EXECUTIVE SUMMARY

Consumer behavior is said to be an applied discipline as some decisions are significantly

affected by their behavior or expected actions. The two perspectives that seek application of
its knowledge are micro and societal perspectives.The online purchasing behavior of online
shoppers and factor influencing online shopping behavior and its future perspective. Internet
is changing the way consumers shop and buy goods and services, and has rapidly evolved into
a global phenomenon. Many companies have started using the Internet with the aim of
cutting marketing costs, thereby reducing the price of their product and service in order to
stay ahead in highly competitive markets.Companies also use the Internet to convey,
communicate and disseminate information to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not only to buy the
product online, but also to compare prices, product features and after sale service facilities
they will receive if the purchase the product
from a particular store. Many experts are optimistic about theprospect of online business.
 TABLE OF CONTENTS

 EXECUTIVE SUMMARY

 INTRODUCTION

 REVIEW OF LITERATURE

 DATA ANALYSIS & INTERPRETATION

 FINDINGS

 SUGGESTIONS

 CONCLUSION

 REFERENCES

 QUESTIONNAIRE
 INTRODUCTION

Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the
aim of cutting marketing costs, thereby reducing the price of their products and services in
order to stay ahead in highly competitive markets. Companies also use the Internet to convey
communicates and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not only to buy the
product online, but also to compare prices, product features and after sale service facilities the
will receive if they purchase the product from a particular store. Many experts are optimistic
about the prospect of online business.In addition to the tremendous potential of the E-
commerce market, the Internet provides a unique opportunity for companies to more
efficiently reach existing and potential customers. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of business-to-
consumer commerce should not lose confidence .It has been more than a decade since
business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic
commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to explain E-
consumers behavior from different perspectives. Many of their studies have posited new
emergent factors or assumptions which are based on the traditional models of consumer
behavior, and then examine their validity in the Internet context.

Theoretical Foundation

The Internet has developed an into a new distribution channel and online transaction are
rapidly increasing. This has created a need to under how the consumers perceive online
purchasing.Price, Trust and Convenience were identified as important factors. Price was
considered as to be a most important factor for a majority of the students. The internet has
created a paradigm shift of the traditional way people shop. A consumer is no longer bound to
opening a times or specific location. So he can become active at virtually any time anyplace
and purchase the products or services. Internet is relatively a new medium for communication
and the information exchange that has present in everyday life. The number of internet user is
constantly increasing which is also signifies that online purchasing is increasing. The
rapid increasing is explained by the consumer behavior. The internet
is considered a mass medium that provides the consumers with purchase characteristics as no
other medium. Certain characteristics are making it more convenient for the consumer
compared to the traditional way of shopping such as the ability to any time view and purchase
products visualize the needs with products and discuss products with other consumers. Online
shopping is the process of consumer go through the when they decide the shop on the internet.
Internet has developed into a new distribution channel and the evaluation of this channel. E-
commerce has now identified. Using the internet to shop online has
become one of the primary reasons to use the internet combined with searching for products
and finding the information about them. Therefore internet develop the companies so use the
internet to convey, communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers. Customers use the Internet
not only to buy the product online, but also to compare prices product features and after sale
service facilities they will receive if they purchase the product from a particular store.

Many experts are optimistic about the prospect of online business. Due to the rapid
development of the technologies surrounding the Internet, a company that is interested in
selling products from its web site will constantly has to search for an edge in the fierce
competition. Since there are so many potential consumers, it is of the out most importance to
be able to understand what the consumer wants and needs.

Rising Connectivity

If we observe the growth of Internet Subscribers from the above graph, it is getting doubled
year by year. The usage of internet in India is only 4% of the total population. This is also
getting increased day by day as the costs of computers are decreasing and net penetration is
increasing. The cost of internet usage is also getting lower, with good competition among the
providers. Wi-Fi & Wi max system has also started in India. This will increase the usage as it
goes more on wireless internet. Indians are proving every time that they can beat the world
when it comes to figures of onlines hopping. More and more Indians are going to online
shopping and the frequency of India online buying is crossing the overall global averages.

Middle-class population with spending power is growing. There are about 200 million of
middle-class population good spending powers. These people have very little time to spend
for shopping. Many of them have started to depend on internet to satisfy their
shopping desires.
Evolution of Commerce

Commerce has evolved over the centuries. Prior to the evolution of money it was the simple
“barter process” where things could be exchanged, say milk for grains. The evolution of
money brought with it, the concept of a “marketplace”. In a marketplace, Commerce is
function of 4 P’s – Product, Price, Place and Promotions. All these four components play a
vital role in a transaction to take place. Different combinations of 4Ps determine different t
forms of Commerce. Once the marketplace came into existence, a few pioneers realized that
people would be ready to pay extra if they could deliver products at the customer’s doorstep.
A slight modification on Price and Place led to the convenience of getting products at their
homes. This concept delighted the customers and thus, the concept of “Street Vendors” was
born.

When the Postal System came into being the sellers decided to cash in on the new
opportunity and started using mailers giving description of their products. It led to the concept
of “Mail Order Cataloguing”. From here, the evolution of the “Tele shopping” networks
was thus inevitable with the development of media vehicles.

The latest generation of commerce is one that can be done over the internet. Internet provides
a virtual platform where sellers and buyers can come in contact for sale and purchase of goods
and services. They can be thousands of miles apart, may belong to different parts of the
world, might speak different languages, “E-Commerce” emerged as the boundary-less trade
medium in the era of globalization.
Evolution of Commerce
Since, Internet has the ability to reach the customer’s home; the Distribution Channel has
started to assume new meaning to the B2C and C2C e-Marketer. The Physical delivery got
converted to electronic delivery; physical products were now electronic products, displayed
on a website. With options of paying online through debit and credit cards, even the
Transaction was purely electronic.

Fig 1.2: The Dimensions of E-Commerce

Another important P for the e marketer, Promotion, assumed importance, especially because
there is no face to face interaction between the buyer and seller. The focus of online
promotions is the ‘great deals’, ‘discounts’, ‘convenience’ offered by the Marketers

The Status of E-Commerce in India and its Potential

Ecommerce stands for electronic commerce and pertains to trading in goods and services
through the electronic medium, i.e. the Internet or phone. On the Internet, it pertains to a web
site, which sells products or services directly from the site using a shopping cart or shopping
basket system and allows credit card payments. Back in 2005, the 100 million mark would
have seemed impossible. With a small number of 25 million internet users in India (2.5%
penetration) in 2005, we have seen a surge in the following years as the number jumped to 46
million in 2007 and 100 million in 2010 which is more than a 100% growth.
E-Commerce in India today

Today E-commerce is a byword in Indian society and it has become an integral part of our
daily life. There are websites providing any number of goods and services. Then there are
those, which provide a specific product along with its allied services.

Multi-Product E-Commerce

Some Internet portals provide almost all categories of goods and services in a single site
hence; they are targeting buyers of every possible product and service. The most popular
examples are www.indiaplaza.com, www.india.com, www.khoj.com, www.sify.com,
www.rediff.com, www.indiatimes.com and so on.

These Indian E-commerce portals provide goods and services in a variety of categories.

To name a few:

• Apparel and Accessories for men and women

• Health and beauty products

• Books and magazines

• Computers and peripherals

• Vehicles

• Collectibles

• Software

• Consumer electronics

• Household appliances

• Jewelry

• Audio/Video entertainment goods

• Gift articles

• Real estate and services

• Business opportunities

• Employment

• Travel tickets

• Matrimony

• Pets and more

Single-Product E-Commerce

Some Indian portals/websites deal in a specialized field, for example:

Automobiles:

Examples are: http://www.indiacar.com/ and http://www.automartindia.com/.

On these sites we can buy and sell four-wheelers and two-wheelers, new as well as used
vehicles, online. Some of the services they provide are:

• Car research and reviews

• Online evaluation

• Technical specifications

• Vehicle Insurance

• Vehicle Finance

• Dealer Locator

• Regional Transport Office regulations

• Expert speak

• Message board…and more.

Stocks and shares and e-commerce

In India today, we can even deal in stocks and shares through e-commerce. Some of the sites
are: http://www.equitymaster.com; http://www.5paisa.com.Some of the services offered to
registered members are:

• Online buying/dealing of stocks and shares;

• Market analysis and research

• Company information

• Comparison of companies

• Research on Equity and Mutual Funds

• Tracking Market Trends

• Hotline for advice on Risk Management

• 24-Hour helpdesk….and more.

Real estate and E-commerce:

Portals like http://www.indiaproperties.com/ facilitate online dealing in real estate. They offer
either outright purchase or lease of a property through their portal. They provide information
on new properties as well as properties for resale .One can deal directly with developers or
builders or through consultants and brokers .Allied services:

• Housing Finance

• Insurance companies

• Architects & Interior Designers

• NRI services

• Property Management Consultants

• Packers & Movers

• Security & Maintenance Services

• Vaastu or Feng Shui Consultants…and more.

Travel & Tourism and E-commerce:

India has a rich history with cultural heritage and e-commerce is instrumental, to a large

Extent, in selling India as a product, encouraging Indians as well as foreigners to see its

Multi faced culture and beauty. A major Government of India portal,

http://www.tourisminindia.com/ has a vast variety of information for a potential tourist.

The tourist destination sites are categorized according to themes like:

• Adventure - trekking, mountain climbing etc

• Eco-Themes pertains to jungles, flora and fauna

• Beaches of India

• Architectural attractions

• Forts and Palaces

• Buddhist attractions

• Hill resorts

• Desert treks

• Pilgrimage sites

Allied services offered are:

1. Passport & visa

2. Travel & accommodation information

3. Weather information

4. Festival & fair dates

5. Shopping

6. Tour Operators

7. Information on Cuisine & Restaurants

8. Car rental services…and more.

There are also sites that highlight the tourist destinations of a specific region in India, like

http:// www.incredibleindia.org which covers North East India.

Gifts and E-commerce:

In the bygone days, one had to plan what to gift a loved one, trudge across to your favorite
Shop, and browse for hours before purchasing a gift. Today there are specific Indian websites
making the act of gifting quick and easy to suit ones lifestyle. One such site is

http://www.indiangiftsportal.com/.

The gifts are categorized as:

1. Collectibles like paintings and sculptures

2. Luxury items like leather goods, perfumes, jewelry boxes, etc

3. Household curios and carpets, etc

4. Toys & games

5. Chocolates

6. Flowers

7. Wood-craft & metal-craft

8. Idols for worship…and more.

Also the items can be searched by different regions of India, as every region has a special
style in making handicrafts.
Hobbies and E-Commerce:

The most popular hobbies from time immemorial are reading, music and films. On the Indian
website http://www.firstandsecond.com/ one can buy more than 300,000 titles of books,
cassettes, VCDs and DVDs.

The books cover a wide range of topics like Business, Art, Cookery, Engineering, Children’s
Stories, Health, Medicine, Biographies, Horror, Home & Garden, etc. As for music and
videos, they are available in English as well as in Indian languages to cater to the varied
tastes and the topics range from devotional songs, old-time favorites and retro and jazz to the
latest pop, rap, etc.

Matrimony and E-commerce:

It is said that marriages are made in heaven, but in the world of E- commerce they are made
on marriage portals like http://www.jeevansathi.com/ (meaning life-partner.com in Hindi)and
http://www.shaadi.com/ (meaning marriage.com in Hindi).One can search for a suitable
match on their websites by region of residence (India or abroad), religion or caste. Once
registered with them, they have email facility and chat rooms too, so that the couple gets to
know more about each other before making the biggest decision of their lives.

Allied services for registered members:

1. Astrological services

2. Information on Customs and Rituals

3. Legal issues

4. Health & Beauty

5. Fashion & Style

6. Wedding Planners

7. Honeymoon Destinations…and more.

Employment and e-commerce:

Two major portals like www.monsterindia.com and www.naukri.com (meaning job.com in

Hindi) are instrumental in providing job seekers with suitable employment at the click of
ammo use. They have directories categorized under the headings Employers and Job Seekers.
The service for job seekers is free and for Employers they charge a nominal fee. Jobs are
available online in fields ranging from secretarial to software development, and from real
estate to education. The opportunities offered are unlimited.

1.4 Facilitators of E-Commerce in India

1.4.1 Information directories

Portals like http://www.trade-india.com/ and http://trade.indiamart.com/ maintain directories

giving trade details on almost any topic, whether it is from apparel to toys, from gems to
heavy machinery, or from food to employment. The products and services are listed with
appropriate sub-headings to make it easy for a serious information-seeker to find what he
wants. Some other similar sites are http://www.indiagrid.com/,http://indiainfo.com/,and
http://in.indiatimes.com/.

Allied services provided by them: Message boards, chat rooms, forums, etc.

1.4.2 Banks:

Net banking / phone banking:

This is an online banking facility available for savings account holders as well as current

Account holders. Some of the special Net banking services are:

• Demat accounts for sale/purchase of stocks and shares

• Foreign Exchange services

• Direct/Instant payment of bills on the account-holder’s behalf

• Financial Planning & advice

• Electronics Funds Transfer

• Loans to account-holders

• NRI services…and more.

Credit/Debit Cards:

Banks facilitate E-commerce by providing the most vital trade instrument, namely the
Creditor Debit Card, without which E-commerce would be impossible. Some of the major
Indian players in this field are:

http://www.hdfcbank.com/, http://www.icicibank.com/and http://www.statebankofindia.com/.

1.5 Potential of E-Commerce in India

Microsoft Research India was inaugurated in January 2005 in Bangalore, as the sixth MSR
laboratory in the world. The arrival of a giant like Microsoft itself speaks of India’s potentials
a world-player in the field of Information Technology and e-commerce; and others will soon
follow. Indian researchers and technicians can further the fast emerging world of E-
commerce in India and take it to greater heights.

What does the future hold for e-commerce? Many would say it is difficult to
predict. The forces that determine the web's winners and losers are just taking shape and
technological advances could add even more uncertainty. On the downside, some experts
predict that it will be increasingly difficult for smaller companies to establish their presence.
Public companies and traditional brand name retailers have deep pockets and a name
recognition that will make it difficult for smaller sites and mom-and-pop shops to attract
customers, thereby forcing them to compete with the big boys. On the Net, it's one big
neighborhood. On the upside, nearly all experts believe that overall e-commerce will increase
exponentially in coming years. Business to Business transactions will represent the largest
revenue. Online retailing will also enjoy a drastic growth. Areas expected to grow include
financial services, travel, entertainment and groceries. And for those considering opening a
virtual store front, forthcoming technology and standards agreements will make it easier to
create a site, to protect it against payment fraud, and to share information with suppliers and
business partners.

According to a Reuters, Google expects India’s Internet users to triple (a whopping 300
million) by 2014. Now, what is it that will propel this huge growth? Rajan Anandan, who
heads Google’s India operations shared with The WSJ that -”The next 200 million new users
will largely be mobile-first users and out of those, 100 million will be mobile-only users”.
This is mainly because telecom carriers have invested in high-speed wireless infrastructure
and smart phones will become cheaper. Let’s see how that goes.

So what does this user growth mean for E-commerce in India? Online travel and movie ticket
sales generate about $5 billion in revenue in India compared to a massive $80 billion in
neighboring China. It remains to be seen whether this growth in Internet penetration will
translate into more number of users who will indulge in online purchasing. Anandan had also
mentioned that, “Making money off that growing audience, though, is proving difficult thus
far for Google and other Internet companies,” Also, Indian online ad spending is only about
$200 million per year – a small fraction of the $80 billion global digital advertising industry

ONLINE SHOPPING IN INDIA

It is a fact that a great online shopping revolution is expected in India in the coming years.
There is a huge purchasing power of a youth population aged 18-40 in the urban area.

If we observe the growth of Indian online transactions from the above graph, it is getting
doubled year by year. The usage of internet in India is only 4% of the total population. This is
also getting increased day by day as the costs of computers are decreasing and net penetration
is increasing. The cost of internet usage is also getting lower, with good competition among
the providers. Wi-Fi &Wimax is also getting tested in Bangalore and other cities in India.
This will increase the usage as it goes more on wireless internet.Indians are proving every
time that they can beat the world when it comes to figures of online shopping. More and more
Indians are going to online shopping and the frequency of India’sonline buying is crossing
the overall global averages.

Factors That Boost Online Shopping in India

 Rapid growth of cybercafés across India

 Access to Information
 The increase in number of computer users
 Reach to net services through broadband
 Middle-class population with spending power is growing. There are about 200 million
of middle-class population good spending powers. These people have very little time
 to spend for shopping. Many of them have started to depend on internet to satisfy
their shopping desires..

Few Facts About Online Shopping

 The figures from IAMAI show that the internet users in India will grow to 200 million
by 2010.Around 25% of regular shoppers in India are in the 18-25 age groups, and
46% are in the 26-35-year range.
 Indian online matrimonial sector is worth around $230 million
 Worldwide e-commerce is only growing at the rate of 28%, since India being a
younger market, the growth of e-commerce is expected at 51% in the coming years.
 Inline with global trends finally India has also started shopping online these days. As
per the study by IAMAI online shopping in India has rose from $11million in 1999-
2000 to$522 million in 2007 and it is expected to rise above $700 million by end
March 2010.
 Indians are also Shopaholics like other Asians. There is a strong booming young
adult population in India with good levels of disposable income.

Over $50 Billion and growing rapidly - Most popular online shopping products
include: books (45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (3
5%),apparel (35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music
downloads (21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools
(16%),home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), beauty
products (12%),health and fitness products (12%), apparel gift certificates( 11%) and sporting
goods (7%).

Changing attitude towards online shopping

It was never thought that Indians would go in for e-shopping in such a big way.Ticketing,
travel bookings and even books and movies seem fine to buy online. Knowing that in India
sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how
is it that there are people buying these items online?Well, Assocham says that books are the
hottest selling item on the internet. In fact most products bought and sold off online are:
books, electronic gadgets and railway tickets. However, people are also buying clothes, gifts,
computer and peripherals, and a few are buying home tools and products, home appliances,
toys, jewelry, beauty products and health and fitness products.Traffic for e-commerce sites is
mostly coming from the two metros of delhi and Mumbai.

Here are few reasons for this :

1.Convenience –It is the major reason. Both the cities are spread out over a large area and the
best stores in both these cities are often concentrated in certain ‘posh’ areas. In Mumbai for
example there are certain items you get only in Crawford market which is at the other end of
townn South Mumbai. And demographics show that the population of Mumbai is nowconcen
trated in the suburbs. Of course, huge malls have come up in the suburbs as well,and India’s
biggest mall Nirmal Lifestyleis in far-flung Mulund but often you find a better choice of sizes
and styles choice in other malls, say Phoenix (central Mumbai). And though both Mumbai
and Delhi have transport system,few people like to travel for two hours just to get to a shop at
the other end of town. Clearly the transport systems leave much to be desired. In Delhi, safety
is also an issue for women traveling alone in the evenings.

2. Literacy Rate and the Cities’ Internet Savvy Population-

Most cities in India have a higher literacy rate as compared to the national average of
64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86 per
cent).Delhi too has a high literate population (81.2 per cent). Oddly, although Bangalore has a
higher literacy rate than Delhi, at 83 per cent, the city’s share of e-commerce is not very
high.Kolkatta too has a literacy rate (80.8 per cent) and so does Chennai (80.1 percent.) If one
compares these rates to literacy rates of cities like Patna(62.9 percent), Jaipur (67
percent),Indore(72 percent) or Warangal(73 percent) its clear why its the metros which
are going to continue to lead e-shopping.

3.Home delivery concept-

In any case, home delivery is a concept that Indians are familiar with and love. The mall
craze has started only now.Earlier it was a choice between sweating it out in small crowded
markets, or asking a friendly neighbourhood kirana (grocer) to deliver groceries home and
this system is still thriving.

4.Increase in the Internet users-

Increasing penetration of Internet connectivity and PCs has led to an increase in theInternet
users across India. The demographic segments that have witnessed maximumgrowth
comprise college going students and young persons. These segments are the users of
advanced applications and technologies online and are most likely to be heavy E-Commerce
users.

5.Increase in the number of buyers and sellers –

The success of a marketplace depends on the presence of a large number of buyers and alarge
number of sellers. In addition to online buyers, many offline stores have begun tosell their
products in the online marketplace. The greater the number of sellers and buyers,the faster the
market grows.

PRODUCT PREFERENCES CITY WISE

Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts

movies, bookings,actually just about everything Kolkatta prefers to buy music and movies
online Mumbai leads in all categories, except jewellery. Delhites seem to prefer buying
jewellery online as compared to any other city. .

Online shopping Perceived benefit

Perceived benefits are advantageous results derived from attributes. The benefits can be
physiological,psychological, sociological, or material in nature (Gutman, 1982). Within the
online shopping context, the consumers’ perceived benefits are the sum of online shopping
advantages or satisfactions that meet their needs or wants (Wu, 2003). There are many
differences between a physical store and its electronic counterpart (Lohse & Spiller, 1998;
Mohd Suki, 2006). Most of the previous online shopping research has focused on identifying
the attributes of online stores that promote success (Davis, 1989; Liu & Arnett, 2000;

Muylle et al., 2004; Shih, 2004). Previous studies of online shopping have established two
categories of benefits; intrinsic and extrinsic. Both are important in customers' selections to
patronize the online stores (Liu & Arnett, 2000; Muylle et al., 2004; Shih, 2004). Extrinsic
benefits include features such as wide selection of products, competitive pricing, easy access
to information and low search costs. Intrinsic benefits include features such as design and
color (Shang et al., 2005). As presented in Figure 1, consumers’ shop on the Internet because
they find benefits over the Internet. Therefore it is reasons why consumers shop online
(Delhagen, 1997 Cited by Khatibi et al, . Online shopping Perceived benefit Perceived
benefits are advantageous results derived from attributes. The benefits can be physiological,
psychological, sociological, or material in nature (Gutman, 1982). Within the online shopping
context, the consumers’ perceived benefits are the sum of online shopping advantages or
satisfactions that meet

their needs or wants (Wu, 2003). There are many differences between a physical store and its
electronic counterpart (Lohse & Spiller, 1998; Mohd Suki, 2006). Most of the previous online
shopping research has focused n identifying the attributes of online stores that promote
success (Davis, 1989; Liu & Arnett, 2000; Muylle et al., 2004; Shih, 2004). Previous studies
of online shopping have established two categories of benefits; intrinsic and extrinsic. Both
are important in customers' selections to patronize the online stores (Liu & Arnett, 2000;
Muylle et al., 2004; Shih, 2004). Extrinsic benefits include features such as wide selection of
products, competitive pricing, easy access to information and low search costs. Intrinsic
benefits include features such as design and color (Shang et al., 2005). As presented in Figure
1, consumers’ shop on the Internet because they find benefits over the Internet. Therefore it is
reasons why consumers shop online (Delhagen, 1997 Cited by Khatibi et al, . Online
shopping Perceived benefit Perceived benefits are advantageous results derived from
attributes. The benefits can be physiological, psychological, sociological, or material in
nature (Gutman, 1982). Within the online shopping context, the consumers’ perceived
benefits are the sum of online shopping advantages or satisfactions that meet their needs or
wants (Wu, 2003).

There are many differences between a physical store and its electronic counterpart (Lohse &
Spiller, 1998; Mohd Suki, 2006). Most of the previous online shopping research has focused
on identifying the attributes of online stores that promote success (Davis, 1989; Liu & Arnett,
2000; Muylle et al., 2004; Shih, 2004). Previous studies of online shopping have established
two categories of benefits; intrinsic and extrinsic. Both are important in customers' selections
to patronize the online stores (Liu & Arnett, 2000; Muylle et al., 2004; Shih, 2004). Extrinsic
benefits include features such as wide selection of products, competitive pricing, easy access
to information and low search costs. Intrinsic benefits include features such as design and
color (Shang et al., 2005). As presented in Figure 1, consumers’ shop on the Internet because
they find benefits over the Internet. Therefore it is reasons why consumers shop online
(Delhagen, 1997 Cited by Khatibi et al,
 A TAXONOMY OF CONSUMER ONLINE SHOPPING
ATTITUDES AND BEHAVIOR

A total of 35 empirical studies are analyzed in this study. Of these, 29 of them used survey
method. Other research methods such as lab experiments and free simulation experiments are
occasionally employed. Each of these studies addresses some aspect of online shopping
attitudes and behavior. Our goal is to develop a taxonomy representing factors/aspects related
to online shopping attitudes and behavior covered in the existing empirical IS literature. For
example, Bellman, Lohse and Johnson (1999) examine the relationship among demographics,
personal characteristics, andattitudes towards online shopping. These authors find that
people who have a more .wired lifestyle. and who are more timeconstrained tend to buy
online more frequently, i.e., those who use the Internet as a routine tool and/or those who are
more time starved prefer shopping on the Internet. Bhatnagar, Misra and Rao (2000) measure
how demographics, vender/service/ product characteristics, and website quality influence the
consumers. attitude towards online shopping and consequently their online buying behavior.
They report that the convenience the Internet affords and the risk perceived by the consumers
are related to the two dependent variables (attitudes and behavior) positively and negatively,
respectively. Jarvenpaa, Tractinsky, and Vitale (2000) investigate how consumers. perceived
store size and reputation influence their trust in the store, risk perception, attitudes, and
willingness to buy at the specific store. They discover that there is a positive relationship
between consumer trust in Internet stores and the store.s perceived reputation and size.
Higher consumer trust also reduces perceived risks associated with Internet shopping and
generates more favorable attitudes towards shopping at a particular store, which in turn
increases willingness to purchase from that store. Jahng, Jain, and Ramamurthy (2001)
propose and validate a Technology/Product Fit Model to describe and predict the relationship
between product characteristics, e-commerce environment characteristics, and user outcomes.
They classify products sold on the Internet as belonging to four categories based on social
and product presence requirements: simple, experiential, complex, or social. When a positive
fit is established between the ecommerce environment and the product requirements,
favorable user outcomes are generated that include user satisfaction, decision confidence, e-
commerce acceptance, and purchase intent. After examining the 35 empirical studies, we
identify a total of ten interrelated factors for which the empirical evidences show significant
relationships. These ten factors are external environment, demographics, personal
characteristics, vender/service/ product characteristics, attitude towards online shopping,
intention to shop online, online shopping decision making, onlinepurchasing, and consumer
satisfaction. Five (external environment, demographics, personal characteristics,
vendor/service/product characteristics, and website quality) are found to be ordinarily
independent and five (attitude toward online shopping, intention to shop online, decision
making, online purchasing, and consumer satisfaction) are ordinarily dependent variables in
the empirical literature. Few of the 35 studies examined cover all ten factors, and there is
some inconsistency in the empirical results of those that include similar factors. Nevertheless,
for the sake of discussion, we integrate these ten factors in a model (Figure 1) in which the
expected relationships among them are depicted. The five factors identified as antecedents
are normally independent variables, although some studies have treated Website Quality as a
dependent variable. These five factors directly determine attitude towards online shopping.
Attitude and intention to shop online have been clearly identified and relatively widelystudied
in the existing empirical literature. Decision-making is the stage before consumers commit to
online transaction or purchasing, and is sometimes considered to be a behavioral stage. The
depicted relationships among attitude, intention, decision-making, and online purchasing are
based on the theory of reasoned action (Fishbein and Ajzen 1975), which attempts to explain
the relationship between beliefs, attitudes, intentions, and actual behavior. Consumer
satisfaction is considered to be a separate factor in this study. It can occur at all possible
stages depending on consumers. involvement during the online shopping processInformation
Systems.

 External Environment

Only two out of 35 studies discuss the influence of external environment on online shopping.
External environment refers to those contextual factors that impact consumers. online
shopping attitudes and behavior. It includes three dimensions. The first is the existing legal
framework that protects the consumers from any kind of loss in online transactions. The
second is the system of

the Third Party Recognition in which many third party certification bodies are working to
ensure the trustworthiness of online vendors (Borchers 2001). These two factors are
positively associated with consumers. trust attitude to the online stores. The third factor is the
numbers of competitors, which can be defined as .the number of Internet stores that provide
the same service andproducts. (Lee et al. 2000, p.307). Lee and colleagues (2000) argue that
the fewer the com peting vendors, the greater the possibility of opportunistic behavior on the
part of existing vendors so as to maximize profits. This increases transaction costs for the
consumer, decreasing intention to revisit a specific online store

 Demographics

Eight of 35 studies examine the impact of demographics on online shopping attitudes and
behavior. Demographics include such variables as age, gender, level of education, income,
and time online. Bellman and colleagues (1999, p. 33) report that .Internet Li &
Zhang/Consumer Online Shopping Attitudes & Behavior 2002 . surveys agree that the online
population is relatively younger, more educated, wealthier, although the gaps are gradually
closing.. They argue that demographics appear to play an important role in determining
whether people use the Internet, however once people are online, demographics do not seem
to be key factors affecting purchase decisions or shopping behavior. Bhatnagar and
colleagues (2000) provide evidence that demographics are not relevant factors in determining
which store to patronize or how much to spend, though men and women do tend to buy
different types of products or services via the Internet. In summary, the literature suggests
that the impact of demographics on Internet buying behavior is not strong. Personal
Characteristics Personal characteristics have drawn the attention of fourteen studies. It can
be defined as a group of specific customer features that may influence their online shopping
attitudes and behavior, such as their Internet knowledge, need specificity, and cultural
environment. Li and colleagues (1999) found that customers who purchase Internet stores
more frequently are more convenience-oriented and less experience-oriented. These
consumers regard convenience during shopping as the most important factor in purchase
decisions, because they are time-constrained and do not mind buying products without
touching or feeling them if they can save time in this way. Potential consumers are often
prevented from shopping online by their concern for security (Han et al. 2001). However,
perceived risk can be reduced by knowledge, skill, and experience on the Internet, computer,
and online shopping (Ratchford et al. 2001; Senecal 2000; Sukpanich and Chen 1999; Ha et
al. 2001). In another study, Bellman and colleagues (1999) propose that people living a wired
lifestyle patronize e-stores spontaneously. These consumers use the Internet as a routine tool
to receive and send emails, to do their work, to read news, to search information, or for
recreational purposes. Their routine use of the Internet for other purposes leads them to
naturally use it as a shopping channel as well. Other factors found to impact consumers.
online shopping attitudes and behavior include cultural environment, need specificity,
product involvement, disposition to trust, the extent to which they would like to share values
and information with others, the extent to which they like being first to use new technologies,
and tendency to spend money on shopping (Borchers 2001; Koufaris et al.2002; Lee et
al.2000; Kimery and McCord 2002; Bellman et al 1999).

 Vender/Service/Product Characteristics

Sixteen out of the 35 studies examine the relationship between vender vender/service/product
characteristics and other factors. Vender/service/product characteristics refer to features of
the Internet stores, the products they sell, and the service they provide to support the
transactions. These factors are found to influence customers. online shopping attitudes and
behavior significantly. Measures employed to value vender characteristics in the empirical
studies include (1) real existence of the store/physical location, (2) store reputation, (3) store
size, (4) reliability,

(5) number of Internet store .entrances., (6) assurance-building mechanisms (e.g., seals,
warranties, news clips), and (7) use of testimonials (van der Heijden et al. 2001; Liang and
Lai 2000; Bhatnagar et al. 2000; Kim et al. 2001; Low engart and Tractinskky 2001; Grazioli
and Wang 2001; Pavlou 2001; Jarvenpaa et al. 2000; Lee et al. 2000). Among product
features that impact customers. online shopping behavior are (1) variety of goods, (2) product
quality/performance/product uncertainty, (3) product availability, (4) price, (5) social
presence requirement, (6) product presence requirement, (7) dependability of product, (8)
possibility of customized products, and (9) brand (Jahng et al. 2001; Liang and Huang 1998;
Kim et al. 2001; Cho et al. 2001; Lowengart and Tractinskky 2001; Muthitacharoen 1999).

In addition, researchers examine different aspects of service provided by the venders through
the online shopping process. Service factors related to online shopping attitudes and behavior
include (1) customer communication channels/ease of vendor contact, (2) response to
customer needs, (3) accessibility of sales people, (4) reliability of the purchasing
process/process uncertainty, (5) timeliness of orders or services/waiting time, (6) availability
of personalized services, (7) ease of return and refunds, (8) fraud, (9) delivery (speed,
tracking and tracing), (10) transaction costs, (11) peripheral costs, and (12) promotion (Ho
and Wu 1999; Liang and Huang 1998; Lohse and Spiller 1998; Liang and Lai, 2000;
Bhatnagar et al. 2000; Kim et al. 2001; Cho et al. 2001; Li et al. 2001; Muthitacharoen 1999).
  Website Quality

Twenty studies investigate the relationship between website quality and consumers online
shopping attitudes and behavior from different points of view. For example, Gefen and
Straub (2000) investigate the impact of perceived ease of use (PEOU) and perceived
usefulness (PU) on e-commerce adoption using 202 MBA students as subjects. They report
that while PU affects intended use when a Web site is used for a purchasing task, PEOU only
has an indirect influence on online shopping behavior by directly influencing PU. Lee et al.
(2001) obtain the similar findings in their recent study of design factors affecting consumer
loyalty. In one study, Song and Zahedi (2001) classify website quality elements into five
categories according to their purpose: for promotion, service, informational influence, self-
efficacy, and resources facilitation. These investigators find that each of the five significantly
and positively reinforces the consumers. perceptions in these factors, which in turn positively
influence consumer online shopping attitudes and behavior. Zhang, von Dran, Small, and
Barcellos (1999, 2000), and Zhang and von Dran (2000) make an attempt to evaluate website
quality from user satisfaction and dissatisfaction perspective. Their studies show that website
design features can be regarded as hygiene and motivator factors that contribute to user
dissatisfaction and satisfaction with a website. Hygiene factors are those whose present make
a website functional and serviceable, and whose absence causes user dissatisfaction n. Some
of the categories of hygiene factors are: Privacy and Security, Technical Aspect, Navigation,
Impartiality, and Information Content. Motivator factors are those that add value to the
website by contributing to user satisfaction. Five categories of motivation factors are:
Enjoyment, Cognitive Outcome, User Empowerment, Credibility, Visual Appearance, and
Organization of Information Content. In their continued effort, they further discover that the
most important website quality factors ranked by e-commerce consumers are hygiene factors
(von Dran and Zhang 1999; Zhang et al. 2000; Zhang and von Dran 2001a, 2001b; Zhang et
al. 2001). Liang and Lai (2000) review website quality factors influencing Internet buying
behavior by categorizing them into three groups, two of them are also named motivators and
hygiene factors, and third media richness factors. In their opinion, motivators are those who
support the transaction process directly while hygiene factors protect the consumers from
risks or unexpected events in the transaction process. Media richness factors .add more
information channels or richness in information presentation. (Liang and Lai 2000, p. 2).
They suggest that providing good transaction support will help Internet venders to beat their
electronic competitors, whilethe hygiene factors need to be paid attention if they want to
attract consumers from traditional stores. Overall, the measures employed to value website
quality by the researchers include the websites. information content, information
presentation, interaction between customers and venders, navigation, searching mechanism,
security, site technical feature, media richness, and so forth (Zhang and von Dran 2000,
2001a, 2001b; Grandon and Ranganathan 2001; Cho et al. 2001; Kim et al.2001; Lohse and
Spiller 1998; Koufaris et al. 2002; Ho and Wu 1999). In summary, a variety of factors related
to website quality have been demonstrated to significantly influence consumers. Online
shopping attitudes and behavior. Better website quality can guide the consumers complete
transactions smoothly and attract them to revisit this Internet store. In contrast, worse quality
would hinder their online shopping moves.

 Attitudes Towards Online Shopping

Consumers. attitudes toward online shopping have gained a great deal of attention in the
empirical literature, with 22 out of 35 papers focusing on it. Consistent with the literature and
models of attitude change and behavior (e.g., Fishbein and Ajzen 1975), it is believed that
consumer attitudes will affect intention to shopto shop online and eventually whether a
ransaction is made. multidimensional construct that has been conceptualized in several
different ways in the existing literature. First, it refers to the consumers. acceptance of the
Internet as a shopping channel (Jahng et al. 2001). Secondly, it refers to consumer attitudes
toward a specific Internet store (i.e., to what extent consumers think that shopping at this
store is appealing). These first two dimensions are negatively associated with the third,
customers. perceived risk. According to Lee and colleagues (2001), two main categories of
perceived risk emerge in the process of online shopping. The first is the perceived risk
associated with product/service and includes functional loss, financial loss, time loss,
opportunity loss, and product risk. The second is the perceived risk associated with context of
online transactions, and includes risk of privacy, security, and nonrepudiation. Among them,
the influence of financial risk, product risk, and concern for privacy and security is significant
(Senecal 2000; Borchers 2001; Bhatnagar et al. 2002). However, the fourth dimension of
attitude, consumers. trust in the stores, can reduce perceived risk. In addition, perceived
control/users. empowerment, enjoyment/playfulness, and perceived real added-value from
membership have also been shown to be important dimensions of consumers. attitudes
towards online shopping .
  Intention To Shop Online

Consumers. intention to shop online is studied by 13 out of the 35 papers. Consumers.

intention to shop online refers to their willingness to make purchases in an Internet store.
Commonly, this factor is measured by consumers. willingness to buy and to return for
additional purchases. The latter also contributes to customer loyalty. Jarvenpaa and
colleagues (2000) assess consumers. Intention to shop online by asking a series of questions
assessing the likelihood of returning to a store.s website, the likelihood of purchasing from
the store within the next three months, the likelihood of purchasing within the next year, and
general the likelihood of ever purchasing from a particular store again. As is indicated in
Figure 1, consumers. intention to shop online is positively associated with attitude towards
Internet buying, and influences their decision-making and purchasing behavior. In addition,
there is evidence of reciprocal influence between intention to shop online and customer
satisfaction.

 Online Shopping Decision Making

Online shopping decision-making includes information seeking, comparison of alternatives,

and choice making. The results bearing on this factor directly influence consumers.
purchasing behavior. In addition, there appears to be an impact on users. satisfaction. Though
it is important, there are only five studies that include it. According to Haubl and Trifts
(2000), potential consumers appear to use a two-stage process in reaching purchase decisions.
Initially, consumers typically screen a large set of products in order to identify a subset of
promising alternatives that appears to meet their needs. They then evaluate the subset in
greater depth, performing relative comparisons across products based on some desirable
attributes and make a purchase decision. Using a controlled experiment, these authors
discover that the .interactive tools designed to assist consumers in the initial screening of
available alternatives and to facilitate in-depth comparisons among selectedalternatives in an
online shopping environment may have strong favorable effects on both the quality and the
efficiency of purchase decisions. (Haubl and Trifts 2000, p. 4).

 Online Purchasing
Fourteen studies discuss online purchasing, which refers to consumers. actions of placing
orders and paying. This is the most substantial step in online shopping activities, with most
empirical research using measures of frequency (or number) of purchases and value of online
purchases as measures of online purchasing; other less commonly used measures are
unplanned purchases

(Koufaris et al. 2002) and Internet store sales (Lohse and Spiller 1998). For example, in Lee
and colleagues. (2001) examination of the relationship between online purchasing behavior,
perceived ease of use, perceived usefulness, perceived risk of the product/service, and
perceived risk in the context of the transaction, the measures used are total amount spent and
frequency in last 6 months. Online purchasing is reported to be strongly associated with the
factors of personal characteristics, vendor/service/product characteristics, website quality,
attitudes toward online shopping, intention to shop online, and decision making (Andrade
2000; Bellman et al. 1999; Bhatnagar et al. 2000; Cho et al. 2001; Grandon and Ranganathan
2001; Jarvenpaa et al. 2000; Lee et al. 2000; Sukpanich and Chen 1999).

 Consumer Satisfaction

Consumer satisfaction is the focus of the investigation in only three articles. It can be defined
as the extent to which consumers. perceptions of the online shopping experience confirm
their expectations. Most consumers form expectations of the product, vendor, service, and
quality of the website that they patronize before engaging in online shopping activities. These
expectations influence their attitudes and intentions to shop at a certain Internet store, and
consequently their decision-making processes and purchasing behavior. If expectations are
met, customers achieve a high degree of satisfaction, which influences their online shopping
attitudes, intentions, decisions, and purchasing activity positively. In contrast, dissatisfaction
is negatively associated with these four variables (Ho and Wu 1999; Jahng et al. 2001; Kim et
al. 2001).

BARRIERS

 ACCESS
Increasingly, the issue of access to the Internet is not about which consumers have computers
and online connections but the quality of their hardware and service. Nationally, more than
onehalf of all U.S. households have a computer and more than 80% of those households have
access to the Internet (U.S. GAO, 2001). However, the vast majority of Internet users (88%
by one estimate) have a “narrowband” connection to the Internet -- a connection that is low-
speed and low-capacity. Broadband users are more likely to have household incomes of at
least $75,000 and broadband service is more prevalent in large metropolitan areas and
wealthy areas (U.S. GAO, 2001).Income is likely to continue to have a critical influence on
access. While recent years have seen steep annual declines in computer costs (U.S.
Department of Commerce, 2000), the average monthly cost for telecommunication
subscriptions was $122 in 2000 and rising (Lieberman, 2001). Adding $18 monthly for a
narrowband Internet service (or $40 for a high-speed connection) to a typical consumer’s
other monthly subscriptions (basic cable or satellite, $36; single-line telephone, $14; cell
phone, $32) represents a significant cost burden f for many lowerand middle-income
consumers. However, commercial deployment of the Internet is a relatively recent event.
Internet service providers have experimented with a variety of plans, including some that do
not charge consumers. As the U.S. GAO (2001, p. 7) concluded in a recent report, “The
challenge for policymakers over the long-run will be to determine whether any continuing
disparities in the availability and use of the Internet among different groups of Americans
threaten to deepen the socioeconomic divisions within our society.”

Time costs also influence consumers’ use of e-commerce. One frustration for consumers is
the time involved to retrieve packages when no one is at home. Fewer than 25% of business-
to consumer shipments fit I mailboxes and the number of deliveries is expected to double by
the year 2003 (Borrus, 2000; Hirschman, 2000). Several systems are being tested to allow
secure delivery of bulky packages when no one is at home. But until affordable convenient
solutions are identified, delivery dilemmas will continue to frustrate consumers.

 TAXES
Whether and how to tax Internet sales has been a subject of much debate. Many online
vendors currently choose not to collect sales taxes because of the many different rates
charged by the over 7,000 state and local tax jurisdictions. Retailers are not required to
collect sales taxes unless they have a physical presence (or nexus) in a state. In fact, some
retailers have set up a separate business for their online enterprise to avoid collecting sales
taxes (Geewax, 2000) If the vendor does not collect sales tax the consumer is expected to
report the purchase and pay a “use” tax in their home state.Much of the interest in the sales
tax issue is generated by lost revenues. The GAO estimates that states would lose about $2.5
billion in 2003 if Internet sales taxes go uncollected (Squitieri, 2001). The Institute for State
Studies(http://www.statestudies.org/states.html) provides estimates by state; larger states such
as New York, California, and Texas, are projected to lose the most. Some experts argue,
however, that estimates of lost tax revenues are usually high because they do not take into
account various offsetting costs of collecting taxes, such as enforcement (Goolsbee &
Zittrain, 2000). And, according to one analysis (Goolsbee, 1998), applying sales tax to the
Internet would reduce the number of online shoppers by 24%.A proposed legislative solution
is to require the states to agree to one national rate or one rate per state and to agree to
uniform definitions. For example, 13 states do not tax clothing. In six of these states a
handkerchief is an article of clothing and is not taxable; in six other states it is not clothing
and is taxable (the thirteenth state leaves the issue open) (Phillips, 2001). With uniform
definitions and one rate per state (or a national sales tax rate), businesses would be required
to collect sales taxes on almost all Internet (and catalog) purchases (Squitieri, 2001).The 33
states participating in the Streamlined Sales Tax Project are working to create uniform
definitions of what is taxable and what is not and to simplify sales tax rates by having all state
and local governments use common tax bases. Each of the 33 participating states have
enacted enabling legislation or their governor has issued an executive order or similar
authorization (“Streamlined Sales Tax Project,” 2001). In the meantime, in Fall 2001
Congress extended until November 2003 its moratorium (Internet Tax Nondiscr2003 its
moratorium (Internet Tax Nondiscrimination Act, PL 107-75) on Internet access and multiple
and discriminatory Internet taxes.

 Cyberfraud

How can consumers know that there is a legitimate business behind the web sites they see?
Can they be certain that regulators are up to the task of enforcing laws in online transactions?
Are existing laws adequate to protect consumers when they do business online, not only in
the U.S. but also in a global marketplace (FTC, 1998)?In the first six months of 1999, the
National Consumers League Internet hotline received complaints that reflected losses of $2
million from online fraud (Castelan, 1999-2000). One estimate of the average loss per person
to online fraud in 2000 is $410 (Emling, 2001).State and federal agencies have stepped up
efforts to identify and combat Internet fraud and to educate consumers to protect themselves.
For example, the Federal Trade Commission regularly conducts “Surf Days” in which staff
and sometimes volunteers scan the Web to identify Web sites with dubious claims. The
Commission also created Consumer Sentinel, the largest database of consumer fraud
complaints in North America. Law enforcement officials in the U.S. and Canada have free
access to the data through a secure, searchable Web site, and can now easily coordinate
enforcement efforts aimed at the most common frauds (FTC, 1998).

 PRIVACY

In a 2001 poll of 2,365 adults nationwide, consumers were asked, “How concerned are you
about threats to your personal privacy on the Internet?” Twenty-four percent of respondents
said they were very concerned and 49% were somewhat concerned (Simpson, 2001). This
result is typical; numerous surveys in recent years have found high levels of concern among
consumers about online privacy.However, surveys also indicate that consumers do not always
adopt practices that are consistent with their expressed concerns. In the same poll as
mentioned above, only 4% of consumers said they always read the privacy policies of Web
sites; 16% said they frequently do. Only 5% always have concerns about privacy that stop
them from buying online; 9% frequently do (Simpson, 2001).In a 2000 poll of 2,117 adults,
consumers indicated their greatest concern was “firms or people you don’t know getting
personal information”; 84% of respondents expressed this concern. Yet only 27% said they
would never give personal details online (Miller, 2000). Only seven in 1,000 consumers set
their browser to block cookies (Kessler, 2000); 24% have given false information to protect
privacy (Miller, 2000).As of this writing, a legislative solution to consumers’ privacy
concerns appears unlikely. In the meantime, the industry has responded to consumer
concerns in two ways. First, there are several self-regulation programs. TRUSTe is perhaps
the best known; others include the Better Business Bureau’s BBB Online,
PricewaterhouseCooper’s BetterWeb, and the American Institute of Certified Public
Accountant’s CPA WebTrust. Each requires sites that display the seal of the program to keep
promises to give consumers notice about how their information is used, control of their
information, enough security to prevent leaks, and a forum to settle disputes. However, some
consumer advocates are skeptical of the value of the programs since they are
industryfinanced and none has ever revoked a seal for failure to comply (Kessler,
2000).Microsoft has proposed P3P (Platform for Privacy Preferences) as a solution to
consumers’ privacy concerns. Simply, implementation of P3P would require:C Web sites to
translate their privacy policies into P3P’s dialect.C Web users to state their preferences for a
privacy policy in their Web browser.P3P would then block one’s personal computer from
sending personal information to a Web site if the site’s policy does not match the consumer’s
personal privacy policy preferences (Jesdanun, 2001; Simpson, 2001). Some are skeptical
about how well social and business practices can be translated into machine-based decisions
and others wonder how likely widespread industry acceptance will be.
 REVIEW OF LITERATURE

 Petrovic Dejan (2006)

In his study on Analysis of consumer behavior online explained that the most relevant
behavioral characteristics of online consumers and examine the ways they find, compare and
evaluate product information. Comparison of the newly collected survey data with the
existing consumer behavior theory resulted in detection of a number of issues related to a
specific consumer group. The purpose of this report is to translate these findings into a set of
implementation activities on strategic and technological level.

Executionof these recommendations will result in better conversion of visitors intocustomers

and encourage customer loyalty and referrals. The focus group of this study will be young
adults aged between eighteen and thirty-four interested in buying a mobile phone or a related
product

 Shun &Yunjie (2006)

In their study showed that there are product types, which are more likely to be sold online
such as software, books, electronics and music. Reason for this is that when purchasing these
types of products, one does not require personal inspection and most, if not all features, can
be outlined in the product description and images. Most products in the mobile phone family
belong to this category. According to the recent research on consumer behavior on the
Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct
consumer groups with different intentions and motivations:

Exploration

Entertainment

Shopping

Information

Daily updated collection of music videos and lyrics. Majority of young adults interviewed for
purpose of this research tend to be active information seekers. A high level of technological
confidence within this group tends to be an encouraging factor when it comes to product
information research online. The following analysis presents both, focus group results and

behavioral theory in a parallel fashion divided into two main research topics: Information
Retrieval and Search Patterns Perception of Product Information Online These two areas is
mutually dependent and particularly important in a market where consumers have the power
to choose the right product from a number of competing suppliers. Well-structured product
information that cannot be found easily online is as much of a problem as is having easily
accessible information that does not meet the consumer's expectations

 Anders Hasslinger; Selma Hodzic; Claudio Opazo(2008-02-01)

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

 Harris Interactive {2009}

In their study of online customer experience. The survey found that online customer
experience reached an inflection point in2009. The percent of consumers who have
experienced problems when conducting transactions online showed its first substantial
decrease in five years-- from approximately 87% in all previous Tealeaf surveys to 80% in
2009.While the percent of consumers experiencing online transaction problems, at80%,
remains high (the potential online shopping dollars impacted by transaction problems rings
up at $47.6 billion), this improvement points to a growing business focus on delivering better
customer experiences. The survey sheds light on forces driving this accelerated online
customer experience focus including the down economy and increased consumer power due
to experience-sharing via social media. It also examines consumer behavior when transacting
online, call center behavior related to online issues and mobile commerce.Verticals
represented in the findings include retail, insurance, travel and financial services.

San Francisco, CA – 6th October 2009 the leader in online Customer Experience
Management software (CEM), today announced the results of the 5th annual survey of online
consumer behavior, commissioned by Tealeaf and conducted by Harris Interactive® [results
available at www.tealeaf.com/Harris].The survey found that 48% of U.S. online adults say
that they are now conducting more online transactions than they did in the
pastgiven the current economic climate. However, 80% of adults who haveconducted an
online transaction in the past year experience problems when doing so in 2009.
Previous Tealeaf surveys have consistently shown thatapproximately 87% were affected.
This improvement over prior years may be attributed to a growing business focus on
delivering better online customer experiences. While this reported decline in online
transaction issues is good news, online customer experience is still very much a work in
progress. The percentage of consumers affected by issues such as error messages
(38%),endless loops (19%) and login problems (28%) is still extremely high.Further,the
resulting business impact is significant, as 32% of those who experience issues when
conducting transactions online.

 Bikramjit Rishi(2010)

In their study on online shopping is an innovative option of distribution available in the hands
of marketers. It is innovative and creative because marketers can experiment with it in form,
content, visibility and availability. In India online shopping is considered as a relevant
alternative channel for retailing and it is now an important part of the retail experience.

This research study is an empirical study to find out the motivators anddecisional influencers
of online shopping. The sample has been selected from the youth population as this group of
people actually use internet to buy online.The study highlights that reliability; accessibility
and convenience are the major motivator factors which motivate the Indian consumer to buy
online. Similarly ,reluctance and preference are the two decisional factors which influence the
decision.

 Kamali and Loker (2002), in their study Internet retail sales represent a new and

increasingly vital commercial milieu. E-commerce or electronic commerce saw sales

revenues grow 12.1 percent in 2001 to $31.4 billion a figure expected to reach $81.1 billion
by 2006 (Kamali & Loker, 2002). While it is clear that many more consumers are electing to
shop online than in the past a shift in behavior that may be due to the sense that online
shopping is safer and more secure than it was initially and to the adoption of alternative
shopping avenues.This essay will examine these issues, arguing that browsers become buyers
incyberspace as perception of safety, product quality, and retailer reliabilityincrease an idea
also advanced by Li, Luo, Lepkowaska-White and Russell .

 Atanasov (2001)

In their study it is anticipated that the worldwide market for business-to-business and
business-to-consumer e-commerce will total $3.1 trillionin 2004 as compared to $350.4
billion in fiscal 2000-2001. Among the mostprofitable products and services sold online are
consumer goods such as books,videos, music, computers and other tech products, and travel
(Schmerken, 2001).Other profitable sectors include investment transactions, which
Schmerken (2001)considers to have generated a wave of corporate spending on e-commerce.
The Internet and its myriad e-commerce or marketing sites, represents what researchers
believe to be the security concerns of online shoppers and potential shoppers. These
researchers and others reported that online buyers are also concerned about security issues
when making online purchases. Though many consumer concerns regarding the inherent
safety of financial transactions online have been resolved through the development
of sophisticated encryption programs, many consumers require additional assurance that their
financial data will be held in confidence. Other security issues that were identified by
Mauldin and Arunachalam (2002) focus on retailer disclosures, information risk, product risk,
and familiarity with the retailer and the product. Generally, Mauldin and Arunachalam (2002)
found thatintent to purchase rather than merely browsing online increases in directassociation
with a sense of security and comfort. Retailers who offer

their products online are therefore advised to emphasize product disclosure andretailer disclos
ure and reduced information risk in their e-commerce sites.Though most online retailers do
provide clear descriptions of security procedures, some Internet shoppers still avoid using
credit cards online.Overcoming resistance to this fear is one of the key tasks that must be
under taken.

 Ogenyi Ejye Omar, Alan Hirst(2006)

in their study they evaluates women”s attitude as an overall inclination towards apparel
shopping online via e-mail questionnaire Its findings suggest that women generally
show positiveattitudes towards shopping online for apparel. Women who shop for apparel
online are aware of some of the discouraging features of online shopping, but these features
do not deter them from buying online. The implication for online retailers is that they should
focus on making the experience of online shopping moreaccommodating and more user -
friendly. This is important because the positive features of online shopping ('convenience',
'usefulness', 'ease of use', and'efficiency') appear to be more
important than the negative features ('lack of security', 'privacy of information' and 'online
fraud').

 Scott M. Smith, Chad R. Allred, William R. Swinyard (2008)

Intheir research paper they discusses online shopping in context of diffusion of innovation
theory. It proposes that online shopping is a discontinuous innovation whose adoption
rate is influenced by several of Rogers' (2004)diffusion deterrents. A new 12 -item 'Computer
Competence Index' (CCI) is proposed and tested using data from an internet - administered
US probability study of 1800 online users. E-Shoppers are profiled using a tertile split of
theCCI. Each tertile's demographics, computer activities, computer - orientedlifestyles, and
online purchase activities are reported. Evidence is presented that concepts related to the
diffusion of innovation may explain resistance in the growth of online shopping.

 A.M. Sakkthivel (2009)

In their research paper aims to identify the impact of demographics on consumer buying
behavior towards online purchase of different products based on the involvement and
investment (High, Medium and Low). It attempts to unearth the impact of the demographics
on online purchase which is at present relatively limited. It would help the marketers to
identify
thedemographic profile of consumers which is otherwise not known due to theintangible
nature of internet. The findings would help the marketers to design their offerings based on
the demographic profile of online consumers and would help the online marketers to identify
and segment the online consumers which will enhance their focus and eventually leads to
financial growth.

 Jianwei Hou, Cesar Rego(2007)

in their study in traditional auctions, it is often assumed that bidders are a homogenous group.
However, since most online bidders are average consumers instead of professional bidders,
we suspect that online bidders are a heterogeneous group. The purpose of this paper is to
explore the types of online bidders based on their real bidding behaviour in the context
of consumer-to-consumer online auction market. A cluster analysis is employed and four
types of online bidders are finally identified in a private value auction, namely,goal-driven
bidders, experiential bidders, focused bidders, and opportunistic bidders. The profile and
performance of each group are also discussed.

 David Anderson (02 .02 .2006)

In their research carried out by a consumer behavior researcher at Henley Management

College has investigated what drives people to search online. The findings reveal that
convenience, time-efficiency and personal control are the key drivers for consumers to search
online, rather than cost. It also shows that the relationship between traditional and online
retailing outlets needs to be more unified E-shopping has changed the face of retail, and
surfers are now looking for spring sale bargains. This is following a bumper e-Christmas,
where Internet shopping soared almost 50% during the 10- week run-upto Christmas 2005
(IMRG).

However, the new findings reveal that convenience and personal control are the key drivers
for consumers to search online. Dr Susan Rose, from Henley Management College, said:
“What motivatesonline shoppers is the ability to shop, where, when and how they like.Nowad
ays people can shop over their Shreddies in the morning. The
research,that analyses data from 304 electrical goods Internet shoppers, providesbusinesses w
ith a guide to getting the information highway buzzing withpotential customers. Big-ticket
items such as digital TVs, cameras, or iPod snow feature on our e-shopping list. The Internet
provides a rich source of information about brands and retail channels that enable us to search
and find information to help us with our final purchase decision. For businesses there are
some steps to help them embrace the Internet revolution with success. A key factor driving
Internet use for „online window shopping is its usefulness in our personal
lives. The Internet frees time and makes the information searchprocess, Research suggests
that people search online for some goods, yet buy from a traditional high street retailer, or
look around for goods in shops, then take their search online. In turn, it is essential for
retailers who operate both on and off line to ensure that they embrace a joined up process that
appears seamless to the customer. Some retailers have still to successfully unite the two
retailing methods - this is key to contemporary customer service. Factors
suchas how much the medium challenges us mentally and our confidence tonavigate and
understand the technology can turn us on or off the idea of browsing online for products. A
clear divide is appearing between the occasional online shopper and the regular experienced
user. Concerns about how easy the system is to use have almost disappeared for online
shopping enthusiasts, but for occasional users e-tailing sites need to be easy to
navigate.Websites must be accessible and operate efficiently. The research found that the
expectation of getting a good financial deal is still a strong motivator to seek out products
online, but this is secondary to the importance but, many people
steer clear of electronic buying because of security worries.

Only once onlineretailers can reassure customers about fraud and privacy will the onlineshop
ping curve really take off. Worries about the risk involved, in terms of financial transaction
and privacy remain. A move from „big brands purchase costs on firm performances in online
and traditional channel competition.A game theory model is developed to determine the
optimal
strategiesforonlineand traditional retailers. We demonstrate that consumer online purchase co
stsalways have a valuable impact on firm profits, and further show that consumer online
purchase costs always have a much more valuable impact on firm profits whenever the
traditional retail transaction costs and the product web-fit change. We also find that consumer
online purchase costs have a greater impact on the retailer's profits in a Stackel berg
competitive system than in a Bertrand competitive system based on our results, managerial
implications are discussed and probable paths of future research are identified.

, and online purchase activities are reported.

 Jianwei Hou, Cesar Rego(2007)

In their study in traditional auctions, it is often assumed that bidders are a homogenous group.
However, since most online bidders are average consumers instead of professional bidders,
we suspect that online bidders are a heterogeneous group. The purpose of this paper is to
explore the types of online bidders based on their real bidding behaviour in the context
of consumer-to-consumer online auction market. A cluster analysis is employed and four
types of online bidders are finally identified in a private value auction, namely,goal-driven
bidders, experiential bidders, focused bidders, and opportunistic bidders. The profile and
performance of each group are also discussed.

 Tomomi Hanai , Takashi Oguchi (2009)

In their study to investigate what kind of information contributes to trust formation in online
shopping. Twenty-seven female undergraduate students were recruited and
asked to evaluate the trustworthiness of 20 online shopping websites. All the online shopping
websites dealt with branded products where there is greater emphasis on the trustworthiness
of online shops or products. The results show that information described on the websites was
classified into two categories, firstly, information about the shop and its procedures and
services. Secondly, the concrete information necessary for the consumption process, such as
payment information and return information, which heightens the reliability of these
shops.The term “brand” originally refers to a“description or trademark which indicates a type
of product made by a particular company.” However, in modern Japanese society it refers to
those branded products that are perceived to have a higher quality than other similar products.
Thus, the term “brand” authenticates that its products belong to a high-class,

and the people who possess these branded products are regarded as “exclusive people”

through the “basking-in-reflected glory process” (Cialdini, Borden, Thorne,Walker, Freeman,

& Sloan, 1976). The branded products interest female young people and recently they have
been more inclined to purchase them via online shopping. However, they tend to refrain from
purchasing these products via online shopping due to their distrust of it. Consequently, it
becomes more and more important to analyse what kind of information contributes to trust
formation in online shopping. Female Undergraduate Students Attitudes toward
Branded” Products First, we introduce several surveys for determining the attitudetowards, an
d ownership of, branded products among female young people,especially female
undergraduate students in Japan, who are the target group of this study. Info plant (2007)
showed that nearly half of all people are

interestedin some branded products. Although branded products generally attract theattention
of various kinds of people, young females are especially interested in branded products. Info
plant (2007) revealed that more than 60% of females under 20 years of age and nearly 80%
of females in their twenties have purchased some branded products. Furthermore, the
percentage of people who usually buy new branded products is about 20% among females
under 20 years of age and more than 10% in females in their twenties

 RAJIV 1999

in their study The World Wide Web can change human behavior and human interactions to a
very large extent. Web based shopping behavior is one major example to point out the trends
in this direction. This study is of a very exploratory nature and it intends to establish the
differences between several web - based shoppers from different parts of the world. Several
critical factors associated with online shopping behavior will be explored. A cross cultural
data set will be collected and an illustrative description of the shoppers will be provided. As a
final step the cross cultural differences between several shoppers will be explored. One
question which will run as a theme throughout the course of this paper is, “Will the
traditional

consumer behavior theory and research be altered by the advent of web based
shopping?”There is a huge difference between a physical store and its electronic counterpart.
A help button on the home page of the web-shopping site replaces the sales clerks friendly

advice and service. The familiar layout of the physical store becomes a maze of pull down
menus, product indices and search features.Now more than ever, the promise of electronic
commerce and online shopping will depend to a great extent upon the interface and how
people interact with the computer. At the same time, there are some inherent difficulties in
maintaining an online inventory. In a regular store, the managers can pull out a product from
the shelf if they feel that it is not fast moving or has no demand. This is a privilege that
cannot be extended to the online retail store.

 Anita desai {2003}

In her sudy E-tailing is the practice of selling retail goods on the internet.
It is the abbreviated version of “electronic retailing” whichessentially constitutes business to
consumer transaction. While the concept of online retailing or e-tailing is no longer in its
nascent stage; it continues to evolve,as advanced e-commerce applications act as a potent
catalyst in the development of e-tailing.

The idea of online retailing or e-tailing which almost every net-savvy individual is familiar
with; offers a convenient mode of shopping online and the consumer gets to choose from a
diverse range of products and services as opposed to theanalogous physical shopping
experience. Furthermore, online retailers or e-tailers get to expose and sell their products to a
global audience through their e-stores.The E-commerce industry plays a vital role in its
growth and development. The consumer or buyer is usually provided with detailed
information and description of the product which helps them make a judicious choice before
making an online purchase. For consumers who face a paucity of time or want a diverse
range of products to choose from, e-tailing proves to be an ideal option. Every e-tailer wants
his/her share of domain amidst the vast World Wide Web galaxy.Due to the intense
competitory quotient involved, every e-tailer out there wants to offer their customer/buyer a
smooth and pleasant shopping experience. Therefore, e-tailing is just not restricted to putting
up products for sale for consumers to buy. As consumers today are well-informed, it is
understood that they would make a well informed decision as well. This involves a fair
amount of product research, price comparison and checking the credibility of the e-store.
 RESEARCH METHODOLOGY

Data for this study was collected by means of a Survey conducted in Dehradun city. The
sample size was 200.The Questionnaire (shown in Annexure) was used Mainly to test the
model
proposed for Attitude towards online shopping. The type of research was bothexploratory as
well as Descriptive. Likert five point scales ranging from StronglyAgree to strongly
disagree was used as a basis of Questions. We took around eleven different factors by
studying the existing models of consumer attitudes that play an important role in online
purchase, and then proposed a model leading to online shopping. This model was then tested
in our research by the percentage analysis in ms-excel.

OBJECTIVE OF THE STUDY

 To study the online shopping behavior of customers.

 To study the factors influencing online shoppers and consumers
 To study the customer’s level of satisfaction with regard to online shopping

 Research Strategy

When collecting data to approach the purpose of a research there are two ways in which the
data can be collected. In order to acquire a General knowledge about the topic, secondary
data is primarily used and is one of the ways by which data can be collected. The second way
to collect data is the primary data collection. Usually when a study is conducted,secondary
data is not sufficient enough and needs to be completed with primary data which is collected
by the research.

 Descriptive Research Method

We will conduct our research in order to collect primary data and reach the objective of the
Dissertation. We will also be discussing which different types of Methodologies that were
used. Since our research is of descriptive character our primary intention was to collect
primary data and analyze it. By doing so we found the factors Price, Trust and Convenience.
We then collected primary data through a survey. The main purpose of the survey was to
collect data about Online Consumer Behavior and the significance of the established factors,
Price, Trust, and Convenience In order to be able to find and establish Online Consumer
Segments, Consumer Traits and Online Behavior had to be identified..

 Sample Design

The factors that we intended to examine can be applied to and investigated at anypopulation
that uses the Internet and buys online products Online. Since there are time and resource
restraints, a specific Population had to be identified in order to generalize and
create relevant segments. We decided that the sample size should contain over 200
respondents and we collected answers from 100 respondents. The populations for this
research are professionals & students at Dehradun city. The city was chosen on a
convenience basis. Convenience sampling involves using samples that are the easiest to
obtain and is continued until the sampling size that is need is reached.

We will attempt to collect as many respondents as possible but since we will be studying
students & professionals we assume that there will be little variation in the population making
it more approved to generalize the response rates.

RESEARCH DESIGN

 Need

The need of this research is to identify and get insight into what main factors the online
consumer takes into consideration when most he buy products on internet what affects
their shopping behavior, basic need of this research is to find out what are the main factors
affect the online consumer when considering and making a purchase over Internet.

Scope of the Study

At any given time there are millions of people online and each of them is
apotential customer for a company providing online sales. Due to the rapid development of
the technologies surrounding the Internet, a company that isinterested in selling products
from its web site will constantly has to search for an edge in the fierce competition. Since
there are so many potential consumers, it is of the outmost importance to be able to understan
d what the consumer wants and needs.The importance of analyzing and identifying factors th
at influence the consumer whenhe or she decides to purchase on the Internet is vital. Since
the Internet is a new medium for there have been new demands set by the consumer. That is
why it is crucial for the online retailers to know what influences.

The online consumer. Analyzing consumer behavior is not a new phenomenon. Therenowned
marketing expert Philip Kotler has published several works on the topic of consumer
behavior theories. These theories have been used for many years not only to understand the
consumer, but also create a marketing strategy that will attract the consumer efficiently
Hence, understanding and identifying the consumer is closely related to the directions a
company will take with their marketing strategy. These theories can also be applied to
identify the online consumer and to create certain consumer segments. However,some
distinctions must still be made when considering traditional consumer behavior and online
consumer behavior.Since online retailing is a new retailing medium and online consumer
behavior is diverse from traditional consumer behavior, one must identify what influences the
online consumer. Analyzing the process that the online consumer goes through when
deciding and making a purchase over the Internet, shows some factors that consumers
consider these factors need to be identified and taken into account by online retailers in order
to satisfy consumer demands and compete in the online market.
 DATA ANALYSIS & INTEPRETATION

Q1 To know the age of the respondents?

Respondents Percentage
15-20 31%
20-25 48%
25-30 14%
30 & above 7%

INTERPRETATION

The above diagram shows us the percentage in the age of respondents. As it shows that from
age 15-20 the number of respondents are31 % and from age of 20 -25 it is 48 % and from 25-
30 it is 14% this is the above data which is shown by the this pie chart.
Q2 To know the gender of the respondent

Respondents Percentage
Male 86%
Female 14%

INTERPRETATION

As our respondents are mostly from the students and professional in chennai city who uses
cards. I use to get more data from males as they were ready to give their experiences, it this
graph itself is showing more percentage of males rather than females, the percentage of male
respondents is 86% and percentage of female respondents is only 14%.
Q3 TO KNOW THE DEMOGRAPHY WHETER RESPONDENT LIVE
INRURAL OR URBAN AREA

Respondents Percentage
Rural 24%
Urban 76%

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what is the
percentage of respondents who lives in rural or urban region, the above diagram is showing
that 76% of the respondents are from urban areas and 24% of the respondents are from rural
area.
Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

Respondents Percentage
Student 90%
Professional 4%
Govt. Employee 0%
Self employed 5%
others 1%

INTERPRETATION

This graph help us to know the occupation of the respondents, this is to know that which
segment of people are buying more products on the internet whether they are the segment of
students government employees or professional, the above graph shows that the segment of
the students i.e. 90% of the students are using internet and use to buy online products.
Q5. TO KNOW THE MONTHLY INCOME OF THE REPONDENTS?

Respondents Percentage
Less than 10000 60%
10000-20000 22%
30000-40000 15%
40000 & above 3%

INTERPRETATION

This above graph shows the percentage of monthly income of the different respondents,and it
show that less than 10000 income respondents have buyed more online products because
most of them are students and they use to buy music Cds, gadgets, laptops.
Q6 TO KNOW WHETHER RESPONDENTS HAVE THEIR
OWNINTERNET CONNECTION

Respondents Percentage
Yes 65%
No 35%

INTERPRETATION

This graph show us the percentage of respondents who have their own internet
connections,its shows that 65% of respondents have their own internet connections and
35% people don’t have their own internet connection.
Q7 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE
SHOPPING

Respondents Percentage
Easy Payment 37%
No hidden cost 5%
Wide range cost 10%
No travel to shop 48%

INTERPRETATION

This graph shows us what motivates the people to buy internet, as from above result we
found out that no travel to shop is the main thing which motivates the people to buy products
online.

Q8 TO KNOW WHETHER CONSUMERS ARE GETTING

COMPETITIVE PRICE
Respondents Percentage
Yes 63%
No 27%
Cant say 6%

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or not and
result which is came is that most of the people thought that online marketers are providing
competitive prices than physical stores. And result shows 67% of people says that it provides
competitive prices and only 27% people says no.
Q9 What products do you buy online?

Respondents Percentage
Books 23%
Music 24%
t-shirts 12
Mobile 22%
Laptop 19%

INTERPRETATION

The above graphs gives result that most of time people use to buy books25% but the margin
with other things is very less as music Cds have percentage of 20 and mobile23%So this
graph shows us this useful data .
Q10 DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN
SHOPPING AT PHYSICAL STORE

Respondents Percentage
Yes 47%
No 40%
Cant say 13%

INTERPRETATION

After analyzing the above graph shows that the people are in favour of that online shopping is
better than physical store, The percentage of people who says online shopping is better is45%
and the people who says it not good is 38 %. Still the percentage of people who says yes is
more than other who says no.
Q11 WHICH OF THE FOLLOWING STORES HAVE YOU VISITED

Respondents Percentage
E-bay 33%
Yahoo shopping 15%
Amazon 38%
Best boy 10%
Others 4%

INTERPRETATION

This graph shows that 35% people use to visit e-bay for online shopping,40% use to go
atamazon.com because % of people who buys books is more than any other products so
people mostly visits amazon.com, 16 % people do at yahoo shopping and for other people use
to visit at Best Buy and others.

Q12 WHAT FACTORS HELP YOU TO DECIDE WHICH SITE TO

USEFOR ONLINE SHOPPING
Respondents Percentage
Search engine 18%
Personal recommendations 10%
Special offers on sites 20%
Online advertising 32%
TV advertising 17%
Others 3%

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that32%
people came to know about shopping sites through online advertisements. And they attracted
towards it and start getting products from there. And 20% people decision is affected by
special offers by the offers and the discounts given by the sites.
Q13 HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

Respondents Percentage
Credit card/debit card 78%
Bank transfer 5%
Paypal 15%
Other 2%

INTERPRETATION

This diagram shows that mostly people uses credit card to pay their payments 78% people
use to pay by credit/debit card and 5% through bank transfer and 15% through pay pal and2
from pay pal.
 FINDINGS

Researcher found that most of the time youngster who are from the age of 20-25shopsa lot on
the net rather than other age limits. People used to do online shopping because of its
convenience.

 The three factors that were found show a significant in influencing onlineshoppers
and onsumers. The general distribution showed that the price was the primary factor
for the entire sample population, and that second factor was trust was closely followed
by convenience.
 Researcher segments the respondents through different variables found that a segment
were mainly trust oriented and the respondents had a high positive attitude towards
purchasing books online.
 Other was mainly price and convenience oriented therefore took the mostconsideratio
n to the opinions and experiences of the Reference groups. As they low disposable
income and were somewhat convenience oriented when acquiring information about
low prices, chose to label them price easers.
 The main thing which is very common in the most of the people about online
shopping is its risk of privacy i.e. hacking of account number getting passwords and
all.
 SUGGESTIONS

 As came to know after researching on this topic researcher recommend that, the
online sellers have to make their payment transparent, and as people are coming on
their sites and they are buying their products.
 Retailers have to give more discounts to their customers so that they can visit again
and again to their site and it also helps to make people more aware about the low risk
shopping of the net.
 Transaction of money is very slow they have to make it fast so that customer don’t
have to face much problem to pay for the product, if customer is going to face some
problem he is not going to visit our site and buy products.
 The online advertisement must made for products in other website must have direct
link for purchasing site.
 The retailers must make sure that their website is out of malwares and virus
attacks.Following implications should be followed
 Discount price
 A transfer and reliable retailer
 Fast transactions
 Focus on customer satisfaction
 CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high levels of Net
savings see more and more Indians shopping online. But at the same time the companies need
to reduce the risks related to consumer incompetence by tactics such as making purchase
websites easier to navigate, and introducing Internet kiosk, computers and other aids in
stores. The goal is not to convert all shoppers to online purchasing, but to show them its an
option. In addition to above, efforts need to be taken to educate the online buyers on the steps
that need to be undertaken while making an online purchase.Moreover, the feedback of an
online buyer should be captured to identify flaws in service delivery. This can be done
through online communities and blogs that serve as advertising and marketing tools and a
source of feedback for enterprises. I found that it is a challenge for E-marketers to convert
low frequency online buyers into regular buyers through successful website design and by
addressing concerns about reliable performance. Thus, the online retailing raises more issues
than the benefits it currently offers. The quality of products offered online and procedures for
service delivery are yet to be standardized. Till the same is done, the buyer is at a higher risk
of frauds.
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QUESTIONNAIRE

Q1 To know the age of the respondents?

 15-20
 20-25
 25-30
  30 & above

Q2 To know the gender of the respondent

 Male
 Female

Q3 To know the demography whether respondent live in rural or urban area

 Rural
 Urban

Q4 TO KNOW THE OCCUPATION OF THE RESPONDENTS

 Student
 Professional
 Govt. Employee
 Self Employed
 Others

Q5. To know the monthly income of the respondents?

 Less than 10000

 10000-20000
 30000-40000
 40000 and above

Q6 To know whether respondents have their own internet connection

 Yes
 No

Q7 To know what motivates people to do online shopping

 Easy payment
 No hidden cost
  Wide rage cost
 No travel to shop

Q8 To Know Whether Consumers Are Getting Competitive Price

 Yes
 No
 Can’t say

Q9 What products do you buy online?

 Books
 Music
 T-shirts
 Mobile
 Laptop

Q10 Do you feel that online shopping is better than shopping at physical store

 Yes
 No
 Can’t say
Q11 Which of the following stores have you visited

 E-bay
 Yahoo
 Amazon
 Best Buy
 others

Q12 What factors help you to decide which site to usefor online shopping?

 Search Engine
 Personal Recommendations
 Special offers on sites
 Online Advertising
 Others

Q13 How you make your payments on the internet

 Credit card/ debit card

 Bank Transfer
 Paypal
 Other