A Study On Customer Satisfaction Towards Online Shopping

 

 

A RESEARCH PROJECT REPORT ON

“A STUDY ON CUSTOMER  SATISFACTION  SATISFACTION TOWARDS ONLINE SHOPPING”  SHOPPING” 

SUBMITTED IN THE PARTIAL FULFILLMENT THE DEGREEOF “MASTER OF BUSINESS ADMINISTRATION” ADMINISTRATION”  Submitted to Dr. A.P.J Abdul Kalam Technical University, Lucknow (SESSION 2017-19)

INSTITUTE OF TECHNOLOGY &SCIENCE, GHAZIABAD Submitted By:

Under the Guidance of

Student Name:Shivani Gaur

Prof. Bhavna Bhardwaj

Roll No: 1703870156 Batch: 2017-2019

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CERTIFICATE

This is to certify that Ms. Shivani Gaur has done her Dissertation Report on A “

Study on Customer Satisfaction towards Online Shopping” Shopping ”Under the

guidance of Prof. Bhavana Bhardwaj as a part of MBA course during MBA 4th Semester. According to my best knowledge the work is original and has not beensubmitted anywhere else for the award of any other degree or diploma.

Mentor Name

(Prof. Bhavana Bhardwaj)

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ACKNOWLEDGEMENT A truly independent project is a contradiction in terms. Every project involves contribution of many people. This project also years the imprints of many people and it is a pleasure to acknowledge all of them. I take this opportunity to convey my heart filled thanks to my Bhardwaj” who has been a source of guidance and has  project guide “Prof.  Bhavana Bhardwaj” rendered constant encouragement to complete this project. I extend my gratitude to ITS 

authorities, classmates and friends who were helpful at every step. Last but not the least would be falling short of duties if I don’t mention. My sincere thanks t o all the staff members

for their great help.

Shivani Gaur

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DECLARATION 

I Shivani Gaurhere by declare that this projectentitle   “A STUDY ON CUSTOMER SATISFACTION TOWARDS ONLINE SHOPPING” SHOPPING”  has been completed based on

actual study carried out by me. I am presenting an authentic record of my work carried out under the guidance of “Prof. Bhavana Bhavana Bhardwaj” Bhardwaj”  (Dissertation report guide) of I.T.S Ghaziabad , which is required in the partial fulfillment for the degree of “MASTER OF BUSINESS ADMINISTRATION” ADMINISTRATION” affiliated to UP Technical University Lucknow .

This declaration is original and the information data in this Research Report for the award of any other degree or diploma in the best of my knowledge.

DATE: Shivani Gaur Roll No.: 1703870156 MBA –  MBA  –  IVthSem  IVthSem

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PREFACE

In spite of the theoretical gained through classroom study, a person is incomplete if not subjected to practical exposure of real corporate world and may have to face hurdles, which will be difficult to overcome without any first-hand experience of business. In the context, research program has been designed to make the person aware of the happenings of the real business world. The Research Report entitled “ A STUDY ON CUSTOMER SATISFACTION TOWARDS ONLINE SHOPPING”has been done as a

completion part ofMBADegree. I whole heartedly appreciated the harmonic atmosphere provided to me by the staff of marketing. The data has collected at primary source through interviews with the customer & discussions with the retailer of different -different sections. The data which used in this project report are secondary data. These secondary data so obtained were mostly collected from the management. It would not have  been possible to complete my research report in a manner. manner. I reckoned & within such a limited time. ti me. For this nice obliged to them.

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CONTENT S No

Contents

Page No

1

Introduction of the topic

7-15

2

Objective of the study

16-17

3

Research Methodology

18-25

4

Limitation Of the Study

26-27

5

Profile Of the Organization

28-31

6

Literature Review

32-34

7

Analysis and Interpretation of Data

35-55

8

Findings

56-58

9

Conclusion

59-61

10

Recommendation

62-63

11

Bibliography

64-66

12

Annexure

67-71

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INTRODUCTION

INTRODUCTION OF THE PROJECT

The world of internet practically can be considered as an endless market, where a consumer living in any country of the world can get into a contractual relation with a trader operating in any other country of the world. From this aspect a cross-border purchase is when the consumer buys goods from any web trader settled anywhere in the world outside his/her country of residence. Due to the differences in language and legislation environment, furthermore sometimes in commercial traditions it is particularly essential to consider whether to buy the selected product from a web store operated by a foreign trader.

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The consumer, in case of Online Shopping can buy the selected product rapidly by doing some clicks from home or work saving time and energy in spite of the larger distance arising from the endless and unlimited market offered by the internet. The offers on the internet can  be easily compared, therefore the consumer can buy the product with the most favorable conditions (price, quality, other discounts) tailored to the individual’s  needs. Besides the advantages however, it is good to know that there may also be risks connecting to online shopping, since the International Conference on "Research avenues in Social Science”

Organize by SNGC, Coimbatore C-1229 www.ijariie.com 266 conclusion of the contract is done without personal interaction, and the consumer sitting in front of a computer/screen tends not to think over or consider his/her intention of buying. Consumer’s attitude towards Online Shopping re fers to their psychological state in terms of

making purchases over the Internet. Online buying behavior process refers to the products  purchased online. The process of online buying behavior consists of five steps and it is similar to traditional shopping behavior. For instance, consumer recognize the need for  buying some product (book), they refers to the internet to buy online and start to search for the information and look for all the alternatives and finally make a purchase which best fits to their needs. Before making final purchase consumers are bombarded by several factors which limits or influence consumers for the final decision.

STATEMENT OF THE PROBLEM

An increasing number and variety of firms and organizations are exploiting and creating  business opportunities on the Internet statistics indicate the repaid growth in the field of virtual shopping. With this emerging field of shopping the interest of marketers is also increasing in studying what actually motivates consumers to shop online. Fierce competitions 8

 

 

among online sellers have forced them to gain the competitive edge in the field of virtual shopping. As Online Shopping is a new medium so the consumer behavior in the field of Online Shopping In order to gain competitive edge in the market, marketers need to know the consumer behavior in the field of online shopping. So it is important to analyze and identify the factors which influence consumers to shop online in order to capture the demands of consumers. Other than the factors which influence consumers to shop online, online shopper’s demography in terms of Age, gender, income and education is equally important to define their strategies accordingly.  Internet and Information technology have made tremendous contributions for business transformation witnessed now a days all over the world. This has given birth to E commerce which encompasses several pre purchase and post purchase activities leading to exchange of products or service or information over electronic systems such as the internet and the other Telecommunication networks. Analyzing the competitive advantage of E-Commerce it is observed that E-Commerce enables simpler, faster and efficient business transactions. For developing country like India, E-Commerce offer considerable opportunity for growth. E-commerce leads to a boon for the current economic downturn. As India ’s-commerce market is worth about Rest 50,000 crores in 2012. About 80% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online retailing comprises about 15%.India has close to 10 million online shoppers and is growing at an estimated40-45%perannum. The rapid growth of e-commerce in India is being driven by greater customer choice and improved convenience. The company has proposed a plan to launch an online grocery store in the Indian market for which the project was undertaken was to determine whether on line grocery shopping will be beneficial to the user with respect to questionnaire which will be analyzed in three  parts. The project will first study the attitude of customers towards online shopping, also determining the factors which influence the consumer to purchase goods and service.

The second half of the project will depict the attributes of Online Shopping influencing the purchase decision by the respondent. It will also determine the issues regarding the 9

 

 

online shopping. The third part of the project determines the purchase decision with respect to grocery. It will determine the place preference of grocery shopping with respect to price, quality, variety, proximity and offers/ discounts. Categories of e-commerce 

As with traditional commerce, there are four principal categories of e-commerce: B2B, B2C, C2B and C2C. 

 

B2B (Business to Business)  —   this involves companies doing business with each other. One example is manufacturers selling to distributors and wholesalers selling to retailers.

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B2C (Business to Consumer)  —   B2C consists of businesses selling to the general  public through shopping shop ping cart software, without needing any human int interaction. eraction. This is what most people think of when they hear "e-commerce." An example of this would  be Amazon.

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C2B (Consumer to Business)  —  In  In C2B e-commerce, consumers post a project with a set budget online, and companies bid on the project. The consumer reviews the bids and selects the company. Enlace is an example of this.

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C2C (Consumer to Consumer) —  this   this takes place within online classified ads, forums or marketplaces where individuals can buy and sell their goods. Examples of this include Craigslist, eBay and Betsy.

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 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 also to 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 online business. busi ness. In addition to the tremendous potential of the E-commerce market, the Internet provides a 10

 

 

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 Econsumers 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.

Models of E-commerce  Business-to-Business (B2B): 

B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80%of e- commerce is of this type, and most experts predict that B2B ecommerce will continue to grow faster than theB2C segment. Egg: indiamart.com,eindia business.com, tradeindia.com etc. Business-to-consumer (B2C): 

Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving  products over an electronic electro nic network. It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (ore-tailing). Thus, the more common B2C business models are the online retailing companies such as flipkart.comAmazon.com, snap deal.com etc. Business-to-Government (B2G): 

Business-to-governmente-commerceorB2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e11

 

 

commerce; and second, it is as summed that the public sector has the greatest need for making to procurement system more effective. Web-based purchasing policies increase the transparency of the procurement process (and

reduce

the

risk

of

irregularities).

To

date,

however,

the

size

of

theB2Gecommercemarket as a component of to tale-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-Consumer (C2C):  Consumer-to-consumer-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic market places and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Online auction site e Bay,Yahoo! Auctions are a couple of examples of C2Cwebsites.   Mobile Commerce in India 

Mobile is growing in India with more than 800 million subscribers across the country. The advancement in terms of adoption of smart phones with 3G enabled services is happening at a rapid pace. This of course has opened up the gates to mobile advertising, mobile application development and mobile commerce in India. According to Buzz City’s  latest Report, India is top performing mobile advertising region in the whole of Asia. The growth in mobile advertising globally is tremendous with ads served on a year-on-year growth of 139%. With respect to some number crunching, more than 126 billion ads were served in 2011, compared with 52 billion in 2010.

In India, Mobile Commerce is still in the development phase as the use of mobile phones for carry in gout transactions is very limited. However, the development is taking place atanice speed and in the coming years, Mobile Commerce is most likely to make its  presence feel as companies and businesses have started understand understanding ing the benefits of Mobile Commerce. Some of the companies have even incorporated this technology. Airtel, ICICI, Reliance are some of the companies/businesses that are using this technology as their users are allowed to make limited purchases from their phones. For now, the users are mainly allowed to pay phone bills, utility bills, book movie tickets,  book travel tickets with their t heir cell phones. 12

 

 

However, more services will be introduced in coming years. Security is one of the main concerns of Mobile Commerce as it’s very important to offer secure transactions and this is the reason why Mobile Commerce is still in the development phase in India. For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account with a cell phone in order to pay the utility bills. With the current rate of development, users will be soon allowed to purchase products, advertise, to take part in auctions and pay bills with the help of a cell phone, while they are on the move. Online Shopping In India 

The Indian economy is slated to grow byupwardof6 % annually in the next few years which is among the highest rates of any big emerging economy. And quite a lot of this growth would been the back of domestic consumption of goods and services. E-commerce is emerging as a great level given that organized retail is still not ubiquitous across the length and breadth of the country with large retail chains making up less than 10% of the market.  market.  E-commerce is helping people in smaller towns in India access quality products and services similar to what people in the larger cities have access to. Its being fore cast that close to 60% of online shoppers would come from beyond the top eight large cities by end of this year.  Increasing internet penetration has helped to expand the potential customer pool. Internet penetration is onlyabout10%(or about 121 million users) asagainstabout81%in the US and 36%in China. However this number continues to rise at a consistent pace  because of falling prices for broadband connections.  Indians are also increasingly taking to mobile devices for not only search but shopping as well. The number of smart phone users is rapidly increasing in India and with 4G services about to take off it’s expected to get even more people going online. There are currently about 900 million mobile subscribers and this number is expected to touch1.2  billion by 2015. Of these about 27million are estimated to be active mobile internet users. More importantly, 20%users indicated intent to buy products through their mobile phones as against the current 4% and this number is expected to only increase in the next two to three 13

 

 

Years.   Years. Innovation is helping-commerce companies break the inertia for Online Shopping by offering benefits to customers not traditionally available in a brick and mortar store. Business models include no question asked return policies ranging from 7 days to 30 days, free product deliveries and the industry dynamics changing “cash on delivery”  model. The last innovation has really help unlock the potential as people can now order  products and pay when they the y get physical deliver delivery y of the product.   This has been tremendous success because Indians are still reluctant to give their credit/debit card details online and want to have the psychological comfort that they would actually get the product once payment has been made. These innovations have led to further innovations downstream as ancillary businesses are developing to support the so initiatives. Some companies have begun to develop support mechanisms for the entire cash on delivery model and are trying to reach the farflung corners of India, including in the interiors where traditional logistics companies are still not completely present. The logistics companies are also shoring up their act and have started to build specific verticals and expertise to address the requirements of e-commerce companies.  Divan Gupta is the Founder and CEO of Kashia Services Pvt. Ltd, a company with interests in the internet, telecom, healthcare, education and advanced technology  businesses has stated that, acceptance of Online Shopping as a secure shopping mode is has also helped to increase – commerce commerce up take. Currently only about 10million people do online transactions out of an approximate population of 200 million credit and debit card holders. However the latest industry report by First Data Corporation and ICICI Merchant Services indicate that there are about 150 million users that are ‘ready’ forecommerce.   commerce. More importantly the report indicates that urban Indian consumers are now confident enough to make online purchases of up to US$500 as againstUS$40-100 in the recent  past. So not only are the numbers of online shoppers projected to increase but there has  been a real increase in the total value being spent online.  

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OBJECTIVE OF THE STUDY

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OBJECTIVES OF THE STUDY Objectives:

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  To study the customer awareness about online shopping

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  To investigate the factors effecting customer’s buying behavior towards



  Online shopping.

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  To find out the customer satisfaction from online shopping.

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  To propose suitable suggestions for enhancing consumers satisfaction

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  Through online shopping

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  •To show the benefits of online shopping.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY Research Design

The research was based on assessing consumer behavior. The design was exploratory study which used closed observation in analyzing consumer behavior. The study was based on the use of questionnaires. These approaches were used because they were satisfactory tools for collecting data for the sample population to investigate the topic under study.  A research design is the arrangement of the condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. A research design is the specification of methods and procedure for acquiring the information needed to structure or to solve problems. It is the overall operation pattern or framework of the project that stipulates what information is to be collected from which source and be what  procedures. Electronic Sources: I began my search for electronic sources by using the search engine Google. I used keywords such as, “online shopping and effects on economy” and “online shopping and its advantages”. I chose these words because they related to my topic very well. I chose the articles that I used for my bibliographies by looking through the online sources and seeing if the information  pertained to my subject matter mat ter and research question. questio n. Print Sources: I found my print sources by going to Google Scholar. I used keywords ke ywords such as, “online

shopping and effects on economy” and “online shopping and its advantages”. I chose the articles for their excellent relevance to my research question. Empirical Source: For my empirical source, I did a survey. I gave the survey to girls on my dorm floor. I selected the girls for my survey, because they will actually shop and they would be able to answer the questions in a truthful matter.

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Sources of Data Both primary and secondary source of data were used in conducting the research.

Primary Sources

In getting primary data there are several approaches available to gathering data. In order to collect reliable and valid information, the researcher go to the market place and collect data from different user of student. The method used in collecting the primary data was questionnaire. Questionnaires

The purpose of using questionnaire was to identify and assess the affect the consumer  behavior. A set of questionnaire questionn aire was prepared with open  –  ended  ended questions.

Secondary Sources

The study also made use of secondary data in collecting information. The sources of the secondary data include books, internet search, articles, and journals among others. This helped to identify how others have defined and measured key concepts, the data sources that of others used and this helped to discover how this research project is related to other studies.

Data Collection Instrument

The researcher used questionnaire. The researcher prepared the questionnaires to be responded by the consumers. The questions were designed to make the purpose of the study successful after the results have been ascertained. This instrument gave expected information about the consumer behavior.

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Administration Administratio n of Instruments Instruments

Copies of the questionnaire were distributed to consumers at market place. After some time, the researcher went back and collected the answered questionnaires. The researcher explained the questions to the respondents thoroughly after copies of the questionnaire were given them. The purpose of this was to help the respondents to understand the purpose of the research, and to do away with suspicions, partialities and also to be able to provide their independent opinions on the questionnaire items given them. To have a valid and reliable data, the researcher ensured that the questions were well formulated which allows error minimization. Data Analysis

The collected data were statistically analyzed, using the pie-chart and tables. Representations like tables and charts were used to ensure easy and quick interpretation of data. Responses were expressed in percentages. Data from the completed questionnaire were checked for consistency. The items were grouped based on the responses given by the respondent. This method was used because it is the best instrument to identify, compare, describe and reach a conclusion. Sampling Design SOURCES FOR DATA COLLECTION: (a)

Primary Data Collection Sources:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic and structured manner of collecting data for conducting experiment. The nature of the questionnaire is very inductive and fundamental. It has been kept in a proper framework to make it clear to the retailers. Primary data can be collected in five main ways: I) Observation ii) Focus groups

iii) Surveys

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iv) Behavioral data v) Experiments Among these, ‘survey method’ was selected to collect the primary data. 100 user were visited

& collected the required data relevant to this project. (b)

Secondary Data Collection Collecti on Sources:

Secondary sources Information was collected from secondary sources such as customer survey, newspapers advertisements, newsletters, etc. Beside these the use of Internet was also made in collecting relevant information. The data collected from the above mentioned sources has been adequately structured and used at appropriate places in the report. The information gathered included: • 

Their annual reports.

• 

Pamphlets.

• 

Newsletters.

• 

Pictures.

• 

Exchange schemes.

UNIVERSE/POPULATION: Univariate analysis is the simplest form of quantitative (statistical) analysis. The

analysis is carried out with the description of a single variable in terms of the applicable unit of analysis. For example, if the variable "age" was the subject of the analysis, the researcher would look at how many subjects fall into given age attribute categories. Univariate analysis contrasts with bivariate analysis  –   the analysis of two variables simultaneously  –   or multivariate analysis  –   the analysis of multiple variables simultaneous. Univariate analysis is commonly used in the first, descriptive stages of research, before being supplemented by more advanced, inferential bivariate or multivariate analysis.

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SAMPLE SIZE

It is the process of selecting representative subset of a total population for obtaining data for the study of the whole population the subset is known as sample. The sample size is selected for the study 100 user. The techniques of sampling unit in this study are convenience sampling. Sampling Technique

Sampling techniques can be broadly classified in to two types: Probability Sampling (here the every item in the universe have the equal chance of inclusion in the sample)

 Non Probability Sampling (Here the item in the sample are deliberately deliberatel y selected by the researcher) This project will be based on the non-probability, purposive, quota sampling. As in the given  project the sample will be considered cons idered specific to predetermined predete rmined New Delhi.

Tools Used for Data Analysis

 bar chart (Bar charts will be used for comparing two or more value valuess that will be taken over time or on different conditions, usually on small data set) Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or frequencies)

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ANALYSIS OF DATA

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DATA COLLECTION

This chapter deals with the methodology adopted in conducting the study. The chapter is organized as follows; research design, sources of data, population and sampling, research instrument (data collection technique), administration of instrument instrum ent and analysis of data. The project is a systematic presentation consisting of the enunciated problem, formulated hypothesis, collected facts of data, analyzed facts and proposed conclusions in form of recommendations. The data has been collected from both the sources primary and secondary sources.

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LIMITATION 

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LIMITATIONS OF THE STUDY

As has been mentioned above no study or project is error free neither is it limited by some constraints. Following are some of the limitations observed while conducting the project of education:

  While observing the internal environment at the education, it was felt that the

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coordination among various teams and departments was very poor appro ach companies    No clear cut strategy to approach

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  There was a conflict between the sectors given for mapping and what actually was



mapped

  A lot of companies were avoided even though there was potential to grow due to their



current size

  The client database prepared in the education was not accessible to all the managers

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of the organization, thus creating a lot of confusion and leading to overlapping of work The education products were not explained in detail and only a brief overview was  

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given due to paucity of time However, these limitations were not very huge roadblocks and hence could be worked upon. The minimization of limitations can make this project an even better success.

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RETAIL RET AIL E-COM E-COMMERC MERCE E

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RETAIL E-COMMERCE India remains an underdeveloped retail ecommerce market, with digital commerce accounting for only a small piece of the country’s total retail sale sales. s. However, strong growth is

expected over the coming years as increasing numbers of consumers go online for the first time, largely through smartphones, as explored in a new marketer report.

eMarketer estimates retail ecommerce sales in India will reach $23.39 billion (INR1.500 trillion) this year, an increase of 75.8% over 2015. The forecast period will see strong growth over the next few years, with sales hitting $79.41 billion (INR5.092 trillion) in 2020. Despite the strong growth rate, retail ecommerce will account for just 2.5% of total retail sales in 2016 and 5.0% by 2020. That puts India well behind China, where retail ecommerce will constitute 18.4% of total sales in 2016. eMarketer expects the annual growth rate of total retail sales will easily remain in the double digits between 2016 and 2020. While Western markets, along with China, have seen slowdowns in their economies, India is expected to experience healthy GDP growth due in part to infrastructure investment and ongoing economic reforms. In addition, India has a massive population with a relatively young median age. As this cohort joins the labor force, they will also add to the country’s new, expanding consumer class.

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India differs from most developed markets, where consumers are making the shift from desktop to mobile for shopping online; those in the country instead have skipped the desktop  phase altogether. They are increasingly accessing the web for the first time via smartphone, and therefore have shown a willingness to make purchases on their mobile devices. India’s status as a mobile -first market is reflected in its retail ecommerce figures. EMarketer

estimates that retail ecommerce sales will total $15.27 billion (INR979.16 billion) this year, up 96.3% from 2015. Growth will be markedly high throughout the forecast period, declining to a still-impressive 25.7% by 2020 when ecommerce sales will hit $63.53 billion (INR4.073 trillion). Mobile’s share of ecommerce will continue to grow over the new few years, accounting for

65.3% of all retail ecommerce this year and 80.0% in 2020. The implementation of robust 4G networks by mobile carriers (which is already underway) will drive increasing digital  purchases made via smartphone. In addition, the declining costs of 4G devices and service  plans will make it much easier for consumers cons umers to research, browse and buy on smartphones.

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The number of digital shoppers — those those who browse or research products online but who haven’t necessarily completed a transaction— will will also see their ranks grow over the coming

years. EMarketer estimates that digital shoppers in India will total 159.6 million in 2016, a figure equal to 53.6% of internet users. By 2020, more than three-quarters of internet users, or 352.0 million people, will be digital shoppers. The number of digital buyers — those those who complete a transaction digitally — will will also see a strong increase over the forecast period. In 2016, 130.4 million people in India will make at least one purchase digitally, which is equivalent to 43.8% of internet users. Digital buyers will number 329.1 million by 2020, when 70.7% of internet users will have made a purchase online.

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LITERATURE REVIEW

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LITERATURE REVIEW Review of research report is done to what research works have already been done on this and related topics or fields, the methodology adopted by them, the findings and conclusions, the listed scope for further research and so on. Below an attempt is made to review the available literature related to the topic of this research. According to Monsuwe, Delleart and Ruyter (2005)   there are five external factors to

understand consumer's intention to purchase in the internet which is the consumer  personality, situational situatio nal factors, product characteristics, previous p revious Online Shopping experiences and the trust in online shopping. Consumer's trait includes their demographic factors such as age, income, gender and educational level will lead them to have the intention to shop online .Situational factors will also lead a consumer to have the intention to shop in the internet such as time pressure, lack of mobility, geographical distance, need for special items and attractiveness of alternatives . Ekeldo and Sivakumar( 2007) This research has two major purposes: developing and

testing a resource‐ based  based framework for entry mode choice and ascertaining the extent to which the determinants of foreign market entry mode choice in the manufacturing sector apply to foreign market entry mode choice in the non ‐separable service sector The managerial and research implications of the findings are delineated and directions for future research are offered. Kim, Lee, and Kim. (2008). In their study on “Factors Affecting Online Search Intension

and Online Purchase Intention” focused on various factors affecting online search intention,

which has been found to be a key predictor of online purchase intention. They concluded that the utilitarian value of internet information search, hedonic value of internet information search, perceived benefits of internet shopping, and internet purchase predicted online search intention quite well. The findings also showed that online search intention positively affect online purchase intention. The greater the benefits of Internet shopping as perceived by the consumers, the greater is the intention to use the internet for information search. Vijayasarathy (2011) examining the relationship between shopping orientation, product

types, and consumer intentions to use the internet for shopping. Irrespective of the product type, the consumers with home and economic International Conference on "Research avenues in Social Science” shopping orientations could be expected to use Online Shopping more

than those with local orientations. Moreover, consumer would be more inclined to use the internet to shop for intangible than tangible products. He also concluded that age, gender, and 33

 

 

income have an influence on Online Shopping orientations, specifically; younger males with higher household income would be more likely to engage in Internet shopping. Sita Mishra (2013) Study examines “Consumers Attitude towards Online Shopping for

clothing” examines the demographic characteristics of online consumers and their attitude

towards Online Shopping behavior for clothing. This study is based on a sample of 200 internet users in NCR Delhi. The findings show that consumers have positive attitude towards Online Shopping but low attitude towards online purchase of clothes. The analysis shows that city and sex do not affect consumers’ attitude but age and income indicates a si gnificant

association. The issue of trust enjoys ability and trial policy seems to be major concerns for the consumers but convenience and technological advancement play a major role in online shopping. • Bhatnagar et al. (2014) Suggest that shopping online is perceived to be quite risky.

Perceived risk includes fear of technology use and information overload, feeling of uncertainty and confusion, feeling of insecurity when engaging in online transactions (e.g. credit card fraud). Because technology for secure transactions (e.g. online payment) is not yet mature, security and privacy are major issues that should be addressed satisfactorily in this medium. • Song and Zahedi(2015) classify website quality elements into five categories according to

their purpose: for promotion, service, informational influence, self-efficacy, and resources facilitation. These investigators find that each of the five significantly and positively reinforces the consumers. Perceptions in these factors, which in turn positively influence consumer Online Shopping attitudes and behaviour.

34

 

 

ANALYSIS AND INTERPRETATION OF DATA

35

 

 

DATA ANALYSIS & INTERPRETATIONS Gender Male

Female

Total

29

21

50

42% 58%

Male Female

Interpretation:   The abovediagram depicts that outof thetotal 50 respondent 42%

oftherespondent were female as theobjectivewas to studythe consumerbehaviorwith respect toonlinegrocery, as groceryis moreshopped byfemalerespondent.

36

 

 

Age Brackets  Age 18-

25-

24

30

30 & Above

Total

23

19

8

50

25

23 19

20 15 10

8

5 0 24

30

30 & Above

18-

25-

Interpretation:   The abovediagram depicts that outof thetotal 50 respondent 42%

oftherespondent were female as theobjectivewas to studythe consumerbehaviorwith respect toonlinegrocery, as groceryis moreshopped byfemalerespondent. The38 %of therespondent were among30 &aboveagebracket as these respondents arewelleducated andweb savvy. another 46%of the respondent wererangingfrom 18-24 agebracketandthe remaining16%wererespondent were rangingfrom 25-30 agebracket,as these respondents are readytoadapt changes.

37

 

 

Occupation Occupation Service

Business

Total

31

19

50

38%

62%

Service Business

Interpretation: 

Forthe research to be successful most of the respondent areworkingofficials who are educatedand web savvy

38

 

 

Annual IncomeLevel  Annual IncomeLevel  1-5 Lakhs 

5-10 Lakhs 

10 &above 

76

82

42

6% 46% 1-5 Lakhs 48%

5-10 Lakhs 10 & above

Interpretation: 

From the abovepie chartwe candeterminethat 48 % of the respondent have around5-10 lakhs of annual incomewhich  purchasegrocer yitems.  purchasegroceryitems.

indicates

majorityofthe

39

respondent

havespendingpower

to

 

 

DATA ANALYSIS AND INTERPRETATION

40

 

 

Q.1.Which item you shop online? Apparels

Books

Elec Electronic tronic

Food

Games

Music Music

Other

12

7

14

4

8

3

2

16 14 12 10 8 6 4 2 0 Apparels

Books

Electronic

Food

Games

Music

Other

Interpretation: 

The above diagram depicts that electronic has the highest number transaction in online shopping. Apparels is the second most item sold in the online shopping, along with electronics appliances like hair dryer, mobile appliances, computer peripherals etc. The other items that are sold in the Online Shopping are the apparels which are more preferred by the female respondent. Games are the items that are proffered with the respondent ranging the age  bracket between

41

 

 

Q.2.How much money do you spent in online shopping?

100-500

500-1000

1000-5000

5000 & above

12

17

9

12

18 16 14 12 10 8 6 4 2 0 100-500

500-1000

1000-5000

5000 & above

Interpretation: 

The money spend in Online Shopping is ranging from INR 1000-5000,which indicates the users are willing to pay more price when there is premium quality products such as electronics, branded apparels, original music etc.

42

 

 

Q.3.When do you feel the need to shop online? Percentage

When I need home delivery When

I

want

17%

Something

Unique& 12%

Special When I need to compare prices

6%

When I don’t have the time to find things

10%

in different markets Other

18 16 14 12 10 8 6

5%

17 12

4 2 0 When I need home delivery

10 6

5

When I want When I need to When I don’t have Something compare prices the time to find Uniques & Special things in different markets

other

Interpretation:

from the above we can depict the factor which motivates the respondent to shop online is when they need home delivery. The other factor which motivates to shop online when they compare prices of different products at as am place. The above graph also determines that people shop online when they don’t have the time to find things in the market for the product to be purchased. Also respondent shop online when they want some unique & special product which they cannot find in the offline market.

43

 

 

Q.4. What features in Online Shopping website attracts you? Design of website Discounts

Advertisement Advertiseme nt Variety

offered

13

Value

of

money

12

16

6

3

18 16 14 12 10 8 6

16 13

12

4

6

2

3

0 Design of website Discounts offered

Advertisement

Variety

Value of money

Interpretation:  

From the above diagram we can determine that people prefer Online Shopping when discounts offered are offered to them. Also the variety of product offering o the customer also forms an important factor which motivates the respondent to shop online. The other factor that motivates the user to shop online is when the product they purchase is of value of money. Also the design of website along with the different advertisement promotion motivates the user to shop online.

44

 

 

Q.5. While shopping what affects your satisfaction the most? Very Important

Somewhat Important

Not Important

23

17

4

Cash on delivery

27

29

3

Credit/Debit Card

22

22

3

Offers & Discounts

21

19

1

Free Shipping

29

12

2

Website

User

Friendly

payment

30 25 20 15 10 5 0

23 17

29 27

29 22 22

2119 12 Very Important Somewhat Important Not Important

45

 

 

Interpretation:

The above diagram depicts that website user friendliness forms an important factor when it comes to online shopping, more the website user friendliness will determine more number of visits on a website which will in turn results an increase in the sale truncations for the particular shopping site.

Cash on delivery forms an important aspect of the Online Shopping websitein Indian Online Shopping market, the above graph depicts that it does forms an most important part on the online shopping. The other mode of payment gate way through net banking and credit/debit  banking also forms an important impor tant part of the Online Shopping Shoppi ng website. When it comes to tracking of items service in Online Shopping most of the respondent think that it is an important service which allows the user to track their items in transit. When it comes to security aspect of the web sited & password forms an important aspect of the online transaction. The other aspect order confirmation is the like the shopping cart where the user gets the list of items he/she is going to purchase which avoids unnecessary purchase of the product , also forms an important part of the Online Shopping website. The above graph depicts that along offers & discounts, free shipping also forms as the most important factor for the Online Shopping website, which forms a motivating factor for the user to shop 

46

 

 

Q.6. What are your issues regarding online shopping?

People may select more than one checkbox, so percentages may add up to more than 100%.

No

Possibility

guarantee

forgery

of

Product highly

Too

much Security

priced

clutter

issue

Physical examinat ion

12

13

14

11

7

5

2

13 12

12

11

10 8 7 6

5

4 2 2 0 No Possibility Possibilit y of  Product guarantee forgery highly priced

Too much clutter

Security issue

Physical examination

Interpretation:  

The other factor which demotivates the user to shop online is the security issue, which consists of issues like phishing, hacking of accounts etc.

47

 

 

Q7.Where do you shop for your product?

Local Kirana

Ration Shop

Sabzi Mandi

Supermarkets Supermarkets

22

7

14

14

25

20

15

10

22 14

14

Sabzi Mandi

Supermarkets

5 7 0 Local Kirana

Ration Shop

Interpretation: 

The above graph depicts that most of the respondents shop from supermarket for grocery items. The reason for shopping from the particular shopping centre can be depicted below.

48

 

 

Q.8. Ifgiven anoption to buy grocery onlinewill you buy online?

Yes

No

Maybe

17

22

11

22%

34% Yes No Maybe

44%

Interpretation:  The remaining percent age of the respondent mayormay not buy grocery online

due the factors like physical examination and security issues. The above graph depicts that around 34%ofrespondent are willing to buy grocery online if the option is given.

49

 

 

Q.9.Do you think buying grocery online is beneficial? If yes, why do you thinkis beneficial?

Yes

No

Total

34

16

50

32% Yes 68%

No

Interpretation: 

The above diagram depicts that most of the respondent think that buying grocery is beneficial which can be determined from the next question. The remaining respondent thinks that online grocery shopping will be not  beneficial due the factors like forgery products, highly priced products and no guarantee of the product.

50

 

 

Q11. If yes, why do you think is beneficial?  Easy to order Variety

Discount

17

13

5

12

13

18 16 14 12 10 8 6 4 2 0

12

& Saves time Avo Avoid id

long

3

17

5 Easy to order

Variety

Discount & Offers

Saves time

3 Avoid long queues

Interpretation: 

The above graph depicts that user respondent think that Online Shopping will  be beneficial as it will save their time t ime to shop for grocery grocer y items. The next relating aspect why consumer will shop grocery online as it will allow the user to avoid long queues resulting in reduction in time spent in shopping. The other factors why online grocery shopping will be beneficial as it will allow the user to shop all the grocery at a particular place with discounts and offers.

51

 

 

12. Which type of products you purchase from Online Shopping? Particulars

Number of Respondent

Percentage

Skin care products

32

32%

Beauty care products

35

35%

Home care products

13

13%

Food beverages

5

5%

Other products

15

15%

TOTAL

100

100%

35% 35%

32%

30% 25% 20%

15%

13%

15% 10%

Series1 5%

5% 0% Skin care products

Beauty care products

Home Food Other care beverages products products

Interpretation:

The above graph reveals that 35% customer purchase Beauty care products from Online 32% customer purchase Skin care products from Online Shopping Company , 13% customer  purchase Home care products from Online Shopping Company . , 15% customer purchase Other products from ONLINE SHOPPING Company

52

 

 

13. How do you feel the purchaseing environment environment in ONLINE SHOPPING Company? Particulars

Number of Respondent

Percentage

Excellent

10

10%

Good

22

22%

Poor

50

50%

Very Poor

18

18%

TOTAL

100

100%

18%

10% 22%

Excellent Good Poor

50%

Very Poor

Interpretation:

The above graph reveals that 22%

feel good for purchasing environment in ONLIN ONLINE E

SHOPPING Company, 10%

feel Excellent for purchasing environment in ONLINE

SHOPPING Company, 18%

feel very poor for purchasing environment in ONLINE

SHOPPING Company, 50% feel poor for purchasing environment in ONLINE ONLINE SHOP SHOPPING PING Company,

53

 

 

14. Are you satisfied with to join current ONLINE SHOPPING Company? Particulars

Number of Respondent

Percentage

Yes

25

25%

No

70

70%

Can’t Say  Say 

5

5%

TOTAL

100

100%

5% 25%

Yes No Can’t Say

70%

Interpretation:

The above graph reveals that 70% user does not satisfied with to join current ONLINE SHOPPING Company, 25% user satisfied with to join current ONLINE SHOPPING Company.

54

 

 

15.: Online Shopping Company have Good Quality? Table No. 15 Particulars

Number of Respondent

Percentage

Strongly agree

16

16%

Agree

14

14%

Neither agree

55

55%

Disagree

15

15%

TOTAL

100

100%

Graph No. 15

55% 60% 50% 40% 30% 20%

Series1 16%

15%

14%

10% 0% Strongly agree

Agree

Neither agree

Disagree

Interpretation:

The above graph reveals that good perception comes from 16%, 16% have Strongly agree  perception about the Online Shopping Company and rest by 14% have agree, 15% have Disagree.

55

 

 

FINDINGS

56

 

 

FINDINGS Majority (28.3%) of the respondents are preferred to purchase electronic products through online shopping. 90% of the respondents felt that delivery time is very important while purchasing through online. 68.3% of the respondents are said that reputation of the company is very important while making purchase decision through online. Most (65%) of the respondents said, it is very important that the company should give  proper description about ab out their product. Majority (81.7%) of the respondents are said that security is very important while purchase the product through online. 53.3% of the respondents are agreed that Online Shopping saves consumer’s time

48.3% respondents are strongly agreed that Online Shopping enable to shop any day and anywhere. 50.0% majority of the respondents agreed that Online Shopping eventually superseded traditional shopping. 53.3% majority of the respondents agreed that online price is lower than the actual price. From the data collected above we can observe that there is an increase in the number of respondent in Online Shopping as there is awareness about this concept in the market. Certain parameters which motivates the user to shop online are: User friendliness of the website. Discounts and offers, offered by the website. Cash on delivery form an important gateway in online transaction.

57

 

 

Free shipping is the most important factor which motivates the user to shop online. Physical examination is the important issues in the Online Shopping which determines the tangibility of the product. The data depicts that supermarket are the preferred shopping destination as it offers all the basic aspect of the Online Shopping which are price, quality variety,  proximity to home, offers & discounts. disco unts. From the above data collection we can determine most of respondent agree to  buy grocery online onli ne if the optio option n is give. 

58

 

 

CONCLUSION

59

 

 

CONCLUSION This study investigates the determinants that are responsible for choosing of the online  purchasing portals by the consumers whenever they decide for purchasing products. Furthermore, the study was taken ahead with the conclusions drawn from the empirical survey and developing innovations important for the online purchasing portals. The empirical results show that consumers preferred to accept on line purchasing portals for their purchases whenever they perceived that the determinants like product preference through the respective  purchasing portals, variety options available in the portals and convenience of Online Shopping and in accordance to their preferences. This research shows that Online Shopping is having very bright future in India. Perception towards Online Shopping is getting better in India. With the use of internet, consumers can shop anywhere, anything and anytime with easy and safe payment options. Consumers can do comparison shopping between products, as well as, online stores. From the above data analysis it can be conclude that consumer buys goods from the Online Shopping website on the basis of factors like offers and discounts, variety of product available, free home delivery, website user friendliness and cash of delivery payment option. The hypothesis framed for the project Consumer Perception towards Online Grocery Shopping was “Online grocery shopping stores are beneficial for the consumer”. From the above data analysis it can be determined that most of the respondent would agree to buy grocery online rather than shopping of grocery with the traditional method.

Out oft he agreed respondent to buy online grocery, most of their spondent 60

 

 

would think that it would be beneficial to shop grocery online on the basis of factors like easy to order, variety, discounts/ offers, saves time and avoid long queues. With above analysis we can thus prove the hypothesis to be positive. The recommended business operation will not only beneficial for the consumer  but also to the fi firm, rm, as it al allows lows the firm tto o maintain its low op operating erating expenses and for the consumer.

61

 

 

RECOMMENDATION

62

 

 

RECOMMENDATION   Consumers should be educated on Online Shopping procedures with proper steps to be following while online shopping. Transactions should be safe and proper security should be assured to the people making online purchases. Government should play a pivotal role in encouraging online shopping. E-marketers must give a thought to secure, time saving, information about product and services factors when they design their online product strategy. The study highlights that convenience, accessibility, scope, attraction, reliability, experience and clarity are the important factors considered by the online shopper. Usage of internet includes the consumer’s purchase of product as well as the consumer intention to secure for product related information while experiencing the new technology. Banking should promote Debit card, Credit card facility in Online Shopping

63

 

 

BIBLIOGRAPHY

64

 

 

BIBLIOGRAPHY

Books: 

1. Bhatnagar, A, Misra, S., and Rao, H. R. (2000) “Online risk, convenience, and Internet shopping behavior”, Communications of the ACM (43:11), pp. 98 -105. 2. Mishra, Sita (2007), ‘Consumer preference Towards Online Shopping for Clothing,’ The

ICFAI Journal of marketing, Vol. 6, No. 1 pp. 32-39 3. Yulihasri et al (2011) “Factors that Influence Customers’ Buying Intention on Shopping Online”, International Journal of Marketing Studies Vol. 3, No. 1 4. Lina Zhou (2007)“Online Shopping Acceptance Model —  A  A Critical Survey Of Consumer Factors In Online Shopping’ Journal of Electronic Commerce Research, Vol 8, No.1, WEBSITES:

  https://www.questia.com/library/journal/1P3-3333088491/a-study-on-online-



shopping-experience-and-customer

  http://search.proquest.com/openview/7623aa0cfaaa390a1866015e0da0a0a0/1?pq-



origsite=gscholar&cbl=1936345

  https://issuu.com/sanjaykumarguptaa/docs/a_study_on_consumer_perception_towa



  http://ijariie.com/AdminUploadPdf/A_STUDY_ON_CONSUMERS%E2%80%99_A



TTITUDE_TOWARDS_ONLINE_SHOPPING_c_1229.pdf

  https://www.ripublication.com/gjmmr16/gjmmrv6n1_01.pdf



65

 

 

QUESTIONNAIRE

66

 

 

QUESTIONNAIRE APPENDICES Name : ………………………………………………………………………… …………………………………………………………………………   Age : …………………………………………………………………………..  …………………………………………………………………………..  Contact No. ……………………………………………………………………  ……………………………………………………………………  Address : ………………………………………………………………………  ………………………………………………………………………  …………………………………………………………....................................   ………………………………………………………………………………….   ………………………………………………………………………………….

□Male  □Female

Age:- 

□18-24 □25-30 □30 and above

Occupation:- 

□Student □Service □Business Income Level:-

□1 lakh –  5  5 lakhs □5 lakhs –  10  10 lakhs □10 lakhs and above

67

 

 

Q1. Which item item y you ou shoponline? 

□ Apparels  □ Books  □ Electronics  □ Food  □ Games  □ Music  □ Any other(Please specify)

Q2. How much money money do you spent in online shopping? (Rupee (Rupees) s) 

□ 100 –  500  500 □ 500 –  1000  1000 □ 1000 –  5000  5000 □ 5000 & above 

Q3. When do you feel feel the nee need d to shop online? 

□ When I need home delivery  □ When I want something unique and special  □ When I need to compare prices □ When I don’t don’t have the time to find things by different markets  □ Any other(Please specify)  

68

 

 

Q4. What features in Online Shopping website attracts you? 

□ The design of a website   □ Discounts offered  □ Advertisement  □ Variety  □ Value for money □ Any other(Please specify)  

Q5. While shopping what affects affects your satisfac satisfaction tion the most?

  Website User Friendly



  Cash on delivery



  Credit/Debit Card payment



  Offers & Discounts



  Free Shipping



Q6. What are your your issues regarding regarding online shopping shopping? ? 

□ No guarantee  □ Possibility of forgery  □ Product highly priced   □ Too much clutter   □ Security issue  □ Physical examination  □ Any other(Please specify)  

69

 

 

Q7. Where do you shop for items? 

□ Local Kirana  □ Ration Shop  □ SabziMandi  □ Supermarkets 

Q9. If given an option to buy online will you buy online? 

□ Yes  □ No  □ May be 

Q10. Do you think buying buying grocery grocery online is beneficial? beneficial? 

□ Yes  □ No 

Q11.Ifyes, why do you think is beneficial? 

□ Easy to order   □ Variety at one shop  □ Discounts & offers  □ Saves time □ Avoid long queues  □ Any other(Please specify)  

70

 

 

Q12. Which type of products products you purchase purchase from Online Company?

a) Skin Care Products

b) Beauty Care Products

c) Home care products

d) food beverages

e) Other products Q13. How do do you fe feel el the purchasing purchasing environment environment in Online Company?

a) Excellent

b) Good

c) Poor

d) Very poor

Q14. Are you satisfied satisfied with to join curre current nt Online Company?

a) Yes

b) No

c) Can’t Say 

Q15. Online Company hav havee Good Quality?

a) Strongly agree

b) Agree

c) Neither agree

d) Disagree

71