INTRODUCTION

Conceptual Framework

Customer:

Entity that receives or consumes products (goods or services) and has the ability to choose

between different products and suppliers.

Perception:

Perception is the process by which an individual selects, organizes and interprets information
inputs to create a meaningful picture of the world.

Customer Perception:

Customer Perception is the process, by which an individual selects, organizes and interprets
information about a product or service offered by different marketers.

Online Shopping

Online shopping is the process whereby consumers directly buy goods or services from a seller
in real-time, without an intermediary service, over the Internet.

The growing use of Internet in India provides a developing prospect for online shopping. If E-
marketers know the factors affecting online Indian behavior, and the relationships between these
factors and the type of online buyers, then they can further develop their marketing strategies to
convert potential customers into active ones, while retaining existing online customers.

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 and also to conduct satisfaction surveys with customers. Customers use

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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.
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.

The Internet has developed into a new distribution channel and online transaction are rapidly
increasing. This has created a need to understand how the consumers perceive online purchasing.
Price, Trust and Convenience were identified as important factors. The internet has created a
paradigm shift of the traditional way people shop. A consumer is no longer bound to opening at
specific times or specific 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 is
present in everyday life. The number of internet user is constantly increasing which also
signifies that online purchasing is increasing. 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.
Using the internet to shop online has increased 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 up most importance to be able to understand what the consumer wants and
needs. One of the primary reasons to use the internet is combined with searching for products
and finding the information about them.
The Internet, as a mean for both firms and individuals to conduct business, is nowadays one of
the most widely used non-store formats. 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. Furthermore, not only does the number of adopters
grow, but also the volume of their purchases is proportionally increased . The two most

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commonly cited reasons for online shopping have been convenience and price. The capability of
purchasing without leaving your place is of great interest to many consumers. Moreover, the use
of Internet tools for price searching and comparison provides an additional advantage in
consumers’ final decision, as they can purchase their desired products in the lowest available
price . On the contrary, privacy and security have been the great concerns , resulting many
people to browse the Internet for informational matters than for buying online .

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.

Few 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
middle-class 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 .

Rising Connectivity
The growth of Internet Subscribers 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 & Wimax system has also
started in India. This will increase the usage as it goes more on wireless internet. Indians are
proving every 15 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.

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Few Facts about Online Shopping
The figures from IAMAI show that the internet users in India will grow to 200 million by 2010.
Around 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 E-commerce 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
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.

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 Rationale of Study

The Internet has developed into a new distribution channel and online transactions are rapidly
increasing. This has created a need to understand how the consumers perceive online purchasing
therefore this research is been conducted to understand customer perception towards online
shopping.
The main purpose of this research is to identify and get insight into factors the online consumer
takes into consideration when he/she buys products on internet, what affects their shopping
behavior and what persuades them to buy the products.

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 Objectives of Study

 To study the online shopping behavior of customers

 To study the factors influencing online shoppers and consumers.

 To study the demographic variables (age, gender, income etc.) that can affect the online
shopping behavior of shoppers.

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 Literature Review
Bellman et al., (1999) examined the relationship among demographics, personal characteristics,
and attitudes towards online shopping. These authors find that people who have a more wired
lifestyle. and who are more time constrained tend to buy online more frequently, i.e., those who
use the Internet as a routine tool and/or those who are more time starved prefer shopping on the
Internet.

Bhatnagar et al., (2000) measured how demographics, vender/service/ product characteristics,

and website quality influence the consumers attitude towards online shopping and consequently
their online buying behavior. They report that the convenience the Internet affords and the risk
perceived by the consumers are related to the two dependent variables (attitudes and behavior)
positively and negatively, respectively.

Jarvenpaa et al., (2000) investigated how consumers perceived store size and reputation
influence their trust in the store, risk perception, attitudes, and willingness to buy at the specific
store. They discover that there is a positive relationship between consumer trust in Internet stores
and the stores perceived reputation and size. Higher consumer trust also reduces perceived risks
associated with Internet shopping and generates more favorable attitudes towards shopping at a
particular store, which in turn increases willingness to purchase from that store.

Jahng et al.,(2001) proposed and validated a Technology/Product Fit Model to describe and
predict the relationship between product characteristics, e-commerce environment
characteristics, and user outcomes. They classified products sold on the Internet as belonging to
four categories based on social and product presence requirements: simple, experiential,
complex, or social. When a positive fit is established between the ecommerce environment and
the product requirements, favorable user outcomes are generated that include user satisfaction,
decision confidence, e-commerce acceptance, and purchase intent.

Efthymios Constantinides(2004) in his research on the topic Influencing the online

consumer’s behavior: the Web experience included Research on the buying behavior and the

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factors influencing the decision-making process of online consumers has revealed similarities as
well as differences between them and the traditional customers. The uncontrollable factors
(external and personal ones) affecting consumer behavior are similar for both types of
consumers. The tools however used by traditional and online marketers in order to influence the
buying behavior of their customers are not quite the same. In the case of traditional consumers
the 4Ps of the marketing mix are considered as the main controllable tools influencing the buying
behavior. Research indicates that in the case of the Web consumer a set of elements experienced
during the virtual interaction are indeed the controllable factors affecting the online buyer. This
study identifies the main constituents of the online experience or Web experience as being:
 The functionality of the Web site that includes the elements dealing with the site’s
usability and interactivity;
 The psychological elements intended for lowering the customer’s uncertainty by
communicating trust and credibility of the online vendor and Web site; and
 The content elements including the aesthetic aspects of the online presentation and the
marketing mix.
These three sets of factors are the main online marketing tools under the control of the e-
marketer.
Finally, the Web experience must be regarded as a dynamic and evolving subject rather than a
static one; developments in the virtual marketplace, changing customer techno graphics and
technological innovation will present e-marketers with new tools and methods for enhancing
their customers’ online experience.

Rajasee Rege (November 2007) conducted research on the topic What influences online
shopping behavior of consumers? Usability vs. Security perspective According to her in
today’s fast paced world, the popularity of e-commerce websites has grown by leaps and bounds.
Online purchasing of goods, both expensive and cheap, is prevalent to a much larger extent in
recent years due to convenience, speedy transactions and enhanced shopping experience at your
fingertips. This paper aimed at gauging the level of importance of various usability vs. security
factors affecting online shopping behavior by conducting a research study involving a task list,
debriefing questionnaire and a post-test survey. The paper aimed at contrasting the security-

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related awareness of consumers while performing transactions online with the usability factors
that influence the shopping behavior of the consumers.

Anders Hasslinger et al., (2008-02-01) in their study they showed that internet has developed
into a new distribution channel and online transactions are rapidly increasing. This has created a
need to understand how the consumer perceives online purchases. The purpose of this
dissertation was to examine if there are any particular factors that influence the online consumer.
Primary data was collected through a survey that was conducted on students at the University of
Kristiansand. Price, Trust and Convenience were identified as important factors. Price was
considered to be the most important factor for a majority of the students. Furthermore, three
segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and established implications
for online book stores.

Scott M. Smith et al.,(2008) in their research paper they discussed online shopping in context of
diffusion of innovation theory. It proposed that online shopping is a discontinuous innovation
whose adoption rate is influenced by several of Rogers' (2004) diffusion deterrents. A new 12-
item 'Computer Competence Index' (CCI) is proposed and tested using data from an internet-
administered US probability study of 1800 online users. EShoppers are profiled using a tertile
split of the CCI. Each tertile's demographics, computer activities, computer-oriented lifestyles,
and online purchase activities are reported. Evidence was presented that concepts related to the
diffusion of innovation may explain resistance in the growth of online shopping.

A.M. Sakkthivel (2009) in their research paper aimed to identify the impact of demographics on
consumer buying behavior towards online purchase of different products based on the
involvement and investment (High, Medium and Low). It attempted to unearth the impact of the
demographics on online purchase which is at present relatively limited. It would help the
marketers to identify the demographic profile of consumers which is otherwise not known due to
the intangible nature of internet. The findings would help the marketers to design their offerings
based on the demographic profile of online consumers and would help the online marketers to

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identify and segment the online consumers which will enhance their focus and eventually leads
to financial growth.

Bikramjit Rishi (2010) in their study on Online shopping is an innovative option of distribution
available in the hands of marketers. It is innovative and creative because marketers can
experiment with it in form, content, visibility and availability. In India online shopping is
considered as a relevant alternative channel for retailing and it is now an important part of the
retail experience. This research study is an empirical study to find out the motivators and
decisional influencers of online shopping. The sample has been selected from the youth
population as this group of people actually use internet to buy online. The study highlights that
reliability; accessibility and convenience are the major motivator factors which motivate the
Indian consumer to buy online. Similarly, reluctance and preference are the two decisional
factors which influence the decision.

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 Research Methodology

The study
The study is descriptive in nature. The research approach to collect the data is survey and the
analysis is based on primary data.
The Sample
The sampling plan for the study decides the work area that is the population which has to be
surveyed.
Sample Size
200 respondents from Indore region.
Sampling technique
Non Probability Convenient Sampling Technique

The tools
For Data Collection
Both Primary and Secondary Data were used for data collection.
Primary Data was collected by conducting a survey on 200 respondents of Indore region who
will be asked questions through a self designed questionnaire to know their perception regarding
online shopping.
Secondary Data was taken from magazines, newspapers, related websites and journals.

For Data Analysis

Suitable statistical tools such as frequency distribution, t-test, one way anova are applied.

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 GENDER

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 94 47.0 47.0 47.0
Female 106 53.0 53.0 100.0
Total 200 100.0 100.0

GENDER

Male

Female

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 AGE

Cumulative
Frequency Percent Valid Percent Percent
Valid 15-25 90 45.0 45.0 45.0
25-35 64 32.0 32.0 77.0
35-45 35 17.5 17.5 94.5
45 and above 11 5.5 5.5 100.0
Total 200 100.0 100.0

AGE

45 and above

35-45

15-25

25-35

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 MINCOME

Cumulative
Frequency Percent Valid Percent Percent
Valid less than 10000 49 24.5 24.5 24.5
10000-20000 9 4.5 4.5 29.0
20000-30000 45 22.5 22.5 51.5
30000-40000 54 27.0 27.0 78.5
40000 and above 43 21.5 21.5 100.0
Total 200 100.0 100.0

MINCOME

40000 and above

less than 10000

10000-20000

30000-40000

20000-30000

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Q1- Do you use Internet?

Q1

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 200 100.0 100.0 100.0

Q1

Yes

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Q2- How long have you been using internet?

Q2

Cumulative
Frequency Percent Valid Percent Percent
Valid Less than 1 year 33 16.5 16.5 16.5
1-3 years 50 25.0 25.0 41.5
3-5 years 54 27.0 27.0 68.5
More than 5 years 63 31.5 31.5 100.0
Total 200 100.0 100.0

Q2

Less than 1 year

More than 5 years

1-3 years

3-5 years

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Q3- On the average how much time (per week) do you spend in surfing the web?
Q3

Cumulative
Frequency Percent Valid Percent Percent
Valid 0-5 hours 44 22.0 22.0 22.0
6-10 hours 38 19.0 19.0 41.0
11-15 hours 52 26.0 26.0 67.0
16-20 hours 43 21.5 21.5 88.5
More than 20 hours 23 11.5 11.5 100.0
Total 200 100.0 100.0

Q3

More than 20 hours

More than 20 hours
0-5 hours
0-5 hours

16-20 hours
16-20 hours

6-10
6-10hours
hours

11-15 hours
11-15 hours

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Q4- Where do u most often access the internet?
Q4

Cumulative
Frequency Percent Valid Percent Percent
Valid Home 91 45.5 45.5 45.5
College 16 8.0 8.0 53.5
Office 77 38.5 38.5 92.0
Cyber Cafes 6 3.0 3.0 95.0
Others 10 5.0 5.0 100.0
Total 200 100.0 100.0

Q4

Others
Cyber Cafes

Home

Office

College

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Q5- Have you purchased anything online ever?

Q5

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes, continue to buy 99 49.5 49.5 49.5
Yes, but discontinued 101 50.5 50.5 100.0
Total 200 100.0 100.0

Q5

Yes, continue to buy

Yes, but discontinue

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6- Past experience from online shopping

Null Hypothesis: H0: There is no significant difference between the respondents of different
gender towards their past experience from online shopping.

Alternative Hypothesis: H1: There is significant difference between the respondents of different
gender towards their past experience from online shopping.

T-Test
Group Statistics

Std. Error
gender N Mean Std. Deviation Mean
TOTPEXP Male 94 31.09 5.775 .596
Female 106 29.12 5.770 .560

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means
95% Confidence
Interval of the
Mean Std. Error Difference
F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper
TOTPEXP Equal variances
.000 .996 2.400 198 .017 1.96 .818 .350 3.575
assumed
Equal variances
2.400 195.110 .017 1.96 .818 .350 3.575
not assumed

Interpretation:

The f value as per the above table is .000 which is significant at .996, which is higher than .05. It
implies that null hypothesis is accepted (not rejected) . Therefore we can conclude that there is
no significant difference between respondents of different gender towards their past experience
from online shopping.

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Null Hypothesis: H0: there is no significant difference among the respondents of different age
group towards their past experience from online shopping.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
age group towards their past experience from online shopping.

Oneway
Descriptives

TOTPEXP
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
15-25 90 29.21 5.795 .611 28.00 30.42 16 39
25-35 64 30.73 6.014 .752 29.23 32.24 17 40
35-45 35 31.34 5.785 .978 29.36 33.33 20 40
45 and Above 11 28.73 4.606 1.389 25.63 31.82 23 37
Total 200 30.05 5.841 .413 29.23 30.86 16 40

ANOVA

TOTPEXP
Sum of
Squares df Mean Square F Sig.
Between Groups 171.054 3 57.018 1.689 .171
Within Groups 6617.541 196 33.763
Total 6788.595 199

Interpretation

The f value as per the above table is 1.689 which is significant at .171 , which is higher than .05.
It implies that null hypothesis is accepted (not rejected) . Therefore we can conclude that there is
no significant difference among respondents of different age groups towards their past
experience from online shopping.

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Null Hypothesis: H0: there is no significant difference among the respondents of different
income groups towards their past experience from online shopping.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
income groups towards their past experience from online shopping.

Oneway
Descriptives

TOTPEXP
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
less than 10000 49 28.55 5.813 .830 26.88 30.22 16 38
10000-20000 9 31.33 6.576 2.192 26.28 36.39 24 38
20000-30000 45 30.40 5.404 .806 28.78 32.02 22 40
30000-40000 54 30.61 6.036 .821 28.96 32.26 17 40
40000 and above 43 30.40 5.880 .897 28.59 32.21 19 39
Total 200 30.05 5.841 .413 29.23 30.86 16 40

ANOVA

TOTPEXP
Sum of
Squares df Mean Square F Sig.
Between Groups 152.560 4 38.140 1.121 .348
Within Groups 6636.035 195 34.031
Total 6788.595 199

Interpretation:

The f value as per the above table is 1.121 which is significant at .348 , which is higher than .05.
It implies that null hypothesis is accepted (not rejected) . Therefore we can conclude that there is
no significant difference among respondents of different income groups towards their past
experience from online shopping.

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Q7- Which category (ies) of goods/ services are you planning to buy through internet in the
near future?

Books
Q7.1

Cumulative
Frequency Percent Valid Percent Percent
Valid No 128 64.0 64.0 64.0
Yes 72 36.0 36.0 100.0
Total 200 100.0 100.0

Computer softwares
Q7.2

Cumulative
Frequency Percent Valid Percent Percent
Valid No 152 76.0 76.0 76.0
Yes 48 24.0 24.0 100.0
Total 200 100.0 100.0

CD’s/Videos
Q7.3

Cumulative
Frequency Percent Valid Percent Percent
Valid No 159 79.5 79.5 79.5
Yes 41 20.5 20.5 100.0
Total 200 100.0 100.0

Clothing
Q7.4

Cumulative
Frequency Percent Valid Percent Percent
Valid No 153 76.5 76.5 76.5
Yes 47 23.5 23.5 100.0
Total 200 100.0 100.0

Travel/Hotel/Car Rental
Q7.5

Cumulative
Frequency Percent Valid Percent Percent
Valid No 103 51.5 51.5 51.5
Yes 97 48.5 48.5 100.0
Total 200 100.0 100.0

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Event Tickets
Q7.6

Cumulative
Frequency Percent Valid Percent Percent
Valid No 125 62.5 62.5 62.5
Yes 75 37.5 37.5 100.0
Total 200 100.0 100.0

Electronics
Q7.7

Cumulative
Frequency Percent Valid Percent Percent
Valid No 149 74.5 74.5 74.5
Yes 51 25.5 25.5 100.0
Total 200 100.0 100.0

Jewelery/Accessories
Q7.8

Cumulative
Frequency Percent Valid Percent Percent
Valid No 161 80.5 80.5 80.5
Yes 39 19.5 19.5 100.0
Total 200 100.0 100.0

Movie Tickets
Q7.9

Cumulative
Frequency Percent Valid Percent Percent
Valid No 73 36.5 36.5 36.5
Yes 127 63.5 63.5 100.0
Total 200 100.0 100.0

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Q8- Please rate the importance of the following factors that might motivate you to purchase
online.

Saves Time

F8.1

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 1 .5 .5 .5
2 1 .5 .5 1.0
3 7 3.5 3.5 4.5
4 41 20.5 20.5 25.0
Most Important 150 75.0 75.0 100.0
Total 200 100.0 100.0

F8.1

Least Important
2
3

Most Important

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Ease of Purchase
F8.2

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 4 2.0 2.0 2.0
2 13 6.5 6.5 8.5
3 37 18.5 18.5 27.0
4 68 34.0 34.0 61.0
Most Important 78 39.0 39.0 100.0
Total 200 100.0 100.0

F8.2

Least Important
Most Important
2

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Avoid hassels of shopping in store
F8.3

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 6 3.0 3.0 3.0
2 12 6.0 6.0 9.0
3 46 23.0 23.0 32.0
4 64 32.0 32.0 64.0
Most Important 72 36.0 36.0 100.0
Total 200 100.0 100.0

F8.3

Least Important
Most Important
2

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Ability to shop anytime
F8.4

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 5 2.5 2.5 2.5
2 6 3.0 3.0 5.5
3 22 11.0 11.0 16.5
4 75 37.5 37.5 54.0
Most Important 92 46.0 46.0 100.0
Total 200 100.0 100.0

F8.4

Least Important
Most Important
2

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Price

F8.5

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 7 3.5 3.5 3.5
2 18 9.0 9.0 12.5
3 53 26.5 26.5 39.0
4 69 34.5 34.5 73.5
Most Important 53 26.5 26.5 100.0
Total 200 100.0 100.0

F8.5

Least Important

Most Important

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Superior selection/Availability

F8.6

Cumulative
Frequency Percent Valid Percent Percent
Valid Least Important 4 2.0 2.0 2.0
2 11 5.5 5.5 7.5
3 42 21.0 21.0 28.5
4 79 39.5 39.5 68.0
Most Important 64 32.0 32.0 100.0
Total 200 100.0 100.0

F8.6

Least Important
Most Important
2

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9- Factors which restrict from purchasing online.

Null Hypothesis: H0: There is no significant difference between the respondents of different
gender towards the factors which restrict them to purchase online.

Alternative Hypothesis: H1: There is significant difference between the respondents of different
gender towards the factors which restrict them to purchase online.

T-Test
Group Statistics

Std. Error
gender N Mean Std. Deviation Mean
TOTRESFR Male 94 32.20 7.009 .723
Female 106 32.24 6.266 .609

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means
95% Confidence
Interval of the
Mean Std. Error Difference
F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper
TOTRESFR Equal variances
.613 .434 -.036 198 .971 -.03 .939 -1.885 1.817
assumed
Equal variances
-.036 187.931 .972 -.03 .945 -1.898 1.831
not assumed

Interpretation:
The f value as per the above table is .613 which is significant at .434 , which is higher than .05. It
implies that null hypothesis is accepted (not rejected) . Therefore we can conclude that there is
no significant difference between respondents of different gender towards the factors which
restrict them to purchase online.

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Null Hypothesis: H0: There is no significant difference among the respondents of different
income groups towards the factors which restrict them to purchase online.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
income groups towards the factors which restrict them to purchase online.

Oneway
Descriptives

TOTRESFR
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
less than 10000 49 34.49 5.424 .775 32.93 36.05 26 50
10000-20000 9 33.89 6.112 2.037 29.19 38.59 26 46
20000-30000 45 33.47 6.040 .900 31.65 35.28 18 45
30000-40000 54 32.17 6.895 .938 30.28 34.05 20 45
40000 and above 43 28.05 6.473 .987 26.05 30.04 16 41
Total 200 32.22 6.609 .467 31.30 33.14 16 50

ANOVA

TOTRESFR
Sum of
Squares df Mean Square F Sig.
Between Groups 1096.579 4 274.145 7.038 .000
Within Groups 7595.741 195 38.953
Total 8692.320 199

Interpretation:

The f value as per the above table is 7.038 which is significant at .000 , which is less than .05. It
implies that null hypothesis is rejected. Therefore we can conclude that there is significant
difference among respondents of different income group towards the factors which restrict them
to purchase online.

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Null Hypothesis: H0: There is no significant difference among the respondents of different age
groups towards the factors which restrict them to purchase online.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
age groups towards the factors which restrict them to purchase online.

Oneway
Descriptives

TOTRESFR
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
15-25 90 34.01 5.988 .631 32.76 35.27 18 50
25-35 64 30.38 7.245 .906 28.57 32.18 16 45
35-45 35 31.14 6.731 1.138 28.83 33.45 17 45
45 and Above 11 31.73 3.228 .973 29.56 33.90 27 36
Total 200 32.22 6.609 .467 31.30 33.14 16 50

ANOVA

TOTRESFR
Sum of
Squares df Mean Square F Sig.
Between Groups 549.864 3 183.288 4.412 .005
Within Groups 8142.456 196 41.543
Total 8692.320 199

Interpretation:

The f value as per the above table is 4.412 which is significant at .005 , which is less than .05. It
implies that null hypothesis is rejected. Therefore we can conclude that there is significant
difference among respondents of different age group towards the factors which restrict them to
purchase online.

33
Q10- Did you face any problem while making an online purchase?
Q10

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 108 54.0 54.0 54.0
No 92 46.0 46.0 100.0
Total 200 100.0 100.0

Q10

No

Yes

34
11. Problems faced while purchasing online.

Null Hypothesis: H0: There is no significant difference between the respondents of different
gender towards the problem faced while purchasing online.

Alternative Hypothesis: H1: There is significant difference between the respondents of different
gender towards the problem faced while purchasing online.

T-Test
Group Statistics

Std. Error
gender N Mean Std. Deviation Mean
TOTPRBFC Male 94 13.01 14.318 1.477
Female 106 17.47 14.385 1.397

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means
95% Confidence
Interval of the
Mean Std. Error Difference
F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper
TOTPRBFC Equal variances
.305 .581 -2.194 198 .029 -4.46 2.034 -8.471 -.451
assumed
Equal variances
-2.194 195.365 .029 -4.46 2.033 -8.471 -.452
not assumed

Interpretation:
The f value as per the above table is .305 which is significant at .581 , which is more than .05. It
implies that null hypothesis is accepted (not rejected). Therefore we can conclude that there is no
significant difference between respondents of different gender towards the problem faced while
purchasing online.

35
Null Hypothesis: H0: There is no significant difference among the respondents of different age
group towards the problem faced while purchasing online.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
age group towards the problem faced while purchasing online.

Oneway
Descriptives

TOTPRBFC
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
15-25 90 18.56 13.934 1.469 15.64 21.47 0 36
25-35 64 12.78 14.589 1.824 9.14 16.43 0 36
35-45 35 14.60 14.849 2.510 9.50 19.70 0 36
45 and Above 11 6.91 12.037 3.629 -1.18 15.00 0 31
Total 200 15.38 14.490 1.025 13.35 17.40 0 36

ANOVA

TOTPRBFC
Sum of
Squares df Mean Square F Sig.
Between Groups 2150.406 3 716.802 3.545 .016
Within Groups 39634.469 196 202.217
Total 41784.875 199

Interpretation:

The f value as per the above table is 3.545 which is significant at .016, which is less than .05. It
implies that null hypothesis is rejected. Therefore we can conclude that there is significant
difference among respondents of different age group towards the problem faced while
purchasing online.

36
Null Hypothesis: H0: There is no significant difference among the respondents of different
income group towards the problem faced while purchasing online.

Alternative Hypothesis: H1: There is significant difference among the respondents of different
income group towards the problem faced while purchasing online.

Oneway
Descriptives

TOTPRBFC
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
less than 10000 49 22.55 12.944 1.849 18.83 26.27 0 36
10000-20000 9 13.89 13.374 4.458 3.61 24.17 0 29
20000-30000 45 12.18 14.699 2.191 7.76 16.59 0 36
30000-40000 54 16.63 14.332 1.950 12.72 20.54 0 36
40000 and above 43 9.28 13.123 2.001 5.24 13.32 0 36
Total 200 15.38 14.490 1.025 13.35 17.40 0 36

ANOVA

TOTPRBFC
Sum of
Squares df Mean Square F Sig.
Between Groups 4686.042 4 1171.511 6.158 .000
Within Groups 37098.833 195 190.250
Total 41784.875 199

Interpretation:

The f value as per the above table is 6.158 which is significant at .000, which is less than .05. It
implies that null hypothesis is rejected. Therefore we can conclude that there is significant
difference among respondents of different income group towards the problem faced while
purchasing online.

37
Q12- What was the impact on your attitude towards the site where you faced problems?
Q12

Cumulative
Frequency Percent Valid Percent Percent
Valid Stopped visiting that
29 14.5 14.5 14.5
particular website
Stopped purchasing at
55 27.5 27.5 42.0
that particular website
Stopped purchasing
from that company's 27 13.5 13.5 55.5
offline store
It had no impact
89 44.5 44.5 100.0
whatsoever
Total 200 100.0 100.0

Q12

It had no impact wha

Stopped visiting tha

Stopped purchasing a

Stopped purchasing f

38
Q13- Please the rate your overall level of satisfaction on your experience of online
shopping.
Q13

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 5 2.5 2.5 2.5
Disagree 23 11.5 11.5 14.0
Neutral 47 23.5 23.5 37.5
Agree 101 50.5 50.5 88.0
Strongly Agree 24 12.0 12.0 100.0
Total 200 100.0 100.0

Q13

Strongly Disagree
Strongly Agree
Disagree

Neutral

Agree

39
Q14- What was the impact on your online shopping behavior in general?
Q14

Cumulative
Frequency Percent Valid Percent Percent
Valid Stopped shopping online 39 19.5 19.5 19.5
Stopped shopping for
54 27.0 27.0 46.5
that product category
It had no impact
107 53.5 53.5 100.0
whatsoever
Total 200 100.0 100.0

Q14
Stopped shopping onl

It had no impact wha

Stopped shopping for

40
 RESULTS

1. 47% respondents are male and 53% respondents are female.

2. 45% respondents fall in 15-25 age group, 32% in 25-35, 17.5% in 35-45 and 5.5% fall in
45 and above age group.
3. 24.5% respondents have less than 10000 monthly family income, 4.5% fall in 10000-
20000, 22.5% fall in 20000-30000, 27% fall in 30000-40000 income category, 21.5%
respondents fall in 40000 and above income category.
4. 100% respondents are using internet in their day to day lives.
5. 16.5% consumers have been using internet from less than 1 year, 25% respondents from
1-3 years, 27% from 3-5 years, and 31.5% have been using internet from more than 5
years.
6. 22% respondents spent 0-5 hours per week surfing the web, 19% for 6-10 hours, 26%
respondents spend 11-15 hours per week on net, 21.5% respondents for 16-20 hours and
11.5% respondents spent more than 20 hours surfing the web.
7. 45.5% respondents surf internet from their home, 8% from college, 38.5% respondents
surfed web from office, 3% from cyber cafes and 5% used other medium.
8. 49.5% respondents have purchased online and still continue to do so whereas 50.5%
respondents have purchased online but discontinued due to some reasons.
9.
10. Categories of products/services mostly purchased by respondents include Books(36%) ,
Computer softwares (24%), CD’s/Videos (20.5%), Clothing (23.5%), Travel/Hotel/Car
rental (48.5%), Event tickets (37.5%), Electronics (25.5%), Jewelery/Acessories (19.5%),
and Movie tickets (63.5%).
11. According to respondents the factors which motivate them to purchase online are – saves
time (75%), ease of purchase (39%), avoid hassels of shopping in store (36%), ability to
shop anytime (46%), price (26.5%), superior selection/availability (32%)
9.
10. 54% respondents did not face any problem while purchasing through internet while
46% respondents faced problem.
11.

41
12. 14.5% respondents stopped visiting that particular website on which they faced
problems, 27.5% respondents stopped purchasing from that particular website,13.5%
respondents stopped purchasing from that company’s online store, 44.5% respondents had no
impact whatsoever.
13. 12% respondents were highly satisfied with their online shopping experience, 50.5%
respondents were satisfied, 23.5% respondents were neutral, 11.5% were dissatisfied and
2.5% respondents were highly dissatisfied.
14. 53.5% respondents had no impact on their online shopping behavior in general, 27%
respondents stopped shopping for that particular category, 19.5% respondents stopped
shopping online.

42
 SUMMARY

The report of the present study has been divided into six chapters.

 Chapter 1- Introduced the conceptual framework with review of literature, rationale of

the study and objective of the study.

 Chapter 2 - Described the methodology of the study in terms of nature of the study and
tools for both data collection and analysis.

 Chapter 3 - Presented results.

 Chapter 4 - Deals with the discussion part.

 Chapter 5 – For summary, conclusion and suggestion.

 Chapter 6 - Presented implications of the study to highlight the application value of the
study.

References have been given in standard format to facilitate the future researchers for tracing the
source of literature.

43
 CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high levels of Net
saviness 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 kiosk, 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. I
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 frauds.

44
 SUGGESTIONS
These are some of the suggestions which could be adopted by companies dealing in online
shopping:

1. Test your site early and often. 

2. Test the integrity of your content. Check for misspelled words, broken links, busted
pictures, etc. An unprofessional appearance may lead to a bad customer experience and kill your
chances to sell online.

3. Make sure images load quickly. A slow-loading page may simply drive customers away to
click on to the next site. You want to minimize page download time.

4. "Load test" your site. You’re expecting (or at least hoping for) a rush of customers. So it’s a
good idea to determine how much traffic your Web site can support. You can’t sell online if
customers can’t reach your site.

5. Create sample transactions. These can simulate expected customer traffic and Web
transactions. By running "synthetic" transactions periodically - say, every five to 15 minutes –
you’ll know there’s a problem before your customers do.

6. Check the performance of your network provider. You can do this by looking at a site
that’s similar to yours and in your area, but connected to another network. In a fiercely
competitive business, every second matters.

7. Add cross-sell and up-sell opportunities throughout your site. 

8. Make your policies easy to find and provide customer service contact details for a real
person. Providing an easy-to-find phone number on the site helps online shoppers feel more
secure and increases your chance to sell online. Clearly state your company’s return policy.
Remind customers of the last possible day to order and receive a product in time for the holidays.

9. Make your search function more effective. Your search function should accommodate
common misspellings by returning similarly spelled items or your site’s most popular search
terms.

45
 IMPLICATIONS OF STUDY

For online shopping companies:

The study would help the online shopping companies in identifying the potential audience also
knowing the major factors which influence online purchasing decision of customers and knowing
the past experience from online shopping and the factors which restrict them to purchase online.
This research would thus be very helpful for online shopping companies in making decisions on
strategies to be adopted to increase traffic.

For Researchers:

This study would help researchers in their further study on related topics also would help in
identifying other factors which may influence customers in shopping online. Researchers can
also find out what companies have done or will have to do to increase online traffic.

For Students:

This study would help students of Marketing Management in studying the perception of
customers about online shopping. The study would act as a guide for them in further study.
Particularly for students who wish to build their career in this field this study would be of interest
to them.

46
 References

 http://analogik.com/article_analysis_of_consumer_behaviour_online.asp
 http://www.essays.se/essay/e1fb0c636f/
 http://www.tealeaf.com/Harris/
 http://inderscience.metapress.com/app/home/contribution.asp?
referrer=parent&backto=issue,2,6;journal,15,40;linkingpublicationresults,1:110844,1
 http://www.iamai.in/Upload/Research/book.pdf


 Anders Hasslinger, et al, “Consumer Behaviour in Online Shopping,” Kristiand

University Department of Business Studies,2008

 Rajasee Rege, “What influences online shopping behavior of consumers? Usability vs.
Security perspective,” Indiana University, Bloomington, School of Informatics, 2007

 Efthymios Constantinides,” Influencing the online consumer’s behavior: the Web

experience,” Internet Research Volume 14 · Number 2 · 2004 · 111-126

 Bellman et al., “The relationship among demographics, personal characteristics, and

attitudes towards online shopping,” Journal Of Consumer Marketing, 1999

 Scott M. Smith et al., “Online shopping in context of Diffusion of Innovation theory,”

Internet Research , 2008

 Bikramjit Rishi, “Study on Online shopping,” International Journal of Electronic

Commerce, 2010

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