INTRODUCTION

Internet is a new information technology device that has brought a drastic change in the life
of people. It has become a part of modern life across the world. It has offered so many
benefits such abundant information, convenience, time saving, cost benefits, international
brands etc. The growth of internet usage has lead to e-commerce. Organizations need to
devise strategies with the focus on changes in modern life. Hence there is need to focus on
examining website factors and types of online buyers based on their frequency of purchase.
CONSUMER PERCEPTION
Consumer perception applies the concept of sensory perception to marketing and advertising.
Just as sensory perception relates to how humans perceive and process sensory stimuli
through their five senses, consumer perception pertains to how individuals form opinions
about companies and the merchandise they offer through the purchases they make. Merchants
apply consumer perception theory to determine
how their customers perceive them. They also use consumer perception theory to develop
marketing and advertising strategies intended to retain current customers and attract new
ones.

ONLINE SHOPPING

Online shopping has become increasingly popular, due to convenience (and often lower
prices). Especially in the holiday season, online shopping saves an individual the hassle of
searching several stores and then waiting in long queues to buy a particular item. 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.Online shopping has its drawbacks too, we cannot touch and feel the item, delay in
shipping, shipping charges make product expensive specially in low cost items, risk of losing
your money, Stolen your card details etc.Flipkart-4.94, eBay- 4.88, Tradus.in- 5.32,
Shopclues.com- 5.39, Infibeam-5.69, Homeshop18- 5.82, Yebhi-5.88 , Snapdeal-5.93,
Pepperfry-5.99 ,Indiaplaza.com- 6.06

1
REVIEW OF LITEREATURE

This chapter will mainly discuss on the study that are done by previous research of
other authors in the similar area of the present study. Throughout this chapter, there will be
comprehensive discussion on theoretical and practical views of previous studies done in
online shopping and offline shopping for apparels.
This study combines factors that other studies have done that will influence the
consumer's purchasing decision in online and offline stores for apparels. It includes the price
attractiveness, time saving, perceived risk, enjoyment and excitement, tangibility and high
interactivity.
According to Kotler (1974); Bitner (1992); Solomon, Suprenent, Czepiel and Gutman
(1985), assurance is important to capture confidentiality, shopping security, complaint
resolution, problem solving and warranties. In an online shopping environment, consumers
are not associated with a physical location while they are only communicating with a
machine and not human being (Ekeldo and Sivakumar, 2004). With the inability of
consumers to feel and touch the product in an online context because online retailing lacks
the tangible features, it makes it difficult to market those products on the internet.
(Lindstrom, 2001).

Parasuraman (2002) Stated that the motivations for this special issue and propose a
conceptual framework pertaining to the issue‟s theme. Using this frameworks a backdrop,
they then offer an overview of the remaining articles by segmenting them into categories and
discussing their relationship to the framework. They conclude by highlighting research
avenues for augmenting our understanding of marketing to and serving customers through the
Internet.

According to Magee (2003), the growth in the number of online shoppers is greater than
the growth in Internet users, indicating that more Internet users are becoming comfortable to
shop online.

Ryan (2004) conducted a research on the mosaic of institutional issues associated with
gaining credibility for internet marketing standards. Strong claims for a predominantly self-
regulatory approach are reviewed in conjunction with other factors that inhibit credibility,
namely: competing internet worldviews, weak moral coherency and offline ambiguity about
respective institutional roles, especially as regards moral dimensions of notions of regulation
2
 and self-regulation.

Wong and Sculli (2005) resulted that when there is the presence of promotional offers,
consumers will have higher intention to purchase in web-shopping; purchasing decisions and
choice making from alternative evaluations can be made easily when there is the presence of
promotional offers.

RESEARCH GAP ANALYSIS

1. To determine the factors influencing consumers to shop online.

2. To study the consumers perception towards the satisfaction level on shopping online.

3. To study the consumers’ perception towards problems faced on shopping online.

RESEARCH QUESTONS

1. How long have you been usingInternet?

2. On the average, how much time (per week) do you spend in surfing theWeb?

3. Have you purchased anything online ever?

4. How frequently did you purchaseonline?

5. Overall, were you satisfied with your experience of onlineshopping?

SCOPE OF THE STUDY

The study involves different types of online shoppers based on frequency in business to
consumer (b to c) market segment. The respondents involved in this research study were
selected from the Hyderabad with the condition of having had experience in online
shopping.The present study covers only select online durable goods shopping in
Hyderabad.To determine which factor influences the consumer to go for online shopping.

3
 OBJECTIVES OF THE STUDY

The research has following objectives.

1. To study the customer satisfaction towards online shopping.

2. To analyse the customer reachability through online shopping.

3. To study the product quality consumer by the customer through onlineshopping.

HYPOTHESES

H0: There is no customer satisfaction towards online shopping.

H1: There is customer satisfaction towards online shopping.

RESEARCH METHODOLOGY
SampleDesign

I have prepared this project as descriptive type, as the objective of the study

SampleUnit

For studying consumer perception on online shopping, samples were selected from
Hyderabad

SampleMedia

The respondents in the samples are reached through personal interviews.

SamplingMethods

Sampling methods fall under two broad categories-

a) Non-probability samplingmethods.

b) Probability samplingmethods.

4
Sample size-100

Research place-Hyderabad

TOOLS: Factor analysis

3.3 GAINT PLAYERS IN INDIAN ONLINE SHOPPING

Flipkart.com is an e-commerce website founded by SachinBansal and

BinnyBansal in 2007. Both are from IIT Delhi Alumni and also worked in
Amazon.com.

FlipKart.com Flipkart.com ranks #502 in world according to

Alexatrafficrankings.InGooglepageitranks#6.

It forms advertising revenue of $4.8 million. It

receives 2.2 million page views in a day and generates $6,574 in advertising revenue
every day. Moreover it has certain losses 0.60% in traffic ranking. Loading time of an
average pageis

2.1 sec as it is much faster than 29% of sites

around the world. The mode of payments include Credit card, Debit card, Net
banking, e-gift vouchers, cash on delivery.

5
eBay is an online shopping website a consumer to consumer corporation which
helps thepeople

and businessman to buy and sell products

worldwide. It is operated to almost 30countries.

Ebay.in

eBay ranks #544 among Alexa traffic ranking. In

Google it has pagerank #6. The advertising
revenue inculcated was about $4.4 Million.
Moreover it receives 2 million pageviews per day

which generates $6,066 in theadvertisement

revenue. Recently it has shown 15.13% growthin

trafficrank.Thepageloadingtimeisupto2sec

which is likely faster than 24% sites across the world.

Snapdeal deals with online marketing of

products including Mobiles, Electronics,
Fashion accessories, Apparel, Footwear, Kids,
Home and Kitchen, Sports, Books; and services
like Restaurants, Spas & Entertainment. Itwas
Snapdeal.com

launched by and
KunalBah
l,a

6
Wharton graduate

of IIT Delhi, in

It ranks #576 in the world as per Alexa traffic ranking.It ranks # 5 in Google
PageRank. The advertising revenue is about $4.2 million. It receives 1.9 million page
views in a day and generates $5,729 in advertising revenue. It has suffered loss of
4.16 % in traffic ranking. The loading time of an average page is 1.6 sec which is
faster than 46% of sites across theworld.

7
It is an online shopping commerce for Home; Lifestyle & Fashion e-retailer
founded in 2009 BigShoeBazaar.com has a user base of about 1.5

million people. Yebhi.com offers lifestyle &

Home products and products from a range of some 250 brands to its customers
dealing in Shoes, Apparels, Bags, Mobiles, Cameras,

Sunglasses, Watches, Home furnishing,Home

decor, Home ware, Lingerie and Fragrances.

It ranks #1,782 among Alexa traffic ranking. It

ranks #4 in Google page ranking. Advertising revenue is about $1.4 million. It

receives 617,284 page views per day generating $1,852 in advertising revenue. It has
recently shown 6.70 Growth among traffic ranking. The page loadingis

about 2 sec which is faster around the world. than 39% of sites

The International giant eCommerce retailer recently stepped into India with a
Indian version site www.amazon.in, since the launch, amazon.in has seen a nice
growth

in the number of custom rs.Amazon.com e

too had a huge number of Indian customers evenbeforeitlaunchedstoreinIndia.The

store hosts wide range of productslike

Electronics, Mobiles, Laptops,

Books,

Fashion, Jewellery, Kitche ware and more n

8
A reputed online shopping retail websitehaving

headquarter in Gurgaon,Shoplues.com
c
maintains

more than 12,000 merchants who are registered with the company. It is one of the top
ecommerce websites in India, which deals in more than 2 million products. They guarantee
authenticity of products, warranty and evenensurelowestprice.Theyevenhavearecordof

catering to more than 42 millio company has even online

n visitors. The
more than 350 registered

employees across the country. They offer wide range of branded products to consumers from
every corner of thecountry.

9
Shopclues.com initiate free delivery services at the doorsteps of customers
through reputed courier

services to nearly 10,000 cities across the country.

They even initiate a 30-day return guarantee if unable to meet customer

satisfaction. One of
the

leadingonline shopping o cmpanies

inIndia,

Shopclues.com accepts online payment through major credit and debit cards, including net
banking services. The online shopping website service employs more than 400 personnel for
effective handling of the business and is even funded by national institutional investors.

Myntra is an Indian E-commerce site. It is

regardedasIndia’stop3rdonlinesitetoshop

products. Myntra allows its users tochose

varieties of dress.Onecan c hoose any

typeof

dress of any brand from Myntra. The best thing about Myntra is its product quality
and service. Now, Myntra is merged into Flipkart tocompete

Amazon, but myntra.com is still running asa

separatewebsiteandentity.Buyingclothesand

gifts online can be bestdone

10
 ia Myntra.

HomeShop18is the e
onlin v

& on-air
retail

marketing and distribution venture of Network

India’s first 24 hour Ho channel on April 9, 2008. H me Shopping TV

omeShop18 offers

innovative, differentiated and demonstrative retail experiences on TV and internet and

has emerged as the largest multimedia retailer in India with a user base of 2.5 million
users and some prestigious awards.

HomeShop18 is a venture ofthe Network18

Group, India’s fastest growing media and

entertainment group that operates

India’s

leading business news television channels

like CNN-IBN, CNBC TV18 and CNBC

Awaaz .

11
CHAPTER-2

DATA ANALYSIS

THE INTERNETUSAGE

The objectives of the research were studied with respect to a regular online shopper who
Sshopped more than once because they would be the right respondent to give an insight about
the online shopping. Therefore it is firstly important to understand who is a regular online
shopper. In the survey the respondents where asked the following questions which helped to
know about a regular shopper.

1. Q.1 Do you useInternet?

◻Yes 98% ◻ No 02%

yes
no

INTERPRETATION

The above pie -chart represent that 98% consumers had used the internet. The uses of
internet is a vital thing in todays competitive era. The rapid uses of computer has make the
internet well known to others. While as the influence of social media and mobile internet
makes the uses of internet more popular. The 02 % people were never uses the internet from
the study of 100 individualrespondent.
12
 2.How long have you been usingInternet?

a) Less than1year 3 – 5years

b) 1 –3years More than 5years

90% Les
2% s 1–3years
6% 3–5years
14% 78%
More than

80% than1year 5years

70%

60%

50%

40%

30%

20%

10%

0%

INTERPRETATION

The diagram shows that shopping has increased with the usage of Internet over the years.
Regular shoppers who have been using Internet for more than one year had shopped to 98%
and regular shoppers who have been using Internet for more than five years have shopped to
78%. Internet is not a new concept for these regular online shoppers and they have been using
it for more than 5 years now. The increased usage over the years has lead to an increase in
shopping, as these regular shoppers are able to make use of the various e-commerce
activities.

13
3.On the average, how much time (per week) do you spend in surfing theWeb?

0 –5hours 16 – 20hours

6 –10hoursMore than 20 hours

11 – 15hours

40%
25% 0-5
4% 6 -10
12 % 11-15
20% 1 28
6 -20
% 36 %
More

35%
20% hoursa hoursa hoursa hoursa tha n 2 0
week week week week hou rsa
30%
15%
w e ek
10%

5%

0%

INTERPRETATION

The research shows that 36% of the online shopping had been done who use Internet for
more than 20 hours a week and 96% of the shopping has been done by regular shoppers who
have been using Internet for more than 5 hours a week. As more the regular online shopper
are using the Internet it is seen that they end up buying more also. This shows that Internet is
becoming an integral part of the daily activity of the regular online shopper. The regular
online shoppers who have been using Internet for more than 20 hours are more comfortable
and confident as a result they purchase more online as compared to who use Internet for less
number of hours.The study shows that the growing usage of Internet has lead to increase in
online shopping as seen above. There is a positive relation between increase usage of Internet
and online purchase. The marketers should capture this enormous growth, which can be
brought by the penetration of broadband and lowering the prices of computers. Thus increase
in usage of Internet over the years and the more time spent has lead to an increase in
shopping. But one needs to know whether online shopping is an integral part of regular
shoppers or not this understood as follows.
14
4.Have you purchased anything onlineever?

NO
35%

YES
65%

INTERPRETATION

The research showed that 65% of the Internet users had shopped online while 35% had not
bought anything. This is mainly because of the changing lifestyle and taste patterns. As the
life is getting more and more fast paced more people are moving on to shop online mainly
because of convenience. This shows that a more Internet users are using it as a shopping
medium and there is a huge potential in this sector but one should not be carried away by this
figures. There could be a possibility that only a small section of the online shoppers are
shopping or only a particular category of good had brought about this huge number. As a
result the entire analysis was done incase of a regular online shopper to understand the

shopping behavior of the online shoppers.

The following question helped to understand who is a regular online shopper among the 65%
who had indulged into online shopping.
Q5What are the activities that you use Internet for?

20%
Finance
Entertainment
14% Shopping
10% Communication
32%
24%
Gathering
Inf ormation

INERPRETATION:

The Internet offers four basic services communication (socializing service with peer group or
core group (email) or with new groups of people (chat), information services, entertainment
services and commerce services and shopping. The research shows 32% of the regular online
shoppers use Internet for communication while only 10% uses it for shopping which shows
that communication still forms the major activity among the regular onlineshoppers.
Fig. 6 Online Activities by Age

70% communication Information Finance Shopping

18-30years
gathering

60%
31-40years

50%

41-50years
40%

above 50
30%
years

INTERPRETATION:
20%
This classification further provides an insight that Internet is mainly used as a means of
communication in respect all the age groups of the regular online shoppers. It contributes to
10%
60% of the major activity among the regular online shoppers who lie between the age group
18-30 years. It could be seen that shopping as a basic activity on the Internet contributes to
0%
the minimum. Internet as a medium of shopping is maximum used by regular online shoppers
between the age group18-30 years, which is 18% while above 50 years it is used just to 2%.
The increase in usage among the 18-30 years is basically due to high awareness. The
marketers should focus mainly on the age group between 18-30, as they are the main drivers
for growth. Thus the research shows that though the regular shoppers are using the Internet
for quiet some time now but shopping still remains a small part of the majoractivity
Q7. Online Activities by TimeOn the average, how much time (per week)
do you spend in surfing theWeb?

80%
90% 0-5 hours 6-10hours 11-15 16-20 morethan
Communication
70% hours hours 20hours Information

60% Entertainment

Finance
50%
Shopping
40%

30%

20%

10%

0%

INTERPRETATION:

It is evident that regular online shoppers also spend a major part of their time in
communication unlike the occasional online buyers. In 0-5 hours a week they spend 77% of
their time in communication, which includes email, and chat as the major activity with
shopping which does not seem to exist at all. Information search constitute 20% of the time.
The information search increases as the regular online shoppers tries to figure out ways to
surf the Internet and access the information they require. It is true that more regular online
shoppers use Internet shopping sites to gather information about products rather than to make
a direct purchase.

But it is to be noticed that as the time spend increases communication falls and other activity
picks up like entertainment and finance. One could see from the graph that between 16-20
hours a week communication falls further but information search also falls as the regular
online shoppers becomes more focused in their information search rather than wandering
aimlessly in the Internet space. They continuously use search engines for routine information
needs. The time spent on entertainment increases marginally to 18%. As the people spend
 more time it has been seen that activities like shopping and finance related needs increases.
The regular online shoppers who use the Internet for more than 20 hours a week has shown
that they have indulged into more shopping i.e.10%. It is true that as the regular online
shoppers spends more time on the Internet there is a possibility that they would end up
buying more as they are ease with the use of internet. Increased usage of Internet is positively
related to the buying behavior on theInternet.

Analysis-

It is true that increase in internet has lead to an increase in the online shopping as 78% of the
online shopping has been done by the regular online shopper who have been using internet
for more than five years and 36% of the online shopping have been done among the regular
shopper who uses the Internet for more than 20 hours a week. Thus increase in usage of
Internet has lead to an increase in online shopping. But shopping still constitute a small
amount of the major activity on the internet as 32% of the regular online shoppers uses
Internet for communication while only 10% uses it for shopping. Communication still
constitutes the major activity on theInternet.

DemographicFactors

Online behavior is affected by demographics i.e. by gender, education and income.

Hypotesis

1. More male Internet users are frequent online buyers than female Internetusers.

2. Regular online buyers are better educated than occasional onlinebuyers.

3. Income is higher in case of a regular online shopper than occasional online buyer.
Q. 8 Online Shopping & Gender

28%

Female

72%

Among the 65% of the online shopping, males (72%)had purchased

Male more as compared to
women (28%). This shows that it is true that more males are shopping online as compared to
women. This is mainly because women still like to feel, see and touch the product before
buying. It was noticed that some of them felt shopping as a reason to go out with the family
and spend time together, which was not possible in case of online shopping. As more and
more Indian women are flocking to Internet there is a possibility that they might end up in a
purchase. Also an increase in the spending power in the hands of the women might lead to an
increase in the online shopping. The research showed that 28% of the women who shopped
online fall mostly in the service and executive class with an income above Rs10,000. The
marketers should make sure that they produce the item keeping in mind the needs of the
women population as they still continue to be an important decision maker when shopping
for the family.
Q. 9 Online Shopping & Educational Qualification

54%
Postgraduate Matriculate
Non
3% Matriculate
8%Graduate
35%

INTERPRETATION:

Educational difference is a significant demographic variable, which shows that regular

shoppers who were better educated made more purchases online. 89% of the shopping has
been done by the regular shopper whose is educated with a graduate or postgraduate degree.
This shows that frequency of purchase is more in case of a higher educated regular shopper
as compared to a online shopping done by a regular online shopper with matriculate (8%) and
non matriculate(3%).
Q. 10 Online Shopping & Income

40
35
5
0 1 Student
3 8 2 21 38
Service/Executive 1 Business
1 15 11Others
3 11 less5000
5 5
14 5000-10000

30 10000-25000

above25000

25

20

15

INTERPRETATION:
10

Income and buying behavior are positively related. It was seen that a regular online shopper
with a higher income had purchased more online as compared to lower income online
shopper. This trend was seen in all segment of the population. It is true that more the income
in the hands of the population they would indulge in shopping. The service class had done the
major purchase in all the various levels of income. It can be seen that hardly any purchase is
done among the regular online shopper whose income lies below Rs5000.

Analysis-

Thus three hypotheses stated were true in case of the regular online shopper and it can
interpreted that online shopping is effected by demographics like gender, education and
income levels. Among the 65% of the online shopping, males (72%)had purchased as
compared to women (28%). There is a positive relation between education and income of the
online shoppers. 89% of the online shopping was done among the regular shoppers who were
educated with a graduate or postgraduate degree compared to 11% shopping who were
matriculate and non-matriculate. A 60% of the shopping was done by the regular shopper
who had income more than Rs 25,000 than 40% who had income less thanRs.25,000.
Motivating & SatisfactionFactors

To identify the factors which Internet users choose to buy or not buy online and how
frequently they make such purchases. Analyzing the importance of satisfaction level in the
online purchasingenvironment.

Hypothesis

Consumers who make frequent online purchases are higher in convenience orientation than
those who purchase occasionally.
Q 11What is your main motivation for buying throughInternet?

26% selection
12%
7% Price
23% 32%

Product
Saves Time Superior
Comparison Convenience

INTERPRETATION:

It is believed that consumers whether online shoppers or non-online shoppers value price to
convenience but the study contrast this popular belief. The study showed that 32% of the
shopping had been done by the regular shopper who think convenience is the main driving
force while 23% of the shopping had been done for whom price was the main orientation for
shopping online. Other motivating forces, which had lead to online shopping, were saves
time (26%), product availability and superior selection (12%), and product comparison (7%).
Convenience here is characterized as ease of purchase, home delivery and ability to shop
24x7. These factors motivate the regular online shopper to buy over the Internet and regular
online shoppers who value convenience are more likely to buy on the web, as compared to
occasional online shoppers. Every connection is a potential for net shopping. Therefore the
companies should attract and retain its regular online shoppers, as the Internet is a tangled
jungle of web sites, which is possible at a click of a mouse. They should design strategies and
develop products keeping in mind the convenience factors.
Q. 12 What, according to you, are the most important barriers to purchaseonline?

14% 9% 16% Others

7% 21% Privacy&
33%

Hassle of Inability to
Unfamiliar
returning Lack of touch & feel Security

Customer

Service

INTERPRETATION:

The main areas for concern in respect of the regular online shoppers while shopping were
privacy and security (33%). Most of them still preferred the conventional method of
shopping like the touch and the feel factor (21%). They felt that it is possible to see, feel,
touch and try the products before buying in a shopping store as compared to Internet
shopping. Other reasons that concern the regular online shoppers were inability to reach the
customer service (16%), hassle of returning the product (14%), technical foul –ups, hesitant
in purchasing from an unfamiliar source and person and delivery costs. The marketers should
formulate such strategies so that the privacy and security concern can be taken careoff.
Fig. 13 Convenience- The Motivating Factor

80%
60%
40%
10%
0% Onlyonce 74% More than
20%
12% 2-4 times 48%
5% Morethan9%
purchase
70%
50%
30% 5% 5times 6times
27%

20%
convenience

INTERPRETATION:

It has been seen that there is a positive correlation between the frequency of purchase and the
convenience factor for buying in the Internet arena. The regular online shopper who had
purchased more than 6 times (9%) for them convenience is the most important motivating
factor (48%)for shopping on the Internet. Convenience has been characterized as ease of
purchase, home delivery and ability to shop 24x7. The online shopper believes that large
amount of information about the product and the ability to compare prices is available at a
click of a mouse thus making the entire shopping experience very convenient. Thus the
marketers to should keep the convenience factor in mind while providing the goods
andservices.

SatisfactionIndex

It is important to understand the satisfaction level among the regular online shoppers, which
had lead to online shopping. This could be understood by the satisfaction index and the
frequency of purchase among the shoppers.
Fig. 14 Satisfaction Index

12%
31% 2% 55%

Dissatisfied
Neither Highly Satisfied
Satisfied
Satified nor
Dissatisfied

INTERPRETATION:

A 55% of the regular online shoppers were satisfied with 12% dissatisfied. An important
thing to be noted is that only 2% of the regular online shoppers were highly satisfied while
31% of the regular online shoppers were neither satisfied nor dissatisfied. This shows
satisfaction level plays an important role in online shopping with more regular shoppers
falling under the category of satisfied. This shows that they were overall satisfied by the
experience of shopping online. But the companies should take measures so that the
dissatisfied and the neither satisfied nor dissatisfied category of regular online shoppers could
be moved to satisfied or highly satisfied. A note should be taken that only 2% of the regular
online shoppers are highly satisfied which shows that there are still concerns, which poise the
regular shoppers from using the Internet frequently as a shoppingmedium.

Satisfaction level can also be measured by the frequency with which the online shoppers
purchase online. According to human psychology it is true that frequency of purchase
depends upon the satisfaction level received. According to the figure 2 (already explained), a
74% of the regular online shopper has purchased 2-4 times and 9% had purchased more than
6 times indicating that an increase in the confidence level and accepting the Internet as a
shopping medium. The increase in the frequency of shopping was mainly because they were
overall satisfied by the entire shopping experience
Analysis-

It is seen that the main orientation for buying among the regular online shoppers were
convenience (32%), saves time (26%), price (23%), product availability and superior
selection (12%), and product comparison (7%). The hypothesis stated that convenience is
major factor motivating the regular shopper was true as 75% of the regular online shoppers
who have shopped more than 5 times felt it was necessary as compared to 25% who shopped
less than 5 times.

The barriers to online shopping as stated by the regular online shopper were privacy and
security (33%), inability to touch and feel the product (21%), customer service problems
(16%), hassle of returning the product (14%), purchasing from unfamiliar source and person
(9%) and other problems (7%).

Satisfaction level plays an important role in online shopping, as 55% of the regular online
shoppers that are satisfied tend to purchase more. It can also be seen that 74% have shopped
more 2-4 times and 11% had shopped more than 5 times showing that satisfaction level plays
an important role in online shopping.

6.4 Future and growth of Online Shopping

This can be understood by the categories of good bought by the regular online shoppers
presently and the future of the various categories.
Fig. 15 Present & future categories of Goods

Books R a ilw a y
1 2 0% P re As irelin
nte E le c t r o n ic
F u ture Gifts M o v ie s
tickets t ic k e t s Gadgets t ic k e t s

1 0 0%

80%

60%

40%

It is seen that railway tickets 70% and airline tickets 93% are the most popular categories
among the online
20% shoppers followed by books and electronic gadgets. This is the main
category, which is bringing about online shopping culture among the regular online shoppers.
The companies0%should bring out innovative ways so that there is a growth in other categories
of goods also. The entire shopping culture among the regular shoppers is brought mainly by
the travel categories followed by electronic gadgets. The graph shows that online shopping is
tend to grow in the coming years as consumers want to buy more in the future.
Table 1 Future Categories of Goods

Railway tickets 83%

Airline tickets 80%

Electronic Gadgets 50%

Books 43%

Gifts 33%

Movies tickets 30%

Jewellery 23%

Computer Software 20%

Hotel Rooms/Car Rental 20%

Event Tickets 13%

Toys 13%

Infant / Child items 10%

Food / Groceries 7%

Accessories apparel 3%
 CD/Videos 3%

Magazines 3%

Home tools and products 3%

Sporting goods 3%

The table I shows that shows that there is a future growth in the electronic gadget and book
categories also apart from railway and airline tickets, which continues to be on the priority
list. There is a growth in these categories because traditionally products like audio-video,
apparel, and computer accessories were purchased through catalogs and other forms of direct
mail but toady online shopping serves a convenient means of distribution channel. Another
reason for the growth in these categories is because of well-established sites for travel, audio-
video (e.g., CD-Now), and computers (e.g.www.dell.com,www.sonyvaio.com), which lure
the consumers to buy these products. These goods do well because consumers are not
bothered much about the touch and feel factors, which generally drive the shopping in India
unlike categories like apparels and groceries where it still remain an important factor while
purchasing. It is difficult to change the set mindset of consumers for certain categories of
goods but still companies should keep innovating and find means and ways to attract more
onlineshopping.

Analysis-

There is a future growth in online shopping which can be especially seen in the travel arena
with railway 83% and airlines 80%, electronic gadgets (50%)and books (43%). Gifts also
seem to show a growth in the coming years. Thus the marketers should mainly focus on these
growing categories of goods, which would drive the online shopping in the future.
 FACTOR ANALYSIS

The present study is descriptive in nature as it seeks to study the consumer perception
regarding online shopping in Hyderabad of India. In the present study, a sample size
of 100 consumers has been taken from Hyderabad and primary data has been collected
through structured questionnaire .Data has been analyzed with the help of factor
analysis.

I. Factor Analysis On Constituents Of OnlineShopping

Table 1: Eigen value with cumulative percentage of variance
Component Eigen value % of variances Cumulative %

1 9.652 21.937 21.937

2 2.819 13.506 35.442

3 2.061 10.079 45.521

4 1.664 8.126 53.648

5 1.509 3.43 57.077

6 1.443 3.279 60.356

7 1.396 3.174 63.53

8 1.259 2.861 66.391

9 1.185 2.693 69.084

10 1.125 2.557 71.64

The result of the analysis present in the table shows that mainly the emergence
of ten factors accounting for 71.64% of the cumulative variance. The rotated
component matrix for online shopping is shown in separate table. The variables
constituting a factor have been cumulative by allocating them to the factor where they
have highest factor loadings. In case a variable came under more than one variable,
the same was allocated to the factor where it could have fitted on the basis of logic
and reasoning. The factor and the loading of the constituents are shown in next table.
Table -2 Factors loading of online shopping
Sr. No. Constituent variables Factor loading Factor Extracted

1  Online shopping provide best quality ofproducts 0.795 Quality

 Online shopping provide best quality whenreceive 0.777

 In last 6 month I have done onlineshopping 0.514

2  I feel very knowledgeable about onlineshopping 0.627 Convenience

 It is easy to deal with onlinetransaction 0.538

 Shopping through internet savestime 0.605

3  I feel satisfied with the decision to purchasethrough 0.559 Satisfaction

onlineshopping

 I prefer online shopping because we can purchase anytime

0.548

 Online shopping is easy way toshop

0.509

 Using online shopping enhance my shopping satisfaction

0.411

4  Shopping through internet provide me alarger selection than 0.771 Availability of products
traditionalstores

 Online shopping providewider products selection than

0.685
localstores

 Online shopping provide more variety ofproducts

0.601

5  I am concerned that the internet store ask to collecting to 0.836 Security & Privacy
much information fromme

 It bothers me when the internet store ask mefor

0.818
personalinformation

 Shopping through internet puts my privacy atrisk

0.554
 I am concerned that my personal information in the internet
store data base is notaccurate 0.821

 I am concerned that the internet store will sharemy

personal information with others companies without my 0.665

authorization

6  Online store deliver the order veryquickly 0.856 Quickness

  Online shopping sites secure and errorfree 0.570

7  Promotional offers always attractiveme 0.795 Attractive

 Online shopping provide various schemes andoffers on 0.592

purchases

 The shopping sites are attractive andclear

0.527

 Using online shopping improve my shopping experience

0.835

8  I find online shopping are moreflexible 0.681 Flexibility

 I can save a lot of money by onlineshopping 0.483

9  I purchase online shopping because I cannot find what I want 0.780 Spatial
in localstores convenience

 My experience with online shoppingvery understandable

0.552

 Online shopping generates awareness regarding latest 0.80 Awareness

products
10 0.47
 Shopping through internet is moreconvenient

II. Interpretations
Factor -1 (Quality) The factor loading of the first statements is 0.795 which is
highest so it represents that customer want high quality products from online sites.
Now a day’s consumers prefer those products which are very favorable in quality.
Factor – 2 (Convenience) This factor clearly shows that the consumers prefer online
shopping because they can find every type of products very easily and easy to deal
with online sites. The factor loading of the first statements is highest 0.627.Factor – 3
(Satisfaction) The third factors comprises of four statements related to providing
information on the websites and problem related to product replacement facilities. On
the basis of these statements the factor is named as satisfaction. The factor loading of
the first statements is 0.559 which is highest. Factor – 4 (Availability of products) The
fourth factor comprises also three statements. The factor loading of the first statement
is 0.771 and the second is 0.685, third is 0.601. All the statements show that positive
factor loading to each other. Now a day’s consumers prefer those products which are
available very quickly. Factor – 5 (Security& privacy) the factor five comprises three
statements. The all statements are related to security & privacy. The factor loading of
the first statements is 0.836 which is highest. Factor – 6 (Quickness) This factor
comprises of two statements namely as related to quickness. The factor loading of the
first statements is 0.856 and the second is 0.570 which shows highly positive loading.
The all statements show that quickness is the main important component in all type of
online sites. Factor – 7 (Attractive) The seventh factors comprises four statements.
The all statements related to each other and show highly positive affect to each other.
The factor loading of the first statements is 0.795 and the second is 0.592, third is
0527 and the last one is 0.835. Now a day’s consumer is purchasing more and more
products from online shopping sites because of attractiveness. Factor -8 (Flexibility)
The factor loading of the first statements is 0.681 and the second is 0.483. Now a
day’s consumers prefer those products which are find too easy from all sites. So this
factor name is flexibility. Factor – 9 (Spatial convenience) This factor comprises of
two statements which is related with the spatial convenience .Consumer prefers those
sites which provide faster deliver product
inminimumtime.Thefactorloadingofthefirststatementsis0.780andthesecondis0.552.Fac
tor–10
(Awareness) The factor loading of the first statements is 0.80 and the second is 0.47.
In this era consumers prefer those sites which provide latest and discounted products
as well as attractiveproducts.
7.0 FINDINGS

The findings show that Internet usage has increased over the years and it is leading to an
increase in online shopping and also shows the consumers attitude and perception towards
online shopping. Communication still forms the major activity among the large number of
online shoppers as 32% of regular online shopper use Internet for communication as
compared to shopping (10%).

Online shopping is affected by demographics as it has been seen that more males are
shopping online as compared women online shoppers and there is a positive relation between
education and income levels with respect to the increased online shoppingbehaviour.

The most important motivating factor, which influenced the online shopping, was
convenience followed by time saving and price. Regular online shoppers considered
convenience as the main motivating factor while buying and were less price sensitive. But the
online marketers should attempt to differentiate their products or services making the
comparison easier. The marketers should bring out innovative ways so that the consumers
can do more online shopping while taking the full advantage of rich information, easy access
and convenience of the Internet.

One of the main concerns among the online shoppers was privacy and security. Another
reason that hindered online shopping was the touch factor. Consumers still preferred the
experience they get from traditional stores like feeling the store’s atmosphere, interacting
with a salesperson, and seeking sensory stimulation. This might hinder the use of certain
goods like grocery and apparel, as the touch factor is the main factor, which drives the
shopping for these goods. The future of online shopping is bright especially in the categories
of travel, books, electronic gadgets andgifts.
SUGGESTIONS :

Online shopping in India is poised for greater acceleration as PC and Internet penetration
grows. It is becoming one of the top Internet activities and there is a huge growth in this
business as more manufacturers and providers are integrating the Internet into their sales
model. But there are many things that need to occur in online shopping to generate higher
revenues and the key to it lies in the hands of the marketers. To make online shopping a
boom following methods can be followed.

 India has a strong research and development (R&D) capability so companies

should innovate rapidly to take care of the security issues. Technology like text to speech
softwares should be innovated to take care of the securityconcern.

 Vendors should educate the customers about e-commerce like educating them on
safety tips like reading the item description, looking for a seller’s feedback score and asking
questions, detecting spoof mails and informing them about the new online crimes which
happenregularly.

 In India still the penetration of Internet has not happened the way it should have
been which hampers online shopping. E-commerce revolution can be brought about by
providing more broadband connections at affordableprices.

 The key to selling to a customer which cannot be seen is to get the customer to
trust the website with which they have electronictransactions.

 Active participation from consumer marketing companies to manufacturing

industries is required to make online shopping a boomingsector.

 Keep a print record of the transactions this would come handy in case of any
fraud.
CONCLUSION:

This research shows that online shopping is having very bright future

in India. Perception towards online shopping is getting better in India. With the use of
internet, consumers can shop anywhere, anything and anytime with easy and safe payment
options. Consumers can do comparison shopping between products, as well as, online
stores.This study is mainly focus on the factors from the Internet and examines those factors
that affect the consumer’s online shopping behaviour. The research focus on the Internet
shopping (include the nature of Internet shopping, E-commerce website, and online security,
privacy, trust and trustworthiness) and online consumer behaviours (include background,
shopping motivation and decision making process). Those factors were looked at, and
examined to reveal the influence at online consumer behaviours. In addition, the previous
researches were used to help researchers understanding more comprehensively
 BIBLOGRAPHY

1) Ramaswami&Namakumari, Marketing Management-Planning, Implementation and

Control, MacMillan India Ltd, NewDelhi

2) Bhatnagar, A, Misra, S., and Rao, H. R., ‘Online risk, convenience, and Internet
shopping behavior,’ Communications of the ACM2000

3) Alexandru M. Degeratu, ArvindRangaswamy and Jianan Wu (2000) Consumer

ChoiceBehaviour in Online and Traditional Supermarkets: The Effects of Brand Name,
Price, and other Search Attributes, International Journal of Research in Marketing, Vol. 17,
No.1, p. 55-78. Available at:
http://www.smeal.psu.edu/ebrc/publications/res_papers/1999_03.pdf

4) Aron M. Levin, Irwin P. Levin, and C. Edward Heath (2003) PRODUCT

CATEGORYDEPENDENT CONSUMER PREFERENCES FOR ONLINE AND OFFLINE
SHOPPING FEATURES AND THEIR INFLUENCE ON MULTI-CHANNELRETAIL

ALLIANCES, Journal of Electronic Commerce Research, VOL. 4, No. 3. Available

at:http://www.csulb.edu/web/journals/jecr/issues/20033/paper1.pdf

5)Ali S S, Models in Consumer Buying Behaviour, Deep & DeepPublications.

6) Kothari C. R., Research Methodology Methods and Techniques, WishwaPrakashan,

New Delhi.

7)www.wikipedia.com

8) www.amzon.com

9) www.flipkart.com

QUESTIONAIRE
 Kindly highlight/bold your answers.

1. Do you useInternet?

◻Yes ◻No

2. How long have you been usingInternet?

◻Less than1year ◻ 3 – 5years

◻ 1 –3years ◻ More than 5years

3. On the average, how much time (per week) do you spend in surfing theWeb?

◻0 –5 hours ◻ 16 – 20 hours

6 –10 hours ◻ More than 20hours

◻ 11 – 15hours

4. Have you purchased anything online ever?

◻Yes ◻No

5. Which category (ies) of goods have you bought throughInternet?

◻Books ◻ Railwaytickets

ElectronicGadgets ◻ Airlinetickets

CD/Videos ◻ ComputerHardware

Accessoriesapparel ◻ ComputerSoftware

Gifts ◻Magazines

EventTickets ◻ Movies tickets

HotelRooms/CarRental ◻ OfficeSupplies

Jewellery ◻ Food /Groceries

Infant /Childitems ◻ Home tools andproducts

 Sportinggoods ◻ Health and fitness products

Toys ◻ Any other,specify………………

6. When did u shop for the firsttime?

◻ Last 6months

◻ 6 months-1year

◻ 1-3year

◻ 3-5year

◻ More than 5year

7. How frequently did you purchaseonline?

◻ Onlyonce

◻ 2-4times

◻ More than 5times

◻ More than 6times

8. Overall, were you satisfied with your experience of onlineshopping?

◻ HighlySatisfied

◻ Satisfied

◻ Neither satisfied nordissatisfied

 ◻ Dissatisfied

◻ HighlyDissatisfied

9. Where do you most often access theInternet?

◻Home ◻Cyber-cafes

Office/College ◻Any other,specify………

10. What are the activities that you use Internet for? (Kindly rank them between 1 to
5,with 1=most used, 2=used to a large extent, 3=used to a good extent, 4=usedsometimes,
5=rarelyused)
 Communication (E-mail, Instant Messaging, Bulletin Boards, News Groups, Chat, etc.)
Information Gathering (Research, News, Sports scores, Search for employment, etc.)

Entertainment (Games, Adult entertainment, Entertainment sites, Sports, Music, Web page
design, etc.)

Finance (Investment portfolio, financial research, online banking, check stock/fund quotes,
trading, etc.)

Shopping (Researching purchases, purchasing, auctions, Selling, Classifieds, etc.)

11. Which category (ies) of goods are you planning to buy through internet in thenear
future?

◻Books ◻ Railwaytickets

ElectronicGadgets ◻ Airlinetickets

CD/Videos ◻ ComputerHardware

Accessoriesapparel ◻ ComputerSoftware

◻ Gifts ◻Magazines

EventTickets ◻ Beautyproducts

Moviestickets ◻ Health and fitness products

HotelRooms/CarRental ◻ OfficeSupplies

Jewellery ◻ Food /Groceries

Apparelgiftcertificates ◻ Pharmaceuticals

Infant /Childitems ◻ Home tools andproducts

 Sportinggoods ◻ Homeappliances

Toys ◻ Any other,specify………………

12. What is your main motivation for buying throughInternet?

◻Convenience (ease of purchase, home delivery, ability toshop 24x7) ◻ Price

◻ Savestime

◻ Superiorselection/Availability
 ◻ Productcomparison

◻ Any other,specify………………

13. What, according to you, are the most important barriers to purchaseonline?

◻ I am worried about giving out my credit cardnumber

◻ I don’t have a creditcard

◻ I don’t like providing personalinformation

◻ I don’t want to purchase from someone with whom I am notfamiliar

I enjoy going out to do myshopping

◻ I like to see/touch the product in person, before I buyit

◻ Internet is too slow / Pages take too long toload

◻ I am worried about the cost/hassle of returning theproduct

◻ Delivery costs are toohigh

◻ Prices are toohigh

◻ Technical foul-ups prevent transactions from goingthrough

◻ I can’t find anything that I want to purchase on theInternet

◻ I don’t know how but I am uncomfortable about purchasing throughInternet

◻ The process is expensive due to cost ofaccess

◻ Any other,specify…………

PERSONAL DETAILS

14. Age:
◻ Below 18yrs

◻ 18 - 30yrs

◻ 31 - 40yrs

◻ 41 – 50yrs

◻ Above 50yrs
15. EducationalBackground:

◻ Non-Matriculate

◻ Matriculate

◻ Graduate

◻ Postgraduate

16. Occupation:

◻ Business/SelfEmployed

◻ Service/Executive

◻ Student

◻ Any other,specify………………

17. Gender:

◻ Male

◻ Female

18. Average MonthlyIncome:

◻ Less than Rs.5,000

◻ Rs. 5,000 – Rs.10,000

◻ Rs. 10,000 – Rs.25,000

◻ Rs. 25,000 – Rs.50,000

◻ Above Rs.50,000

Name: ContactNo.: City: