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“A STUDY OF COSTUMER
SATISFACTION TOWARDS
ONLINE SHOPPING"

A Project Submitted to

University of Mumbai for partial completion of

the degree of Master in Commerce Under the
Faculty of Commerce

By

“SHAIKH ABDUL SAMAD ABDUL SHAKUR”

Under the Guidance of
“SUREKHA SHETTY”

BUNTS SANGHA MUMBAI’S

ANNA LEELA COLLEGE OF COMMERCE AND ECONOMICS AND SHOBHA
JAYARAM SHETTY COLLEGE FOR BMS
Affiliated to the University
NAAC Accredited 'B' Grade

Januaury 2023.

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Bunts Sangha Mumbai

Anna Leela College of Commerce and Economics & Shobha Jayaram
Shetty College for BMS
Shashi Manmohan Shetty Higher Education Complex,
Buntara Bhavanmarg, Kurla, Mumbai 400070
Affiliated to the University
NAAC Accredited 'B' Grade
______________________________________________________________________________

Certificate
This is to certify that Mr. Shaikh Abdul Samad Abdul Shakur has
worked and duly completed his Project Work forthe degree of Master
in Commerce under the Faculty of Commerce in the subject of
Management and his project is entitled, “A Study of Customer
Satisfaction Towards Online Shopping” under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree
or Diploma of any University.

It is his own work and facts reported by his personal findings and
investigations

Surekha Shetty.

Date of submission:

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Declaration by learner

I the undersigned Mr SHAIKH ABDUL SAMAD ABDUL SHAKUR here

by, declare that the work embodied in this project work
titled “ A Study of Customer Satisfaction Towards Online Shopping”
forms my own contribution to the research work carried out under
the guidance of Surekha Shetty is a result of my own research work
and has not been previously submitted to any other University for any
other Degree to this or any other University.

Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has

been obtained and presented in accordance with academic rules and
ethical conduct.

Shaikh Abdul Samad.

Surekha Shetty.

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Acknowledgment

To list who all have helped me is difficult because they are so numerous and
the depthis so enormous.

I would like to acknowledge the following as being idealistic channels

and freshdimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance todo this project.

I would like to thank my I/C Principal, Dr. Rajendra Patil for providing the
necessary facilitiesrequired for completion of this project.

I take this opportunity to thank our Coordinator, CA Kiran Gajjar for her
moralsupport and guidance.

I would also like to express my sincere gratitude towards my

project guide

Surekha Shetty whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.

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CONTENT

S No Contents Page No

1 Introduction of the topic 6

2 Objective of the study 12

3 Hyphotheses 13

4 Research Methodology 14

5 Limitation Of the Study 19

6 Profile Of the Organization 20

7 Literature Review 23

8 Analysis and Interpretation of Data 25

9 Findings 44

10 Conclusion 45

11 Recommendation 46

12 Bibliography 47

13 Annexure 48

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INTRODUCTION

 INTRODUCTION OF THE PROJECT

The world of internet practically can be considered as an endless market, where a consumer
living in any country of the world can get into a contractual relation with a trader operating in
any other country of the world. From this aspect a cross-border purchase is when the
consumer buys goods from any web trader settled anywhere in the world outside his/her
country of residence. Due to the differences in language and legislation environment,
furthermore sometimes in commercial traditions it is particularly essential to consider
whether to buy the selected product from a web store operated by a foreign trader.

The consumer, in case of Online Shopping can buy the selected product rapidly by doing
some clicks from home or work saving time and energy in spite of the larger distance arising
from the endless and unlimited market offered by the internet. The offers on the internet can
be easily compared, therefore the consumer can buy the product with the most favorable
conditions (price, quality, other discounts) tailored to the individual’s needs. Besides the
advantages however, it is good to know that there may also be risks connecting to online
shopping, since the International Conference on "Research avenues in Social Science”
Organize by SNGC, Coimbatore C-1229 www.ijariie.com 266 conclusion of the contract is
done without personal interaction, and the consumer sitting in front of a computer/screen
tends not to think over or consider his/her intention of buying.
Consumer’s attitude towards Online Shopping refers to their psychological state in terms of
making purchases over the Internet. Online buying behavior process refers to the products
purchased online. The process of online buying behavior consists of five steps and it is
similar to traditional shopping behavior. For instance, consumer recognize the need for
buying some product (book), they refers to the internet to buy online and start to search for
the information and look for all the alternatives and finally make a purchase which best fits to
their needs. Before making final purchase consumers are bombarded by several factors which
limits or influence consumers for the final decision.

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 STATEMENT OF THE PROBLEM

An increasing number and variety of firms and organizations are exploiting and creating
business opportunities on the Internet statistics indicate the repaid growth in the field of
virtual shopping. With this emerging field of shopping the interest of marketers is also
increasing in studying what actually motivates consumers to shop online. Fierce competitions
among online sellers have forced them to gain the competitive edge in the field of virtual
shopping. As Online Shopping is a new medium so the consumer behaviour in the field of
Online Shopping In order to gain competitive edge in the market, marketers need to know the
consumer behaviour in the field of online shopping. So it is important to analyse and identify
the factors which influence consumers to shop online in order to capture the demands of
consumers. Other than the factors which influence consumers to shop online, online
shopper’s demography in terms of Age, gender, income and education is equally important to
define their strategies accordingly.
Internet and Information technology have made tremendous contributions for business
transformation witnessed now a days all over the world. This has given birth to E-
commerce which encompasses several pre purchase and post purchase activities leading
to exchange of products or service or information over electronic systems such as the
internet and the other Telecommunication networks.
Analyzing the competitive advantage of E-Commerce it is observed that E-Commerce
enables simpler, faster and efficient business transactions. For developing country like
India, E-Commerce offer considerable opportunity for growth.
E-commerce leads to a boon for the current economic downturn. As India’s-commerce
market is worth about Rest 50,000 crores in 2012. About 80% of this is travel related
(airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).
Online retailing comprises about 15%.India has close to 10 million online shoppers and
is growing at an estimated 40-45% per annum.
The rapid growth of e-commerce in India is being driven by greater customer choice
and improved convenience.
The company has proposed a plan to launch an online grocery store in the Indian market
for which the project was undertaken was to determine whether on line grocery shopping
will be beneficial to the user with respect to questionnaire which will be analyzed in three
parts.
The project will first study the attitude of customers towards online shopping, also
determining the factors which influence the consumer to purchase goods and
service.

The second half of the project will depict the attributes of Online Shopping influencing
the purchase decision by the respondent. It will also determine the issues regarding the
online shopping.

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The third part of the project determines the purchase decision with respect to grocery. It
will determine the place preference of grocery shopping with respect to price, quality,
variety, proximity and offers/discounts.

 CATEGORIES OF E-COMMERCE:

As with traditional commerce, there are four principal categories of e-commerce: B2B, B2C,
C2B and C2C.

 B2B (Business to Business) — this involves companies doing business with each
other. One example is manufacturers selling to distributors and wholesalers selling to
retailers.
 B2C (Business to Consumer) — B2C consists of businesses selling to the general
public through shopping cart software, without needing any human interaction. This is
what most people think of when they hear "e-commerce." An example of this would
be Amazon.
 C2B (Consumer to Business) — In C2B e-commerce, consumers post a project with a
set budget online, and companies bid on the project. The consumer reviews the bids
and selects the company. Enlace is an example of this.
 C2C (Consumer to Consumer) — this takes place within online classified ads, forums
or marketplaces where individuals can buy and sell their goods. Examples of this
include Craigslist, eBay and Betsy.

Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with
the aim of cutting marketing costs, thereby reducing the price of their products and
services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey communicates and disseminate information, to
sell the product, to take feedback and also to conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities the will receive if they purchase the
product from a particular store. Many experts are optimistic about the prospect of online
business.
In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential
customers.
Although most of the revenue of online transactions comes from business-to-business
commerce, the practitioners of business-to-consumer commerce should not lose
confidence .It has been more than a decade since business-to-consumer E-commerce first
evolved. Scholars and practitioners of electronic commerce constantly strive to gain an
improved insight into consumer behaviour in cyberspace.
Along with the development of E-retailing, researchers continue to explain E-
consumers behaviour from different perspectives. Many of their studies have posited
new emergent factors or assumptions which are based on the traditional models of
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consumer behaviour, and then examine their validity in the Internet context.

 MODELS OF E-COMMERCE

 Business-to-Business (B2B):
B2B e-commerce is simply defined as e-commerce between companies. This is the type
of e-commerce that deals with relationships between and among businesses. About
80%of e- commerce is of this type, and most experts predict that B2B ecommerce will
continue to grow faster than the B2C segment. Egg: indiamart.com, eindiabusiness.com,
tradeindia.com etc.

 Business-to-consumer (B2C):
Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles such
as books or consumer products) or information goods (or goods of electronic material or
digitized content, such as software, or e-books); and, for information goods, receiving
products over an electronic network.
It is the second largest and the earliest form of e-commerce. Its origins can be traced to
online retailing (ore-tailing). Thus, the more common B2C business models are the
online retailing companies such as flipkart.comAmazon.com, snap deal.com etc.

 Business-to-Government (B2G):
Business-to-governmente-commerceorB2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations. This kind of e-commerce
has two features: first, the public sector assumes a pilot/leading role in establishing e-
commerce; and second, it is as summed that the public sector has the greatest need for
making to procurement system more effective.
Web-based purchasing policies increase the transparency of the procurement process
(and reduce the risk of irregularities). To date, however, the size of
theB2Gecommercemarket as a component of to tale-commerce is insignificant, as
government e-procurement systems remain undeveloped.

 Consumer-to-Consumer (C2C):
Consumer-to-consumer-commerce or C2C is simply commerce between private
individuals or consumers. This type of e-commerce is characterized by the growth of
electronic market places and online auctions, particularly in vertical industries where
firms/businesses can bid for what they want from among multiple suppliers. It perhaps
has the greatest potential for developing new markets.
Online auction site e Bay, Yahoo! Auctions are a couple of examples of C2C websites.

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 MOBILE COMMERCE IN INDIA:

Mobile is growing in India with more than 800 million subscribers across the country.
The advancement in terms of adoption of smart phones with 3G enabled services is
happening at a rapid pace. This of course has opened up the gates to mobile advertising,
mobile application development and mobile commerce in India. According to Buzz City’s
latest Report, India is top performing mobile advertising region in the whole of Asia. The
growth in mobile advertising globally is tremendous with ads served on a year-on-year
growth of 139%. With respect to some number crunching, more than 126 billion ads were
served in 2011, compared with 52 billion in 2010.

In India, Mobile Commerce is still in the development phase as the use of mobile phones
for carry in gout transactions is very limited. However, the development is taking place at
a nice speed and in the coming years, Mobile Commerce is most likely to make its
presence feel as companies and businesses have started understanding the benefits of
Mobile Commerce. Some of the companies have even incorporated this technology.
Airtel, ICICI, Reliance are some of the companies/businesses that are using this
technology as their users are allowed to make limited purchases from their phones. For
now, the users are mainly allowed to pay phone bills, utility bills, book movie tickets,
book travel tickets with their cell phones.

However, more services will be introduced in coming years. Security is one of the main
concerns of Mobile Commerce as it’s very important to offer secure transactions and this
is the reason why Mobile Commerce is still in the development phase in India.
For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account
with a cell phone in order to pay the utility bills. With the current rate of development, users
will be soon allowed to purchase products, advertise, to take part in auctions and pay bills
with the help of a cell phone, while they are on the move.

 ONLINE SHOPPING IN INDIA:

The Indian economy is slated to grow by upward of 6 % annually in the next few
years which is among the highest rates of any big emerging economy. And quite a
lot of this growth would been the back of domestic consumption of goods and
services.
E-commerce is emerging as a great level given that organized retail is still not ubiquitous
across the length and breadth of the country with large retail chains making up less than
10% of the market.
E-commerce is helping people in smaller towns in India access quality products and
services similar to what people in the larger cities have access to. Its being fore cast that
close to 60% of online shoppers would come from beyond the top eight large cities by end
of this year.

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Increasing internet penetration has helped to expand the potential customer pool.
Internet penetration is only about 10% (or about 121 million users) as against about 81%
in the US and 36% in China. However this number continues to rise at a consistent pace
because of falling prices for broadband connections.
Indians are also increasingly taking to mobile devices for not only search but shopping
as well. The number of smart phone users is rapidly increasing in India and with 4G
services about to take off it’s expected to get even more people going online. There are
currently about 900 million mobile subscribers and this number is expected to touch1.2
billion by 2015. Of these about 27 million are estimated to be active mobile internet
users. More importantly, 20% users indicated intent to buy products through their
mobile phones as against the current 4% and this number is expected to only increase
in the next two to three Years.
Innovation is helping-commerce companies break the inertia for Online Shopping by
offering benefits to customers not traditionally available in a brick and mortar store.
Business models include no question asked return policies ranging from 7 days to 30
days, free product deliveries and the industry dynamics changing “cash on delivery”
model. The last innovation has really help unlock the potential as people can now order
products and pay when they get physical delivery of the product.

This has been tremendous success because Indians are still reluctant to give their credit/debit
card details online and want to have the psychological comfort that they would actually get
the product once payment has been made. These innovations have led to further innovations
downstream as ancillary businesses are developing to support the so initiatives. Some
companies have begun to develop support mechanisms for the entire cash on delivery model
and are trying to reach the far flung corners of India, including in the interiors where
traditional logistics companies are still not completely present. The logistics companies are
also shoring up their act and have started to build specific verticals and expertise to address
the requirements of e-commerce companies.

Divan Gupta is the Founder and CEO of Kashia Services Pvt. Ltd, a company with
interests in the internet, telecom, healthcare, education and advanced technology
businesses has stated that, acceptance of Online Shopping as a secure shopping mode is
has also helped to increase commerce up take. Currently only about 10 million people do
online transactions out of an approximate population of 200 million credit and debit card
holders. However the latest industry report by First Data Corporation and ICICI
Merchant Services indicate that there are about 150 million users that are ‘ready’ fore-
commerce.
More importantly the report indicates that urban Indian consumers are now confident
enough to make online purchases of up to US $500 as against US $40-100 in the recent
past. So not only are the numbers of online shoppers projected to increase but there has
been a real increase in the total value being spent online.

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OBJECTIVES OF THE STUDY

 OBJECTIVES:

 To study the customer awareness about online shopping

 To investigate the factors effecting customer’s buying behaviour towards
 Online shopping.
 To find out the customer satisfaction from online shopping.
 To propose suitable suggestions for enhancing consumers satisfaction
 Through online shopping
 To show the benefits of online shopping.

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Hyphothesis

 Customers who have had previous positive experiences with online shopping will
have a higher level of satisfaction with their current online shopping experience.

 Customers who have access to more detailed product information and reviews will
have a higher level of satisfaction with their online shopping experience.

 Customers who receive their orders on time and in good condition will have a higher
level of satisfaction with their online shopping experience.

 Customers who have easy and convenient return policies will have a higher level of
satisfaction with their online shopping experience.

 Customers who have access to a wide range of products and brands will have a higher
level of satisfaction with their online shopping experience.

It's possible to add more hypotheses based on research objectives and availability of
data.

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RESEARCH METHODOLOGY

 Research Design:
The research was based on assessing consumer behavior. The design was exploratory study
which used closed observation in analyzing consumer behavior.

The study was based on the use of questionnaires. These approaches were used because they
were satisfactory tools for collecting data for the sample population to investigate the topic
under study.

A research design is the arrangement of the condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.

A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of
the project that stipulates what information is to be collected from which source and be what
procedures.

 Electronic Sources:

I began my search for electronic sources by using the search engine Google. I used keywords
such as, “online shopping and effects on economy” and “online shopping and its advantages”.
I chose these words because they related to my topic very well. I chose the articles that I used
for my bibliographies by looking through the online sources and seeing if the information
pertained to my subject matter and research question.

 Print Sources:

I found my print sources by going to Google Scholar. I used keywords such as, “online
shopping and effects on economy” and “online shopping and its advantages”. I chose the
articles for their excellent relevance to my research question.

 Empirical Source:

For my empirical source, I did a survey. I gave the survey to girls on my dorm floor. I
selected the girls for my survey, because they will actually shop and they would be able to
answer the questions in a truthful matter.

 Sources of Data:
Both primary and secondary source of data were used in conducting the research.

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 Primary Sources:
In getting primary data there are several approaches available to gathering data. In order to
collect reliable and valid information, the researcher, go to the market place and collect data
from different user of student. The method used in collecting the primary data was
questionnaire.

 Questionnaires:
The purpose of using questionnaire was to identify and assess the affect the consumer
behaviour. A set of questionnaire was prepared with open - ended questions.

 Secondary Sources:
The study also made use of secondary data in collecting information. The sources of the
secondary data include books, internet search, articles, and journals among others. This
helped to identify how others have defined and measured key concepts, the data sources that
of others used and this helped to discover how this research project is related to other studies.

 Data Collection Instrument:

The researcher used questionnaire. The researcher prepared the questionnaires to be
responded by the consumers. The questions were designed to make the purpose of the study
successful after the results have been ascertained. This instrument gave expected information
about the consumer behaviour.

 Data Analysis:
The collected data were statistically analyzed, using the pie-chart and tables. Representations
like tables and charts were used to ensure easy and quick interpretation of data. Responses
were expressed in percentages. Data from the completed questionnaire were checked for
consistency. The items were grouped based on the responses given by the respondent. This
method was used because it is the best instrument to identify, compare, describe and reach a
conclusion.

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 Sampling Design

 SOURCES FOR DATA COLLECTION:

(a) Primary Data Collection Sources:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic and

structured manner of collecting data for conducting experiment. The nature of the
questionnaire is very inductive and fundamental. It has been kept in a proper framework to
make it clear to the retailers.

Primary data can be collected in five main ways:

I) Observation

ii) Focus groups

iii) Surveys

iv) Behavioural data

v) Experiments

Among these, ‘survey method’ was selected to collect the primary data. 100 user were visited
& collected the required data relevant to this project.

(b) Secondary Data Collection Sources:

Secondary sources

Information was collected from secondary sources such as customer survey, newspapers
advertisements, newsletters, etc.

Beside these the use of Internet was also made in collecting relevant information. The data
collected from the above mentioned sources has been adequately structured and used at
appropriate places in the report. The information gathered included:

• Their annual reports.

• Pamphlets.

• Newsletters.

• Pictures.

• Exchange schemes.

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 UNIVERSE/POPULATION:

Univariate analysis is the simplest form of quantitative (statistical) analysis. The

analysis is carried out with the description of a single variable in terms of the applicable unit
of analysis. For example, if the variable "age" was the subject of the analysis, the researcher
would look at how many subjects fall into given age attribute categories.
Univariate analysis contrasts with bivariate analysis – the analysis of two variables
simultaneously – or multivariate analysis – the analysis of multiple variables simultaneous.
Univariate analysis is commonly used in the first, descriptive stages of research, before being
supplemented by more advanced, inferential bivariate or multivariate analysis.

 SAMPLE SIZE

It is the process of selecting representative subset of a total population for obtaining data for
the study of the whole population the subset is known as sample. The sample size is selected
for the study 100 user. The techniques of sampling unit in this study are convenience
sampling.

 Sampling Technique

Sampling techniques can be broadly classified in to two types:

Probability Sampling (here the every item in the universe have the equal chance of
inclusion in the sample)

Non Probability Sampling (Here the item in the sample are deliberately selected by
the researcher)
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.

 Tools Used for Data Analysis

bar chart (Bar charts will be used for comparing two or more values that will be taken
over time or on different conditions, usually on small data set)
Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or
frequencies)

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ANALYSIS OF DATA

 DATA COLLECTION

This chapter deals with the methodology adopted in conducting the study. The
chapter is organized as follows; research design, sources of data, population and
sampling, research instrument (data collection technique), administration of
instrument and analysis of data.

The project is a systematic presentation consisting of the enunciated problem,

formulated hypothesis, collected facts of data, analyzed facts and proposed
conclusions in form of recommendations. The data has been collected from both
the sources primary and secondary sources.

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LIMITATION

 LIMITATIONS OF THE STUDY

As has been mentioned above no study or project is error free neither is it limited by some
constraints. Following are some of the limitations observed while conducting the project of
education:

While observing the internal environment at the education, it was felt that the
coordination among various teams and departments was very poor
 No clear cut strategy to approach companies
 There was a conflict between the sectors given for mapping and what actually was
mapped
 A lot of companies were avoided even though there was potential to grow due to their
current size
 The client database prepared in the education was not accessible to all the managers
of the organization, thus creating a lot of confusion and leading to overlapping of
work
 The education products were not explained in detail and only a brief overview was
given due to paucity of time
However, these limitations were not very huge roadblocks and hence could be worked upon.
The minimization of limitations can make this project an even better success.

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RETAIL E-COMMERCE
 RETAIL E-COMMERCE
India remains an underdeveloped retail ecommerce market, with digital commerce
accounting for only a small piece of the country’s total retail sales. However, strong growth is
expected over the coming years as increasing numbers of consumers go online for the first
time, largely through smartphones, as explored in a new marketer report.

E-Marketer estimates retail ecommerce sales in India will reach $23.39 billion (INR1.500
trillion) this year, an increase of 75.8% over 2015. The forecast period will see strong growth
over the next few years, with sales hitting $79.41 billion (INR5.092 trillion) in 2020.

Despite the strong growth rate, retail ecommerce will account for just 2.5% of total retail
sales in 2016 and 5.0% by 2020. That puts India well behind China, where retail ecommerce
will constitute 18.4% of total sales in 2016. eMarketer expects the annual growth rate of total
retail sales will easily remain in the double digits between 2016 and 2020.

While Western markets, along with China, have seen slowdowns in their economies, India is
expected to experience healthy GDP growth due in part to infrastructure investment and
ongoing economic reforms. In addition, India has a massive population with a relatively
young median age. As this cohort joins the labor force, they will also add to the country’s
new, expanding consumer class.

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India differs from most developed markets, where consumers are making the shift from
desktop to mobile for shopping online; those in the country instead have skipped the desktop
phase altogether. They are increasingly accessing the web for the first time via smartphone,
and therefore have shown a willingness to make purchases on their mobile devices.

India’s status as a mobile-first market is reflected in its retail ecommerce figures. EMarketer
estimates that retail ecommerce sales will total $15.27 billion (INR979.16 billion) this year,
up 96.3% from 2015. Growth will be markedly high throughout the forecast period, declining
to a still-impressive 25.7% by 2020 when ecommerce sales will hit $63.53 billion (INR4.073
trillion).

Mobile’s share of ecommerce will continue to grow over the new few years, accounting for
65.3% of all retail ecommerce this year and 80.0% in 2020. The implementation of robust 4G
networks by mobile carriers (which is already underway) will drive increasing digital
purchases made via smartphone. In addition, the declining costs of 4G devices and service
plans will make it much easier for consumers to research, browse and buy on smartphones.

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The number of digital shoppers those who browse or research products online but who
haven’t necessarily completed a transaction will also see their ranks grow over the coming
years. E-Marketer estimates that digital shoppers in India will total 159.6 million in 2016, a
figure equal to 53.6% of internet users. By 2020, more than three-quarters of internet users,
or 352.0 million people, will be digital shoppers.

The number of digital buyers those who complete a transaction digitally will also see a strong
increase over the forecast period. In 2016, 130.4 million people in India will make at least
one purchase digitally, which is equivalent to 43.8% of internet users. Digital buyers will
number 329.1 million by 2020, when 70.7% of internet users will have made a purchase
online.

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LITERATURE REVIEW

Review of research report is done to what research works have already been done on this and
related topics or fields, the methodology adopted by them, the findings and conclusions, the
listed scope for further research and so on. Below an attempt is made to review the available
literature related to the topic of this research.
According to Monsuwe, Delleart and Ruyter (2005) there are five external factors to
understand consumer's intention to purchase in the internet which is the consumer
personality, situational factors, product characteristics, previous Online Shopping experiences
and the trust in online shopping. Consumer's trait includes their demographic factors such as
age, income, gender and educational level will lead them to have the intention to shop online
.Situational factors will also lead a consumer to have the intention to shop in the internet such
as time pressure, lack of mobility, geographical distance, need for special items and
attractiveness of alternatives .
Ekeldo and Sivakumar (2007) This research has two major purposes: developing and
testing a resource‐based framework for entry mode choice and ascertaining the extent to
which the determinants of foreign market entry mode choice in the manufacturing sector
apply to foreign market entry mode choice in the non‐separable service sector The
managerial and research implications of the findings are delineated and directions for future
research are offered.
Kim, Lee, and Kim. (2008). In their study on “Factors Affecting Online Search Intension
and Online Purchase Intention” focused on various factors affecting online search intention,
which has been found to be a key predictor of online purchase intention. They concluded that
the utilitarian value of internet information search, hedonic value of internet information
search, perceived benefits of internet shopping, and internet purchase predicted online search
intention quite well. The findings also showed that online search intention positively affect
online purchase intention. The greater the benefits of Internet shopping as perceived by the
consumers, the greater is the intention to use the internet for information search.
Vijayasarathy (2011) examining the relationship between shopping orientation, product
types, and consumer intentions to use the internet for shopping. Irrespective of the product
type, the consumers with home and economic International Conference on "Research avenues
in Social Science” shopping orientations could be expected to use Online Shopping more
than those with local orientations. Moreover, consumer would be more inclined to use the
internet to shop for intangible than tangible products. He also concluded that age, gender, and
income have an influence on Online Shopping orientations, specifically; younger males with
higher household income would be more likely to engage in Internet shopping.
Sita Mishra (2013) Study examines “Consumers Attitude towards Online Shopping for
clothing” examines the demographic characteristics of online consumers and their attitude
towards Online Shopping behavior for clothing. This study is based on a sample of 200
internet users in NCR Delhi. The findings show that consumers have positive attitude towards
Online Shopping but low attitude towards online purchase of clothes. The analysis shows that
city and sex do not affect consumers’ attitude but age and income indicates a significant
association. The issue of trust enjoys ability and trial policy seems to be major concerns for

23
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the consumers but convenience and technological advancement play a major role in online
shopping.
• Bhatnagar et al. (2014) Suggest that shopping online is perceived to be quite risky.
Perceived risk includes fear of technology use and information overload, feeling of
uncertainty and confusion, feeling of insecurity when engaging in online transactions (e.g.
credit card fraud). Because technology for secure transactions (e.g. online payment) is not yet
mature, security and privacy are major issues that should be addressed satisfactorily in this
medium.
• Song and Zahedi (2015) classify website quality elements into five categories according to
their purpose: for promotion, service, informational influence, self-efficacy, and resources
facilitation. These investigators find that each of the five significantly and positively
reinforces the consumers. Perceptions in these factors, which in turn positively influence
consumer Online Shopping attitudes and behaviour.

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ANALYSIS AND INTERPRETATION OF DATA

 DATA ANALYSIS & INTERPRETATIONS

Gender

Male Female Total

29 21 50

42%

58% Male
Female

Interpretation: The above diagram depicts that out of the total 50 respondent 42% of the
respondent were female as the objective was to study the consumer behavior with respect
to online grocery, as grocery is more shopped by female respondent.

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 Age Brackets

Age
18- 25-
24 30 30 & Above Total

23 19 8 50

25 23

20 19

15

10 8

0
24 30 30 & Above
18- 25-

Interpretation: The above diagram depicts that out of the total 50 respondent 42% of the
respondent were female as the objective was to study the consumer behavior with respect
to online grocery, as grocery is more shopped by female respondent.
The 38 % of the respondent were among 30 & above age bracket as
these respondents are well educated and web savvy.
another 46 % of the respondent were ranging from 18-24 age bracket and the
remaining 16 % were respondent were ranging from 25-30 age bracket, as
these respondents are ready to adapt changes.

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 Occupation

Occupation
Service Business Total

31 19 50

38%

Service
62%
Business

Interpretation:
For the research to be successful most of the respondent are working officials who
are educated and web savvy

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 Annual Income Level

Annual Income Level

1-5 Lakhs 5-10 Lakhs 10 &above

76 82 42

6%

46%
1-5 Lakhs
48% 5-10 Lakhs
10 & above

Interpretation:
From the above pie chart we can determine that 48 % of the respondent have around5-10
lakhs of annual income which indicates majority of the respondent have spending power to
purchase grocery items.

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DATA ANALYSIS
AND
INTERPRETATION

Q.1.Which item you shop online?

Apparels Books Electronic Food Games Music Other

12 7 14 4 8 3 2

16

14

12

10

0
Apparels Books Electronic Food Games Music Other

Interpretation:
The above diagram depicts that electronic has the highest number transaction in
online shopping.
Apparels is the second most item sold in the online shopping, along with
electronics appliances like hair dryer, mobile appliances, computer peripherals
etc.
The other items that are sold in the Online Shopping are the apparels which are
more preferred by the female respondent.
Games are the items that are proffered with the respondent ranging the age
bracket between

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Q.2.How much money do you spent in online shopping?

100-500 500-1000 1000-5000 5000 & above

12 17 9 12

18
16
14
12
10
8
6
4
2
0
100-500 500-1000 1000-5000 5000 & above

Interpretation:
The money spend in Online Shopping is ranging from INR 1000-5000,which
indicates the users are willing to pay more price when there is premium
quality products such as electronics, branded apparels, original music etc.

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 `

Q.3. When do you feel the need to shop online?

Percentage

When I need home delivery 17%

When I want Something Unique& 12%

Special

When I need to compare prices 6%

When I don’t have the time to find things 10%

in different markets

Other 5%

18
16
14
12
10
8 17
6 12
10
4
6 5
2
0
When I need When I want When I need to When I don’t have other
home delivery Something compare prices the time to find
Uniques & Special things in different
markets

Interpretation:
from the above we can depict the factor which motivates the respondent to
shop online is when they need home delivery.
The other factor which motivates to shop online when they compare prices
of different products at as am place.
above graph also determines that people shop online when they don’t have the
time to find things in the market for the product to be purchased.
Also respondent shop online when they want some unique & special product
which they cannot find in the offline market.

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Q.4. What features in Online Shopping website attracts you?

Design of website Discounts Advertisement Variety Value of

offered money

13 12 16 6 3

18
16
14
12
10
8 16
6 13 12
4
6
2 3
0
Design of website Discounts offered Advertisement Variety Value of money

Interpretation:
From the above diagram we can determine that people prefer Online Shopping
when discounts offered are offered to them.
Also the variety of product offering o the customer also forms an important
factor which motivates the respondent to shop online.
The other factor that motivates the user to shop online is when the product
they purchase is of value of money. Also the design of website along with
the different advertisement promotion motivates the user to shop online.

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 `

Q.5. While shopping what affects your satisfaction the most?

Very Important Somewhat Important Not Important

Website User 23 17 4
Friendly

Cash on delivery 27 29 3

Credit/Debit Card 22 22 3
payment

Offers & Discounts 21 19 1

Free Shipping 29 12 2

29 29
27
30 23
17 2222 2119
25
20 12
15
10
5 Very Important
0
Somewhat Important
Not Important

Interpretation:
The above diagram depicts that website user friendliness forms an important factor when
it comes to online shopping, more the website user friendliness will determine more
number of visits on a website which will in turn results an increase in the sale truncations
for the particular shopping site.

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Cash on delivery forms an important aspect of the Online Shopping websitein

Indian Online Shopping market, the above graph depicts that it does forms an most
important part on the online shopping.
The other mode of payment gate way through net banking and credit/debit
banking also forms an important part of the Online Shopping website.
When it comes to tracking of items service in Online Shopping most of the
respondent think that it is an important service which allows the user to track their
items in transit.
When it comes to security aspect of the web sited & password forms an important
aspect of the online transaction. The other aspect order confirmation is the like the
shopping cart where the user gets the list of items he/she is going to purchase which
avoids unnecessary purchase of the product , also forms an important part of the
Online Shopping website.
The above graph depicts that along offers & discounts, free shipping also forms as the
most important factor for the Online Shopping website, which forms a motivating
factor for the user to shop

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Q.6. What are your issues regarding online shopping?

People may select more than one checkbox, so percentages may add up to more than 100%.

No Possibility of Product highly Too much Security Physical

guarantee forgery priced clutter issue examinat
ion
12 13 11 7 5 2

14 13
12
12 11

10

8 7

6 5

4
2
2

0
No Possibility of Product Too much Security Physical
guarantee forgery highly priced clutter issue examination

Interpretation:
The other factor which demotivates the user to shop online is the security
issue, which consists of issues like phishing, hacking of accounts etc.

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 `

Q7.Where do you shop for your product?

Local Kirana Ration Shop Sabzi Mandi Supermarkets

22 7 14 14

25

20

15

22
10

14 14
5
7

0
Local Kirana Ration Shop Sabzi Mandi Supermarkets

Interpretation:
The above graph depicts that most of the respondents shop from supermarket
for grocery items. The reason for shopping from the particular shopping centre
can be depicted below.

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 `

Q.8. If given an option to buy grocery online will you buy online?

Yes No Maybe

17 22 11

22%
34%

Yes
No

44% Maybe

Interpretation:
The remaining percentage of the respondent may or may not buy grocery online
due the factors like physical examination and security issues.
The above graph depicts that around 34%ofrespondent are willing to buy grocery
online if the option is given.

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 `

Q.9.Do you think buying grocery online is beneficial? If yes, why do you think is
beneficial?

Yes No Total
34 16 50

32%

Yes
68% No

Interpretation:
The above diagram depicts that most of the respondent think that buying grocery
is beneficial which can be determined from the next question.
The remaining respondent thinks that online grocery shopping will be not
beneficial due the factors like forgery products, highly priced products and no
guarantee of the product.

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Q11. If yes, why do you think is beneficial?

Easy to order Variety Discount & Saves time Avoid long

Offers queues
17 12 13 5 3

18
16
14
12
10
8 17
6 12 13
4
2 5
3
0
Easy to order Variety Discount & Offers Saves time Avoid long
queues

Interpretation:
The above graph depicts that user respondent think that Online Shopping will
be beneficial as it will save their time to shop for grocery items.
The next relating aspect why consumer will shop grocery online as it will allow
the user to avoid long queues resulting in reduction in time spent in shopping.
The other factors why online grocery shopping will be beneficial as it will allow
the user to shop all the grocery at a particular place with discounts and offers.

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 `

12. Which type of products you purchase from Online Shopping?

Particulars Number of Respondent Percentage

Skin care products 32 32%

Beauty care products 35 35%

Home care products 13 13%

Food beverages 5 5%

Other products 15 15%

TOTAL 100 100%

35%
35% 32%

30%
25%
20%
15%
13%
15% Series1
10%
5%
5%
0%
Skin care Beauty Home Food Other
products care care beverages products
products products

Interpretation:

The above graph reveals that 35% customer purchase Beauty care products from Online 32%
customer purchase Skin care products from Online Shopping Company , 13% customer
purchase Home care products from Online Shopping Company, 15% customer purchase
Other products from ONLINE SHOPPING Company

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13. How do you feel the purchasing environment in ONLINE SHOPPING Company?

Particulars Number of Respondent Percentage

Excellent 10 10%

Good 22 22%

Poor 50 50%

Very Poor 18 18%

TOTAL 100 100%

18% 10%

22%
Excellent
Good
Poor
50% Very Poor

Interpretation:

The above graph reveals that 22% feel good for purchasing environment in ONLINE
SHOPPING Company, 10% feel Excellent for purchasing environment in ONLINE
SHOPPING Company, 18% feel very poor for purchasing environment in ONLINE
SHOPPING Company, 50% feel poor for purchasing environment in ONLINE SHOPPING
Company,

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14. Are you satisfied with to join current ONLINE SHOPPING Company?

Particulars Number of Respondent Percentage

Yes 25 25%

No 70 70%

Can’t Say 5 5%

TOTAL 100 100%

5%
25%

Yes
No
70% Can’t Say

Interpretation:

The above graph reveals that 70% user does not satisfied with to join current ONLINE
SHOPPING Company, 25% user satisfied with to join current ONLINE SHOPPING
Company.

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15. Online Shopping Company have Good Quality?

Table No. 15

Particulars Number of Respondent Percentage

Strongly agree 16 16%

Agree 14 14%

Neither agree 55 55%

Disagree 15 15%

TOTAL 100 100%

Graph No. 15

60% 55%

50%

40%

30% Series1
16% 14% 15%
20%

10%

0%
Strongly Agree Neither Disagree
agree agree

Interpretation:

The above graph reveals that good perception comes from 16%, 16% have Strongly agree
perception about the Online Shopping Company and rest by 14% have agree, 15% have
Disagree.

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FINDINGS

online shopping.

online.
tation of the company is very important while
making purchase decision through online.

proper description about their product.

re said that security is very important while purchase
the product through online.

anywhere.

traditional shopping.

From the data collected above we can observe that there is an increase in the number of
respondent in Online Shopping as there is awareness about this concept in the market.
Certain parameters which motivates the user to shop online are:
er friendliness of the website.
ounts and offers, offered by the website.
ash on delivery form an important gateway in online transaction.
Free shipping is the most important factor which motivates the user to shop online.
Physical examination is the important issues in the Online Shopping
which determines the tangibility of the product.
The data depicts that supermarket are the preferred shopping destination as it
offers all the basic aspect of the Online Shopping which are price, quality variety,
proximity to home, offers & discounts.
From the above data collection we can determine most of respondent agree to
buy grocery online if the option is give.

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CONCLUSION
This study investigates the determinants that are responsible for choosing of the online
purchasing portals by the consumers whenever they decide for purchasing products.
Furthermore, the study was taken ahead with the conclusions drawn from the empirical
survey and developing innovations important for the online purchasing portals. The empirical
results show that consumers preferred to accept on line purchasing portals for their purchases
whenever they perceived that the determinants like product preference through the respective
purchasing portals, variety options available in the portals and convenience of Online
Shopping and in accordance to their preferences. This research shows that Online Shopping is
having very bright future in India. Perception towards Online Shopping is getting better in
India. With the use of internet, consumers can shop anywhere, anything and anytime with
easy and safe payment options. Consumers can do comparison shopping between products, as
well as, online stores.

From the above data analysis it can be conclude that consumer buys goods from
the Online Shopping website on the basis of factors like offers and discounts,
variety of product available, free home delivery, website user friendliness and
cash of delivery payment option.
hypothesis framed for the project Consumer Perception towards Online Grocery
Shopping was “Online grocery shopping stores are beneficial for the consumer”.
From the above data analysis it can be determined that most of the respondent
would agree to buy grocery online rather than shopping of grocery with the
traditional method.
Out of the agreed respondent to buy online grocery, most of their spondent
would think that it would be beneficial to shop grocery online on the basis of
factors like easy to order, variety, discounts/ offers, saves time and avoid long
queues.
With above analysis we can thus prove the hypothesis to be positive.
The recommended business operation will not only beneficial for the consumer
but also to the firm, as it allows the firm to maintain its low operating expenses
and for the consumer.

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RECOMMENDATION

following while online shopping.

safe and proper security should be assured to the people making

online purchases.

-marketers must give a thought to secure, time saving, information about product and
services factors when they design their online product strategy.

experience and clarity are the important factors considered by the online shopper.

intention to secure for product related information while experiencing the new technology.

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BIBLIOGRAPHY
 https://www.questia.com/library/journal/1P3-3333088491/a-study-on-online-
shopping-experience-and-customer

 http://search.proquest.com/openview/7623aa0cfaaa390a1866015e0da0a0a0/1?pq-
origsite=gscholar&cbl=1936345

 https://issuu.com/sanjaykumarguptaa/docs/a_study_on_consumer_perception_towa

 http://ijariie.com/AdminUploadPdf/A_STUDY_ON_CONSUMERS%E2%80%99_A
TTITUDE_TOWARDS_ONLINE_SHOPPING_c_1229.pdf

 https://www.ripublication.com/gjmmr16/gjmmrv6n1_01.pdf

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QUESTIONNAIRE

APPENDICES
Name : …………………………………………………………………………
Age : …………………………………………………………………………..
Contact No. ……………………………………………………………………
Address : ………………………………………………………………………
…………………………………………………………....................................
………………………………………………………………………………….
 Male
 Female

Age:-
 18-24
 25-30
 30 and above

Occupation:-
 Student
 Service
 Business
Income Level:-
 1 lakh – 5 lakhs
 5 lakhs – 10 lakhs
 10 lakhs and above

Q1. Which item you shop online?

 Apparels
 Books
 Electronics
 Food
 Games
 Music
 Any other (Please specify)

Q2. How much money do you spent in online shopping? (Rupees)

 100 – 500
 500 – 1000
 1000 – 5000
 5000 & above

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Q3. When do you feel the need to shop online?

 When I need home delivery
 When I want something unique and special
 When I need to compare prices
 When I don’t have the time to find things by different markets
 Any other (Please specify)

Q4. What features in Online Shopping website attracts you?

 The design of a website
 Discounts offered
 Advertisement
 Variety
 Value for money
 Any other (Please specify)

Q5. While shopping what affects your satisfaction the most?

 Website User Friendly
 Cash on delivery
 Credit/Debit Card payment
 Offers & Discounts
 Free Shipping

Q6. What are your issues regarding online shopping?

 No guarantee
 Possibility of forgery
 Product highly priced
 Too much clutter
 Security issue
 Physical examination
 Any other (Please specify)

Q7. Where do you shop for items?

 Local Kirana
 Ration Shop
 SabziMandi
 Supermarkets

Q9. If given an option to buy online will you buy online?

 Yes
 No
 May be

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Q10. Do you think buying grocery online is beneficial?

 Yes
 No

Q11.Ifyes, why do you think is beneficial?

 Easy to order
 Variety at one shop
 Discounts & offers
 Saves time
 Avoid long queues
 Any other (Please specify)

Q12. Which type of products you purchase from Online Company?

a) Skin Care Products b) Beauty Care Products

c) Home care products d) food beverages

e) Other products

Q13. How do you feel the purchasing environment in Online Company?

a) Excellent b) Good

c) Poor d) Very poor

Q14. Are you satisfied with to join current Online Company?

a) Yes b) No c) Can’t Say

Q15. Online Company have Good Quality?

a) Strongly agree b) Agree

c) Neither agree d) Disagree

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