INSTITUTE FOR FUTURE EDUCATION ENTREPRENEURSHIP &

LEADERSHIP, LONAVALA, INDIA

A Research on Online
Buying behavior of
Consumer’s in India
Research Proposal
Sahil Maini
PGDM 2012-2014

Under the Guidance of

Prof. Sachin modgil & Prof. Ajitabh Dutta

13
PROPOSED TITLE:
“A research study on online buying behavior of consumer’s in India”

Abstract
Consumers are playing an important role in online shopping. The increasing use of Internet by
the younger generation in India provides an emerging prospect for online retailers. If online retailers
know the factors affecting Indian young consumer’s buying behaviour, and the associations between
these factors and type of online buyers, then they can further develop their marketing strategies
to convert potential customers into active ones. The four key dimensions of online shopping as
perceived by young consumers in India are identified. Besides that It is discovered that website
design, website reliability, customer service and trust are the four key factors which influence
young consumers’ perceptions of online shopping. The present paper focuses of the factors,
challenges and measures to be taken by retailers to understand online buying behaviour of
consumers in India.
INTRODUCTION
With an increase in use of internet as means of communication with consumers, the field of E-
commerce, online buying has experienced a rapid growth in the recent years. Its well known that
online business i.e. business to consumers is increasingly growing at a very high speed. There
is a huge purchasing power of a youth population aged 18-40 in the urban area. The people
have taken a long time to understand and accept the advantage of E- commerce. The cost of
internet usage is also getting lower, with good competition among the providers. 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’s online buying is crossing the overall
global averages.

According to a study, “About 44 percent students use Internet in India and overall 72% of young
people access Internet on regular basis. It has been seen that due to excess use of internet by
the young generation, the buying patterns have been changed. It has changed the way goods are
purchased and sold, resulting to the exponential growth in the number of online shoppers.
Attitude toward online shopping and goal to shop online are not only affected by ease of use,
usefulness, and enjoyment, but also by other factors like consumer individuality, situational factors,
product distinctiveness, previous online shopping understanding and faith in online shopping.
Therefore, understanding whom are the ones consuming and why they choose to use or keep
away from online shopping. Many companies have their online buying portal providing the
platform to consumers to buy the products online.

PROBLEM STATEMENT:
The purpose of this research is to understand on what parameters does consumers purchase online
and also their preference and what motivates consumers to shop online for different products.

OBJECTIVE:
The Objective of this research are-

1. Identify the behavior of consumer over online purchase preference.

2. Identify the parameters that motivates the consumers to buy online instead of retail
stores and super markets

3. Evaluate the impact of these parameters on the level of acceptance or willingness or

preference of this new form of shopping.
SCOPE
Even Though E-commerce is booming industry in India, but still it has a long way to go.
According to a study, “About 44 percent students use Internet in India and overall 72% of young
people access Internet on regular basis. It has been said by ASSOCHAM (The Associate Chambers
of Commerce and Industry of India) in its report, that the Indian retail market would grow by
around Rs 7000 crore by 2015 in which they contacted 500 respondents in 10 different cities
and it was seen that Mumbai was the top most city for online shopping and also according a
recent survey by Google India and TNS has found that online shopping more than doubled in
India in 2012. There were many segments where the increase was limited but Electronics, home
furnishing, healthcare and baby products are some of the segments that saw a 100 per cent
increase in search volumes on Google.

Online shopping has hit a tipping point and will see exponential growth in 2013-2015, a new
study by search firm Google India. According to a study, compiled by Google India along with
TNS, highlights exponential growth in interest in online shopping by Indians as per data recorded on
Google Trends. The study says that online shopping in India saw 128% growth in the period between
2011-12, compared to only 40% growth the previous year. Apparels and accessories (30%) emerged
as the second biggest product category after consumer electronics (34%) and is expected to become
bigger than consumer electronics this year. Other popular searched categories include books (15%),
beauty & personal care (10%), home & furnishings (6%), baby products (2%) and healthcare
(3%).

Even during our data collection, we have got the data of respondents that Many youths of the
respondent youths had made an online purchase earlier. Thus, understanding the attitude towards
online purchasing of other consumers of the total respondents were based on the kind of past
experience online .

Review Of Literature:
The current literature on consumer online purchasing decisions has mainly concentrated on
identifying the factors which affect the willingness of consumers to engage in Internet shopping.
In the domain of consumer behaviour research, there are general models of buying behaviour that
depict the process which consumers use in making a purchase decision. These models are very
important to marketers as they have the ability to explain and predict consumers’ purchase
behaviour. The traditional framework for analysis of the buyer decision process is a five-step model.
The information gathered provides the basis for the evaluation of alternatives. Finally, post-
purchase behaviour is critical in perception the marketing perspective, as it eventually affects
consumers’ of satisfaction/dissatisfaction with the
product/service. This classic five stage model comprises the essence of consumer behaviour under
most contexts. Nevertheless, the management of marketing issues at each stage in the virtual
environment has to be resolved by individual E- marketers. Peterson et al. [1997] commented that it
is an early stage in Internet development in terms of building an appropriate dedicated model of
consumer buying behaviour. Decision sequences will be influenced by the starting point of the
consumer, the relevant
market structures and the characteristics of the product in question. Consumers' attitude towards
online shopping is a prominent factor affecting actual buying behaviour. Source

Todd [1997] proposed a model of attitudes and shopping intention towards Internet shopping in
general. The model included several indicators, belonging to four major categories; the value of
the product, the shopping experience, the quality of service offered by the website and the risk
perceptions of Internet retail shopping. In the research conducted by Vellido et al. [2000], nine
factors associated with users' perception of online shopping were extracted. Among those
factors the risk perception of users was demonstrated to be the main discriminator between
people buying online and people not buying online. Other discriminating factors were; control
over, and convenience of, the shopping process, affordability of merchandise, customer service
and ease of use of the shopping site. In another study, Jarvenpaa et al. [2000] tested a model of
consumer attitude towards specific webbase stores, in which perceptions of the store's reputation
and size were assumed to affect consumer trust of the retailer. The level of trust was positively
related to the attitude toward the store, and inversely related to the perception of the risks
involved in buying from that store and the attitude and the risk perception affected the
consumer's intention to buy from the store.

Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects
involving the privacy and security of personal information, the security of online transaction systems
and the uncertainty of product quality. One of the consequences of trust is that it reduces the
consumer’s perception of risk associated with opportunistic behaviour by the seller [Ganesan,
1994]. Lack of trust is frequently reported as the reason for consumers not purchasing from Internet
shops, as trust is regarded as an important factor under conditions of uncertainty and risk in
traditional theories.

In Internet shopping, there is not much information available to the buyer regarding the seller,
prior to purchase. A buyer with a high propensity to trust will more likely be a potential customer
than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, integrity
constitute the main elements of trustworthiness. Ability refers to skills, competencies and
characteristics that a seller has in a specific domain. In this context, sellers need to convince buyers
of the competence of their companies in the Internet shopping business. Sellers have to convince
buyers that they genuinely want to do good things for buyers, rather than just maximize profit.

Factors That Boost Online Shopping in India

 Rapid growth of cybercafés 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.
Few Facts About Online Shopping
The figures from IAMAI show that the internet users in India will grow to 200 million by 2015.
Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35year
range. Indian online matrimonial sector is worth around $230 million.

Online shopping has hit a tipping point and will see exponential growth in 2013-2015, a new
study by search firm Google India. According to a study, compiled by Google India along with
TNS, highlights exponential growth in interest in online shopping by Indians as per data recorded on
Google Trends. The study says that online shopping in India saw 128% growth in the period between
2011-12, compared to only 40% growth the previous year. Apparels and accessories (30%) emerged
as the second biggest product category after consumer electronics (34%) and is expected to become
bigger than consumer electronics this year. Other popular searched categories include books (15%),
beauty & personal care (10%), home & furnishings (6%), baby products (2%) and healthcare
(3%).

Changing Attitude towards Online Shopping Malls

Malls springing up everywhere and yet people are e shopping! In addition, not in small numbers
either. E-commerce figures are going through the roof, according to Assocham (Associated
Chambers of Commerce & Industry of India). Today ( the figures are touching Rs. 5500 crore,
but are expected to increase by 150 percent to Rs 7,000 crores. And two metros - Delhi and
Mumbai are driving the growth: 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? Well, Assocham says
that books are the hottest selling item on the internet. In fact most products bought and sold off
online are: books, electronic gadgets and railway tickets. However, people are also buying
clothes, gifts, computer and peripherals, and a few are buying home tools and products, home
appliances, toys, jewelry, beauty products and health and fitness products.

Traffic for E-Commerce sites is mostly coming from the two metros of
Delhi and Mumbai.
Here are few reasons for this :

1. Convenience It is the major reason.

Both the cities are spread out over a large area and the best stores in both these cities are often
concentrated in certain ‘posh’ areas. In Mumbai for example there are certain items you get only
in Crawford market which is at the other end of town in South Mumbai. And demographics show
that the population of Mumbai is now concentrated in the suburbs and Navi Mumbai. Ofcourse, huge
malls have come up in the suburbs as well, and India’s biggest mall Nirmal Lifestyle is in far-
flung Mulund but often you find a better choice of sizes and styles choice in other malls, say
Phoenix (central Mumbai). And though both Mumbai and Delhi have transport system,few
people like to travel for two hours just to get
to a shop at the other end of town. Clearly the transport systems leave much to be desired.
In Delhi, safety is also an issue for women traveling alone in the evenings.

2. Literacy Rate and the Cities’ Internet Savvy Population

Most cities in India have a higher literacy rate as compared to the national average of 64.8
percent. In fact Mumbai has a highest literacy even amongst the cities (86 per cent). Delhi too
has a high literate population (81.2 per cent). Oddly, although Bangalore has a higher literacy
rate than Delhi, at 83 per
cent, the city’s share of e-commerce is not very high. Kolkatta too has a literacy rate (80.8 per
cent) and so does Chennai (80.1 percent.) If one compares these rates to literacy rates of
cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73
percent) its clear why its the metros which are going to continue to lead eshopping.

3. Home delivery concept

In any case, home delivery is a concept that Indians are familiar with and love. The mall craze has
started only now.Earlier it was a choice between sweating it out in small crowded markets, or
asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this system is still
thriving.

4. Increase in the Internet users

Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet
users across India. The demographic segments that have witnessed maximum growth comprise
college going students and young persons. These segments are the users of advanced applications
and technologies online and are most likely to be heavy ECommerce users.

5. Increase in the number of buyers and sellers

The success of a marketplace depends on the presence of a large number of buyers and a large
number of sellers. In addition to online buyers, many offline stores have begun to sell their
products in the online marketplace. The greater the number of sellers and buyers, the faster the
market grows.

Product Preferences City Wise

 Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies,
bookings, actually just about everything.
 Well, Kolkata prefers to buy music and movies online
 Mumbai leads in all categories, except jewellery.
 Delhi seem to prefer buying jewellery online as compared to any other city

Attitude towards Online Shopping

Consumer’s attitudes toward online shopping have gained a great deal of attention in the
empirical literature. It is believed that consumer attitudes will affect intention to shop online and
eventually whether a transaction is made. It refers to: 1) The consumer’s acceptance of the Internet
as a shopping
channel 2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think
that shopping at this store is appealing). INTENTION TO SHOP ONLINE Consumer’s intention to
shop online refers to their willingness to make purchases in an Internet store. Commonly, this
factor is measured by consumer’s willingness to buy and to return for additional purchases.
The latter also
contributes to customer loyalty. Consumer’s intention to shop online is positively associated with
attitude towards Internet buying, and influences their decision-making and purchasing behavior. In
addition, there is evidence of reciprocal influence between intention to shop online and
customer satisfaction.

Online Shopping Decision Making:

Online shopping decision-making includes information seeking, comparison of alternatives, and
choice making. The results bearing on this factor directly influence consumer’s purchasing
behavior. In addition, there appears to be an impact on user’s satisfaction. Though it is
important, there are only five studies that include it. According to Haubl and Trifts (2000),
potential consumers appear to use a two- stage process in reaching purchase decisions. Initially,
consumers typically screen a large set of products in order to identify a subset of promising
alternatives that appears to meet their needs. They then evaluate the subset in greater depth,
performing relative comparisons across products based on some desirable attributes and make a
purchase decision.

Online Purchasing
This is the most substantial step in online shopping activities, with most empirical research
using measures of frequency (or number) of purchases and value of online purchases as measures
of online purchasing; other less commonly used measures are unplanned purchases Online
purchasing is reported to be strongly associated with the factors of personal characteristics,
vendor/service/product characteristics, website quality, attitudes toward online shopping, intention to
shop online, and decision making (Andrade 2000; Bellman et al. 1999)

Consumer Satisfaction
It can be defined as the extent to which consumer’s perceptions of the online shopping experience
confirm their expectations. Most consumers form expectations of the product, vendor, service, and
quality of the website that they patronize before engaging in online shopping activities. These
expectations influence their attitudes and intentions to shop at a certain Internet store, and
consequently their decision-making processes and purchasing behavior. If expectations are met,
customers achieve a high degree of satisfaction, which influences their online shopping attitudes,
intentions, decisions, and purchasing activity positively. In contrast, dissatisfaction is negatively
associated with these four variables (Ho and Wu 1999; Jahng et al. 2001; Kim et al. 2001).
Research Methodology:
Questionnaire method will be used to understand the consumer’s perception on online purchase and
the preference more given by consumers to what kind of material are more purchased online. The
data would be collected with the help of Survey and e-mails. We have received 34 responses
from 280 people.

Survey Administration:

The questionnaire comprised of 18 questions which measured responses for different factors of
frequency of purchase, payment methods, preferred products, average spending, hours spent on the
internet etc… The questions measuring respondent attitudes used Likert Scale (1-4), 23 statements
were given to respondents to measure their attitudes towards online buying, and a few factual
questions had dichotomous responses. The methods used for survey was questionnaire
administration with respondents filling out the responses themselves and online survey through
mail posting.

Sampling:

The survey was conducted on 34 respondents; sample was based on affordability criteria especially
on time constraints. Email invitations were sent to invite respondents on the Internet, and
employee, students were contacted for responses.

The hypotheses identified are as mentioned below: -

H0a – Youngsters have a positive attitude towards online shopping

H1a – Youngsters have a negative attitude towards online shopping

H0b – Influencers (fun, brands, time saving etc.) motivates online purchase.

H1b - Influencers (fun, brands, time saving etc.) does not affect online purchase.

H0c – Perceived risks (Online payment, quality ordered v/s delivered) hinders online purchase.

H1c – Perceived risks (Online payment, quality ordered v/s delivered) does not hinder online purchase.

The online survey form which was created is available on

https://docs.google.com/forms/d/1HMpy3GxFHouD8L030KRwGMvf1elj3M8ZXamk8QhikVQ/viewform.

The questionnaire was circulated online to around 380 email IDs of youth who were in the age
group of 20 to 34 years. Out of the total people approached only 34 responded.
 Statistical Tool for Research Methodology

Statistics is the study of the collection, organization, analysis, interpretation, and presentation of
data. It deals with all aspects of this, including the planning of data collection in terms of the
design of surveys and experiments.

Tools we will be using for this research are as follows:

1. Regression Analysis – Regression analysis is a widely used modelling technique and comes in
a variety of forms. The basic aim of this technique is to establish causal relationships between a
dependent variable, for example, sales, and one or more explanatory variables, for example
consumer spending, season of year, interest rates etc.
The technique can be used to gain a snapshot of the drivers of a variable under analysis. A successful
analysis will identify which issues best explain the movement in the dependent variable and so can
help a client decide which parts of their business to concentrate upon in order to improve sales,
satisfaction etc. Regression analysis is also commonly used as a forecasting tool.

2.Cluster Analysis – The factor analysis groups’ together different variables or research issues,
then cluster analysis is used to group together different observations, i.e. respondents or customers.
A cluster analysis will therefore look to divide an overall sample into sub-groups, where members of
each particular sub-group share similar views or behaviour. Once clusters have been formed an
analysis of the common characteristics of the members in each group can take place, allowing
identification of behavior amongst various customer ‘types’.
The technique is fairly adaptable in terms of the data we will use. As already mentioned, cluster
analysis can be utilised to look at overall conjoint findings. Any meaningful quantitative data from a
customer database or survey can however be used in developing clusters. Cluster analysis is
commonly used for market or customer segmentation, so it is important to produce a valid solution
whilst presenting the client with an actionable number of cluster groups.

3.Graphical Representation – This method will help us to understand the the data with the help
of graph.
DATA INTERPRETATION AND ANALYSIS

What is your gender

Male 23 70%
Female 10 30%

What is your Age?

18 - 24 27 82%
25 - 34 6 18%
35 - 44 0 0%
45 - 54 0 0%
55 - 64 0 0%
Above 65 0 0%

What is the highest level of education you have completed?

S.S.C 0 0%
H.S.C 3 9%
Graduation 19 58%
Masters 11 33%
In general, you prefer to do your shopping ?

Cosmetics 4 4%
Computer Products 10 11%
Jewellary 2 2%
Toys 2 2%
Electronics 13 14%
CD/DVD's 1 1%
Movie Tickets 16 18%
Online recharge 10 11%
Train/ Flight Tickets 16 18%
Clothes 16 18%

How do you usually prefer shopping?

Through Phone 3 7%
Through internet 15 35%
Through Retail Stores 25 58%

How often do you use the internet every day?

Less Than 1 Hour 0 0%

1 - 2 Hour 7 21%
2 - 4 Hour 13 39%
More than 4 Hour 13 39%
How often do you use Internet for information prior to a purchase?

Very often 9 27%

Often 10 30%
Sometimes 7 21%
Rarely 4 12%
Never 3 9%

How often do you use Internet for shopping?

More than once a week 1 3%

Once a week 3 9%
2- 3 Times a Month 2 6%
Once in a Month 27 82%

Electronic newspaper or magazine [How often do you use the following

internet Activities?]

Never 4 12%
Often 13 39%
Very Often 8 24%
Frequently 8 24%
Gaming [How often do you use the following internet Activities?]

Never 5 15%
Often 17 52%
Very Often 7 21%
Frequently 4 12%

Chatting [How often do you use the following internet Activities?]

Never 0 0%
Often 7 21%
Very Often 11 33%
Frequently 15 45%

Research / Education [How often do you use the following internet

Activities?]

Never 1 3%
Often 7 21%
Very Often 14 42%
Frequently 11 33%
Product / Service Information [How often do you use the following
internet Activities?]

Never 0 0%
Often 13 39%
Very Often 11 33%
Frequently 9 27%

Shopping [How often do you use the following internet Activities?]

Never 9 27%
Often 15 45%
Very Often 5 15%
Frequently 4 12%

Surfing [How often do you use the following internet Activities?]

Never 0 0%
Often 3 9%
Very Often 10 30%
Frequently 20 61%
Stocks/ Mutual Funds/ Bonds [Assuming that you intend to conduct
online shopping, which of these purchases would you make in the
internet?]

Yes 11 34%
No 21 66%

Movie Tickets [Assuming that you intend to conduct online shopping,

which of these purchases would you make in the internet?]

Yes 26 81%
No 6 19%

Electronics [Assuming that you intend to conduct online shopping,

which of these purchases would you make in the internet?]

Yes 18 58%
No 13 42%

Clothes/ Shoes [Assuming that you intend to conduct online shopping,

which of these purchases would you make in the internet?]

Yes 19 61%
No 12 39%
Cosmetics & Jewelry [Assuming that you intend to conduct online
shopping, which of these purchases would you make in the internet?]

Yes 5 16%
No 27 84%

Computer products [Assuming that you intend to conduct online

shopping, which of these purchases would you make in the internet?]

Yes 18 60%
No 12 40%

Train / Flight Tickets [Assuming that you intend to conduct online

shopping, which of these purchases would you make in the internet?]

Yes 26 84%
No 5 16%

Furniture [Assuming that you intend to conduct online shopping, which

of these purchases would you make in the internet?]

Yes 2 7%
No 28 93%
How much do you usually spend on online shopping per month?

500-1500 24 73%
1501-2500 4 12%
2501-3500 4 12%
More than 3500 1 3%

Shopping on the internet saves time. [Please select your level of

agreement to the following questions.]

1-Strongly Disagree 3 9%
2- Disagree 1 3%
3- Agree 19 59%
4- Strongly Agree 9 28%

It is a great advantage to be able to shop at any time of the day on the

internet. [Please select your level of agreement to the following
questions.]

1-Strongly Disagree 2 6%
2- Disagree 2 6%
3- Agree 18 56%
4- Strongly Agree 10 31%
It is more difficult to shop on the internet. [Please select your level of
agreement to the following questions.]

1-Strongly Disagree 6 19%

2- Disagree 14 44%
3- Agree 11 34%
4- Strongly Agree 1 3%

I prefer traditional/conventional shopping to online shopping. [Please

select your level of agreement to the following questions.]

1-Strongly Disagree 5 16%

2- Disagree 9 28%
3- Agree 12 38%
4- Strongly Agree 6 19%

Shopping online is risky. [Please select your level of agreement to the

following questions.]

1-Strongly Disagree 2 6%
2- Disagree 11 34%
3- Agree 10 31%
4- Strongly Agree 9 28%
I will prefer online shopping only if online prices are lower than actual
price [Please select your level of agreement to the following questions.]

1-Strongly Disagree 1 3%
2- Disagree 7 22%
3- Agree 14 44%
4- Strongly Agree 10 31%

A long time is required for the delivery of products and services on the
internet [Please select your level of agreement to the following
questions.]

1-Strongly Disagree 0 0%
2- Disagree 10 32%
3- Agree 15 48%
4- Strongly Agree 6 19%

Selection of goods available on the internet is very broad [Please select

your level of agreement to the following questions.]

1-Strongly Disagree 2 6%
2- Disagree 9 29%
3- Agree 14 45%
4- Strongly Agree 6 19%
Online shopping is as secure as traditional shopping [Please select your
level of agreement to the following questions.]

1-Strongly Disagree 8 25%

2- Disagree 9 28%
3- Agree 11 34%
4- Strongly Agree 4 13%

Delivery Time [How important are the following things in your decision
to purchase goods from internet?]

VeryImportant 19 58%
Important 14 42%
Neither of Important & not Important 0 0%
Not Important 0 0%

Gaurantees & Warrantees [How important are the following things in

your decision to purchase goods from internet?]

VeryImportant 21 64%
Important 11 33%
Neither of Important & not Important 1 3%
Not Important 0 0%
Privacy of Information [How important are the following things in your
decision to purchase goods from internet?]

VeryImportant 18 55%
Important 9 27%
Neither of Important and not Important 5 15%
Not Important 1 3%

Discription Of Goods [How important are the following things in your

decision to purchase goods from internet?]

VeryImportant 18 55%
Important 15 45%
Neither of Important & not Important 0 0%
Not Important 0 0%

Security [How important are the following things in your decision to

purchase goods from internet?]

VeryImportant 22 67%
Important 9 27%
Neither of Important & not Important 2 6%
Not Important 0 0%
Prices [How important are the following things in your decision to
purchase goods from internet?]

VeryImportant 17 52%
Important 13 39%
Neither of Important & not Important 2 6%
Not Important 1 3%

Waiting to receive the product [How important are each of the following
factors in refraining/keeping you from shopping on the internet.]

Very Important 10 30%

Important 21 64%
Neither Important nor unimportant 1 3%
Not important 1 3%

Risk of credit card transactions [How important are each of the following
factors in refraining/keeping you from shopping on the internet.]

Very Important 16 48%

Important 15 45%
Neither Important nor unimportant 2 6%
Not important 0 0%
Difficulty in returning products [How important are each of the following
factors in refraining/keeping you from shopping on the internet.]

Very Important 13 39%

Important 18 55%
Neither Important nor unimportant 1 3%
Not important 1 3%

Risk of not getting what I paid for [How important are each of the
following factors in refraining/keeping you from shopping on the
internet.]

Very Important 20 61%

Important 10 30%
Neither Important nor unimportant 2 6%
Not important 1 3%

Lack of trustworthiness [How important are each of the following factors

in refraining/keeping you from shopping on the internet.]

Very Important 11 33%

Important 20 61%
Neither Important nor unimportant 2 6%
Not important 0 0%
More expensive than those sold in retail stores [How important are each
of the following factors in refraining/keeping you from shopping on the
internet.]

Very Important 10 30%

Important 15 45%
Neither Important nor unimportant 7 21%
Not important 1 3%

Have undergone bad experience [How important are each of the

following factors in refraining/keeping you from shopping on the
internet.]

Very Important 9 27%

Important 13 39%
Neither Important nor unimportant 8 24%
Not important 3 9%

Risk of loss of privacy [How important are each of the following factors
in refraining/keeping you from shopping on the internet.]

Very Important 14 42%

Important 12 36%
Neither Important nor unimportant 6 18%
Not important 1 3%
Which Brand Do you Prefer ?

Indian 10 30%
International 1 3%
Both Indian & International 22 67%

Which online portal due prefer for shopping online ?

Myntra 2 7%
Flipkart 16 57%
virginmango 0 0%
homeshop18 2 7%
Ebay 3 11%
Other 5 18%
 QUESTIONARE
Name *

1. What is your gender *

Male

Female

What is your Age? *

18 - 24

25 - 34

35 - 44

45 - 54

55 - 64

Above 65

What is the highest level of education you have completed? *

S.S.C

H.S.C

Graduation

Masters

In general, you prefer to do your shopping ?

 Cosmetics

 Computer Products

 Jewellery

 Toys

 Electronics

 CD/DVD's
Movie Tickets

Online recharge

 Train/ Flight Tickets

 Clothes
 How do you usually prefer shopping? *

 Through Phone

 Through internet

 Through Retail Stores

How often do you use the internet every day? *

Less Than 1 Hour

1 - 2 Hour

2 - 4 Hour

More than 4 Hour

How often do you use Internet for information prior to a purchase? *

 Very often

 Often

 Sometimes

 Rarely
Never


How often do you use Internet for shopping? *

 More than once a week

 Once a week
2- 3 Times a Month

Once in a Month


How often do you use the following internet Activities? *

Never Often Very Often Frequently
Electronic
newspaper or
magazine

Gaming

Chatting

Research /
Education
 Never Often Very Often Frequently
Product / Service
Information

Shopping

Surfing

Assuming that you intend to conduct online shopping, which of these purchases would you make in the internet?
Yes No

Stocks/ Mutual Funds/ Bonds

Movie Tickets

Electronics

Clothes/ Shoes

Cosmetics & Jewelry

Computer products

Train / Flight Tickets

Furniture

How much do you usually spend on online shopping per month? *

 500-1500

 1501-2500

 2501-3500

 More than 3500

Please select your level of agreement to the following questions.

1-Strongly 4- Strongly
2- Disagree 3- Agree
Disagree Agree
shopping on the
internet saves time.

It is a great advantage
to be able to shop at
any time of the day on
the internet.

It is more difficult to
shop on the internet.

I prefer
traditional/conventional
shopping to online
shopping.

Shopping online is
risky.

I will prefer online

shopping only if online
prices are lower than
actual price

A long time is required

for the delivery of
products and services
on the internet

Selection of goods
available on the
internet is very broad

Online shopping is as
secure as traditional
shopping
How important are the following things in your decision to purchase goods from internet? *

Neither of
VeryImportant Important Important and not Not Important
Important

Delivery Time

Gaurantees &
Warrantees

Privacy of
Information

Discription Of
Goods

Security

Prices

How important are each of the following factors in refraining/keeping you from shopping on the internet. *
Neither Important
Very Important Important Not important
nor unimportant
Waiting to
receive the
product

Risk of credit
card transactions

Difficulty in
returning
products

Risk of not
getting what I
paid for

Lack of
trustworthiness

More expensive
than those sold in
retail stores
 Neither Important
Very Important Important Not important
nor unimportant
Have undergone
bad experience

Risk of loss of
privacy

Which Brand Do you Prefer ? *

 Indian

 International

 Both Indian & International

Which online portal due prefer for shopping online ? *

 Myntra

 Flipkart

 virginmango

 homeshop18

 Ebay
Other:


Share your Experience *

CONCLUSION
Increased Internet penetration, a hassle free shopping environment and high levels of Net
savvies see more and more Indians shopping online. But at the same time the companies
need to reduce the risks related to consumer incompetence by tactics such as making
purchase websites easier to navigate, and introducing Internet kiosks, computers and other
aids in stores. The goal is not to convert all shoppers to online purchasing, but to show
them it’s an option. In addition to above, efforts need to be taken to educate the online
buyers on the steps that need to be undertaken while making an online purchase. Moreover,
the feedback of an online buyer should be captured to identify flaws in service delivery. This can
be done through online communities and blogs that serve as advertising and marketing tools
and a source of feedback for enterprises. We found that it is a challenge for E-marketers to
convert low frequency online buyers into regular buyers through successful website design
and by addressing concerns about reliable performance. Thus, the online retailing raises more
issues than the benefits it currently offers. The quality of products offered online and
procedures for service delivery are yet to be standardized. Till the same is done, the buyer
is at a higher risk of fraud.
Bibliography
http://ezinearticles.com/?Online-Consumer-Behavior&id=1947357

knowledge.emory.edu/papers/793.pdf

http://articles.economictimes.indiatimes.com/2012-12-16/news/35850963_1_homeshop18-com-ceo-e-
commerce-consumer-lifestyle

http://ezinearticles.com/?Online-Consumer-Behavior&id=1947357

https://mr.pricegrabber.com/Economic_Climate_Shifts_Consumers_Online_March_2009_CBR.pdf

http://www.ntcresearch.org/pdf-rpts/Bref0603/S02-AC23-03e.pdf

http://apps.business.ualberta.ca/ghaeubl/papers/ConsumerDecisionMakingInOnlineShoppingEnvironm
ent s.pdf

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1422171

http://www.strangecorp.com/downloads/strange_online_marketing_trends_2009

http://faculty.washington.edu/rajgopal/files/job_KRV.pdf

http://articles.economictimes.indiatimes.com/2013-01-28/news/36596555_1_google-india-rajan-
anandan-baby-products

johareez.com (2012). “E-Commerce (Online Shopping) Market In India To Hit US$ 10 Billion In 2012”