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LAL BAHADUR INSTITUTE OF MANAGEMENT
AND TECHNOLOGY, BAREILLY

MARKETING RESEARCH REPORT

On

To study about factors affecting

satisfaction level of customers with
online shopping

Submitted to
Mrs. Upasana Gupta

Submitted by
Ankit, Akansha, Kunica, Parichay, Shahper, Rahul

Session: 2016-2018

1
 CONTENTS

S.No. TOPIC Pg.No.

1.
Acknowledgement 3
2.
Preface 4
3.
Introduction 5
4.
Research Objective 8
5.
Research Methodology 9
6.
Research Process 10
7.
Data Analysis 11
8.
Hypothesis Testing 34

9.
Findings 36
10.
Conclusion 37
11.
Limitations 38
12.
Bibliography 39
13.
Annexure 40

2
 ACKNOWLEDGEMENT

In performing our assignment, we had to take the help and

guideline of some respected persons, who deserve our greatest
gratitude. The completion of this assignment gives us much
Pleasure. We would like to show our gratitude Mrs. Upasana
Gupta, Course Coordinator,Lal Bhadur Shashtri Institute
of Management and Technology, Bareilly for giving us a
good guideline for assignment throughout numerous
consultations. We would also like to expand our deepest
gratitude to all those who have directly and indirectly guided
us in writing this assignment.
Many people, especially our classmates and team members
itself, have made valuable comment suggestions on this
proposal which gave us an inspiration to improve our
assignment. We thank all the people for their help directly and
indirectly to complete our assignment.

Ankit, Akansha, Kunica, Parichay, Shahper, Rahul

Group 2

2016-2018

3
 PREFACE

A child’s very first breathe, questions his ability to adapt from one
environment to another that is dramatically changed. This element of
“change” dominates world and adds flavour of dynamism to it. It is
continuous process. In fact change is the only thing which remains
unchanged in the world.

Business doesn’t live in the vacuums. There are external and internal
factors which dominates business scenario and thus they cause a
twister called “change” which affect the business environment. This
study focuses on the several factors which have impact on the
satisfaction level of consumers shopping via online gateway. In this
study, the respondents responses are measured through survey in form
of questionnaire filling which comprised of questions representing a
diversity of mode of payment, ease of use, security etc.

The aim of this research is to evaluate the impact of various factors

which affect satisfaction level of consumers who often shop online
over brick and mortar shops. Increase of smart phone users and
penetration power of 3G connectivity has tremendously impacted the
choices of consumers of this city towards shopping orientations,
online trust, and prior online purchase experience to the customer
online purchase intention. Findings are under way. The results points
to yet to calculate.
4
 INTRODUCTION

Online marketing is an emerging dimension of marketing in today’s time. Earlier, markets on

the street were there for meeting customers’ needs then came the concept from western
modernization trend - the concept of mall and multiplex, which facilitated the customer by
providing wider choice of goods and services. Marketer then realized that by eliminating the
time spend by customers to visit the mall the concept of e-shopping shall be more convenient,
where customers need not to visit anywhere they has to just click on the website and the
product get delivered at their place. Prices of products available online are less as compared
to brick & mortar shops due to the elimination of middle man which in turn eliminate the
dealers cost.

The major reasons behind online shopping growth are increased broadband internet usage and
3G penetration. Rising standards of living and high disposal income of middle class Indians
has given push to the growth of online shopping in the country.

However not all e-customers are satisfied by the online retailers, many complaints like delay
in product delivery, substandard product, cheap and incorrect product delivered, non-delivery
of product etc. So a question arises that the customers are satisfied or not with whatever
services provided by the online retailers.

Online shopping or e-shopping is a form of electronic commerce which allows consumers

to directly buy goods or services from a seller over the internet using a web browser.
Alternate names are: e-web-store, e-shop, e-store, internet shop, web-shop, web-store,
online-store, online storefront and virtual store. A person can purchase anything online-
starting with groceries and greeting cards to cell phones and ringtones for the cell phones,
everything can be purchased online. While most people still find it more convenient to buy
their groceries from the neighbourhood shop, many people are purchasing rail and tickets
over the internet. In addition, people and corporate as well, are also purchasing a variety of
service online- such as a broking service or job search service.

5
Online shopping became popular during the internet boom in 1999-2000. Amazon.com, the
online bookstore founded by Jeff Bezos, created history by becoming the first bookstore
with a presence only on the internet. Following the success of Amazon, many bookstores
with a physical presence also created an online presence on the internet. Later, portals such
as Yahoo.com and MSN.com also started online shopping channels where people could buy
more than just books. Closer home, portals such as Indiatimes.com and Rediff.com came up
with similar options for the Indian consumers.

With the increasing number of people preferring to shop online, the retail category
penetration has increased to 65% and has grown to 53.4 million visitors a month, an overall
growth of 15 % annually. Apparel, health, home furnishings, fragrances and cosmetics are
the few categories which have shown growth in the last 12 years, with apparel being the
strongest with 66% followed by fragrances and cosmetics at 12% growth. The growth has
come across all retail categories and most of them show promising transactions and
conversion rates along with growth in visitors.

Age group of 21-30 years has been the fastest growing age segment online
with user growth being contributed by the both male and female. Online
shopping is increasingly emerging as the fundamental sales channel for
growing number of businesses. The internet user base is expanding fast and e-
commerce has opened up a big window of opportunity for businesses to
expand to new markets with ease and at a low cost.

India has third fastest share in retail marketing adding over 7 million internet users among
the BRIC nations.

On-line shopping is gaining attention from students today. The aim of this research is to study
the factors influencing consumer satisfaction level through internet shopping. Several factors
such as usefulness, ease of use, compatibility, privacy, security, normative-beliefs and attitude
that influence consumer buying intention were analyzed. Today Internet is not only a
networking media, but also as transaction medium for consumers at global market in the
world, and becomes dominant retailers in the future. To shop on Internet becomes an

6
alternative for consumers since it is more comfortable than conventional shopping which
usually attributed with anxious, crowded, traffic jam, limited time, parking space and etc.

To increase the understanding in this area, the question needs a correct answer. Are
consumers ready to embrace Internet shopping? In addition, this study wants to know the
reasons, why the consumers of Bareilly, accept or refuse internet shopping application? And
what are dominant factors that influence the consumer’s satisfaction level those who to shop
online?

The rise of online shopping has gradually changed consumer behavior. Not only does it offer
convenient shopping with a variety of products, but also allows quick price comparisons and
fast access to product information. Though it has developed rapidly in recent years, it is still
perceived immature due to risks.

This research has been conducted to find out the factors which are affecting the satisfaction
level of consumers those who shop online as we know that there has been a sudden growth in
the preference level of consumer for purchasing products online and many new online stores
are available for the consumers

The consumers are considered to be the king as they want the best at reasonable price, in very
less time with the best offers, they have wide variety of choices etc. and online shopping sites
are focusing on these factors.

. The endeavour of this study is to identify the motivating factors towards online shopping as
well as inhibitions of online shopping and also the factors which influence this behaviour Our
findings should help an internet marketer to determine various factors that have dominance to
affect satisfaction level. This would also allow them to add or remove services/features which
are important during the process of making buying decision. This doesn’t aim to identify
newer areas to introduce new services, nor should it be used to predict the success or failure
of internet ventures. These recommendations shall be useful for quality improvement and also
it shall be feedback ground for new entrant on the market to observe the existing need of
consumers of Bareilly region and customise their strategies accordingly.

7
 LITRETURE REVIEW

Online shopping share in India has been estimated to be second largest in the world
(Statistics and facts on internet usage in India, statista dot com, 2016). According to a report
released by IMRB and IAMAI, the e-commerce market in India is expected to be a 50,000
crore valuation by end of 2012. A growth of almost 4 times of the market size back in 2007,
the e-commerce industry is picking on the trend of the increasing number of Internet
subscribers in India. Online shopping in India will touch $15 billion by 2016, with over 50
million new buyers emerging from tier1 and tier2 cities2 (Google Forester (2014). 100
million online shoppers in India by 2016: Report. MINT, New Delhi, India: HT Media Ltd.).
The growth in the e-commerce industry has been tremendous with a larger audience
accepting the ease of online payments. The Kotler and Killers (2009) Five Stage Buying
Process Model was chosen as the basis of framework of this study to explain customer
satisfaction through their motivations to buy products online. According to Kotler & Keller
(2009), a buyer goes through five stages while making a decision to purchase. These stages
are best explainable when a buyer goes for buying costly items, such as a house, a car,
diamond jewellery etc. However, in day- to- day purchase, consumers may not go through all
these stages, since some commodes do not need information, and based on buyer’s previous
experience they will visit a store for the purchase. These stages are (Figure 1): “problem
recognition, information search, evaluation of alternatives, purchase decision, and purchase
behaviour” (Kotler & Keller 2009).

Therefore, analyzing consumer satisfaction toward online shopping helps marketing

managers to predict the online shopping rate and evaluate the future growth of online
commerce (Kumawat Alka, Tondon J.K., Factors influencing customer’s satisfaction level
towards online shopping in Jaipur and Gurgaon, iijrd, Vol.3, issue 4, April 2014). Social-

8
demographic features of young consumers of young generation indicate that this is a
relatively homogeneous segment (in this respect, sex, age, place of residence, professional
activity, and education). Taking into consideration economic features, e.g., income, this
segment demonstrates some differentiation (Jaciow Magdalena, China-USA Business
Review, October 2015, Vol. 14, No. 10, 515-522). The best offers and provision of return
besides delivery time and mode of payment were the main factors considered for making
online purchases. Shoes, books and clothes were the items purchased online by urban
respondents, while mobile phones, clothes and shoes were preferred by respondents from
rural background. Railway booking, mobile recharge and hotel booking were the main
services accessed by respondents through internet. Lack of touch and feel, link not working,
server breakdown were the main constraints/ hindrance reported by respondents (Shushmita,
Ranak, Dahiya M and Singh, E-Shopping: opportunities and challenges perceived by
consumers, IJHSS, Vol.4, Issue 6, Oct.-Nov. 2015, 1-8).. The existing literature was reviewed
to discover reasons that would influence customers positively or negatively towards shopping
online (Karim R.A., Customer Satisfaction in Online Shopping: a study into the reasons for
motivations and inhibitions, IOSR Journal of Business and Management, Volume 11, Issue 6
(Jul. - Aug. 2013), PP 13-20). The influence of brand image, customer value, excellent
service, and customer experience to customer satisfaction, and on customer loyalty, which
influence customer satisfaction. Brand image, customer value, excellent service and the
customer experience had significant indirect on influence customer loyalty through customer
satisfaction (Launtu Ansir, The Influence Of Brand Image, Customer Value, Excellent Service,
And Customer Experience Towards Customer Satisfaction And Its Impact On Customer
Loyalty Among Telecommunication Industry In South Sulawesi, Qualitative and Quantitative
Research Review, Vol.1, Issue 3, 2016). With development in Information Technology and its
contribution in the area of Internet, the getting more popular amongst the users today. Its
impact is not only restricted to just providing information to the users but also an immense
development in E-commerce, now the user can perform all the commercial transactions just
on one click. It has been observed that there has been substantial increase in the number of
online stores and websites with shopping facility are available to the customers. These
include not only the Indian players like Flipkart, Snapdeal, IRCTC and Paytm but also the
global players like Amazon and EBay. It is important to understand the conceptual framework
of consumers’ behaviour towards online shopping sites. Also how the demographic variables,
geographic the trend of consumers’ expectations (Jain Prayatna and Gangrade Shailendra,
Research Journal of Management Science, Vol 5(9), 58-62, September 2016). Consumer

9
behaviour is an academic field of enquiry, a sub-discipline of marketing (MacInnis and
Folkes 2009), that generates scientific knowledge about a complex form of human behaviour.
Attribution theory, attitude models, low involvement, risk, dissonance lifestyle, personality,
reference groups, social class, diffusion of innovation, consumer satisfaction, decision
making within the family context, and information processing were among the topics that
were heavily researched in the 1970s (Kassarjian 1982; Ekström 2003). The study attempted
to understand the Indian online buying behavior focusing on students (Shanthi R. and
Kannaiah D. (2015). Consumers’ Perception on Online Shopping. Journal of Marketing and
Consumer Research, 13, 14-30).

10
 RESEARCH OBJECTIVE

The aim of this research is to explore consumer perceptions of satisfaction from e-retailing
and scrutinize the major factors that influence the satisfaction level. The specific objectives of
the research are:
 To analyse recent emerging trends of online shopping
 To know the age group preferring online shopping over brick and mortar shops
 To understand psychological factors governing the response of respondents
 To know various services related factors and their factors on satisfaction level
of customers
 To explore future of online shopping

11
Research Methodology

Research Methodology is a way to find out the result of a given problem on a specific matter
or problem that is also referred as research problem. In Methodology, researcher uses
different criteria for solving/searching the given research problem. Different sources use
different type of methods for solving the problem. If we think about the word
“Methodology”, it is the way of searching or solving the research problem. (Industrial
Research Institute, 2010).

To define any research problem & give a suitable Solution for any research, a sound research
plan is inevitable. Research Methodology underlines the various steps involved by the
researcher in systematically solving the problem with the Objective of determining various
facts.

1. Research Design: Depending upon the objectives of the research the most suitable
marketing research design is “DESCRIPTIVE RESEARCH”.

2. Data Collection: The information used in this project was through primary and
secondary sources i.e. personally interacting the respondents.

3. Research instrument: Data were collected by using self-administrated questionnaires

distributed using purposive sampling. Questionnaire is a research instrument
consisting of a series of questions and other prompts for the purpose of gathering
information from respondents. It serves four basic purposes: to (1) collect the
appropriate data, (2) make data comparable and amenable to analysis, (3)
minimize bias in formulating and asking question, (4) Questions were simple, specific

12
 and direct , and (5) Avoid questions that are misleading, sensitive, personal and
offensive

4. Sample Frame: Bareilly.

5. Data Representation: Analyzing the collected data and reporting the findings.
Finally the data collected, was thoroughly analyzed and processed to obtain the
required information. The data has been summarized in the form of graphs.

6. Sample size: 100

Descriptive research design adopted to identify and describe customer expectations,

influencing variables etc. In Bareilly city there are thousands of online customers using
online shopping sites for purchasing products. These customers constitute the study
population. In the present study, 105 online shopping customers based in Bareilly constitute
the sample. Judgment sampling technique is used for collecting the data. For conducting this
study it is proposed to collect both primary and secondary data. The primary data is collected
by administering a structured questionnaire to consumers who use internet for shopping. The
questionnaire was circulated in electronic form and was completed by the respondents.

RESEARCH PROCESS

 Research Design Descriptive

 Data Source Primary & Secondary Data
 Research Approach Survey Method
13
 Research Instrument Questionnaire
 Questionnaire Type Structured
 Sampling Unit Individual
 Sampling Area Bareilly
 Sampling Procedure Convenience and judgemental
Sampling
 Sample Size 100
 Contact Method Personal

1 -What is your age group?

14
 Response
a)15-25 b)25-40 c)40-55 d)Above 55

15.24% 3.81%

22.86% 58.10%

2- What is your gender?

15
 Response

Mal e
Fema l e
48.57%
Male; 51.43%

3- What is your current occupation?

16
 Response
a)Student b)Serviceman
c)Businessman d)Housewife
e)Others

20.00% 1.90%
46.67%

20.00% 11.43%

4- What is your current monthly income?

17
 Response
a)Less than 10,000 b)15,000-20,000
c)20,000-30,000 d)30,000-40,000
e)More than 60,000

12.38% 2.86% 2.86%

49.52%

32.38%

5- Have you ever visited an online shopping

website?
18
 Response
a)Yes b)No

8.57%

19
6- For how long you have been actively using
the internet?

Response

a)Less than 3 b)3-6 months

0.95% 11.43% months
22.86% c)6-12 months d)1-2 year
13.33% e)2-3 year f)3-4 year
4.76% g)More than 5
9.52% years
37.14%

20
7- Have you ever purchased anything through
online shopping?

Sales
Yes No

4.76%

95.24%

8- Why are you choosing to shop online?

21
 Response

8.57%

10.00%
1st Qtr 2nd Qtr

3rd Qtr 4th Qtr

22.86% 58.57%

9- During past 6 months your rate of

recurrence of online purchase is?

22
 Response

a)1-3 times
5.71%
5.71% b)4-6 times
4.76% 43.81% c)7-9 times
d)10 times or
more
40.00% e)None

23
12- Please indicate which one effects your
satisfaction most during your previous shop
online experience?

Response
Price
Ways the grievances were addressed
Loyalty for this online portal
Speed of delivery

20.95% 6.67% 38.10%

34.29%

24
13- Based on your experience with online
shopping, how likely are you to buy online
again?

Response

Definitely will
Probably will
1.90% Might or might
20.95% 19.05% not
Probably will
not
23.81% 34.29% Definitely will
not

25
14- Please rank the following factors according
to there importance for you while purchasing
through online shopping

a) Reputation
of company-
27.86% 16.43% b) Product
characteristics-
c) Ease of use-
d) Transaction
14.29%
security-
e) Personal
information
privacy-
f) 7.86%
Trust-
19.29% 14.29%

26
15- Which mode of payment you are much
comfortable in?

Response

Cash on Net Working

delivery
5.71% Credit Card Debit Card
16.19%
4.76% 43.81% Gift Card Mobile Wallet
22.86% Prepaid
4.76% 1.90% Cash Cards

27
16- Did you ever have complaint regarding
online shopping?

Response

18.10%

81.90%

Yes No

28
17- If you have contacted customer service,
have all your problems been resolved to your
satisfaction level?

Response

Yes, by the Yes, by my

representative constant efforts
promptly and someone
21.05% 31.58% outside the
company
47.37% No problem
was not solved

29
18- What type of complaint you have when you
purchase online?

Response

31.58%
Defective
product

Late delivery
57.89%
Poor quality
10.53%

19-?

30
TEST OF HYPOTHESIS

31
 To check whether there is significant relationship between gender and
how product is searched online?
Null Hypothesis (H0) = There is no relationship between gender and
searching of product
Alternate Hypothesis (H1)=There is significant relationship between
gender and searching of product
Search
type By By By By By Total
Price Categor Brand Product Department
y
Gender

Observed frequency – O

Expected Frequency – E

Chi-Square Test = ∑ (O-E)2/E

32
 O E O-E (O-E)2 (O-E)2/E

26
6
5
5
3
10
10
8
5
2
TOTAL

33
 FINDINGS

 Through this research it has been observed that age group 21-30 is much more
interested in doing online purchase.
 It has been found that safety of payment as well as the late delivery of products and
not able to judge he quality of products act as the barrier.
 Consumers prefer to buy more through online mode.
 The reason of the growth of online purchasing is the wide variety of products
available at a glance as well as it saves time and provide special discounts.
 People mostly search product online on the basis of price.
 People were sensitive towards security of their information, while making online
payments.
 Daily deals, exclusivity of products, convenience were major dominating factors
attracting them to choose online mode of shopping over physical mode of shopping

CONCLUSION

34
 These online shopping websites should provide the
goods on specified time.
 They should focus on the issue of safety of payment
because privacy is the biggest hindrance for online
shopping service providers.
 The hypothesis testing IS YET TO CONFORM

LIMITATIONS

35
  Short span of time acted as a major limitation in

conducting the marketing research.

 As the time was less the sample size was only 100

respondents.

LIST OF REFERENCES

Statistics and facts on internet usage in India, statista dot com, 2016

Google Forester (2014). 100 million online shoppers in India by 2016: Report. MINT, New
Delhi, India: HT Media Ltd.

36
The Kotler and Killers (2009)

Kumawat Alka, Tondon J.K., Factors influencing customer’s satisfaction level towards online
shopping in Jaipur and Gurgaon, IIJRD, Vol.3, issue 4, April 2014

Jaciow Magdalena, China-USA Business Review, October 2015, Vol. 14, No. 10, 515-522

Shushmita, Ranak, Dahiya M and Singh, E-Shopping: opportunities and challenges

perceived by consumers, IJHSS, Vol.4, Issue 6, Oct.-Nov. 2015, 1-8

Karim R.A., Customer Satisfaction in Online Shopping: a study into the reasons for
motivations and inhibitions, IOSR Journal of Business and Management, Volume 11, Issue 6
(Jul. - Aug. 2013), PP 13-20

Launtu Ansir, The Influence Of Brand Image, Customer Value, Excellent Service, And
Customer Experience Towards Customer Satisfaction And Its Impact On Customer Loyalty
Among Telecommunication Industry In South Sulawesi, Qualitative and Quantitative
Research Review, Vol.1, Issue 3, 2016

Jain Prayatna and Gangrade Shailendra, Research Journal of Management Science, Vol
5(9), 58-62, September 2016

MacInnis and Folkes 2009

Kassarjian 1982;

Ekström 2003

Shanthi R. and Kannaiah D. (2015). Consumers’ Perception on Online Shopping. Journal of

Marketing and Consumer Research, 13, 14-30

ANNEXURE - I

Q 1. What is your age group?

a) 15-25
b) 25-40
c) 40-55
d) Above 55

37
Q 2. What is your gender?
a) Male
b) Female

Q 3..What is your current occupation?

a) Student
b) Serviceman
c) Businessman
d) Housewife
e) Others

Q 4. What is your current monthly income?

a) Less than 10,000
b) 15,000-20,000
c) 20,000-30,000
d) 30,000-40,000
e) More than 60,000

Q 5. Have you ever visited an online shopping website?

a) Yes
b) No

Q 6. For how long you have been actively using the internet?
a) Less than 3 months
b) 3-6 months
c) 6-12 month
d) 1-2 year
e) 2-3 year
f) 3-4 years
g) More tha 5 years
h) Do not use at all

Q 7. Have you ever purchased anything through online shopping?

a) Yes
b) No

Q 8. Why are you choosing to shop online?

38
 a) Very convenience and time saving
b) Low price
c) Product variety
d) You can buy the rare products here
e) Others

Q 9. During past 6 months your rate of recurrence of online purchase is:

a) 1-3 times
b) 4-6 times
c) 7-9 times
d) 10 times or more
e) None

Q 10. Please indicate which one effects your satisfaction most during your previous shop
online experience.
a) Price
b) Ways the grievances were addressed
c) Loyalty for this online portal
d) Speed of delivery

Q 11. Based on your experience with online shopping, how likely are you to buy online again
a) Definitely will
b) Probably will
c) Might or might not
d) Probably will not
e) Definitely will not

Q 12. Please rank the following factors according to there importance for you while
purchasing through online shopping.

1 - Very important 2- Partly Important 3- Important 4- Neither important nor negligible

5- Unimportant
a) Reputation of company-
b) Product characteristics-
c) Ease of use-
d) Transaction security-
e) Personal information privacy-

39
 f) Trust-

Q 13.Which mode of payment you are much comfortable in?

a) Cash on delivery
b) Net Working
c) Credit Card
d) Debit Card
e) Gift Card
f) Mobile Wallet
g) Prepaid Cash Cards
h) Others (Please specify)

Q 14. Did you ever have complaint regarding online shopping?

a) Yes
b) No

If no, skip question 15,16

Q 15. If you have contacted customer service, have all your problems been resolved to your
satisfaction level?
a) Yes, by the representative promptly
b) Yes, by my constant efforts and someone outside the company
c) No problem was not solved

Q 16. What type of complaint you have when you purchase online.
a) Defective product
b) Late Delivery
c) Poor Quality
d) Others _________________________________(please mention)

Q 17. Please rate them as according to the satisfaction or dissatisfaction you have with
online shopping.

Strongly agree agree neutral disagree Strongly disag

1. It is convenient
to order the
products .
2. It provides
plenty of
brand/ product
choices.
3. It provide

40
 products at
lower prices.
4. The latest
product
information is
easily obtained.
5. The price is
more important
than quality.
6. Speed of
delivery is as
per
requirement.
7. It provides
products cannot
be found in
retail stores.

Q 18. How likely is it that you would recommend ONLINE SHOPPING to a friend or
colleague?

Extre
Not at all
1 2 3 4 5 6 7 8 9 mely likely
likely – 0
- 10

Not at all, likely, extremely likely

41