This dissertation report examines consumer perception towards online shopping in India. The report includes an acknowledgement, declaration, introduction and literature review sections. The introduction provides background on the growth of e-commerce and how companies are leveraging the internet. The literature review covers national and international studies on topics like online consumer behavior, trust, and factors influencing online purchases. The report also describes the significance and objectives of the study, as well as the research methodology used which involved collecting primary data through questionnaires. Key findings indicate that efficiency, time savings and affordability are main drivers for online shopping in India. The conclusion is that online shopping has a promising future in India as attitudes improve and various payment options expand access.
2. ACKNOWLEDGEMENT
It gives me great pleasure to thank everyone who supported me during the
Project, whether directly or indirectly. My appreciation goes out to MR.
Devendra Bahadur Sir and Raveendranath Nayak, the Honorable Director of
the IILM University in Greater Noida, who helped me with my project. Special
thanks go out to all of my colleagues who helped me complete my project
successfully by advising and working with me.
RAVI KUMAR
3. DECLERATION
I RAVI KUMAR Roll No. IGSM/PG2021/0465, a student of IILM UNIVERSITY GREATER
NOIDA hereby declare that the dissertation on “CONSUMER PERCEPTION
TOWARDS ONLINE SHOPPING” is done by me is an authentic work carried out for
the partial fulfilment of the requirement for the award of the degree of PGDM program in
management under the guidance Of Dr. Devendra Bahadur Sir
RAVI KUMAR
4. INTRODUCTION
The internet is altering the way people shop and purchase goods and services, and it
has quickly spread around the world. Many businesses have begun leveraging the
Internet in an effort to reduce their marketing expenses and, as a result, lower the
cost of their products.
products and services to maintain an advantage in markets that are very competitive.
Companiesutilize the Internet to sell products, communicate, and share information.
customer satisfaction surveys to gather information about the product and solicit
customer feedback.
Customers visit the Internet to evaluate costs, product features, and the availability of
post-purchase services before making an in-store purchase. This is in addition to
making actual purchases online. Many professionals are upbeat about the potential of
online commerce.
Along with the enormous potential of the e-commerce industry, the internet offers
businesses a singular chance to more effectively connect with both current and new
clients. Although business-to-business transactions generate the majority of online
transaction revenue, those that engage in business-to-consumer sales shouldn't lose
hope. . Business-to-consumer e-commerce has advanced significantly since it first
started. Electronic commerce researchers and practitioners are continually working to
improve their understanding of online consumer behaviour. Researchers continue to
use several theories to explain how consumers behave online as e-retailing develops.
Many of their research have made new, emerging assumptions or hypotheses based
on conventional models of consumer behaviour, and then they have examined the
viability of those hypotheses in the setting of the Internet.
With everything available on the internet, online shopping is unquestionably a terrific
way to shop. This method of purchasing enables one to purchase conveniently without
difficulty of spending hours in a supermarket or shopping places for clothes, gifts,
food, home necessities, pharmaceuticals, and many other products. The Internet, with
its abundance of informational resources, enables customers to read a variety of
product or service reviews before making actual purchases. For customers looking for
sales and store goods, many online shopping platforms also provide daily
5. LITRETURE OF REVIEW
A literature review is a selective examination of previously published work that is
pertinent to your subject and demonstrates how it pertains to your investigation. It
discusses and supports how your study might fill in some of the knowledge gaps or
questions in this field.
A literature review is neither a simple synopsis of all you have read on the subject, nor
is it a list of every discovery made in your field in order.
NATIONAL LITREATURE OF REVIEW
Rajeev Kamineni (2004) discovered that the World Wide Web has a significant impact
on how people behave and interact. One significant example to highlight the
tendencies in this approach is web-based shopping behavior. The goal of this study,
which is extremely exploratory in nature, is to identify the distinctions among a variety
of international web shoppers. Numerous important elements connected to online
shopping behavior have been investigated. An illustration of the shoppers has been
given, along with a cross-cultural data set that was gathered. The cross-cultural
variations between a number of shoppers were studied as a last phase.
According to Archana Shrivastava and Ujwal Lanjewar (2011), the rate of consumer
adoption and spread of internet shopping in India is still quite low. An empirical study
of internet purchasing behavior was conducted in light of the aforementioned issue.
Based on a study of the literature, the four major psychographic factors of attitude,
motivation, personality, and trust were examined in relation to online purchasing.
After conducting a statistical analysis, the models for the four parameters that make
up the online purchasing decision process were created. These models were combined
with data mining, business intelligence, and knowledge management to provide a
framework for behavioral business intelligence that provides a comprehensive
understanding of online consumer behavior.
6. INTERNATIONAL LITREATUREOF REVIEW
Electronic exchange of data possibly gave rise to e-business in the 1960s (Zwass,
1996).
However, (Melao, 2008) contends that e-Business did not become a common
element of many firms until the 1990s, mostly due to the Internet. It was hoped, in
his opinion, that e-Business would radically alter how organizations interact with
their users, employees, partners, and suppliers. Some others viewed e-business as
an element of a strategy to keep competition in the global economy.
MoezLimayem,(2002) Over the years, numerous scenarios have been used to
explore the subject of online consumer behavior. Despite the fact that over the past
few years, researchers from various business disciplines have made tremendous
progress, the research area is still quite vast, the studies seem to be somewhat
dispersed, and there is no overarching theoretical framework. To evaluate online
consumer behavior in a methodical manner, present a thorough evaluation of the
literature and suggest a research design with three main building pieces (intention,
adoption, and continuance). This suggested paradigm not only gives us a
comprehensive understanding of online consumer behavior, but it also acts as a
crucial road map for academics in this field.
Mr. Burke In order for Business to Consumer (B2C) e-commerce transactions to be
successful, trust is a crucial component. Several important elements that affect trust
in the context of online shopping have been identified by prior academics. This study
focuses on readily available security measures that ensure online shoppers' safety as
well as fantastic sales promos and online deals that entice customers to shop online
7. SIGNIFICANCE OF THE STUDY
Online shopping has been immensely popular in recent years. These are now a fundamental
component of daily life because to the advancement of technology. The introduction of
plastic money and easy access to the World Wide Web have brought stores from all over the
world to desktops. We have personally observed a lot of our friends browsing and making
purchases on several online buying websites. The student body has grown so strong that
even parents now consult their children before making significant expenditures. Their access
to the internet and social media is the only reason for this. In addition, when it comes to
individual purchases, Students take great care to obtain the best things on the market, and
they look for every opportunity to do so. Here is where online purchasing sites play a key
role. Students who are proficient in using the internet and are active on social media are
aware of online markets and have at least tried a few of them.The study is extremely
pertinent since it provides a clear image of the future of Indian internet markets and the
current developments in this particular industry. There is also discussion of the various
aspects of online shopping, including its benefits and drawbacks. The study also makes an
effort to compare the online buying behaviors of various age groups and income levels.
8. Objective of the Study
This research study's goal is to examine online consumer behavior, which in turn gives
marketers an analytical framework for optimizing their
a company's strategies. The particular goals of this study are:
1.To understand how consumers feel and are aware of the products,services made available
online.
2.to understand how it satisfies its clients while offering products and services.
3.to understand how the purchase decision-making process is made less uncertain.
Scope of the Study
The popularity of online shopping, the necessity of virtual marketplaces, their function in
shaping consumption patterns and habits, the benefits and drawbacks of e-markets,
significant actors in online retailing, etc. are all covered theoretically in the study.
1. Internet surfers participated in the study.
2.Bhopal was the territory covered geographically.
3.A schedule of questions served as the study's foundation.
4.The extent of online buying
9. RESEARCH METHODOLOGY
Research Objective
To know and understand the consumer’s perception and awareness
aboutinternetmarketing/ shopping. This will help to know the attitude
andperception of consumers towards online
shopping and what are the factors which shape the consumer’s perception
towards online shopping. Also what are key concerns from the point of view
o fconsumer while online shopping.
Determination of information needs and sources
The following was the information required:
What is consumer’s attitude towards online shopping?
What are the key concern areas for consumers while online shopping?
Which factors shape the consumer’s attitude towards online shopping?
How has been recent shift taking place in online shopping?
Research Framework
Eleven different factors were identified by studying the existing
models of consumer attitudes(Refer Annexure 1, 2) that play an important
role in online purchase, then a model was proposed leading to online shopping.
The data was collected only through Questionnaires. The sample size was 100.
And random sampling was done among the internet users.
RESEARCH OBJECTIVE
1. To analysethe consumer interest on online marketing.
2. To determine the factors affecting online buying.
3. To evaluate the growth of online marketing.
4. To forsee the demand of online shopping in india.
5. To study the impact of traditional retailer over the online retailer.
6. To gather information regarding growing sector for online purchasing.
7. To understand the barriers of online marketing.
8. To know the consumers awareness and perception about the
products and services provided on internet
10. 9. To examine what the consumer had bought and what they
want to purchase in the near future.
Data Collection Method
Primary Data
It is original primary data, for specific purpose of research project. For this
project, I have to use following common research instrument or tool-
11. Questionnaire
Questionnaire development is the critical part of primary data
collectionmethod.For this I will prepare a questionnaire in such a way that
it will be able to collect all relevant information regarding the project. The
questionnaire was designed using various scaling techniques. The
questionnaire was used mainly to test the model proposed for consumer
perception towards online shopping. Likert five point scales ranging from
Strongly Agree to strongly disagree was used as a basis of Questions. The
data collection was done over a period of 8 weeks
This was done by going directly to the respondents or through mails.
Secondary Data
It will be collected to add the value to the primary data. This may be used to
collect necessary data and records by different websites, magazines, annual
reports, journals, reference books, and newspapers, etc.
Sample Design
Sample Unit
For studying consumer perception on online shopping, samples were
selected from Delhi NCR
Sample Media
The respondents in the samples are reached through personal interviews.
Sampling Methods
Sampling methods fall under two broad categories-
a) Non-probability sampling methods.
b) Probability sampling methods.
Sample size- 100
Research place-Delhi NCR
Sample Design
I have prepared this project as descriptive type, as the objective of the study.
12. FINDINGS
The results demonstrate the rise in Internet usage over time, which is fueling an
increase in online purchasing. They also reveal customer attitudes and
perceptions of online shopping. A huge majority of online consumers still engage
in communication as their primary activity, with 32% of regular online shoppers
using the Internet for communication purposes as opposed to 10% for buying.
Demographics have an impact on online shopping because more men than
women are observed to do their shopping there, and there is a favorable
correlation between income and education levels and the rise in online
purchasing behavior.
Efficiency, time savings, and affordability were the three main driving forces that
drove people to shop online. Regular internet buyers were less price sensitive
and mostly motivated by convenience when making purchases. However, online
marketers ought to make an effort to set their goods or services apart in order
to facilitate comparisons. The marketers need to think of creative ways to
encourage consumers to spend more online while utilizing the Internet's wealth
of information, accessibility, and ease.
Privacy and security were two of the top issues for internet shoppers. The touch
factor was another barrier to internet shopping. Customers continued to favor
the sensory stimulation they get from visiting traditional establishments,
interacting with salespeople, and feeling the ambiance. Given that the touch
component is the primary motivator for purchasing some things, like as
groceries and clothing, this could limit their use. Online shopping has a
promising future, particularly in the areas of travel, books, electronics, and gifts.
13. SUGGESTION
India has great research and development (R&D) capabilities, thus
businesses should come up with new ideas quickly to address the security
challenges. To address the security issue, technology like text-to-speech
software should be invented.
When compared to the country's population, credit card ownership is low
in India, and many people are reluctant to use them for online purchases.
As a result, there are other ways to pay, such as cash on delivery (COD),
where the finalWhen the product is delivered, a customer uses cash, and
debit cards are used instead of bank accounts.are to be used straight
debited. other technologies, such as those used in encryption Prepaid gift
card, digital ID solutions, and verified 3rd certifications must all be
utilized.
India's cellular phone market is expanding, and more businesses could use
it to give clients access to the Internet and use it as a form of payment,
doing away with the need for PCs and credit cards.
Customers should be informed that one of the safety benefits of using
credit cards online is that in the event of a dispute over a credit card
payment made during an online transaction, it is the responsibility of the
merchant to demonstrate that the transaction actually occurred. This is
because people who use credit cards online do not physically sign a credit
slip. Online consumers are thereby shielded from fraudulent credit card
use.
14. CONCLUSION
This study demonstrates that online buying in India has a very promising
future.In India, attitudes regarding online purchasing are improving. Customers
can shop online anytime, anywhere, and with a variety of simple and secure
payment methods. Customers can compare prices between products and
internet retailers.
This study explores the elements that influence consumers' online shopping
behaviors with a primary focus on influences from the Internet. The study
focuses on online consumer behaviors and Internet purchasing (including the
nature of online shopping, e-commerce websites, and online security, privacy,
trust, and trustworthiness) (include background, shopping motivation and
decision making process). These elements were investigated to determine their
impact on online consumer behavior. Additionally, past studies were consulted
by researchers greater depth of comprehension In order to discover probable
factors, the purchasing decision-making process of the customer was also
analyzed. The most crucial element in assisting clients in locating the best goods
or services for their needs is information search. As a result, internet retailers
need to increase the information backing, such as by providing extremely
extensive product details and inside web page to improve information search
effectiveness. Customers give the reputation of the e-commerce website and
payment security during the evaluation stage a lot of thought. The aspect of
after-sales services that is most worried about is in the post-purchase stage.
Overall, online retailers need to pay close attention to the variables from the
Internet that affected or prevented online consumer activities so they can use
the proper marketing strategies to aid the customer's decision-making process
and enhance their performance
15. QUESTIONAIRE
1. Do you use Internet?
Yes No
2. How long have you been using Internet?
Less than 1 year 3 - 5 years
1 - 3 years More than 5 years
3. On the average, how much time (per week) do you spend in
surfing the Web?
0 - 5 hours 16 - 20 hours
6 - 10 hours More than 20 hours
11 - 15 hours
4. Have you purchased anything online ever?
Yes No
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