College of Applied Business

Gangahity, Chabahil

Research
On
Online Shopping Preference of Youth

Submitted By
Sujan Pandey

Submitted to
Ramesh Man Singh
Faculty of Financial Management

February 2018
 ACKNOWLEDGEMENT
It gives me great pleasure to present my research report on “online shopping preference
of youth in ‘Naxal’ locality.

First of all, I am grateful to College of Applied Business (CAB) for providing me this
opportunity to learn and experience how actually the research reports are prepared and
also assigning me very helpful supervisors who helped me a lot in this whole process.

I would like to express deep gratitude towards Mr. Ramesh Man Singh who gave me
his valuable suggestions, motivation and the direction to proceed at every stage. Your
kind guidance showed me the path in every stage. It extended towards the valuable
guidance, indispensable help and inspiration at times in appreciation, I offer you my
sincere gratitude.

Last but not the least I would like to thank college of applied business for providing me
with the facilities of library, lab and all my research group members, it would have been
impossible for me to complete my report without their prompt cooperation.

I have tried my level best to make this research report error free, but I regret for errors,
if any.
 EXCUTIVE SUMMARY
This research paper aims at understanding the factors influencing the consumer’s
buying behavior of online shopping. When the digital age entered in Nepal, the use of
smartphone increases along with the use of internet to buy and sell goods and services.
Few years back people were not aware about the use of online shopping and how it can
make their life simple and save their valuable time. But now there are many people who
are doing shopping through online. Although many people have started using online
shopping there is no any record or track of the consumers preferences and their buying
behavior. There is no record what type of consumers use online shopping regarding
their age, income level and educational background. This research therefore aims to
shed light upon to collect the data and information regarding the preference of youth
towards online shopping and the factors influencing the buying behavior of consumer
of online shopping.

This research is done by collecting the information from youth of Naxal area. Youth is
the time of life when one is young, and often means the time between childhood and
adulthood. It is also defined as the appearance, freshness, vigor, spirit, etc.,
characteristic of one who is young. There are three stages of adult. Young adult age
range between 18-35, Middle-adult age range between 36-55 and Older adults age
range above 55 years. This research has included young and middle adult. As this
research is done considering the youth, therefore age range between 14-55 is taken for
data collection.

A total of 50 respondents from different age groups, gender and occupation have been
taken to conduct this study. Various interesting information regarding the preference of
youth and the factor influencing buying behavior have been found out in the course. I
have found out through this research that; youth are interested in online shopping and
quality of product, and their income level are the most detrimental factor at the time of
online shopping.
 TABLE OF CONTENTS

ACKNOWLEDGEMENT ................................................................................................ i

EXCUTIVE SUMMARY .................................................................................................ii

CHAPTER ONE ............................................................................................................. 1

INTRODUCTION .......................................................................................................... 1

1.1 Context Information ................................................................................................. 1

1.3 Objectives of the study ............................................................................................. 3

1.4 Significance of study ................................................................................................ 3

CHAPTER TWO ............................................................................................................ 5

LITERATURE REVIEW ................................................................................................. 5

CHAPTER THREE ...................................................................................................... 14

RESEARCH METHODOLOGY ................................................................................... 14

3.1 Introduction ........................................................................................................... 14

3.1.1 Research Design ......................................................................................................... 14

3.1.2 Population and Sample ............................................................................................... 14

3.1.3 Method of Data Collection ......................................................................................... 15

3.1.4 Data Analysis .............................................................................................................. 15

CHAPTER FOUR ........................................................................................................ 16

DATA PRESENTATION AND ANALYSIS ................................................................... 16

4.1 Age of the Respondents. ................................................................................................ 16

4.2 Gender............................................................................................................................ 17

4.3 Heard about online shopping ......................................................................................... 18

4.4 Use online shopping services......................................................................................... 18

4.5 Often buy products ........................................................................................................ 19

4.6 Types of Product ............................................................................................................ 20

4.7 Spend ............................................................................................................................. 21

4.8 Comfortable ................................................................................................................... 22

 4.9 Satisfied ......................................................................................................................... 23

4.10 Satisfied with quality ................................................................................................... 24

4.11 Affect lives................................................................................................................... 25

4.12 Problem Face ............................................................................................................... 26

4.13 Website Prefer ....................................................................................................................... 27

4.14 On holiday ................................................................................................................... 28

4.15 Satisfied with price ...................................................................................................... 29

4.16 Process ......................................................................................................................... 30

4.17 Discount ....................................................................................................................... 31

4.18 Improve technology ..................................................................................................... 32

4.19 Develop society ........................................................................................................... 33

4.20 Save time ..................................................................................................................... 34

4.21 Payment method .......................................................................................................... 35

4.22 Like web page .............................................................................................................. 36

Findings ......................................................................................................................... 1

CHAPTER FIVE ............................................................................................................ 2

CONCLUSIONS............................................................................................................. 2

REFERENCES ............................................................................................................... 3

APPENDICES ................................................................................................................ 1
 LIST OF TABLES

Table 4.1: Age.............................................................................................................. 16

Table 4.2 Gender .......................................................................................................... 17
Table 4.3: Heard About................................................................................................ 18
Table 4.4: Use .............................................................................................................. 18
Table 4.5: Often Buy Products..................................................................................... 19
Table 4.6: Types of Product ......................................................................................... 20
Table 4.7: Spend .......................................................................................................... 21
Table 4.8: Comfortable ................................................................................................ 22
Table 4.9: Satisfied ...................................................................................................... 23
Table 4.10: Satisfied with Quality ............................................................................... 24
Table 4.11: Affect Lives .............................................................................................. 25
Table 4.12: Problem Face ............................................................................................ 26
Table 4.13: Website Prefer .......................................................................................... 27
Table 4.14: On Holiday................................................................................................ 28
Table 4.15: Satisfied with Price ................................................................................... 29
Table 4.16: Process ...................................................................................................... 30
Table 4.17: Discount .................................................................................................... 31
Table 4.18: Improve Technology ................................................................................. 32
Table 4.19: Develop Society ........................................................................................ 33
Table 4.20: Save Time ................................................................................................. 34
Table 4.21: Payment Method ....................................................................................... 35
Table 4.22: Like Webpage ........................................................................................... 36
 LIST OF FIGURES

Figure 4.1: Age ............................................................................................................ 16

Figure 4.2: Gender ....................................................................................................... 17
Figure 4.3: Heard About .............................................................................................. 18
Figure 4.4: Use ............................................................................................................. 19
Figure 4.5: Often Buy Product ..................................................................................... 20
Figure 4.6: Types of Product ....................................................................................... 21
Figure 4.7: Spend ......................................................................................................... 22
Figure 4.8: Comfortable ............................................................................................... 23
Figure 4.9: Satisfied ..................................................................................................... 24
Figure 4.10: Satisfied with Quality .............................................................................. 25
Figure 4.11: Affect Lives ............................................................................................. 26
Figure 4.12: Problem Face ........................................................................................... 27
Figure 4.13: Website Prefer ......................................................................................... 28
Figure 4.14: On Holiday .............................................................................................. 29
Figure 4.15: Satisfied with Price.................................................................................. 30
Figure 4.16: Process ..................................................................................................... 31
Figure 4.17: Discount................................................................................................... 32
Figure 4.18: Improve Technology ............................................................................... 33
Figure 4.19: Develop Society ...................................................................................... 34
 CHAPTER ONE

INTRODUCTION

1.1 Context Information

Online 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. Consumers
find product of interest by visiting the website of the retailer directly or by searching
among alternative vendors using a shopping search engine, which displays the same
product’s availability and pricing at different e-retailers. Customers can shop online
using a range of different computers and devices, including desktop computers, laptops,
tablet computers and smartphones.

Online stores must describe products for sale with text, photos, and multimedia files,
whereas in a physical retail store, the actual product and the manufacturer's packaging
will be available for direct inspection (which might involve a test drive, fitting, or other
experimentation). Some online stores provide or link to supplemental product
information, such as instructions, safety procedures, demonstrations, or manufacturer
specifications. Some provide background information, advice, or how-to guides
designed to help consumers decide which product to buy. Some stores even allow
customers to comment or rate their items. There are also dedicated review sites that
host user reviews for different products. Reviews and even some blogs give customers
the option of shopping for cheaper purchases from all over the world without having to
depend on local retailers. In a conventional retail store, clerks are generally available
to answer questions. Some online stores have real-time chat features, but most rely on
e-mails or phone calls to handle customer questions. Even if an online store is open 24
hours a day, seven days a week, the customer service team may only be available during
regular business hours.

Online stores typically enable shoppers to use "search" features to find specific models,
brands or items. Online customers must have access to the Internet and a valid method
of payment in order to complete a transaction, such as a credit card, an Interac-
enabled debit card, or a service such as PayPal. For physical products (e.g., paperback
books or clothes), the e-tailer ships the products to the customer; for digital products,
such as digital audio files of songs or software, the e-tailer typically sends the file to
the customer over the internet. The largest of these online retailing corporations
are Alibaba, Amazon.com, and eBay. Online stores are usually available 24 hours a
day.

In contrast, visiting a conventional retail store requires travel or commuting and costs
such as gas, parking, or bus tickets, and must typically take place during business hours.
Delivery was always a problem which affected the convenience of online shopping.
However, to overcome this many retailer including online retailers in Taiwan brought
in a store pick up service. This now meant that customers could purchase goods online
and pick them up at a nearby convenience store, making online shopping more
advantageous to customers.

Online shopping is for all kind of people. It can be for young, old, women, and so on.
In this modern era, every kind of people use online shopping. It has been like daily
activities for some people too. The study shows that mostly young people use online
shopping. They buy clothes and other electronic accessories the most. People say that
it is convenience to use online shopping and they can shop 24×7. People get cheap
deals and better prices from online stores. Online shops make comparison and research
of products and prices possible. It is time saving and energy saving too. Person can
easily login to online site while sitting at home. People while sitting at one place, can
reach to number of products with different varieties and can order them and would get
them at their door step.

1.2 Statement of Problem

Nepalese online market is an emerging market; there are many online companies that
are targeting as their market. Some of the major international companies are Daraz,
Alibaba, Amazon, etc. the market share of international brand is decreasing as local
companies like Sasto Deal, Hamrobazaar, Kirana are operating online shopping at very
low price compare to the international companies.

Here the main problem lies in attracting the new consumer and retaining the current
ones therefore understanding consumer preference is the most. Their taste, needs and
preference are changing day by day.

This research is guided towards determining online shopping preference of youth of

Nepal. The major problems identified regarding the use of online shopping, satisfaction
of customer and to identify the attributes which are significant in preference of a special
 company. This research will help in determining the frequency of use of online
shopping by youth according to their age, income level and educational background.

1.3 Objectives of the study

This study is conducted with certain objectives and to serve specific purposes. The
specific objectives are:

• To know the preference of youth on online shopping

• To determine which types of goods are bought online.
• To determine which payment methods are used when shopping online
• To measure how often youth are shopping online
• To determine the average spending and frequency of purchase over the internet
• To fulfill the requirement of the college

1.4 Significance of study

This study is helpful for all those people who are concerned about online shopping.
This detail sample survey will be helpful for those people who have interest in online
shopping and also promote digital system in Nepal.

1.5 Hypothesis

A hypothesis is a specific, testable prediction about what you expect to happen in a

study. Researchers might draw a hypothesis from a specific theory or build on previous
research. Since the study relates with finding the relationship of gender, educational
qualification, internet literacy, online product price and website usability with
online shopping/purchase., hence the hypothesis of the study can be taken as:
1. Online shopping has no significant relationship with Gender.
2. Online shopping has no significant relationship with education qualification.
3. Internet Familiarity/Literacy has no significant relationship on online shopping.
4. Online Product price has no significant relationship with online purchase.
5. Website usability has no significant relationship with online purchase.

1.6 Limitations

This study has certain limitations.

1. The area of the study covers only Naxal area.
2. The sample size is limited to 50.
3. The study is largely based on the perceptions of respondents.
4. The data was collected through the structured questionnaires and analyzed
based on the information given by the respondents.
5. There was limited time for data collection and research.
6. Today’s findings may not hold true for the future.
7. The study was only made up of the users of online shopping.
 CHAPTER TWO

LITERATURE REVIEW
A number of researches have been carried out by academics and scholars on identifying
and analyzing the preference of youth and the factors influencing the consumers’
buying behavior and as a result, various factors have been identified. Different authors
have provided their findings on this topic. For instance, Bhatnagar (2000) suggested
that online shopping is perceived as quite risky. This risk includes fear of use of
technology and overload information, feeling of confusion and uncertainty and also
feeling of insecurity due to the loss of privacy.
There are many website quality elements that shape the consumer’s perceptions and
influence consumer online shopping attitudes and behavior. These website quality
elements are classified into five categories as their purpose. According to Song and
Zahedi (2001) the classification is for promotion, service, international influence, self-
efficacy, and resources facilitation.
.

Similarly, Benedict (2001) study reveals that perceptions toward online shopping and
intention to shop online are not only affected by ease of use, usefulness, and enjoyment,
but also by exogenous factors like consumer traits, situational factors, product
characteristics, previous online shopping experiences, and trust in online shopping.

Solomon (1998) studied the Consumer behaviour and said that it is the study of the
processes involved when an individual select, purchases, uses or disposes of products,
services, ideas, or experiences to satisfy needs and desires. In view for the Internet to
spread out as a retail channel, it is imperative to realize the consumer’s mind set,
intention and conduct in light of the online buying practice.

Schiffman, Scherman, &Long (2003) in his study researched that “yet individual
attitudes do not, by themselves, influence one’s intention and/or behaviour. Instead that
intention or behaviour is a result of a variety of attitudes that the consumer has about a
variety of issues relevant to the situation at hand, in this case online buying. Over time
the Internet buyer, once considered the innovator or early adopter, has changed. While
once young, professional males with higher educational levels, incomes, tolerance for
risk, social status and a lower dependence on the mass media or the need to patronize
established retail channels (Ernst & Young, 2001; Mahajan, Muller & Bass, 1990),
Li and Zhang (2002) examined the representative existing literature on consumer online
shopping attitudes and behaviour based on an analytical literature review. In doing so,
this study attempts to provide a comprehensive picture of the status of this subfield and
point out limitations and areas for future research. They decided to restrict their search
of research articles to the period of January 1998 to February 2002. The other two
criteria for selection are the articles are empirical in nature, and the articles measure at
least one of the identified factors in our taxonomy they searched three primaries IS
conference proceedings volumes: International Conference on Information Systems
(ICIS), Americas Conference on Information Systems (AMCIS), and Hawaii
International Conference on Systems Science (HICSS). They also checked the
reference sections of the selected articles to identify and include additional prominent
articles in this area. Three out of the five dependent variables (consumer attitudes,
intentions, and purchasing behaviour) and three out of the five independent variables
(personal characteristics, vendor/service/product characteristics, website quality)
receive the most attention. This seems to constitute the main stream of research in this
area. It is found that personal characteristics, vender/service/product characteristics,
and website quality significantly affect online shopping attitudes, intention, and
behaviour. The direct implication of these findings is that targeting more appropriate
consumer groups, improving product and/or service quality, and improving website
quality can positively influence consumer attitudes and behaviour, possibly leading to
increased 13 frequency of early purchase and replication purchases on the part of
customers. This methodological matter wants to be addressed in upcoming research so
that a validated instrument can be developed for evaluating consumer online shopping
approaches and behavior.
Iyer and Eastmen (2014) found that the population of senior who are more literate, more
knowledgeable and who are more aware of the technology and those who have a
positive behaviour towards online shopping and internet are more into online shopping.
But the population of senior who are less aware of the internet and the shopping sites
are less involved in the shopping sites because they do not have a positive attitude
towards online shopping rather they are much more interested in offline shopping and
the seniors who are more involved in the internet uses more online sites for purchasing
the goods over the internet. The senior which have more knowledge about the internet
and the shopping sites they compare both the shopping i.e. online and offline shopping
for their purchasing of goods. However, their knowledge and the use of internet by
them has no connection with their age and their satisfaction level while purchasing
online.

Jayawardhena and Wright (2009) focused the antecedent of online shopper’s

excitement, its consequences for behavioural intentions as expressed by intent to return,
and positive word of mouth communication. A conceptual model is developed based
on the literature; instrument item scales to measures all constructs in the model were as
informed by the literature and adapted from prior studies. They found that the
convenience, involvement, attribute of the web site and merchandising all collectively
influence shopper’s excitement. E-shopper excitement leads to positive word-of-mouth
(WOM) and increases the intent to return. The limitation of this study was that there is
no differentiation is made between the types of goods that e-commerce purchased.

Broekhuizen and Jager (2003) investigated to get a better understanding of channel

choice by developing a theoretical framework that shows the relationship between the
antecedents and mediators of perceived and purchase intention in both channels. The
result indicates the main determinants of channels choice and enables comparison
between online and offline Shoppers’s perception. The result determined the factors
that encourage or prevent consumers to engage in online shopping.

Delafrooz, Narges et al. (2010) analyzed that there were four main factors which
influenced consumers’ attitude towards online shopping. Those factors were utilitarian
orientation, convenience, price and wider selection. He discussed that there were three
more things which affected the sales of e-retailers. Those were personalities of
consumers, online shopping perceived benefits and material of shopping sites. if a e-
marketer wanted to utilitarian’s as their consumers then they should be task oriented
and if they wanted hedonics as their consumers, they should focus on the attractiveness
and user friendly attributes of their shopping sites.
Saprikis, Vaggelis et al. (2010) analyzed the perceptions of Greek university Student’s
on online shopping in terms of demographic profile, expectations of online stores,
advantages and problems related to online purchases. He found that there were lot of
differences regarding online purchases due to the various consumers’ characteristics
and the types of products and services. The results showed significant differences
between the two groups of respondents, the adopters who were involved in the online
shopping and the nonadopters who were not interested in online shopping. Adopters
were having higher expectations from emarketers on issues related to privacy policy
and risk. The differences found were related to their particular perceptions on
advantages and problems of online shopping.
Syed et al. (2008) analyzed that there were four key factors which influenced the young
consumers’ perceptions towards online shopping. They found that those factors were
website design, website reliability, customer service and privacy. They also discussed
that there was no difference among the perceptions of various races towards online
shopping in Malaysia. The most consistent factor that influenced buyer’s behavior
towards online shopping was found to be Trust. E-retailers need to add trust and
reliability which is everything for the buyers
Asakawa and Okano (2007) analyzed the factors influencing consumers’ perception of
online shopping and explained how this perception affects their online-shopping
behaviour. From the research, they found that those factors were convenience, anxiety
regarding security and poor navigation. He found that convenience had a positive
influence on online shopping whereas anxiety regarding security and poor navigation
had a negative influence.
Shergill and Chen.(2005), discussed the relationship between the factors affecting the
buyers’ behavior towards online shopping and the type of online buyers. They also
investigated the different perceptions of different types of online buyers towards the
online shopping. They found website design, website reliability, website customer
service and website security or privacy were the factors which were influencing their
buying behavior of different people. This research also found the different perceptions
and evaluation criteria of the four types of online buyers; i.e., trial, occasional, frequent
and regular online buyers.
Khalifa and Liu (2007), analyzed a model named the information systems continuance
model in the field of online shopping with the use of contingency theory which showed
the roles of online shopping habit and experience of the same and found that they both
were having positive effects, if there was satisfaction in the e-buyers due to these two
factors. They analyzed that the effects of online shopping habit on online repurchase
intention were mediated through satisfaction. The final outcome of this research was
online repurchase intention was not only an outcome of a rational analysis of
satisfaction, both habit and experience were also the factors which attracted the buyers.
Adams et al. (2004) discussed the underlying factors related to personal online
shopping in the workplace. They also gave the reasons for online shopping at work and
those were boredom, connection speed, convenience, work life balance, efficiency etc.
In their study they found that Americans were more fond of shopping online at
workplace than Canadians. The main reason that they realized was faster connection.
They said that corporate monitoring had an average effect on online shopping at
workplace as job satisfaction was less or average at the place where monitoring was
there.
Changchit (2006), examined the perception of customers towards online shopping and
the various factors which were perceived in different manners by those who were e-
buyers and those who were not in online shopping. By this study he found that there
were five factors which were perceived differently by the above mentioned two groups
of consumers. Those factors were perceived risk with online shopping, past experience
with online shopping, perceived benefits of online shopping, perceived ease of online
shopping, perceived uncertainty of online shopping.
Hirschman and Holbrook, (1982), suggest that Motivations of Consumers to engage in
online shopping include both utilitarian and hedonic dimension. Whereas some Internet
shoppers can be described as “problem solvers” others can be termed seeking for fun,
fantasy, arousal, sensory stimulation and enjoyment.

H and Hsu (2008) conducted a study in Taiwan. Online shopping conditions are
different from regular shopping in many ways. Shopping site look and fulfilment
systems is like front employee, second, every online deal involves number of third
parties, such as credit card clearance companies, and delivery firms. So, a new customer
satisfaction index is required, to quantity customer satisfaction in online atmosphere.
The new model customer expectation is substituted by trust and facilities quality is
exchanged by e-SQ. One more supplementary relationship introduced which is form
trust to customer faithfulness. The outcome shows that customer satisfaction is most
important features that decide online customer loyalty. Online Trust makes a positive
impact on perceived value, customer satisfaction and customer loyalty. This result
suggests that e- SQ might be more significant than another factor. There is some
deficiency of study, i.e. it is based on one -site random sample scheme which limits the
generalizability.

Chaing and Dholakia (2014) carried out a study in which they examined the purpose
the customer to purchase goods online during their shopping. Mainly there are three
variables in their study those affects the consumer to purchase online or to go offline.
Those are the accessibility features of the shopping sites, the type of the products and
their characteristic, and the actual price of the product. The study revealed that the
accessibility and the convenience of the shopping sites create the intention in the
customer to purchase or not. When there is difficulty faced by a consumer to purchase
online then the customer switch to the offline shopping for the purchase behaviour and
the consumer face difficulty in offline purchasing then they go to the online purchasing.
After relating both the medium of shopping the consumer said that the online shopping
is more convenient for them and gives more satisfaction which inspires the consumer
to purchase online in the internet.

Tabatabaei (2009) has explored the opinion of the consumer who are purchasing online
and the consumer who are purchasing from offline market. The objective is to know
why the traditional customer chooses to shop online and what are the factor influence
then to purchase online and what are the factor for them to not use the sites for shopping.
He has done a survey of 264 respondents in a small mall and then those data were
analysed by him. All the customer of this study is literate and has knowledge on
computer and internet. The survey consists some of the question like demographic
profile, computer knowledge and the knowledge over the internet. The outcome of the
study was that the consumers of online shopping use to shop online more than one time
in a month and the consumer of offline shopping shop one to five times in a year from
shopping sites.

Danaher et.al (2003) focused on the loyalty of the 100 brands over the online shopping
and offline shopping of 19 product of the grocery. They compared the grocery items of
both the shopping with starting model which is a new segmented of Dirichlet model,
this model has very dominant features which gives the exact classes for the brand choice
and also gives the 14
real model for the purchasing behaviour. The outcome of the study revealed that the
reality of the high brands by the high market shares bought the online shopping much
greater than the expected. But in case of the small share brand it is just reversed.
However, in the traditional shopping the expectations and the observations are not at
all links to the brand share.

Soopramanien and Robertson (2007) conducted a study in UK on acceptance and

practice of online shopping. Their exploration shows that the online consumers choose
different course of action based on the apparent beliefs. They found that, how socio
demographic variables, attitude and beliefs towards internet shopping effect on the both
decisions to practice and use of online shopping channels. They categorised online
buying behaviour as the one who purchase from online sites and the one who only
browse online sites and purchase from the store, and third those who do not buy online.
The study does not cover the buyers who choose products in stores and buy online.

Jin and Kato (2004) attempted from that eBay market watch 88% of online graded cards
are graded 8 or above. According to Beckett price guide, the value of a card grade 8
often doubles the value of card graded 7. This is collective to the experiment outcomes.
It was clear that most graded cards traded online are significantly superior in quality
than ungraded cards in both retail and online market.

Johnson et.al (1999) discussed to identify the factors influencing online shopping. This
paper seeks to identify web consumer’s demographic attitude toward shopping and
reasons of online buying behaviour. This survey asked member of WVTM (Wharton
virtual test market) whether they have purchased anything online. This study concludes
that the consumer shop online or use online facilities to save time. The result of these
study suggests several suggestions for the design of online shopping environment such
as shopping site should make it more suitable to buy standard to repeat purchase items,
they should provide the information needed to make a purchase decision and purchasing
process should be easy for the consumer. This paper conclude that the consumer
appears to value the web time saving over its cost saving. The consumer attitude may
change over time, accessibility rather than cost saving. The results show that the people
who spend more money online have a weirder lifestyle is on the net more and receives
more emails compared to the other email users and internet users.
Liu et.al (2008) addressed an empirical study on Chinese customers for shopping
online. They proposed a model of satisfaction process in the e-commerce environment.
The research work was limited to single country and may not be directly applicable to
western countries. The outcome of this study shows that customers services are
strongly, predictive of online shopping customer satisfaction. Further delivery and
customer service are very important role in Chinese market. The wide range of
commodities and competitive price is important, because online customer can compare
the price in one click. Detailed and complete product information should be given
because buying decision is only made with the decision available online. The first
impression is the design of website, its content. This can improve customer satisfaction.
Web site transaction capability is necessary element to complete a transaction.
Continence and easy to use function can save time and improve satisfaction. Finally,
security and privacy become spotlight in their findings because ID authentication while
making online transaction and credit system is not available in china.
Scarborough and Lindquist (2006) studied an empirical study on E-shopping in a
multiple channel environment in which a segmentation schema is suggested based on
patterns of e-purchasing and e-browsing including browsing on the internet with
planned purchasing in an offline channel. They examine self-report of browsing and
purchasing using five specifics non store channels like internet, television, infomercial,
advertising that accompanies regular television programming, television shopping
channels, and print catalogues. The finding of this study shows that the buyer who
browse or purchase online, different in their use of multichannel options related to their
perception of ease. Some buyers want to purchase in store setting and do not want
multiple forms of non-store shopping. Other like to browse different non store media,
they extended their browsing to the internet, however keep their loyalty to purchase in
store.
Harn and Adeline (2008) focused in Malaysia about Web navigation behaviour of
Malaysian in relation to online purchasing. There finding shows that most of the
shoppers were well educated with minimum bachelor degree, their age varies between
19 to 34 and they all are unmarried. This study proved successfully that the web
navigation behaviour is important factor to determine the probability of online
purchasing, and it does not have significant affect for online purchasing decision. The
most dissatisfying factor was slow downloading rate of web pages. The finding
provides some insight while designing website, taking into consideration that it should
be easy to use, attractive and user friendly with faster downloading time.
Jarvelainen (2007) analysed in her empirical study in Finland that there are many online
information seekers who choose to stop the shopping process just before the finishing
point of the transaction. The reason behind this is intensely rooted in the internet-based
trust outcomes. The study focuses on e-commerce background. I-e. Security and
confidentiality issue, that how consumer select their purchasing channels. The finding
of this study shows that constancy, trust worthiness, and usefulness as well as ease of
the use of the system are essential, while the first imprint of online seller is significant,
considering the behavioural intention.
Jiang et, al (2008) shown in their empirical study about US customer worries on internet
security, while shopping over the internet can influence online buying behaviour and
these worries may lead to identify theft. A good strategy to increase consumer trust
while ordering online could be third party certification programs. The result of this
study was that displays of third-party logos have direct effect on consumer’s perception
of logos, which influence the transfer of trust towards e-retailer. This study concludes
that the logos are ineffective when consumer is unfamiliar with it or do not notice the
logo display. In order to increase the customer trust e-retailer can first target people
who are experienced and knowledgeable about online shopping and have attained a
positive level of trust in e-tailer. Second participate in well-known and trustworthy
third-party assurance programs and work to educate consumers about the significance
of the third-party logos when consumer have low current level of trust. The media have
extended the browsing to internet however keep their loyalty to purchase in store.
Hansen and Jensen (2009) conducted a study in which they seek to examine shopping
orientation and online clothing purchase across four different gender related purchasing
context. A conceptual model for understanding the impact of shopping orientation on
consumer online clothing purchase is proposed and tested both in a general setting and
across purchasing context. Questionnaires were distributed to 1,150 Danish household
addresses by use of the “drop of call back” survey method. Most adults provided
response with respect to purchasing clothing for themselves and for their partner,
making a total of 906 cases distributed across the four purchasing contexts. T tests and
linear structural equation modelling were utilised to investigate expectations and
hypotheses. They found that the expected difference s in men’s and women’s shopping
orientations willingness to purchase clothing online. On average, consumer indicate the
reduced difficulty in selecting items is sorely needed when purchasing online clothing,
but when evaluated among different purchasing situations, it is difficult to perceived in
selecting items only for women. Less fun, significantly affected online clothing
purchase for men purchasing for themselves, but not for women.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction
Methodology is generally a guideline system for solving a problem, with specific
components such as phases, tasks, methods, techniques and tools. situation instead of
interpreting and making judgments. The study is based on the conversation with the
local people. The study is completely based on the experience, exposure and
observation. In addition, it also includes sampling procedure, and techniques used for
data collection. Following procedure has been applied to find out the Online Shopping
Preference of Youth.

3.1.1 Research Design

Research Design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem research. The current
research is descriptive in nature. Descriptive research can be explained as relating
something, some phenomenon or any particular condition. Descriptive researches are
those researches that explain the existing situation instead of interpreting and making
judgements. The study settings will be non-contrives i.e. field study. It means a survey
method will be used to find out the detail information about the preferences of youth
on online shopping

3.1.2 Population and Sample

A research population is generally a large collection of individuals or objects that is the
main focus of a research. It is composed of two groups i.e. target population and
accessible population.

For this research work, we will be using accessible population because it is the portion
of the population to which the researcher has reasonable access and may be a subset of
the target population. Hence, the population for this research is unknown.

Sample is the portion of population which the researcher has taken in order to conduct
research on them. Sampling is the process of taking a subset of subjects that is
representative of the entire population. The sample must have sufficient size to warrant
statistical analysis. Sample size is a count of the individual samples or observations in
any statistical setting, such as public opinion survey. Sample size of this research is 50.
3.1.3 Method of Data Collection
Data collection is the process of gathering and measuring information on targeted
variables in an established systematic fashion, which then enables one to answer
relevant questions and evaluate outcomes. Data collection is categorized into two types:
primary and secondary.

Data observed or collected directly from first-hand experience is called primary data.
The process of data collection in which we collect the data ourselves is called primary
data collection. Primary data is information that you collect specifically for the purpose
of your research project. There are many methods of collecting primary data.

Published data and the data collected in the past or other parties are called secondary
data. Secondary data is the data that have been already collected by and readily
available from other sources. The data collection process in which the data is collected
by someone other than the user is known as secondary data collection.

This research is based on primary data collected by questionnaires.

3.1.4 Data Analysis

Data analysis is the process of inspecting, cleansing, transforming, and modeling data
with the goal of discovering useful information, informing conclusions, and supporting
decision-making. In this study, descriptive statistics is used to analyze the data and
information. Descriptive statistical tools are used to explain the characteristics of group
of people. This tool helps to get the summarized information of sample units.
Presentation of this data is shown in tables and necessary charts and diagrams wherever
appropriate. Data analysis is done for the systematic, objective and quantitative
description of the content of data collected through questionnaire in a written form. The
collection of information related to problems and advantaged faced by the people with
disabilities from questionnaire source is measured and analyzed. After analyzing and
interpreting the data and information, conclusions are drawn and recommendations are
made. In this research, excel, bar graph, pie-chart is used.
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Age of the Respondents.

Table 4.1: Age

Age level No. of People Percentage

14-28 34 68%
28-42 10 20%
42-55 6 12%
Total 50 100%
Source: Field Survey 2018

14-28
10
28-42
42-55
34

Source: Field Survey 2018

Figure 4.1: Age

Table 4.1 and Figure 4.1 shows that out of 50 people there are 34 people who range
between 14-28 years old. Similarly, there are 10 people who range between 28-42
years old and there are 6 people who range between 42-55years old.
4.2 Gender
Table 4.2 Gender

Gender No. of People Percentage

Male 30 60%
Female 20 40%
Total 50 100%
Source: Field Survey 2018

20

Male
Female
30

Source: Field Survey 2018

Figure 4.2: Gender
Table 4.2 and Figure 4.2 shows that out of 50 people who respond, 30 are male and 20
are female. From the figure it can be concluded that there are more male than female
who respond in this survey.
4.3 Heard about online shopping
Table 4.3: Heard About

Heard about No. of People Percentage

Yes 50 100%
No 0
Total 50 100%
Source: Field Survey 2018

60

50

40

30

20

10

0
Yes No

Source: Field Survey 2018

Figure 4.3: Heard About
Table 4.3 and Figure 4.3 shows the data of people who have heard about online
shopping and who have not heard about it. Among 50 respondents 50 people are already
known to online shopping i.e. they have heard about it.

4.4 Use online shopping services

Table 4.4: Use

Use No. of People Percentage

Yes 30 60%
No 20 40%
Total 50 100%
Source: Field Survey 2018
 35

30

25

20

15

10

0
Yes No

Source: Field Survey 2018

Figure 4.4: Use
Table 4.4 and Figure 4.4 shows the data of people who use online services and those
who don’t use. Among 50 respondents 30 people use online shopping services and 20
people don’t use online shopping services.

4.5 Often buy products

Table 4.5: Often Buy Products

Often Buy Products No. of People Percentage

Extremely Often 10 20%
Quite Often 35 70%
Not at all 5 10%
Total 50 100%
Source: Field Survey 2018
 10% 20%

Extremely Often
quite often
Not at all

70%

Source: Field Survey 2018

Figure 4.5: Often Buy Product
Table 4.5 and Figure 4.5 shows the data of people how often do they buy products
online. From 50 respondents it can be concluded that 20% buy extremely often, whereas
70% buy quite often and 10% do not buy at all.

4.6 Types of Product

Table 4.6: Types of Product

Types of product No. of people Percentage

Clothes 22 44%
Electronics 12 24%
Gadgets 16 32%
Total 50 100%
Source: Field Survey 2018
 25

20

15

10

0
Clothes Electronics Gadgets

Source: Field Survey 2018

Figure 4.6: Types of Product
Table 4.6 and Figure 4.6 shows the number of people who buy online products
mostly. From the bar we can see that among 50 respondents, 22 people buy clothes,
12 people buy electronics and 16 people buy gadgets mostly.

4.7 Spend
Table 4.7: Spend

Spend No. of people Percentage

Below 200 13 26%
200-500 9 18%
500-1000 22 44%
1000 or above 6 12%
Total 50 100%
Source: Field Survey 2018
 25

20

15

10

0
Below 200 200-500 500-1000 1000 or above

Source: Field Survey 2018

Figure 4.7: Spend
Table 4.7 and Figure 4.7 shows the number of people who usually spend on online
shopping per month. From the bar graph we came to know that 13 people spend below
Rs. 200, 9 people spend Rs. 200-500, 22 people spend Rs. 500-1000 and 6 people spend
Rs. 1000 or above.

4.8 Comfortable
Table 4.8: Comfortable

Comfortable No. of people Percentage

Extremely Comfortable 4 8%
Quite Comfortable 30 60%
Not at all Comfortable 6 12%
Total 50 100%
Source: Field Survey 2018
 15% 10%

Extremely Comfortable
Quite Comfortable
Not At All Comfortable

75%

Source: Field Survey 2018

Figure 4.8: Comfortable
The above pie chart shows that the percentage of people who are comfortable buying
products online. From the chart we came to know that 10% of the people are extremely
comfortable, whereas 75% are quite comfortable and 15% of the people are not
comfortable at all.

4.9 Satisfied
Table 4.9: Satisfied

Satisfied No. of people Percentage

Yes 32 64%
NO 18 36%
Total 50 100%
Source: Field Survey 2018
 18

Yes
No

32

Source: Field Survey 2018

Figure 4.9: Satisfied
Table 4.9 and Figure 4.9 shows the number of people who are satisfied with the online
shopping services or not. From the graph we came to know that among 50 respondents
32 people are satisfied whereas 18 people are not satisfied with.

4.10 Satisfied with quality

Table 4.10: Satisfied with Quality
Satisfied with quality No. of people Percentage
Yes 32 64%
No 18 36%
Total 50 100%
Source: Field Survey 2018
 35

30

25

20

15

10

0
Yes No

Source: Field Survey 2018

Figure 4.10: Satisfied with Quality
Table 4.10 and Figure 4.10 shows the number of people who are satisfied with the
quality of goods and services or not. From the bar graph it can be concluded that 32
people are satisfied with the quality whereas 18 people are not satisfied with the quality
of goods and services.

4.11 Affect lives

Table 4.11: Affect Lives

Affect lives No. of people Percentage

Yes 19 38%
No 31 62%
Total 50 100%
Source: Field Survey 2018
 38%
Yes
No
62%

Source: Field Survey 2018

Figure 4.11: Affect Lives
Table 4.11 and Figure 4.11 shows the percentage of people whether online shopping
affect their lives such as work and study or not. From the pie chart it can be concluded
that 38% people said that online shopping has affect their lives and 62% people said
that online shopping has not affect their lives.

4.12 Problem Face

Table 4.12: Problem Face

Problem Face No. of people Percentage

Delivery problem 8 16%
Bad quality 12 24%
Poor customer service 7 14%
Communication problem 5 10%
Other problem 18 36%
Total 50 100%
Source: Field Survey 2018
 20

18

16

14

12

10

0
Delivery Bad quality Poor customer Communication Other
problem service problem

Source: Field Survey 2018

Figure 4.12: Problem Face
Table 4.12 and Figure 4.12 shows the problem face by the people during online
shopping. From the graph it can be concluded that 8 people have face the delivery
problem, 12 people have the problem of bad quality, 7 people have faced the problem
of poor customer service whereas 5 people have faced the communication problem and
18 people have face other problem.

4.13 Website Prefer

Table 4.13: Website Prefer

Website prefer No. of people Percentage

Daraz 16 32%
Sasto deal 22 44%
Muncha 8 16%
Others 4 8%
Total 50 100%
Source: Field Survey 2018
 8%

16% 32%
Daraz
Sasto deal
Muncha
Others

44%

Source: Field Survey 2018

Figure 4.13: Website Prefer
Table 4.13 and Figure 4.13 shows the percentage of people and the website they prefer
for online shopping. From the pie chart it can be concluded that 32% people prefer
Daraz, 44% people prefer Sasto deal, 16% people prefer Muncha and 8% people prefer
another website.

4.14 On holiday
Table 4.14: On Holiday

On holiday NO. of people Percentage

Yes 46 92%
No 4 8%
Total 50 100%
Source: Field Survey 2018
 50

45

40

35

30

25

20

15

10

0
Yes No

Source: Field Survey 2018

Figure 4.14: On Holiday
Table 4.14 and Figure 4.14 shows the number of people can they do online shopping
on holiday. From the graph it can be concluded that 46 people said that they can do
online shopping on holiday but only 4 people said that they cannot do online shopping
on holiday.

4.15 Satisfied with price

Table 4.15: Satisfied with Price

Satisfied with price No. of people Percentage

Yes 40 80%
No 20 20%
Total 50 100%
Source: Field Survey 2018
 20%

Yes
No
80%

Source: Field Survey 2018

Figure 4.15: Satisfied with Price
Table 4.15 and Figure 4.15 shows the percentage of people who are satisfied with the
price of the products they buy. From the chart it can be concluded that 80% of the
people are satisfied with the price of the products they buy whereas 20% of the people
are not satisfied with the price of the products they buy.

4.16 Process
Table 4.16: Process

Process No. of people Percentage

Simple 32 64%
Complex 18 36%
Total 50 100%
Source: Field Survey 2018
 35
32

30

25

20 18

15

10

0
Simple Complex

Source: Field Survey 2018

Figure 4.16: Process
Table 4.16 and Figure 4.16 shows the number of people how they feel the online
shopping process. From the graph it can be concluded that 32 people like the process
simple whereas 18 people like the process complex.

4.17 Discount
Table 4.17: Discount

Discount No. of people Percentage

Yes 20 40%
No 30 60%
Total 50 100%
Source: Field Survey 2018s
 40%
Yes
No
60%

Source: Field Survey 2018

Figure 4.17: Discount
Table 4.17 and Figure 4.17 shows the percentage of people who get discount in online
shopping. From the figure it can be concluded that 40% of the people get the discount
whereas 60% of the people do not get the discount in online shopping.

4.18 Improve technology

Table 4.18: Improve Technology

Improve technology No. of people Percentage

Yes 35 70%
No 15 30%
Total 50 100%
Source: Field Survey 2018
 30%

Yes

No
70%

Source: Field Survey 2018

Figure 4.18: Improve Technology
Table 4.18 and Figure 4.18 shows the number of people who said that whether online
shopping help in improving technology or not. From the graph it can be concluded that
35 people said that online shopping help in improving technology whereas 15 people
said that online shopping don’t help in improving technology.

4.19 Develop society

Table 4.19: Develop Society

Develop society No. of people Percentage

Yes 38 76%
No 12 24%
Total 50 100
Source: Field Survey 2018
 24%

Yes
No

76%

Source: Field Survey 2018

Figure 4.19: Develop Society
Table 4.19 and Figure 4.19 shows that the percentage of people who said whether online
shopping play a role in developing society or not. From the chart it can be concluded
that 76% of the people said that online shopping plays a role in developing society
whereas 24% of the people said that online shopping doesn’t play a role in developing
society.

4.20 Save time

Table 4.20: Save Time

Save time No. of people Percentage

Yes 45 90%
No 5 10%
Total 50 100%
Source: Field Survey 2018
 50
45
45

40

35

30

25

20

15

10
5
5

0
Yes No

Source: Field Survey 2018

Figure 4.20
Table 4.20 and Figure 4.20 shows the number of people who said whether online
shopping has saved their time or not. From the graph it can be concluded that 45 people
said that online shopping has saved their time because they don’t have to go out for
shopping and spend the time rather, they can stay in their home and order their products.
But 5 people said that online shopping do not save their time.

4.21 Payment method

Table 4.21: Payment Method

Payment method No. of people Percentage

Cash 37 74%
Credit 13 26%
Total 50 100%
Source: Field Survey 2018
 26%

Cash
Credit

74%

Source: Field Survey 2018

Figure 4.21: Payment Method
Table 4.21 and Figure 4.21 shows the percentage of the people how they pay the price
of the products. From the chart it can be concluded that 74% of the people like to do
the payment by cash. But 26% of the people like to do the payment by credit.

4.22 Like web page

Table 4.22: Like Webpage

Like website page No. of people Percentage

Yes 42 84%
No 8 16%
Total 50 100%
Source: Field Survey 2018
 45
42

40

35

30

25

20

15

10 8

0
Yes No

Source: Field Survey 2018

Figure 4.22: Like Webpage
Table 4.22 and Figure 4.22 shows the number of people whether they like the website
of online shopping or not. From the graph it can be concluded that 42 people like the
website of the online shopping. They also said that it is user friendly. But 8 people don’t
like the website of the online shopping.
 FINDINGS
1. Age ranging from 14-28 buy products from online the most than any other age
level.
2. People use online shopping quite often
3. Mostly people buy clothes followed by gadgets.
4. People spend 500-1000 mostly to buy products
5. People use online shopping because it saves time
6. Income level is the major factor that determine the preference of youth towards
online shopping
7. People find the products of poor or bad quality which can be the drawback of
online shopping.
 CHAPTER FIVE

CONCLUSIONS

The research methodology subject of BBA has its own significance which provides
guidance to the students while doing research in the area of study. The research gives
students exposure to the theoretical knowledge and explore the practicability of
knowledge learnt.
The goal of the research is to know the preferences of youth on online shopping. This
research is done to know of what age people are using online shopping and how online
shopping has bring change in their life. This research also collects the data about the
taste and preferences of youth towards online shopping.
In this research it was found that age ranging from 14-55 use online shopping. Among
them age ranging from 14-28 use online shopping the most. It is also known that there
are many factors that determine the use of online shopping. These factors can be income
level, quality of products, delivery time and so on. There are many pitfalls in this
research. It is recommended that further study need to be done with large that can
represent every online shopping consumers.
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 APPENDICES
1. What is your age?
2. What is your gender?
3. Have you heard about online shopping?
4. Do you use online shopping services?
5. How often do you buy products online?
6. What types of product do you buy online mostly?
7. How much do you usually spend on online shopping per month?
8. How comfortable are you buying products online?
9. Are you satisfied with the online shopping services?
10. Are you satisfied with the quality of goods and services?
11. Does online shopping affect your lives such as work and study?
12. What problem do you face during online shopping?
13. Which website you prefer for online shopping?
14. Can you do online shopping on holiday?
15. Are you satisfied with the price of the products you buy?
16. How you feel the online shopping process?
17. Do you get discount in online shopping?
18. Do online shopping help in improving technology?
19. Does online shopping play a role in developing society?
20. Do you think online shopping saves time?
21. How you pay the price of the products?
22. Do you like the website of online shopping?