Page |1

COMPARATIVE STUDY ON TRADITIONAL AND ONLINE

SHOPPING

DATE OF SUBMISSION: 24.03.2023

SUBJECT: FUNDAMENTALS OF MARKETING MANAGEMENT
FACULTY NAME: PROF. SUNIL KUMAR.L
SUBJECT CODE: NLAW 1053
BATCH: 2022-2027

BY
NANDHINIBALA.P(033)
SINDHU.J[128]
PRACHI KUMARI [132]
SANJANA [014]
MAHAK MISHRA [067]
 Page |2

ABSTRACT
A high level of dynamism characterizes this business age. The idea of competitive
advantage is becoming more and more elusive as a result of technological development.
Online shopping is becoming more and more popular. Now-a-days. The majority of
individuals like purchasing items. In terms of the growing trend of online buying, India is
in third place behind China. We were interested in the topic as a result of this growing trend.
The main goal of our research is to identify the factors that lead consumers to shop online,
identify the shortcomings in traditional shopping practices that cause consumers to prefer
online shopping, and discuss the nature of online shopping, its issues, and potential solutions
to make it a great success. About all of the 50 respondents who completed questionnaires
for the primary data had at least some experience with online purchasing. Students,
professionals in the workforce, and members of business classes provide the data. Responses
to questionnaires are requested for a range of variables, including time and money savings,
a wide selection of products, and a 24-hour shopping facility. Customers are drawn to online
shopping by attractive presents and discounts, but other issues prove to be barriers, such as
delivery delays, a lack of adequate product information, and a loss of privacy. Despite all of
these factors, online shopping is growing significantly and is predicted to continue to grow
in the coming years.
 Page |3

TABLE OF CONTENTS

1) Introduction…………………………………………………………………

1.1) Research problem………………………………………………………….

1.2)Research objective………………………………………………………..

2) Online Shopping…………………………………………………………….

3) Traditional shopping………………………………………………………

4) Growth Of E-Commerce……………………………………………………..

5) E-Shopping In India……………………………………………………………

6) Business Model………………………………………………………………..

7) Challenges………………………………………………………………………

8) Measure Of E-Commerce Awareness………………………………………….

9) Conclusion……………………………………………………………………..
 Page |4

1. INTRODUCTION

Life includes shopping every day. While some people only purchase necessities when they
shop, others purchase more. It is seen as a technique to relieve tension and a way to fulfill a
personal goal. a way to spice up the mechanical way of life, or both. One of the oldest
expressions used to describe what we have all been doing over the years is certainly
"shopping." But, back then, words like "trade," "bartering," and possibly even "market" would
have been used. So, what does conventional shopping have to offer now that the internet has
made the industry more appealing to the present consumers and wider? Online and traditional
shopping are the two main categories of shopping. Each of them has advantages and
disadvantages. Nowadays, more and more individuals "go shopping" online, in part due to
the widespread use of computers. Thousands of items can be selected from the screen by
simply clicking one word. There's no need to push through bustling crowds and traverse a
wide street to buy a pair of expensive shoes. Just choose your option and click on the
keyboard, and the items will be delivered immediately. The 21st century has seen an increase
in the prevalence of online buying. Convenience is widely regarded in our society today,
which is why it has gained popularity. Online shopping allows you to get everything and
everything you require while waiting for a flight or getting ready for bed.

1.1 RESEARCH PROBLEM

This era of business is marketed with a high degree of dynamism due to technological
advancement, and the concept of competitive advantage is eluding day by day. Shopping at
the click of a mouse is gaining popularity nowadays. Most people prefer to buy products
online. India ranks third after China in terms of increasing online shopping trends.

1.2 RESEARCH OBJECTIVE

A. To learn about consumer behavior.

B. To study the growth of E-commerce.
C. To understand the concept of E-shopping and traditional shopping.
 Page |5

2. ONLINE SHOPPING

Online shopping, sometimes known as e-shopping, is a type of electronic commerce that

enables customers to make direct purchases from sellers using a computer browser and the
internet. Other titles include "e-web-store," "e-shop," "web-shop," "web-store," "online sort,"
and "virtual." To put it simply, it refers to any type of online selling. Since the advent of the
internet, shopping has undoubtedly taken on a new meaning. Due to what the internet has to
offer, anyone or any organization from anywhere in the world that can post and sell products
online via a website can sell. Also, since there are numerous payment options available to
consumers in addition to online banking, they do not need to worry about having to find a way
to swap money paper. These days, a consumer may quickly type in the product or item they
are seeking, making it even simpler to find the toughest of all things. There is no need to worry
about the location because logistic businesses are, so to say, hopping on the bandwagon and
assisting in ensuring that their items will be accessible to any place worldwide. Online buying
is becoming more and more popular as a result of its many advantages and benefits over more
conventional methods of shopping.

3. TRADITIONAL SHOPPING

The advantages of conventional shopping include having the chance to physically select and
examine what a thing or product is like, would seem like, and its qualities. This is why some
customers continue to favor traditional over online buying since, among other things, it allows
them to thoroughly inspect a product. Because buyers and sellers do not physically interact
when purchasing online, there is a lack of product knowledge. Although visiting the online
store, the buyer does not appear interested in buying the product for a variety of reasons,
including Lack of confidence, lack of physical contact, security concerns, etc.
However, despite studies and surveys, as well as many online consumers , who have described
the many benefits and advantages of online shopping, there are still traditional shoppers who
like to examine the goods they are interested in purchasing.
 Page |6

4. GROWTH OF E-COMMERCE

E-commerce presents a lot of opportunities for emerging nations like India. Even the most
pessimistic estimates for India's e-commerce industry indicate a surge. An expanding installed
base of Internet users, a low price for personal computers. The expansion of e-commerce in the
second-most populous country in Asia will be aided by the increasingly competitive Internet
Service Provider (ISP) sector. The 288 million-strong middle class in India is larger than the
whole American consumer base. India becomes a very appealing market for e-commerce. Both
the payment and delivery services must be optimized for an effective online transaction. In
recent years, an increasing number of businesses have started using e-commerce. Many Indian
portal websites have also switched from relying on advertising revenue to e-commerce. Today,
a wide variety of goods and services are available on numerous websites, including groceries,
electronics, computers, greeting cards, flowers, and movie tickets. Once the stock exchanges
are operational, India may engage in true e-commerce.

5. E-SHOPPING IN INDIA

The ever-increasing balance sheets of the major businesses and the mushrooming of new
online retail portals every few weeks are evidence that online retail in India has been
developing dramatically over the past few years. India is one of the nations in the world
that is developing the fastest. Moreover, India's E-Commerce retail industry is expanding
quickly. The most recent technologies have made internet shopping easier and more
convenient than ever. Many businesses have launched online stores in recent years, and they
have built solid reputations in the online marketplace. Numerous well-known, large retailers
have quickly produced the best.

6. BUSINESS MODEL

A financial transaction or online sale between a business and a consumer is referred to as

B2C. B2C refers to the exchange of goods or services between a business and a customer, in
which retailers sell goods to customers. This approach is incredibly powerful and can be used
to its fullest potential to draw in potential clients. There isn't a middleman in this transaction.
 Page |7

The maker and the buyer are the parties to this transaction. Due to this, the products are real
and you can get the same advantages the manufacturer does for other customers. As always,
we are focused on the customer-centric market, so here we will study some of the elements
that draw clients who prefer online purchasing. The data provided above is sufficient to
motivate both buyers and sellers who are eager to utilize the internet as a source of their
commerce.

A. Convenience Factor:
Internet retailers are working to increase the level of convenience,
which will encourage customers to use this channel. Also, since more people have access
to the internet 24/7 with no time restrictions, online retailing has increased. All you need is
an internet connection and the money in your wallet to pay for the purchase, and everything
will be delivered to your door.

B. Payment Mode:
In contrast to former times when we had to pay upfront and wait weeks for
our orders, we now place the order first and pay when the goods are delivered. Debit card
payments, credit card payments, and cash-on-delivery payments, among others, are
introduced in addition to liquid cash payments.

C. Delivery:
DVDs, CDs, Eyeglasses, books, and other generic products are sent to customers
in 2 to 3 working days, while goods that need to be made, such as specific print sarees and
custom bags, are provided in 5 to 6 working days. Also, a single unit of any product
selected by the buyer may be supplied from a different nation, which may not be able to
import in the case of a physical transaction.

D. Product Comparison:
Without moving from one shop to another to compare the benefits
of the product, the shopper gets the benefit of comparing the features and cost analysis in
one place.
 Page |8

E. Cost and Time Saving:

Online purchasing allows for significant time and cost savings for
the consumer. The average person's life has accelerated significantly in major cities as well
as in smaller communities that are expanding quickly. After their regular office hours, they
hardly have any time left to visit the market and buy even the bare necessities.

F. Extensive Product Mix Availability:

Internet buying offers more alternatives than traditional
shopping, which focuses on finding and choosing products and goods that are nearby. There
may be a specific item that is exclusive to the mall-based variants of the business. This is so
that store owners may decide what products to stock in their physical stores, which often
offer a small selection of goods. They have a limited capacity and frequently have numerous
rules that impact the products' accessibility. Demand in the local market, previous
purchasing successes and failures, and shelf-space restrictions all have an impact on these
choices.

G. Fewer traps:
Physical businesses are designed to entice customers to purchase more items.
They employ posters, sales slogans, colors, and product placement to encourage people to
buy more things. Because the owner wants to see all of the things, the most popular items
are usually found in the rear. By the time they get to the thing they came in for, many folks
will have discovered a few extra things. When it comes to internet stores, these strategies
are less obvious. The consumer is not under any obligation to purchase more items.

H. Discreet Shopping:

Some products are frequently difficult to purchase in physical stores. For

instance, purchasing underwear without drawing a few uncomfortable looks is practically
hard. There are many instances of this, and occasionally you could feel ashamed without any
justification. Because no one will be watching you when you purchase online, you'll have
more privacy. Also, most receipts are designed to prevent anyone from deducing what you
purchased. Factors that cause a buyer to make an online purchase.
 Page |9

7. CHALLENGES

Due to widespread internet use and advanced electronic gadgets, India's e-commerce market
is expanding at an impressive rate. Yet, compared to other industrialized nations, the current
growth rate of e-commerce has lagged significantly. A large number of significant issues and
difficulties lie in an online retailer's path. The smooth growth of the nation's online business
has been constrained by factors, the biggest of which is the safety and security of online money
transactions.
Many e-commerce sites might significantly improve their click-to-sale ratio if they
simplify the browsing process. The ability to present products to customers in a way that they
"feel like buying" rather than feeling like the website is "trying to sell" is one of the main
hurdles. The majority of online retailers need registration before allowing customers to access
the website. It's the same as covering a showroom's windows and demanding personal
information from anyone who wants to just look through the windows.
Even if online shopping offers excellent opportunities for finding great deals and purchasing
goods at rock-bottom prices, not all Indian shoppers are accustomed to it. This is primarily
because Indian customers receive no meaningful benefit or motivation from this trend. Also,
they are concerned about delivery, customer service, and fraud, which is not far from reality.
Here are a few of the difficulties faced by online shoppers.

A. Slow change in buying behavior:

Indians continue to be hesitant to make online
purchases and favor brick-and-mortar stores. Indians still enjoy handling products and
taking their time when making purchases.

B. Inability of online retail players to sway customers from offline mode to

online retail channel:
Ineffective use of all available online tools, such as search engines,
paid marketing, online ads, social networking, blogs, etc. to reach customers. Absence of
efficient marketing and advertising. Internet businesses inability to communicate the
benefits that customers can receive from shopping through online channels.

C. Online portals are not up to the mark:

Existing online websites have some flaws, such as
poor front ends, poor website search choices, inadequate product and terms, and conditions
information, slow websites, etc.
 P a g e | 10

D. Lack of seriousness:

Many online portals with the support of significant retail distributors have appeared in
India, but many of them appear to have existed only once. Since then, there hasn't been
enough enthusiasm to promote the portals' name and services among prospective
customers.

E. Issues concerning security and transaction fraud:

In addition, not all online payment methods are supported by all web portals. High rates
of rejected payments are frequently a deterrent for customers to return to the portal.

F. Competitors are just a click away:

There are various alternatives accessible to customers when they search, and many people
utilize search to traverse the Web rather than typing in or bookmarking specific websites.

G. Visitors can disappear in 15 seconds or less:

Internet shoppers have specific shopping objectives. They will leave your website or
landing page in less than 15 seconds if they can't locate what they're looking for right
away.

H. Visitors can disappear in 15 seconds or less:

Internet shoppers have specific shopping objectives. They will leave your website or
landing page in less than 15 seconds if they can't locate what they're looking for right
away.

I. Shopping is a multi-step process:

Internet shoppers enjoy looking around. Many people invest considerable time visiting
numerous websites only to acquire information. Before clicking the "purchase now"
button, they could also compare the services provided by several rivals.

J. Time between the initial visit and purchase has increased:

The interval between the first visit and the transaction has grown. More strapped-for-cash
individuals would put off purchases longer.

K. Customers wait for merchants' best offer:

Having been seduced during the holiday season with free shipping and handling and other
price-driven offers, consumers have been trained to wait for a special deal.
 P a g e | 11

L. Shipping Costs/ Returns Can Be Costly:

Any e-commerce retailer you are thinking about doing business with should make you
aware of their return policy. Most websites don't include return postage, so it's frequently
more expensive to replace an item virtually than physically in traditional retail.

M. Spread of Internet

The lack of widespread internet access is the main obstacle to the development of online
shopping in India. Owing to the low utilization of the internet, online shopping will take
some time to become a popular method of shopping.

N. Plastic money

The consumer stays away from this current method of shopping more often since credit
cards are less common. Even if a lot of websites also accept checks, cash on delivery, and
bank demand draughts, a bigger portion of service providers still rely on this plastic
money.

8. MEASURE OF E-COMMERCE AWARENESS

Even if online shopping offers excellent opportunities for finding great deals and purchasing
goods at rock-bottom prices, not all Indian shoppers are accustomed to it.

A. E-commerce awareness

One of the biggest challenges for Online Shopping has been the skepticism surrounding
the security aspects of e-commerce, which has lowered confidence levels. The only
remedy to this is to strengthen the transaction security to gradually build up
confidence in online payment.

B. Varied payment options

To attract more and more customers' e-tailers have to increase the payment options as
there is only a small section of people in India who are having credit cards so this also
hampers some who are willing to shop online. More options like -on-delivery, money

C. Awareness regarding security measure

Security issues continue to be a major drawback and trends like AVS (Address
Verification System), PIN for credit cards, smart cards, digital signatures, e-cards, and
easier intra- and inter-bank transactions online need to be made more prominent.
Teaching Consumers to transact only on secure internet connections is also
necessary.
 P a g e | 12

D. Make the prices more competitive.

The price offered for online shopping should be made more competitive as compared to
the prices of the goods available in the shops then only the customers will feel motivated
to buy online.

E. Stress on the special offers

Customers should be made aware of the varied sales promotion schemes, which
willmake this online buying more attractive and popular among buyers.

F. Emphasis on after-sale service

The biggest hindrance in the path of online shopping becoming more popular is the
question "who is to blame" if the product is not functioning well? Therefore, there should
be more stress on the quality of products and the durability of the products which are
offered for sale and along with that assurance for after-sales service.

9. CONCLUSION
Internet shopping has made it possible for all kinds of customers to purchase any
kind of good or service, regardless of where it is in the world. In addition, the customer can
own and buy the goods, items, or products he desires without leaving the comfort of his home
or current location. With something to offer everyone, online shopping has emerged as a
boon for all types of shoppers. Even though it is very convenient, timesaving, and to some
extent, a cost-saving activity because one does not need to leave the house to go shopping.
The biggest cause for worry is the lack of internet use and the security issue. To the extent
that this IT revolution benefits everyone in India, only then, can it be considered a success in
the truest sense of the word. Instead, it will simply become a fashion statement for a select
few people who wish to stand out from the crowd, losing its usefulness in the actual world.
The consumer still has greater freedom when purchasing the old-fashioned way because he
can personally inspect and even test out the goods he wants. Therefore, if you as a consumer
have any peculiarities, quirks, or habits, you would always be able to find the best way to do
whatever suits you in terms of both the financial aspect and the need or want aspect,
regardless of the type of shopping you choose, whether you would go for online shopping or
traditional shopping.
 P a g e | 13

REFERENCES

1. End of catalog shopping in India? Written by Amit Agarwal on January 29,

2009,http://www.labnol.org/india/corporate/end-of-catalogue-shopping-in-india/6869/
2. India and China to rule online shopping world by 2010,26/12/08, The Hindustan Times.
3. Online shopping: sales in Asia may rise 20% a year, Thu, Feb 19
2009.http://www.livemint.com/2009/02/18223749/Online-shopping-sales-in-Asia.html
4. Online Shopping India: Proving to be a Boon for I
ndia,http://www.articlesbase.com/shopping-articles/online-shopping-india-proving-to-be-a- boon-
for-India-762348.html
5. On-Line Retailing In India: Opportunities And Challenges-1manish Dwivedi, 1kumawat Mahesh
& 2verma Sanjeev I.J.E.M.S., Vol.3(3) 2012: 336-338 Issn 2229- 600x
6. http://xcluesiv.com/blog/2014/04/03/e-commerce-infographic-understanding-online-
merchants-in-Malaysia-2
7. http://www.dazeinfo.com
P a g e | 14