Professional Documents
Culture Documents
Online Shopping
Online Shopping
Online Shopping
On
Bachelor of Commerce
SUBMITTED BY
Uttamraj Dalai
Roll No: S08717COM003
Registration No: 23169/17
SESSION 2019-20
CANDIDATE’S DECLARATION
This is to certify that the report entitled “PERCEPTION OF YOUTHS’ TOWARDS ONLINE
SHOPPING” has been prepared by Uttamraj Dalai under my guidance and supervision for
partial fulfillment of the requirements for the award of the degree of Bachelor of Commerce.
While conducting this report, I got support in many ways from many people. First I am deeply
grateful to my project guide, Mr. Malaya Ranjan Rana, Department of commerce who helped
me with full devotion and always support me earnestly whenever it was needed, without his
guidance, mental and moral support and academic inputs this report was not possible.
This report could never have seen the light of the day without his co-operation of those clients
who participated in this. I am thankful to all of them for giving me their valuable time.
My friends have been biggest support for me at every juncture of life. They manifested their
great interest in my research work also and always tried to make things easy for me.
A word of gratitude goes to my family members whose love, affection and understanding have
enabled me to complete this endeavour with ease.
At the end, I thank to god giving me courage and strength to conduct this project report.
CHAPTER-1
INTRODUCTION AND LITERATURE REVIEW
1.1 Prelude:
Now a days’ due to increase in the population, more and more people are gravitating towards the
use of internet as the availability of information, accessibility of technology and the ability to
interact through the internet evolve and increase. Internet helps us in gathering information,
purchasing a product or rendering a service. These advances in technology enable the shopping
expansion options beyond the traditional methods of shopping which was more time consuming.
Today gathering information with offline shopping methods is alleviated, customers can avail
any information about a product usingof the Internet which also helps them to use their time
efficiently. Instead of physically visiting different stores to compare prices or rely on pamphlets
of newspaper, a customer can able to search and retrieve needed information through the help of
Internet.
Due to the development in the field of internet, consumers are moving out from the traditional
method of shopping. A consumer does not need to wait for the opening time of a specific
location. He can become active at any time and place and purchase products and services
according to his need. The increasing number of internet users leads to increase online shopping.
Since internet hasbecome a new medium for the demands set by the consumers, the importance
of analyzing and identifying factors that influence the consumer’s decision of buying on internet
is crucial. Internet has rapidly evolved into global phenomenon by changing the way consumers
shop and buy goods and services. With the aim of cutting marketing costs and by reducing the
price of products and services to stay ahead in competitive markets, many companies have
started using of internet service. Consumers also use internet to compare prices, features and
after sale service facilities of a product rather than buying that.
Personalities of consumers also influence their perception and buying behavior. Personalities of
consumers are further divided in to two categories i.e. Utilitarian consumers and Hedonic
consumer. Utilitarian consumers have goal-oriented shopping behavior on the other hand
hedonistconsumershave experimental shopping behavior.
In current scenario young people are the major online shoppers and thus this study finds out the
attitude of youth towards online shopping. There are several factors which influence a youth’s
purchasing decisions and buying behavior towards online shopping. According to the marketer’s
factors like product understanding, shopping experience, customer service and consumer risk
affects the purchasing behavior of youth and purchasing power. As we say that majority of youth
are online shoppers because they think online shopping is convenient and it enables them to
access more and more products and their information 24*7.
1.2 Literature Review
1.2.1 Introduction:
The following literatures are reviewed to find out research gap. Review of literature consists of
different author’s articles and thesis work. The literature related to consumer perception towards
online shopping has been taken into consideration.
Adams et.al. (2004) considered the underlying factors related to personal e- shopping in the
workplace. They provide the reasons for online shopping at work were boredom, connection
speed, convenience, work life balance, efficiency etc. Americans were fonder of shopping online
at workplace than Canadians they found in their study. The reason which they realized was faster
internet connection. They also mentioned that corporate monitoring had an average effect on e-
shopping at workplace as job satisfaction was average at the place where there was monitoring.
Monsuweet.al.(2004) found that younger consumers are more interested in using internet to
search for information as compared to older consumers. As they have less knowledge about the
internet and new technology. The bolder consumers want to try products before purchasing
which affect the purchase through internet.
Lim and Dubinsky (2004)found that online sellers should know the issues which affect the
online buyers before their online purchase which would help them to retain their customers.
Online seller can make a new and effective marketing strategy for their customers which help
them to better understand their shopping behavior. There are many options for sellers to attract
those who do not shop online so that they become more interested and become potential
customers.
Lestera&Loydet.al. (2005) found that the percentage of college-age market uses the internet is
more than 95% and among them 91% of that group complete online purchases. They are
spending more than $500 per year on internet merchandise and purchasing them with their own
credit cards. They are purchasing apparel, concert tickets, entertainment products, banking
services etc. The young adults are also buying mortgages, cars and appliances over the internet in
small quantities.
Shergill and Chen (2005), discussed the relationship between different categories of buyers and
the factors influencing the buyers’ behavior towards e- shopping. They also examined the
different perceptions of different buyers towards the e-shopping. They established website
design, reliability, customer service and security or privacy were the important factors those
influenced their purchasing behavior of different people. Different perceptions and evaluation
criteria like trial, occasional, frequent and regular online buyers, established in this type of
research.
Changchit(2006) examined the attitude of customers towards e- shopping and different factors
which were found in different manners by the e-buyers and those who were not. In this study he
found five factors which were found differently by the above mentioned two groups. Those
factors were found the risk associated with e-shopping, previous experience with e-shopping and
found the benefits, ease and uncertainty of e-shopping.
Asakawa and Okano (2007)also stated the factors which affect the customers’ perceptions
towards e-shopping and also describe how the factors influenced their perceptions. They found
those factors were convenience, poor navigation and anxiety regarding security in their research
and also found that convenience had a positive effect on e-shopping where on the other hand
anxiety regarding security and poor navigation had a negative one.
Khalifa and Liu (2007), analyzed a model named “The information systems continuance model”
in the field of e-shopping with the help of contingency theory that showed the roles of e-
shopping habits and experience and also found both of them were having positive effects, if there
was satisfaction in the e-buyers due to these factors. They analyzed that the effects of e-shopping
habit on online repurchase intention were dominated through satisfaction. Online repurchase
intention was not only a consequence of a rational analysis of satisfaction but also both habit and
experience were the factors which attracted the buyers towards online shopping.
Lai and Turban (2008)mentioned that now a day’s customers are using internet for their
purchasing of products and services. Web 2.0 technologies have made the internet more social
and also the speed of development has been increased by the customers.
Syed et.al. (2008) analyzed that there are four factors which help to influence the youths towards
e-shopping i.e.Website design, website reliability, customer service and privacy and also
discussed that there was lots of similarities among the attitudes of different groups towards e-
shopping in Malaysia. According to them trust was the most consistent factor that influence the
customer’s purchasing behavior towards e-commerce. On the other hand, e-retailers should add
trust and reliability which is very much helpful for the buyers.
Delafrooz, Paim and Khatibi(2010) in their study tried to find the factors influencing student’s
attitude towards e- shopping in Malaysia with the help of five-level Likert scale self-
administered questionnaire, that developed based on prior literature. The multiple regression
analysis validated the most significant determinants of consumer’s attitude towards e-shopping.
The consequences indicated that utilitarian orientation, price and a wider selection influenced
customer’s attitude towards e-shopping. So, e-retailers have to emphasize more user-friendly
function in order to supply utilitarian customers a way to locate the things they need efficiently.
Kim (2010) found in his study that the consumer factors, comprised of privacy, security and
faith, convenience, time saving, ease of use, enjoyment given by shopping, company goodwill
and tactility, was most important for those who intended to buy online and who purchased
online.
Kyiyci(2012) in his study of online shopping behavior of college students, tried to find out the
importance of possession, income and familiarity of credit card on e-shopping. The conclusion
found out that male students and teachers are more familiar and having more positive attitude
than female students and teachers .Teacher and students having more income and internet surfing
ability have positive attitude for online shopping on the other hand who have credit cards, have
more familiarity concerning online shopping.
Sharma &Khattri(2013) concluded that the discount websites and deals should concentrate
their marketing efforts to create trust in consumers about financial transaction. The consumers
should be provided a variety of payment options and the payment gateways should be strong
enough so that these can avoid any type of security breach.
Arghasen(2014) found that product factor, cost factor, convenience factor, seller related factors
are the four most important factors that influence the online shopping of a product.
Chatterjee and Ghosal(2014)found that in recent scenario of electronic data exchanges, India is
first adaptor of technology and adopted e-commerce. In India e-shopping provide many facilities.
In India the adoption of technology is different from other countries due to its unique social and
economic characteristics.
Khitoliya(2014) finds in her study that majorly post graduate respondents do online shopping.
The trend of both male and female respondents is quite similar in online purchasing behavior.
Most of the respondents of all age group shop online for convenience, wide variety, discount
deals and least under peer influence.
Raval(2014) stated that the demand of e-commerce in India is increasing day by day due to
increase in the use of mobile phones and desktops. It is also noticeable that the world’s leading e-
commerce companies are competing hard to capture Indian e-commerce market. The behavior of
Indian online buyers is an important factor in Indian e-commerce market. The demands of the
Indian buyers are different from other countries. In India, a buyer is always looking for a less
rate product and therefore almost one third of the total sale is made during the sales season.
The existing studies have focused on the factors behind online shopping behavior of Young
people. There are numerous nos. of studies that have been conducted in Indian context, however
in the context of state of Odisha very few studies have been conducted. As Brajarajnagar is the
one of emerging city in Western Odisha and there is huge potential for e-commerce market in
this area, so the present study emphasizes on factors affecting level of satisfaction of young
people in consumers. The study is also an attempt to delve into the impact of demographic
factors on purchase decision of buyers in case of online shopping.
1.2.4 Summary:
In this chapter, the prior literatures in the concerned field were critically reviewed. The studies
from different sub-fields in this context were reviewed. In the end, the study tried to identify the
gap in the prior studies which will be dealt with in the present study. In overall, among handful
number of studies conducted in this field, very few studies have concerned with the state Odisha.
In addition, one of emerging city Brajarajnagar in western Odisha has not able receive much
attention of the researchers. So, the present study will contribute significantly to the literature in
this area. The findings of the study have diversified implications specifically more significant
implications for the business organizations, for decision making.
CHAPTER: II
OBJECTIVE AND RESEARCH METHODOLOGY
2.1 Objectives of the study:
The present study is an attempt to explore the factors influencing purchase intention of Young
consumers in India with a special reference to Brajarajnagar, Odisha. In addition, the study also
tried to assess the level of consumer satisfaction in case of online marketing. The main objectives
of the study are as follows:
Recently India has crossed 100 million internet users out of which majorities are youngsters.
Youngsters include young men; school and college going students use more than 75% of internet
usage. At the same time the E-Commerce market is growing tremendously. Therefore, the
present study emphasizes on identifying the factors which influence online shopping behavior.
The findings of the study will be helpful for E-Commerce companies in designing their
marketing strategies. The study will reveal the satisfaction level of consumers in case of online
shopping.
H01: There is no significance association between gender of respondent and buying behavior
of the respondents
Ha1: There is a significance association between gender of respondent and buying behavior of
the respondents
H02: There is no significance association between age of the respondents and buying behavior
of the respondents
Ha2: There is a significance association between age of the respondents and buying behavior
of the respondents
H03: There is no significance association between occupation of the respondents and buying
behavior of the respondents
Ha3: There is asignificance association between occupation of the respondents and buying
behavior of the respondents
The main objective of the study is to examine the perception of consumers towards e-commerce.
The study is both descriptive and analytical in nature. The different components are explained as
following:
2.5.3 Methodology:
Initially, the data are presented with the help of diagrams and pie charts for better understanding
about perception of the respondents. Further, the data are analyzed and interpreted with the help
of statistical techniques such as Cross-tab, Chi-square test etc. The methodology decided after
taking into consideration the objectives, variables and scale of variables. The data analyzed with
the help of SPSS (statistical package for social science) Software.
This study is related to digital marketing and it will investigate the factors affecting the decision-
making process of theYouth. The scope of the study is confined to consumers between the age of
18 to 40 years. The respondents requested to fill the questionnaire asked about their perception
about different factors and this study is restricted to Brajrajnagar town of Jharsuguda district,
Odisha. This research has considered limited aspect and analyzed them to a certain degree.
This chapter includesIntroduction, Literature Review and Research Gap.This chapter focuses on
review of related literatures. The researcher tried to study the recent works in the related field
and trace out the research gap.
Objectives of the study, problems statement, and significance of the study. It also includes
research hypothesis which are outline in respect with the research objectives. In addition it also
highlights on scope of the study, research methodology and its limitation.
This chapter includes data analysis which can be presented through various bar graphs, table and
pie charts. It also covers hypothesis testing. Hypothesis has framed relating to the objectives of
research. Chi-square test has been used for a critical review of the data.
This study tells about the finding and suggestion. It aims to reflect the fact about summary of the
Findings, suggestions and conclusion drawn by this project.
CHAPTER: III
SCENARIO OFE-COMMERCEMARKET IN INDIA
3.1 E-Commerce
Electronic Commerce or e-commerce started in the decades 1960s. Electronic Data Interchange
(EDI) are used the business to share business documents with other companies. In the year 1979,
American National Standard Institutes (ANSI) developed ASC X 12 as a Universal stand for the
business sharing documents through electronic networks. Introduction of e-commerce leads to
elimination of traditional way of doing business. Information and Communication Technology
(ICT) is the pillar of e-commerce worldwide, that bring the business operation in a single floor. it
is impossible to think about e commerce without eBay and Amazon who is one of the first
internet user companies to introduce electronic transaction. E-commerce is a Technology,
suitable for Commercial activities. All the business transactions are executed through ICT that
includes any kind of business operation. E-commerce provides buying and selling of product and
services by business and consumer using internet directly.
In this type of business, a business uses internet for selling products or services directly to their
consumers. For example, we can use Amazon.com, Flipkart.com, and Groffers.com etc to buy
any product.
In this type of business, a company using internet sells their products or service to other
companies. Such transactions involve participation of businesses; as a result, there is an
increment in value and volume of B2B E-Commerce.
In this type a consumer sells his products to another consumer using internet. For example, a
consumer can sell his old bike or car or any other property to other consumer directly through the
medium of internet.
Digitization of whole country or digitalizing the India heading the business transaction move
towards e business i.e. business is done through online now. E-commerce in India ensures direct
communication between business and consumer. E-commerce obtains a wide scope for online
business to reach consumer expectation and satisfaction by providing variations in goods or
product at a time during any hours.
Increase Convenience-
Customer can order goods according to his convenience, at his home. And they get it delivered at
their home. This is the best shopping operation for those who are always busy.
While shopping online, the customer can make comparison the price of the product available on
different websites which gives him good deals on great products.
Many people have a Desire to start a business but not have enough capital to buy a shop. Lease
of physical shop will be very expensive; e-commerce makes business easy to start and grow.
Impressive-
To meet the needs of business traditional method requires high cost of resources and this also
reduce profits. In e-commerce, resources are utilized efficiently because business transactions are
made online.
Access Consumer-
Traditional businesslimits the operations of a business. whereas through the medium of internet a
business can sell his product and service to their prospective consumer worldwide.
Prompt payment-
Online payment transaction facilitates prompt payment that enhances the business operation of e-
Commerce.
The issue of security is the biggest disadvantage of e-commerce. Even though various
improvements have been made related to data encryption, consumers still fear to provide their
personal data and financial information. Therefore, the growth of e-commerce is not up to the
mark due to the fear of providing credit card information and owns’ identities.
Lack of Privacy-
Many websites lack in encryption for secure online transaction. It has been found that without
permission some websites illegally collect statistics of consumers. Therefore, lack of privacy
restricts consumers to use internet for commercial transaction.
Tax issue-
When a buyer and a seller are living in different locations, the sales tax becomes a big issue for
them. So sales tax creates problems when the buyer and seller live in different geographical area.
Fear-
Consumers fear to operate in electronic world as it is paperless and faceless. They do not
understand with whom they are conducting commercial transactions because some business
organizations have no physical existence.
Product suitability-
Generally, consumers have to depend on electronic image for online shopping. But sometimes
the delivered products may not match with the electronic images which creates discourages in
consumers. So, the lack of touch & feel restricts consumers to shop online.
Cultural obstacles-
Consumers are attracted towards e-commerce from all over the world. But the culture and habits
of the consumers varies from one nation to other. They also face language problem. Therefore,
cultural obstacles affect both business as well as consumers.
Merging of e-business and traditional business is a difficult thing. The value of technological
infrastructure may increase, and a huge amount of money must be spent so that it can keep pace
with the changing technology. Therefore, it is important to allocate more and more funds for the
advancement of technology to remain competitive in the world of e-commerce.
Shopping that is done by consumers with the help of internet is known as online shopping.
Generally online shopping is known as e- shopping or internet shopping. Here consumers shop
without physically visiting the store. Now a day’s consumers are becoming more shopping
conscious and buying products from all over the world by surfing internet. In recent time,
developed technology and increased use of internet led to increase in the practice of e-shopping.
Many people are shopping online due to greater accessibility of internet. Due to e-shopping we
can purchase a wide range of products and services. E-shopping is becoming more popular, as
the buyers can get so many options of shopping at anywhere and anytime. Consumers purchase
products from different websites and draw a specific kind of behavior that is related to various
demographic factors like age, marital status, income group, gender, occupation.
Online shopping offers a large variety of products and allows the customers to get products
according to their needs and preferences. The highest sought-after benefits of online shopping
sites are their huge discounts and low prices as compared to the offline shops. The detailed
ratings and reviews of customers also help the new customers in their decision regarding new
purchases.
The present era of digitalization has changed the perception of consumers towards online
shopping. The convenience, ease, safety has induced the customers to involve more in shopping
of products online. The pre-dominant factors influencing the changed behavior can be underlined
as follows:
Social factors
Social factors influence the buying behavior of consumers. These factors contain people, family,
social classes, beliefs, culture etc.
Psychological factors
These factors are related to the force that is generated within an individual himself and affects
the purchase decision. The major forces include knowledge, behavior, and personality of an
individual.
Personal factors
These factors include features which are very unique to the individual and play a significant role
in affecting their buying behavior. These include demographic factors like age, gender, size of
family and situational factors that is related to the income group of the individual.
Financial Risk
This is the most important concern of individuals who are shopping online. Generally whenever
we do online shopping there is always a risk associated with it like certain amount of money
could be lost while purchasing and the product may be not work properly. Some age groups are
very much concerned about their security and privacy of their bank account information. Today’s
young generation is less concerned than older generations those who behave skeptical in making
online purchases.
Product Risk
Online shopping business gives us correct descriptions of products and enables us to zoom in on
the product pictures that will give the customer accurate information about the product. Due to
the lack of information, which is sometimes presented to customers, they face problems to
evaluate the product quality.
Convenience Risk
This is the important reason for which individuals feel that online shopping gives a large benefit
to them, because it saves time. Rather than going and taking extra time for shopping, individuals
can save their time and can do their other important things. With such a high variety of different
store customers can avail every type of products online.
Non- Delivery
As this is very uncommon that shopping something online and not getting it timely that create a
fear inside the mind of customers. A loss of delivery or non-delivery means goods are lost or
damaged due to some reason. Here the customers would not get their goods on the agreed time
frame. There are so many factors that affect whether the customers receive their products or not
like improper shipping and handling during transportation. By giving accurate updates on
products they ordered we can make customers’ mind easy on shipping and non-delivery.
Return policy
The return policy is an important thing that enables customers the ability to return an unwanted
item or purchase that fails to meet their expectations or needs. In the absence of a proper return
policy, a customer’s shopping behavior is badly stunted as they are forced to put so much trust
into the e-commerce business, which is hard to achieve due to wrong and falsely described
products. Nothing is worse for the consumer than receiving a product and feeling like his money
was wasted as the product doesn’t meet up to his expectations.
Cultural Differences
Cultural differences and biases in e-shopping are very common with online stores all over the
world. As we know each society’s values system is different, but here it is the responsibility of e-
commerce to create an atmosphere which will give confidence to the buyers. It can also affect
consumer behavior by understanding the customers’ relationship with e-shopping and the
internet.
This is another important factor that plays a significant role in consumer behavior towards e-
shopping. Both good and bad experience affects consumer behavior.
Pricing policy
There are so many advantages of online retailers like they don’t need to pay for store bills,
electricity and other physical resources which help them to set the price lower than the offline
stores or physical stores. Generally, consumer needs good quality of product by paying lesser
amount. So that sales and purchase of product equally affected by the pricing policy. Therefore,
now a day’s consumers are getting more attracted towards online shopping rather than offline
shopping.
Online Trust
Variety
As we know we can get more varieties of products and services online as compare to offline
stores. Consumers shopping offline usually have to visit so many stores for the products while
online shopping provides a large variety of product.
Special Offers
Many times online websites provide various discount coupons, special offers, coupon codes, free
shipping and gift cards that can help to reduce the original value of the product. These offers
encourage the consumers to shop more and more. It also influences their behavior as they drawn
to shop more on lower price.
Website design
As we know the first impression of an online website depends on how it looks, the consumer
behavior also affected by the way a website is displayed. The theme including layout and options
available for navigation make the design of the website. The consumer will buy more from a
website if it is easier to locate information related to product.
Payment options
There are so many payment options available for the consumers like cash on delivery, net
banking, online wallets, EMI, credit cards and debit cards, where some of these features absent
in offline shopping. This makes the consumers attracted more towards online shopping.
Wish List
Online shopping provides an option of wish list where the consumers save the products and like
to purchase them latter. By this feature consumers do not need to look for the products they like
again and again, and it becomes easy for them to navigate to the saved products with a click.
Comparison of price
It becomes easier for the consumers to compare the prices of different websites and brand before
they decide to purchase anything. The consumers do not need to visit a variety of offline stores to
search the range of products available instead of searching the products and its features on the
website.
The feature of a website affects consumer’s intention to buy products online. Website design
plays a significant role in affecting the consumers’ attitude towards online shopping. There are
so many factors that encourage the consumers to shop online frequently like availability of
detailed product information, wide range of payment and delivery options, easy return and
exchange policies etc.
By using advanced technology, online retailers improve their websites to influence consumer
perceptions. There are so many websites we can find on the internet through which consumer can
find information and compare different types of products. Consumers can compare the prices and
features of different products on different websites before they go for a buy. By offering the
benefits like 3-D view and zoom view help the consumers to make better buying decision. There
are so many websites through which we purchase different types products as per our needs such
as Amazon.in, Flipkart.com, Myntra.com, Snapdeal.com, Jabong.com, Homeshop18.com,
Tatacllic.com, Pepperfry.com, Paytmmall.com, Nykaa.com, Firstcry.com, 1mg.com.
Amazon.in
In 2013 “Amazon.in” was launched in India marketplace. Initially amazon offered books, movies
and television shows than it expanded to electronics, mobiles, accessories, baby care, computer,
fashion and more in a short span of time. The Amazon grocery store promises next day delivery
of grocery and household items. Recently it has also launched its prime now app for customers.
Flipkart.com
Initially in 2007 flipkart started as an online book store in Bengaluru. With the passage of time
this website has grown as one of the biggest retailing company in India started selling cameras,
computers, laptops, stationary, and appliances etc. It has introduced various services like flights
ticket and mobile recharge in its app.
Myntra.com
This e-commerce website sells fashion products. It has tied up with so many fashion and lifestyle
brands like Puma, Adidas, Nike, Reebok, Lee, Wrangler, Levis etc. Consumers can purchase
through the website as well as mobile app. Myntra also offers footwear, sunglasses, wallets,
belts, beauty products, phone covers and many more. It also provides electronic devices like
headphones, Bluetooth speakers, home decor etc. It provides so many options of national and
international brands that include both budget friendly and luxury products.
Jabong.com
This website fulfils the fashion needs of men, women and kids. It has a wide section of products
which includes footwear, jewelry, apparel, accessories etc. In 2016 Jabong was acquired by
Flipkart. Recently it has launched a luxury store which focuses on premium fashion and luxury
brands.
Tatacliq.com
Pepperfry.com
Pepperfry is one of the popular websites in India that sells furniture online.However it provides
other product categories which include appliances, hardware & electrical, cookware, and lighting
among others. This online furniture store also provides varieties of payment options including n-
cost EMI. It also provides furnitures in rent in some selected cities.
PaytmMall.com
Paytm is the most leading website in digital wallets. However, it has made its presence that can
be felt in the e-commerce arena. Paytm E-commerce Private limited owned this consumer
shopping market place. It was launched in 2007 which offers various categories of fashions,
electronics, home furnishings and consumer durables.
Nykaa.com
This website deals with beauty and wellness products. It includes makeup, skincare, bath and
body, fragrance, men’s products etc. It contains 850 makeup brands in its site of e-commerce. It
is a popular one step destination for shopping branded personal care products including unilever,
P&G, L’Oreal, Parachute, Khadi, Himalaya, Biotique etc. It also provides expert advice and
consultation through online chat.
Firstcry.com
It is an online shopping site for baby and kids products. It contains over 2 thousand national and
national and international brands. It brings the best products and brands at most affordable price
like baby and kids clothes, footwear, toys, books, baby gear etc. This online portal also provides
a special category for the needs of nursing mothers.
1mg.com
This online website also takes care of our health. It provides every kind of medicines and health
products online. People can consult doctors and book lab tests online through this site. 1mg also
offers home sample collection service.
CHAPTER:IV
DATA ANALYSISANDINTERPRETATION
4.1 Introduction
This chapter explicates the reaction of respondent through tables and charts. In addition it
enumerates the groups which are categorized by gender, age, income, factor affecting consumer
perception, etc.
This part contains the test of reliability for the data relevant for the testing of hypothesis.
Gender Total
Male Female
Repurchase decision of Yes 35 15 50
consumer No 8 22 30
Total 43 37 80
Source: Data compiled in SPSS
Interpretation: As evident from table no 4.3.1 , the male: female composition of the sample
group is 43.37. Out of the 43 male respondents 35 had a positive repurchase decision as
compared to only 15 out of 37 female respondents. This shows that male respondents have a
relatively higher participation in online shopping as compared to the female respondents.
Table:4.3.2 Chi-Square Tests
The chi-square value for association among the two variables was also found to be significant,
p=0.000 at df=3. Thus there exists a relation between the age group of the customers and their
choice of mode for shopping. Hence, the H0 is rejected.
3) Occupation of the Buyer:
N of Valid Cases 80
a. 6 cells (60.0%) have expected count less than 5. The minimum expected
count is 2.25.
As shown in table 4.3.6, the association was found to be significant with p-value 0.008 for chi-
square=13.844 at 4 degree of freedom. Hence, the hypothesis is rejected and it can be concluded
that the occupation of the customers has an impact on the purchase decision of the buyers.
Count
Repurchase decision of Total
consumer
Yes No
Upto 1 lakh 24 17 41
1-2 lakh 16 10 26
Income
2-3 lakh 3 1 4
Level
3-4 lakh 6 2 8
more than 4 lakh 1 0 1
Total 50 30 80
Chart: 4.3.4. Income Level and Repurchase decision of consumer
Count
Repurchase decision of Total
consumer
Yes no
married 26 18 44
Marital Status
unmarried 24 12 36
Total 50 30 80
Source: Data compiled in SPSS
Table:4.3.10Chi-Square Tests
The table shows that out of 15 school graduates 10, out of 16 intermediates 13, out of 16 under-
graduates 9, out of 16 post-graduates 12, and out of 9 professional degree holders 4 responded
positively. This shows that irrespective of their qualification a majority 50 respondents had a
favourable response towards online shopping. the chi-square value for the test arrived at 9.896
with a p-value=0.078 which is insignificant at 95% confidence level. Hence the H0 is rejected.
4.4 Analysis of preference of consumers towards varieties of product line available online
Product Preferred
Frequency Percent Valid Percent Cumulative
Percent
Valid Garments 19 23.8 23.8 23.8
Groceries 20 25.0 25.0 48.8
Cinema/entertainment
4 5.0 5.0 53.8
Tickets
ticketsTrain/flight 3 3.8 3.8 57.5
Home-furnishings 7 8.8 8.8 66.3
Beauty & health Products 10 12.5 12.5 78.8
Electronics 9 11.3 11.3 90.0
Books 7 8.8 8.8 98.8
Others 1 1.3 1.3 100.0
Total 80 100.0 100.0
The above table shows the product preference of consumers purchasing online. From the chart it
is evident that a large share of consumers i.e. 48 per cent prefers garments and groceries over
other products available online followed by beauty and health products with a demand of 12.5 %
and electronic items at 11.3%.
4.5 Analysis of factors influencing the relative pre-purchase, on-purchase and post-
purchase satisfaction level of consumers in case of Online shopping
Pre-Purchase decision
Frequency Percent
Total 80 100.0
Post-Purchase Decision
Subscription as
23 28.8 28.8 100.0
premium customer
INTERPRETATION: The study of post purchase behavior of the consumers shows that 28.8
percent consumers consider the subscription as premium customer. Secondly, the customers are
affected by the feedback and support from the retailer. The trust and easy return policies ranked
third in the order of consideration on behalf of the consumers.
strongly
11 13.8 13.8 100.0
disagree
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
N of Valid Cases 80
a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is 3.75.
In the above table 80 respondents have given their remarks on their assumption being high
product quality being a matter of consideration for preferring online shopping. Out of 80
respondents 15 strongly agreed and 26 agreed over the fact that the quality of goods and services
provided in online shopping affects their selection of online shopping over tradition shopping
methods..
The chi-square value 26.575 at 4 degree of freedom was also found to be significant at 0.05
level. Thus, it can be inferred that the quality of products available online affects the buyers’
decision.
strongly
11 13.8 13.8 100.0
disagree
The above table and chart depicts the impact of promotional schemes on online purchase by the
respondents. It has been clearly observed that out of 80 respondents 17 respondents strongly
agree and 25 agree with the statement that discount and promotional schemes influences the
purchase intention of the respondents.
The table value chi-square for association of promotional schemes and discounts on the purchase
decision of the buyers was found to be 11.095 which is significant at 0.05 level. Thus it can be
concluded that promotional schemes and savings thereon affects the buyers’ decision on
repurchase. Hence, the H0 is rejected.
Factor:Quick delivery
The above table signifies the responses of the 80 respondents out of which 15 have strongly
agreed and 25 have agreed to the fact that the time of delivery has an impact over the decision of
the buyer. Cummulatively they comprise of 40% of the total respondents under study.
+
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 9.554a 4 .049
Likelihood Ratio 10.361 4 .035
Linear-by-Linear
6.589 1 .010
Association
N of Valid Cases 80
a. 2 cells (20.0%) have expected count less than 5. The minimum
expected count is 3.00.
Since the p-value(0.049) with chi-square value at 9.554 at df=4, is statistically significant at 5%
level, the H0 is rejected. It can be thus inferred that quickness of delivery as a factor, influences
the consumers’ decision during online shopping.
Factor:Comparable prices
N of Valid Cases 80
a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is
3.00.
From the table no. it can be inferred that significant 55% of the 80 respondents felt comparability
of prices of products and services available online as their selection criteria affects their decision
and product choice. The test statistics for the factor has also been found significant at p=0.033
with table value of chi-square 10.512 with df=4. Hence, the H 0 is rejected and it can be presumed
that the comparability of prices of products affects the buyers’ decision during online shopping.
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
N of Valid Cases 80
a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is
3.75.
From the table it is evident that 53.8 percent of respondents believed that online shopping has an
advantage of availability of large variety of branded products that may not availed offline.
The chi-sqaure value of association between the factor and the consumers’ purchase decision
was significant with p-value 0.000 for table value of chi-sqaure at 26.575. thus the H 0 is rejected
and it can be inferred that the high quality of goods and services available online has a positive
impact on the choice of consumers. This has been substantiated in the figure below.
The above table and chart depicts that out of 80 respondents, 47.5 percent have agreed over the
fact that availability of more options than traditional outlets affects their buying decision during a
shopping dissipation.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
The above table summarises the chi-square value of 9.471 with df=4 was found to be significant,
p=0.050 at 95% confidence level. Hence, the null hypothesis is rejected and it can be presumed
that availability of more options than traditional outlets affects the decision of buyers during
shopping.
Factor:Assurance about what you received
Frequency Percent Valid Percent Cumulative
Percent
strongly agree 9 11.3 11.3 11.3
agree 20 25.0 25.0 36.3
neutral 26 32.5 32.5 68.8
Valid
disagree 15 18.8 18.8 87.5
strongly disagree 10 12.5 12.5 100.0
Total 80 100.0 100.0
The analysis shows that cumulatively 62.5 percent respondents perceived positively assured
towards what they receive through online shopping. However, 20 percent still believed that they
are unsure about the product that will be actually received through online shopping.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
4.3 Summary:
In this chapter, basically all the response collected were analysed. For this, different tables and
figures prepared to present the data. In addition Chi-square test applied to study association
between variables. The Age, Gender, Income etc. are having significant association with the
consumer behavior. However, there are other factors like marital status does not have any
association between consumers’ perception.
CHAPTER:V
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS
5.1 Findings of The Study:
A detailed analysis of all the points and facts collected through well-structured questionnaire and
analyzed through various statistical techniques after making due research the study reveals the
following findings:
With regard to the buying decisions of the respondents and their perception towards online
shopping based on Gender, age, and occupation of the buyers. Males have a higher response
towards online shopping as compared to female respondents. Out of a sample size of 42 male
respondent 35 male have shown a positive response, whereas 15 out of 37 female
respondents have a positive attitude towards online buying.
It was found that there is a significant association between the genders of respondents with
that of their purchase decision. Also, It younger respondents have a positive influence as
compared to the aged ones. It denotes the young generation consumers are preferring the
online marketing, may be because of fashionable and trendy items.
In terms of profession, it was analyzed that online shopping have a deep influence on
professionals as compared businessmen, self-employed and homemakers.33 out of 50
respondents who were employee have shown a positive response towards online shopping.
All the income groups have a relatively similar preference for online shopping. As there is no
association between income group and purchase decision.
Further the study could not find significant association between marital status and purchase
decision.
However, the quality of product has positive impact on purchase decision of the respondents.
Among the problems with respect to online shopping the major problem found in terms of
poor delivery, complex payment mechanism and conditions term for return of products etc.
5.2 Suggestions:
The study tried to explore the problems and prospects in online shopping. In this context, the
study evaluated the perception of different groups of consumers in Brajarajnagar, Odisha. After
making in-depth study, it was found that, though the e-commerce market in India has grown
rapidly in last decade. Still, the awareness level in rural areas are not equivalent with urban area.
The sellers have to upgrade their product as quick as possible to keep a pace with the changing
demands. Also the payment mechanism should be simplified with easy return policy. Now a days
many e-commerce companies have simplified their return policy to make it convenient for the
customers.
5.3 Conclusion:
The primary objective of the present study was to understand the perception of consumers
towards the e-commerce segment in India with a special reference to Brajanagar, Odisha. The
study collected the response of the consumers collected through the structured questionnaire. The
study concluded that the variety, gender group significantly affects the buying behavior of
consumers. However, the choices of consumers driven by age level, profession, quality of the
products. In addition, the marital status does not affect the behavior. As the Brajarajnagar city in
Odisha is one of the emerging city in Western Odisha, there is huge scope for e-commerce
market. The special type campaigning can be made to promote e-commerce business in this area.
The present study will contribute significantly to the existing literature, however there are many
limitations which can be dealt with in future studies. Such as more studies can be conducted in
other cities of the State and at the country level also. Many other variables can be added. The
sample size can also be increased to derive more accurate perception.
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