yes

a) Navigation
b) connectivity

c) delivery issue

d) payment failure

e) others

13) Are you satisfied with the online services?

a) YES

b) NO
THANK YOU