SUMMER INTERNSHIP REPORT ON

A STUDY ON

“IMPACT OF ECOMMERCE WITH REFERENCE TO STUDY ON WOMEN

PURCHASING ONLINE BEHAVIOUR (FLIPKART)”

Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD,

KUKATPALLY, HYDERABAD – 500 085
in partial fulfilment of the requirements for
the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
TAHENIYATH AYESHA
Roll.no : 19L51E0034
Under the Guidance of
MRS. ZAINABUNNISSA NAHEED
(Assistant professor)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

SHADAN WOMEN’S COLLEGE OF ENGINEERING & TECHNOLOGY
KHAIRATABAD, HYDERABAD – 500 004.
December 2020
1
 CERTIFICATE
This is to certify that the Summer Internship titled “IMPACT OF ECOMMERCE
WITH REFERENCE TO STUDY ON WOMEN PURCHASING ONLINE BEHAVIOUR
(FLIPKART) is being submitted by “TAHENIYATH AYESHA ROLL NO:-,

19L51E0034 in partial fulfilment of the requirements for the award of the degree of Master of
Business Administration to Jawaharlal Nehru Technological University Hyderabad,
Hyderabad is a record of bonafide work carried out by her under my guidance and supervision
during the academic year 2019 - 2020.

The results presented in this summer internship have been verified and are found to be satisfactory.
The results embodied in this summer internship have not been submitted for the award of any other
degree or diploma to this/any other University.

Mrs. SWATHI G Dr. S. SUSI

Assistant Professor HEAD OF THE DEPARTMENT
Department of MBA Department of MBA
Shadan Women’s College of Engineering Shadan Women’s College of Engineering
and Technology, Khairatabad – 500 004. and Technology, Khairatabad – 500 004.

2
 DECLARATION

I hereby declare that the Summer Internship titled “IMPACT OF ECOMMERCE

WITH REFERENCE TO STUDY ON WOMEN PURCHASING ONLINE BEHAVIOUR
(FLIPKART)” is a record of bonafide work done by me in the Department of Master of Business
Administration, Shadan Women’s College of Engineering and Technology, Khairatabad,
submitted to the Jawaharlal Nehru Technological University Hyderabad, Hyderabad in partial
fulfilment of the requirements for the award of the degree of Master of Business Administration.

The results embodied in this Summer Internship have not been submitted for the award of any other
degree or diploma to this/any other University.

TAHENIYATH AYESHA
Roll.no : 19L51E0034

3
 ACKNOWLEDGEMENT
The satisfaction and euphoria of successful completion of any work could be incomplete
without mentioning the persons who made it possible, whose constant guidance and encouragement
crown our efforts with success.

I take this opportunity to express my grateful acknowledgement to The Management,

Shadan Women’s College of Engineering and Technology, Khairatabad for their kind
encouragement and granting permission to do this summer internship.

I also express my thanks to Dr. Palani, Principal, Shadan Women’s College of

Engineering and Technology, Khairatabad for providing infrastructure and facilities.

I express my sincere gratitude to Dr.S. Susi, Head of the Department of MBA, for her
extended help, concern and persistent encouragement and support.

I wish to express my heartfelt thanks and sincere acknowledgement to my guide MRS.

ZAINABUNNISSA NAHEED (Assistant professor)
for his/her concern and help to direct me for every move in this summer internship.
I acknowledge with grateful thanks to the authors of the references and other literatures
referred in this summer internship.

I finally thank my parent, friends and relatives who render their help directly or indirectly
for the completion of this summer internship.

TAHENIYATH AYESHA
ROLL.NO: 19L51E0034

4
 ABSTRACT

Woman online shopping is under researched. The author found very few published
contents on the topic. This impelled the researcher to undergo a brief review of existing,
although comparatively small, literature. The literature suggests that women have lesser trust
in online shopping as compared to their male counterparts. The strata of women shoppers
can be divided in three distinct group’s viz., above 55 years of age, 36-55 years and 15-35
years. The growth in adaptation in online shopping has been observed in the age group of 15-
35 years. The increased number of working lady in this group is one among the several
reasons. Different types of conceptual information presented in the study are the result of
observation, in depth reading, and rational judgement of the author.

5
 INDEX
CHAPTERS CONTENTS
PAGE: NO

CHAPTER-1

1
 INTRODUCTION
 NEED FOR THE STUDY
 SCOPE OF THE STUDY
 OBJECTIVE OF THE STUDY
 METHODOLOGY
 LIMITATIONS

2 REVIEW OF LITERATURE

3
Company profile

DATA ANALYSIS AND INTERPRETATION

4

FINDINGS
5 SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY

BIBLIOGRAPHY

6
 CHAPTER-1

INTRODUCTION

7
 INTRODUCTION

In last 3 decades the usage of computers had boost-up all over the world. The invention of
connecting computers worldwide brought revolutionary growth in the world of computers. This
concept of connecting computers across the world is known as Internet. Along with development of
World Wide Web (www), companies have seen an opportunity to start their business online. That is
known as Electronic commerce. E-commerce is defined as; “Maintaining business relationships and
selling information, services and commodities by means of computer telecommunications
networks.” (Encyclopaedia of Britannica, 2008).

In India the e-commerce is growing rapidly. Even though the online sales makes-up a small portion
of total sales in our country, but still it is an important area of research because of rapid growth
rate. Online marketing is growing into an important medium for increasing sales volume that’s why
it is becoming significant for business firms to target their online customers. To cater the market
demand the firms has to understand the reasons behind online shopping by the consumers, than
only marketers will be able to design effective strategy. Indian online market had a growth of 88%
in 2013, apart from the last few year’s recessions in the economy, according to a survey by industry
body ASSOCHAM.

The availability of more number of payment options and rising the use of the internet pushed the e-
commerce industry in recent years. There are number of online shopping firms arouse these days to
grab this opportunity. According to ASSOCHAM Secretary General D S Rawat the e-commerce
industry was boosted up because of increasing Internet penetration and availability of more
payment options. As per D S Rawat apart from electronics gadgets, home and kitchen appliances,
apparel and jewellery, books, lifestyle accessories like watches, beauty products and perfumes,
baby products etc. also shown significant upward movement during last year. Indian online market
which was at $2.5 billion in 2009, has achieved $8.5 billion in 2012 and $16 billion in 2013 with a
growth rate of

88%. This has an estimation that Indian e-commerce market would be at $56 billion by 2023. The
Internet shopping had shown a fast growth rate because of attractive discount offerings, rising fuel
prices and availability of larger range of products online. Age wise 35% of online consumers were
found between 18 to 25 years, 55% between 26 to 35 years, 8% between 36 to 45 years and only

8
2% found in age group of 45 to 60 years. Along with this, 65% of online buyers found male and
35% were female.

As e-commerce is now in its beginning stage most of online seller firms are offering daily deals and
discounts to attract more customers. The largely online sold products are found in fashion and
electronics like jewellery, cosmetics, mobile phones, I-pads, accessories, MP3 players, digital
cameras etc. In our country 150 million people are connected online up to last year and this number
is continuously increasing at a fast rate. Among these people some of them are hesitant to purchase
online because of some reasons like preference to research products and services online, higher
delivery charges, fear of misuse of personal financial information and fear of delivery of products
in good condition, and for few do not have a credit or debit card. E-commerce’s Growth dependent
on the availability and the popularity of the Internet. Usually women are more reluctant than men
with regard to online shopping and younger people prefer more online shopping than older. So,
older women were found least possible customer for online purchase. Researchers are to find the
aspects of online shopping behaviours of women and how it can be improved. The boost of e-
commerce has impact on various business firms to start their selling online. It is an effective
strategy to grip younger target group to start website for e-commerce as they are regular users of
internet. But for targeting older group the firms have to work harder in studying the purchasing
behaviour, their need and wants and their fears about online shopping. This study focuses on the
internet shopping behaviour of Indian women, along with factors that would impact an increase of
their online shopping.

9
 NEED FOR THE STUDY
The main purpose of this research is to plot the present behaviour of women
regarding online shopping. In addition to this, the study intend to find out and analysing aspects
that might help the marketers and business firms in encouraging the target group to increase online
shopping as means of purchasing.

Finally, these six factors must be regarded as a dynamic and evolving subject rather than a static
one. The developments in the virtual marketplace, changing customer techno-graphics and
technological innovation will present e-marketers with new tools and methods for enhancing their
customers’ online experience. In that respect this study depicts the current picture of the research
done thus far, a good starting point for further research in the direction of developing a
comprehensive theory on the online buying behaviour. The same research can be repeated across
different cities in India to understand the differences and similarities in online shopper buying
behaviour.

10
 OBJECTIVE OF THE STUDY

1. To find out the level of usages of computer and internet by the women
concerning online purchases.
2. To find out the most important hurdles professed by women with regard
to Internet shopping.
3. To find out the significant advantages of internet purchasing to the
women customers and their reasons.
4. To find out the aspects those could be helpful in increasing the
Internet shopping.
5. The main objective of study is to focus on trend of women online
shopping in India.
6. To study the demographic characteristics of female online shoppers.
7. To identify the factors affecting online shopping preferences of female
consumers.

11
 SCOPE OF THE STUDY

The factors influencing female buying behavior framework can be useful to both
practitioners and academics. It could help online marketers and e-Commerce firms to identify
issues requiring special attention to the factors impacting their online business or evaluating their
existing online venture. For academic researchers this classification could be a basis for the
formulation of new hypotheses and research questions leading to better mapping of the online

Female consumers This research can be used by online retailers to shape their marketing strategy.

12
 METHODOLOGY

The research is descriptive and exploratory in nature. It is aimed at understanding the

factors affecting female online buying behavior. Hyderabad , an economically, socially and
technologically prosperous town in the newly formed State of Andhra Pradesh in India, provided
an appropriate setting for making this study.
The dependent variable is female consumers’ attitude towards online shopping.
Demographic factors, convenience, time effectiveness, website design/features, security and
social media influence are the independent variables. The research model for this study is
presented in Figure 2. The constructs in this model are explained below:

Source: Authors

13
Technological Factors

For online shopping, website design is an important influencing factor. Website design,
reliability and fulfilment, customer service, and security and privacy are the most important
influencing features on the perception of the consumers of online buying (Shergill & Chen,
2005).
Risk Factors
A dominant factor that affects consumers to shop online is security of the transaction.
Many Internet users avoid online shopping due to credit card fraud, privacy, non-delivery risk,
post-purchase service, etc.
Demographic Factors
Demographics factors such as age, family status, women’s occupation, individual and
family income, etc. affect pricing, packaging, promotion and place decisions of online
consumers.
Social Media
Consumers are increasingly resorting to reviews and feedback on social media sites
before buying a product to make sure that the product is the best in its class, and offers good
value for money.

Convenience

Browsing or searching product catalogue online is easier than shopping in traditional

retail format. Thus convenience is a prime motivation for consumers to shop online.

The sampling design is given below:

Population

Online female consumers of different age groups in Vijayawada town.

Sampling Frame

14
 The female consumers buying online. This includes trial, occasional, frequent and regular
consumers.
Sampling Unit
Individual.

Sample Size

For a study of this nature the exact population is not known. Hence, an estimated
population of 4,000 and above is considered in determining the sample size of 316 respondents.
Sampling Method
Simple random sampling method.
Research Instrument
A questionnaire, consisting of two parts viz., demographic factors such as age, gender,
education, income (Part A) and items that influence consumers to shop online (Part B) was
designed. Questions were in the form of scaled-response as “scaling permits measurement of the
intensity of respondents’ answers.” A five-point Likert scale was used.
Data Collection

Primary data from respondents with online shopping experience was collected during
2015 by distributing copies of self-administered questionnaires. Secondary data was collected
from published sources such as national and international journals and reports.

ANALYSIS

Data was analysed using IBM SPSS 20. The demographic data such as age, gender,
designation, educational qualifications, and work experience were analysed for understanding
respondent’s profile. Factor analysis was used for analysing data on items that influence
consumers to shop online.

15
 LIMITATIONS

 It was difficult to find respondents as they busy in their schedule and collection data was
very difficult.
 Therefore the study has to be carried out based on the availability of respondents.
 The sample size does not give clear representation of the total universe.
 Some of respondents were not ready to fill the questionnaire.
 Some of respondents were not ready to come out openly.

16
 CHAPTER-2

LITERATURE REVIEW:

17
 LITERATURE REVIEW

Internet is redefining the shopping behaviour of people across the globe. It has become a
hotbed of advertising, shopping and commercial activity (Rowley, 1998). People’s daily life is
influenced by internet more so as compared to past (Hsieh et al., 2013). Consumers are getting used
to virtual experience from physical experience, adapting to online purchases. According to Lee and
Zhang (2002) after e-mail usage, instant messaging and web browsing, online shopping is the third
most popular internet activity. The process a customer takes to purchase a service or

product over the internet is referred as online shopping (Jusoh & Ling, 2012) where a consumer
buys from an online store from home at his/her convenience. Online shopping is growing in India
(Suresh & Shashikala, 2011). According to the reports of IAMAI-KPMG1, the total number of
Internet users in India (out of a total population of 1.25 billion) would reach 600 million by 2020.
According to PricewaterhouseCoopers2 report, e-commerce sector in India has grown by 34%
(CAGR) since 2009 and was expected to be in the range of USD 60-70 billion by 2019.

Extensive research on attracting and retaining consumers from a consumer-oriented or a

technology-oriented view was triggered by the rapid growth of online shopping (Jarvenpaa & Todd,
1996). Examining consumers’ prominent beliefs about online shopping, that may influence
purchase channel selection is the focus of consumer-oriented view. Predicting consumer acceptance
of online shopping by analysing technical specifications of an online store is the scope of
technology-oriented view. Internet is being used as a channel of information and commerce in the
rapidly growing online businesses.

Researchers have attempted to identify factors affecting Indian consumers’ online purchase
behaviour from various perspectives (Bhatnagar & Ghose 2004; Jarvenpaa & Todd, 1996;
Vijaysarathy & Jones, 2000); purchase behaviour from consumer demographics (O'Keefe et al.,
2000; Chau et al., 2002; Brown, Pope & Voges, 2003; Li, Kuo & Russell, 1999; Korgaonkar,
Silverblatt & Becerra, 2004; Park, Lee & Ahn, 2004); cognitive and psychological characteristics
(Huang, Schrank & Dubinsky, 2004; Novak, Hoffman & Yung, 2000; Wolfinbarger & Gilly, 2001;
Xia, 2002); risk perceptions and benefits of online shopping (Jarvenpaa & Todd, 1996; Liang &
Jin-Shiang, 1998; Jarvenpaa, Tractinsky & Vitale, 1999; Jarvenpaa & Tractinsky, 1999; Solomon,
18
1999; Bhatnagar & Ghose 2004a; Liao & Cheung, 2001; Featherman & Pavlou, 2003; Joines,
Scherer & Scheufele, 2003; Featherman & Pavlou, 2003; Bhatnagar & Ghose 2004a; Bhatnagar &
Ghose, 2004b; Garbarino & Strabilevitz, 2004; Huang, Schrank & Dubinsky, 2004; Kolsaker, Lee-
Kelley & Choy, 2004; Park, Lee & Ahn, 2004; Pires, Stanton & Eckford, 2004); shopping
motivation (Novak, Hoffman & Yung, 2000; Wolfinbarger & Gilly, 2001; Johnson et al., 2004) and
orientation for shopping (Korgaonkar & Wolin, 1999; Donthu & Garcia, 1999; Li, Kuo & Russell,
1999; Swaminathan, Lepkowska- White & Rao, 1999).

Several factors affect online buying decisions of consumers. Consumers’ attitude and shopping
intentions on the Internet are guided by a wide variety of situational factors, like geographical
distance, lack of mobility, time pressure, attractiveness of alternatives and need for special items.
Important attributes of online shopping are convenience and accessibility to most consumers
(Wolfinbarger & Gilly, 2001). Online shopping decisions are also influenced by the type of product
or service. Absence of aid and the lack of physical contact in shopping on the Internet is one factor
that influences this suitability. The need to feel, touch, smell, or try the product, which is not
possible when shopping online is another factor. An individual’s response to a task involving
judgment is based on three aspects viz., individual’s past experiences, the context or background
and the stimulus (Helson, 1964).

Internet shopping history of the consumer influences intention to shop online. Trust and risk are the
major factors that influence customer participation in web-based commerce, which

have the potential to increase the frequency of online shopping activity (Al-Mowalad, 2013). In an
Internet environment, business is being transformed to a social relationship from a transactional
relationship. The advent of social media has opened a new avenue of marketing for corporations.
As consumers are increasingly referring to social media sites before making a purchase, the word-
on-web replaced the word-of-mouth publicity, greatly influencing buying behaviour. In online
shopping, trust is interwoven with risk (McAllister, 1995). Trust reduces the consumer’s perception
of risk associated with opportunistic behaviour by the seller (Ganesan, 1994). The reason for
consumers not purchasing from Internet shops is reported to be lack of trust.

19
Under conditions of uncertainty and risk, trust is an important factor in traditional theories. Mayer,
Davis & Schoorman, (1995) developed a model combining traditional marketing philosophy on
consumer motivation to buy and the trust model, where propensity for trust, a personality trait
possessed by buyers is an important antecedent. Buyer with a high propensity for trust is likely to
be a potential customer than a buyer with a lower propensity. Ability, benevolence and integrity are
the main elements of trustworthiness. According to Gefen & Straub (2002) trust is very important
in e-commerce and the lack of it is the major factor for consumers to avoid online purchases (Gefen
& Straub, 2002; Emurian & Wang, 2005). Humans must decrease their social uncertainty, that is, to
try to control their environment and behaviour of other people. This is usually done by rules and
customs. As Internet is a new sales channel, there are few established customs and rules, which is
why trust is so important in e-commerce (Gefen & Straub, 2002).

Varma and Aggarwal (2014) in a study on Mumbai’s western suburbs homemakers found that
online shopping for them is both utilitarian and hedonic experience and is a leisure activity directed
to reduce their boredom. According to Stone (1954), shoppers are classified as the economic,
personalizing, ethical and apathetic shoppers. Consumers are motivated by purchase needs or
experiential needs or a combination of both when they shop (Westbrook & Black, 1985).

Studies on Indian consumer-buying behaviour are scarce, and more so in case of the role of gender.
Shopping dynamics in India are different from that of the west, where shopping is a family activity
with nearly 70% of shoppers going to stores always with the family, with 74% of them seeing
shopping as the best way to spend time with the family. The family-oriented shopping as a
preference was found to be consistent across regions and cities, income segments and age groups in
India (Sheth &Vittal, 2007). Women do most of the shopping in the traditional world, but it is the
reverse in online shopping (Dennis et al., 2002; Ballard & Mander, 2006; OFT, 2007). Why is this
phenomenon? Is this because online shopping lacks the social experience of brick and mortar
shopping? Research-based evidence suggests that females and in particular, young adults, regard
the social aspect of shopping as an important element (Dholakia, 1999). Internet retailers (e-
retailers) face difficulty in satisfying customers’ higher-level needs for personal interaction. Yet for
young females, the Internet is the new social space (Social Networks, 2007). The researchers

20
suggest that there is a major opportunity waiting for e-retailers to combine e-shopping with social
networking.

The focus of openness to change is on diversity and thrill. Interestingly, internet shoppers are found
to be more convenience seeking, impulsive, innovative and less risk averse than non-

Internet shoppers (Donthu & Garcia, 1999). Online grocery shopping also has similar pattern.
Hansen (2005) showed that non-online grocery shoppers regard online grocery shopping as less
compatible with their daily lives as compared with adopters of online grocery shopping.

The primary reason for online grocery shopping is convenience and the time saved (Morganosky &
Cude, 2000). Ramus and Nielsen (2005) found that consumers prefer online shopping as it allows
them to shop without leaving home and in a less stressful way than going to the grocery store
during rush hours. Hansen (2005) detected that consumers are concerned with the missing social
interaction when shopping online. Self-transcendence emphasizes equality and maintaining good
social relations, whereas self-enhancement focuses on wealth and power and getting things done
effectively. Shang et al. (2005) suggest that online shopping is not much of a goal-oriented activity
rather it is a result from cognitive absorption experiences from the Internet, a personality
characteristic that influences perception and especially perceptual differentiation (Antonides &
Van-Raaij, 1998).

While online shopping has several advantages over the traditional method, few pitfalls are there
pertaining to Internet buying. In virtual shops, the consumer is not able to see and check the
product quality, as would be the case in physical store. In fact, for the consumer, buying products
on internet appears to be more complex decision as it is more difficult to form an impression as to
whether the products on offer are appropriate (Raijas, 2002). The second area of complexity
concerns the mode of payment for the ordered products. Most of the consumers who are used to
pay by cash at a checkout may find the electronic transfer and security checks unfamiliar and more
complex.

Mishra (2007) examined the demographic characteristics of online consumers and their attitude
towards online shopping behaviour for clothing. Perceived usefulness reinforces an online

21
shopper’s intention to continue using a website, such that when a person accepts a new information
system, one may be more than willing to alter practices and expand time and effort to use it (Gefen
& & Straub, 2002).

The changing attitudes can be difficult as they fit into a pattern. To change one’s attitude requires
radical adjustments to be made to others (Grant & Graeme, 2005). Forsythe & Shi (2003)
mentioned Internet users can be categorized in to two viz., Internet shoppers and Internet browsers.
Internet shoppers are the people who shop online, whereas Internet browsers are the people who
just browse the Internet for other than shopping purposes.

According to Grant & Graeme (2005), purchasing behaviour is influenced by many factors,
including social (culture, sub-culture, reference groups, social class and family), political,
technological, economic and personal factors (self-image, motivation, personality, learning,
perception, beliefs and attitudes). Improvements in technological infrastructure will make
consumers more comfortable shopping on-line, and vendors will exploit advantage of the internet’s
strengths more effectively to market and sell goods and services (Brown, Durrett & Wetherbe,
2004). For instance, British consumers shopping has drastically changed due to the rapid expansion
of the Internet since the 1990s (Hengst, 2001), where the business sector accounts for most of the
value of Internet-related business (Monsuwe, Dellart & De-Ruyter, 2004). Rapid growth in the
retail sector is pushing retailers to tap into the virtual business environment. As Schlosser, Shavitt
& Kanfer (1999) observed, a common strategy used by marketers and fashion retailers is adding
Internet advertising to the promotional mix. Businesses

are conducted both through traditional means as well as online. Technological advancements have
led to the growth in technology-based self-service and thereby impacted the way business is
transacted (Dabholkar, 1994; Moncrief & Cravens, 1999). This has provided opportunities to fulfil
several consumer needs such as detailed product information of different brands, good bargains,
convenience of shopping at home and saving of time and effort-all that leading to shopping more
effectively and efficiently than conventional shopping in the highly competitive environment (Chen
& Leteney, 2000).

22
Generally positive attitude towards shopping online for apparels was shown by women (Hirst &
Omar, 2007). Although women are aware of some of the discouraging features of online shopping
for apparels, these features do not deter them from buying online. The Internet user base is growing
rapidly in India and it is inspiring to see that women user base is also increasing rapidly (Jain,
2014). It is clear that Internet is empowering Indian women with easy access to information and
helping them to make more informed decisions in their day-to-day life. Singh (2016) observed that
mostly youngsters and youth generation (18-25 age group) are very much interested in online
shopping because they know usage of technology.

Attracting, retaining and satisfying female customers’ remains limited, despite the growth in
application of technology-based online retail services. A marketer often encounters the difficulty of
understanding and managing the dynamics of female consumer behaviour. This necessitates a study
of behavioural issues in online retail shopping in establishing an online presence. Although the
number of female consumers buying online products and services continue to increase in India, the
success of some e-retailers and the failure of some, emphasizes the need for analysis in terms of
behavioural issues. Further, what leads a female buyer to shop online also evoked a lot of interest
from both the researchers and marketers. An understanding of the effects of the demographic,
psychographic and situational factors on female consumer’s decision to shop online needs further
exploration. Research pertaining to behavioural issues is fragmented and lacking in online
marketing. This leads us to the theoretical framework for the current study.

Purchase decisions are ultimately guided by consumers' perceptions of the product or

service. Of course, the critical nature of perceptions as they relate to purchase behaviour has been
repeatedly demonstrated in advertising and marketing research. Negative perceptions of the
product, service, brand, or company almost always translate to a lost sale or, at a minimum,
expressed lower intentions to purchase the advertised product or service. If the goal is to increase
online spending among consumers, particularly female consumers, then consumers' perceptions of
online shopping are ultimately matters the most. Presumably, the more positive consumers
perceive the online buying experience the more likely they will make online purchases. The
primary construct that we believe will have a bearing on perceptual differences between male and

23
female internet shoppers is emotion. Related to emotion are two additional constructs, trust and
convenience. (Robertson , Zielinski and Ward, 1984)

Electronic commerce is the application of computer technology to the automation of business

transactions and workflows. It provides the ability to buy and sell products and information on
the Internet and to use other online services (Kalakota and Whinston, 1997). In order to shop
online, consumers need to know how to use computers and how to surf the Net, among

other things. Gender differences in online shopping could be due to preferences for shopping styles
or attitudes toward computers and the Internet. It has been documented that Internet use is more
strongly affected by attitudes toward computers than toward the Internet (Yang and Lester D.
(2003a)) and so it may be that the gender difference in Internet use will be reflected in the use of
computers.

In the population of internet, some surveys indicated that male internet users outnumbered female
counterparts. Internet used to be regarded as a masculine domain. Nevertheless, recent surveys
point out that the gender gap has been disappearing. In addition, the numbers of male and female
internet users are equal (Pew Internet and American Life(2003) The ever-shifting Internet
population: a new look at Internet access and the digital divide, 2003). It is noted that though young
women and men use the internet equally often, they use it differently, and this may influence the
motivations of buying online (Jackson, 2001). Therefore, it is interesting to further discuss sex
differences in online consumption. Early researchers tended to explore demographic profiles of
internet buyers and functional advantages of online shopping, few stressed gender differences in
online shopping behaviour. In fact, the study of gender differences has been a fertile area in
marketing research, but it seems that there are few studies that explore gender differences in
online buying. (Huang Jen-Hung and Yang Yi- Chun, 2010).

It has been documented that, from childhood to adulthood, males are more likely than females to
use computers and to have favourable attitudes toward computers. Research has found that boys
and men have more computer experience, use more computer applications, and use the computer
voluntarily more than do girls and women (Lockheed and Wilder, 1985) (Modianos and
Hartman, 1990) (Morahan - martin et al., 1998). The gender difference in Internet use varies from
24
country to country. Besides the possibility that attitudes toward the Internet could be carried over
from those toward computers, explanations for the general male dominance in Internet use
include the ‘maleness’ of Internet technology and the fact that communication on the Internet is
perceived to be hostile by women . (Morahan - Martin, 1998)

The maleness of technology is one of the causes of women’s discomfort with technology.
Technology has features that are associated with masculinity: it is ‘powerful, remote,
incomprehensible, inhuman, scientific and expensive’ (Faulkner, W. and Arnold, E., 1985). It has
been noted also that ‘Technology has been defined as an activity appropriate for men. As with
science, the very language of technology, its symbolism, is masculine’ (Wajcman, 1991).
Furthermore, the development of the PC follows the stereotypes in technology in that

the early systems were developed by male electronic and computer hobbyists for other male
hobbyists (Hadden, 1999). Even in the market for designing and developing computer-based
systems, women’s participation is relatively low (Webster, 1999). Thus, the resulting
‘masculinisation of computer technology’ (Hesse–Biber, S. and Gilbert, 1994) may lead some to
view the Internet as a highly technical, male domain (Morahan - martin et al., 1998).

There is other research which has examined the role of psychological factors in Internet use.
Researchers have demonstrated the link between personality and Internet use (Morahan - Martin,
1998). There are several personality types that might impact differently on Internet usage. For
example, people who have a high need for closure, that is, ‘a need to have a structured and defined
process of decision making’, will dislike too many hyperlinks (Amichai–Hambuger, 2002) . Gender
differences were found in the use of Internet services associated with the personality traits of
extraversion and neuroticism (Hamburger, Y. A. and Ben–Artzi, 2000). For men, the more
extraverted they are, the greater their use of leisure services, and, the more neurotic they are, the
less their use of information services. For women, the less extraverted they are and the more
neurotic they are, the greater their use of social websites. Specifically with regard to Internet
shopping, research has found that online shoppers tend to seek information from the Internet first
and then make subsequent purchases (Yang and Lester D. (2003a)). Compared with non-shoppers,
Internet shoppers have been characterized as more impulsive and less risk-averse, and they were

25
more likely to seek convenience and variety and less likely to be brand and price conscious than
non-shoppers (Donthu, N. and Garcia, A., 1999). So the shoppers’ personality may play a role in
online shopping. This basic hypothesis has been supported by cross-cultural studies. For instance,
in a data set from twelve countries, website quality and having trust and positive feelings toward
the website were critical in predicting both the shopper’s purchase intentions and the loyalty of
visitors to the site (Lynch, P. D., Kent, R. J. and Srinivasan, S. S., 2001). This finding is consistent
with those of earlier studies in highlighting the importance of psychological factors in determining
shoppers’ behaviour online and off-line, including beliefs, preferences and attitudes as well as
personality traits (Bettman, J. R., Luce, M. F. and Payne, J. W., 1998), psychological motives
(Oliver, R. L., Rust, R. L. and Varki, S., 1997), the role of trust online (Communications, 2000) and
the enjoyment and emotional experience online.

K. and Wolin, L. D. A., 1999).

Since a clear gender gap in Internet use has been documented, it is natural to explore next sex
differences in online shopping, even though occasional researchers claim that there is none. For
instance it is reported that gender and education did not play a role in the Internet

shopping (Donthu, N. and Garcia, A., 1999). Nonetheless, preliminary studies have found gender
differences in online shopping. For example, for women, buying books online was correlated with
anxiety about computers while, for men, buying books online was associated with having
computer/ Internet skills (Yang and Lester D. (2003a)

The role of gender as it relates to e-commerce and offers a conceptual framework that attempts to
explain why women are less satisfied than men with the online shopping experience. Perceived
emotional benefits are one of the primary reasons for women lack in support for e-commerce
activity. Additional concepts include trust (i.e., scepticism) and practicality (i.e., convenience).
These three concepts - emotion, trust, and convenience predicted women's dissatisfaction (and
men's satisfaction) with online shopping, as well as men and women's actual shopping behaviour.
(Harris, Shelly Roogers and Mary Ann, 2003)

SHOPPING ONLINE

26
The two most commonly cited reasons for shopping online (Habul, 2000) have been price and
convenience. The ability to shop online without leaving the home and to have the products and/or
services delivered to the door is of great interest to many shoppers (Beck and Lynch , 2001). The
number of Internet users who are shopping online goods and services is increasingly (Forrester,
2012). In order to be able to identify what factors affect women to shop online, a framework is
needed to structure the complex system of effects of these different factors, and develop as in-
depth understanding of women attitudes toward Internet and their intentions to shop online
(Monsuwe, T.P.Y,Dellart and de Ruyter, 2004).

27
 CHAPTER-3
COMPANY PROFILE

28
 COMPANY PROFILE
Flipkart is an e-commerce company headquartered in Bangalore, Karnataka, India and
registered in Singapore.[7] The company initially focused on book sales before expanding into
other product categories such as consumer electronics, fashion, home essentials, groceries, and
lifestyle products.

The service competes primarily with Amazon's Indian subsidiary and domestic rival Snapdeal As
of March 2017, Flipkart held a 39.5% market share of India's e-commerce industry.[10] Flipkart
has a dominant position in the apparel segment bolstered by its acquisition of Myntra and was
described as being "neck and neck" with Amazon in the sale of electronics and mobile
phones.Flipkart also owns PhonePe, a mobile payments service based on the Unified Payments
Interface.

In August 2018, U.S.-based retail chain Walmart acquired an 81% controlling stake in Flipkart for
US$16 billion, valuing Flipkart at $20 billion.

History

Flipkart logo used from 2007 to 2015

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, two alumni of the
Indian Institute of Technology Delhi and former employees at Amazon.[13][14][15] The company
initially focused on online book sales with country-wide shipping. Flipkart slowly grew in
prominence and was receiving 100 orders per day by 2008.[16] In 2010, Flipkart acquired the
Bangalore-based social book discovery service WeRead from Lulu.com.

Partnerships and acquisitions

Acquisitions

In 2011, Flipkart acquired the digital distribution business Mime360.com[18] and the digital
content library of Bollywood portal Chakpak.[19] Following this acquisition, Flipkart launched
their DRM-free online music store Flyte in 2012. Because of competition from free streaming sites,
the site was unsuccessful and shut down in June 2013.[20][21][22][23]
29
With an eye on the retail segment, Flipkart acquired Letsbuy, an online electronics retailer,[24] in
2012, and Myntra, an online fashion retailer, for $280 million in May 2014.[25] Myntra continues
to operate alongside Flipkart as a standalone subsidiary focusing on separate market segments.[26]
In April 2015, Flipkart acquired Appiterate, a Delhi-based mobile marketing automation firm.
Flipkart stated that it would use Appiterate's technology to enhance its mobile services.[27] In
December 2015, Flipkart purchased a minority stake in the digital mapping provider
MapmyIndia[28] In 2016, Flipkart acquired the online fashion retailer Jabong.com from Rocket
Internet for $70 million and the UPI mobile payments startup PhonePe.[29][30] In January 2017,
Flipkart made a $2 million investment in Tinystep, a parenting information startup.[31] Flipkart
invested $35 million in Arvind Fashions Limited's subsidiary Arvind Youth Brands and picked up a
27% stake. The newly formed subsidiary, Arvind Youth Brands, owns Flying Machine.

Flipkart Wholesale launched a digital platform for kiranas, MSMEs.[33] In October 2020, Flipkart
acquired a 7.8% stake in Aditya Birla Fashion and Retail for $204 million.

Partnerships

In April 2017, eBay announced that it would sell its Indian subsidiary eBay.in to Flipkart and invest
$500 million in the company. While eBay suggested that the partnership would eventually allow
Flipkart to access eBay's network of international vendors, these plans never actually came to
fruition.[36][37] In July 2017, Flipkart made an offer to acquire its main domestic competitor,
Snapdeal, for $700–800 million. It was rejected by the company, which was seeking at least $1
billion.

In August 2019, Flipkart entered into a partnership with Authentic Brands to license and distribute
Nautica in India.

Flipkart invested $4 million in the customer engagement and rewards platform EasyRewardz on
Tuesday Nov 19 2019.

Mobile retailing

30
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive Indian retailer of
its Moto G smartphone.[42] Motorola also partnered with Flipkart on the Moto E — a phone
targeted primarily towards emerging markets such as India. High demand for the phone following
its midnight launch on 14 May caused the Flipkart website to crash.[43] Flipkart subsequently held
exclusive Indian launches for other smartphones, including the Xiaomi Mi3 in July 2014 (whose
initial release of 10,000 devices sold out in around 5 seconds),[44] the Redmi 1S and Redmi Note
in late 2014, and Micromax's Yu Yunique 2 in 2017.[49] Flipkart held a 51% share of all Indian
smartphone shipments in 2017, overtaking Amazon India (33%).[50] In 2017, Flipkart sold 1.3
million phones in 20 hours on 21 September for its Big Billion Days promotion, doubling the
number sold on the first day of the event in 2016.

On 6 October 2014, in honor of the company's anniversary and the Diwali season,[52] Flipkart held
a major sale that it promoted as "Big Billion Day". The event generated a surge of traffic, selling
$100 million worth of goods in 10 hours. The event received criticism via social media over
technical issues the site experienced during the event and stock shortages.

In March 2015, Flipkart blocked access to its website on mobile devices and began requiring that
users download the site's mobile app instead. The following month, Myntra went further and
discontinued its website on all platforms, operating exclusively through its app. The "app-only"
model, however, proved to be unsuccessful for Myntra (reducing sales by 10%), and its main
website was reinstated in February 2016. The experiment with Myntra led to suggestions that
Flipkart itself would perform a similar move, but the company did not follow suit. In November
2015, Flipkart launched a new mobile website branded as "Flipkart Lite" that provides an
experience inspired by Flipkart's app and runs in smartphone web browsers.

In October 2015, Flipkart reprised its Big Billion Day event as a multi-day event exclusive to the
Flipkart app. Flipkart bolstered its supply chain and introduced more fulfillment centers to meet
customer demand.[62] Flipkart achieved a gross merchandise volume of $300 million during the
event, with the largest volumes coming from fashion sales and the largest value coming from
mobiles.[63]

31
Acquisition by Walmart

On 4 May 2018, it was reported that the US retail chain Walmart had won a bidding war with Amazon to
acquire a majority stake in Flipkart for $15 billion.[64][65] On 9 May 2018, Walmart officially announced
its intent to acquire a 77% controlling stake in Flipkart for $16 billion.[66] Following the purchase, Flipkart
co-founder Sachin Bansal left the company. The remaining management team now reports to Marc Lore,
CEO of Walmart eCommerce US.[67] Walmart president Doug McMillon cited the "attractiveness" of the
market, explaining that their purchase "is an opportunity to partner with the company that is leading
transformation of eCommerce in the market".[68][69] Indian traders protested against the deal, considering
the deal a threat to domestic business.

In a filing with the U.S. Securities and Exchange Commission on 11 May 2018, Walmart stated that a
condition of the deal prescribed the possibility that Flipkart's current minority shareholders "may require
Flipkart to effect an initial public offering following the fourth anniversary of the closing of the transactions
at a valuation no less than that paid by Walmart".

Following the announcement of Walmart's deal, eBay announced that it would sell its stake in Flipkart back
to the company for approximately $1.1 billion and relaunch its own Indian operations. The company stated
that "there is the huge growth potential for e-commerce in India and significant opportunity for multiple
players to succeed in India's diverse, domestic market."Softbank Group also sold its entire 20% stake to
Walmart without disclosing terms of the sale.

The acquisition was completed on 18 August 2018. Walmart also provided $2 billion in equity funding to
the company.On 13 November 2018, Flipkart CEO Binny Bansal resigned after facing an allegation of
"serious personal misconduct". Walmart stated that "while the investigation did not find evidence to
corroborate the complainant's assertions against Binny, it did reveal other lapses in judgment, particularly a
lack of transparency, related to how Binny responded to the situation."

Business structures

According to a report in November 2014, Flipkart was operating through a complex business structure
which included nine firms, some registered in Singapore and some in India. In 2012, Flipkart co-founders
sold WS Retail to a consortium of investors led by Rajeev Kuchhal.[78] Flipkart's Indian entities are owned
by Flipkart Pvt. Ltd, which is registered in Singapore. The Singapore-registered entity owns eight Indian
companies, including Flipkart Internet Pvt. Ltd, the company that runs the e-commerce marketplace

32
Flipkart.com; Flipkart India Pvt. Ltd, the wholesale business; and Flipkart Logistics Pvt. Ltd, which runs
Ekart.

Funding

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information. Please remove or replace such wording and instead of making proclamations about a subject's
importance, use facts and attribution to demonstrate that importance. (May 2018) (Learn how and when to
remove this template message)

The initial development budget of Flipkart was ₹400,000 (US$5,600).[80] It had later raised funding from
venture capital funds Accel India (US$1 million in 2009)[81][82] and Tiger Global (US$10 million in 2010
and US$20 million in June 2011).[83][84][85] On 24 August 2012, Flipkart announced the completion of its
4th round of US$150 million funding from MIH (part of Naspers Group) and ICONIQ Capital. The
company announced, on 10 July 2013, that it has raised an additional US$200 million from existing
investors including Tiger Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were ₹40 million (US$560,000) in FY 2008–2009, ₹200 million (US$2.8 million)
in FY 2009–2010[89] and ₹750 million (US$11 million) for FY 2010–2011.

Flipkart reported a loss of ₹2.81 billion (US$39 million) for the FY 2012–13. In July 2013, Flipkart raised
$160 million from private equity investors.

In October 2013, it was reported that Flipkart had raised an additional US$160 million from new investors
Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina SA, and Vulcan Inc., with
participation from existing investor Tiger Global.

On 26 May 2014, Flipkart announced that it had raised US$210 million from Yuri Milner's DST Global and
its existing investors Tiger Global, Naspers and Iconiq Capital.

On 29 July 2014, Flipkart announced that it raised US$1 billion[97] from Tiger Global Management LLC,
Accel Partners, and Morgan Stanley Investment Management, and a new investor, Singapore sovereign-
wealth fund GIC.

In December 2014, after it received $700 million from another funding, Flipkart had a market cap of $11
billion.

33
On 20 December 2014, Flipkart announced filing application with Singapore-based companies' regulator
ACRA to become a public company after raising $700 million for long-term strategic investments in India
following which its number of investors exceeded 50. The $700 million fund raised by Flipkart added new
investors—Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar
Investment Authority—on company's board. Its existing investors DST Global, GIC, ICONIQ Capital and
Tiger Global also participated in this latest financing round.[100] As of May 2015, Flipkart had raised $550
million from some of its existing investors, in a deal that raised its total valuation to $15 billion.

By August 2015, after raising another US$700 million, Flipkart had raised a total of $3 billion, after over 12
rounds and 16 investors.[102] In April 2017, Flipkart underwent another round of funding, with $1.4 billion
at a valuation of $11.6 billion, including eBay, Microsoft, and Tencent.[103] On 10 August 2017, Softbank
Vision Fund invested another US$2.5 billion in Flipkart.

On 19 September 2018, Flipkart Marketplace Singapore infused INR 3,463 crore into the Indian entity
Flipkart Internet. The transaction was done in two tranches according to the regulatory filings.[105]

Regulatory action and lawsuits

In January 2016, public interest litigation came up for hearing which accused Flipkart of contravention of
foreign investment norms. The court asked the Reserve Bank of India to provide the latest circular on
foreign investment policy.[111] The same month, the Department of Industrial Policy and Promotion (DIPP)
clarified that it does not recognise the marketplace model of online retail.[112] In February 2016, Health
Minister, J P Nadda, informed that the Maharashtra FDA had taken action against Flipkart, among others,
for selling drugs without a valid license.

House brands

Flipkart maintains several house brands, including Citron (home appliances) and Digiflip (formerly for
electronics and accessories).[114] In 2017, Flipkart launched additional brands, including Billion
(smartphones), Smartbuy (electronics accessories, effectively replacing Digiflip),[116] and MarQ (for large
appliances, although its launch was faced with a trademark dispute with an existing company, Marc
Enterprises).

In 2019, Flipkart began selling Nokia-branded televisions. A 55-inch, Android TV-based 4K Smart TV was
the first product released under that licensing agreement. A 43-inch TV was unveiled on 4 June 2020.

34
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

35
 DATA ANALYSIS
DEMOGRAPHIC PROFILE OF RESPONDENTS

Age

Table 1 AGE
Age Frequency
15-20 63
21-25 157
26-30 50
31-35 9
36-40 7
41-45 14
46-50 10
>50 6
Total 316
350
316
300

250

200
157
150

100
63
50
50
9 7 14 10 6
0
15-20 21-25 26-30 31-35 36-40 41-45 46-50 >50 Total

Table 1 AGE Frequency

(Source: Authors)

INTERPRETATION: above graph shows 316 respondents, 157 were in the age group of 21-25
years (49.7%), 63 in 15-20 years (19.9%) and 50 in 26-30 years (15.8%). Female consumers in the
age group of 15-30 years is the single largest group (85.4%) shopping online (Table 1). According
to census 2011, the percentage population in the age group of 15 to 30 years is around 31% (nearly
40 crore). This age group constitutes a large market for online businesses. With female population
constituting around 48.5% of total population, this is a fairly large segment of online consumers
36
 Education
Table 2 EDUCATION

Education Frequency

Class X 16

Class XII 25

Graduate 168

Post-graduate 80

Ph.D 8

Professional course 16

Others 3

Total 316

(Source: Authors)

350 316
300
250
200 168
150
100 80
50 16 25 16
8 3
0
sX II te te .D se rs ta
l
as sX ua ua Ph ur he To
Cl las ad ad co O t
C Gr t-g
r
na
l
s is o
Po es
of
Pr

Frequency

INTERPRETATION :- Graduates accounted for 168 (53%) of the 316 respondents, followed by post-
graduates 80 (25%), class XII 25 (8%) and others 35 (11%). Young graduates constituted the potential market for
the online sale of apparels.

37
 Table 3 OCCUPATION
Occupation Frequency
Self Employed 57
Service 87
House Wife 38
Unemployed 16
Student 118
Total 316

Table 3 OCCUPATION Frequency

Table 3 OCCUPATION Frequency
316

118
87
57
38
16

Self Employed Service House Wife Unemployed Student Total

Occupation

INTERPRETATION: - Students at the graduation level constitute the modal group. Occupationally,
students constitute 118 (37.3%) of the 316 respondents, followed by employees 87 (27.5%) and self-
employed 57 (18%). Housewives (12%) and unemployed (5%) make up the remaining
respondents (Table 3).

38
 Monthly Household Income

Monthly Individual Income

Table 4
MONTHLY INDIVIDUAL INCOME IN RS.
Monthly Individual income Frequency
<10,000 78
10,000-20,000 68
20,001-30,000 49
30,000-40,000 16
>40,001 12
Dependent 93
Total 316

Table 4 MONTHLY INDIVIDUAL INCOME IN RS.

Frequency
Table 4 MONTHLY INDIVIDUAL INCOME IN RS. Frequency
316

78 93
68 49
16 12
0 0 0 0 1 t l
00 00 00 00 00 en ta
0, 0, 0, 0, 0, nd To
<1 0-
2
1-
3
0-
4 >4 pe
00 00 00 De
1 0, 2 0, 3 0,

INTERPRETATION:
Those with lower income levels are frequent online consumers. Families with monthly income of
Rs.30,000/- or lower are spending more on online shopping. They accounted for 113 respondents (36%). This is
followed by monthly income of Rs.30,001/- to Rs.60,000/- with a frequency of 94 (30%). Those with monthly
income levels in excess of Rs.60,001/- account for 109 (35%).

Ninety three (29%) online women shoppers are dependents, 78 (25%) have income less than Rs.10,000/-,
58 (18%) between Rs.10,001/- to Rs.20,000/-, 49 (15.5%) between Rs.20,001 to Rs.30,000/- and the remaining
(12.5%) above Rs.30,001/- (Table 4).

39
 FREQUENCY OF ONLINE PURCHASE
(Source: Authors)

Table 5 FREQUENCY OF ONLINE

PURCHASE
Frequency of purchase Frequency
more than twice in a week 25
once a week 31
once in a fortnight 44
once in a month 89
once in 3 months 51
once in 6 months 27
once in a year 49
Total 316
Monthly Average Spending
350 316
300
250
200
150
100 89
44 51 49
50 25 31 27
0
k k t th hs hs ar l
ee ee igh ta
w w tn on ont ont a ye To
in
a
ce
a
fo
r am 3
m
6
m in
ice on n
a
e in i n i n nce
i c ce ce o
tw ce on
an on on on
e th
or
m

Frequency

INTERPRETATION:-
The modal monthly average spending for online purchases is Rs.1,000/-. Of the total respondents 112
(35%) spent below Rs.1000/- per month, followed by 77 (24%) spent Rs.1,001/- to Rs.2,000/-, 69 (22%) spent
Rs.2,001/- to Rs.3,001 and 38 (12%) spent Rs.3,001/- to Rs.4,000. Those who spent more than Rs.4,000/- per month
are 58 (18%).

40
 FACTOR ANALYSIS
The Part B of questionnaire included 24 items relating to female consumer’s online buying behaviour. The
alpha coefficient for the data was 0.848 indicating good internal reliability. Further, the factorability of the data was
examined. Exploratory Factor Analysis (EFA) detects the constructs i.e. factors that underlie a dataset based on the
correlations between variables i.e. questionnaire items. The variables that share the highest proportion of variance
are expected to represent the underlying constructs. Factor analysis does not have the presumption that all variance
within a dataset is shared, in contrast to the commonly used principal component analysis. Several well-recognised
criteria for the factorability of a correlation were used. Firstly, it was observed that all the 24 items correlated at least
0.5 with at least one other item, suggesting reasonable factorability. Secondly, the Kaiser-Meyer-Olkin (KMO)
measure of sampling adequacy was 0.801. For the KMO statistic Kaiser (1974) recommends a bare minimum of 0.5
and that values between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are good, values between 0.8 and 0.9
are great and values above 0.9 are superb (Hutcheson & Sofroniou, 1999). For these data the value is 0.801 which
falls into the range of being great. Bartlett’s test of sphericity was significant (χ 2 (276)=4371.979, p<0.05). The
communalities

41
Ease of Use and Convenience

The first factor is labelled as ease of use and convenience. It explained 27.535 per cent
variance. It has ten items viz., I shop online as I can save myself from market crowd, I shop
online as there is no embarrassment if I do not buy, I shop online as I can take as much time as I
can to decide, I shop online as I can get detailed product information online, I shop online as I
can then save myself from chaos of traffic, I use online shopping for buying products which are
otherwise not easily available in the nearby market or are unique (new), Online purchasing
makes my shopping easy, It is easy to choose and make comparisons with other products while
shopping online, I shop online as I can shop from home, and Availability of internet makes
online shopping easier.

Table 6
FACTOR LOADINGS AND COMMUNALITIES BASED ON A PRINCIPAL COMPONENTS ANALYSIS
WITH VARIMAX ROTATION FOR 24 ITEMS FROM THE SHORT VERSION OF THE FEMALE
CONSUMERS ONLINE BUYING BEHAVIOUR SCALE (N=316)
Component Commu-
nalities
1 2 3 4 5 6
I shop online as I can save myself from 0.710
0.760
market crowd.
I shop online as there is no embarrassment if 0.753 0.687
I do not buy.
I shop online as I can take as much time as I 0.743 0.675
can to decide.
I shop online as I can get detailed product 0.707 0.638
information online
I shop online as I can then save myself from 0.694 0.732
chaos of traffic.
I use online shopping for buying products 0.687 0.666
which are otherwise not easily available in
the nearby market or are unique (new).
Online purchasing makes my shopping easy. 0.681 0.661
It is easy to choose and make comparisons 0.605 0.695
with other products while shopping online.
I shop online as I can shop from home. 0.594 0.623
Availability of internet makes online 0.567 0.788
shopping easier.
I feel that my credit-card details may be 0.830 0.555
compromised and misused if I shop online.
42
I fear overcharging if I shop online as the 0.827 0.637
retailer has my credit-card information.
I fear misuse of credit card data in online 0.780 0.724
shopping.
Social media triggers me to purchase a 0.684 0.697
product/service online.
I cannot get to examine the product when I 0.655 0.833
shop online, hence I don’t prefer.
Social media helps me getting customer 0.756 0.684
reviews before buying online.

43
 Table 6
FACTOR LOADINGS AND COMMUNALITIES BASED ON A PRINCIPAL COMPONENTS ANALYSIS
WITH VARIMAX ROTATION FOR 24 ITEMS FROM THE SHORT VERSION OF THE FEMALE
CONSUMERS ONLINE BUYING BEHAVIOUR SCALE (N=316)
Social media helps me to collect information 0.753 0.759
about the products to buy online.
I get on time delivery by shopping online. 0.665 0.723
I do not like being charged for shipping when 0.637 0.691
I shop online.
Online shopping doesn’t waste time. 0.869 0.741
Online shopping takes less time to purchase. 0.765 0.636
I feel that it takes less time in evaluating and 0.762 0.702
selecting a product while shopping online.
I will have problem in returning product 0.748 0.644
bought online.
When I make online purchase my friend's 0.803 0.753
opinion is important to me.
Eigen Value 6.608 4.797 1.583 1.433 1.154 1.080
Explained variance per factor (%) 27.535 19.987 6.594 5.972 4.807 4.500
Cumulative (%) 27.535 47.522 54.115 60.008 64.985 69.394
(Source: Authors)

Security

The second factor is labelled as security. It explained 19.987 per cent variance. It has
five items viz., I feel that my credit-card details may be compromised and misused if I shop
online. I fear overcharging if I shop online as the retailer has my credit-card information. I fear
misuse of credit card data in online shopping. Social media triggers me to purchase a
product/service online. I cannot get to examine the product when I shop online, hence I don’t
prefer.

Utility

The third factor is labelled as utility. It explained 6.594 per cent variance. It has five
items viz., Social media helps me getting customer reviews before buying online, Social media
helps me to collect information about the products to buy online, I get on time delivery by
shopping online and I do not like being charged for shipping when I shop online.

Time Management

The fourth factor is labelled as time management. It explained 5.972 per cent variance.
It has three items viz., Online shopping doesn’t waste time, Online shopping takes less time to

44
purchase and I feel that it takes less time in evaluating and selecting a product while shopping
online.

Outbound Logistics

The fifth factor is labelled as outbound logistics. It explained 4.807 per cent variance.
It has one item viz., I will have problem in returning product bought online.

Feedback

The sixth factor is labelled as feedback. It explained 4.500 per cent variance. It has one
item viz., When I make online purchase my friend’s opinion is important to me.

45
 CHAPTER-5

FINDINGS, SUGGESTIONS, CONCLUSIONS

46
 FINDINGS

 Most of the female online shoppers are-students in the age group of 21-25 years,
graduates/students and dependents. Majority of them are not married. Their frequency of
purchase is mostly monthly.
 The six factors identified through factor analysis viz., ease of use & convenience,
security, utility, time effectiveness, outbound logistics and feedback explained more than
69% of variance.
 Ease of use and convenience play a significant role in attracting online female customers.
Website design and features that provide useful information to the customers and
convenience of buying from home make them use online shopping.
 Security of the online transaction and source credibility of the supplier are important too.
Female consumers use online reviews on the products that they wish to purchase to assess
their utility. For most of the female consumers effective time management is an important
consideration for opting to buy online.
 An important consideration for the female online customers is the process of returning a
product when it has to be done for various reasons.
 These considerations are important for the marketing managers to decide on the strategies
for online marketing of their merchandise.

47
 SUGGESTIONS

E-Commerce firms should focus on female consumers in the age group of 21 to 25 years,
graduates and either during their studentship (i.e. they are dependents) or in the formative years
of their career. Female consumers are showing positive attitude towards buying online. Six
factors viz., ease of use & convenience, security, utility, time effectiveness, outbound logistics
and feedback explain more than 69% variance. E-Commerce firms have to closely monitor these
factors and facilitate positive outcomes for the female consumers.

48
 CONCLUSION
Online shopping is becoming popular by the day. Marketers find understanding
customer’s need for online selling a challenge. In particular, understanding attitude of the
consumer’s towards online shopping, improvements 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. Therefore, the focus of this study was mainly on factors
that influence female consumers to shop online.

Online retailing is very different from the store formats of retailing. The research made an
attempt to find out the triggers that influence shopper buying behaviour in online retail formats.
The Exploratory factor analysis concluded factors viz., ease of use & convenience, security,
utility, time effectiveness, outbound logistics and feedback as the determinants of female shopper
buying behaviour online. Online retailers must take this into consideration while designing their
user interface.

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 QUESTIONNAIRES

DEMOGRAPHIC PROFILE OF RESPONDENTS

Age
Table 1 AGE
Age Frequency
15-20 63
21-25 157
26-30 50
31-35 9
36-40 7
41-45 14
46-50 10
>50 6
Total 316

Table 2 EDUCATION
Education Frequency
Class X 16
Class XII 25
Graduate 168
Post-graduate 80
Ph.D 8
Professional course 16
Others 3
Total 316
(Source: Authors)

Table 3 OCCUPATION
Occupation Frequency
Self Employed 57
Service 87
House Wife 38
Unemployed 16
Student 118
Total 316

Occupation

Monthly Household Income

Monthly Individual Income

Table 4
MONTHLY INDIVIDUAL INCOME IN RS.
Monthly Individual income Frequency
<10,000 78
10,000-20,000 68
20,001-30,000 49
30,000-40,000 16

50
>40,001 12
Dependent 93
Total 316

FREQUENCY OF ONLINE PURCHASE

(Source: Authors)
Table 5 FREQUENCY OF ONLINE
PURCHASE
Frequency of purchase Frequency
more than twice in a week 25
once a week 31
once in a fortnight 44
once in a month 89
once in 3 months 51
once in 6 months 27
once in a year 49
Total 316
Monthly Average Spending

51
 BIBLIOGRAPHY

1.http://www.iamai.in/PRelease_detail.aspx?
nid=3604&NMonth=7&NYear=2015

2. http://www.pwc.in/assets/pdfs/publications/2015/ecommerce-in-
india-accelerating-growth.pdf

REFERENCES

Al-Mowalad, A. & Putit, L. (2013). Factors influencing Saudi Arabian

women’s shopping behavior in online purchase activities. Journal of
Emerging Economies and Islamic Research, 1(2), 310.

Antonides, G. & Van-Raaij, F.W. (1998). Consumer behaviour: A

European perspective. Baffins Lane: Wiley. Ballard, E. & Mander, S.
(2006). It’s official, men shop more than women. SciVism web
application testing.

Retrieved from
http://www.scivisum.co.uk/pressreleases/200609malefemale_ecomm.ht
m.

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