A

PROJECT REPORT

ON

“A STUDY ON CUSTOMER PERCEPTION TOWARDS ONLINE SHOPPING AT

DISTRICT KANGRA”
Submitted in the partial fulfilment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

Affiliated to

SARDAR PATEL UNIVERSITY, MANDI

(Session 2022-24)

SUPERVISED BY: - SUBMITTED BY: -

Prof. VISHAL KALIA MOHIT KUMAR

ROLL NO. 202201201628017

DEPARTMENT OF MANAGEMENT STUDIES

GOVERNMENT DEGREE COLLEGE DHALIARA (H.P.) 177103

SARDAR PATEL UNIVERSITY

MANDI, HP, INDIA
 DECLARATION

I am Mohit Kumar Student of “Government Degree College Dhaliara” pursuing MBA having Roll no.
202201201628017 hereby declare that the project work entitled in “A STUDY ON CUSTOMER
PERCEPTION TOWARDS ONLINE SHOPPING AT DISTRICT KANGRA” has been prepared by
under the guidance by Mr. Vishal Kalia me in partial fulfillment of the award of Master of Business
Administration under Sardar Patel University.

I further declare that this project report has not been submitted earlier in any other university or institution
for award of any degree or diploma.

Mohit Kumar

202201201628017

I
 ACKNOWLEDGEMENT

The project work is pursued as a part of Govt. Degree College Dhaliara. I would greatly rejoice to express
emphatically with profound sense of gratitude and highest veneration.
My sincere thanks to Professor Vishal Kalia for giving me guidance for this Project. His able guidance and
support have been constant source of knowledge and motivation for me. I am short of words to express my
respect & honour to my parents and family members & friend who showered their blessings, affection,
encouragement, & inspiration, without which this report would not have been finalize. I also express my
sincere thanks to my friends who helped me differently in the completion of my work.
Last but not least, I also thank to my Parent, Sibling & all my dear Friends during my project work and helped
me to accomplish my project work in the most efficient and effective manner.

MOHIT KUMAR

II
 EXECUTIVE SUMMERY
Online shopping has become a significant part of the retail industry, providing consumers with a convenient
way to purchase products from the comfort of their homes. The study conducted focuses on understanding
customer satisfaction with online shopping experiences and the factors influencing their perceptions.

Dissertation examines customer perception and related promotional strategies for the future growth of online
shopping platforms. The study includes an analysis of the company's infrastructure, business network, and
future plans.

Study consist on design of the study, by which company’s wants to know the customer's perception & related
promotional strategies to improve because there is a stiff competition in the retail market. The study has been
done in the kangra district, through questionnaire method by direct and Google forms. The sample size for this
study was 100 only existing online shoppers .The data was gathered through primary source like direct & online
google form and secondary data like newspapers, books, websites and companies reports etc.

Questionnaire was prepared as per following objectives.

 To know about customer perception towards online shopping.

 To identify the factors affecting the customer perception towards online shopping.
 To study the customer level of satisfaction with regards to online shopping.

There are also some limitation of this study like small sample size, not much awareness, & shortage of time. All
100 respondents were selected on the base of judgment sampling they were from backgrounds of business,
student, housewife and others within the age group of 18 and above and their income level was 0 to 70000 and
above. In data analysis collected data is analyzed & discussed in detail with table & graphical presentation.
There are some important findings on the bases of data analysis.Majority of respondents have been using the
internet for over 5 years.Majority of the respondents have made online purchases, with the majority making
their first purchase 1-3 years ago. Most respondents shop online monthly, primarily using smartphones .
Flipkart is the most used online shopping platform (59%). Majority of respondents have a positive perception
towards online shopping. Better prices and product variety are significant influencers for online shopping.
Majority of respondents are satisfied with the quality of products available online. Majority of respondent’s rate
customer service as good. Majority of respondents are satisfied with their overall online shopping experience.
Majority of respondents (53%) would recommend online shopping to others.

III
Majority of the respondents want to continue with online shopping and they prefer to recommend it to others.
The study suggests that companies should adopt promotional strategies like billboards, hoardings, and
advertisements in popular newspapers.

The conclusion of this study is that retail industry is totally based on customer perception so companies should
improve its service to meet customer's expectation. Effective promotional strategies and continuous feedback
from customers are crucial for attracting and retaining customers. By focusing on these areas, the study provides
a comprehensive framework for businesses to enhance their online shopping platforms and strategies, ensuring
they meet the evolving needs of their customers effectively.

"To meet the customer expectations should be the ultimate objective".

IV
 TABLE OF CONTENT

CHAPTER NO. CONTEXT PAGE NO.

DECLARATION I

ACKNOWLEDGEMENT II

EXECUTIVE SUMMERY III-IV

CHAPTER I INTRODUCTION 1-25

1.1 Conceptual Background Of The Topic

1.2 History And Prospective Of The Organization

CHAPTER II RESEARCH DESIGN 26-32

2.1 Review Of Literature

2.2 Need Of Study

2.3 Scope Of Study

2.4 Objective Of Study

2.5 Research Methodology

2.5.1 Sampling Method

2.5.2 Statistical Method And Tools Used For Data Analysis

CHAPTER III DATA ANALYSIS AND INTERPRETATION 33-65

CHAPTER IV SUMMARY AND CONCLUSION 66-67

REFERENCES/BIBLIOGRAPHY/ANNEXURE 68-72
 LIST OF TABLE

TABLE NO. CONTEXT PAGE NO.

Table 4.1 Frequency analysis of Gender 35

Table 4.2 Frequency analysis of Age 36
Table 4.3 Frequency analysis of Marital Status 37
Table 4.4 Frequency analysis of Educational Qualification 38
Table 4.5 Frequency analysis of Educational Qualification 39
Table 4.6 Frequency analysis of Area Reside of Respondents 40
Table 4.7 Frequency analysis of Household Monthly Income of Respondents 41
Table 4.8 Frequency analysis of Internet Usage Experience of Respondents 42
Table 4.9 Purchased anything Online 43
Table 4.10 First time Shop Online 44
Table 4.11 How often Shop Online 45
Table 4.12 Primarily device use for online shopping by Respondents 46
Table 4.13 Site use by Online Shoppers 47
Table 4.14 Overall Perception towards Online Shopping 48
Table 4.15 Factors influences the choice of online stores the most 49
Table 4.16 Wide varieties of products available online 51
Table 4.17 Quality of products available online 52
Table 4.18 Product descriptions and specifications is important when shopping online 53
Table 4.19 Packaging of products is important when making a purchase online 54
Table 4.20 Prices of products on the online platform are competitive 55
Table 4.21 Payment method prefer by online shoppers 56
Table 4.22 Layout and the design of online shopping websites play an important role 57
while purchasing
Table 4.23 Delivery speed of your order from online purchase 58
Table 4.24 Actively seek out promotional offers before making a purchase online 59
Table 4.25 Online shopping is secure way to make purchase 60
Table 4.26 Customer service provided by online stores 61
Table 4.27 Overall online shopping experience 62
Table 4.28 Likely to recommend online shopping to others based on experiences 63
 LIST OF FIGURE

S.NO. CONTEXT PAGE NO.

Figure (a) Frequency analysis of Gender 35
Figure (b) Frequency analysis of Age 36
Figure (c) Frequency analysis of Marital Status 37
Figure (d) Frequency analysis of Educational Qualification 38
Figure (e) Frequency analysis of Educational Qualification 39
Figure (f) Frequency analysis of Area Reside of Respondents 40
Figure (g) Frequency analysis of Household Monthly Income of Respondents 41
Figure (h) Frequency analysis of Internet Usage Experience of Respondents 42
Figure (i) Purchased anything Online 43
Figure (j) First time Shop Online 44
Figure (k) How often Shop Online 45
Figure (l) Primarily device use for online shopping by Respondents 46
Figure (m) Site use by Online Shoppers 47
Figure (n) Overbal Perception towards Online Shopping 48
Figure (o) Factors influences the choice of online stores the most 49
Figure (p) Different types of product purchase by online shoppers 50
Figure (q) Wide varieties of products available online 51
Figure (r) Quality of products available online 52
Figure (s) Product descriptions and specifications is important when shopping 53
online
Figure (t) Packaging of products is important when making a purchase online 54
Figure (u) Prices of products on the online platform are competitive 55
Figure (v) Payment method prefer by online shoppers 56
Figure (w) Layout and the design of online shopping websites play an important 57
role while purchasing
Figure (x) Delivery speed of your order from online purchase 58
Figure (y) Actively seek out promotional offers before making a purchase 59
online
Figure (z) Online shopping is secure way to make purchase 60
Figure (aa) Customer service provided by online stores 61
Figure (ab) Overall online shopping experience 62
Figure (ac) Likely to recommend online shopping to others based on experiences 63
 INTRODUCTION

1.1 CONCEPTUAL BACKGROUND OF THE TOPIC

The concept of customer perception is rooted in marketing and psychology, and while it's challenging to
pinpoint a single individual who first introduced the concept, it evolved over time through the contributions of
various scholars and practitioners in these fields.

 Early Foundations: The study of perception itself has deep roots in psychology, with early work by
psychologists like Wilhelm Wundt and William James in the late 19th and early 20th centuries laying
the groundwork for understanding human perception.

 Marketing Evolution: In the mid-20th century, marketing scholars began to apply psychological
principles to understand consumer behavior. The 1950s and 1960s saw significant advancements with
the development of the marketing mix (4 Ps: Product, Price, Place, Promotion) by E. Jerome McCarthy,
which implicitly considered customer perception in the context of how these elements influence
consumer decisions.

 Theoretical Contributions: Philip Kotler often referred to as the "father of modern marketing,"
significantly advanced the understanding of customer perception through his extensive work and
publications. His seminal textbook "Marketing Management," first published in 1967, integrated
concepts of consumer behavior and perception.

 Consumer Behavior Studies: Researchers like John A. Howard and Jagdish N. Sheth further
explored customer perception in their works on consumer behavior models. Their 1969 book "The
Theory of Buyer Behavior" is a notable contribution that discusses how consumers' perceptions
influence their purchasing decisions.

Overall, the concept of customer perception emerged gradually through the contributions of multiple scholars
and practitioners in marketing and psychology.

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1.1.1 CUSTOMER PERCEPTION:

Customer perception is the opinions, feelings, and beliefs customers have about your brand. It plays an
important role in building customer loyalty and retention as well as brand reputation and awareness.

Customer Perception is the impression customer’s form about a brand based on their interactions and
experiences. Advertising, reviews, product quality, and customer service shape it. This perception influences
their decisions to engage with a brand. A positive perception can lead to loyalty, referrals, and increased sales,
making it a vital aspect for businesses to manage. By understanding and enhancing customer perception,
businesses can build a stronger, more positive brand image, crucial for long-term success and competitive
advantage in the marketplace.

1.1.2 IMPORTANCE OF CUSTOMER PERCETION:

 Customer Loyalty: When customers have a positive perception of a brand, they’re more likely to
return and engage with it long-term. Loyalty goes beyond just making repeat purchases; it can lead to
customers recommending the brand to others, creating a loyal customer base.

 Competitive Advantage: In crowded marketplaces, a positive customer perception can serve as a

differentiation factor. Customers choose brands they perceive positively over competitors, even if the
offerings are similar.

 Brand Equity: Positive perception enhances a brand’s value and reputation in the market. It helps
build trust and credibility, which are invaluable assets for any brand.

 Increased Sales: A good perception encourages customers to buy, increasing sales. It directly reflects
customer satisfaction and willingness to continue buying from the brand.

 Customer Advocacy: Satisfied customers often become brand advocates. They share their positive
experiences with others, providing valuable word-of-mouth marketing which can be more effective and
trustworthy compared to other marketing strategies.

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1.1.3 FACTORS INFLUECING CONSUMER PERCEPTION

 QUALITY OF PRODUCTS AND SERVICES

The quality and reliability of a brand’s offerings are crucial. Customers often gauge the value they’ll
receive from a product or service based on its quality, making it a pivotal factor in shaping perception.

 CUSTOMER SERVICE

Exceptional customer service can significantly enhance a brand’s image. Responsive, courteous, and
helpful interactions, whether pre or post-sale, form a lasting impression on customers, influencing their
perception and loyalty.

 PRICE

Pricing plays a vital role in perceived value. Customers tend to compare the cost with the benefits they
receive, and against competitors’ pricing. A fair pricing strategy can foster a positive perception.

 BRAND REPUTATION

A brand’s reputation, formed through past actions, reviews, and public opinion, is a strong influencer of
perception. Positive reputation fosters trust and a favorable perception.

 MARKETING AND ADVERTISING

Through marketing and advertising, brands communicate their values, features, and benefits. Effective
marketing that resonates with customers can significantly improve their perception of the brand.

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1.1.4 HOW TO IDENTIFY AND MEASURE CUSTOMER PERCEPTION

1. CUSTOMER SATISFACTION (CSAT) SURVEYS

Customer satisfaction surveys let customers quantitatively rate the service they receive. Looking at the
ratings and accompanying comments can show you what your customers are thinking and feeling.

“When it comes to metrics, there are no silver bullets,” Chandler says. “It depends on what experience
you want your customers to have with your brand. The simplest way to begin? Customer satisfaction
surveys—specifically, the comments.”

Instead of just asking customers how they would rate your product or service, consider going a bit
deeper with additional open-ended questions that clarify the reasoning behind their responses:

 “Why did you choose this score?”

 “What could we do to improve your experience?”

 “Where did this interaction succeed or fail at meeting your expectations?”

2. NET PROMOTER SCORE (NPS)

Net Promoter Score is a tool for measuring how likely your customers are to recommend your business
to others. NPS is less transactional than CSAT and focuses on the way your customers feel about your
brand rather than how they feel about their recent customer service experience.

But similar to a CSAT survey, your NPS survey will be especially insightful if it includes additional
open-ended questions such as:

 “What was disappointing about your experience with our product/service?”

 “What features of our product/service do you like best?”

 “How can we improve your experience?”

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 Based on their responses, you can determine what steps you need to take to change negative perceptions
and convince customers to advocate for your brand.

To ensure you’re accurately gauging customer sentiment, NPS surveys should be conducted no more
than every six months.

3. CUSTOMER EFFORT SCORE (CES)

Customer Effort Score measures how easy (or difficult) it is for customers to solve their issues or to
complete a task using your product or service. Ideally, you want buyers to get the resolution they need
with little effort.

Including questions like “What was the most time-consuming part of your experience?” and “Was it
easy and convenient to contact the support team?” in your CES survey helps you gauge how much effort
your customers are putting into interacting with your brand. The responses can help indicate what you
need to do to improve, too.

Remember, these metrics are only a piece of the puzzle. Once you have your data, Chandler points out,
“You also need to come up with a strategy to identify, improve, and monitor results.”

1.1.4 STEPS TO IMPROVE CUSTOMERS PERCEPTION:

After collecting your metrics, you’ll know how customers feel about your brand. You’ll need a game plan to
help you improve if your customers don’t view you in a very positive light. And if you find your company has a
great reputation, don’t rest on your laurels—you’ll need to take steps to continue maintaining that standard.

 SHARE CUSTOMER SUCESS STORIES

An effective way to influence customers’ opinions about your brand is to show them how you’ve helped
other people succeed. When customers see how others have achieved their goals with your product or
service, they’re more likely to perceive your brand positively.
“When talking about customer perception and its importance to business, it’s not just about brand
reputation—we also can’t forget about perceived value,” Chandler says. “Perceived value directly
relates to your bottom line. If customers don’t feel like they’re getting value from what you’re selling,
they won’t buy it.”

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 You can help customers understand your brand’s value by showing them “the value of what you’re
bringing on a regular basis,” according to Chandler.

 IMPROVE CUSTOMER SERVICE

Providing exceptional customer service ensures that customers feel valued and understood, which in
turn, builds trust and satisfaction. Zappos, for example, is known for its outstanding customer service,
where representatives often go above and beyond to assist customers, thereby creating a positive
perception of the brand.

 POSITIVE ONLINE PRESENCE

Engaging with customers online, addressing their concerns promptly, and showcasing positive reviews
are crucial steps in building a good online reputation. For instance, Amazon actively manages its online
reviews and promptly addresses negative feedback, which helps maintain a positive online presence.

 COMMUNITY ENGAGEMENT
Brands that engage in local communities or support causes resonate well with customers. Starbucks, for
example, engages in various community service initiatives which not only benefit the communities but
also improve the brand’s perception.

 CONSISTENT BRANDING
Maintaining consistency in branding across all platforms creates a recognizable and reliable brand
image. Apple’s consistent branding across products and advertising, for example, establishes a
recognizable identity which enhances customer trust and loyalty.

 INNOVATINE MARKETING CAMPAIGNS

Creative and resonant marketing campaigns help in positively shaping customer perception by
connecting with them on an emotional level. Nike’s “Just Do It” campaign, for instance, inspires and
resonates with a broad audience, thereby enhancing brand perception and loyalty.

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1.2 HISTORY AND PROSPECTIVE OF THE ORGANIZATIONS

 Early Beginnings (1960s-1980s):

EDI (Electronic Data Interchange): In the 1960s, EDI allowed businesses to exchange documents
electronically, laying the groundwork for e-commerce.

CompuServe: Founded in 1969, it was one of the first major commercial online services in the U.S.

Internet and the Web: The invention of the World Wide Web by Tim Berners-Lee in 1989 provided
the foundation for modern e-commerce.

 1990s: The Rise of E-commerce:

Amazon and eBay: Founded in 1994 and 1995 respectively, these companies revolutionized online
shopping and auctions.

Online Payment Systems: PayPal, founded in 1998, made online transactions easier and more secure

 2000s: Expansion and Innovation:

Dot-com Bubble and Burst: Early 2000s saw a surge in e-commerce businesses, followed by a crash.
Survivors like Amazon and eBay grew stronger.

Emergence of New Players:* Alibaba (1999), Shopify (2006), and others entered the market,
diversifying the e-commerce landscape.

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  2010s: Mobile Commerce and Globalization:

Mobile Commerce: The proliferation of smartphones led to m-commerce, with mobile-optimized

websites and apps.

Global Reach: E-commerce companies expanded internationally, tapping into emerging markets.

Social Media Integration: Platforms like Facebook and Instagram became important channels for e-
commerce.

 2020s: The COVID-19 Impact and Beyond:

Pandemic Acceleration: COVID-19 dramatically increased online shopping as consumers avoided

physical stores.

Technological Advancements: AI, AR/VR, and blockchain are being integrated into e-commerce for
personalized experiences, virtual try-ons, and secure transactions.

Prospective of E-commerce Organizations

 Continued Growth:

E-commerce is expected to keep growing, driven by increased internet penetration, mobile usage, and
consumer preference for online shopping.

 AI and Personalization:

AI will play a significant role in offering personalized shopping experiences, predictive analytics, and
efficient customer service through chatbots and virtual assistants.

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  Augmented Reality (AR) and Virtual Reality (VR):

AR and VR will enhance the shopping experience by allowing customers to visualize products in their
own environment or try them virtually before buying.

 Sustainability:

E-commerce companies will focus on sustainable practices, from eco-friendly packaging to carbon-
neutral shipping, as consumers become more environmentally conscious.

 Blockchain Technology:

Blockchain will improve transparency and security in transactions, supply chain management, and
product authenticity.

 Omni-channel Retailing:

Integration of online and offline channels will provide a seamless shopping experience. Click-and-
collect, where customers buy online and pick up in-store, will become more common.

 Global Expansion:

E-commerce platforms will continue to expand into new markets, particularly in developing countries,
offering local payment methods and logistics solutions.

 Regulatory Challenges:

E-commerce companies will face increasing scrutiny and regulation regarding data privacy, consumer
rights, and fair competition.

 Innovative Payment Solutions:

Adoption of digital wallets, cryptocurrencies, and other innovative payment methods will enhance
convenience and security for customers.

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  Enhanced Logistics and Delivery:

Innovations in logistics, such as drone deliveries, autonomous vehicles, and smart warehouses, will
make delivery faster and more efficient.

Conclusion

E-commerce organizations have evolved significantly from their early days of EDI and basic online transactions
to sophisticated platforms offering a myriad of services and products globally. Looking forward, technology and
consumer behavior will continue to shape the landscape, pushing the boundaries of what e-commerce can
achieve.

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 ONLINE SHOPPING

Online shopping is the process of buying goods and services from merchants who sell on the Internet and
people can purchase just about anything from companies that provide their products online. Online shopping is
a form of Electronic Commerce. E-commerce is the short name for electronic commerce. It is the process of
selling and buying the products and offering online services utilizing electronic media and the internet. E-
commerce or Electronic commerce is a subset of E-Business (a company that does all or most of its transactions
through the Internet), is the purchasing. Selling, and exchanging of goods and services over computer networks
(such as the Internet) through which transactions or terms of sale are performed electronically. The E-commerce
industry allows doing business without worrying about distance and time. These business transactions occur
either as business-to-business (B2B), business to-consumer (B2C), consumer-to-consumer (C2C) or consumer-
to-business (C2B).

The terms e-commerce and e-business are often used interchangeably. The term E Tail (electronic retailing) is
also sometimes used in reference to transactional processes for E-Shopping or Online Shopping. E-Shopping is
the browsing and purchase of goods using computer (Internet) or Television catalog, also called Home
Shopping. Online Shopping is a form of e-commerce which allows customers to directly buy goods form seller
over the Internet.

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services
from a seller over the Internet using a web browser. Consumers find a product of interest by visiting the website
of the retailer directly or by searching among alternative vendors using a shopping search engine, which
displays the same product's availability and pricing at different e-retailers. A typical online store enables the
customer to browse the firm's range of products and services, view photos or images of the products, along with
information about the product specifications, features and prices. Online stores typically enable shoppers to use
"search" features to find specific models, brands or items. Online customers must have access to the Internet
and a valid method of payment in order to complete a transaction, such as a credit card, a debit card, or a service
such as PayPal. For physical products (e.g., books or clothes), the e-retailer ships the products to the customer;
for digital products, such as digital audio files of songs or software, the e-retailer typically sends the file to the
customer over the Internet.

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Evolution of Online Shopping and E-Commerce:-

The concept of e-commerce, short for electronic commerce, emerged in the late 20th century. The first
significant milestone was the establishment of the Electronic Data Interchange (EDI) in the 1960s, which
allowed companies to transfer documents electronically. However, the true transformation began with the
advent of the internet in the early 1990s. One of the earliest pioneers of online shopping was Amazon, founded
by Jeff Bezos in 1994. Initially an online bookstore, Amazon quickly expanded its product range, setting the
stage for the modern e-commerce landscape.

eBay, another early entrant, launched in 1995 as an online auction site. These platforms demonstrated the
potential of the internet to facilitate transactions and connect buyers and sellers globally. The dot-com boom of
the late 1990s further fueled the growth of e-commerce, as numerous online businesses emerged, although not
all survived the subsequent bust.

Mechanisms of Online Shopping:-

Online shopping involves the purchase of goods or services over the internet. The process typically includes
several steps:

 Browsing: Customers search for products or services on e-commerce websites or mobile apps. This can
be done using search engines, specific online stores, or social media platforms.
 Selection: Customers select items by adding them to a virtual shopping cart. Detailed product
descriptions, images, and customer reviews assist in the decision-making process.
 Checkout: Once the selection is complete, customers proceed to the checkout process. Here, they
provide shipping information, select payment methods, and review their orders.
 Payment: Payments are made using various methods, including credit/debit cards, digital wallets (e.g.,
PayPal, Apple Pay), bank transfers, or even cryptocurrency.
 Delivery: After payment, the seller processes the order and ships the products. Customers receive
tracking information and can monitor the delivery status.
 Post-purchase Services: These include customer support, return and refund policies, and warranty
services, ensuring customer satisfaction and fostering loyalty.

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Features of Online Shopping and E-Commerce:-

 Convenience: One of the most significant benefits of online shopping is convenience. Consumers can
shop 24/7 from the comfort of their homes, avoiding the need to travel, stand in long queues, or adhere
to store hours. This is especially beneficial for individuals with busy schedules or those living in remote
areas.
 Variety and Accessibility: E-commerce platforms offer a vast array of products and services that
might not be available locally. Consumers can compare prices, read reviews, and make informed
decisions. Additionally, online shopping breaks down geographical barriers, allowing access to global
markets.
 Competitive Pricing and Discounts: Online retailers often provide competitive pricing due to lower
overhead costs compared to brick-and-mortar stores. Flash sales, discounts, and promotional offers are
common, providing significant savings to consumers.
 Personalized Shopping Experience: Advanced algorithms and data analytics enable e-commerce
platforms to offer personalized recommendations based on browsing history, previous purchases, and
customer preferences. This enhances the shopping experience and increases customer satisfaction.
 Efficient and Contactless Transactions:-Digital payments and streamlined checkout processes
make transactions quick and efficient. The rise of contactless payments and delivery options, accelerated
by the COVID-19 pandemic, has further enhanced the safety and convenience of online shopping.

Challenges of Online Shopping and E-Commerce:-

Despite its advantages, online shopping and e-commerce face several challenges:

 Security and Privacy Concerns: Cybersecurity threats such as data breaches, phishing attacks, and
identity theft pose significant risks to both consumers and businesses. Ensuring secure transactions and
protecting customer data are paramount for maintaining trust and compliance with regulations.
 Logistical Issues: Efficient and timely delivery of products is crucial for customer satisfaction.
However, logistical challenges such as supply chain disruptions, shipping delays, and handling returns
can impact the overall experience.
 Competition and Market Saturation: The e-commerce market is highly competitive, with
numerous players vying for consumer attention. This can lead to market saturation, making it
challenging for new entrants to establish a foothold and for existing businesses to maintain profitability.

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  Technological Dependence: E-commerce relies heavily on technology, and any technical issues, such
as website downtime, payment gateway failures, or cybersecurity breaches, can disrupt operations and
affect customer trust.
 Consumer Trust and Perception: Building and maintaining consumer trust is crucial for e-
commerce success. Negative experiences, fraudulent sellers, and counterfeit products can erode trust and
deter potential customers.

Future Prospects of Online Shopping and E-Commerce:-

The future of online shopping and e-commerce looks promising, with several trends and advancements shaping
the landscape:

 Mobile Commerce (M-Commerce): The proliferation of smartphones and mobile apps has led to
the rise of mobile commerce. Consumers increasingly use their mobile devices to shop, make payments,
and access e-commerce platforms, driving the need for mobile-optimized websites and applications.
 Artificial Intelligence (AI) and Machine Learning: AI and machine learning technologies are
revolutionizing e-commerce by enabling personalized recommendations, chatbots for customer support,
predictive analytics for inventory management, and fraud detection systems. These technologies
enhance efficiency and improve the customer experience.
 Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies are transforming
the online shopping experience by allowing customers to visualize products in real-world settings. For
instance, customers can see how furniture would look in their homes or try on virtual clothing, reducing
the uncertainty associated with online purchases.
 Social Commerce: The integration of e-commerce with social media platforms, known as social
commerce, is gaining traction. Consumers can discover products through social media posts, influencers,
and advertisements, and make purchases directly within the platform, streamlining the shopping process.
 Sustainable and Ethical Shopping: As consumers become more environmentally conscious, there is
a growing demand for sustainable and ethical products. E-commerce platforms are responding by
offering eco-friendly options, transparent supply chains, and initiatives to reduce their carbon footprint.
 Expansion of Payment Options: The future of e-commerce will see the expansion of diverse
payment options, including digital currencies, buy now, pay later (BNPL) services, and biometric
authentication. These innovations will cater to varying consumer preferences and enhance transaction
security.

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Online shopping and e-commerce have become integral components of the modern economy, reshaping the way
businesses operate and consumers shop. The evolution from early e-commerce pioneers to the current digital
landscape has brought about significant benefits, including convenience, variety, and competitive pricing.
However, challenges such as security concerns, logistical issues, and market competition must be addressed to
ensure sustained growth.

E-COMMERCE WORKING:-
Electronic commerce, commonly known as E-commerce, is trading in products or services using computer
networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online transaction processing,
electronic data interchange (EDI), inventory management systems, and automated data collection systems.
Modem electronic commerce typically uses the World Wide Web for at least one part of the transaction's life
cycle, although it may also use other technologies such as e-mail.

E-commerce offers products and services through websites, a customer simply has to visit an e commerce
website and browse various offering through browser catalog, a customer can select multiple offerings and can
add them to the shopping cart, once the shopping is done the customer can check out and proceed to payment
section where various online payment options are available like internet banking, credit card, debit card etc.
Once payment is done the customer is notified about the order and order is shipped on the postal address
provided by the customer.

E-COMMERCE BUSINESSES MAY EMLOY SOME OR ALL OF THE FOLLOWING:

1. Online shopping web sites for retail sales direct to consumers.

2. Providing or participating in online marketplaces, which process third-party business to consumer or
consumer-to-consumer sales.
3. Business-to-business buying and selling.
4. Gathering and using demographic data through web contacts and social media.
5. Business-to-business electronic data interchange.
6. Prevail for launching new products and services.

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BENEFITS OF E-COMMERCE:-

E-commerce benefits are broadly classified in 3 major categories:

1. BENEFIT TO ORGANIZATION:-
 Using e-commerce, organizations can expand their market to national and international markets with
minimum capital investment. An organization can easily locate more customers, best suppliers, and
suitable business partners across the globe.
 E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage
the paper based information by digitizing the information.
 Commerce improves the brand image of the company. E-commerce helps organization to provide
better customer services.
 E-commerce helps to simplify the business processes and makes them faster and efficient.
 E-commerce reduces the paper work.
 E-commerce increases the productivity of organizations.

2. BENEFIT TO CUSTOMERS:
 Customers can enquire about a product/service and place orders anytime, anywhere from any
location.
 E-commerce application provides users with more options to compare and select the cheaper and
better options & also quicker delivery of products.
 A customer can put review comments about a product and can see what others are buying, or see the
review comments of other customers before making a final purchase.
 A customer can see the relevant detailed information within seconds, rather than waiting for days or
weeks.

3. BENEFITS TO SOCIETY:
 Customers need not travel to shop a product, thus less traffic on road and low air pollution. E-
commerce helps in reducing the cost of products, so less affluent people can also afford the products.
 E-commerce has enabled rural areas to access services and products, which are otherwise not
available to them.

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 OVERVIEW OF THE INDUSTRY

The retail industry in India is one of the fastest-growing sectors, reflecting the country's robust economic
growth and increasing consumer spending. Here's an overview of the industry:

Market Size and Growth:-

 Market Size: The Indian retail market is expected to reach USD 1.75 trillion by 2026, up from
approximately USD 883 billion in 2020.
 Growth Rate: The sector has been growing at a Compound Annual Growth Rate (CAGR) of about
10%, driven by a rise in consumer demand and an expanding middle class.

Key Segments:-

 Organized Retail: Includes hypermarkets, supermarkets, and specialty stores. Organized retail
accounts for about 12-15% of the total retail market.
 Unorganized Retail: Comprising traditional formats like local kirana shops, general stores, and street
vendors, this segment dominates the market with an 85-88% share.
 E-commerce: The e-commerce segment has seen significant growth, especially during and after the
COVID-19 pandemic. It is projected to reach USD 200 billion by 2026.

Major Players:-

 Reliance Retail: A leading player with a vast network of stores and a strong presence in various retail
formats.
 Future Group: Known for its large-format stores like Big Bazaar, which cater to a wide range of
consumer needs.
 Tata Group: Through Trent and Star Bazaar, Tata is a significant player in the organized retail sector.
 E-commerce Giants: Amazon and Flipkart dominate the online retail market, along with other
players like Snapdeal and Paytm Mall.

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Trends and Drivers:-

 Urbanization: Increased urbanization has led to a higher demand for organized retail and modern
shopping experiences.
 Digitalization: Growing internet penetration and smartphone usage are driving the e-commerce
segment.
 Consumer Preferences: There is a shift towards branded products, health and wellness items, and
convenience shopping.
 Government Policies: Initiatives like Make in India, Digital India, and policies favoring FDI in retail
have boosted the sector.

Challenges:-

 Infrastructure: Inadequate infrastructure and supply chain logistics can hinder growth, especially in
the rural areas.
 Regulatory Hurdles: Complex regulations and policies at the state and central levels can pose
challenges for retailers.
 Competition: Intense competition among both organized and unorganized players can lead to thin
profit margins.

Future Outlook

The retail industry in India is poised for robust growth, supported by favorable demographics, increasing
consumer spending, and policy support. The integration of technology and a focus on customer experience are
expected to be key drivers for the sector moving forward.

This dynamic landscape offers vast opportunities for both domestic and international players looking to invest
and expand in India’s retail market.

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 ONLINE SHOPPING IN INDIA

Online shopping in India has seen a tremendous surge over the past decade, driven by the rapid adoption of
technology, increasing internet penetration, and a growing preference for convenience among consumers. As of
2024, the e-commerce sector in India is one of the fastest-growing markets globally. Here’s an overview of the
current landscape, along with some insights into future expectations:

Current Landscape:-
 Market Size and Growth: India’s e-commerce sector is expected to reach INR 4,416.68 billion in
2024, with an annual growth rate of 11.45% to reach INR 7,591.94 billion by 2029.[2] The UPI
transactions touched INR 125.94 trillion in 2022, with a user base exceeding 800 million.
By 2029, e-commerce users are expected to reach 501.6 million. User penetration is projected to be
22.1% in 2024, with an anticipated increase to 34.0% by 2029.
 Internet and Smartphone Penetration: India has over 800 million internet users, with a significant
proportion accessing the internet via smartphones. Smartphone users in India are expected to reach 1
billion by 2025, which will further fuel the growth of online shopping.
 Consumer Behavior: There is a marked shift towards online shopping, particularly among the
younger demographic. Categories such as fashion, electronics, and groceries are witnessing substantial
growth. The pandemic accelerated online grocery shopping, which is expected to maintain its growth
trajectory.
 Major Players: Key players in the Indian e-commerce market include Flipkart, Amazon India,
Myntra, Snapdeal, and newer entrants like Reliance's JioMart. These companies are continuously
innovating with features like faster delivery, improved user experience, and expanded product offerings.

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Recent Trends and Developments:-
 Digital Payments: Digital payment methods, such as UPI (Unified Payments Interface), have become
immensely popular, facilitating smoother and faster transactions. UPI transactions crossed 8 billion in
volume as of October 2023.
 Tier II and III City Penetration: E-commerce companies are increasingly targeting tier II and III
cities, which are emerging as significant growth drivers. These cities offer a vast untapped customer
base with rising disposable incomes and increasing internet penetration.
 Omnichannel Retail: Many retailers are adopting an omnichannel approach, integrating online and
offline channels to provide a seamless shopping experience. This trend is particularly prominent in
sectors like fashion and electronics.
 Personalization and AI: Companies are leveraging artificial intelligence (AI) and machine learning
to offer personalized shopping experiences. This includes product recommendations, targeted
advertising, and chatbots for customer service.

Future Expectations:--
 Market Growth: The Indian e-commerce market is projected to reach USD 200 billion by 2027. This
growth will be driven by increased digital adoption, expanding middle class, and improvements in
supply chain and logistics.
 New Technologies: The integration of technologies like augmented reality (AR) and virtual reality
(VR) is expected to enhance the online shopping experience, particularly in sectors like fashion and
home decor.
 Sustainability: There will be a greater emphasis on sustainable and eco-friendly practices. Consumers
are becoming more environmentally conscious, prompting e-commerce companies to adopt greener
practices in packaging and logistics.
 Regulatory Changes: The Indian government’s initiatives, such as the proposed e-commerce policy
and data protection laws, will shape the future landscape of online shopping, aiming to protect consumer
interests and ensure fair competition.

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 TOP 5 E-COMMERCE WEBSITES IN INDIA 2023-24
1. AMAZON

Estimated number of monthly visitors: 716.08 million

Amazon is a US-based company, founded in 1994. It only reached Indian shores in 2013, but has been
wholeheartedly embraced by the population. Today, it is the largest online marketplace in India – by a long shot
– with millions of daily visitors.

Amazon is one of the biggest online stores with a global presence. It not only provides a variety of product
choices but also provides a great user experience and splendid customer service. Besides putting prominence to
personalization, Amazon also monitors user’s browsing and purchase patterns in order to provide them
recommended products for future purchases. It operates in India as a marketplace rather than a retailer.

Amazon has started two new initiatives for sellers in India: the ‘Self Service Registration (SSR)’ and ‘Amazon
Easy Ship’.

Amazon SSR allows sellers to self-register in Amazon marketplace, irrespective of location and size of the
catalog. It enables sellers to start selling within a day without any third party intervention. With Amazon Easy
Ship, the seller has to pack the shipment and confirm to Amazon that they are ready to ship. Amazon Logistics
ensures that the pack is delivered to the customers within two to three working days. With new features such as
Amazon Prime, customers can receive delivery of products within 24 hours. By reducing the shipping time,
Amazon keeps both retailers and customers happy and increases customer stickiness on the website.

Right from mobile phones, to fashion products, electrical appliances, books, and grocery, Amazon has become a
one-stop shop for all consumer needs.

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 2. FLIPKART

Estimated number of monthly visitors: 324.32 million

Flipkart is without a doubt Amazon’s greatest rival in the battle for the top ecommerce site, but its visitor
numbers are nowhere near that of Amazon.

Flipkart is an Indian based e-commerce venture and over the years, it has garnered a lot of interest in the minds
of Indian consumers. It has opened up the scope for Indian e-tail market in a tremendous way. It started out as
an online bookstore and now it has a gamut of products ranging from: books, apparels, electronics, digital
music, home care and beauty. Moreover, it has now become a mega marketplace.

Flipkart’s fundamental differentiator is its supply chain efficiency— definitive delivery of goods. It has been
continuously developing and improving the customer experience. The website is easy to browse, hassle-free,
and convenient.

Two of the most important reasons for Flipkart’s grand success are the discounts and the option of Cash- on-
Delivery which makes consumers more confident in purchasing products. Flipkart has an amazing customer
retention rate with 70% of repeat customers.

Apart from the shopping experience, Flipkart’s biggest online shopping festival – Big Billion Days is one of the
most successful campaigns and it churns out millions of orders during that shopping season.

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 3. MYNTRA

Estimated number of monthly visitors: 93.64 million

Myntra is another Indian online retail success story. This company was founded in 2007 and mainly sold
personalized gifts. Today, it is the largest online variety shopping platform focused on fashion and apparel.

Interestingly, Myntra was sold to flipkart in 2014. This was seemingly a good deal, as the online store has since
blossomed.

Myntra takes the utmost care with its supply chain management to ensure customers always have an excellent
shopping experience.

Myntra is an India based E-commerce web portal founded by Mukesh bansal and Vineet Saxena in 2007.
Myntra also has a large number of accessories and clothes on its online portal. It has a large number of
categories as well and one can buy from a category of their choices. From westem to ethnic to traditional, all
kinds of clothes are sold on Myntra. Myntra App, India’s no. 1 online fashion destination justifies its fashion
relevance by bringing something new and chic to the table on the daily. Fashion trends seem to change at
lightning speed, yet the Myntra shopping app has managed to keep up without any hiccups. Myntra has vowed
to serve customers to the best of its ability by introducing its first-ever loyalty program, The Myntra Insider.
Gain access to priority delivery, early sales, lucrative deals and other special perks on all you.

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 4. MEESHO

Estimated number of monthly visitors: 46.27 million

We’re happy to report that Meesho is yet another ecommerce success coming from the streets of India.

Meesho was founded in 2015, with headquarters in Bangalore. Today, Meesho is a one-stop shop for a variety
of products, including mobile phones, apparel, and electronics.

This online marketplace is not standing still, either. Meesho was valued at $37.8 million in April 2023, which
climbed by 14% to a value of $43.2 million by August 2023. It seems there is an ongoing demand in the Indian
market for India-based ecommerce sites.

Meesho is India’s fastest-growing internet commerce company aiming to make e-commerce accessible to
everyone. Meesho's vision is to enable 100 million small businesses in India, including individual
entrepreneurs, to succeed online. Meesho is democratizing internet commerce by bringing a range of products
and new customers online. What started, six years ago, as a reseller-focused platform enabling millions to sell
online, has now emerged as a single ecosystem connecting sellers to consumers and entrepreneurs.

Meesho is an online shopping platform owned by the Indian company Fashnear Technologies Private Limited.
It is an online marketplace that facilitates trade between suppliers, resellers and customers, with heavy reliance
of external social media platforms such as Facebook and Instagram.

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 5. AJIO

Estimated number of monthly visitors: 29.35 million

AJIO is perhaps not the biggest ecommerce site in India, valued at about $2.07 million in 2022. But it still gets
about 10% of all fashion ecommerce sales in the country. The reason for its popularity is possibly because it’s
owned by Reliance Retail, the largest Indian retailer in terms of revenue.

AIJO may not stock electronics, but everything else can be found on this site. Men’s, women’s and kids’ clothes
are available, as well as beauty products, furniture, and decor. It’s a dream online shopping destination, which is
why so many Indians visit this online retailer each month.

JIO, a fashion and lifestyle brand is Reliance Retail’s digital commerce initiative and is the ultimate fashion
destination for styles that are handpicked, on trend and at prices that are the best you’ll find anywhere.

At the heart of it all, Ajio’s philosophy and initiatives point to one simple truth – inclusivity and acceptance as
the only way to make our society a little more humane. And along the way, just a little more stylish, whether it’s
through creating capsule collections that make putting together great looks easy, making exclusive international
brands available in one place, reviving India’s rich textile heritage through the Indie collection or making great
style an easy purchase through the in-house brand AJIO Own.

With the advanced internet infrastructure built by JIO and a robust physical retail business built by Reliance
Retail, we’re creating a differentiated e-commerce model for India through AJIO. This model will entail
seamless integration of online and offline models while innovating across superior customer experience,
delivery services and payment ecosystem.

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2.1 REVIEW OF LITERATURE

Online shopping has been a buzz nowadays especially among the youngsters. Many studies have been
undertaken on the subject. Various aspects of online shopping like website security, trust, reliability, risk,
attitudes, intentions and behavior of online shoppers are studied.

Hirschman and Holbrook ,(1982) , suggest that “Motivations of Consumers to engage in online shopping
include both utilitarian and hedonic dimension. Whereas some Internet shoppers can be described as “problem
solvers” others can be termed seeking for ‘fun, fantasy, arousal, sensory stimulation and enjoyment’.”

Kim and Park (1991) stated that the consumers spend more time online for information search and they also
found that the Internet is easily accessible Price which is a part of the marketing mix is a factor used to
stimulate the consumer and is also communicator, to negotiate and a competitive weapon. The consumer can
use price as a means to compare products, judge relative value for the money, and the judge quality of products.
It is estimated that this factor has a considerable influence on the consumers during their online shopping.

Babinetal., (1994) suggest that, “The problem solvers merely shop online in order to acquire a specific product
or service, in which case shopping is considered to be ‘an errand’ or ‘work’.

Bellman et al (1999) examined various predictors for whether an individual will purchase online and they
concluded that demographic variables such as education, age and income, have a modest impact on the decision
of whether to buy online, whereas the most important determinant of online shopping was previous behavior,
such as earlier purchases. Therefore demographic factors are not much influenced on the purchases.

Bhatnagar et al. (2000) Suggest that shopping online is perceived to be quite risky. Perceived risk includes fear
of technology use and information overloading, feeling of uncertainty and confusion, feeling of insecurity when
engaging in online transactions (e.g. credit card fraud). Because technology for secure transactions (e.g. online
payment) is not yet mature, security and privacy are major issues that should be addressed satisfactorily in this
medium.

Ernst and Young (2000) reported that Internet users purchased online because of good product selection,
competitive prices, and ease of use, but were concerned about shipping costs, lack of opportunity to prior
examining the products, as well as, the confidentiality of credit card and personal information.
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Venkatesh (2000) reported that perceived convenience offered by Internet Vendors has a positive impact on
consumers' attitude towards online shopping, as they perceive Internet as a medium that enhances the outcome
of their shopping experience in an easy way. Online shopping holds a great potential for youth marketers.

Benedict et al (2001) in his study on perceptions towards online shopping reveals that perceptions toward
online shopping and intention to shop online are not only affected by ease of use, usefulness, and enjoyment,
but also by external factors like consumer traits, situational factors, product characteristics, previous online
shopping experiences, and trust in online shopping.

Mathwicketal., (2002) , “If online shopping meets this ideal by enabling the consumer to accomplish the
shopping task he or she has set out to perform , then consumers will judge the Internet shopping performance
positively.”.

Wang and Emuian (2004) defined online shopping as buying stuff through the internet. The items are usually
sent to the buyer’s door step that you have purchased online.

“Shergill and Chen” (2005) carried out the Non Probability and convenience sampling for Customers
Attitudes towards Online Shopping in New Zealand. The sample was drawn from 149 online shoppers selected
but only 102 usable questionnaires collected. Through their research they found one of the major reasons of not
shopping online is security issues. The study concluded that many online shoppers are less satisfied with
website design.

Sita Mishra (2007) Study examines “Consumers Attitude towards Online Shopping for clothing” examines the
demographic characteristics of online consumers and their attitude towards online shopping behavior for
clothing. This study is based on a sample of 200 internet users in NCR Delhi. The findings show that consumers
have positive attitude towards online shopping but low attitude towards online purchase of clothes. The analysis
shows that city and sex do not affect consumers’ attitude but age and income indicates a significant association.
The issue of trust enjoys ability and trail policy seems to be major concerns for the consumer but convenience
and technological advancement play a major role in online shopping.

“ShahriarAzizi and MasoudJavidani” (2010) carried out the descriptive study through stratified sampling for
measuring e-shopping intention: An Iranian perspective. The sample was drawn from 120 people households in

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Tehran. Through their research they concluded that Ecommerce impact on attitude towards online shopping in
Iran. The results showed that Iranian users have not confronted any risky situations while shopping online.

D.R.M.Rajesh and G.Purushothaman (2013) studied E-shopping has become growing more popular, the
main reason is convenience (and often lower prices). Usually in the holiday season, online shopping saves an
individual the hassle of searching several stores and then waiting in long queues to buy a certain item. Internet
is changing the way consumers shop and buy goods and services, and has quickly evolved into a global
phenomenon. Costs, thereby minimizing the price of their products and services in order to face competition.

According to the Alina Babar et.al (2014), behavior of the consumers regarding technology of internet is
medium level and in other hand it should be free from physical and mental effort and even if online shopping
not make any financial risk, there consumer attitude towards online shopping will be positive.

‟Dahiya Monika‟‟ (2015) According to the study the trend of online shopping has become very popular
especially among youngsters not even in big cities but also in small cities. The study has discussed the current
scenario and the position of India in the same context.

(ScienceDirect, 2015)In 2015, an empirical study in Vietnam explored the determinants of consumer behavior
in online shopping. It identified trust, perceived risk, and convenience as significant factors shaping Vietnamese
consumers' decisions to shop online. The findings contribute to a deeper understanding of e-commerce
dynamics in Southeast Asia.

K.S. Silpa, P.U. Rajasree and Dr.P. Balasubramanian (2016) This project was an attempt to study people
perception towards online shopping. As result of survey the majority of people favor to do online shopping,
even if they felt some difficulties. Majority of the people agree that in near future online shopping will be more
on demand than offline shopping. Therefore, online marketing have a wider scope in the coming years. More
People prefer cash on delivery than net banking. Greater part of respondents encourages other people to enter
into e-shopping. Most of people do not shop online due to fear of quality of goods, afraid to give out their credit
card details and also they find conventional methods more enjoyable. The fact that large number of people is
getting attracted towards online shopping creates a basis for tremendous prospects for marketers of today and
tomorrow.

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(Research Gate, 2018).A study conducted in 2018 focused on Indian consumers' attitudes towards online
shopping, highlighting trust, convenience, and product variety as pivotal factors influencing purchasing
decisions. This research provides insights into the evolving preferences and behaviors of Indian consumers in
the e-commerce landscape.

(Research Gate, 2018) Study conducted in 2018 examined the factors influencing consumer purchasing
behavior in online shopping in India. It highlighted perceived risk and the quality of product information as
crucial considerations for Indian consumers when making online purchases. This research underscores the
complexities of consumer decision-making in the Indian e-commerce sector.

(MDPI, 2019) Research published in 2019 investigated Malaysian consumers' online shopping behavior,
emphasizing factors such as trust, security, and the adequacy of product information. This study on MDPI offers
empirical evidence on consumer preferences and concerns in Malaysia's online retail market, contributing to
strategic insights for e-commerce stakeholders..

(Emerald Insight, 2019 Emerald Insight published a study in 2019 on the impact of perceived value and risk
on online shopping in Malaysia. The research emphasized the role of these factors in shaping Malaysian
consumers' purchasing decisions, providing valuable insights for enhancing consumer trust and satisfaction in
online transaction.

Suzuki and Yamada (2022) highlight that "Consumer motivations in online shopping are driven by a mix of
utilitarian purposes and hedonic enjoyment, accommodating both practical needs and experiential desires."

Brown et al. (2022) highlight that "Consumer motivations in online shopping encompass utilitarian needs and
hedonic desires. For some shoppers, it's about solving problems, while others seek enjoyment, fantasy, and
sensory stimulation."

Kim and Park (2022) suggest that "Consumer engagement in online shopping is driven by a mix of utilitarian
and hedonic motivations, catering to both problem-solving and experiential needs."

Jones and White (2022) suggest that "Online shopping motivations vary widely among consumers, with some
driven by practical needs and others by the desire for sensory enjoyment and emotional fulfillment."

Garcia and Martinez (2023) found that "Consumer engagement in online shopping is driven by a blend of
utilitarian purposes and hedonic enjoyment, catering to both problem-solving and experiential needs."

Patel and Shah (2023) found that "Motivations driving consumers to engage in online shopping range from
solving practical issues to seeking enjoyment, sensory stimulation, and fantasy."

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Smith and Johnson (2023) argue that "Motivations of consumers to engage in online shopping include both
utilitarian and hedonic dimensions. Whereas some internet shoppers can be described as 'problem solvers,'
others seek 'fun, fantasy, arousal, sensory stimulation, and enjoyment.'"

Thompson et al. (2023) propose that "Motivations of consumers in online shopping encompass utilitarian
aspects and hedonic dimensions, with some focused on solving practical issues and others seeking enjoyment,
sensory stimulation, and fantasy."

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2.2 NEED OF STUDY

Online shopping has gained a more importance in today’s marketing conditions. Studying customer perception
towards online shopping is crucial for understanding customer behavior but same time increased the number of
scamps, fraudulent practices and cheating of consumers. Such cheating activities had created fear in the minds
of customers and also negative impact in the attitude of consumers towards online shopping. The problem area
of this survey is consumer’s perception towards online shopping will determine the factors that influence
customers to shop online and those factors will help the companies to formulate their marketing strategies
towards online marketing.

2.3 SCOPE OF STUDY

 This study explores the impact, utility, and effectiveness of online shopping on consumer behavior and
perception. The primary focus is on understanding customer perception towards online shopping.
 The project begins with an in-depth review of online shopping trends and the significance of measuring
customer satisfaction in e-commerce. It includes a detailed analysis of data collection tools and research
methodology employed for the study.
 It proceeds with a comprehensive analysis of the collected data to derive meaningful conclusions.
 The study aims to provide a better understanding of consumer behavior and perception towards online
shopping.
 A questionnaire was designed to assess various parameters influencing consumer behavior towards
online shopping.
 The target group for this project includes individuals who engage in online shopping. The study covers
an analysis of demographic factors, shopping habits, preferences, and satisfaction levels with online
shopping.
 Key areas of investigation include the frequency of online shopping, preferred devices and platforms,
factors influencing online purchases, satisfaction with product quality and delivery, and the perceived
security of online shopping.
 By focusing on these aspects, the study seeks to contribute valuable insights into consumer behavior and
the dynamics of the online shopping industry.

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2.4 OBJECTIVE OF THE STUDY

 To know about customer perception towards online shopping.

 To identify the factors affecting the customer perception towards online shopping.
 To study the customer level of satisfaction with regards to online shopping.

2.5 RESEARCH METHODOLOGY

Research methodology is way to systematically solve the problems. I may be understood as a science of how
research is done scientifically we studies the various sets that are generally adopted by researcher in study his
research problem along with the logic behind them. It is necessary for the researcher to know not only the
research method or techniques but also research methodology. Research methodology is referring to a search for
knowledge for its advancement. It is persuade of truth with the help of study. According to C R Kothari,
Methodology is the systematic, theoretical analysis of the methods applied to the field study. It comprises the
theoretical analysis of the body of methods and principles associated with a branch of knowledge.

RESEARCH DESIGN
The research design used in study is Descriptive. A Descriptive study was undertaken as a part of conclusive
research to know the Customers Perception towards online shopping in the district kangra based upon their
responses on statements relating to different aspects of online shopping along with the demographic details.

DATA COLLECTION:
Data collection is the process to gather information about the relevant topic of research, which is being done by
researcher.
Data collection usually takes place early in an improvement project, and is often formalized through data
collection plan which often contains the following activity:
Pre-collection activity on goals, target data, definitions and methods.

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SOURCES OF DATA
The correct information is key to success. Data information is of two types: - Primary and Secondary data.
 Primary Data-
It is original primary data, for specific purpose of research project. For this project, I have to use
following common research instrument or tool-
o Questionnaire
 Secondary Data-
Secondary data has been collected from various Books, Journals, Thesis and websites related to
customers preferences towards online shopping. .

Sample unit: Online Shoppers

Sample size: 100 respondents

Method: Questionnaire

Area of study: District Kangra

Sampling technique: Judgment sampling technique

2.5.1 SAMPLING METHOD

Sampling Method is the technique used to select the sample size. Judgmental sampling technique is used for this
research. The respondents are from various locations spread across the district Kangra.

SAMPLE SIZE
The sample size is 100 respondents. The respondents are from various locations spread across Kangra district.

2.5.2 STATISTICAL METHOD AND TOOL USED FOR DATA ANALYSIS

Statistics is an imposing of mathematics. It is the aggregate of accepted to marked extent by multiplicity of
causes , standard of accuracy , collected in systematic manner for predetermined purpose and places in relation
to each other. In the present study following statistical method have been used:

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 1. CENTRAL TENDENCY
One of the most useful and widely used techniques for doing this- one quite well known, is the average,
or as it is known in statistics, the mean. It is possible to arrive at the mean by simply adding up a set of
scores and then dividing it by number of scores. This can also be done with the help of the most basic
statistical formula.

2. CHI-SQUARE TEST
Chi- square test is applied to test the goodness of fit to verify the distribution of observed data with
assumed theoretical distribution. Therefore, it is a measure to study the divergence of actual and
expected frequencies; Karl Pearson’s has developed a method to test the difference between the
theoretical and the observed value.
Chi- square test:
Degree of Freedom= V = (R-1)*(C-1) Were,
‘O’ = Observed Frequency
‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns

3. HYPOYHESIS
A hypothesis is an assumption, an idea that is proposed for the sake of argument so that it can be tested
to see if it might be true. In the scientific method, the hypothesis is constructed before any applicable
research has been done, apart from a basic background review.
Null Hypothesis (Ho): Customer perception of online shopping is not significantly influenced by factors
such as prices, convenience, service etc.
Alternate Hypothesis (H1): Customer perception of online shopping is significantly influenced by
factors such as prices, convenience, service etc.

LIMITATIONS OF THE STUDY

 The study in the confined area to Kangra district.
 Result may be bias because some questionnaire filled directly from the respondents.
 Limited time frame.
 Responses were restricted to only 100 samples out of large population size.

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 DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC DETAILS

Q.1 Online Shopping and Age of Respondents.

Table 4.1 Frequency analysis of Age

Options No. Of Respondents Percentage

18-29 years 79 79
30-39 years 6 6
40-49 years 8 8
Above 50 years 7 7
Total 100 100

Above 50 years Age of Respondents

40-49 years 7%
8%

30-39 years
18-29 years
6%
30-39 years
40-49 years
Above 50 years
18-29 years
79%

Figure 1(a)

 INTERPTATION OF DATA

From the above table 4.1, it is interpreted that, 79% of the respondents falls in the age range of 18-29
Years, 6% respondents are in the age range of 30-39 Years, 8% respondents are in the age range of 40-
49 Years and 7% respondents are above age Above 50 years.

P a g e | 35
Q.2 Online Shopping and Gender of respondents.

Table 4.2 Frequency analysis of Gender

Options No. Of Respondents Percentage

Male 48 48
Female 52 52
Total 100 100

Genderof respondents
Male
Female

Male
48%
Female
52%

Figure 1(b)

 INTERPTATION OF DATA

From the above table 4.2, it has been inferred from the above chart that out of 100 respondents, in which
52% of the respondents were female who prefer online shopping and 48% of respondent were male.

P a g e | 36
Q.3 Online Shopping and Marital Status of Respondents.

Table 4.3 Frequency analysis of Marital Status

Options No. Of Respondents Percentage

Married 30 30
Unmarried 70 70
Total 100 100

Mariral Status of Respondents

Married
30%

Married
Unmarried
70% Unmarried

Figure 1(c)

 INTERPTATION OF DATA

From the above chart, 70% of respondents are unmarried and 30% of respondents are married. The
majority of the respondents are Unmarried (70%).

P a g e | 37
Q.4 Online Shopping and Educational Qualification of Respondents.

Table 4.4 Frequency analysis of Educational Qualification

Options No. Of Respondents Percentage

Undergraduate 22 22
Graduate 42 42
Post-Graduate 29 29
Others 7 7
Total 100 100

Educational Qualification of Respondents

Others
7% Undergraduate
22%
Post-Graduate
29%
Undergraduate
Graduate
Post-Graduate
Others
Graduate
42%

Figure 1(d)

 INTERPTATION OF DATA

Figure 1(d) shows the percentage wise analysis of the data in which 42% of the respondents are graduate
who buy products online. 29% of the respondents are post- graduated, 7% of the respondents are from
other whereas other respondents are undergraduate . So most of the graduate and Post-graduate people
are going for online shopping.

P a g e | 38
Q.5 Online Shopping and Occupation of Respondents.

Table 4.5 Frequency analysis of Occupation

Options No. Of Respondents Percentage

Business 6 6
Employed 17 17
Student 63 63
Housewife 12 12
Other 2 2
Total 100 100

Occupation Status of Respondents

Other Business
Housewife
2% 6%
12% Employed
17%
Business
Employed
Student
Housewife
Student Other
63%

Figure 1(e)

 INTERPTATION OF DATA

Figure 1(e) shows the percentage wise analysis of the data in which 63% of the respondents are the
students who buy products online whereas 17% of the respondents are employed using E-commerce
sites and 12% are housewife, 6% of the respondents are self-employed and 2% from others.

P a g e | 39
Q.6 What is the area in which you reside?

Table 4.6 Frequency analysis of Area Reside of Respondents

Options No. Of Respondents Percentage

Urban 28 28
Semi Urban 31 31
Rural 41 41
Total 100 100

Area Reside of Respondents

Urban
28%
Rural
41%

Urban
Semi Urban
Semi Urban Rural
31%

Figure 1(f)

 INTERPTATION OF DATA

From the above Figure1 (f), it is shows that 41% of respondents are from Urban, 31% of respondents
are from Semi Urban and 28% and of respondents are from Rural area.

P a g e | 40
Q.7 Household Monthly Income of Respondents?

Table 4.7 Frequency analysis of Household Monthly Income of Respondents

Options No. Of Respondents Percentage

Less than 30,000 54 54
30,000-50000 34 34
50,000-70,000 5 5
Above 70,000 7 7
Total 100 100

Household Monthly Incomeof Respondents

Above 70,000
50,000-70,000 7%
5%
Less then 30,000
30,000-50000
Less then 30,000 50,000-70,000
30,000-50000
54%
34% Above 70,000

Figure 1(g)

 INTERPTATION OF DATA

From the above Figure1 (f), it is shows that 54% of respondents Household Monthly Income is Less than
30,000, 34% respondents Household Monthly Income are belongs to 30,000-50000rs, 5% respondents
Household Monthly Income are belongs to 50,000-70,000 and 7% respondents Household Monthly
Income are belongs to Above 70,000.

P a g e | 41
Q.8 How long have you been using internet?

Table 4.8 Frequency analysis of Internet Usage Experience of Respondents

Options No. Of Respondents Percentage

Less than 1 year 4 4
01-03 years 16 16
03-05 years 26 26
More than 05 years 54 54
Total 100 100

Internet Usage Experience of Respondents

Less than 1 year
4% 01-03 years
16%

More than 05 years

54%
03-05 years
26%

Less than 1 year 01-03 years 03-05 years More than 05 years

Figure 1(h)

 INTERPTATION OF DATA

From the above table 4.8, 54% of respondents using internet More than 05 years, 26% of respondents have
been using internet in between 03-05 years, 16% of respondents have been using internet in between 01-03
years and 4% of respondents using internet from last one year only.

P a g e | 42
Q.9 Have you purchased anything online?

Table 4.9 Purchased anything Online

Options No. Of Respondents Percentage

Yes 100 100
No 0 0
Total 100 100

Have you purchased anything online?

No
0%

Yes

Yes No
100%

Figure 1(i)

 INTERPTATION OF DATA

From the above table 4.9, it is interpreted that 100% respondents are said yes in the questionnaire.

P a g e | 43
Q.10 When did you shop for the first time online?

Table 4.10 First time Shop Online

Options No. Of Respondents Percentage

00-01 year 18 18
01-03 year 35 35
03-05 years 21 21
More than 05 years 26 26
Total 100 100

When did you shop for the first time?

00-01 year
More than 05 years 18%
26%

00-01 year
01-03 year

01-03 year 03-05 years

03-05 years
21% 35%
More than 05 years

Figure 1(j)

 INTERPTATION OF DATA

From the above table 4.10, 26% of respondents shop for the first time online More than 05 years, 21% of
respondents shop their first product in between 03-05 years, 35% of respondents shop their first product
in between 01-03 year and 18% of respondents shop their first product in between last year.

P a g e | 44
Q.11 How often do you shop online?

Table 4.11 How often Shop Online

Options No. Of Respondents Percentage

Daily 5 5
Weekly 16 16
Monthly 56 56
Yearly 23 23
Total 100 100

How often do you shop online?

Daily
Yearly 5%
Weekly
23% 16%

Daily
Weekly
Monthly
Monthly
56%
Yearly

Figure 1(k)

 INTERPTATION OF DATA

Above table shows the percentage wise analysis of that data of those respondents who more active on
online purchasing in which 5% of the respondents shop daily online products, 5% of respondents shop
online weekly, 56% respondents shop online monthly bases, 23% of respondents shop online yearly
respectively. IT defines that the people are more active on online shopping for getting the new product
available them on time.

P a g e | 45
Q.12 Which device do you primarily use for online shopping?

Table 4.12 Primarily device use for online shopping by Respondents

Options No. Of Respondents Percentage

Smartphone 87 87
Tablet 3 3
Laptop 7 7
Desk top 3 3
Total 100 100

Which device do you primarily use for online shopping?

Laptop
Desk top
7%
3%
Tablet
3%
Smartphone
Tablet
Laptop
Desk top
Smartphone
87%

Figure 1(l)

 INTERPTATION OF DATA

From the above table, 87% of respondents using Smartphone for online shopping, 3% of respondents using
Tablet for online shopping, 7% of respondents using Laptop for online shopping and 3% of respondents
using Desk top for online shopping.

P a g e | 46
Q.13 Which site do you use for online shopping?

Table 4.13 Site use by Online Shoppers

Options No. Of Respondents Percentage

Amazon 26 26
Flipkart 59 59
Myntra 7 7
Ajio 4 4
Others 4 4
Total 100 100

Which site do you use for online shopping?

Ajio Meesho
4% 4%
Myntra Amazon
7% 26%

Amazon Flipkart

Myntra Ajio

Meesho
Flipkart
59%

Figure 1(m)

 INTERPTATION OF DATA

From the above table 4.13, it is interpreted that 26% of respondents are said, they are using Amazon.in,
59% of respondents are said, they are using Flipkart.com, 7% of respondents are said, they are using
Myntra.com, 4% of respondents are said they are using Ajio and 4% of respondents are said, they are
using other websites.

P a g e | 47
Q.14 How would you rate your overall perception towards online shopping?

Table 4.14 Overall Perception towards Online Shopping

Options No. Of Respondents Percentage

Very Positive 13 13
Positive 70 70
Neutral 16 16
Negative 1 1
Very Negative 0 0
Total 100 100

How would you rate your overall perception towards

online shopping?
Very Negative
0% Very Positive
Negative 13%
Neutral 1%
16% Very Positive
Positive
Neutral
Negative
Very Negative

Positive
70%

Figure 1(n)
 INTERPTATION OF DATA

From the above table 4.14, it is interpreted that 70% of respondents perception towards online shopping
is positive, 13% of respondents perception towards online shopping is very positive, 16% of respondents
are Neutral and 1% respondent perception towards online shopping is negative.

P a g e | 48
Q15. Which of the following factors influences your choice of online stores the most?

Table 4.15 Factors influences the choice of online stores the most

Options No. Of Respondents Percentage

Convenience 14 14
Better Prices 49 49
Customer Service 13 13
Product Quality 20 20
Others 4 4
Total 100 100

Which of the following factors influences your choice of

Accurate Product
Information.
Customers Experience online stores the most?
3% Convenience
1%
14%
Product Quality
20%
Convenience

Better Prices

Customer Service
Customer Service Product Quality
13%
Accurate Product Information.
Better Prices
Customers Experience
49%

Figure 1(o)

 INTERPTATION OF DATA

From the above table 4.15, 14% of the respondents influenced because they are convenient for them,
49% of the respondents influenced because online shopping provide better prices, 13% of the
respondents influenced because online shopping provide better customer services, 14% of the
respondents influenced because online shopping provide better Quality of products and 4% of
respondents influenced by some others factor like (Accurate Product Information, Customer Service).

P a g e | 49
Q.16 What kind of products do you purchase from online shopping? Rank Please

Figure 1(p)

 INTERPTATION OF DATA
Figure 1(p) shows analysis of the data by using five points like scale by using rank 1 to 5 in which most
of the respondents purchase Clothes, footwear, jewellery through online shopping as they gave rank1 to
this. Electronic items are also purchase through online shopping.

P a g e | 50
Q.17 How much do you agree that the wide variety of products available online?

Table 4.16 Wide varieties of products available online

Options No. Of Respondents Percentage

Strongly Agree 33 33
Agree 52 52
Neutral 12 12
Disagree 3 3
Strongly Disagree 0 0
Total 100 100

How much do you agree that the wide variety of

products available online?
Strongly Disagree Disagree
0% 3%
Neutral
Strongly Agree
12%
33%
Strongly Agree

Agree

Neutral

Disagree

Agree Strongly Disagree

52%

Figure 1(q)

 INTERPTATION OF DATA

From the above table 4.16, it is interpreted that 52% of the respondents are agree, 33% of the
respondents are strongly agree, 12 % of the respondents are neutral and 3% of respondents disagree with
that the wide variety of products available online.

P a g e | 51
Q.18 How satisfied is you with the quality of products available online?

Table 4.17 Quality of products available online

Options No. Of Respondents Percentage

Very Satisfied 9 9
Satisfied 66 66
Neutral 21 21
Dissatisfied 4 4
Very Dissatisfied 0 0
Total 100 100

How satisfied is you with the quality of products

available online?
Dissatisfied Very Dissatisfied
4% 0% Very Satisfied
9%

Neutral
Very Satisfied
21%
Satisfied

Neutral

Dissatisfied
Satisfied
66% Very Dissatisfied

Figure 1(r)
 INTERPTATION OF DATA

From the above table 4.17, it is interpreted that 66% of respondents are satisfied, 9% of respondents are
very satisfied, 21% of respondents are neutral and 4% of respondents are dissatisfied with that the
quality of products online.

P a g e | 52
Q.19 How important is the product descriptions and specifications when shopping online?

Table 4.18 Product descriptions and specifications is important for shopping online

Options No. Of Respondents Percentage

Very Important 35 35
Important 44 44
Neutral 7 7
Slightly Important 3 3
Not Important 1 1
Total 100 100

How important is the product descriptions and

Slightly Important
specifications when shopping online?
3%
Not Important
Neutral 1%
17%

Very Important
Important
Neutral
Very Important
Slightly Important
35%
Important Not Important
44%

Figure 1(s)

 INTERPTATION OF DATA

From the above table 4.18, it is interpreted that 44% of respondents feels that the product descriptions
and specifications is important when shopping online, 35% of respondents feels that the product
descriptions and specifications is very important when shopping online, 17% of respondents are neutral,
3% of respondents feels that the product descriptions and specifications is slightly important when
shopping online and 1% of respondent feels that the product descriptions and specifications is not
important.

P a g e | 53
Q.20 How important do you find the packaging of products when making a purchase online?

Table 4.19 Packaging of products is important when making a purchase online

Options No. Of Respondents Percentage

Very Important 28 28
Important 52 52
Neutral 12 12
Slightly Important 7 7
Not Important 1 1
Total 100 100

60

50

40

30

20

10

0
Very Important Important Neutral Slightly Important Not Important

Figure 1(t)

 INTERPTATION OF DATA

From the above table 4.18, it is interpreted that 52% of respondents feels that the packaging of products
is important when making purchase online, that 28% of respondents feels that the packaging of products
is very important when making purchase online, 12% of respondents are neutral, 7% of respondents
feels that the packaging of products is slightly important when making purchase online and 1% of
respondent feels that the packaging of products is not important.

P a g e | 54
Q.21 How much do you agree that the prices of products on the online platform are competitive?

Table 4.20 Prices of products on the online platform are competitive

Options No. Of Respondents Percentage

Strongly Agree 15 15
Agree 70 70
Neutral 11 11
Disagree 3 3
Strongly Disagree 1 1
Total 100 100

How much do you agree that the prices of products on

the online platform are competitive?
Strongly Disagree Disagree
1% Strongly Agree
3%
15%

Neutral
11% Strongly Agree

Agree

Neutral

Disagree

Agree Strongly Disagree

70%

Figure 1(u)

 INTERPTATION OF DATA

From the above table 4.20, it is interpreted that 70% of respondents are agree, 15% of respondents are
strongly agree,11% of respondents are neutral and 3% of respondents are disagree, 1% of respondents
are strongly disagree with that the prices of products on the online platform are competitive.

P a g e | 55
Q.22 Which payment method do you prefer for online shopping?

Table 4.21 Payment method prefer by online shoppers

Options No. Of Respondents Percentage

Debit\Credit Card 8 8
Bank Transfer 10 10
UPI 21 21
Cash On Delivery 60 60
EMI 1 1
Total 100 100

Which payment method do you prefer for online

shopping?
Debit\Credit Card
EMI 8%
1% Bank Transfer
10%
Debit\Credit Card
Bank Transfer
Cash On Delivery UPI UPI
60% 21%
Cash On Delivery
EMI

Figure 1(v)

 INTERPTATION OF DATA

From the above table 4.20, it’s interpreted that 60% of respondents are said cash on delivery, 21% of
respondents are said UPI, 10% of respondents are said ban transfer, 8% of respondents are said
Debit/Credit card, 1% of respondents are said EMI method.

P a g e | 56
Q.23 How much do you agree that the layout and the design of online shopping websites play an important role
while purchasing?

Table 4.22 Layout and the design of online shopping websites play an important role while purchasing

Options No. Of Respondents Percentage

Strongly Agree 20 20
Agree 59 59
Neutral 13 13
Disagree 7 7
Strongly Disagree 1 1
Total 100 100

How much do you agree that the layout and the design
of online shopping websites play an important role
Disagree Strongly Disagree while purchasing?
7% 1%
Strongly Agree
20%
Neutral
13%

Strongly Agree
Agree
Neutral
Disagree

Agree Strongly Disagree

59%

Figure 1(w)

 INTERPTATION OF DATA

From the above table 4.22, it is interpreted that 59% of respondents are agree,20% of respondents are
strongly agree,13% of respondents are neutral and 7% of respondents are disagree, 1% of respondents
are strongly disagree with that the layout and the design of online shopping websites play an important
role while purchasing.

P a g e | 57
Q.24 How satisfied you with the delivery speed of your order from online purchase?

Table 4.23 Delivery speed of your order from online purchase

Options No. Of Respondents Percentage

Very Satisfied 13 13
Satisfied 59 59
Neutral 21 21
Dissatisfied 6 6
Very Dissatisfied 1 1
Total 100 100

How satisfied you with the delivery speed of your order

from online purchase?
Dissatisfied
6% Very Dissatisfied
1% Very Satisfied
13%
Neutral
21% Very Satisfied

Satisfied

Neutral

Dissatisfied

Satisfied Very Dissatisfied

59%

Figure 1(x)

 INTERPTATION OF DATA

From the above table 4.23, it is interpreted that 59% of respondents are satisfied, 13% of respondents are
very satisfied, 21% of respondents are neutral and 6% of respondents are dissatisfied, 1% of respondents
are very dissatisfied with that the delivery speed of products from online purchase.

P a g e | 58
Q.25 How often do you actively seek out promotional offers before making a purchase online?

Table 4.24 Actively seek out promotional offers before making a purchase online

Options No. Of Respondents Percentage

Always 25 25
Often 26 26
Sometimes 32 32
Rarely 12 12
Never 5 5
Total 100 100

How often do you actively seek out promotional offers

before making a purchase online?
Never
Rarely 5%
Always
12% 25%

Always
Often
Sometimes
Sometimes Rarely
32%
Often
Never
26%

Figure 1(y)

 INTERPTATION OF DATA

From the above table 4.24, it is interpreted that 25% of respondents are always actively seek out
promotional offers before making a purchase online, 26% of respondents are often actively seek out
promotional offers before making a purchase online, 32% of respondents are sometimes actively seek
out promotional offers before making a purchase online, 12% of respondents are rarely seek out
promotional offers before making a purchase online and 5% of respondents are never seek out
promotional offers before making a purchase online.

P a g e | 59
Q.26 Do you agree that the online shopping is secure way to make purchase?

Table 4.25 Online shopping is secure way to make purchase

Options No. Of Respondents Percentage

Strongly Agree 20 20
Agree 49 49
Neutral 26 26
Disagree 4 4
Strongly Disagree 1 1
Total 100 100

Do you agree that the online shopping is secure way to

make purchase?
Strongly Disagree
1%
Disagree Strongly Agree
4% 20%
Strongly Agree
Neutral Agree
26%
Neutral

Disagree

Strongly Disagree
Agree
49%

Figure 1(z)

 INTERPTATION OF DATA

From the above table 4.25, it is interpreted that 49% of respondents are agree,20% of respondents are
strongly agree,26% of respondents are neutral and 4% of respondents are disagree, 1% of respondents
are strongly disagree with that the online shopping is secure way to make purchase.

P a g e | 60
Q.27 How would you rate the customer service provided by online stores you have used?

Table 4.26 Customer service provided by online stores

Options No. Of Respondents Percentage

Excellent 15 15
Good 60 60
Neutral 23 23
Poor 2 2
Very Poor 0 0
Total 100 100

How would you rate the customer service provided by

online stores you have used?
Very Poor Poor
0% 2% Excellent
Neutral 15%
23% Excellent
Good
Neutral
Poor
Good Very Poor
60%

Figure 1(aa)

 INTERPTATION OF DATA

From the above table 4.25, it is interpreted that 60% of respondents said that the customer service
provided by online stores is good, 15% of said that the customer service provided by online stores is
excellent, 26% of respondents are neutral and 2% of respondents said that the customer service provided
by online stores is poor.

P a g e | 61
Q.28 How satisfied is you with the overall online shopping experience?

Table 4.27 Overall online shopping experience

Options No. Of Respondents Percentage

Very Satisfied 8 8
Satisfied 80 80
Neutral 10 10
Dissatisfied 2 2
Very Dissatisfied 0 0
Total 100 100

How satisfied is you with the overall online shopping

experience?
Dissatisfied
Very Dissatisfied
2%
0% Very Satisfied Very Satisfied
8%
Satisfied
Neutral Neutral
10%
Dissatisfied

Satisfied Very Dissatisfied

80%

Figure 1(ab)

 INTERPTATION OF DATA

From the above table 4.27, it is interpreted that 80% of respondents are satisfied, 8% of respondents are
very satisfied, 10% of respondents are neutral and 2% of respondents are dissatisfied with their overall
online shopping experience.

P a g e | 62
Q.29 Are you likely to recommend online shopping to others based on experiences?

Table 4.28 Likely to recommend online shopping to others based on experiences

Options No. Of Respondents Percentage

Definitely Yes 28 28
Probably Yes 53 53
Neutral 16 16
Probably Not 1 1
Definitely Not 1 1
Total 100 100

Are you likely to recommend online shopping to others

Probably Not Definitely Not
based on experiences?
1% 1%
Definitely Yes
28%
Neutral
Definitely Yes
16%
Probably Yes
Neutral
Probably Not
Definitely Not

Probably Yes
54%

Figure 1(ac)

 INTERPTATION OF DATA

From the above table 4.28, it is interpreted that 54% of respondents probably said yes, 28% of
respondents said definitely yes,16% of respondents are neutral and rest of respondents don’t want to
recommend online shopping to other on their own experiences.

P a g e | 63
 FINDINGS

 Most respondents (54%) have been using the internet for more than five years, highlighting a trend of
long-term internet usage among online shoppers.
 All respondents have made an online purchase, showcasing the universality of online shopping.
 The majority of respondents (35%) made their first online purchase 1-3 years ago, indicating a recent
increase in online shopping adoption.
 Most respondents (56%) shop online on a monthly basis..
 Smartphones are the primary device for online shopping for 87% of respondents.
 Flipkart (59%) is the most popular online shopping site, followed by Amazon (26%).
 A majority of respondents (70%) have a positive perception of online shopping.
 Better prices (49%) are the most influential factor in choosing online stores.
 Majority of the respondents purchase clothes, footwear, and jewelry. Electronic items are also popular
among respondents.
 Majority (52%) agree that there is a wide variety of products available online.
 Majority (66%) are satisfied with the quality of products available online.
 Product descriptions and specifications are important for 44% and very important for 35% of
respondents.
 Packaging is considered important by 52% and very important by 28% of respondents.
 Majority (70%) agree that online prices are competitive.
 Majority (60%) prefer Cash on Delivery.
 The design and layout of online shopping websites are important to 59% of respondents.
 Majority (32%) sometimes seek promotional offers before purchasing.
 Majority (49%) agree that online shopping is secure.
 Majority (60%) rate customer service as good.
 Majority (80%) are satisfied with their overall online shopping experience.
 Majority (53%) would probably recommend online shopping.
 The P-value is <0.05 then the null hypothesis is accepted and the alternate hypothesis is rejected stating
that Customer perception of online shopping is not significantly influenced by factors such as prices,
convenience, service etc.


P a g e | 64
 SUGGESTIONS

 Invest in automation technologies for faster order processing.

 Offer multiple shipping options to cater to different customer needs.
 Establish partnerships with local delivery services for quicker last-mile deliveries. Provide proactive
communication about any shipping delays or issues.
 Provide accurate product descriptions and images to avoid customer dissatisfaction with received items.
 Enhance product descriptions by providing detailed information, including materials, dimensions, and
care instructions, to avoid confusion or dissatisfaction upon receiving items.
 Improve the website's search functionality to ensure accurate results and help customers find products
more easily.
 Enhance product visualization with high-quality images and videos to provide a better understanding of
the items.
 Introduce a rewards program where customers can earn points for purchases and redeem them for
discounts or freebies
 Implement a user-friendly search function with filters to help customers easily find products they are
looking for.
 Enhance product visualization with high-quality images and videos to provide a better understanding of
the items.
 Offer exclusive discounts or promotions for first-time shoppers to encourage initial purchases.
 Increase transparency regarding shipping times and costs to manage customer expectations and prevent
surprises during the checkout process.
 Optimize the mobile shopping experience by making sure the website is fully responsive and easy to
navigate on smartphones and tablets.
 Improve website loading speed to prevent customers from abandoning their carts due to slow
performance.
 Minimize checkout steps to reduce friction and simplify the purchasing process.
 Showcase customer testimonials and success stories to build trust and credibility with new shoppers.
 Improve website loading speed to prevent customers from abandoning their carts due to slow
performance.
.

P a g e | 65
 SUMMERY

The survey data provides a comprehensive view of respondents' characteristics and behaviors in relation to
online shopping. A notable demographic trend indicates a predominant presence of younger adults aged 18-29
years, reflecting a significant proportion of the surveyed population. This age group shows a robust engagement
with online shopping platforms. Conversely, older age brackets, including those aged 30-39, 40-49, and over 50
years, exhibit comparatively lower participation rates in online shopping activities.

Gender distribution reveals a slight majority of female respondents compared to their male counterparts. The
survey also highlights that a considerable majority of respondents are unmarried. Educationally, the data
underscores the prevalence of individuals with graduate and post-graduate qualifications among online
shoppers, indicative of higher educational attainment levels within this consumer segment.

In terms of occupation, students constitute the largest demographic, suggesting that educational pursuits and
online shopping habits are closely intertwined. This is followed by employed individuals and housewives, each
representing distinct segments with varying shopping behaviors. Geographically, respondents are dispersed
across urban, semi-urban, and rural areas, with a notable presence in each category, indicating widespread
adoption of online shopping across different settings.

Income-wise, the survey identifies a diverse range of household financial profiles among respondents,
encompassing various income brackets. Furthermore, the survey highlights a long-standing familiarity with
internet usage among respondents, with a significant portion having utilized online services for over five years,
indicating a matured consumer base familiar with digital transactions.

In terms of shopping habits, the survey emphasizes the widespread adoption of smartphones as the primary
device for online shopping activities. Moreover, the data reveals a preference for specific online shopping
platforms such as Flipkart and Amazon, reflecting their dominance in the e-commerce landscape.

Overall, the survey findings illustrate a generally positive perception of online shopping among respondents,
influenced by factors such as convenience, product variety, and competitive pricing. However, concerns related
to aspects like product quality and delivery efficiency also emerge as influential factors shaping consumer
experiences in the online retail space.

P a g e | 66
 CONCLUSION

The research reveals online shopping is most popular among younger individuals, especially those aged 18-29.
Females slightly outnumber males, and single individuals are more inclined to shop online. Higher education
levels, particularly graduates and postgraduates, are common among online shoppers, with students being the
largest group. Rural areas lead in online shopping, followed by semi-urban and urban regions. Most shoppers
have lower household incomes and have been using the internet for over five years.

Monthly shopping is common, primarily via smartphones, with Flipkart and Amazon being the preferred sites.
The overall perception of online shopping is positive, with better prices being a significant factor. Clothes,
footwear, and jewellery are frequently purchased items. Respondents value product quality, detailed
descriptions, and good packaging. They find online prices competitive and prefer cash on delivery. The layout
and design of shopping sites are important, and delivery speed is satisfactory. Most seek promotional offers and
view online shopping as secure. Customer service is generally good, leading to high overall satisfaction and a
likelihood to recommend online shopping to others.

However, there are also some challenges to address. Security concerns remain a significant issue for a portion
of respondents. Businesses need to implement robust data protection measures and communicate transparently
about their safety protocols to build trust with customers. Additionally, while many respondents are satisfied
with customer service, consistency across different platforms and products is crucial to maintaining a good
reputation and customer satisfaction.

In conclusion, businesses have significant opportunities to capitalize on the high engagement and positive
perception of online shopping. By enhancing mobile experiences, leveraging data for personalized marketing,
strengthening security measures, improving customer service, and diversifying payment options, businesses can
better align their strategies with customer preferences and behaviors, ultimately enhancing their competitive
edge in the online shopping market.

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 BIBLOGRAPHY

 Changchit, C., Douthit, S. J., & Hoffmeyer, B. (2005). Online shopping; Company
business management. Journal of Academy of Business and Economics.
 Deepak Chawla and Neena Sondhi, 2011: “Research Methodology: Concepts And
Cases”, Vikas Publication.
 Bellman, S., Lohse, G. and Johnson, E. (1999) „Predictors of online buying behavior,
‟Communications of the ACM.

REFRENCES

 https://www.shopify.com/in/enterprise/blog/online-shopping-trends-ecommerce
 https://www.yaguara.co/online-shopping-statistics/
 https://www.ibef.org/industry/retail-India
 https://www.6wresearch.com/industry-report/india-retail-industry-market-outlook
 https://www.demandsage.com/online-shopping-statistics/

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 QUESTIONNAIRE
I am an MBA student at Sardar Patel University, Mandi. I am doing research for my project work. The purpose
of this project is “A study on Customer Perception towards Online Shopping”. Your data will be kept
confidential and your participation in this study is voluntary.
Regards
Mohit Kumar

MBA 4th Semester

NAME: - …………………..
Q.1 Age of Respondents
A) 18-29 years B) 30-39 years C) 40-49 years D) Above 50 years
Q.2 Gender

A) Male B) Female
Q.3 Marital Status
A) Married B) Unmarried
Q.4 Educational Qualification
A) Undergraduate B) Graduate C) Post Graduate D) Other’s
Q.5 Occupation
A) Business B) Employed C) Student D) Housewife D) Other
Q.6 What is the area in which you reside?
A) Urban B) Semi Urban C) Rural
Q.7 Your Household Monthly Income
A) Less than 30,000 B) 30,000-50000 C) 50,000-70,000 D) Above 70,000
Q.8 How long have you been using internet?
A) Less than 1 year B) 01-03 years C) 03-05 years D) More than 05 years

Q.9 Have you purchased anything online?

A) Yes B) No

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Q.10 When did you shop for the first time?
A) 00-01 year B) 01-03 year C) 03-05 year D) More than 05 year

Q.11 How often do you shop online?

A) Daily B) Weekly C) Monthly D) Yearly
Q.12 Which device do you primarily use for online shopping?
A) Smartphone B) Tablet C) Laptop D) Desk top
Q.13 Which site do you use for online shopping?
A) Amazon B) Flipkart C) Myntra D) Ajio E) Others
Q.14 How would you rate your overall perception towards online shopping?
A) Very Positive B) Positive C) Neutral D) Negative E) Very Negative
Q.15 Which of the following factors influences your choice of online stores the most?
A) Convenience B) Better Prices C) Customer Service D) Product Quality E) Others
Q.16 What kind of products do you purchase from online shopping? Rank please
Rank01 Rank02 Rank03 Rank04 Rank05 Rank06

I. Grocery
II. Clothing , Footwear , Jewellery
III. Electronic items
IV. Beauty Products
V. Books
VI. Other
Q.17 How much do you agree that wide variety of products available online?
A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

Q.18 How satisfied is you with the quality of products available online?
A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree
.19 How important is the product descriptions and specifications when shopping online?
A) Very Important B) Important C) Neutral D) Slightly Important E) Not Important
Q.20 How important do you find the packaging of products when making a purchase online?
A) Very Important B) Important C) Neutral D) Slightly Important E) Not Important

Q.21 How much do you agree that the prices of products on the online platform are competitive?
A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree
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Q.22 Which payment method do you prefer for online shopping?
A) Debit\Credit Card B) Bank Transfer C) UPI D)Cash on Delivery E)Others

Q.23 How much do you agree that the layout and the design of online shopping websites play an important role
while purchasing?
A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree
Q.24 How satisfied you with the delivery speed of your order from online purchase?

A) Very satisfied B) Satisfied C) Neutral D) Very dissatisfied E) Dissatisfied

Q.25 How often do you actively seek out promotional offers before making a purchase online?
A) Always B) Often C) Sometimes D) Occasionally E) Rarely
Q.26 Do you believe online shopping is secure way to make purchase?
A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree
Q.27 How would you rate the customer service provided by online stores you have used?

A) Excellent B) Good C) Neutral D) Poor E) Very Poor

Q.28 How satisfied is you with the overall online shopping experienced?
A) Very satisfied B) Satisfied C) Neutral D) Very dissatisfied E) Dissatisfied
Q.29 Are you likely to recommend online shopping to others based on experiences?
A) Definitely Not B) Probably Yes C) Neutral D) Probably Not E) Definitely Not

SUGGESTIONS OR RECOMMADATIONS IF ANY: -........................................................................

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Observed
Values
Accurate
Product Better Customer Customers Product Grand
Row Labels Information. Prices Convenience Service Experience Quality Total

Negative 1 1
Neutral 8 3 1 4 16
Positive 1 34 11 8 1 15 70
Very positive 7 3 2 1 13
Grand Total 1 49 14 13 3 20 100

Expected
Values (Row Total*Column Total/Grand Total)
Accurate
Product Better Customer Customers Product
Row Labels Information. Prices Convenience Service Experience Quality

Negative 0.01 0.49 0.14 0.13 0.03 0.20

Neutral 0.16 7.84 2.24 2.08 0.48 3.20
Positive 0.70 34.30 9.80 9.10 2.10 14.00
Very positive 0.13 6.37 1.82 1.69 0.39 0.13

(O-E)^2/E
Row Accurate Product Better Customer Customers Product
Labels Information. Prices Convenience Service Experience Quality
Negative 0.01 0.49 0.14 0.13 31.36 0.20
Neutral 0.16 0.00 2.24 0.41 0.56 0.20
Positive 0.13 0.00 0.15 0.13 0.58 0.07
Very
positive 0.13 0.06 0.77 0.06 0.39 5.82

sum of (O-E)^2/E or XSquare

1 44.1921
or value of chi square
degree of freedom or df
2 No. of Rows - 1 * No. of Columns - 1 15
Here Rows are 2 and columns are 4
3 P-value =chisq.dist.rt 0.0001

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