Executive Summary

The fast growth of e-commerce sector in India is being driven by great consumer
choice and excellent convenience. A strong business plan coupled with a top class
level of service is critical to success. Before these aspects are explored and
improved, it is important to understand the unique attributes which define ecommerce in India. India has an internet user base of 50 million plus users. The
penetration of e-commerce is low compared to markets of developed countries, but
is growing at a much faster rate with a large number of new entrants.
Online buying and selling has seen a lot of transaction in the last few years. India
has almost 130 million Internet users at present, out of which more than 12% are
engaging in online transactions. The online user base is expected to cross 300
million in the next 2 3 years and a larger percentage of people are expected to
transact online by 2015.

Title of the project

How online selling has changed the marketing perspective including
customer perception Why customers buy online:

Dont have time to go to the shop for the same stuff

Variety of choices
Fast and furious shopping
Can compare prices with other portals
Cash on delivery benefit Online reviews
And many more

Why customers dont buy online:

Dont trust privacy
Fraud and security concerns
Difficult to judge the quality of the stuff online
Want to touch and feel the stuff
No internet connection
Lack of full cost disclosure
And many more
The main objective of the project is the need to understand peoples perception
about online shopping and sellers perception about online selling. The need to how
online selling has changed marketing perspective including consumer perception is
because today the trend of purchasing online is booming. From flats to shoes,
people prefer to buy online, but still there are many Indians who prefer not to buy
online because of various reasons. To study their views and preferences and to
study the coming trends is the threefold objective of this project.
The threefold objectives of this research are:

To know the consumers awareness and perception about the products and
services provided on internet.
To know how it provides products and services and satisfies their customers.
To know how it reduces the uncertainty in purchase decision process.

AnalysisIt is true that rapid increase in internet usage has led to an increase in the online
shopping as 80 percent of the online shopping has been done by the regular online
shopper who have been using internet for more than five years and 36% of the
online shopping have been done among the regular shopper who uses the Internet
for more than 20 hours a week. Thus increase in usage of Internet has led to an
increase in online shopping. But shopping still constitute a small amount of the
major activity on the internet as 32% of the regular online shoppers uses Internet for
communication while only 10% uses it for shopping. Communication still constitutes
the major activity on the Internet.
Demographic Factors
Online behaviour is affected by demographics i.e. by gender, education and income.
Hypothesis
1. More male Internet users are frequent online buyers than female Internet
users.
2. Regular online buyers are better educated than occasional online buyers.
3. Income is higher in case of a regular online shopper than occasional online
buyer.
Conclusion
The most important motivating factor, which influenced the online shopping, was
convenience followed by price and availability. Regular online shoppers considered
convenience as the main motivating factor while buying and were less price
sensitive. But the online marketers should attempt to differentiate their products or
services making the comparison easier. The marketers should bring out innovative
ways so that the consumers can do more online shopping while taking the full
advantage of rich information, easy access and convenience of the Internet.

Chapter 1 Introduction
From a 14 year old teenage to a 90 year old person, everybody is online today.
People are buying and selling everything online, may be it a pin or a plane, travel

packages or tickets, phone or a laptop, bulb or a Bluetooth device, second-hand car

or a new house. Everything is online for sell. People are spending money online as
never before and it is growing at a very high pace. Online presence is today a
mandatory thing for every business (Whether small or big).
Consider the following:

There are over 200 million Americans that actively use the Internet on a daily
basis.

80% of individuals aged 32-44 buy products on the Internet.

Those aged 45-54 spend on average $647 online every three month.

In 2009, online retail spending during the holiday season alone exceeded $27
billion.

By 2015, its projected that over 90% of people using the Internet will be
online shoppers.
(Bower, 2011)

With the excellent growth of online stores, if your organization sells product, you
actually need online social media presence for sure.
The fast growth of e-commerce sector in India is being driven by great consumer
choice and excellent convenience. A strong business plan coupled with a top class
level of service is critical to success. Before these aspects are explored and
improved, it is important to understand the unique attributes which define ecommerce in India. India has an internet user base of 50 million plus users. The
penetration of e-commerce is low compared to markets of developed countries, but
is growing at a much faster rate with a large number of new entrants.
(Rau, n.d.)
Today, the online market is flooded with various e-commerce choices for customers
to choose from. A variety of unique, different and innovative products and services
are being offered spoiling customers for choice. Online shopping is no more a
privilege enjoyed by your friends and family living in the US or UK. Today, it is a
reality in India. In the last couple of years, the growth of online business in India has

been phenomenal as more people have started discovering the benefits of using the
online platform.
Twist in Business
Indian Online industry has improved over a period of time with new Strategies,
developments and innovations that have changed the rules of the game globally.
Cash on delivery (COD) is one the best example. In a country where credit card
usage is much lower than other developed countries and where e-commerce
companies are still working hard to build relation and trust among customers,
introducing cash on delivery has been one of the key factors for the success of the
segment. At present, COD is the preferred payment mode for close to 55-60% of all
online transactions in the fashion and lifestyle segment in India.
Delivering experiences
Besides COD, e-commerce giants need to focus on customer perception and
experience as a means to build trust and confidence. Customer experience
encompasses every interaction a customer has with your service from placing an
order to interacting with your customer service team, to the actual delivery
experience.
Providing an awesome delivery experience is the most important aspects of
delighting customers. This doesnt necessarily mean constantly pushing the frontier
on faster deliveries. Building trust, reliability and being consistent should be the
motto; its okay if your delivery is slow for 2-3 days. Delivery service should be also
your prime objective because the more faith in delivery service of your company, the
more likely he is to come again. Delivering an excellent experience is critical not
only to ensure continuous purchase from the customer, but also for creating a brand
value and gain word-of-mouth publicity.
Growing the base
Online buying and selling has seen a lot of transaction in the last few years. India
has almost 130 million Internet users at present, out of which more than 12% are
engaging in online transactions. The online user base is expected to cross 300

million in the next 2 3 years and a larger percentage of people are expected to
transact online by 2015.
(Bansal, 2012)
Growing opportunities
Tier 2 and tier 3 cities are in the limelight for all the good reasons. On an average,
almost 50 55% of our business come from tier 2 and tier 3 cities and I believe this
ratio is similar across other ecommerce companies in the country. With metro
markets reaching maturity mark, I believe tier 2 and 3 cities are going to be the
biggest drivers for online businesses in India in the coming future. Building a
powerful supply chain is the most critical for efficiently fulfilling orders from these
cities and tapping their full potential.
The e-commerce market is growing at a fast pace and changing the dynamics of the
retail sector. In the upcoming years, this sector is expected to contribute around 810% of the total retail sector in India. This growth is bound to continue if ecommerce companies focus on innovation, building strong technology infrastructure
and delivering the best customer service.

Chapter 2 Literature Review

The recent literature on customer online buying decisions has mainly concentrated
on the factors which affect the customers to buy on internet. . In the area of
customer behavior research, there are general models of purchasing behavior that
depict the process which customers use in making a buying decision. These models
are very important to marketing expects as they have the ability to explain and
predict customers buying behavior.
The classic consumer purchasing decision-making theory can be characterized as a
continuum extending from routine problem-solving behaviors, through to limited
problem-solving behaviors and then towards extensive problem-solving behaviors.
(Bray, n.d.)
Benedict et al (2001) in his study on perceptions towards online shopping reveals
that perceptions toward online shopping and intention to shop online are not only
affected by ease of use, usefulness, and enjoyment, but also by exogenous factors
like consumer traits, situational factors, product characteristics, previous online
shopping experiences, and trust in online shopping.

GfK Group (2002) shows that the number of online shoppers in six key European
markets has raised to 31.4 percent from 27.7 percent last year. This means that 59
million Europeans use the Internet regularly for shopping purposes. However, not
only does the number of online shoppers grow, the volume of their purchases also
increases over-proportionally.
Reinhardt and Passariello, (2002) In the US, says that online sales are forecasted to
exceed $36 billion in 2002, and grow annually by 20.9 percent to reach $81 billion in
2006. Europeans are spending more money online as well. Whereas combined
revenues for Amazon.coms European operations grew at more than 70 percent
annually in each of the past three quarters, topping $218 million. While these figures
show that a large number of consumers in the US and Europe frequently use the
Internet for shopping purposes, it is not clear what drives them to shop online and
whether these numbers could be even.
(Haq, n.d.)
Motivations of consumers to engage in online shopping include both utilitarian and
hedonic dimensions. Whereas some Internet shoppers can be described as
problem solvers, others can be termed seeking for fun, fantasy, arousal, sensory
stimulation, and enjoyment (Hirschman and Holbrook, 1982).
The problem solvers merely shop online in order to acquire a specific product or
service, in which case shopping is considered to be an errand or work (Babin et

al., 1994). Their main concern is to purchase products in an efficient and timely
manner to achieve their goals with a minimum of irritation. In contrast, the second
category sees online shopping as enjoyment and seeks for the potential
entertainment resulting from the fun and play arising from the Internet shopping
experience. They appreciate the online shopping experience for its own sake, apart
from any other consequence like, for example, an online purchase that may result
(Holbrook, 1994).
(Dellaert, 2004)
The ability to measure the level of customer delight with online buying is essential in
way to the success and failure of e-commerce industry. To do so, online businesses
must be effectively and efficiently able to determine and understand the core
behavior and values of their existing and potential customers. Online buying factors
focus on customers values, feelings and perceptions during and after the shopping
experience.

Factors that determine this are as:

Convenience
Trust
Trustworthiness of Web merchants
Delivery time
Privacy of Identity
Security of accounts

The typical online user leads a wired lifestyle and is time starved, suggesting that
online shoppers may do so to save time. This indicates that the overall convenience
of the shopping experience is very much important as well as the amount of time it
takes for the product to be received. Trust is of importance during the actual
shopping experience because if the consumer does not trust the merchant to make
good on their purchase a transaction will not take place.
(Schaupp, 2005)

The three most commonly cited reasons for online purchasing have been price and
convenience. The ability to buy online without leaving the home and to have the
products and/or services delivered to the door is of great interest to many shoppers.
The number of users of Internet who are buying online goods and services is
increasingly at a very high pace. In order to be able to identify what factors affect
consumers to shop online, a framework is needed to structure the complex system
of effects of these different factors, and develop an in-depth understanding of
consumers attitudes toward Internet and their intentions to shop online.

According to Davis (1993) consumers attitudes regarding online shopping are

depending on the direct effects of relevant online shopping features. Online
shopping features can be classified into consumers perceptions of functional and
utilitarian dimensions such as ease of use and usefulness, or into their
perceptions of emotional and hedonic dimensions like enjoyment. Also exogenous
factors like consumer traits, situational factors, product characteristics,
previous online shopping experiences and trust in online shopping are
considered that moderate the relationships between the core constructs of the
framework.
(HIRST, 2007)
The most important thing to engage people for online shopping is to develop rust
among the users.
There are various factors that influence the effect of driving online trust. Although
online trust has several possible antecedents and consequence, we focus on Web
site and consumer characteristics as the antecedents, and on behavioral intent as
the key consequence because of the potential managerial implications outlined
earlier. Based on pilot studies, we chose privacy, security, navigation and
presentation, brand strength, advice, order fulfillment, community features, and
absence of errors as the Web site characteristics and familiarity with the Web site,
online savvy/expertise, Internet shopping experience, and entertainment or chat
experience as the consumer characteristics. We propose a conceptual framework in
which the effects of Web site and consumer characteristics on Web site trust, and of
trust on behavioral intent, are positive. We argue that the strength of the positive
relationships between Web site characteristics and online varies across Web site
categories, depending on the following underlying Web site factors:

Financial risk
This refers to the uncertainty of incurring monetary losses while interacting at
a Web site.
Information risk
This refers to the uncertainty associated with providing information at the
Web site. It refers to the risk of personal information being exposed.
Involvement toward or ticket price of the product or service at the Web
site
This refers to the level of the consumers engagement at the Web site.
Knowledge/Information at the Web site
This refers to the depth of information content at a Web site.

 Search for the product or service at the Web site

This refers to the degree of information search typically required for the
product or service at the Web site.
(Bart, 2005)

Consumers concerns towards online shopping

The most important concern of users towards online purchasing is protection from
the threat of their personal security regarding the marketers use the personal
information such as account details, telephone number and other details. Thus,
people hesitate to buy staff online. Issues regarding customers individual specific
information collection such as address, mobile number, demographic characteristic,
and lifestyle and spending patterns are also of concern when online.
(Schrank, n.d.) Online shoppers versus non-shoppers
In 2000, the proportion of Internet users was approximately 80% of the total US
population, but only 18 per cent of Internet users had made purchases online. By
2002, more than one-third of US households had made purchases over the internet.
The rapidly growing number of online purchases urges the study of difficulties that
online users encounter when they make purchases. Privacy and security problems,
the invisible transaction with marketers, and the visual-only product display are
common reasons for online users to hesitate to make purchases. A Donthu (1999)
suggests that internet buyers seek more convenience and innovation and are less
brand conscious and risk averse than non-shoppers. Such individuals are somewhat
similar to innovators who grab the way to adopt a new product (Rogers, 1995).
Therefore, online shoppers are likely to have different risk perceptions from their
non-shopping counterparts.
(Schrank, n.d.)

Chapter 4
Research Methodology
Research Objective
To learn and understand the customers perception, behavior, attitude and
awareness about online selling and internet marketing. To understand the motivation
factors that excites or refuses consumer to buy online. This research will help to
understand the attitude and perception of internet users towards online shopping
and what are the factors that shape the consumers perception towards online
shopping. Understanding of information sources and needs
The below mentions are the questions to be answered:

What is consumers perception towards online shopping?

What are the main concern areas for consumers while online shopping?
which are the factors that shape the consumers behaviour towards online
shopping?

Research Design
Five different factors were identified by studying the existing models of consumer
attitudes 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 45. And
random sampling was done among the internet users.
Research Design proposed to be followed would be as follows:

Selective use of Secondary Source of Data

Careful designing of Primary Source of Data using Questionnaires
Blending of Primary Source of Data and Secondary Source of Data

Questionnaire was designed on a research portal (www.surveymonkey .com) and

responses were collected online only through the help of various sharing platforms
such as Facebook, Twitter, Google plus, LinkedIn and also through emails. I have
tried to make the questionnaire short and simple so as to motivate people to take up
the survey.

Questionnaire
1. Are you an internet user?
Yes
No

2. Are you an online shopper?

Yes
No
Will start now

3. If yes, which categories (ies) of Stuff have you bought or prefer to buy online?
Books / E-books
Tickets (Air, Rail, Event, Movies, etc...)
Electronic Gadgets
Apparels & Accessories
Hotel Rooms/Car Rental
Food / Groceries
Other (Please Specify)

4. How often do you purchase online?

Once a month
2-5 times in a month
Once in 2-3 months
I dont buy online
5. Overall, were you satisfied with your experience of online shopping?
Highly Satisfied
Satisfied
Neither Satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied

6. From which place you often sit and shop online?

Home
Office
Cyber cafes
Other (please specify)

7. What
(1-5)

is your main motivation for buying for buying through Internet? Rank it
Convenience (ease of purchase, home delivery ability to shop 24/7)
Price
Superior selection/ Availability
Product comparison
Saves time

8. What, according to you, is the most important barrier to purchase online?

I am worried about giving out my credit/ debit card number
I dont like providing personal information
I dont want to purchase from someone with whom I am not familiar
I like to see/touch the product in person, before I buy it
I am worried about the cost/hassle of returning the product Both A
and B
I dont find any barriers

9. Few details, I am sure you wont mind.

Name of the Respondent
Email Id of the Respondent
Data Collection methods/Sources Primary Data
My research is based on original primary data, for certain purpose of research
project. For this research project, I have to use some common research instrument
or toolQuestionnaireQuestionnaire is the most common and critical way of primary data collection
method. For this I will prepare a questionnaire in such a way that it will be able to
collect all relevant information regarding the research project. The questionnaire
was designed using various scaling techniques. The questionnaire was used mainly
to test the model proposed for How Online Selling Had Changed Marketing
Perspective Including Consumer Perception. The data collection was done over a
period of 1 week. This was done through an online survey portal and 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, newspapers and articles etc.

Sampling plan
Sample Unit
The samples on this research project were collected online and covered Mumbai
area.
Sample Media
The respondents in the samples are reached through social media such as
Facebook, Twitter, LinkedIn, and Google plus and through mails.

Sample size
The sample size was 45 respondents

Research place- Mumbai Region

Sample Design
I have prepared this research project as descriptive type, as the objective of the
study.

Chapter 5 Data analysis and interpretations

The research was carried though online survey and responses were collected on
surveymonkey.com.
Analysis of consumers perception

Data Analysis of Question 1 of the Questionnaire

(Table 1) (Bhansali, n.d.)

From the above table 1, we can analyses that more than 95% of the people living in
Mumbai use internet. Only 4.5 percent people are not regular internet users.

Data Analysis of Question 2 of the Questionnaire

(Table 2) (Bhansali, n.d.)

From the above table 2, Out of 45 people who answered this question, 36 people
says that they shop online (80%), 7 people says that they do not shop online and
only 2 people said that they are thinking to start and shop online now.

Data Analysis of Question 3 of the Questionnaire

(Table 3) (Bhansali, n.d.)

From the above table number 4, we can analyze that more than 30 percent of
people in
Mumbai who shops online, buys tickets online more. More than 25 percent but less
than 30 percent people purchase electronic gadgets online. Apparels and
accessories goes to around 22% and 10 percent people buy books online.

Data Analysis of Question 3 of the Questionnaire

(Table 4) (Bhansali, n.d.)

Table 4 shows the exact percentage of the categories of the staff people buy online.

Data Analysis of Question 4 of the Questionnaire

(Table 5) (Bhansali, n.d.)

This question was very important for the better research. Its mandatory to know that
how often people go and shop online.
From the table 5, we can interpret that 40 percent of the people buys stuff once in 23 months. Around 28- 29 percent of people buys once in a month.
Almost 12- 13 percent of the mumbaikers buys 2-5 times in a month and that a good
sign for the ecommerce industry.
The bad thing is that almost 17- 18 percent of the people do not buy stuff online.

Data Analysis of Question 4 of the Questionnaire

(Table 6) (Bhansali, n.d.)

The above table number 6 will give you an exact summary and analyses of the data
in terms of percentage of the buying habit of the people on Mumbai in terms of
frequency.

Data Analysis of Question 5 of the Questionnaire

(Table 7) (Bhansali, n.d.)

Are you satisfied or not with the online shopping experience is the most common
and important question to be asked when somebody make an online purchase.
I added this question because I myself believe it is an important question to be
asked.
From the above table 7, we can interpret that almost 50 percent of online shoppers
are satisfied with their shopping experience. Out of other 50 percent, 22-23 percent
of people are highly satisfied with their online shopping experience. Again 22-23
percent people are neither satisfied nor dissatisfied and around 3- 4 percent of the
people living in Mumbai are highly dissatisfied with the online shopping experience
and are looking to go offline for shopping.

Data Analysis of Question 6 of the Questionnaire

(Table 8) (Bhansali, n.d.)

From the above question no. 6 and table 8, we can analyze that almost 71 percent
of the people who are regular online shoppers shop from their home and at their
leisure. Around 22 percent of the people find time in the office for online shopping.
Almost 2 percent people buys stuff online neither from home nor from office but from
cyber cafes. 5 percent of the people said they like to shop from anyplace including
cafes, trains, gardens, when on vacations, etc.

Data Analysis of Question 6 of the Questionnaire

(Table 9) (Bhansali, n.d.)

Data Analysis of Question 7 of the Questionnaire

(Table 10) (Bhansali,
n.d.) Why you go online and buy stuff rather than going to the retail store/outlet?

If I ask you a question that what factor motivates you to buy online? What will be
your answer?
I asked this increasing question to the respondents and total them to rank the 5
most important factors that motivate the individual to go and shop online.

For better understanding of the ranking that people gave, lets see one more table.

Data Analysis of Question 7 of the Questionnaire

(Table 11) (Bhansali, n.d.)

From the above table 11, we can analyze that people prefer to go online to shop for
the first reason is Convenience (ease of purchase, home delivery ability to shop
24/7)
Price is the second most motivational factor to purchase online.
Availability and selection is on third position.
Comparison of the products is also a motivational factor for the people to purchase
online and is on fourth position.
Saving time, according to me, should be in 2-3 position, but after the analyses, we
came to know that it is on fifth position according to the respondents.

Data Analysis of Question 8 of the Questionnaire

(Table 12) (Bhansali,

n.d.)

Data Analysis of Question 8 of the Questionnaire

(Table 13) (Bhansali,

n.d.)

In question 8, we asked the respondents about the barriers which stop them to go
and purchase stuff online.
According to me and for the betterment of the research project, this question is the
one of the most important question which has to be asked and analyze the reviews.
From the above table 12 and 13,
We found that, almost 24-25 percent people said that they dont purchase stuff
online because they are worried about giving their credit/debit card number.
Another 24-25 percent people said that they dont buy stuff online because they like
to see and touch the products before buying. So they prefer to go at retail stores.
Around 15 -16 percent of the people says that they dont find any barriers while
buying online and they dont find any reasons to not to buy online.
Around 13-14 percent of the people says that they have a bad experience and says
that they are worried about the cost/hassle of returning the product.
11 percent of the people say that they dont buy stuff online because they are
worried abound giving their credit/debit card number as well as they like to touch
and see the product before buying.
6- 7 percent of the people say that they dont like to buy stuff from somewhere or
someone they are not familiar with.
4-5 percent of the people say that they dont want to give their individual specific
information collection such as address, mobile number, demographic characteristic,
lifestyle and spending patterns are also of concern when online.

AnalysisIt is true that rapid increase in internet usage has led to an increase in the online
shopping as 80 percent of the online shopping has been done by the regular online
shopper who have been using internet for more than five years and 36% of the
online shopping have been done among the regular shopper who uses the Internet
for more than 20 hours a week. Thus increase in usage of Internet has led to an
increase in online shopping. But shopping still constitute a small amount of the
major activity on the internet as 32% of the regular online shoppers uses Internet for
communication while only 10% uses it for shopping. Communication still constitutes
the major activity on the Internet.
Demographic Factors
Online behavior is affected by demographics i.e. by gender, education and income.
Hypothesis
4. More male Internet users are frequent online buyers than female Internet
users.
5. Regular online buyers are better educated than occasional online buyers.
6. Income is higher in case of a regular online shopper than occasional online
buyer.

Figure 1

28%
Female

Among the 65% of

the
online
shopping,
males
(72%)
had
72%
Male
purchased more as
compared
to
women (28%). This
shows that it is true
that more males are
shopping online as
compared to women.
This
is
mainly
because women still like to feel, see and touch the product before buying. It was
noticed that some of them felt shopping as a reason to go out with the family and
spend time together, which was not possible in case of online shopping. As more
and more Indian women are flocking to Internet there is a possibility that they might
end up in a purchase. Also an increase in the spending power in the hands of the
women might lead to an increase in the online shopping. The research showed that
28% of the women who shopped online fall mostly in the service and executive class
with an income above Rs10, 000. The marketers should make sure that they

produce the item keeping in mind the needs of the women population as they still
continue to be an important decision maker when shopping for the family.

3%
Non

8%
Matriculate

Matriculate

54%

Figure 2

Postgraduate

35%
Graduate

Educational difference is a significant demographic variable, which shows that

regular shoppers who were better educated made more purchases online. 89% of
the shopping has been done by the regular shopper whose is educated with a
graduate or postgraduate degree. This shows that frequency of purchase is more in
case of a higher educated regular shopper as compared to an online shopping done
by a regular online shopper with matriculate (8%) and Non-matriculate (3%).
(Anon., n.d.)

Chapter 6
Findings
The findings show that Internet usage has increased over the years and it is leading
to an increase in online shopping and also shows the consumers attitude and
perception towards online shopping. Communication still forms the major activity
among the large number of online shoppers as 32% of regular online shopper use
Internet for communication as compared to shopping (10%).
Online shopping is affected by demographics as it has been seen that more males
are shopping online as compared women online shoppers and there is a positive
relation between education and income levels with respect to the increased online
shopping behavior.
The most important motivating factor, which influenced the online shopping, was
convenience followed by price and availability. Regular online shoppers considered
convenience as the main motivating factor while buying and were less price
sensitive. But the online marketers should attempt to differentiate their products or
services making the comparison easier. The marketers should bring out innovative
ways so that the consumers can do more online shopping while taking the full
advantage of rich information, easy access and convenience of the Internet.
One of the main concerns among the online shoppers was privacy and security.
Another reason that hindered online shopping was the touch factor. Consumers still
preferred the experience they get from traditional stores like feeling the stores
atmosphere, interacting with a salesperson, and seeking sensory stimulation. This
might hinder the use of certain goods like grocery and apparel, as the touch factor is
the main factor, which drives the shopping for these goods. The future of online
shopping is bright especially in the categories of travel, books, electronic gadgets
and gifts.
General Discussion
A Survey by Indian research organization Juxtconsult found that more and more
Indian Internet users are opening their wallets online. While such hurdles as limited
broadband access and security concerns remain, the report finds there are currently
more than 10 million shoppers online in India. While current trends point to
increased e-commerce growth in India, the online marketplace in the country of
more than 1 billion people is still relatively small.

Juxtconsult's survey found that 40 percent of all urban Internet users buy online,
while 42 percent of the sales originate through just five percent of consumers. The
survey was conducted in April 2008and sampled more than 30,000 users.
"This section of buyers spends 5,000 rupees or more per month on the net," states
the report. "It is interesting to note that two out of every three heavy spenders are
also 'netholics,' those who are on the net for more than three hours per day...Of all
those who buy online, only 25 percent are spending more than 1,000 rupees per
month while the (remaining) 75 percent bill less than 1,000 rupees per month."
(1,000 Indian rupees is currently equal to approximately $23 US.)
The report also found that buying and search patterns among Indians differ between
genders.
"While 43 percent of male users buy online, only 31 percent of urban female users
are consumers as well. Women tend to search more. Defying their more common
attitude towards shopping, women are more guarded when it comes to the online
market," says Juxtconsult.
"Depending on the product type, nine percent to 25 percent are buying online,
whereas 33 to 47 percent are searching the net for product information," it says.
Security Fears Persist
Juxtconsult says the motivation for Indian users to make purchases online varies,
but users fear compromised personal information is still a great risk when it comes
to ecommerce.
"The single biggest motivation for buying online for net users is saving time. Thirtytwo percent of them look to shop online with this purpose. Convenience of shopping
'24x7' and home delivery are other major incentives," says the report. "However, the
concern of possible misuse of credit card or personal information is extremely
significant among online buyers, with almost 55 percent of them voicing their
concern. Clearly, tackling and countering the issue of online safety figures as an
imminent challenge for net marketers."

Books, CDs Top the List

The products that are purchased most online in India, according to Juxtconsult, are
books and CDs - making up 25 percent of all online purchases.
"Ironically, computer hardware and software, despite having the home advantage
are among one of the least bought products online, with only 13 percent buying
them," says the report.
"In sum, the online market in India is blossoming but is yet to take off in a
considerable way. The Internet is still being used more for searching than buying
products and services. Though a noticeable proportion of net users are also net
consumers, essentially, at present only a small tribe among them is driving online
shopping momentum," says Juxtconsult.
(Comiskey, 2005) People shop online for convenience, not for price
Whos shopping online these days?
Everybody.The internet has now become the mall of America, where people shop for
everything from cameras to caviar to clothes to computers. An overwhelming 76
percent of online users have purchased at least one product or service. Online
shoppers are like a snapshot of a crowded suburban mall on a Saturday afternoon.
They are your husband, your wife, your girlfriend, your brother, your children, even
your grandparents. They are more or less half men, half women51 percent to 49
percent. Sixty-seven percent are married and 43 percent have kids. Their median
household income has declined sharply. It is now $59,100, compared to what we
had four years when it was $66,000. Forty-three percent of people who shop online
have online access at work. Seventy-two percent have at least one wireless device,
and 40 percent have already paid or are willing to pay $39.95 a month for
broadband. These are the prime prospects the advertisers spend a fortune to reach.
It looks like were getting over our worries about using credit cards online,
huh?
Oh yes. The number of online shoppers who pay for their purchases with credit
cards has almost tripled since 1997. Its up to 70 percent now, compared to 59
percent in 1999 and 34 percent back in 1997. Looking to the future, while 49 percent
of the newbies paid with a credit card, 66 percent of the integrators did so, and 79
percent of the trendsetters. Remember that newbies have been online for less than
a year, integrators from one to two years, an trendsetters three or more years. This
tells me clearly that online shopping is becoming a way of life.

Looking beyond strict numbers, whats the motivation at work here? Whats
driving people to buy things online?
First of all its important to note that convenience is the primary motivation for online
shoppers. Price is secondary. Fully 97 percent of online shoppers are motivated
primarily by saving time and simplifying their lives. And of this 97 percent, only 36
percent are additionally motivated by saving money. Money is not an issue for the
rest of them. Even among the more price-conscious shoppers its worth reiterating
that price is not their primary motivation. They tend to shop for prices only after they
have decided on a particular product or service. Online shoppers place a much
higher value on time than money. This is great news for e-trailers because the online
users are still the early adopters and opinion leaders that they spend a fortune to
reach. So its a golden opportunity for new product introductions.
Okay, so people are looking for convenience when they shop online. Does anything
further distinguish online shoppers from one another?

Weve found that there are five core mindsets or need-states of online shoppers.
These can be seen as differentiating motivations driving people to shop online and
sending them to particular types of places. The first mindset is something I call
"Need Ideas." In this state, the shopper is typically looking at gifts and toys. Second
is "Need Simplified Information"; this is the state in which people tend to go online to
shop for electronics, computers, software, small appliances. Shoppers who "Need
Personalized Recommendations" are those who are looking for books, CDs, games,
software. And then theres the state I call "Need Newest Products." This is the state
of mind that characterizes people online shopping for cosmetics, clothes, cars and
computers.
(Schlosberg, n.d.)

Chapter 7 Limitations of the Study

Every study will have its problems and limitations at some point during the project.
This study is no different. The use of a non-probalistic sample in the research was a
major limitation because there was no way to make sure that the sample taken
represented the total population of the Internet users. A non-probability sample lacks
the accuracy and precision that a probability sample might offer. Though this
samples provided a better insight about the online shoppers but there could be a
possibility that a respondent may have done online shopping but is not a regular
Internet user. It was seen that some respondents were biased towards some
questions. Another major limitation encountered doing the research assignment was
the issue regarding the time.
Limitation of the study is the selection of the existing studies. Owing to time
limitation, only a few number of journals were searched. This may leave some other
prominent empirical studies out. In addition, owing to the multidisciplinary nature of
online shopping, it would be very interesting to compare IS literature to other
disciplines that study online shopping attitudes and behavior.

Limitations, Perils and Dangers of Online Shopping

Scams and internet fraud is no more news in the internet world. Scammers have
gone deep online. Millions of dollars are reported every day of the year to be lost by
innocent souls. Men and women are duped online every day without any form of
comfort in their lives. Since the internet is for all and sundry, excessive exposure to it
could be dangerous and risky. The problem with online shopping ranges from A to Z.
They are avoidable if they are known. It should be clear that not everybody online is
there to buy or sell real products. Some are there for fraud and online scams. I am a
victim of such disaster before I learnt my lesson in the hard way. Internet fraud is all
over my dear reader.
As earlier quipped, internet fraud is very common on the internet market.
Online shopping is characterized with internet catastrophes. Since online shopping
in the most popular means of shopping, it is important to note that everybody is now
online. Exposure of the internet is now the avenue for some weaklings and indolent
people to fraud innocent shopping seekers. One need to be on the watch out
against internet fraud when one is sincerely going for online shopping.

Poor network server.

Sometimes in developing countries of the world has poor network provider. It could
in such a way limit ones online shopping in any form. News has made it clear that
internet connections are faster than each other; some are very slow while some are
time wasters to say.
Goods in transit
Goods might be declared in transit when been tracked on the internet. This is a
great limitation. This hinders the buyer to receive the good at the stipulated time. He
receives such goods very late at the eleventh hour. It is very common to almost all
shops. Steps are on to set everything in the right order.
Currency barrier
Not every country in the world has the same currency. Dollars are popularly used but
some countries have no access to dollars. This has limited online shopping in the
recent years.
There are limitations. There are dangerous strives. There are perils. Language could
also limit online shopping. Before you pay for anything online.
(Anon., n.d.)

Chapter 8 Recommendations and Suggestions

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

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

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

In India the total ownership of credit cards is small as compared to its

population and there are also hesitant in using it as a mode of online
payment therefore alternative methods of payment like cash on delivery
(COD) where the end user pays cash after the product is delivered and debit
cards where the bank accounts are directly debited should be used. Other
technologies like encryption technologies trusted third-party certifications;
digital ID systems and prepaid cards should be used.

The consumers should be made aware that one of the safety aspect of using
credit cards online is that in case of disputed credit card payments for online
transactions the onus is on the merchants to prove that the transaction
actually took place, as online users don't physically sign a credit slip. As a
result online users are protected from fraudulent use of credit cards.

There is a growth in the cellular phone market in India, more merchants

should make use of this device allowing the customers to access the Internet
and use it as mode of payment thereby obviating the need for PCs and credit
cards.

It is not only important to pay strong attention to the security issue and create
new, innovative safeguards that protect consumers but the merchants should
promote these safeguards to the marketplace and make the prospective
consumers aware that the communications, personal data, credit card
accounts, and transaction information can be protected.

One of the factors that hinder Internet penetration in India is access. More
companies should adopt click and mortar model with the real world
operations to complement its online presence for e.g. customers can walk to
the office to access its services.

Merchants should provide goods and services that offer the right value for
money. There should be transparency in policies (returns, privacy, shipping,
etc), insurance against fraud and a good after sales services should be
provided to consumers making it an enjoyable experience.

Consumers today demand a better, more efficient and less cumbersome way
to compare and buy products online. Innovative service should be provided to
consumers so that they can compare products, which are available online
using their mobile phones.

Online shopping today is an incomplete, fragmented, and sometimes

frustrating process. Therefore merchants should set themselves apart from
their competitors by factors other than price, constantly innovate and move
towards creating customer confidence to trade online. They should provide
massive selection at lower prices, offer a personalized customer experience
and their web sites should deliver a shopping experience that addresses all
of the consumer needs like recommendation about the products, feedback
from other customers, etc.

Vendors should educate the customers about e-commerce like educating

them on safety tips like reading the item description, looking for a sellers
feedback score and asking questions, detecting spoof mails and informing
them about the new online crimes which happen regularly.

In India still the penetration of Internet has not happened the way it should
have been which hampers online shopping. Ecommerce revolution can be
brought about by providing more broadband connections at affordable prices.

There is a huge market for business in the rural India therefore efforts should
be such that to bring these people also into experiencing online shopping.
Companies should create more Indian language software or content as
Internet still is a primarily English language world and language could be a
barrier in rural India. Only few language portals like webduniya.com exist
today.

Most of the Indians still like to see the product before buying; efforts should
be made to change this mindset of the people by making them aware of the
benefits of online shopping.
To make online shopping big the shopping web sites should give the
customers the convenience to shop anything on a single site like ordering
pizzas, movie tickets, groceries, etc rather than in scattered places. The site
should not only provide information content but also tools to navigate and

evaluate this information. The information on the site should be just sufficient
for the consumers to make a decision and not to overload them with
information, which results in confusion.

Convenience and time saving are the main reason to shop online. Therefore
Business to Consumers (B2C) sites should be designed in such a way that
consumers spend less time in finding information they are looking for as
delays in searching or loading a web page might turn the consumers to other
sites which have faster download and display times.

Since consumers control the experience they receive from shopping over the
Internet, there is a need to find ways of managing the amount of information
available over the Internet. Sites that are able to offer this information and
present it in a simple way to understand will become the preferred destination
for online shopping.

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

Active participation from consumer marketing companies to manufacturing

industries is required to make online shopping a booming sector.

Some of the things, which the consumers should take into considerations
while online shopping, are:

Use a secure browser. The browser should comply with industry security
standards, such as Secure Sockets Layer (SSL).

Consumers should shop with the known companies, as it is easy to set up a

shop online under any name. If they are not familiar with a merchant they
should ask for paper catalogue or brochure to get a better idea about the
merchandise and services and should find about the companys refund and
return policies. Consumers should also search for the reviews of the
company.

Read the privacy policy on the site of the companies before shopping as this
helps to know what information is being collected and how it would be used.

Keep a print record of the transactions this would come handy in case of any
fraud.
One should find out how the company secures the financial and personal
information before paying the bills.

The personal information should be kept private like address, telephone

numbers, email, etc. One should avoid using telephone numbers or date of
birth for establishing a password instead should use a combination of
numbers, letters and symbols.

Proper research should be done about countries shopping laws and

merchant when shopping from other countries.
(Anon., n.d.)

Sample Questionnaire
1. Are you an internet user?
Yes
No

2. Are you an online shopper?

Yes
No
Will start now

3. If yes, which categories (ies) of Stuff have you bought or prefer to buy online?
Books / E-books
Tickets (Air, Rail, Event, Movies, etc...)
Electronic Gadgets
Apparels & Accessories
Hotel Rooms/Car Rental
Food / Groceries
Other (Please Specify)

4. How often do you purchase online?

Once a month
2-5 times in a month Once in 2-3 months
I dont buy online

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

Highly Satisfied
Satisfied
Neither Satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied

1. From which place you often sit and shop online?

Home
Office
Cyber cafes
Other (please specify)

2. What
(1-5)

is your main motivation for buying for buying through Internet? Rank it
Convenience (ease of purchase, home delivery ability to shop 24/7)
Price
Superior selection/ Availability
Product comparison
Saves time

3. What, according to you, is the most important barrier to purchase online?

I am worried about giving out my credit/ debit card number
I dont like providing personal information
I dont want to purchase from someone with whom I am not familiar
I like to see/touch the product in person, before I buy it
I am worried about the cost/hassle of returning the product Both A
and B
I dont find any barriers

4. Few details, I am sure you wont mind.

Name of the Respondent
Email Id of the Respondent