List of Contents

Chapter I:

Page Number

1. Introduction.5 1.1 Background of research6 Chapter II: 2. Design of the study.8 2.1 Title 2.2 Aim 2.3 Statement of problem 2.4 Objective 2.5 Hypothesis 2.6 Research methodology Stage 1: Literature research Stage 2: Sample design Stage 3: Approaches to research design 2.7 Data collection 2.8 Scope of the study 2.9 Limitations of the study Chapter III: 3. Industry Analysis13 3.1 Industry Analysis 3.2 Essentials of e-retailing 3.3 Support services in e retailing 3.4 Online shopping impact 3.5 Online shopping in India 3.6 Drivers of growth 3.7 Factors that boost online shopping in India 3.8 Facts about online shopping 3.9 Top e- commerce companies in India 3.10 SWOT Analysis

Chapter IV: 4. Data analysis and interpretation35

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Chapter V: 5. Summary of Findings ,Conclusions and suggestions.56 Chapter VI: 6. Annexures

List of Tables and Graphs

4.1 Table and graph showing classification of respondents on the basis of age36 4.2 Table and graph showing classification of respondents on the basis of gender..37 4.3 Table and graph showing classification of respondents on the basis of occupation38 4.4 Table and graph showing classification of respondents on the basis of monthly income...39 4.5 Table and graph showing whether customer shops online..40 4.6 Table and graph showing whether online shopping experience is superior than shopping at physical store.41 4.7 Table and graph showing whether online marketer provides competitive price.42 4.8 Table and graph showing the factors that help customer to choose website...43 4.9 Table and graph showing what motivates customers to buy products online..44 4.10 Table and graph showing do offers and discounts coax customers to buy online.45 4.11 Table and graph showing whether products sold online matches with shopping needs46 4.12 Table and graph showing whether products sold online matches with lifestyle needs.47 4.13 Table and graph showing whether shopping online saves time48 4.14 Table and graph showing whether online shopping takes more time to search a product49 4.15 Table and graph showing whether online shopping takes more time to deliver a product50 4.16 Table and graph showing whether it is easy to make online transactions.51 4.17 Table and graph showing whether speed of internet affects online shopping52 4.18 Table and graph showing whether customers face any problem while shopping online.53 4.19 Table and graph showing whether online transactions are fully secure54

EXECUTIVE SUMMARY

The growing use of Internet in India provides a developing prospect for online shopping. If Emarketers know the factors affecting online Indian behavior, and the relationshipsbetween these factors and the type of online buyers, then they can further develop theirmarketing strategies to convert potential customers into active ones, while retainingexisting online customers. This project is a part of study, and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information, perceived usefulness, ease of use; perceived enjoyment and security/privacy are the dominant factors which influence consumers preference of online Shopping. Consumer preference is said to be an applied discipline as some decisions are significantly affected by their behavior or expected actions. The two perspectives that seek application of its knowledge are micro and societal perspectives. 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, communicate and disseminate information, to sell the product, to take feedback andalso 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 they will receive if they purchase the product from a particularstore. Many Experts are optimistic about the prospect of online business.

CHAPTER -1 INTRODUCTION

Background of the research:

Shopping online offers lots of benefits that one will not find shopping in a store or by mail. The Internet is always open seven days a week, 24 hours a day and bargains can be numerous online. With a click of a mouse, one can buy an airline ticket, book a hotel, send flowers to a friend or purchase favorite fashions. But sizing up your finds on the Internet is a little different from checking out items at the mall. Recent surveys have found that the number of people who shop online around the globe is increasing dramatically. The internet is like a gigantic shopping mall and all of us can be a part of it. Many consumers now a days like to shop online, because it is cheaper, easier and faster. People do not have to queue anymore at the store to pay for their items. There are no long lines, no crowded aisles, no traffic and people do not have to look for a parking space to go to store anymore. With internet, one can browse the site at your leisure, which is important for busy people. There are three phases that people go through when they end up buying a purchase online. In phase 1, people would just go on the internet to find general information about the product that they are searching for, where they just browse to find the general information about features, details, uses of the product that they want to buy and see what brand names are out there for it. In phase 2, once they have all of their information about the different features of the brands, they will compare the details from brand to brand or from model to model of the product that they are thinking about buying. Phase 3 is called the buying phase. It is where they actually make the purchase online. Shopping online is fast and easy. Once the items or services have been chosen and placed in a virtual shopping cart, the customer proceeds to checkout, just like at a retail store. Most sites are easy to use as items are clearly displayed with accurate descriptions. It should be like that. Most shopping sites also have the merchandise divided into categories, so the consumer can focus on what they are looking for. By clicking on an item, one can get a close-up view and a more detailed description. The customer can also check their order status or history through their order status and make returns if necessary. After one has finished shopping, the merchandise should arrive in a couple of days when promised from the site one purchased. Express shipping, at extra cost to the customer, is attractive to last minute shoppers. Along with gift wrap and gift cards together with the merchandise also seem to be an important element for consumers. These extra conveniences enhance the online shopping experience. A site can also keep track of a specific shopper's sales history and send out the infamous newsletter type to promote their new items available on their
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store and also to keep reminding them about their existence. Online shopping is worthwhile to everyone. The seller enjoys extra opportunities for sales. The customers can browse the site at their leisure. A dynamic and convenient shopping site should be a popular and ultimate destination for online shoppers.

The Internet has developed an into a new distribution channel and online transaction are rapidly increasing. This has created a need to under how the consumers perceive onlinepurchasing. Price, Trust and Convenience were identified as important factors. Price was consideredas tobe a most important factor for a majority of the students. The internet has created aparadigm shift of the traditional way people shop. A consumer is no longer bound toopening a times or specific location. So he can become active at virtually any time anyplace and purchase the products or services. The internet is relatively a new medium for communication and the information exchangethat has present in everyday life. The number of internet user is constantly increasingwhich is also signifies that online purchasing is increasing. The rapid increasing isexplained by the consumer behavior. The internet is considered a mass medium thatprovides the consumers with purchase characteristics as no other medium. Certaincharacteristics are making it more convenient for the consumer compared to thetraditional way of shopping, such as the ability to any time view and purchase productsvisualize the needs with products and discuss products with other consumers. Onlineshopping is the process of consumer go through the when they decide the shop on the internet. One of the primary reasons to use the internet combined with searching for products andfinding the information about them. Therefore internet develop the h Companies also use the Internet to convey, communicate 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 they will receive if they purchase theproduct from a particular store. Many experts are optimistic about the prospect of onlinebusiness. Due to the rapid development of the technologies surrounding the Internet, a companythat is interested in selling products from its web site will constantly has to search for anedge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to understand what the consumer wants and needs.
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CHAPTER 2: DESIGN OF THE STUDY

2.1 Title:
A Study On Online Shopping Preference among Urban Population ,Bangalore

2.2Aim:
To understand and analyze the factors that influence online shopping preference of urban consumer of Bangalore city.

2.3 Statement of problem:

At any given time there are millions of people online and each of them is a potential customer for a company providing online sales. Since there are so many potential consumers, it is at most important to understand what the consumer wants, needs and prefers. The importance of analyzing and identifying factors that influence the consumer when he or she decides to purchase on the Internet is vital. Since online shopping is a new shopping trend and online consumer behavior is diverse from traditional consumer behavior, and to analyses factor influencing the preference of online shopping.

2.4 Objective:
To analyze whether customer prefer online shopping or not. To analyze the factors influencing online consumer. To investigate if online shopping impacts lifestyle / shopping To know if online shopping saves time. To analyze whether shopping online is user friendly or not. .

2.5 Hypothesis:
Ho - There is no significant difference between respondent Age group and usage of online shopping. H1- There is significant difference between respondent Age group and usage of online shopping.

2.6 RESEARCH METHODOLOGY I Stage- Literature Research

Literature review:

Electronic commerce and online shopping continue to grow as consumers' channel of choice for products and services. Yet, SarvDevaraj et al* in their study have mentioned that persistent issues of security, availability and personalization inhibit its full potential. Using a structureconduct-outcome (SCO) framework, their study analyzed theeconomic aspects of consumer transaction through incurredcosts and the social aspects through patterns of behavior. The results from the structural equation modeling analysis indicate that asset specificity and uncertaintystructure variables of the electronic marketplace are associated with the conduct constructs such as timeresponsiveness, personalization, website design and security and reliability of the online channel. Further, timeresponsiveness; personalization, security and reliability are also significantly related to the consumer satisfactionoutcome with the channel. They do not find support for website design being related to online consumers'satisfaction. Finally, there is evidence that satisfaction derived from the above conduct variables is strongly relatedto the consumers' preference for the online channelSearching product information and buying goodsonline are becoming increasingly popular activities, whichwould seem likely to affect shopping trips. Farag et al' intheir study have said that little empirical evidence about the Relationships between e-shopping and in-store shopping areavailable. The aim of study is to describe how the frequenciesof online searching, online buying and non-daily shoppingtrips relate to each other and how customers are influenced bysuch factors as attitudes, behavior and land use features. The results showed that predictors from all four categories are retained in the final (best subset) solution indicating that click stream behavior is important when determining the tendency to buy. This clearly indicated the contribution in predictive power of variables that were never used before in online purchasing studies. Detailed click stream variables are the most important ones in classifying customers according to their online purchase behavior. Kenneth K.
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Boyer et al' in their study presented an analysis of the growing market for groceries and other foodstuffs ordered via the internet or telephone for delivery to the customer's home. They said that this industry has been growing for the past 5 years at greater than 25% per year .

II Stage- Sampling

Sample unit: Online consumers. Sample size: 100onlineconsumers from Bangalore City only. Sampling design: Simple Random Sampling

III Stage- Approaches to Research Design 1. Research Design DescriptiveResearch

2.7 Data Collection I. Primary data. II. Secondary data

Primary sources:We have send questionnaire online through Google docs in Bangalore city only. 1) Questionnaire Analysis Secondary sources: For writing the report and understanding online shopping behavior in general secondary data was collected through Internet, Journal and Magazine

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2.8 Scope of the study:

Todays Indian market scenario offers more reliable and profitable online marketing opportunity. The internet has now become new source of distribution channel, which are rapidly growing. Despite the increase in the number of internet user in Bangalore and the product that are been offered on the web, there is relatively little work that specifically examine the internet usage and online shopping preference of the consumers. So this study will provide an opportunity to understand how consumers perceive online purchases and factors influence their online buying preference. The study was carried out in Bangalore city during the period of December 12st ,2012 to February 10th, 2013.

2.9 Limitation of the study:

The research is restricted to Bangalore city only. Since the time frame may not be sufficient to carry out the study in greater depth, the sample size is restricted to 100 only.

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CHAPTER 3: INDUSTRY ANALYSIS

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3.1 Industry analysis

The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut, Netscape's SSL encryption of data transferred online and Intershop's first online shopping system. Immediately after Amazon.com launched its online shopping site in 1995 and eBay was introduced in 1996.

The e-retailing (less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of retail goods using electronic media, in particular, the internet. The vocabulary electronic retailing, that used in internet discussions as early as 1995, the term seems an almost in evitable addition to email, e-business and e-commerce, etc. e-retailing is synonymous with business- to- consumer (B2C) transaction model of e-commerce. Although e-retailing is an independent business model with certain specific constituents like; trust model, electronic transaction process, etc, but in reality it is a subset of e- commerce by nature.

E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g., Amazon did for Books & CDs, etc. The online retailing require lots of displays and specification of products to make the viewers have a personal feel of the product and its quality as he gets while physically present in a shop.

E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to customer) business model that executes a transaction between businessman and the final consumer. E-Retailers can be pure play businesses like amazon.com or businesses that have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-commerce. Thus, e-commerce is the master domain defining the e-retailing operation. Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce,

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electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. E-commerce can be divided into:

E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"

The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (EDI), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)

Business-to-business buying and selling The security of business transactions

3.2 Essentials of E-Retailing

Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of products, information and service through virtual stores on the web, usually designed around an electronic catalogue format and auction sites. There are thousands of storefronts or e-commerce sites on the Internet that are extensions of existing retailers or start-ups. Penetration of computers and proliferation of the Internet has given rise to many new forms of businesses, such as business process outsourcing, call centre based customer relationship management, medical transcription, remotely managed educational and medical services and of course, electronic retailing.

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There are certain essential ingredients for an electronic retailing business to be successful. One must consider these components well in advance before setting up an electronic storefront. These essential components are:

Attractive business-to-consumer (B2C) e-commerce portal Right revenue model Penetration of the Internet

E-Catalog It is a database of products with prices and available stock. Shopping Cart The customers select their goodies and fill shopping cart. Finally, as in a real store, at the time of checkout, the system calculates the price to be paid for the products.

A payment gateway Customer makes payments through his/her credit card or e-cash. The payment mechanism must be fully secure.

3.3 Support Services in E-Retailing

The electronic retail business requires support services, as a prerequisite for successful operations. These services are required to support the business, online or offline, throughout the complete transaction-processing phases. The following are the essential support services:

Communication backbone Payment mechanism Order fulfillment Logistics

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3.4 ONLINE SHOPPING IMPACT

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 behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context. The Internet has developed an into a new distribution channel and online transaction are rapidly increasing. This has created a need to under how the consumers perceive onlinepurchasing.Price, Trust and Convenience were identified as important factors. Price was considered as to be a most important factor for a majority of the students. The internet has created a paradigm shift of the traditional way people shop. A consumer is no longer bound to opening a times or specific

17

location. So he can become active at virtually any time any place and purchase the products or services. The internet is relatively a new medium for communication and the information exchange that has present in everyday life. The number of internet user is constantly increasing which is also signifies that online purchasing is increasing. The rapid increasing is explained by the consumer behavior. The internet is considered a mass medium that provides the consumers with purchase characteristics as no other medium. Certain characteristics are making it more convenient for the consumer compared to the traditional way of shopping, such as the ability to any time view and purchase products visualize the needs with products and discuss products with other consumers. Online shopping is the process of consumer go through the when they decide the shop on the internet. The internet has developed into a new distribution channel and the evaluation of this channel. Ecommerce has now identified. Using the internet to shop online has become one of the primary reasons to use the internet combined with searching for products and finding the information about them. Therefore internet develop the Companies also use the Internet to convey, communicate 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 they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. Due to the rapid development of the technologies surrounding the Internet, a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to be able to understand what the consumer wants and needs.

3.5 Online Shopping In India

It is a fact that a great online shopping revolution is expected in India in the coming years. There is a huge purchasing power of a youth population aged 18 -40 in the urban area. Rising
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Connectivity and the growth of InternetSubscribers , it is getting doubled year by year. The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. Wi-Fi &Wi max system has also started in India. This will increase the usage as it goes more on wireless internet. Indians are proving every time that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of India online buying is crossing the overall global averages.

In Indias largest retail e-com company Flipkart.com which recently raised $20 million in its third round of funding from a venture capital (VC), valuing it in excess of Rs 1,000 crore. Though the company has already raised $31 million, there are rumors that a very large ventures capital fund is planning to invest another $150 million in the company raising its valuations to $1 billion or Rs 5,000 crore.

Then there are others like Myntra.com which raised $40 million, India plaza that raised $8 million so far, and daily deals site Snapdeal.coms parent Jasper Infotech that recently raised $40 million from venture capital. Even global majors like eBay.com (entered six years ago) and Amazon.com are present in the Indian space.

Large Indian off-line groups like Future and Times of India are also in the fray. It is estimated that even after investing $300 million in the Indian retail e-com space, VCs are looking out for more exciting ideas with a bagful of money. It is estimated that around 20,000 deal transactions and 50,000 product transactions happen every day from the top 10 retail e-com sites.

Why are VCs so bullish on e-com? Will it be another bubble like the burst of dot.com companies in the early 2000s? Early stage venture funding company Accel Partners, which has invested in half-a-dozen e-com companies does not think so. We are very bullish on the future potential of the Indian retail e-com market. Buying online is catching up fast and all our funded companies are gaining traction as planned, said Accel Partners Partner PrashanthPrakash.
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3.6 Drivers of growth

E-com companies and experts believe that several factors will drive e-retailing growth in India. According to a recent report from Internet and Mobile Association of India (IAMAI), total Indian market for e-com is around Rs 50,000 crore, of which 80 per cent or Rs 40,000 crore is captured by travel e-commerce (online train, bus and airline tickets) while non-travel or retail ecom is only 20 per cent or Rs 10,000 crore.

Experts hope that by the year 2025, the total e-com market will reach at least Rs 4,00,000crore and the share of retail will be half at Rs 2,00,000 crore. It is this kind of market predictions that is making everyone sit up and make a note, said Indiaplaza Founder and CEO K Vaitheeswaran.

Indiaplaza, now one of the top 10 e-com companies in the country, has been around for nearly a decade and re-invented its business model to become a pure play e-retailer. One of the major reasons why e-com has grown very fast in the last 2 to 3 years, Vaitheeswaran believes, is the tremendous growth in internet penetration which has now reached 100 million as against only 3 million in 2001. Earlier only around 1 per cent of internet users were shopping online, now about 8 per cent or 8 million shop online, said Vaitheeswaran.

With the phenomenal spread of mobile telephony and the advent of 3G in the country, buyers from small towns and cities are also buying online in large numbers. It is a fact that internet has dissolved the discrimination factor between the small and the big cities enabling buyers from small towns to have access to the same branded goods, and quality products which earlier was a privilege of large city buyers.

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3.8 Factors That Boost Online Shopping in India

Rapid growth of cyber cafs across India Access to Information The increase in number of computer users Reach to net services through broadband

Middle-class population with spending power is growing. There are about 200 million of middleclass population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires

3.8 Facts about Online Shopping

25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26 -35 year range. Indian online matrimonial sector is worth around $230 million Worldwide The figures from IAMAI show that the internet users in India will grow to 200 million by 2010. Around Ecommerce is only growing at the rate of 28%, since India being a younger market, the growth of e-commerce is expected at 51% in the coming years In line with global trends finally India has also started shopping online these days. As per the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522 million in 2007 and it is expected to rise above $700 million by end March 2010.

Changing Attitude towards Online Shopping

Awareness, Future Demand Focus for Emerging Markets & Current Issues Malls springing up everywhere and yet people are E -shopping! And not in small numbers either. Consumers are more rational nowadays and have ability to get the choices from the market. Awareness among the consumers is spread through internet. The number of internet users is increasing day by day
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which attracts people who have an option to buy online. It was never thought that Indians would go in for e -shopping in such a big way. Ticketing, travel bookings and even books and movies seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that there are people buying these items online? In India there are some segments of people who have not yet tried purchasing over internet. E -commerce or electronic commerce saw sales revenues grow 12.1 percent i n 2001 to $31.4 billion a figure expected to reach $81.1 billion by 2006 it is anticipated that the worldwide market for business -to-business and business-to-consumer e-commerce will total $3.1 trillion in 2004 as compared to $350.4 billion in fiscal 2000 -2001. Among the most profitable products and services sold online are consumer goods such as books, videos, music, computers and other tech products, and travel. There profitable sectors include investment transactions The idea of online retailing or e-tailing which almost every net -savvy individual is familiar with; offers a convenient mode of shopping online and the consumer gets to choose from a diverse range of products and services as opposed to the analogous physical shopping experience. Furthermore, online retailers or e -tailers get to expose and sell their products to a global audience through their e-stores. (Also termed as online stores, internet shops, web shops etc.) The E-commerce industry plays a vital role in its growth and development. The consumer or buyer is usually provided with detailed information and description of the product which helps them make a judicious choice before making an online purchase. For consumers who face a paucity of time or want a diverse range of products to choose from, e-tailing proves to be an ideal option. Every e -tailer wants his/her share of domain amidst the vast World Wide Web galaxy. Due to the intense competitory quotient involved, every e-tailer out there wants to offer their customer/buyer a smooth and pleasant shoppingexperience. Therefore, e-tailing is just not restricted to put ting up products for sale for consumers to buy. As consumers today are well informed, it is understood that they would make a well informed decision as well. This involves a fair amount of product. research, price comparison and checking the credibility of the E-store.

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Top E-commerce Companies in India 1.Flipkart.com 2.Snapdeal.com 3.Fashionandyou.com 4.Myntra.com 5.Inkfruit.com 6.Dealsandyou.com 7.eBay 8.Homeshop18.com 9.Infibeam.com 10.99labels.com

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Customers
Online customers must have access to the internet and a valid method of payment in order to complete a transaction. Generally, higher levels of education, occupation of the head of the household and income correspond to more favorable perceptions of shopping online. Increased exposure to technology also increases the probability of developing favorable attitudes towards new shopping channels. In a December 2011 study, Equation Research found that 87% of tablet users made online transactions with their tablet devices during the early holiday shopping season.]

LOGISTICS
Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine. Once a particular product has been found on the website of the seller, most online retailers use shopping cart software to allow the consumer to accumulate multiple items and to adjust quantities, like filling a physical shopping cart or basket in a conventional store. A "checkout" process follows (continuing the physical-store analogy) in which payment and delivery information is collected, if necessary. Some stores allow consumers to sign up for a permanent online account so that some or all of this information only needs to be entered once. The consumer often receives an e-mail confirmation once the transaction is complete. Less sophisticated stores may rely on consumers to phone or e-mail their orders (though credit card numbers are not accepted by e-mail, for security reasons).

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PAYMENT

Online shoppers commonly use a credit card or a PayPal account in order to make payments. However, some systems enable users to create accounts and pay by alternative means, such as:

Billing to mobile phones and landlines Cash on delivery (C.O.D., offered by very few online stores) Cheque/ Check Debit card Direct debit in some countries Electronic money of various types Gift cards Postal money order Wire transfer/delivery on payment Invoice, especially popular in some markets/countries, such as Switzerland

Some online shops will not accept international credit cards. Some require both the purchaser's billing and shipping address to be in the same country as the online shop's base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time (e.g., letting the consumer know their credit card was declined before they log off), or may be done later as part of the fulfillment process.

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Product delivery
Once a payment has been accepted, the goods or services can be delivered in the following ways:

Downloading: The method often used for digital media products such as software, music, movies, or images.

Drop shipping: The order is passed to the manufacturer or thirdparty distributor, who then ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.

In-store pick-up: The customer selects a local store using a locator software and picks up the delivered product at the selected location. This is the method often used in the bricks and clicks business model.Printing out, provision of a code for, or emailing of such items as admission tickets and scrip (e.g., gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility (e.g., assurances that the right of admission or use is redeemed at the correct time and place, for the correct dollar amount, and for the correct number of uses).

Shipping: The product is shipped to a customer-designated address.

Will call, lCOBO (in Care Of Box Office), or "at the door" pickup: The patron picks up prepurchased tickets for an event, such as a play, sporting event, or concert, either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of this service has increased.

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Information load
Designers of online shops are concerned with the effects of information load. Information load is a product of the spatial and temporal arrangements of stimuli in the webstore. Compared with conventional retail shopping, the information environment of virtual shopping is enhanced by providing additional product information such as comparative products and services, as well as various alternatives and attributes of each alternative, etc. Two major dimensions of information load are complexity and novelty. Complexity refers to the number of different elements or features of a site, often the result of increased information diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site. The novelty dimension may keep consumers exploring a shopping site, whereas the complexity dimension may induce impulse purchases

Consumer needs and expectations

A successful webstore is not just a good looking website with dynamic technical features, listed in many search engines. In addition to disseminating information, it is also about building a relationship with customers and making money. Businesses often attempt to adopt online shopping techniques without understanding them and/or without a sound business model; often times, businesses produce webstores that support the organizations' culture and brand name without satisfying consumer expectations. User-centered design is critical. Understanding the customer's wants and needs is essential. Living up to the company's promises gives customers a reason to come back and meeting their expectations gives them a reason to stay. It is important that the website communicates how much the company values its customers. Customer needs and expectations are not the same for all customers. Age, gender, experience and culture are all important factors. For example, Japanese cultural norms may lead users there to feel privacy is especially critical on shopping sites and emotional involvement is highly important on financial pensions sites. Users with more online experience focus more on the variables that directly influence the task, while novice users focus on understanding the information.

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To increase online purchases, businesses must expend significant time and money to define, design, develop, test, implement, and maintain the webstore.It is easier to lose a customer than to gain one. Even a "top-rated" website will not succeed if the organization fails to practice common etiquette such as returning e-mails in a timely fashion, notifying customers of problems, being honest, and being good stewards of the customers' data. Because it is so important to eliminate mistakes and be more appealing to online shoppers, many webshop designers study research on consumer expectations.

Market Share and Future Prospective in India

People turned to the Internet to buy everything from diapers to books, houses and even groceries this year, pushing e-commerce revenues in the country to $14 billion with the possibility of even higher earnings in 2013.Factors like spiraling inflation and slower economic growth failed to dampen the online shopping frenzy as more and more companies opted for selling wares through the internet route, offering innumerable options and discounts to buyers."Increasing Internet penetration and availability of more payment options boosted the e-commerce industry in 2012. Besides electronics, customer traction grew considerably in categories like fashion and jewellery, home and kitchen and lifestyle accessories like watches and perfumes," Snapdeal Vice President (Marketing) SandeepKomaravellysaid.While travel still comprises a significant portion of the ecommerce market, other segments are catching up fast.Apparel, books and lifestyle categories (beauty, footwear and health) will drive e-commerce," HomeShop18.Com Founder and CEO SundeepMalhotra said, adding that relatively stable and growing domestic economy will also be major growth drivers. "The coming year looks promising for the industry." According to peppercloset.com owner SumeetArora, e-commerce segment has doubled to $14 billion this year from $6.3 billion in 2011. This figure is likely to reach 38 million by 2015. So, what can one expect in 2013 from the thousands of e-commerce websites. "More personalized offers, loyalty programs and better customer care is what most e-commerce companies would focus on to offer customers a richer, more relevant online experience," an industry analyst said.

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According to homeshop18.Com, an innovation that will "revolutionize" e-commerce in India is cost optimization through warehouse and logistics management that will enable companies to do profitable business. While players like eBay and IndiatimesShopping have been around for a while, one saw many more portals mushrooming in 2012. An important entry in the Indian market was that of one of the world's largest online retailer -- amazoIndia also got its own version of 'Cyber Monday' on December 12 this year as 'e-tailers' like Flipkart, Snapdeal, Homeshop18 and Makemytrip, partnered Google India to offer discounts for online shoppers.

Celebrated on the Monday after Thanksgiving, the term 'Cyber Monday' was first coined in 2005 as a marketing term and has grown as a phenomenon over the years in the US. According to analysts, factors like growing Internet penetration, increasing spending power, availability of multiple payment methods like credit/debit cards, cash on delivery, combined with faster adoption of smartphones and tablets are contributing to the growth of the sector. "Mobility most likely will be the trend to look forward to the next year. Mobile commerce would be huge as more and more people access Internet through tablets and smartphones. Most companies are looking at enhancing their mobile presence," Malhotra said. According to a study by IMRB International and IAMAI, there were an estimated 137 million Internet users in the country as of June 2012. Of this, while 99 million were from urban parts of the country, the remaining 38 million were from rural India.

The next year is expected to see increased participation from tier 2 and tier 3 cities. With a gap of demand and supply in physical retail category, online shopping is set to grow in tier 2 and tier 3 cities. The introduction of cash on delivery has helped gain the trust of consumers in these markets and get rid of the apprehension of using credit cards online," he said. According to him, there is a rising demand for books and health and beauty products from these cities, but tier 2 markets score highest on kids and baby items and home appliances. The year also saw acquisitions and consolidation activities picking up pace as dozens of online shopping portals set up shop. Among major deals, Snapdeal acquired Esportsbuy.Com, Flipkart acquired letsbuy.Com, Madeinhealth was acquired by Healthkart, Yatra.Com acquired Travelguru from Travelocity
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Global, Fashionandyou acquired UrbanTouch and Myntra.Com bought SherSingh.Com "Acquisitions and consolidations will continue. Its just the beginning and will continue happening over the next few years. Bigger players will acquire smaller players and more investments will flow into the segment," Arora said. Despite the fact that most of these e-commerce companies are yet to start making money, growth prospects for these companies remain high and there seems no dearth of investors. According to experts, in 2012, the e-commerce companies in India raised over $500 million (about Rs 2,743.3 crore).

In one of the biggest fund raising by an Indian e-commerce firm,Flipkart in August this year raised $150 million (about Rs 822 crore) from four investors.Entertainment ticketing website BookMyShow.Com also saw Rs 100 croreinvestment by Accel Partners, while Yebhi.Com raised funding from Fidelity Growth Partners India and Qualcomm Ventures. While "one will not see obscene valuations", investors would continue to make small investments and 2013 will be a year of growth and consolidation, Arora said. Online retail has also seen an heavy overlap with social networking due to aggressive marketing on such platforms.

"As smartphones and tablets continue to proliferate, companies will need to embrace multichannel commerce strategy in 2013," Purehomedecor.Com owner SandeepJaglan said. While consumers will be spoilt due to choice, players will have to sweat it out to differentiate themselves from the competitors. Komaravelly of Snapdeal believes that personalization would emerge as a key focus area in 2013. "The ability to customize and personalize shopping experience for customers will become a critical differentiator. Social and mobile platforms will see increased customer adoption in the coming year," he said. Elitify.Com Founder and CEO AmitRawalagrees. "The market is overcrowded with companies that are competing for the same pie and have very little differentiation in their product offering," he said.

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Differentiation is centered around beating the other in marketing and competing on prices, both of which are not sustainable trends for any industry, he added. "So the only way forward is consolidation of players that can create synergies both in terms of operations and product offerings," Rawal said.

Marketing campaigns by major players like Flipkart and Jabong have also made e-commerce a household phenomenon, especially in the big cities, say experts. Social media would also become crucial as more brands use social data to not just popularize their brands but also personalize experience for customers on their websites. Some experts are of opinion that cash on delivery, which is at present the predominant payment mechanism, will become less popular and give way to usage of debit/credit cards. "Given the various disadvantages like longer cash cycles for retailers, collection challenges etc., cash on delivery will become less popular and cards will start becoming more ubiquitous," Malhotra said. With more lucrative deals, loyalty plans and newer products hitting the online shelf, netizens can shop to their heart's content. 2013 surely promises to make customer the king for e-commerce companies.

Market share of some Countries

E-commerce B2C product sales totaled $142.5 billion, representing about 8% of retail product sales in the United States. $26 billion worth of clothes sold online represented about 13% of the domestic market, and with 72% of women looking online for apparel, it has become one of the most popular cross-shopping categories. Forrester Research estimates that the United States online retail industry will be worth $279 billion in 2015. There were 242 million people doing online shopping in China in 2012. For developing countries and low-income households in developed countries, adoption of ecommerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access.

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3.10 SWOT ANALYSIS Strengths

Ability to compete with other companies global and locally Implementing an e-commerce business solution allows companies to expand their customer base to a global level without considerable time or expense.

Specialization and niche selling The larger customer base created by online sales allows e-tailers to specialize in certain niche products that could not support a more traditional business model.

Low overhead cost and low barrier to entry Startup costs for an e-commerce retail operation are a fraction of the costs of starting a traditional brick and mortar company.

Direct consumer communication This form of commerce allows the business to maintain a higher level of consumer communication. The communication happens when the order is placed, when the order has shipped and then at a point in the future, should the customer opt-in to receiving regular email communication.

Weaknesses
High Customer Expectations Small businesses can appear to be large companies on the Internet. Customers have no way of gauge the business actual level of man power and resources. This leads to customers that demand the same level of service from business with 1-2 employees as they would from industry giants like amazon.com. Search Engine Unpredictability Web retailers live and die by organic search engine placement. The higher the store is placed on the search engine result pages (SERPs) translates to more traffic and sales. Search engines
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regularly change their ranking systems and this can cause major fluctuation in placement and create an unpredictable environment.

Opportunities
Global Exposure Adding an e-commerce component to a business allows the company to sell their products to a global market. High Availability: a 24/7 business Selling on the Internet allows the company to take orders around the clock on every day of the week. Orders can then be filled and processed during set business hours. Strong business-to-business networking Websites allow for business-to-business exchange links to increase traffic and search engine placement for each businesses sites. This opens lines of communication on a business-tobusiness level and aids in the cooperation between companies. Industry Growth Retail sales on the Internet in America have seen double digit growth each of the past 8 years. Growth is expected to continue at high rates and having a business online allows the merchant to be in a position to benefit from this expansion.

Threats
Competition The low barriers and the comparatively low overhead costs allow a for a relative easy entry into the market. This increases the level competition and can cause a reduction in prices and profit margins. Threats are produced not only by other retailers within the same industry but also by the manufactures that supply the products that the retailer sells. It is not uncommon for online retailers to directly compete with the manufacturer of the lines they carry.

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Innovation Future innovation could have an adverse effect on e-commerce businesses.

Fraud Some consumers are leery of doing business online out of concerns of fraud and misuse of their financial data. This alienates an entire segment of the population from conducting business via the Internet. Privacy Concerns Some consumers prefer not to give any personal information out over the Internet because of fears that the information will be misused, lead to spam email or identity fraud. Future Legislation Internet sales only have tax applied to the purchase if the buyer and seller reside in the same state. Considering the growth and amount of tax revenue lost to e-commerce, the federal government and individual states could write legislation to impose tax on all online sales. This would remove one incentive to conducting business online.

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CHAPTER 4
DATA ANALYSIS ANDINTERPERTATION

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TABLE 4.1: TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OFAGE

AGE GROUP 15-20 20-25 25-30 30 and Above TOTAL

NO. OF RESPONDENT 6 54 27 13 100

PERCENTAGE 6% 54% 27% 13% 100%

GRAPH 4.1: GRAPH SHOWING CLASSIFICATION OF RESPONDENTS BASED ON AGE:

AGE
15-20 20-25 25-30 30 AND ABOVE

13%

6%

27% 54%

INTERPRETATION: 54% of respondents are in the age group of 20-25,27% in the age
group of 25-30, 13% in age group of 30 and above and 6% in 15-20 age group.

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TABLE 4.2: TABLE SHOWING CLASSIFICATION OF RESPONDENT ON THE BASIS OFGENDER:

GENDER MALE FEMALE TOTAL NO.OF RESPONDENTS 66 34 100 PERCENTAGE 66% 34% 100%

GRAPH 4.2: GRAPH SHOWING CLASSIFICATION OF RESPONDENTS BASED ON GENDER:

GENDER
0% FEMALE 34% 0%

MALE 66%

Interpretation: 66% respondents are males while 34% are females

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TABLE 4.3: TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OFOCCUPATION

OCCUPATION STUDENT PROFESSIONAL GOVT.EMPLOYEE SELF EMPLOYEE OTHERS TOTAL

NO. OF RESPONDENT 54 21 5 14 6 100

PERCENTAGE 54% 21% 5% 14% 6% 100%

GRAPH 4.3: GRAPH SHOWING CLASSIFICATION OF RESPONDENTS BASED ON OCCUPATION:

Chart Title
60% 50% 40% 30% 20% 10% 0%

INTERPRETATION: 54% of respondents are students, 21% are Professionals,5% are

government employees,14% self-employed, 6 % are others.

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TABLE 4.4: TABLE SHOWING CLASSIFICATION OF RESPONDENT ON THE BASIS OFMONTHLY INCOME
MONTHLY INCOME 0-10000 10000-20000 20000-30000 30000-40000 MORE THAN 40000 TOTAL NO. OF RESPONDENT 43 21 16 14 6 100 PERCENTAGE 43% 21% 16% 14% 6% 100%

GRAPH 4.4: GRAPH SHOWING CLASSIFICATION OF RESPONDENTS BASED ON MONTHLY INCOME

Chart Title
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-10k 10k-20k 20K-30k 30K-40K More THAN 40k

INTERPRETATION: 43% respondents are in the income class of below Rs.10000, 21% are in the range of 10k-20k, 16% are in the range of 20k-30k,14% in the range of 30k-40k, 6% in more than 40k .

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TABLE 4.5: TABLE SHOWING WHETHER CUSTOMER SHOP ONLINE

RESPONSE YES NO TOTAL

NO. OF RESPONDENTS
96 4 100

PERCENTAGE
96% 4% 100%

GRAPH 4.5: GRAPH SHOWING WHETHER CUSTOMERS SHOP ONLINE:

CUSTOMER SHOP ONLINE

YES NO

4%

96%

INTERPRETATION:96% respondents shop online, 4% dont

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TABLE 4.6: TABLE SHOWING WHETHER ONLINE SHOPPING EXPERIENCE IS SUPERIOR OVER SHOPPING AT PHYSICAL STORE

RESPONSE YES NO CANT SAY TOTAL

ONLINE SHOPPING EXPERIENCE 61 30 9 100

ONLINE SHOPPING EXPERIENCE 61% 30% 9% 100%

GRAPH 4.6: GRAPH SHOWING WHETHER ONLINE SHOPPING EXPERIENCE IS SUPERIOR OVERSHOPPING AT PHYSICAL STORE

ONLINE SHOPPING EXPERIENCE

YES NO CAN'T SAY

9%

30% 61%

INTERPRETATION: 61% Respondents believe online shopping is superior overshopping at physical store, 30% believe otherwise , 9% cant say

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TABLE 4.7 : TABLE SHOWING WHETHER ONLINE MARKETERS ARE PROVIDING COMPETITIVE PRICE:

PROVIDE COMPETITIVE PRICE YES NO CANT SAY TOTAL

NO OF RESPONDENTS 78 20 2 100

PERCENTAGE 78% 20% 2% 100%

GRAPH 4.7: GRAPH SHOWING WHETHER ONLINE MARKETERS ARE

PROVODING COMPETITIVE PRICE:

COMPETITIVE PRICE
YES NO 2% 20% CAN'T SAY

78%

INTERPRETATION:.78% believe that online marketers are providing competitive prices, 20%

said no, 2% respondents cant say

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TABLE 4.8: TABLE SHOWING THE FACTOR THAT HELP CUSTOMER TO CHOOSE WEBSITE:
RESPONSE SEARCH ENGINE PERSONAL RECOMMENDATION SPECIAL OFFER ON SITE ONLINE ADVERTISES TV ADVERTISES TOTAL NO. OF RESPONDENT 26 20 12 38 4 100 PERCENTAGE 26% 20% 12% 38% 4% 100%

GRAPH 4.8: GRAPH SHOWING THE FACTOR HELP CUSTOMER TO CHOOSE WEBSITE:
FACTOR TO CHOOSE A WEBSITE 38%

26% 20% 12% 4%

SEARCH ENGINE

PERS. RECOMMEND

SPE.OFFER

ONLINE ADV.

TV ADV.

INTERPRETATION: 38% Respondents look at online advertisements for choosing a

website, 26% look at search engine, 20% at personal recommendations, 12% at special offers and 4% at tv advertisements

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TABLE 4.9: TABLE SHOWING WHAT MOTIVATES CUSTOMERS TO BUY PRODUCTS ONLINE:
RESPONSE EASY PAYMENT NO HIDDEN COST NO TRAVEL TO STORE WIDE RANGE OF PRODUCT TOTAL NO.OF RESPODENT 22 18 40 20 100 PERCENTAGE 22% 18% 40% 20% 100%

GRAPH 4.9: GRAPH SHOWING WHAT MOTIVATES CUSTOMERS TO BUY

PRODUCTS ONLINE:

MOTIVATION TO BUY ONLINE

WIDE RANGE OF PRODUCT 20%

EASY PAYMNET 22% NO HIDDEN COST 18%

NO TRAVEL TO STORE 40%

INTERPRETATION: 40% Respondents shop online so that they do not have to travel to
store,22% for easy payment, 20% for wide range of products and 18% for no hidden cost

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TABLE 4.10: TABLE SHOWING DO OFFERS AND DISCOUNTS COAX

CUSTOMER TO BUY ONLINE:

RESPONSE YES NO TOTAL

NO. OF RESPONDENT 82 18 100

PERCENTAGE 82% 18% 100%

GRAPH 4.10: GRAPH SHOWING HOW OFFERS AND DISCOUNT S COAX

CUSTOMERS TO BUY ONLINE:

COAX CUSTOMER TO BUY ONLINE

YES NO

18%

82%

INTERPRETATION:. 82% respondents are coaxed by discounts and offers while 18% are
not

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TABLE 4.11: TABLE SHOWS WHETHER PRODUCTS SOLD ONLINE MATCHES WITH SHOPPING NEEDS :

RESPONSE YES NO TOTAL

NO OF RESPONDENT 90 10 100

PERCENTAGE 90% 10% 100%

GRAPH 4.11: GRAPH SHOWING WHETHER PRODUCTS SOLD ONLINE MATCHS WITH SHOPPING NEEDS

MATCH WITH SHOPPING NEEDS

YES NO

10%

90%

INTERPRETATION: 90% of respondents agreed that products sold online matches with
their shopping needs,10% say it doesnt.

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TABLE 4.12: TABLE SHOWS WHETHER PRODUCTS SOLD ONLINE MATCHES WITH LIFESTYLE NEEDS :

RESPONSE YES NO TOTAL

NO OF RESPONDENT 90 10 100

PERCENTAGE 90% 10% 100%

GRAPH 4.12: GRAPH SHOWING WHETHER PRODUCT SOLD ONLINE MATCHES WITH LIFESTYLE NEEDS

MATCH WITH LIFESTYLE NEEDS

YES NO

10%

90%

INTERPRETATION:90% Respondents say products sold online matches with their

lifestyle needs, 10% it doesnt.

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TABLE 4.13: TABLE SHOWS WHETHER SHOPPING ONLINE SAVE TIME:

RESPONSE STRONGLY AGREE AGREE CANT SAY DISAGREE STRONGLY DISAGREE TOTAL

NO.OF RESPODENT 48 42 10 0 0 100

PERCENTAGE 48% 42% 10% 0% 0% 100%

GRAPH 4.13: GRAPH SHOWING WHETHER SHOPPING ONLINE SAVE TIME:

SAVE TIME

48% 42%

10% 0% Strongly agree Agree Can't say Disagree

0% Strongly disagree

INTERPRETATION: 48% strongly agree that online shopping saves time, 42% agree, 10%
cant say

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TABLE4.14 : TABLE SHOWS WHETHER ONLINE SHOPPING TAKES MORE TIME TO SEARCH A PRODUCT:

RESPONSE STRONGLY AGREE AGREE CANT SAY DISAGREE STRONGLY DISAGREE TOTAL

NO.OF RESPODENT 22 40 26 10 2 100

PERCENTAGE 22% 40% 26% 10% 2% 100%

GRAPH 4.14: GRAPH SHOWING WHETHER ONLINE SHOPPING TAKES MORE TIME TO SEARCH A PRODUCT:

SEARCH A PRODUCT

40%

22%

26%

10% 2% Agree Can't say Disagree

Strongly agree

Strongly disagree

INTERPRETATION: 40% agree that online shopping takes more time to search a product,
26% cant say, 22% strongly agree,10% disagree,2% strongly disagree

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TABLE4.15 : TABLE SHOWS WHETHER ONLINE SHOPPING TAKES MORE TIME TO DELIVER A PRODUCT:

RESPONSE STRONGLY AGREE AGREE CANT SAY DISAGREE STRONGLY DISAGREE TOTAL

NO.OF RESPODENT 4 26 24 38 8 100

PERCENTAGE 4% 26% 24% 38% 8% 100%

GRAPH 4.15: GRAPH SHOWING WHETHER ONLINE SHOPPING TAKES MORE TIME TO DELIVER A PRODUCT:
DELIVER A PRODUCT

38% 26% 24%

4% 8% Strongly agree Agree

Can't say

Disagree

Strongly disagree

INTERPRETATION: 38% respondents disagree that online shopping takes more time to
deliver a product, 26% agree, 24% cant say, 8% strongly disagree, 4% strongly agree

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TABLE4.16: TABLE SHOW WHETHER IT IS EASY TO MAKE ONLINE TRANSACTIONS:

RESPONSE YES NO TOTAL

NO OF RESPONDENT 78 22 100

PERCENTAGE 78% 22% 100%

GRAPH 4.16: GRAPH SHOWING WHETHER IT IS EASY TO MAKE ONLINE TRANSACTION:

EASY ONLINE TRANSACTION

YES NO

22%

78%

INTERPRETATION: 78% say it is easy to make online transactions, 22% dont think so.

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TABLE4.17: TABLE SHOW WHETHER SPEED OF INTERNETAFFECT ONLINE SHOPPING:

RESPONSE AGREE DISAGREE TOTAL

NO OF RESPONDENT 99 1 100

PERCENTAGE 99% 1% 100%

GRAPH 4.17: GRAPH SHOWING WHETHER SPEED OF INTERNET AFFECT ONLINE SHOPPING:

SPEED OF INTERNET AFFECT ONLINE SHOPPING

AGREE 1% DISAGREE

99%

INTERPRETATION: 99% agree speed of internet affect online shopping,1% disagree.

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TABLE4.18: TABLE SHOW WHETHER CUSTOMERS FACE ANY PROBLEM WHILE SHOPPING ONLINE:

RESPONSE YES NO TOTAL

NO OF RESPONDENT 56 44 100

PERCENTAGE 56% 44% 100%

GRAPH 4.18: GRAPH SHOWING WHETHER CUSTOMERS FACE

ANY PROBLEM WHILE SHOPPING ONLINE:

PROBLEM FACE WHILE ONLINE SHOPPING

YES NO

44% 56%

INTERPRETATION: 56% face problem while shopping online,44% do not.

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TABLE4.19 : TABLE SHOWS WHETHER ONLINE TRANSACTION ARE FULLY SECURE:

RESPONSE YES NO MAY BE DONT KNOW TOTAL

NO.OF RESPONDENTS 22 44 26 8 100

PERCENTAGE 22% 44% 26% 8% 100%

GRAPH4.19: GRAPH SHOWS WHETHER ONLINE TRANSACTION ARE FULLY SECURE:

44%

26% 22%

8%

YES

NO

MAY BE

DON'T KNOW

INTERPRETATION: 44% do not think that online shopping is fully secure, 26% say may
be, 22% say yes and 8% say dont know.

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Chi square test

AGE GROUP 15-20 20-25 25-30 30 and above TOTAL

YES 4 50 25 10 89

NO 2 4 2 3 11

SAMPLE SIZE 6 54 27 13 100

Hypothesis:

Ho: There is no significant difference between respondent age and usage of online shopping H1: There is significant difference between respondent age and usage of online shopping

DEGREE OF FREEDOM : ROW=4, COLUMN=3 Df= (r-1)(c-1) = 3 Alpha=0.05 , chi square formula= 2= (O E)2/ E Critical value=7.815 AGE GROUP 15-20 20-25 25-30 30 and above RESPONSE YES NO YES NO YES NO YES NO OBSERVED FREQUENCY 4 2 50 4 25 2 10 3 EXPECTED FREQUENCY 5 1 48 6 24 3 12 1

Chi square =0.549

Interpretation: Since calculated value of chi square =0.549 is smaller than the Critical value.
Therefore Null Hypothesis cannot be rejected. Therefore is no significant difference between respondent Age group and usage of online shopping
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CHAPTER-5 FINDINGS CONCLUSION AND SUGGESTION

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SUMMARY OF FINDINGS

Majority of respondents who shop online are in the age group of 20-25, and customer below 20 are rare in the data collected. About 66% of respondents are males while 34% are females. More than half of the respondents are students, around one fifth are professionals, followed by government employees, self employed and others. The study revealed that 43% respondents were in the income range of below 10000,21% were between 10000-20000, 16% were in the range of 20000-30000 14% were in the range of 30000-40000 while only 6% were in the range of more than 40000 per month.

It was found that a whopping 96% use online shopping while 4% do not. Findings revealed that 61% respondents find online shopping superior than physical store, 30% dont while 9% were in dilemma. The survey finds that 78% respondents believe that online marketers provide competitive prices, 22% dont think so. It was found that majority of respondents relied on online advertisement for choosing a website for shopping, followed by search engine, personal recommendation, special offers on site

Around 40% respondents shopped online because they did not want to travel to store, rest shopped due to reasons like easy payment, wide range of product and no hidden cost. A whopping 82% respondents were coaxed by online offers and discounts while 18% were not attracted. The survey revealed that 90% of respondents needs were met online,10% did not agree on the same. The survey also revealed that 90% of respondents lifestyle needs were met online, again10% did not agree.

Around half of the respondents strongly agreed that online shopping saves time, 42% agreed and 10% did not agree. Around 40% agreed that it takes more time to search for a specific product, 26% did not know, 22% strongly agreed, 10% disagreed and 2% strongly disagreed.
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Most of the respondents, around 38% disagreed that it takes more time to deliver a product,26% agreed it does take more time , 24% couldnt respond, while rest either strongly agreed or disagreed.

78% respondents were with ease in making online transactions, rest were not The findings showed that 99% respondents agreed that speed of internet affected online shopping, only 1% did not agree. More than half of respondents faced problems while shopping online, rest did not. Findings revealed that 44% believed that online shopping is not fully secure, 26% said may be, 22% said yes, while 8% said they do not know.

Conclusion
This study is to determine the factors that play a vital role in online shopping. Thesurvey method was used to collect data from the internet users. After analyzing the collected data, it has been identified that there is no significant difference between age group and usage of online shopping. The preference is based on the comfort level of the customer.Economic factors also play an important role in the preference towards the online shopping. The study concluded that consumers prefer online shopping because of thefollowing reasons: People shop online to avoid crowds. Shopping online is popular with people who have hectic schedules and do not want to wait in queues for shopping or billing. It saves time and allows consumers to do otherthings. There are a variety of products available. The prices arecompetitive. Product information is also easily available at same site.

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SUGGESTION:
As we came to know after research on this topic we recommend that, the online sellers have to make their payment transparent, and as people are coming on their sites and they are buying their products , so retailers have to give more discounts to their customers so that they can visit again and again to their site , and it also helps to make people more aware about the low risk shopping of the net, and one more thing is that there is slow transaction of money and they have to make it fast so that customer dont have to face much problem to pay for the product, if customer is going to face some problem he is not going to visit our site and buy product . Implication that should be followed are discount prices, fast transactions and focus on customer preferences.

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Bibliography and Annexures

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References:
Kenneth K. Boyer et al, Customer behavioral intentions for online purchases: An examination of fulfillment method and customer experience level, Journal of Operations Management.

SarvDevaraj et al, 1103 Examination of online channel preference, Decision Support Systems. www.sciencedirect.com

Dan J. Kitn, A tmst-based consumer decision-making model in electronic eommerce: the role of trust, perceived risk, and their antecedents. Decision Support Systems, 44 (2), 544-564 (2008)

Jiunn-WoeiLian, Effects of consumer characteristics on their acceptance of online shopping, Computers in Hutnan Behavior, 24 (1), 48-60(2008)

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Questionnaire

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Demographic profile

1. Name _________________

2. Age o 15-20 o 20-25 o 25-30 o 30 and above

3. Gender o Male o Female

4. Occupation? o Student o Professional o Govt. employee o Self employed o Others

5. Monthly income? o Less than 10000 o 10000-20000 o 20000-30000 o 30000-40000

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o More than 40000

6.Do you shop online? o Yes o No

7. Do you feel that online shopping is better than shopping at physical store? o Yes o No o Cant say

8. Do you feel online marketers are providing competitive prices? o Yes o No o Cant say

9.What factors help you choose a website for online shopping? o Search engine o Personal recommendation o Special offers on sites o Online advertising o TV advertising o Others

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10.What motivates you to buy products online? o Easy payment o No hidden cost o No travel to store o Wide range of products o others

11.Do offers and discounts coax you to buy online ? o Yes o No

12. Do the products sold online match with your shopping needs? o Yes o No

13. DO the products sold online match with your lifestyle needs? o Yes o No

14. Does online shopping save time? o Strongly agree

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o Agree o Cant say o Disagree o Strongly disagree

15.Does it take more time to search a specific product? o Strongly agree o Agree o Cant say o Disagree o Strongly disagree

16. Does it take long time to deliver a product? o Strongly agree o Agree o Cant say o Disagree o Strongly disagree

17.Is it easy to make online transactions? o Yes o No

18. Does speed of internet affect online shopping? o Agree

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o Disagree

19.Do you face any problem while shopping online? o Yes o No

20. Do you feel online transactions are fully secure? o o o o Yes No May be Dont know

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