CHAPTER-1

INTRODUCTION

Online shopping is the process whereby consumers directly buy goods,

services etc. from a seller interactively in real-time without an intermediary
service over the internet. Online shopping is the process of buying goods and
services from merchants who sell on the Internet. Since the emergence of the
World Wide Web, merchants have sought to sell their products to people who
surf the Internet. Shoppers can visit web stores from the comfort of their homes
and shop as they sit in front of the computer. Consumers buy a variety of items
from online stores. Nowadays, online shopping is a fast growing phenomenon.
Growing numbers of consumers shop online to purchase goods and services,
gather product information or even browse for enjoyment. Online shopping
environment are therefore playing an increasing role in the overall relationship
between markets and their consumers (look et al., 2008). That is, consumer-
purchases are mainly based on the cyberspace appearance such as pictures,
image, quality information, and video clips of the product, not on the actual
experience. As the internet has now become a truly global phenomenon, the
number of internet users worldwide is expected to reach 1.8 billion by 2010
according to the survey of click stats, this growing and diverse internet
population means the people having diverse taste and purposes are now going
to web for information and to buy products and services. The wide use of
internet and the rapid growth of technology have created a new market for both
the customers and business. Now day’s internet is not just another medium to
get in touch with customers, but it is an important channel to find potential
customers as well as channel to continue relationship with existing customers.
Essentially, the idea of online shopping is to lead customers to a convenient
way of shopping. Customers will be able to save their time and money, plus
retrieve all the product information with just few clicks in few minutes. Plus,
purchasing can be done anywhere, anytime according to their preferences.
 Objectives of the Study
 To find out the satisfaction level of the customer for online
purchase.
 To know the specific reasons for which purpose customers purchase
in online.
 To find out the consumers’ satisfaction level for services provided
by the online shopping.
 SCOPE OF STUDY

 To know there brand loyalty.

 To know about which purchase type people prefer most.
 To find out the reason for buying products.
 To find out the price range that people prefer most.
 To know which features they admire in their product
 LIMITATIONS OF STUDY
 The study is confined to Coimbatore city only
 The study is based upon the consumer behaviors of online shopping
 The data collected for the research is fully on primary data given by
the respondents. There is chance for personal bias. So the accuracy
is not true
 RESEARCH METHODOLOGY

 The Research Design Used For The Study

The research design used for the study is descriptive. Descriptive
research studies are those, which are concerned with describing the
characteristics of a particular individual or group. The studies concerned
with specific prediction with narration of facts and characteristics concerning
individual group or situation are all examples of descriptive research studies.

 Population Size
The total population size is indefinite.

 Sample Size
This refers to the number of items to be selected from the total population to
constitute the sample. The sample size used for study is 50.

 Sample Design
It is a definite plan for obtaining a sample from a given population. It refers to
the technique the researcher adopts in selecting items for the sample. The
respondents are selected based on convenient sampling.

 Statistical Tools
The data collected through questionnaires were analyzed using simple
percentage analysis and ranking analysis.
CHAPTER-2
 INDUSTRY PROFILE
E-Commerce is the sales channel of the future. The characteristics of the global
electronic market constitute a unique opportunity for companies to more
efficiently reach existing and potential customers by replacing traditional retail
stores with web-based business (Limayem, Khalifa, & Frini, 2000). There are two
forms of E-Commerce, one is business to business and another is business to
consumer. The Business to consumer is also called online shopping.

Online shopping indicates electronic commerce to buy products or services

directly from the seller through the Internet. Internet-based or Click and Order
business model has replaced the traditional Brick and Mortar business model.
More people than before are using the web to shop for a wide variety of items,
from house to shoes to airplane tickets. Now people have multiple options to
choose their products and services while they are shopping through an online
platform.

Online shopping has unique characteristics. Huseynov and Yıldırım (2014)

emphasized that the lack of physical interaction tends to be the critical
impediment in online retail sales followed by the privacy of individual information
and security of financial transactions over the Internet. Demangeot and Broderick
(2010) also revealed that perceived ease of use does not affect the behavioral
pattern in this case rather influenced by security and privacy issues. No
relationship is built between the customer and the online shop in the presence of
perceived online risk even if a customer spent hours on the Internet (Zuroni&
Goh, 2012).

Background of Online shopping

 Online shopping all over the world

In 1990, Tim Berners-Lee created the first World Wide Web server and browser in
UK. It opened for commercialuse in 1991. In 1994 other advances took place, such
as online banking and the opening of an online pizza shop byPizza Hut. During
that same year, Netscape introduced SSL encryption of data transferred online,
which has becomeessential for secure online shopping. Alsoin 1994, the German
company Intershop introduced its first onlineshopping system. In 1995, Amazon
launched its online shopping site, and in 1996, eBay appeared.

Originally, electronic commerce was identified as the facilitation of commercial

transactions electronically, usingtechnology such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT). These were bothintroduced in the late
1970s, allowing businesses to send commercial documents like purchase orders
or invoiceselectronically. The growth and acceptance of credit cards, automated
teller machines (ATM) and telephone bankingin the 1980s were also forms of
electronic commerce. Another form of e-commerce was the airline
reservationsystem typified by Sabre in the USA and Travicom in the UK.

From the 1990s onwards, electronic commerce would additionally include

enterprise resource planning systems(ERP), data mining and data warehousing. In
1990, Tim Berners-Lee invented the World Wide Web web browserand
transformed an academic telecommunication network into a worldwide
everyman everyday communicationsystem called internet/www. Commercial
enterprise on the Internet was strictly prohibited by NSF until 1995.Although the
Internet became popular worldwide around 1994 with the adoption of Mosaic
web browser, it tookabout five years to introduce security protocols and DSL
allowing continual connection to the Internet. By the end of2000, many European
and American business companies offered their services through the World Wide
Web. Sincethen people began to associate a word "ecommerce" with the ability
of purchasing various goods through theInternet using secure protocols and
electronic payment services.

Timeline: -

 1979: Michael Aldrich invented online shopping in UK.

 1981: Thomson Holidays, UK is first B2B online shopping
 1982: Minitel was introduced nationwide in France by France Telecom and
used for online ordering.
 1984: Tesco is first B2C online shopping and Mrs Snowball, 72, is the first
online home shopper
 1985: Nissan UK sells cars and finance with credit checking to customers
online from dealers' lots.
 1987: Swreg, an online payment processor that is the best Paypal alternative
for global businesses begins toprovide software
 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using
a NeXTcomputer in UK.
 1992: Terry Brownell launches first fully graphical, iconic navigated
Bulletin board system online shoppingusing RoboBOARD
 1994: Netscape, US Computer Services Company releases the Navigator
browser in October under the codename Mozilla. Pizza Hut offers online
ordering on its Web page.Netscape 1.0 is introduced in late.
 1994 SSL encryption that made transactions secure.
 1995: Jeff Bezos, CEO of Amazon Inc., USA launches Amazon.com and the
first commercial-free 24 hour.Internet-only radio stations, Radio HK and
NetRadio in US start broadcasting. eBay is founded by
computerprogrammer Pierre Omidyar as Auction Web in US.
 1998: Electronic postal stamps for people residing in US can be purchased
and downloaded for printing fromthe Web.
 1998: Alibaba Group is established in China. Alibaba Group is a family of
Internet-based businesses whichmakes it easy for anyone to buy or sell
online anywhere in the world
 1999: Business.com sold for US $7.5 million to e-Companies, which was
purchased in 1997 for US $149,000.Business.com helps small-to-medium
 enterprises discover, compare and purchase products and services to runtheir
businesses.
 2000: The dot-com bust.
 2001: Alibaba.com achieved profitability in December 2001.
 2002: eBay acquires PayPal for $1.5 billion. PayPal is the faster, safer way
to send money, make an onlinepayment, receive money or set up a merchant
account.
 2003: Amazon.com posts first yearly profit.
 2004: DHgate.com, China's first online b2b transaction platform, is
established, forcingother b2b sites to moveaway from the "yellow pages"
mode.
 2007: Business.com acquired by R.H. Donnelley for $345 million.
 2009: Zappos.com, an online shoe and apparel store acquired by
Amazon.com for $928 million.

2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the
group buying websites plans to goahead with an IPO in mid-2011. Groupon, is a
deal-of-the-day website that features discounted gift certificates ordiscount
coupons usable at local or national companies.

2011: US eCommerce and Online Retail sales projected to reach $197 billion, an
increase of 12 percent over 2010.Quidsi.com, parent company of Diapers.com,
acquired by Amazon.com for $500 million in cash plus $45 million indebt and
other obligations. GSI Commerce, a company specializing in creating, developing
and running onlineshopping sites for brick and mortar businesses, acquired by
eBay for $2.4 billion.

2012: Retail Convergence, operator of private sale website RueLaLa.com,

acquired by GSI Commerce for $180 million,plus up to $170 million in earn-out
payments based on performance through 2012. GSI Commerce is an
eBaycompany specializing in creating, developing and running online shopping
sites for brick and mortar brands andretailers.

 online shopping in Bangladesh

Increasing diffusion of ICTs especially the Internet forcing the global business
community to movetowards e-business. Online shopping gives consumers the
access to the world market, enablingthem to compare price across the region and
various sites, find out whether price varies by orderfragmentation, get awareness
about alternative products (Jagonews24.com., 2015). Consequently,the sellers
ensure that they portrayed themselves in the cyber world through websites and
portals.The sellers like consumers also benefit from the increase and more
efficient access to the globalmarket through the Internet.

Over the last several years, UNCTAD (United Nation Center for Trade and
Development) hasemphasized the importance of e-commerce, especially online
shopping for developing countries(UNCTAD, 2017). To facilitate developing
countries to transition into all sectors of e-commerce,UNCTAD has special
programs. UNCTAD has also developed rules and guideline for all types ofaglobal
e-commerce transaction. The private sector in Bangladesh should be well
prepared to meetthe requirement and expectation of the customer and also
stand out in the competition againstrivals from home and abroad because of
increasing globalization (Khan, 2014).In such a scenario, businesses need to
automate their internal processes with those of ICTs tobecome increasingly
competitive and efficient in a global context. Also, businesses have to
haveadequate presence and participation in the cyber world. Particularly, these
two issues are becoming essential for Bangladeshi corporate sector (Dhaka
Tribune, 2015).

 Emergences of online shopping in Bangladesh

Although e-Commerce operation first started in late 90s to deliver gifts to

Bangladeshi friends andfamily members by NRBs (Mohiuddin, 2014), the first real
local e-commerce or m-commerceoperation was launched by CellBazaar.com in
2006 through WAP service accessed only by mobilephones (Zainudeen,
Samarajiva, &Sivapragasam, 2011).

The growth rate of e-commerce was prolonged in Bangladesh from 2000 to 2008.
During thatperiod, there were some e-commerce websites, but there was no
system for an online transaction(Mahmood, 2015). Hardly few people knew about
those sites for the high cost of Internet, telephone connections, few credit card
holders (Hasan, 2014) and lower penetration rate. The openingup of online
payment systems, mobile payment systems, inter-banking payment gateways in
the90s by Bangladesh Bank propelled the growth of e-commerce in Bangladesh.

The continuous investment of succeeding governments in the country’s ICT

infrastructure tofulfill the vision of digital Bangladesh pulled down the Internet
cost and spread the availabilityin each 492 Upazilas of Bangladesh. The initiative
of Bangladesh Government to provide astable Internet backbone to connect all
government offices through the Internet, to encouragea well-grounded
telecommunication sector, and opening IT parks are all leading indicators
thatpoint to the online shopping industry growth potential. Tables 4 and 5 show
the Internet usageand penetration rate of Bangladesh.
 COMPANY PROFILE
We were incorporated on July 10, 1996 under the name ’Subhikshith Finance &
Investments Limited’. In 1998 we were granted a certificate of registration by the
Reserve Bank of India to carry on the business as an NBFC. In 2007 Subhikshith
Finance was acquired by Future Value Retail Limited. The name ‘Subhikshith
Finance & Investments Limited was changed to Future Ventures India Private
Limited, and after we ceased to be a private limited company, our name was
changed to Future Ventures India Limited (“FVIL”) in 2007.

FVIL is part of Future Group, which was founded on a simple idea -- Rewrite
Rules, Retain Values. Under the leadership of Mr. Kishore Biyani, Future Group
began its pioneering journey 25 years ago to transform India’s Retail space and
create a positive change in the communities, societies and business sectors in
which it operates.

Today, Future Group is an established leader in Retail through its multiple formats
spread over 15 million square feet of retail space which service customers in 85
cities and 60 rural locations across the country. Around 220 million customers
walk into Future Group-owned stores each year and buy products and services
supplied by over 30,000 small, medium and large entrepreneurs and manufacturers
from across India.

Pantaloon Retail (India) Limited (PRIL), the flagship company of Future Group,
has incubated, nurtured and brought to maturity several businesses and formats
including Future Capital Holdings (FCH), Future Generali Insurance, Future
Supply Chain, Future Agrovet, Future Media, Future Brands, Future Bazaar,
Pantaloons, Central, Big Bazaar, Food Bazaar, Home Town and Ezone.

FVIL seeks to create, build, acquire, invest in and operate innovative and emerging
businesses in India’s consumption-led sectors, which we define as sectors whose
growth and development will be determined primarily by the growing purchasing
power of Indian consumers and their changing preferences, lifestyle, aspirations
and spending habits.

As at March 2012, we have in our portfolio 14 Business Ventures of which 7 are

subsidiaries and 2 are joint ventures. We seek to access opportunities at various
stages of the enterprise growth cycle, from nascent to more mature businesses,
with a view towards medium to long-term value creation for our shareholders.
FVIL has successfully completed the Initial Public Offering of its securities and
raised Rs. 750 crore. The shares were listed on Bombay Stock Exchange Limited
and National Stock Exchange of India Limited on 10th May, 2011.
 DATA ANALYSIS AND INTERPRETATION

Age Number of responses

16-25 75
26-35 24
46-60 1

Age
16-25 26-35 46-60

1%

24%

75%

From the above diagram we can say that 75% of the respondents fall in the age
bracket of 16-25 and 24% of the respondents in the age bracket of 26-35 and the
remaining 1% in the age bracket of 46-50.
 Gender No of responses
Female 25
Male 75

Gender
Female Male

25%

75%

From the above diagram it can be seen that 75% of the respondents are Male
whereas the remaining 25% are female.
Which mode of shopping do you prefer? Number of responses
Online 34
Traditional stores 66

Which mode of shopping do you

prefer?
Number of responses
66

34

Online Traditional stores

From the above diagram we can infer that 66% of respondents still prefer brick and
mortar stores over online shopping whereas only 34% actually find online
shopping more convenient.
Number of
What are the reasons for not shopping online responses
Cannot check quality and genuinity of product 47
i do shop online for electronic items while others i prefer to do it offline. just to enjoy the
pleasure of shopping 1
No physical examination of product possible 36
Spamming advertisement 12
Will prefer online only 4

What are the reasons for not shopping online?

Number of responses
47
36

12
4
1

Cannot check quality i do shop online for No physical Spamming security problems
and genuinity of electronic items examination of advertisement
product while others i prefer product possible
to do it offline. just
to enjoy the
pleasure of shopping

From the above diagram we can infer that 47% of the respondents do not shop
online as they feel quality and genuinity of the product cannot be examined
whereas 36% feel that they cannot actually examine how the product looks and
feels, 12% of the respondents feel shopping online will result in advertisement
spamming, 4% of the respondents feel that shopping online may lead to security
problems like hacking of their passwords and accounts and a meagre of 1% feel
there might be other problem.
 Number
oof
What are the reasons for purchasing online? responses
Low product price 46
Transparent pricing 7
Price and product quality comparison 31
24*7 open 0
Product review, rating and comments available 31
Helps to remember your choice of products 5
Suggestions based upon your shopping patterns 23
Saves time 69
All products under one roof 37
Others 0

What are the reasons for purchasing online?

80
70
60
50
40
30
20
10
0 Number oof responses

From the above diagram it can be inferred that most of the respondents shop online
as they feel the cost is less, product can be compared, decision can be made seeing
the reviews, and also it saves time whereas very few respondents chose pricing and
availability as the reasons.
 Number of
How do you feel the Internet is changing the traditional in-store shopping responses
due to online stores the retailers are offering equivalent discounts to attract cuatomers 3
Payment process 24
Product order process 7
Product selection process 44
Refund benefits 11
Replacement option 11

How do you feel the Internet is changing the

traditional in-store shopping
50
45
40
35
30
25
20
15
10
5
0 Number of responses

The main benefit which the respondents see in online shopping is the wide range of
products available under one roof , unlike traditional stores where the customer
needs to visit different stores for shopping different products also the easy payment
options like EMI and discounts along with return back policy and refund benefits
attracts a large number of customers to shop online.
Technology which attracts you to shop online Number of responses
Good website performance 39
Ease of placing order 66
On-time delivery 33
Supplier's rating 12
Support order tracking/information 35
 Technology which attracts you to shop online
70
60
50
40
30
20
10 Number of responses
0

Online shopping helps to place an order with ease without any hassle and
with the capacity to handle millions of customers at the same time also with
delivery guarantee’s being made by almost every e commerce giant like
flipkart and amazon more and more people are choosing online shopping.

How do you usually find your online store? Number of responses

Google search 88
Yahoo! Search 1
Facebook — ad or post 32
Twitter — tweet or ad 0
Loyal customer 15
Other online ad 23
Television of print ads 23
 How do you usually find your online store?
100
90
80
70
60
50
40 Number of responses
30
20
10
0
Google Yahoo! Facebook Twitter — Loyal Other Television
search search — ad or tweet or customer online ad of print
post ad ads

The above image shows that google is the main source by which people find their
preferred online stores followed by ads on facebook, television and other online
ads displayed while browsing websites also word of mouth communication from
friends, relatives helps people choose a particular e commerce site.
How satisfied are you with the
products you order from e-commerce
sites? 1 2 3 4 5
Quality 20 13 19 23 25
Products matching the description 8 22 21 36 8
Look and color 17 19 7 23 18
Pricing 15 27 15 15 12
Shipping options 18 19 24 20 20
Customer service 9 23 22 25 22
Overall navigation 8 28 19 25 21
 40
36
35

30 27 28
25 24 25 25
25 23 2221 23 2322 22
20 2020 21
19 19 18 1819 19
20 17
15 1515
15 13 12
8 8 9 8
10 7

0
Quality Products Look and Pricing Shipping Customer Overall
matching the color options service navigation
description

1 2 3 4 5

The maximum satisafaction is from the products exactly matching the description
on the site followed by the overall website, pricing of the products, quality,
customer service offered b the company after the order has been delivered.

How do the e-commerce sites meet your overall

Customer experience/expectations? Number of responses
Order status are communicated quickly and on time 7
Product often delivered on time 19
Others 0
 How do the e-commerce sites meet your overall
Customer experience/expectations?
50
45
40
35
30
25
20
15
10
5 Number of responses
0

The above image shows that the customers are highly satisfied with the deliveries
which are often done on time
CHAPTER-4
 Findings
 Hence it is concluded that majority 58% of the respondents are male.
 Hence the higher 50% percentages of the respondents are falling under the category of
below 25 – 30 years age group.
 Hence the higher 46% percentage of the respondents are falling under the category of
Village area.
 Hence it is disclosed that majority 46% of the respondents are engaged on in students
 Majority 40% of the respondents are post graduate level
 Majority 56% of the respondents are belongs to Nuclear family.
 Majority 38% of the respondents are earning the monthly income below Rs.5, 000 only
 Majority 68% of the respondents visited Flipkart.com.
 Majority 42% of the respondents get awareness about websites through online
advertisement
 Majority 62% of the respondents purchased Mobiles via online channels.
 Majority 56% of the respondents Prefer online shopping for time saving.
 Majority 52% of the respondents visiting retail store before online shopping.
 Majority 42% of the respondents make purchase on Online Shopping Monthly.
 Majority 54% of the respondents strongly agree with the choice of products available in
online shopping.
 Majority 40% of the respondents consider product review before online shopping.
 Majority 54% of the respondents Agree with the detailed information about the products
in online shopping.
 Majority 52% of the respondents Agree with the easy to choose and make comparison
with other products in online shopping.
 Majority 50% of the respondents agree with the Quality of Information provided in
online shopping.
 Majority 50% of the respondents Agree with the Website layout helps in searching the
products easily.
 Majority 42% of the respondents Strongly Agree with the Safe and secure with online
shopping.
 Majority 52% of the respondents did not face any of the problems in online shopping.
 First rank given by the respondents for the Convenience in online shopping.
 Majority 76% of the respondents make payment through Cash on delivery in online
shopping.
 Majority 36% of the respondent have barrier of delivery too slow in online shopping.
 Majority 76% of the respondent satisfied with online shopping
 Conclusion
Online shopping is becoming more popular day by day with the
increase in the usage of World Wide Web known as www. Understanding customer’s need
for online selling has become challenge for marketers. Specially understanding the
consumer’s attitudes towards online shopping, making

improvement in the factors that influence

consumers to shop online and working on factors
that affect consumers to shop online will help
marketers to gain the competitive edge over others.
In conclusion, having access to online shopping has
truly revolutionized and influenced our society as a
whole. This use of technology has opened new
doors and opportunities that enable for a more
convenient lifestyle today. Variety, quick service
and reduced prices were three significant ways in
which online shopping influenced people from all
over the world. However, this concept of online
shopping led to the possibilities of fraud and
privacy conflicts. Unfortunately, it has shown that it
is possible for criminals to manipulate the system
and access personal information. Luckily, today
with the latest features of technology, measures are
being taken in order to stop hackers and criminals
from inappropriately accessing private databases.
Through privacy and security policies, website
designers are doing their best to put an end to this
unethical practice. By doing so, society will
continue to depend upon online shopping, which
will allow it to remain a tremendous success in the
future.