A STUDY ON BUYING BEHAVIOUR OF

ONLINE CUSTOMERS

DHARMESH RATHOD
HPGD/JL19/1780

WELINGKAR INSTITUTION OF
MANAGEMENT
DEVELOPMENT AND RESEARCH

YEAR OF SUBMISSION :– JUNE 2021

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ACKNOWLEDGEMENT

Firstly, I would like to thank WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT & RESEARCH for giving me this opportunity to learn and pursue my final
year project and understand the various aspects of Marketing.
I would also like to express my gratitude to all those people who have helped me specially my
guide, who provided me with more information regarding this topic and also guided me
throughout the project. Most of the information has been collected from different sites and also
few books because of lockdown.

DHARMESH RATHOD
Place: THANE
Date: June, 2021

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UNDERTAKING

I declare that project work entitled A STUDY ON BUYING BEHAVIOUR OF ONLINE

CUSTOMERS is my own work conducted as part of my syllabus.

I further declare that project work presented has been prepared personally by me and it is not
sourced from any outside agency. I understand that, any such malpractice will have very serious
consequence and my admission to the program will be cancelled without any refund of fees.

I am also aware that, I may face legal action, if I follow such malpractice.

DHARMESH RATHOD

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 CHAPTER 1-INTRODUCTION

1.1 NEED FOR THE STUDY

The purpose of this study is to look into the characteristics of online shoppers' purchasing habits.
Various socio-economic variables were used to investigate consumer purchasing behaviour when
it came to online shopping. It also offers assistance to researchers in determining the factors that
influence consumers' attitudes and goals for shopping on the Internet, as well as their
expectations of ease of use and utility. The conclusions drawn from the study can be used as a
guide for market positioning. The study's findings indicate that assessing consumer buying
behaviour will help researchers better understand consumer buying behaviour in the context of
online shopping.
"About 44 percent of students use the Internet in India, and overall 72 percent of young people
use the Internet on a daily basis," according to a survey. The purchasing habits have changed as a
result of the widespread use of the Internet. It has changed the way people buy and sell things,
resulting in an unprecedented increase in the number of people who shop online. However, due
to the different characteristics of customers and the types of goods and services offered, several
variations in online purchasing have been discovered. Consumer uniqueness, situational
considerations, product distinctiveness, previous online shopping awareness, and confidence in
online shopping all influence attitudes toward online shopping and goals to buy online. As a
result, for both e-marketing managers and consumer thinkers, knowing who is consuming and
why they want to use or avoid the Internet as a delivery channel is important. There are
numerous companies that offer consumers the opportunity to purchase goods through the
internet. Consumers who shop online are more likely to be well-informed. Online shopping is
more intelligent when you have a higher level of computer literacy. Their understanding of the
internet also allows them to better recognise and make decisions about goods and services. By
the internet, customers find that they no longer have to accept fixed prices for the goods and
services and with the click of a few buttons the lowest cost, best quality product can be found.
Following the introduction of the World Wide Web, the idea of online shopping evolved
steadily. In 1992, Charles Stack became the first person to open an online bookstore. Even Pizza
Hut has launched an online pizza store, while eBay and Amazon have elevated the idea of online
shopping to new heights. Since 1996, online shopping has been in full swing. In 2009, 71 million
people used the Internet, with 52 million of them being "regular" users who used it at least once a
month.
Since the last two decades, the internet has been rapidly developing, along with a relevant digital
economy that is powered by information technology. Following the long-term growth of the
internet, which resulted in a rapid rise in web users and high-speed internet connections, as well
as the development and usage of digital technologies for web development, companies were able
to promote and improve images of their products and services through web sites. As a result,

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comprehensive product details and enhanced service are attracting an increasing number of
people to move from conventional shopping to online shopping. On the other hand, a growing
number of companies have recognised that changing customer behaviour is an inevitable trend
and have changed their marketing strategies as a result. According to recent studies, internet
shopping, especially business to consumer (B2C) shopping, has increased, and online shopping
has become more common among many people. The study claims that. According to the US
Department of Commerce's Emerging Digital Economy II study, e-commerce accounts for a
significant portion of overall revenue in some companies. For example, during the first quarter of
1999, the Dell computer company sold 18 million dollars over the internet. As a result, the
internet accounted for about 30% of the company's overall revenue of 5.5 billion dollars (Moon.
2004). Understanding internet shopping and its effect on customer behaviour may thus benefit
businesses that use it as a method of conducting e-business. There are many reasons for the
exponential growth of internet shopping, the most important of which is the advantages that the
internet offers. To begin with, the internet provides customers with a variety of benefits.
Obviously, customers do not need to go out looking for product details because the internet will
assist them in searching through web platforms and comparing prices to find the best deal.
Furthermore, the internet has the ability to improve consumer use of products more quickly and
easily than other CHANNELS to meet their needs. Consumers save time by using various search
engines to access consumption-related content, which includes a mix of images, sound, and very
specific text descriptions to assist consumers in learning about and selecting the most appropriate
product. Customers, on the other hand, face possible threats from online shopping, such as
payment security and after-sales support. Because of the advancements in internet technology,
internet payment has recently become a common method of buying products over the internet.
Online payment improves consumption efficiency while also reducing internet protection due to
its virtual nature. Another way to discourage customers from buying online is to provide after-
sales support. It's not like conventional retail; customers run the risk of receiving some after-
sales service that requires face-to-face interaction, particularly with more complicated items.
Electronic commerce has developed at a rapid pace, resulting in greater use of this method by
traders. In addition, e-commerce rivalry has increased. As a result, understanding the antecedents
of customer acceptance of online shopping becomes highly essential for online retailers.
Customer relationship management, which has been recognised as a successful business practise
for success in the electronic industry, needs such expertise. The current study aims to better
understand the satisfaction and loyalty patterns of online shoppers.
People will participate in a decision-making process while purchasing products. One of the main
issues with E-commerce websites is that they do not adequately serve customers during this
process. The marketer can deliver better goods and services by considering the customer's desires
and concerns.

1.2 Objectives of the study

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The main objective of the study is to discover the key factors that influence online buying
behaviour of consumers.

 To get a better understanding of the respondents' internet use habits.

 Examine the types of items that respondents purchase online.
 To investigate the relationship between frequency of purchase and factors such as the
appearance of the home page, the security of the website, and the ease with which
payments can be made.
 To make appropriate recommendations for the current research

1.3 Problematization
Despite the rapid growth of online shopping and the advantages discussed above, Kim, Lee, and
Kim pointed out that consumers' online store searches do not often result in a full purchase or
transaction for their actual needs. Before, according to Moshref et al.
When a customer buys a product or service on the internet, they anticipate various forms of risk,
including financial risk (money loss), product risk (product quality as seen on the website), and
non-delivery risk (if the product remains undelivered). Website design is influenced by
psychological factors such as trust, security, and technical acceptance. Iconaru and colleagues.
Many researchers claimed that consumers' perceptions of online shopping risk, which had a
negative effect on their actions when shopping on the internet (Martin and Camarero,; Liu et al.;
Meres et al.), decreased their intention to shop for other products on the internet (D'Alessandro et
al. 2012). According to Swinyard & Smith, more than 70% of online non-shoppers do not buy
online because they are afraid of financial losses if they purchase from online e-retailers.
Perceived risk, according to Forsythe et al., plays an important role in deterring consumers from
purchasing online and predicting their intention to buy online in the future.
Consumers feel insecure as a result of the manipulation of trust and the compromising of
personal data to third parties, according to Iconaru et al., which contributes to a decrease in
customer trust in the protection of e-retailers. According to Lee and Turban, customer trust is a
key factor in determining whether or not they can shop online. According to Srinivasan,
ecommerce's success is based on two factors: confidence and protection. Furthermore, he said
that gaining consumers' confidence in e-commerce takes time, and that e-retailers should strive to
provide safe methods to protect consumers' personal information. As a result, the customer exits
the e-commerce store without completing the order or transaction. Online retailers should build
their websites to turn online tourists to online shoppers more easily, securely, and efficiently,
according to Yörük et al.

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CHAPTER 2-THEORETICAL FRAMEWORK
This chapter will present the most relevant and up-to-date literature on online shopping
behaviour as well as external online factors that influence consumers' intentions to shop online.

2.1 Online Shopping Behaviour

Online shopping behaviour refers to an individual's overall impression and appraisal of a product
or service while shopping online, which may be negative or positive. Previous research has
identified conduct as a multi-dimensional framework that has been conceptualised in a variety of
ways Li & Zhang. Many academics use various dimensions to assess consumer conduct. The
first dimension, according to Gozukara et al., refers to a consumer's attitude toward a utilitarian
motive (convenience, variety seeking, and merchandise quality, cost profit, and time
effectiveness). The second dimension is hedonic motivation (happiness, imagination, escapism,
awakening, sensuality & enjoyment), and the third is perceived ease of use and usefulness,
according to Baber et al. Another factor that influences consumer behaviour when it comes to
online shopping is perceived danger.
Furthermore, according to Li & Zhang, there are two forms of perceived danger that influence
consumer behaviour during the online shopping process. It's also known as the first type of risk
associated with online products and services, The other type of perceived risk involved in e-
transactions is privacy and protection, which includes financial, time, and product risk (Li &
Zhang). Many researchers (Kumar & Dange, Samadi & Nejadi, Hassan et al, Subhalakshami &
Ravi have analysed the relationship between gender and sexuality. Financial risk, product risk,
non-delivery risk, time risk, privacy risk, information risk, social risk, and personal risk,
according to the report, have a negative and severe impact on online shopping conduct. Another
aspect of customer behaviour is e-retailer confidence and protection. According to Monsuwe et
al., a good shopping experience increases consumer trust in e-retailers and lowers perceived risk.

2.2 Factors Influencing Consumer Behaviour Towards Online Shopping

Consumers have made shopping easier thanks to the ease and convenience offered by online
retailers, which are open 24 hours a day, seven days a week. Consumers are influenced by a
variety of factors, such as the ability to shop anywhere, anytime and for anything with a simple
and secure payment choice for online shopping. Consumers can save time and money by doing
comparison shopping between goods and online retailers. Online information about product
services is available, as is the chance to compare items when shopping online. The agency's
delivery time is also available Other significant factors influencing consumer attitudes toward
online shopping include the content and efficiency of online shopping websites, as well as other
protection steps taken by agencies to protect consumers' identities and ensure a smooth
transaction.

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Consumer behaviour is a decision-making process as well as a mental and physical activity in
which an individual evaluates, purchases, uses, and discards products and services. Consumer
behaviour is the study of how people behave when they are shopping for, using, testing, and
discarding products. They want a variety of goods and services to meet their needs. As
consumers, they play a critical role. The ones who eventually purchase the firm's goods and
services, and the firm still makes persuasive efforts to draw them to its goods and services in
order to generate sales and increase profitability. Consumer behaviour is an interdisciplinary
approach focused on ideas and hypotheses about people developed by behavioural scientists,
theorists, and scholars from a wide range of disciplines including psychology, sociology, social
psychology, cultural anthropology, and economics. The analysis of customer behaviour also aids
management in understanding consumer desires, recognising consumer potential in light of new
technologies, and articulating new things in terms of consumer needs, ensuring that goods are
well received in the market. Person and environmental variables both affect consumer
purchasing behaviour. Demographics, customer intelligence, cognition, learning, motivation,
personality, values, behaviours, and life styles are the main categories of individual factors
influencing consumer behaviour. Environmental factors are the second type of factor.
Environmental factors are things that happen outside of an individual's control and influence how
they make decisions. Community, social status, peer group, family, and household are some of
these variables. The aforementioned considerations are the primary determinants of consumers'
decisions to purchase a particular product or service [13]. Consumers of various goods from
various age groups, social cultural backgrounds, and geographical locations act differently when
making purchasing decisions. When a buyer makes a purchase, cultural, social, personal, and
psychological factors influence the final decision.

1. Cultural Factors
Cultural factors such as regional culture and social status have a significant impact on consumer
behaviour. Culture is an integral part of every society, and its impact on consumer purchasing
behaviour varies by country. Religions, nationalities, geographic areas, ethnic groups, and other
elements of each community exist. Marketers may make use of these categories by breaking
down the market into small chunks. Culture can be described as a way of life that is passed down
from generation to generation. Culture is not a fixed entity. It is constantly changing and
combining old and new ideas. People of various social groups have a variety of desires and
consumption habits. Disparities arise as a result of their differing buying power. According to
some scholars, one's actions and purchasing preferences may also be used to identify and belong
to a social class. Marketing activities may be targeted to various social groups in this way.
2. Social Factors
Consumer purchasing behaviour is influenced by social factors. Reference groups, family, role,
and status are all important social factors. Reference groups have the power to influence a
person's attitude and actions. The influence of comparison groups varies depending on the
product or brand. A reference group is a real or imagined person or group that is thought to have

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a major impact on an individual's evaluation, aspiration, or actions. Consumers are influenced by
their reference group in two ways: informative utility and value expression. The members of a
family have a big impact on buyer behaviour. As a result, advertisers are attempting to determine
the positions and impact of the husband, wife, and children. If a woman's impact on a product's
purchase decision is important, advertisers may attempt to target women in their advertising.
Depending on the classes, clubs, families, or organisations to which he belongs, each individual
has a different position and status in society. A woman, for example, works as a finance manager
in a company. She is simultaneously playing two roles: that of a finance manager and that of a
mother.
3. Personal Factors
Consumer behaviour may also be influenced by personal factors. Lifestyle, economic status,
occupation, age and family life cycle, personality and self concept are some of the significant
personal factors that affect purchasing behaviour. Consumer purchasing behaviour may be
influenced by age and life cycle. It is self-evident that a consumer's taste and tastes for products
and services evolve over time. The family life-cycle is divided into stages, such as young singles,
married couples, and unmarried couples, which helps marketers create goods that are suitable for
each stage. The profession of an individual has a direct effect on consumer purchasing
behaviour. A company's marketing manager, for example, will try to buy a business. Whereas a
low-level employee of the same company can only buy cheaper clothing. The economic
condition of the customer has a major impact on his purchasing decisions. If a customer's income
is high, more expensive goods will be available, whereas those with a low income will opt for
less expensive items. Another significant factor influencing consumer purchasing behaviour is
the customer's lifestyle. The way a person lives in a community and purchases items in
accordance with his environment is referred to as lifestyle. Personality shifts from person to
person, over time, and from location to location. It has a major impact on consumer purchasing
behaviour. The totality of a man's characteristics is his personality.
4. Psychological Factors
Consumer purchasing behaviour is influenced by four major psychological factors. Motivation,
perception, attitudes, and beliefs are the four factors. Customers' purchasing behaviour is
influenced by their level of motivation. Physiological, biological, and social needs all vary from
one individual to the next. Choosing, arranging, and analysing data in order to Perception is the
process of creating a positive experience of the environment. Selective focus, selective
distortion, and selective retention are three distinct perceptual mechanisms. Customers have
unique attitudes and views toward different items. Marketers are interested in such values and
behaviours because they form part of a brand's image and influence customer purchasing
behaviour. All of these variables work together to create a detailed model of consumer behaviour
that represents the decision-making process of consumers. Consumer behaviour and expectations
are influenced by the main factors and decision-making mechanism.

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2.4 Advantages and Disadvantages of Online Shopping
Advantages Of Shopping Online Disadvantages of shopping online
Convenience Negative Environmental Impact of Packaging
and Gas
Better Prices Shipping Problems And Delays
More Variety Risk Of Fraud
Easy To Send Gifts Less Contact With Your Community
More Control Spending Too Much Time Online
Easy Price Comparisons Returns Can Be Complicated

No Crowds You Don't Know Exactly What You're Getting

No Sales Pressure Unfriendly, Scams , or Complicated Websites
Access to Used or Damaged Inventory No Sales Assistance
Privacy for Discreet Purchases No Support for Local Retailers

2.4.1 Advantages Of online Shopping:

1. Convenience
First most significant advantage is convenience. Where else can you shop while still in your
pyjamas at 12 a.m.? You won't have to wait in queues or track down cashiers to assist you with
your purchases, and you can finish your shopping in minutes. Online stores allow us to shop at
any time of day or night, and they also provide us with a pollution-free shopping experience.
There is no better place to purchase informational items like e-books, which are immediately
accessible after your payment is processed. Online purchases of downloadable goods remove the
need for some kind of physical content, which is good for the environment.

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2. Better Prices
Since goods are delivered directly from the producer or seller, there are cheaper offers and better
prices available online. It's much simpler to compare costs and locate a better offer. Many
websites also have discount vouchers and rebates. You will save money on taxes as well, since
online stores are only allowed to pay sales tax if they have a physical presence in your state.
When you factor in the money saved on petrol and parking, you've saved a lot of money.
3. More Variety
The variety of options available on the internet is incredible. Almost any brand or object you're
searching for can be found here. You can keep up with the latest world developments without
having to pay for a plane ticket. Instead of being restricted to your own geographic area, you can
shop from retailers all over the state, region, and even the world. You have access to a much
wider range of colours and sizes than you can find locally. Furthermore, since the stock is much
larger, you'll still be able to find your size and colour. Some online stores will also take orders
for out-of-stock products and ship them as soon as they arrive.
4. You Can Send Gifts More Easily
It's easy to send presents to family and friends no matter where they are. You don't have to worry
about packing or delivery because it's all taken care of for you. They'll also even gift wrap it for
you! There's no longer any need to put off sending a gift on holidays such as birthdays,
weddings, anniversaries, Valentine's Day, Mother's Day, Father's Day, and so on because of
distance.
5. More Control
When we go traditional shopping, we always end up spending much more than we intended and
purchasing things that aren't exactly what we wanted (but there isn't anything better in the store).
You don't have to let the store's inventory decide what you buy when you shop online; you can
get exactly what you want.
6. Easy Price Comparisons
It's a lot easier to compare and review goods and their prices online. You can find user reviews
and product comparisons for all of the options on the market, as well as links to the best deals, if
you're looking for appliances, for example. For most goods and stores, we can look up first-hand
experience, ratings, and feedback.

7. No Crowds
If you're like me, you hate shopping in crowds. They can be a huge pain, particularly during
holidays, festivals, or weekends. Furthermore, being suffocated in a crowd of shoppers can make

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us feel rushed or hurried. There's no need to fight for a parking spot. When you shop online, you
will skip all of these issues.
8. No Sales Pressure
When we go shopping, we always end up purchasing items we don't need because shopkeepers
pressurise us or use their sales skills to persuade us to make these purchases.
9. You Can Get a Better Price on Used or Damaged Piece
We have access to listings of old or damaged goods at rock bottom prices thanks to the Internet
marketplace. There's also no better place to find great antiques if we want to buy them.
10. Discreet Purchases Are Easier
Some tasks are easily done in the safety of your own home. Adult toys, sexy lingerie, and other
items are better purchased anonymously from online stores. This allows me to shop for
underwear and lingerie without feeling embarrassed or as if others are watching or judging me.

Additional Benefits of Shopping Online

 You will receive an electronic record of your sales receipt, which will make record-
keeping much easier.
 You can try on clothes in the privacy of your own home.
 Returns can be simple at times.
 It helps you save time!
4.2.2 Disadvantages Of Online Shopping
1. Negative Environmental Impact of Packaging and Gas
Having your order shipped to your front door in several layers of plastic and cardboard
packaging is convenient for you, but it is not so convenient for the climate. Even if you want to
recycle the cardboard, shopping online generates needless waste.
2. Shipping Problems And Delays
Also the best delivery companies and online retailers have bad days, but there's no way to
guarantee that you'll receive your order on time unless you pick it up in a store. More often than
you would think, items get misplaced, detoured, destroyed, or shipped to the wrong address.
3. Risk Of Fraud
When you shop online, you're more vulnerable to fraud: credit card scams, phishing, hacking,
identity theft, counterfeit goods, fake websites, and other types of fraud are all popular.
4. Spending Too Much Time Online
You can get burnt out on all that screen time, particularly if your work needs you to look at a
monitor all day. Internet shopping can quickly become a marathon of scrolling and clicking

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down rabbit holes, and before you know it, you've spent the majority of your day online. The
internet is a fun place to visit, but it's not a place you'd want to live.
5. Less Contact With The Community
You'll never have to leave your house if you conduct all of your business online. This may be
fine for a while, but there will come a time when you'll want to get out of the house, get some
fresh air, change your scenery, talk to real people, engage in your group, and simply blend in
with the crowd. A computer monitor can't always cope with a genuine human bond.
6. You Don’t Know Exactly What You Are Getting
Unless you are acquainted with a brand or commodity, purchasing something online necessitates
a leap of faith... one that does not always pay off. Sizes are sometimes inaccurate. Texture,
fabric, fit, cut, consistency, heft, and durability cannot be determined solely by looking at a
photograph. When you hold something that looks nice in your hands, it can feel chintzy,
uncomfortable, or cheap.
7. Returns Can Be Complicated
Some sellers make the process easy, while others make it extremely difficult to return items or
receive a refund. The majority of the time, you will not be reimbursed for any shipping costs.
Labelling, packaging, shipping, monitoring, and filling out all the necessary forms are all hassles
you can escape if you buy in person (and you won't need to return items as much if you hand-
pick your merchandise).
8. Unfriendly, Scams or Complicated Websites
Some websites ask you to enter their mailing list and render unsubscribing impossible. Some
people sell your email address to third parties, resulting in a flood of advertisements in your
inbox. Often, websites don't have adequate or reliable product details, or you can't find out how
to buy, refund, or contact customer service.
9. No Sales Assistance
Whenever you shop in a store, someone is normally there to assist you, but when you shop
online, you're on your own. It's just too bad if you're perplexed or have questions. Since you have
no one to turn to, you will be forced to make rash decisions and mistakes that you will come to
regret later.
10. No Support For Local Retailers
All local shops would go out of business if everyone started doing their shopping online. We'll
have to travel further and further away to shop at a real store until all the shops in town have
closed. Many citizens and locations have already felt the negative and often destructive effects of
e-commerce, which has resulted in job losses and economic devastation.

2.5 Best And Worst Things To Buy Online

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 Things You Should Buy Online Things You Should Buy In A Store
Electronics (new or refurbished) Anything you can haggle for to get a better
price
Medicine (cheaper and easier, especially when Medicine (watch out for online scams and
you're sick) expired or fake meds)
Clothing (if you know exactly what colour, Clothing (when you want to touch, try on, and
style, and size you want) inspect)
Baby supplies (diapers, formula, food) Anything that should be experienced first
(mattresses, furniture, blankets, etc.)
Pet food (cheaper and easier, especially in Really heavy items (with pricey shipping costs)
bulk)
Books (if you know exactly what you want) Books (if you want to browse, talk to the
bookseller, and support your local bookstore so
they don't go out of business)
A used car (cheaper and easier without a Anything you might need to return
dealer, unless you need financing)
Groceries (if you don't have time) Groceries (if you like to choose what you eat
and support your local growers and grocers)
Holiday Gifts (the gift wrapping, shipping, and Any product you haven't tried before (perfume,
convenience can't be beat) food items, cosmetics, etc.)
Art (sites like Etsy list original, beautiful art A pet (of course!)
direct from the artist)
Prescription or reading glasses (always cheaper Real estate (of course!)
and cuter online)

Chapter 3-Changing Consumer Behaviours

towards Online Shopping - An Impact of Covid
19

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