A STUDY OF CONSUMER BEHAVIOR

WITH RESPECT TO E-COMMERCE

WEBSITES

Project Guide :
Prof. Parnika Jha
 
Presented By :
Nischal Chudasama 018
Bhagyesh Takoliya 111
Introduction
 E-Commerce:

Electronic Commerce is a general concept covering any form of

business transactions or information exchange executed using
information and communication technology.

It can be between companies, between companies and their

customers or between companies and business administrations.
Types of E-Commerce

 Business-to-business B2B: Transactions between business

partners

 Business-to-consumer B2C: Transactions between

business organizations and individual shoppers

 Consumer-to-business C2B: Transaction in which

individuals sell products and services to business

 Consumer-to-consumer C2C: Transactions between

individual consumers
History of E-commerce
 1990: Tim Berners-Lee writes the first web browser,
WorldWideWeb, using a NeXT computer.

 1992: J.H. Snider and Terra Ziporyn publish Future

Shop: How New Technologies Will Change the Way
We Shop and What We Buy. St. Martin's Press.

 1994: Netscape releases the Navigator browser in

October under the code name Mozilla. Pizza Hut
offers pizza ordering on its Web page. Attempts to
offer flower delivery and magazine subscriptions
online.
Conti…
 1995: Jeff Bezos launches Amazon.com and the first
commercial-free 24 hour, internet-only radio stations, Radio HK
and NetRadio start broadcasting. Dell and Cisco begin to
aggressively use Internet for commercial transactions. eBay is
founded by computer programmer Pierre Omidyar as
AuctionWeb.

 1998: Electronic postal stamps can be purchased and

downloaded for printing from the Web.

 1999: Business.com sold for US $7.5 million to eCompanies,

which was purchased in 1997 for US $149,000. The peer-to-peer
filesharing software Napster launches.
Conti…
 2000: The dot-com bust.
 2002: eBay acquires PayPal for $1.5 billion. Niche retail
companies CSN Stores and NetShops are founded with the
concept of selling products through several targeted domains,
rather than a central portal.
 2003: Amazon.com posts first yearly profit.
 2007: Business.com acquired by R.H. Donnelley for $345
million.
 2008: US eCommerce and Online Retail sales projected to
reach $204 billion, an increase of 17 percent over 2007.
 TOP 20 COUNTRIES WITH HIGHEST NUMBER OF INTERNET USERS
Internet Users, Penetration % of World Population User Growth
Country or Region Latest Data (% Population) Users (2008 Est.) (2000 - 2008)
China 253,000,000 19.00% 17.30% 1,330,044,605 1024.40%
United States 220,141,969 72.50% 15.00% 303,824,646 130.90%
Japan 94,000,000 73.80% 6.40% 127,288,419 99.70%
India 60,000,000 5.20% 4.10% 1,147,995,898 1100.00%
Germany 52,533,914 63.80% 3.60% 82,369,548 118.90%
Brazil 50,000,000 26.10% 3.40% 191,908,598 900.00%
United Kingdom 41,817,847 68.60% 2.90% 60,943,912 171.50%
France 36,153,327 58.10% 2.50% 62,177,676 325.30%
Korea, South 34,820,000 70.70% 2.40% 49,232,844 82.90%
Italy 34,708,144 59.70% 2.40% 58,145,321 162.90%
Russia 32,700,000 23.20% 2.20% 140,702,094 954.80%
Canada 28,000,000 84.30% 1.90% 33,212,696 120.50%
Turkey 26,500,000 36.90% 1.80% 71,892,807 1225.00%
Spain 25,623,329 63.30% 1.80% 40,491,051 375.60%
Indonesia 25,000,000 10.50% 1.70% 237,512,355 1150.00%
Mexico 23,700,000 21.60% 1.60% 109,955,400 773.80%
Iran 23,000,000 34.90% 1.60% 65,875,223 9100.00%
Vietnam 20,159,615 23.40% 1.40% 86,116,559 9979.80%
Pakistan 17,500,000 10.40% 1.20% 167,762,040 12969.50%
Australia 16,355,388 79.40% 1.10% 20,600,856 147.80%
TOP 20 Countries 1,115,713,572 25.40% 76.20% 4,388,052,548 284.50%
Rest of the World 347,918,789 15.20% 23.80% 2,288,067,740 391.20%
Total World – Users 1,463,632,361 21.90% 100.00% 6,676,120,288 305.50%
Literature Review

 Kalakota and Robinson (1999) argue that e-business is the

function of deploying technology to maximize customer value
while e-commerce is the function of buying and selling over
digital media.

 Brown and Goolsbee (2000, 16 ff.) argue that B2C eCommerce

tends to increase the price dispersion initially, as B2C
eCommerce companies offer low prices to attract customers .

Kalakota K., Ravi T. and Marcia R. (1999) e-Business – Roadmap for Success, Addison-Wesley Longman Inc., Reading, MA.
http://www.ascusc.org/jcmc/vol9/issue3/metzger.html.
 Conti…
 Schaeffer (2003) suggests that delivery of purchased items can be via postal
services or downloads if downloadable and payment can be done by credit
cards or mailing payments.
 Hoffman et al (2004) contend that there are distribution, marketing and
operational benefits that can be realized from e-commerce. In other words e-
commerce can bring about a reduction in distribution costs through the
elimination of intermediaries. Since online transactions involve very little costs
ecommerce can also bring about a reduction in transaction costs.
 Fruhling and Digman (2000) argue that B2B e-commerce is a way for business
to create value by alignment with factors which include customers, suppliers,
and employees among other factors. Andam (2000) defines B2B e-commerce
simply as e-commerce between companies. He further argues that this type of
e-commerce deals with relationships between and among businesses.
Schaeffer, A (2003) E-commerce Strategic Approaches, Prentice Hall.
Fruhling, A. L. and Digman, L.A. (2000) The Impact of Electronic Commerce on Business Level Strategies, Journal of
Electronic Commerce Research, Vol. 1, No. 1. pp.13-23.
Hoffman, D. L, Novak T P and Chatterjee, P (2000) Commercial scenarios for the web: Opportunities and challenges: Journal of
computer-mediated communication, Vol. 1 issue 3 April 2004.
 Research Objective

 To study the recent trends in e-commerce.

 To study behavior of consumer who buy products
and services through internet.
 To study the marketing strategy used by the
companies for development of business.
Research Methodology
 Research Design: Descriptive research
 Source of data :
 Primary Data : -
Primary data consists of original information gathered for this specific
purpose.
 Secondary Data : -
Through internet, by visiting the company, past reports and projects.
 Sampling Plan:
Consumer: 200 (who purchase products and services online)
Company: 02 (which are involved in selling of products and services
online)
 Trends in E-commerce
 Worldwide, about 1.5 billion people are using the Internet. China now
holds the world’s highest number of Internet users.
 Retailing online continues to be a booming business. Total online sales
reached approximately $131 billion in the U.S. during 2007 (not
including sales of travel), according to e-Marketer, and will grow to
$183.9 billion in 2012. Plunkett Research estimates those sales were
$145.6 billion in 2008.
 In India, it is yet to tap the opportunities available on online advertising
and marketing and marketers will have to tap the youth market to
promote online advertising.
 India only accounts for approximately 2% of the e-commerce in the
Asia-Pacific region, the amount in figures is staggering. It was estimated
at around $2.1 billion in 2008 and predicted to grow to around $6 billion
by 2011. This despite the fact that only 3.7% of the Indian population
has access to the internet.
 The ‘2 billion internet users’ milestone is expected in
2011.
 Internet user penetration is now 65%-70% for leading
countries.
 2007 statistics show that 78% of European Internet
users shop online.
 Japan and South Korea, Asia Pacific’s largest
markets, saw online B2C sales totaling $34 billion
and $14 billion, respectively, in 2006. While these
markets continue to grow, they are fast being caught
up by those of China, India and Brazil.
Company Profile
(1) Atcomart
 ATCO is a name synonymous with the revolution in weighing scales.
Since 1987 Atco expanded its product portfolio by adding safety and
security products, instrumentation products, retail automation products
and material handling products.
 It was in 2003 during our various trips to developed countries especially
USA, they realized how people get their job done and save their time,
money and energy to focus on their business.
 ATCOMAART - India's first network of Industrial and Business Supplies
Stores
 Now Atcomart is set to redefine the industrial purchases in India by
offering 27 product categories, 41,000 products & 5,10,000 SKUs under
one roof.
 (2) Applitech Solution

 They provide Tenders on the Internet. Get Tender of your choice of Industry,
Location, Value, Company, or any other variable. You can get tender in your
choice of media. All you have to do is choose from the Product/Plan that suits
your needs and send across the choice to get started.

 Enterprise wide Applications- Integrated Business Solutions, ERP, MRP,E-

Procurement, E-Business, Internet and Intranet Solutions. Automation-SPC,
Process Control and Automation. Communications-Modem Server,
Networking and Interactive Voice Response Systems.

 Support Services-Database Management, Maintenance and Web Hosting.

Professional Services-Placement, Offshore Contract Execution
Consultancy services-Project Management and System Architecture and
Training.
Atcomart Applitech Solution
 Adhesives, Sealants & Tape  Appliances & Equipments
 Appliances & Equipments  Banking Equipments
Banking Equipments  Building Materials and Supplies
 Bearing's and Blocks  Cleaning Equipment & Supplies
 Building Materials and Supplies  Cutting Tools
 Cleaning Equipment & Supplies  Electrical Accessories
 Cutting Tools  Fasteners
 Electrical Accessories  Gardening Tools
 Fasteners  Hardware Supplies
 Gardening Tools  Industrial Kitchen Equipments
 Hardware Supplies  Instrumentation & Test Tools
 HVAC  Interiors and Furnishings
 Industrial Kitchen Equipments  Lighting Fixtures & Fittings
 Instrumentation & Test Tools  Material Handling Equipments
 Interiors and Furnishings  Office Equipment, Furniture and Supplies
 Lighting Fixtures & Fittings  Packaging and Shipping Products
 Material Handling Equipments  Paints and Painting Supplies
 Metalworking, Welding & Shop Supplies  Power Tools
 Office Equipment, Furniture and Supplies Retail Automation Products
Packaging and Shipping Products
 Paints and Painting Supplies
Power Tools
Power Transmission, Generation & Storage
Data Analysis

Consumer Perspective No, 40%

1. Internet users.
Yes, 60%

2. Use of internet
Some times,
19%
Daily, 30%

2-4times/week,
28%
Once a week,
23%
3. Why do you use the Internet for?
E-mail, Visiting websites, price comparison of different products.

4. Do you prefer online shopping?

Yes, 12%

No, 88%
5. Which kind of product do you purchase from internet?

Most of People prefer electronics products such as i-Pod, digital cameras, mobiles, etc
for purchasing online. And people also booking tickets of airlines, railways through
websites. Now a days most of people also prefer paying fees through online rather going
physically.

6. Do you read customer reviews prior to making a product purchase decision?

No, 47%
Yes, 53%
7. Satisfaction level with respect to price of products or services

Yes, 38%

No, 62%

8. Difficulty while purchasing online.

Yes, 17%

No, 83%
9. Are you satisfied with mode of payment while purchasing online?

No, 26%

Yes, 74%

10. How you come to know about the online business of company?

Others, 29%

Advertisement,
45%
t

Direct
Marketing, 26%
11. Your overall experience or Feedback.

Answer: Now a day’s people are more exited for purchasing

product online. And, they are also satisfied with the services and
promotional schemes provided by the company. They only
complain about high delivery a charge which is taken by the
company.
 Company perspective

1. How long are you in online business?

Atcomart 10 years
Applitech Solution 9 years

2. Did you find any problems when you started business online?

Answer: At initial stage customer not convinced for online

payment. And, companies also face problem of security and losses
of customer data because of lack of privacy.
4. Are you using any promotional tools to attract customer?
Both the company used Promotional tools to attract customer.

5. Which of the following promotional tool use by your company?

Answer: Both the company using different media for
advertisement and direct marketing means, via telephonic to aware
about company and current services.

6. What are the most important factors to be considered for

customer?
Answer: Atcomart believes Built customer loyalty is important
factor to be considered for the customer. While, Applitech
Solution believes that Competitive advantage is most important
factor to be considered for the customer.
7. Which additional feature your website provide to visitor?

Answer: Atcomart provides comparison variety of product in

terms of price, technical specification, application and feature. The
Company provides an information portal system for the whole
industrial product which contains all the necessary details of
product Application, Features, Technical Specification, Optional
Accessories, Product Installation Commissioning Details, Product
Wear And Tear Parts, Product Spare Parts List, Guaranty Warranty
Details and Product Packaging Details.

8. Which type of payment system do you prefer?

Answer: Both the companies accept 2 types of payment that
are: through credit card and postal order.
9. How the company benefited through e-commerce?

Answer: Now a day, the user of internet and the buyers

through internet are increase day by day so company gained
more because such type of response of customer. And through
e-commerce the work also become easy for the company and
also maintain CRM properly.
Chi-square test
 Recommendation by Customer of E-commerce for improvement
 There are three possibilities of recommendations by any customers
of E-commerce.
 Always
 Never
 Sometimes

 Satisfaction of respondents with content of E-commerce is the

independent variable
 Totally satisfied
 Satisfied
 Neutral i.e., neither satisfied nor dissatisfied
 Dissatisfied
 Totally dissatisfied
 Hypothesis

 Null Hypothesis H0:

Recommendation for E-commerce websites is independent of satisfaction with
content of E-commerce.

 Alternative Hypothesis Ha:

Recommendation for E-commerce websites is dependent of satisfaction with
content of E-commerce.
Contingency Table

Observed Frequencies
  Column variable  

  Always Never Sometime Total

Totally
Satisfied 25 35 8 68
Satisfied 14 26 5 45
Neutral 5 19 8 32

Dissatisfied 7 15 4 26

Totally
Dissatisfied 6 18 5 29
Total 57 113 30 200
Row CLMN O E O-E (O-E)2 (O-E)2/E
R1 Yes 25 19.38 5.62 31.58 1.63
No 35 38.42 -3.42 11.7 0.30
Some 8 10.2 -2.2 4.84 0.47

R2 Yes 14 12.825 1.175 1.38 0.11

No 26 25.425 0.575 0.33 0.01
Some 5 6.75 -1.75 3.06 0.45

R3 Yes 5 9.12 -4.12 16.97 1.86

No 19 18.08 0.92 0.87 0.05
Some 8 4.8 3.2 10.24 2.13

R4 Yes 7 7.41 -0.41 0.17 0.02

No 15 14.69 0.31 0.10 0.01
Some 4 3.9 0.10 0.01 0.002

R5 Yes 6 8.265 -2.265 5.13 0.62

No 18 16.385 1.615 2.61 0.16
Some 5 4.35 0.65 0.42 0.10
Total 7.922
Conti…

Degrees of freedom (3-1)(5-1)= 8

Level of Significance 0.05
Critical Value 15.507
Chi-square value 7.922
Accept the null hypothesis 15.507>7.922

Interpretation
•The observed value of chi-square, 7.922, is lesser than the critical value,
7.922, so the null hypothesis is accepted.

•As the null hypothesis is accepted and alternative hypothesis is rejected , it

means that the two variables- recommendation E-commerce Websites from
customer and satisfaction with content of E-commerce - are independent.
 Research Findings
 People are more exited for purchasing product online. And, they are also satisfied with
the services and promotional schemes provided by the company.

 Most of the people using internet for the purpose of E-mail, Visiting websites, price
comparison of different products.

 Most of People prefer electronics products such as i-Pod, digital cameras, mobiles etc
for purchasing online.

 They only complain about high delivery a charge which is taken by the company.

 At initial stage customer not convinced for online payment. And, companies also face
problem of security and losses of customer data because of lack of privacy.

 Both companies using different strategies to attract customers towards e-business.

 Consumer prefers the online shopping when they find the product cheaper compare to
offline.

 Consumer prefers the product ranges up to 7000 Rs.

Consumer Behavior Model for ATCOMART

External Influence

Informal Sources,
Missing Dead Line,
Higher inventories,
New entrance in retailing of Industrial product
Technological Growth

Psychological Factor

Perception,
Attitude,
Needs,
Lifestyle,
Awareness

Choice

Products,
Brand,
Company
Consumer Behavior Model for APPLITECH

External Influence

Technological Growth,
Economic Factor,
New in online tendering companies

Psychological Factor

Perception,
Attitude,
Needs,
Motivation,
Awareness,
Satisfaction

Choice

Different tender of consumer choice

Brand image of company
 Conclusion
 E-commerce provides platform for doing business online.
 People are more exited for purchasing product online. And,
they are also satisfied with the services and promotional
schemes provided by the company.
 They only complain about high delivery a charge which is
taken by the company.
 Company can also maintain proper relationship with the
customer through e-commerce.
 Company and customers are both benefited through e-
commerce.
Suggestion
 Improve product delivery process.

 Published magazines at regular basis for loyal customer

so that customers can know recent trends going on e-
commerce.

 Give regular response to the loyal customer.

 There should be comparison charts of different products

so that customer can easily differentiate products.

 To set their distribution system in every state.