To be added:

a. Objectives, Hypothesis, Research

Methodology
b. Data Collection, Analysis and
Interpretation
c. Findings, Conclusions, Suggestions
and Recommendations
d. Bibliography and Appendices

How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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 e-commerce 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.)
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)

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

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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 e-commerce 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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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 8-10%
of the total retail sector in India. This growth is bound to continue if e-commerce
companies focus on innovation, building strong technology infrastructure and delivering
the best customer service.
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(Bansal, 2012)

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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:

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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
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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

(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.)

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

Chapter 4
Research Methodology

( Anon., n.d.
)

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 behavior 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:

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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 is your main motivation for buying for buying through Internet? Rank it (1-5)
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

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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 2-3
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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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?

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.)

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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.

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How Online Selling Has Changed Marketing Perspective Including Consumer Perception

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
purchased more as
72%
Male
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
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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.)

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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.

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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. Thirty-two
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."

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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

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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.)

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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.

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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.)

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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.

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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.

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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.

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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.)

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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
6. From which place you often sit and shop online?
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7. What
(1-5)

Home
Office
Cyber cafes
Other (please specify)

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

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