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Consumer perception of online purchase about computer electronic devices

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Jitin Sharma
Jitin Sharma

This document is a thesis submitted for a Master's degree in Business Administration. It discusses online shopping of computer products in India. Some key points: - It lists several major websites that provide online shopping for computer products, including intermediary sites like Flipkart and direct company sites like Dell. - It describes the types of computer products available for purchase online, such as laptops, hard drives, RAM, and accessories. - It discusses some of the roadblocks to online shopping in India, such as low literacy levels, low incomes, lack of communication infrastructure, and cultural/language diversity.

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ResearchArea: Jalandhar Submitted in partial fulfillment for the degree of MASTER IN BUSINESS ADMINISTRATION Punjab Technical University, Jalandhar (2010 – 2012) Under the guidance of: Submitted by: Mr. Savdeep Vasudeva Sarbjeet Singh Assistant professor of Business Management MBA 4th sem Roll no 100232243875 DAV INSTITUTE OF ENGINEERING & TECHNOLOGY JALANDHAR
TABLE OF CONTENTS CHAPTER PARTICULARS PAGE No. PREFACE DECLARATION ACKNOWLEDGEMENT CERTIFICATE Chapter 1 INTRODUCTION 9 Intro about online shopping List of websites provide facility to online shopping Types of computer product in websites Roadblocks in online shopping Consumer Preferences How has the Indian consumer changed over year Recent trends of online shopping in India A promising future for online shopping How these websites works What's these website an offer? CHAPTER 2 REVIEW OF LITERATURE 28 CHAPTER 3 OBJECTIVES OF THE STUDY 34 RESEARCH METHODOLOGY 35 CHAPTER 5 DATA ANALYSIS AND INTERPRETATION 38 CHAPTER 6 FINDINGS 116 CONCLUSION 119 SUGGESTIONS 121 LIMITATIONS OF THE STUDY 122
CHAPTER 7 REFERENCES 124 QUESTIONNAIRE 125
INTRODUCTION Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping. Online shopping signifies to the procedure whereby customers buy item for consumptions, manufacturing goods or services via online. Earlier, buyers in India had very traditional frame of mind concerning online shopping for any computer articles and this denotes was neither favored not was offered much importance. With the escalating terror of loosing hard earned money, people in India used to evade shopping online. But nowadays with technological progression and most secured services, circumstances of shopping in India have much modified. Particularly online computer accessories shopping in India is rapid fast. The conventional Indian way of thinking about shopping is conformist. Purchasers always desired to touch and feel the items prior to buying it, and also ensure that they get the finest bargain and the most excellent deal. But with upgrading and the speedy pace of existence nowadays, the prospect has modified. The time constraint factor is one of the major causes of the growing addictions on Online Shopping! In 1990 Tim Berners-Lee created the first World Wide Web server and browser. It opened for commercial use in 1991 . In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Inter shop introduced its first online shopping system. In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared. Online shoppers commonly use a credit card to make payments, however some systems enable users to create accounts and pay by alternative means such as Cheque, Debit card, postal money order The internet explosion has opened the doors to a new electronic world. Consumers are now able to use the internet for a variety of purposes such as research communication online banking and even shopping. With such advantages the internet is rapidly becoming the main method of communication and of conducting business conveniently. Online shopping behavior (also called online buying
behavior and Internet shopping/buying behavior) refers to the process of purchasing products or services via the Internet. 2000). various accessories are available in the market these days that are capable of adding functionalities to a system. One may find a comprehensive range of accessories of different brands and various types. It becomes quite difficult to choose the right kind of accessory for the computer system they are using. However, there are various brands that provide accessories along with the brands. But the major factor that influences customers is the price of the accessories and due to which most of the buyers seek for proper discounts. There could be many reasons as to why computer manufacturers, resellers or dealers provide great discounts on the accessories. The manufacturers usually posses a huge stock of accessories that are not sold which are kept in warehouses. In order to sell their unsold items, they provide customers with higher discounts with the purpose of clearing the stock. While the resellers and dealers offer promotional or seasonal discounts when they witness low sales. Besides this, other special offers are also promoted by the sellers which are particularly for a shorter span of time. These promotional offers are generally displayed over the manufacturers and sellers own websites. Various discounts are offered by the wholesalers and even the retailers that are unable to meet the products quality standards. Typically, these problems are ignored by the quality controllers. But till the time, the accessories are functioning in a proper way; most of the users feel satisfied with very minute defects which are either not clear or visible. There are varied discounts available on camera batteries, digital cameras, keyboards, desktops, hard drives, floppy chips and memory chips when purchased in bulk quantities. Various educational establishments and esteemed organizations like colleges or schools buy discount computer accessories. But the offers available must be checked prior to any kind of purchases. In the typical online shopping process, when potential consumers recognize a need for some merchandise or service, they go to the Internet and search for need- related information. However, rather than searching actively, at times potential consumers are attracted by information about products or services associated with the felt need. They then evaluate alternatives and choose the one that best fits their criteria for meeting the felt need. Finally, a transaction is conducted and post-sales services provided. In this project I will find that what consumer thinks while purchasing the
product online on various websites. There are so many websites are all over the world who give the facility to purchase every product online like computer devices, shoes, watch, Car utilities, Books, Health & Beautiful, Jewellery, Kitchen, Mens apparel, Mobile phones, Valentine gifts, Watches etc. But in this project I consider only computer devices. There is a list of websites which give the facility to the peoples purchase the product online:-
List of websites which provide facility to online shopping Intermediary’s websites  www.Rediff.com  www.snapdeal.com  www.indiaplaza.in  www.futurebazaar.com  www.naaptol.com  www.shopperstop.org  www.dell.co.in  www.letsbuy.com  www.watchkart.com  www.flipkart.com There is also some company websites who provides the facility to purchase the computer product online. These websites not intermediaries, actually they are the company websites like: Direct Company websites:  www.dell.co.in  www.sony.com  www.wipro.in  www.lenovo.com  www.hp.com  www.hcl.com Some of the people purchase the laptops and computer accessories from direct company websites also. This is because perception of the people is good towards the company. According to the report of Boston Consulting Group and Shop.org., the Internet shopping conversion rate in 1999 was 1.8% and gradually increased to 3.1% in 2003. One
advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. In now a days people who works in multinational company do not have enough time to purchase the product manually by visiting every shop. They simply book the order to websites and the product reach at their doorstep. In websites the image of every product is available with prices. Same as people work in banking sector, give the order of computer product to websites. It is the very easy method to purchase the product on computer and it saves lot of time.
Types of computer products available on online shopping websites:  Laptops  Hard disk  Ram  DVD writer  Mouse  Keyboard  Pen drives  Wireless mouse  Wireless keyboard  Power supply  Mother board  External hard disk  Bluetooth  Computer cabinet fan  Card reader  Routers  Wireless headphone  Webcam  Monitors  Lcd  Led
Roadblocks of online shopping There are several roadblocks that make it difficult to progress in the online shopping. Researcher encounters a number of problems like not dealing with physical distribution. The major problems are listed below. 1. Standard of living: The number of people below the poverty line is more in Punjab. Most of the illiterate people does not know about the online shopping and those who know about that, its perception is not up to the mark. 2. Low literacy levels: The low literacy levels in Punjab leads to a problem in online shopping. Online shopping is only for those people who know about computer and more over internet. 3. Low per capita income: Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular. 4. Many languages and diversity in culture: Factors like cultural congruence, different behaviour and language of the respective areas make it difficult to handle the customers. Traits among the sales force are required to match the various requirements of these specific areas. 5. Lack of communication system: Quick communication is the need of the hour for smooth conduct of business, but it continues to be a far cry for illiterates due to lack of communication facilities etc. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional, which may be a problem for effective communication. 6. Spurious brands: Cost is an important factor that determines purchasing decision in peoples. A lot of spurious brands or look-alikes are available, providing a low cost option to the customer. Many a time the customer may not be aware of the difference due to illiteracy.
CONSUMER PREFERENCES In order to go for online shopping, preferences of the consumers is directly related to: 1) Low price 2) Better quality 3) Credit facility 4) Variety of products 5) Security 6) Specific brand 7) Quick information 8) Latest products 9) Discounts 10) Door step delivery 11) Quick approach 12) Cost saving 13) Reduces physically visit the shop 14) Easy support
HOW HAS THE INDIAN CONSUMER CHANGED OVER THE YEARS? In the past few years the whole concept of shopping has been altered in terms of format and consumer buying behaviour. With the increasing urbanization, the Indian consumer is emerging as more trend conscious. There has also been a shift from price considerations to design and quality. Indians have grown richer and thus spending more on vehicles, phones and eating out in restaurant. The spending is focused more outside the homes, unlike in other Asian countries where consumers have tended to spend more on personal items as they grow richer. Spending on luxury goods have increased twice as fast with 2/3 of India’s population is under 35, consumer demand is clearly growing. Online shopping signifies to the procedure whereby customers buy item for consumptions, manufacturing goods or services via online. Earlier, buyers in India had very traditional frame of mind concerning online shopping for any computer articles and this denotes was neither favored not was offered much importance. Indian consumer is also witnessing some changes in its demographics with a large working population being under the age group of 24 – 35. One advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. In now a days people who work in multinational company do not have enough time to purchase the product manually by visiting every shop.
RECENT TRENDS OF ONLINE SHOPPING IN INDIA  Online shopping in India is witnessing a huge revamping exercise as can be seen in the graph.  Online shopping, often referred to as online retailing or e-tailing, is growing every day in India. Although most studies in the past have pointed out that the process has been rather slow and unsuccessful in gathering much steam with the Indian users. But the trend is changing now and a good number of savvy online users are making big purchases on the digital space.  In the next one year, at least eight out of ten Indian consumers will make online purchases.  At present, a little more than a quarter users reveal that they spend 11% of their monthly shopping expenditure on procurements online.  71 percent Indians trust recommendations from family when making an online purchase decision. Recommendations from friends stand at 64 percent and online product reviews at 29 percent.  Almost 50% Indian consumers’ use and trust social media sites to help them make online purchase decisions.  When buying Consumer Electronics, software and other items (such as a car), users rely heavily on online reviews and opinions.  More than four in ten Indians are likely to share (post a review/ Tweet) a negative product or service experience online than they were to share a positive one.  In the next 6 months or so, most buyers will purchase books (41%), airline tickets (40%), and electronic equipment such as TV, Cameras (36%) online.  The trend observed is that while shopping, most buyers ideally shop from websites that allow them to select products from many different stores.
A Promising Future for Online Shopping For retailers in India, online shopping is gaining recognition as it entails many benefits for them. Some of these include:  No real estate costs  Enhanced customer service  Mass customization  Global reach  Niche marketing and specialized stores In the next 5 years, online retailing in India will strengthen even further. However, long- standing sustainability directly depends on factors like changes in the market, innovations and interactivity by market players. Owing to increased penetration of credit cards and easy access of computing facilities to a wider population, Internet retailing in India has witnessed a promising growth. Moreover, bargain-hunting consumers are latching on this trend as Internet retailers are known to offer products at special discounted prices compared to store-based retailers.
HOW THESE WEBSITES WORKS These portals list the supplies on offer. You need to select the items and the quantity required, and these are added to your virtual shopping cart. Every site functions differently. Some prefer that you create a customer account with them, while others only accept orders on the customer care numbers or through e-mails. You can either call or send a message to the number mentioned on the Website, then sit back and wait for the confirmation of your order. Most sites have fixed durations for order and delivery. If you want the items delivered on the same day, even if it means by late evening, you have to place your order by 1 p.m. If you don't adhere to this time limitation, they will be sent the next day. The portals have a minimum order stipulation and you may also have to pay a delivery charge.
What's these website an offer? The intermediaries’ sites offer also seasonal fruit and vegetables, along with exotic ones, such as asparagus, artichokes, leeks and zucchini. A few even provide dry fruits, while others supply cooking oil and ghee. Most of these sites offer loyalty or reward points and prepaid vouchers to ensure repeat customers. These can be used against future purchases. The Websites also list nutrition facts, have interactive forums, and mention tips on how to whip up a quick meal. Some even have comprehensive charts and graphics to lure consumers into choosing custom-made packages—a mix of veggies and fruits for kids, pregnant women and dieters. There is a variety of payment options, ranging from debit and credit cards to mobile phones. You can also opt for cash on delivery if you prefer to pay only after ensuring that the perishable commodities you have purchased online are fresh. If you find it cumbersome to visit the Website every day, some portals allow you to place orders for the entire week or even months at one go. We checked out a few grocery portals from around the country to find out how they add to our convenience. WHY BUY ONLINE  It’s convenient and save time.  It reduces impulsive spending and there is variety of payment options.  You get access to variety of products including exotic food, which your neighborhoods grocer may not have at a few clicks of the mouse.
Consumer perception of online purchase about computer electronic devices
REVIEW OF LITERATURE 1. According to a Fast Company survey, Internet buyers as a percentage of all Internet users grew from just 19 percent in 1995 to 71 percent in 1999. Not only has Internet shopping created a new marketing provider that meets consumer needs and wants, but it has changed the consumer shopping culture with "click" shopping and ease of information searches for product or service buying. Nevertheless, unlike traditional commerce, e-commerce involves various risks (e.g., product performance, credit card information) that consumers perceive and thus consumers are engaging in risk reduction behaviors based on a wealth of information. Tan (1999) shows that consumers perceived Internet shopping to be higher risk than in-store shopping; hence only less averse consumers are more likely to use Internet shopping service. She also shows a close correlation between risk aversion and Internet shopping. The several information resources - particularly brand, word-of-mouth, and customized information-act as guides that can reduce risk and facilitate consumer choice (Krishnamurthy, 2001). In particular, the information in new purchase situations is far more important for first-time customers than for existing customers. Hawthorne, Latour & Williams (1993) and Tan (1999) reported that to reduce risk consumers seek out reference group appeal (e.g., particularly, the experts who relate to Internet fields, rather than the common man); users may constitute such informal influence, particularly in new buy situations in which they don't experience yet. The goal of the study reported here was to examine how consumer perceived information affects consumer perceived risk under pre-purchase conditions. This study is closely related to that of Kivetz and Simonson (2001). Their findings indicate that missing information can affect buyers' tastes and purchase decisions made subsequently. Perhaps the findings of the current project might offer greater insight (e.g., correlation between consumer perceptions and pre-purchase information) to e-marketers and e-marketing researchers about the role of pre-purchase information in management and e-commerce. 2. According to Liu and Shrum 2002; McMillan 2000, 2002; Williams, Rice, and Rogers 1988 studies define interactivity as the presence or absence of particular features
of Web sites, though Lee and colleagues (2004) show that even when the interactive features are the same, consumers' perceptions of interactivity vary significantly across sites. The particular features of a Web site appear effective only if they influence consumers' navigation and usage of the site. That is, the effect of Web site features on consumers' attitude toward the Web site is mediated by their perceptions of interactivity (Wu 2005). Therefore, we focus on consumers' perceptions of Web site interactivity. Although previous research has investigated determinants of interactivity, such as the structure and communication design features of Web sites (e.g., Coyle and Thorson 2001; Macias 2003; Sicilia, Ruiz, and Munuera 2005), few studies highlight the characteristics of consumers, as members embedded in social groups, or examine how their perceptions of interactivity may depend on other persons. In addition, though some studies investigate the influence of speed and message type on consumers' perceptions of interactivity (e.g., Song and Zinkhan 2008), they generally examine these effects only from a consumer-to- company interaction perspective. Other than literature on interactive communities, research does not address consumers' perceptions of interactivity in consumer-to- consumer interactions (Yadav and Varadarajan 2005). Accordingly, we address these gaps by exploring how social presence cues in consumer-to-consumer interactions on the Web site affect consumers' perceived interactivity. 3. Li and colleagues (1999) found that customers who purchase Internet stores more frequently are more convenience-oriented and less experience-oriented. These consumers regard convenience during shopping as the most important factor in purchase decisions, because they are time-constrained and do not mind buying products without touching or feeling them if they can save time in this way. Potential consumers are often prevented from shopping online by their concern for security (Han et al. 2001). However, perceived risk can be reduced by knowledge, skill, and experience on the Internet, computer, and online shopping (Ratchford etal. 2001; Senecal 2000; Sukpanich and Chen 1999; Ha et al. 2001). 4. Bellman and colleagues (1999) propose that people living a wired lifestyle patronize e-stores spontaneously. These consumers use the Internet as a routine tool to receive and
send emails, to do their work, to read news, to search information, or for recreational purposes. Their routine use of the Internet for other purposes leads them to naturally use it as a shopping channel as well. Other factors found to impact consumers’ online shopping attitudes and behavior include cultural environment, need specificity, product involvement, disposition to trust, the extent to which they would like to share values and information with others, the extent to which they like being first to use new technologies, and tendency to spend money on shopping (Borchers 2001; Koufaris et al.2002; Lee et al.2000; Kimery and McCord 2002; Bellman et al 1999). 5. Zhang, von Dran, Small, and Barcellos (1999, 2000), and Zhang and von Dran (2000) make an attempt to evaluate website quality from user satisfaction and dissatisfaction perspective. Their studies show that website design features can be regarded as hygiene and motivator factors that contribute to user dissatisfaction and satisfaction with a website. Hygiene factors are those whose present make a website functional and serviceable, and whose absence causes user dissatisfaction. Some of the categories of hygiene factors are: Privacy and Security, Technical Aspect, Navigation, Impartiality, and Information Content. Motivator factors are those that add value to the website by contributing to user satisfaction. Five categories of motivation factors are: Enjoyment, Cognitive Outcome, User Empowerment, Credibility, Visual Appearance, and Organization of Information Content. In their continued effort, they further discover that the most important website quality factors ranked by e-commerce consumers are hygiene factors (von Dran and Zhang 1999; Zhang et al. 2000; Zhang and von Dran 2001a, 2001b; Zhang et al. 2001). Liang and Lai (2000) review website quality factors influencing Internet buying behavior by categorizing them into three groups, two of them are also named motivators and hygiene factors, and third media richness factors. In their opinion, motivators are those who support the transaction process directly while hygiene factors protect the consumers from risks or unexpected events in the transaction process. Media richness factors “add more information channels or richness in information presentation” (Liang and Lai 2000, p. 2). They suggest that providing good transaction support will help Internet venders to beat their electronic competitors, while the hygiene factors need to be paid attention if they want to attract consumers from traditional stores.
Consumer perception of online purchase about computer electronic devices
RESEARCH METHODOLOGY INTRODUCTION Research methodology is a careful investigation or inquiry is a systematic way and finding the solution to the problem in the research. It comprises of defining and redefining the problem, formulation the hypothesis or suggested solutions, collecting and evaluating data, making deductions and searching conclusions and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. STEPS TO DEVELOP THE RESEARCH PLAN DATA SOURCES Two types of data were taken into consideration are Primary data: The collection of data from this source includes surveys with questionnaires etc. It will be collected with the help of a self administered questionnaire. This questionnaire aims to gather information related to various Branded products. Questionnaire design: As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words Used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents. Secondary data: It is collected from books, journals, magazines, newspapers and websites. Descriptive experimental research The researches were primarily both exploratory as well as descriptive in nature. The sources of the information are both primary and secondary. A well-structure
questionnaire was prepared and personal interview were conducted to collect the customer’s perception and buying behavior, through this questionnaire. PROBLEM FORMULATION Research Problem: - We know that online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. But there are some problems relating to the online websites, like some of the consumer can not completely trust in such type of online websites. Some of the consumers find it difficult to confirm the reliability of the provided products. It is possible to buy a product that it would not value as much as you pay for it. Research Methodology: - A research methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Research Design: - Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic for example, a frozen ready meals company learns that there is a growing demand for fresh ready meals but doesn’t know much about the area of fresh food and so has to carry out research in order to gain a better understanding. It is quantitative and uses surveys and panels and also the use of probability sampling. Descriptive research is the exploration of the existing certain phenomena. The detail of the facts won’ be known. The existing phenomena’s facts are not known to the persons.
Nature of Data:- Primary data is basically fresh data collected directly form the target respondents. It is collected through questionnaire surveys. Secondary data that is already available and published. It could be internal & external source of data. Internal sources are those which originate from the specific field or area where research is carried out. External sources are those which originate outside the field of study like books, journals, newspaper and internet. Sampling Plan The type of sampling which I have used for my project is the convenient sampling. Sampling Size The sample size is 100. The data was collected by administering a questionnaire to this sample. Analysis Technique For analyzing the responses of customers, I have used simple averages and for the purpose of interpretation of analyzed data some of the graphical representations were used. DATA COLLECTION:- Primary data: - Primary data was selected from the sample by a self administrated questionnaire in presence of the interviewer. Secondary data: - Secondary data was collected through  Articles  Internet  Reports  Books  Magazines  Newspaper
OBJECTIVE OF THE STUDY Electronic commerce has witnessed extensive growth. Dozens of Internet-only companies have surfaced in many industries and numerous conventionally-operated companies have adopted the Internet. Accordingly, competition among online companies has become rigorous. Most online companies publish price information and feature price in their advertising campaigns. The present study of the online purchase revolves around the following objectives:- 1. To study the role of perceived risk in consumer decisions. 2. To study the price and quality impact on consumer perception about computer devices. 3. To study what promotional strategies are used by websites to sell their products. 4. To study the various major companies and websites which provide the facility for online purchase of IT commodities.
DATA ANALYSIS & INTERPRETATION Q1.Do you surf online? Yes No No of Respondent 100 0
Q2.How much time you spent for online shopping in a day? Less than 1 hours Between 1-3 hours Between 4-6 hours 7 and above hours 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Yes, 100 No, 0 Yes No
Consumer perception of online purchase about computer electronic devices
LIMITATIONS OF THE STUDY  Area of the study chosen was not large.  Time available was very short.  Misleading information by respondent can’t be neglected.  Some of the customer’s problems don’t lead to valid research conclusion.  In the fast changing world the data collected soon become historic and research findings based on them irrelevant.  During the interviews with the respondents, I have found that the customers have blind faith on physically visit the shopping, which cannot be defined in quantitative terms.  The respondents were biased to some extent.  My research is limited to only 50 respondents while in reality the market for online shopping is too big. Hence the data might change if we further increase the sample size.  The accuracy of data is doubtful to some extent as some of the respondents were ignorant and were hesitant towards their response.  We can not generalize these results 100 percent true as study was conducted upon only Jalandhar region.  Time constraint
 Budget constraint.  Sometimes respondents do not respond truly just they answer for the sake of formality as a result of which result might get deviated.  FINDINGS  All of the respondents were aware about online purchase about computer electronic devices.  Maximum of the people visit the websites for shopping purposes.  People spent amount according to their affordability and needs while shopping.  Majority of the people spent between Rs 1000 – 3000 during visit the websites.  Maximum consumers prefer buying goods on cash basis when delivery rather than credit card.  Mostly consumer feels they can get almost everything what they want in website.  Most of the consumer said that money sent online is saved.  According to most of the respondents quality of online product is good.  Most of the consumer purchase the product from direct websites like dell.co.in , hcl.com , sony.com  One of the most important factors for online purchase is time saving and quick information about the product.  Respondents are also agree online shopping helps in physically visit the shop.  Most of the people among 15 to 30 years a visiting shopping websites for the purpose of entertainment while in the age group of 30-45 years, people visit for the purpose of shopping with entertainment.
 The 60% of people visiting shopping websites is of is 15-30% years where as 30% is of 30-45 years.  Every shopping websites has a separate strategy for their customers. Most of them have various loyalty programs and schemes for their key customers.  While consumer visits in online shopping websites for compare the product quality & price with the retail stores and once if they are satisfied then only come for the repurchase.  The online shopping websites provide special services such as home delivery, shopping by mobile and obtaining a product on order.  Since these online websites need not to pay any kind of taxes. So it makes possible for them to offer lower price to selected customers.  The primary purpose of most of people visiting retailer shop is requirements where as purpose of visiting online websites are entertainment and as well as purchase intention.  As per the survey average frequency of visiting a consumer to the online shopping is twice in a month.  Due to availability of many products like laptops, ram, hard disk, pen drives etc. Laptop is the most promising segments about half of the people during survey prefer shopping from these shopping websites.  Due to personal touch, home delivery & convenience about 75% of the people still prefer shopping from shops. 
SUGGESTIONSAND RECOMMENDATION  Online websites should provide schemes, offers and discounts to attract more and more customers.  Online shopping websites should start the quick home delivery so that in this busy life customer gets their desired thing at right time.  Online shopping websites should have proper security system so that on one computer can harm with virus or any thing.  Computer online shopping websites should provide the product on free shipping charges.  Appearance and designing of such websites should be attractive.  Procedure of the online shopping websites should not be very difficult.  They should provide quality products at affordable prices and having different types of products for different income customers is another advantage.  These websites should provide all ranges of the products from lowest to highest with specific photograph of the product.  Payment options of Western Union, money gram, pay pal and bank transfer should be available in these websites.  Website should not offer such thing which is out of stock.  Problem section should be available in these websites, so that when ever customer faces the problem, they can write in it.
 Free gift offer should be there when the customer purchase in heavy amount.  Latest product and update information should be available in websites.  Online shopping websites must also follow some loyalty programs to retain their profitable customers.  Shopping websites should alter their product mix in such a way so that they can provide better services to their customers.  Online shopping websites must be careful about quality, price & display of products so that they can also attract customers in future
CONCLUSION As per the study I personally feel that India is a country of diversified social classes who have different needs, different value system and taste and preferences. Some of the people are value conscious whereas some are price conscious. At present generally consumers have two different prospective for both online shopping websites and physically visit the shops respectively. Consumers perceive local shops as a mean to fulfill wants, whereas shopping websites stores as to fulfill needs. Consumers who generally visit online shopping websites, malls are less price conscious and looking for more quality or in other word more value conscious. It is a modern era in the 21 century the life style of the people has been totally changed. Whole if the world economy has become globalize. The diversity of the culture has changed the people perception and also generated new concept of business. Online shopping has been globalized and there are so many online website have been entered in online shopping. They are provided so many facilities to their consumers like quality product on reasonable prices and discounts. This market research report further analyzes the sustainability of the online shopping websites and its recent trend. My survey indicates that the maximum consumer make the purchase offline because of the lack of awareness towards online shopping and shopping
portals. Customers are quite satisfied with the products and prices that are charged by shopping websites. After conducting survey and analyzing data it can be concluded that people are satisfied visiting shopping websites and there are factors like quality of products, variety of different product which attracts people to visit shopping websites whether they find products and services on high prices. People like to visit in shopping websites because quality is there and satisfaction is there from. People find shopping websites better than shops because there are varieties of products and it is easy to find and compare the products at one place.
BIBLIOGRAPHY BOOKS:  Kothari, C.R research methodology, New Delhi, New age international (P) limited, Publishers, 2005.  Boyd, Harper W, Westfall, Stanley F, marketing Research.  Text and cases Delhi: All India book seller, Ed 1999 Kotler, Philip, “Marketing Management “, New Delhi: Prentice Hall of India pvt ltd, Ed 1999. WEBSITES:
 http://www.scribd.com  http://jcmc.indiana.edu/vol8/issue1/ha.html  https://docs.google.com/viewer?a=v&q=cache:IQ-  http://jiad.org/article138 

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Consumer perception of online purchase about computer electronic devices

  • 1. ResearchArea: Jalandhar Submitted in partial fulfillment for the degree of MASTER IN BUSINESS ADMINISTRATION Punjab Technical University, Jalandhar (2010 – 2012) Under the guidance of: Submitted by: Mr. Savdeep Vasudeva Sarbjeet Singh Assistant professor of Business Management MBA 4th sem Roll no 100232243875 DAV INSTITUTE OF ENGINEERING & TECHNOLOGY JALANDHAR
  • 2. TABLE OF CONTENTS CHAPTER PARTICULARS PAGE No. PREFACE DECLARATION ACKNOWLEDGEMENT CERTIFICATE Chapter 1 INTRODUCTION 9 Intro about online shopping List of websites provide facility to online shopping Types of computer product in websites Roadblocks in online shopping Consumer Preferences How has the Indian consumer changed over year Recent trends of online shopping in India A promising future for online shopping How these websites works What's these website an offer? CHAPTER 2 REVIEW OF LITERATURE 28 CHAPTER 3 OBJECTIVES OF THE STUDY 34 RESEARCH METHODOLOGY 35 CHAPTER 5 DATA ANALYSIS AND INTERPRETATION 38 CHAPTER 6 FINDINGS 116 CONCLUSION 119 SUGGESTIONS 121 LIMITATIONS OF THE STUDY 122
  • 3. CHAPTER 7 REFERENCES 124 QUESTIONNAIRE 125
  • 4. INTRODUCTION Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping. Online shopping signifies to the procedure whereby customers buy item for consumptions, manufacturing goods or services via online. Earlier, buyers in India had very traditional frame of mind concerning online shopping for any computer articles and this denotes was neither favored not was offered much importance. With the escalating terror of loosing hard earned money, people in India used to evade shopping online. But nowadays with technological progression and most secured services, circumstances of shopping in India have much modified. Particularly online computer accessories shopping in India is rapid fast. The conventional Indian way of thinking about shopping is conformist. Purchasers always desired to touch and feel the items prior to buying it, and also ensure that they get the finest bargain and the most excellent deal. But with upgrading and the speedy pace of existence nowadays, the prospect has modified. The time constraint factor is one of the major causes of the growing addictions on Online Shopping! In 1990 Tim Berners-Lee created the first World Wide Web server and browser. It opened for commercial use in 1991 . In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Inter shop introduced its first online shopping system. In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared. Online shoppers commonly use a credit card to make payments, however some systems enable users to create accounts and pay by alternative means such as Cheque, Debit card, postal money order The internet explosion has opened the doors to a new electronic world. Consumers are now able to use the internet for a variety of purposes such as research communication online banking and even shopping. With such advantages the internet is rapidly becoming the main method of communication and of conducting business conveniently. Online shopping behavior (also called online buying
  • 5. behavior and Internet shopping/buying behavior) refers to the process of purchasing products or services via the Internet. 2000). various accessories are available in the market these days that are capable of adding functionalities to a system. One may find a comprehensive range of accessories of different brands and various types. It becomes quite difficult to choose the right kind of accessory for the computer system they are using. However, there are various brands that provide accessories along with the brands. But the major factor that influences customers is the price of the accessories and due to which most of the buyers seek for proper discounts. There could be many reasons as to why computer manufacturers, resellers or dealers provide great discounts on the accessories. The manufacturers usually posses a huge stock of accessories that are not sold which are kept in warehouses. In order to sell their unsold items, they provide customers with higher discounts with the purpose of clearing the stock. While the resellers and dealers offer promotional or seasonal discounts when they witness low sales. Besides this, other special offers are also promoted by the sellers which are particularly for a shorter span of time. These promotional offers are generally displayed over the manufacturers and sellers own websites. Various discounts are offered by the wholesalers and even the retailers that are unable to meet the products quality standards. Typically, these problems are ignored by the quality controllers. But till the time, the accessories are functioning in a proper way; most of the users feel satisfied with very minute defects which are either not clear or visible. There are varied discounts available on camera batteries, digital cameras, keyboards, desktops, hard drives, floppy chips and memory chips when purchased in bulk quantities. Various educational establishments and esteemed organizations like colleges or schools buy discount computer accessories. But the offers available must be checked prior to any kind of purchases. In the typical online shopping process, when potential consumers recognize a need for some merchandise or service, they go to the Internet and search for need- related information. However, rather than searching actively, at times potential consumers are attracted by information about products or services associated with the felt need. They then evaluate alternatives and choose the one that best fits their criteria for meeting the felt need. Finally, a transaction is conducted and post-sales services provided. In this project I will find that what consumer thinks while purchasing the
  • 6. product online on various websites. There are so many websites are all over the world who give the facility to purchase every product online like computer devices, shoes, watch, Car utilities, Books, Health & Beautiful, Jewellery, Kitchen, Mens apparel, Mobile phones, Valentine gifts, Watches etc. But in this project I consider only computer devices. There is a list of websites which give the facility to the peoples purchase the product online:-
  • 7. List of websites which provide facility to online shopping Intermediary’s websites  www.Rediff.com  www.snapdeal.com  www.indiaplaza.in  www.futurebazaar.com  www.naaptol.com  www.shopperstop.org  www.dell.co.in  www.letsbuy.com  www.watchkart.com  www.flipkart.com There is also some company websites who provides the facility to purchase the computer product online. These websites not intermediaries, actually they are the company websites like: Direct Company websites:  www.dell.co.in  www.sony.com  www.wipro.in  www.lenovo.com  www.hp.com  www.hcl.com Some of the people purchase the laptops and computer accessories from direct company websites also. This is because perception of the people is good towards the company. According to the report of Boston Consulting Group and Shop.org., the Internet shopping conversion rate in 1999 was 1.8% and gradually increased to 3.1% in 2003. One
  • 8. advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. In now a days people who works in multinational company do not have enough time to purchase the product manually by visiting every shop. They simply book the order to websites and the product reach at their doorstep. In websites the image of every product is available with prices. Same as people work in banking sector, give the order of computer product to websites. It is the very easy method to purchase the product on computer and it saves lot of time.
  • 9. Types of computer products available on online shopping websites:  Laptops  Hard disk  Ram  DVD writer  Mouse  Keyboard  Pen drives  Wireless mouse  Wireless keyboard  Power supply  Mother board  External hard disk  Bluetooth  Computer cabinet fan  Card reader  Routers  Wireless headphone  Webcam  Monitors  Lcd  Led
  • 10. Roadblocks of online shopping There are several roadblocks that make it difficult to progress in the online shopping. Researcher encounters a number of problems like not dealing with physical distribution. The major problems are listed below. 1. Standard of living: The number of people below the poverty line is more in Punjab. Most of the illiterate people does not know about the online shopping and those who know about that, its perception is not up to the mark. 2. Low literacy levels: The low literacy levels in Punjab leads to a problem in online shopping. Online shopping is only for those people who know about computer and more over internet. 3. Low per capita income: Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular. 4. Many languages and diversity in culture: Factors like cultural congruence, different behaviour and language of the respective areas make it difficult to handle the customers. Traits among the sales force are required to match the various requirements of these specific areas. 5. Lack of communication system: Quick communication is the need of the hour for smooth conduct of business, but it continues to be a far cry for illiterates due to lack of communication facilities etc. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional, which may be a problem for effective communication. 6. Spurious brands: Cost is an important factor that determines purchasing decision in peoples. A lot of spurious brands or look-alikes are available, providing a low cost option to the customer. Many a time the customer may not be aware of the difference due to illiteracy.
  • 11. CONSUMER PREFERENCES In order to go for online shopping, preferences of the consumers is directly related to: 1) Low price 2) Better quality 3) Credit facility 4) Variety of products 5) Security 6) Specific brand 7) Quick information 8) Latest products 9) Discounts 10) Door step delivery 11) Quick approach 12) Cost saving 13) Reduces physically visit the shop 14) Easy support
  • 12. HOW HAS THE INDIAN CONSUMER CHANGED OVER THE YEARS? In the past few years the whole concept of shopping has been altered in terms of format and consumer buying behaviour. With the increasing urbanization, the Indian consumer is emerging as more trend conscious. There has also been a shift from price considerations to design and quality. Indians have grown richer and thus spending more on vehicles, phones and eating out in restaurant. The spending is focused more outside the homes, unlike in other Asian countries where consumers have tended to spend more on personal items as they grow richer. Spending on luxury goods have increased twice as fast with 2/3 of India’s population is under 35, consumer demand is clearly growing. Online shopping signifies to the procedure whereby customers buy item for consumptions, manufacturing goods or services via online. Earlier, buyers in India had very traditional frame of mind concerning online shopping for any computer articles and this denotes was neither favored not was offered much importance. Indian consumer is also witnessing some changes in its demographics with a large working population being under the age group of 24 – 35. One advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. In now a days people who work in multinational company do not have enough time to purchase the product manually by visiting every shop.
  • 13. RECENT TRENDS OF ONLINE SHOPPING IN INDIA  Online shopping in India is witnessing a huge revamping exercise as can be seen in the graph.  Online shopping, often referred to as online retailing or e-tailing, is growing every day in India. Although most studies in the past have pointed out that the process has been rather slow and unsuccessful in gathering much steam with the Indian users. But the trend is changing now and a good number of savvy online users are making big purchases on the digital space.  In the next one year, at least eight out of ten Indian consumers will make online purchases.  At present, a little more than a quarter users reveal that they spend 11% of their monthly shopping expenditure on procurements online.  71 percent Indians trust recommendations from family when making an online purchase decision. Recommendations from friends stand at 64 percent and online product reviews at 29 percent.  Almost 50% Indian consumers’ use and trust social media sites to help them make online purchase decisions.  When buying Consumer Electronics, software and other items (such as a car), users rely heavily on online reviews and opinions.  More than four in ten Indians are likely to share (post a review/ Tweet) a negative product or service experience online than they were to share a positive one.  In the next 6 months or so, most buyers will purchase books (41%), airline tickets (40%), and electronic equipment such as TV, Cameras (36%) online.  The trend observed is that while shopping, most buyers ideally shop from websites that allow them to select products from many different stores.
  • 14. A Promising Future for Online Shopping For retailers in India, online shopping is gaining recognition as it entails many benefits for them. Some of these include:  No real estate costs  Enhanced customer service  Mass customization  Global reach  Niche marketing and specialized stores In the next 5 years, online retailing in India will strengthen even further. However, long- standing sustainability directly depends on factors like changes in the market, innovations and interactivity by market players. Owing to increased penetration of credit cards and easy access of computing facilities to a wider population, Internet retailing in India has witnessed a promising growth. Moreover, bargain-hunting consumers are latching on this trend as Internet retailers are known to offer products at special discounted prices compared to store-based retailers.
  • 15. HOW THESE WEBSITES WORKS These portals list the supplies on offer. You need to select the items and the quantity required, and these are added to your virtual shopping cart. Every site functions differently. Some prefer that you create a customer account with them, while others only accept orders on the customer care numbers or through e-mails. You can either call or send a message to the number mentioned on the Website, then sit back and wait for the confirmation of your order. Most sites have fixed durations for order and delivery. If you want the items delivered on the same day, even if it means by late evening, you have to place your order by 1 p.m. If you don't adhere to this time limitation, they will be sent the next day. The portals have a minimum order stipulation and you may also have to pay a delivery charge.
  • 16. What's these website an offer? The intermediaries’ sites offer also seasonal fruit and vegetables, along with exotic ones, such as asparagus, artichokes, leeks and zucchini. A few even provide dry fruits, while others supply cooking oil and ghee. Most of these sites offer loyalty or reward points and prepaid vouchers to ensure repeat customers. These can be used against future purchases. The Websites also list nutrition facts, have interactive forums, and mention tips on how to whip up a quick meal. Some even have comprehensive charts and graphics to lure consumers into choosing custom-made packages—a mix of veggies and fruits for kids, pregnant women and dieters. There is a variety of payment options, ranging from debit and credit cards to mobile phones. You can also opt for cash on delivery if you prefer to pay only after ensuring that the perishable commodities you have purchased online are fresh. If you find it cumbersome to visit the Website every day, some portals allow you to place orders for the entire week or even months at one go. We checked out a few grocery portals from around the country to find out how they add to our convenience. WHY BUY ONLINE  It’s convenient and save time.  It reduces impulsive spending and there is variety of payment options.  You get access to variety of products including exotic food, which your neighborhoods grocer may not have at a few clicks of the mouse.
  • 18. REVIEW OF LITERATURE 1. According to a Fast Company survey, Internet buyers as a percentage of all Internet users grew from just 19 percent in 1995 to 71 percent in 1999. Not only has Internet shopping created a new marketing provider that meets consumer needs and wants, but it has changed the consumer shopping culture with "click" shopping and ease of information searches for product or service buying. Nevertheless, unlike traditional commerce, e-commerce involves various risks (e.g., product performance, credit card information) that consumers perceive and thus consumers are engaging in risk reduction behaviors based on a wealth of information. Tan (1999) shows that consumers perceived Internet shopping to be higher risk than in-store shopping; hence only less averse consumers are more likely to use Internet shopping service. She also shows a close correlation between risk aversion and Internet shopping. The several information resources - particularly brand, word-of-mouth, and customized information-act as guides that can reduce risk and facilitate consumer choice (Krishnamurthy, 2001). In particular, the information in new purchase situations is far more important for first-time customers than for existing customers. Hawthorne, Latour & Williams (1993) and Tan (1999) reported that to reduce risk consumers seek out reference group appeal (e.g., particularly, the experts who relate to Internet fields, rather than the common man); users may constitute such informal influence, particularly in new buy situations in which they don't experience yet. The goal of the study reported here was to examine how consumer perceived information affects consumer perceived risk under pre-purchase conditions. This study is closely related to that of Kivetz and Simonson (2001). Their findings indicate that missing information can affect buyers' tastes and purchase decisions made subsequently. Perhaps the findings of the current project might offer greater insight (e.g., correlation between consumer perceptions and pre-purchase information) to e-marketers and e-marketing researchers about the role of pre-purchase information in management and e-commerce. 2. According to Liu and Shrum 2002; McMillan 2000, 2002; Williams, Rice, and Rogers 1988 studies define interactivity as the presence or absence of particular features
  • 19. of Web sites, though Lee and colleagues (2004) show that even when the interactive features are the same, consumers' perceptions of interactivity vary significantly across sites. The particular features of a Web site appear effective only if they influence consumers' navigation and usage of the site. That is, the effect of Web site features on consumers' attitude toward the Web site is mediated by their perceptions of interactivity (Wu 2005). Therefore, we focus on consumers' perceptions of Web site interactivity. Although previous research has investigated determinants of interactivity, such as the structure and communication design features of Web sites (e.g., Coyle and Thorson 2001; Macias 2003; Sicilia, Ruiz, and Munuera 2005), few studies highlight the characteristics of consumers, as members embedded in social groups, or examine how their perceptions of interactivity may depend on other persons. In addition, though some studies investigate the influence of speed and message type on consumers' perceptions of interactivity (e.g., Song and Zinkhan 2008), they generally examine these effects only from a consumer-to- company interaction perspective. Other than literature on interactive communities, research does not address consumers' perceptions of interactivity in consumer-to- consumer interactions (Yadav and Varadarajan 2005). Accordingly, we address these gaps by exploring how social presence cues in consumer-to-consumer interactions on the Web site affect consumers' perceived interactivity. 3. Li and colleagues (1999) found that customers who purchase Internet stores more frequently are more convenience-oriented and less experience-oriented. These consumers regard convenience during shopping as the most important factor in purchase decisions, because they are time-constrained and do not mind buying products without touching or feeling them if they can save time in this way. Potential consumers are often prevented from shopping online by their concern for security (Han et al. 2001). However, perceived risk can be reduced by knowledge, skill, and experience on the Internet, computer, and online shopping (Ratchford etal. 2001; Senecal 2000; Sukpanich and Chen 1999; Ha et al. 2001). 4. Bellman and colleagues (1999) propose that people living a wired lifestyle patronize e-stores spontaneously. These consumers use the Internet as a routine tool to receive and
  • 20. send emails, to do their work, to read news, to search information, or for recreational purposes. Their routine use of the Internet for other purposes leads them to naturally use it as a shopping channel as well. Other factors found to impact consumers’ online shopping attitudes and behavior include cultural environment, need specificity, product involvement, disposition to trust, the extent to which they would like to share values and information with others, the extent to which they like being first to use new technologies, and tendency to spend money on shopping (Borchers 2001; Koufaris et al.2002; Lee et al.2000; Kimery and McCord 2002; Bellman et al 1999). 5. Zhang, von Dran, Small, and Barcellos (1999, 2000), and Zhang and von Dran (2000) make an attempt to evaluate website quality from user satisfaction and dissatisfaction perspective. Their studies show that website design features can be regarded as hygiene and motivator factors that contribute to user dissatisfaction and satisfaction with a website. Hygiene factors are those whose present make a website functional and serviceable, and whose absence causes user dissatisfaction. Some of the categories of hygiene factors are: Privacy and Security, Technical Aspect, Navigation, Impartiality, and Information Content. Motivator factors are those that add value to the website by contributing to user satisfaction. Five categories of motivation factors are: Enjoyment, Cognitive Outcome, User Empowerment, Credibility, Visual Appearance, and Organization of Information Content. In their continued effort, they further discover that the most important website quality factors ranked by e-commerce consumers are hygiene factors (von Dran and Zhang 1999; Zhang et al. 2000; Zhang and von Dran 2001a, 2001b; Zhang et al. 2001). Liang and Lai (2000) review website quality factors influencing Internet buying behavior by categorizing them into three groups, two of them are also named motivators and hygiene factors, and third media richness factors. In their opinion, motivators are those who support the transaction process directly while hygiene factors protect the consumers from risks or unexpected events in the transaction process. Media richness factors “add more information channels or richness in information presentation” (Liang and Lai 2000, p. 2). They suggest that providing good transaction support will help Internet venders to beat their electronic competitors, while the hygiene factors need to be paid attention if they want to attract consumers from traditional stores.
  • 22. RESEARCH METHODOLOGY INTRODUCTION Research methodology is a careful investigation or inquiry is a systematic way and finding the solution to the problem in the research. It comprises of defining and redefining the problem, formulation the hypothesis or suggested solutions, collecting and evaluating data, making deductions and searching conclusions and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. STEPS TO DEVELOP THE RESEARCH PLAN DATA SOURCES Two types of data were taken into consideration are Primary data: The collection of data from this source includes surveys with questionnaires etc. It will be collected with the help of a self administered questionnaire. This questionnaire aims to gather information related to various Branded products. Questionnaire design: As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words Used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents. Secondary data: It is collected from books, journals, magazines, newspapers and websites. Descriptive experimental research The researches were primarily both exploratory as well as descriptive in nature. The sources of the information are both primary and secondary. A well-structure
  • 23. questionnaire was prepared and personal interview were conducted to collect the customer’s perception and buying behavior, through this questionnaire. PROBLEM FORMULATION Research Problem: - We know that online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. But there are some problems relating to the online websites, like some of the consumer can not completely trust in such type of online websites. Some of the consumers find it difficult to confirm the reliability of the provided products. It is possible to buy a product that it would not value as much as you pay for it. Research Methodology: - A research methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Research Design: - Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic for example, a frozen ready meals company learns that there is a growing demand for fresh ready meals but doesn’t know much about the area of fresh food and so has to carry out research in order to gain a better understanding. It is quantitative and uses surveys and panels and also the use of probability sampling. Descriptive research is the exploration of the existing certain phenomena. The detail of the facts won’ be known. The existing phenomena’s facts are not known to the persons.
  • 24. Nature of Data:- Primary data is basically fresh data collected directly form the target respondents. It is collected through questionnaire surveys. Secondary data that is already available and published. It could be internal & external source of data. Internal sources are those which originate from the specific field or area where research is carried out. External sources are those which originate outside the field of study like books, journals, newspaper and internet. Sampling Plan The type of sampling which I have used for my project is the convenient sampling. Sampling Size The sample size is 100. The data was collected by administering a questionnaire to this sample. Analysis Technique For analyzing the responses of customers, I have used simple averages and for the purpose of interpretation of analyzed data some of the graphical representations were used. DATA COLLECTION:- Primary data: - Primary data was selected from the sample by a self administrated questionnaire in presence of the interviewer. Secondary data: - Secondary data was collected through  Articles  Internet  Reports  Books  Magazines  Newspaper
  • 25. OBJECTIVE OF THE STUDY Electronic commerce has witnessed extensive growth. Dozens of Internet-only companies have surfaced in many industries and numerous conventionally-operated companies have adopted the Internet. Accordingly, competition among online companies has become rigorous. Most online companies publish price information and feature price in their advertising campaigns. The present study of the online purchase revolves around the following objectives:- 1. To study the role of perceived risk in consumer decisions. 2. To study the price and quality impact on consumer perception about computer devices. 3. To study what promotional strategies are used by websites to sell their products. 4. To study the various major companies and websites which provide the facility for online purchase of IT commodities.
  • 26. DATA ANALYSIS & INTERPRETATION Q1.Do you surf online? Yes No No of Respondent 100 0
  • 27. Q2.How much time you spent for online shopping in a day? Less than 1 hours Between 1-3 hours Between 4-6 hours 7 and above hours 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Yes, 100 No, 0 Yes No
  • 29. LIMITATIONS OF THE STUDY  Area of the study chosen was not large.  Time available was very short.  Misleading information by respondent can’t be neglected.  Some of the customer’s problems don’t lead to valid research conclusion.  In the fast changing world the data collected soon become historic and research findings based on them irrelevant.  During the interviews with the respondents, I have found that the customers have blind faith on physically visit the shopping, which cannot be defined in quantitative terms.  The respondents were biased to some extent.  My research is limited to only 50 respondents while in reality the market for online shopping is too big. Hence the data might change if we further increase the sample size.  The accuracy of data is doubtful to some extent as some of the respondents were ignorant and were hesitant towards their response.  We can not generalize these results 100 percent true as study was conducted upon only Jalandhar region.  Time constraint
  • 30.  Budget constraint.  Sometimes respondents do not respond truly just they answer for the sake of formality as a result of which result might get deviated.  FINDINGS  All of the respondents were aware about online purchase about computer electronic devices.  Maximum of the people visit the websites for shopping purposes.  People spent amount according to their affordability and needs while shopping.  Majority of the people spent between Rs 1000 – 3000 during visit the websites.  Maximum consumers prefer buying goods on cash basis when delivery rather than credit card.  Mostly consumer feels they can get almost everything what they want in website.  Most of the consumer said that money sent online is saved.  According to most of the respondents quality of online product is good.  Most of the consumer purchase the product from direct websites like dell.co.in , hcl.com , sony.com  One of the most important factors for online purchase is time saving and quick information about the product.  Respondents are also agree online shopping helps in physically visit the shop.  Most of the people among 15 to 30 years a visiting shopping websites for the purpose of entertainment while in the age group of 30-45 years, people visit for the purpose of shopping with entertainment.
  • 31.  The 60% of people visiting shopping websites is of is 15-30% years where as 30% is of 30-45 years.  Every shopping websites has a separate strategy for their customers. Most of them have various loyalty programs and schemes for their key customers.  While consumer visits in online shopping websites for compare the product quality & price with the retail stores and once if they are satisfied then only come for the repurchase.  The online shopping websites provide special services such as home delivery, shopping by mobile and obtaining a product on order.  Since these online websites need not to pay any kind of taxes. So it makes possible for them to offer lower price to selected customers.  The primary purpose of most of people visiting retailer shop is requirements where as purpose of visiting online websites are entertainment and as well as purchase intention.  As per the survey average frequency of visiting a consumer to the online shopping is twice in a month.  Due to availability of many products like laptops, ram, hard disk, pen drives etc. Laptop is the most promising segments about half of the people during survey prefer shopping from these shopping websites.  Due to personal touch, home delivery & convenience about 75% of the people still prefer shopping from shops. 
  • 32. SUGGESTIONSAND RECOMMENDATION  Online websites should provide schemes, offers and discounts to attract more and more customers.  Online shopping websites should start the quick home delivery so that in this busy life customer gets their desired thing at right time.  Online shopping websites should have proper security system so that on one computer can harm with virus or any thing.  Computer online shopping websites should provide the product on free shipping charges.  Appearance and designing of such websites should be attractive.  Procedure of the online shopping websites should not be very difficult.  They should provide quality products at affordable prices and having different types of products for different income customers is another advantage.  These websites should provide all ranges of the products from lowest to highest with specific photograph of the product.  Payment options of Western Union, money gram, pay pal and bank transfer should be available in these websites.  Website should not offer such thing which is out of stock.  Problem section should be available in these websites, so that when ever customer faces the problem, they can write in it.
  • 33.  Free gift offer should be there when the customer purchase in heavy amount.  Latest product and update information should be available in websites.  Online shopping websites must also follow some loyalty programs to retain their profitable customers.  Shopping websites should alter their product mix in such a way so that they can provide better services to their customers.  Online shopping websites must be careful about quality, price & display of products so that they can also attract customers in future
  • 34. CONCLUSION As per the study I personally feel that India is a country of diversified social classes who have different needs, different value system and taste and preferences. Some of the people are value conscious whereas some are price conscious. At present generally consumers have two different prospective for both online shopping websites and physically visit the shops respectively. Consumers perceive local shops as a mean to fulfill wants, whereas shopping websites stores as to fulfill needs. Consumers who generally visit online shopping websites, malls are less price conscious and looking for more quality or in other word more value conscious. It is a modern era in the 21 century the life style of the people has been totally changed. Whole if the world economy has become globalize. The diversity of the culture has changed the people perception and also generated new concept of business. Online shopping has been globalized and there are so many online website have been entered in online shopping. They are provided so many facilities to their consumers like quality product on reasonable prices and discounts. This market research report further analyzes the sustainability of the online shopping websites and its recent trend. My survey indicates that the maximum consumer make the purchase offline because of the lack of awareness towards online shopping and shopping
  • 35. portals. Customers are quite satisfied with the products and prices that are charged by shopping websites. After conducting survey and analyzing data it can be concluded that people are satisfied visiting shopping websites and there are factors like quality of products, variety of different product which attracts people to visit shopping websites whether they find products and services on high prices. People like to visit in shopping websites because quality is there and satisfaction is there from. People find shopping websites better than shops because there are varieties of products and it is easy to find and compare the products at one place.
  • 36. BIBLIOGRAPHY BOOKS:  Kothari, C.R research methodology, New Delhi, New age international (P) limited, Publishers, 2005.  Boyd, Harper W, Westfall, Stanley F, marketing Research.  Text and cases Delhi: All India book seller, Ed 1999 Kotler, Philip, “Marketing Management “, New Delhi: Prentice Hall of India pvt ltd, Ed 1999. WEBSITES:
  • 37.  http://www.scribd.com  http://jcmc.indiana.edu/vol8/issue1/ha.html  https://docs.google.com/viewer?a=v&q=cache:IQ-  http://jiad.org/article138 