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DECLARATION
I, the undersigned, hereby declare that, the dissertation entitled A STUDY ON CUSTOMER
ATTITUDE TOWARDS ONLINE SHOPPING submitted to the requirement for the award of
the degree of Bachelor of Business Administration (Business Analytics) is the record of the
original work done by me, under the guidance of Ms. P. SOBHA RANI, GITAM Institute of
Management. The empirical findings in this report are based on the data collected by me. It was
not copied from any other project.
Date:
Place:
CERTIFICATE
Place: Visakhapatnam
Date:
Assistant Professor
ACKNOWLEDGEMENT
I take this movement to thank my principal Prof. P. Sheela, GITAM Institute of
Management, GITAM University, Visakhapatnam, Andhra Pradesh for her
continuous support and guidance throughout my project. Her prompt inspirations,
timely suggestions with kindness, enthusiasm and dynamism have enabled me to
complete my thesis.
It is a genuine pleasure to express my deep sense of thanks and gratitude to my
mentor, philosopher and guide Ms. P. SOBHA RANI Assistant Professor, GITAM
Institute of Management, GITAM University, Visakhapatnam, Andhra Pradesh.
Her dedication and keen interest above all her overwhelming attitude to help her
students had been solely and mainly responsible for completing my work. Her
timely advice, meticulous scrutiny and scholarly advice have helped me to a very
great extent to accomplish my task.
I am thankful to Dr. D. Vijay Geetha, Program coordinator who helped me and
guided me in completing this project.
I perceive as this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way, and I will
continue to work on their improvement, in order to attain desired career objectives.
Hope to continue cooperation with all of you in the future.
CONTENTS
4
CHAPTER 1:
INTRODUCTION
TOPIC RELATED CONCEPTS
CHAPTER 2:
METHODOLOGY:
RESEARCH PROBLEM
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH DESIGN
LIMITATIONS OF THE STUDY
FINDINGS
CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE
CHAPTER 3:
CHAPTER 4 :
CHAPTER 1
INTRODUCTION
INTRODUCTION:
E-commerce (Electronic Commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network, primarily
the internet. It involves the use of Information and Communication Technology
(ICT) and Electronic Funds Transfer (EFT) in making commerce between
consumers and organizations, organization and organization or consumer and
consumer. With the growing use of internet worldwide, Electronic Data
Interchange (EDI) has also increased in humungous amounts and so has flourished
e-commerce with the prolific virtual internet bazaar inside the digital world which
is righty termed as e-malls.
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. Alternative names for online shopping are e-web-store, e-shop, e-store,
Internet shop, web-shop, web-store, online store, online storefront and virtual store.
Mobile commerce) describes purchasing from an online retailer's mobile optimized
online site or app.
Online shopping was invented, implemented and successful very quickly
less than a week between idea and rough experimental model, less than 6 months
to productionise hardware and software and less than 12 months from product
release to the first operational system, the worlds first direct Business to Business
(B2B) online shopping system in 1981[Thomson Holidays]. In online shopping the
buyer is connected interactively with the sellers computer system. No third parties
are involved. When a third party is involved that is usually called e-commerce. The
Rediffusion computer system used for online shopping was open, using standard
communications hardware and a standard human interface. Any terminal could talk
to any suitably equipped computer. Any number of applications could be available.
B2B was commercially viable from the beginning. Business to Consumer (B2C)
online shopping did not become commercially viable until the 1990s. The first
B2Cs in the 1980s were basically proof of concept pilots paid for largely by social
security funding and used to investigate the potential for IT to reduce social
disadvantage by offering in- the- home services to vulnerable and physically
7
challenged citizens. Valuable lessons for the retail industry were also learned from
these pilots not least that order processing, order fulfillment (by manual item
selection) and delivery should be based at the local store not at some automated
warehouse.
Aldrich realised from the beginning of his work on online shopping that the
traditional TV as a computer interface device had real limitations. He also saw the
need for high capacity telecommunications links to the home. This is what we call
broadband today.
Online Shopping has become an integral part of Shoppers life. Now
everyone looks for various products online, at least for reviews if not for buying it.
Also Online Shopping comes with various attractive features like heavy discounts,
deals and easy returns policy. It is very safe to say today that Online Shopping will
persist and is not going anywhere. With more and more Merchants coming online
for selling their products, we can assume that future of shopping is online
shopping.
The first secure retail transaction over the Web was either by NetMarket or
Internet Shopping Network in 1994. Immediately after, Amazon.com launched its
online shopping site in 1995 and eBay was also introduced in 1995. Then many
other like Walmart, Alibaba.com, Flipkart and IKEA .
According to UCLA Centre for Communication Policy (2001), online
shopping has become the third most popular Internet activity, immediately
following e-mail using/instant messaging and web browsing. It is even more
popular than seeking out entertainment information and news, two commonly
thought of activities when considering what Internet users do when online. Of
Internet users, 48.9 percent made online purchases in 2001, with three-quarters of
purchasers indicating that they make 1-10 purchases per year. When segmented
into very versus less experienced Internet users, the very experienced users average
20 online purchases per year, as compared to four annual purchases for new users.
Online shopping in its early stage was a simple medium for shopping with fewer
options. The users can just place an order and pay cash on delivery. But, in last few
years this field has been renovated to a high extent and hence fascinated many
customers. Today, the online shopping has become a trend in India and the reason
8
behind the adoption of this technique lies in the attractive online websites, user
friendly interface, bulky online stores with new fashion, easy payment methods
(i.e. secure pay online via gateways like PayPal or cash-on-delivery), no bound on
quantity & quality, one can choose the items based on size, color, price, etc.
According to Google, India has more than 100 million Internet users, out of
which around half opt for online purchases and the number is growing every year.
With such a large market size, companies, right from retail shops to consumer
goods, are entering the Web space to attract potential customers.
According to the Associated Chambers of Commerce and Industry of India
(Assocham), the size of the online retail industry is expected to touch Rs 7,000
crore by 2015, up from Rs 2,000 crore now, at an annual growth rate of 35 percent.
According to industry leaders, portals offering daily deals and discount offers with
good delivery services attract the largest number of online shoppers.
10
CHAPTER -2
METHODOLOGY
RESEARCH PROBLEM:
11
OBJECTIVES:
1. To know how often people use internet and the contribution of online
shopping in that.
2. To know how often people use online shopping.
3. To know type of commodity people prefer in online shopping.
4. To know the preferred online shopping site.
RESEARCH DESIGN:
1. The biasness of the respondents may affect the result of the study so for as
primary data is concerned. Because of the influence of the respondents the
result of the study may not be the same for all places.
2. The survey has conducted in Vizag only it may not reflect public opinion at
large
3. The sample size has been small(100) which may not reflect broader pictures.
13
CHAPTER-3
ANALYSIS OF THE STUDY
Table 1:
Usage of internet everyday based on their gender.
GENDER * USE OF INTERNET EVERYDAY
Count
GENDER
MALE
FEMALE
Total
Total
3-4 HOURS
4
2
6
57
43
100
25
20
15
10
MALE
FEMALE
We can know that out of 100 respondents57 are male and 43 are female.
The use of internet for 1-2 HOURS is 31.6 percent male and 53.5 percent female.
The use of internet for 2-3 HOURS is 38.6 percent male and 14 percent female.
The use of internet for LESS THAN 1 HOUR are 22.8 percent male and 27.9 percent
female.
The use of internet for 3-4 HOURS is 7% and 4.6% for male and female.
We understand that most of the female respondents use internet for 1-2 hours and male
respondents use internet for 2-3 hours. On an overall usage respondents use internet for 1-2 hours
only.
Table 2:
15
GENDER
MALE
FEMALE
Total
21
59
17
32
Total
5
9
57
43
100
40
35
30
25
MALE
20
FEMALE
15
10
5
0
VERY OFTEN
OFTEN
SOMETIMES
We get to know that out of the sample size taken 57 percent are male and 43 percent are
female.
People who VERY OFTEN use online shopping are 66.7 percent male and 48.8 percent
female.
People who use online shopping OFTEN are 26.3 percent male and 39.5 percent female.
People who use online shopping SOMETIMES are 7% male and 11.6 percent female.
We can understand that 59 percent of the respondents use online shopping VERY OFTEN. So we
conclude by saying that 57 percent female and 43 percent male use online shopping VERY
OFTEN.
Table 3:
16
MALE
FEMALE
CLOTHING ELECTRONICS
9
23
21
9
30
32
BOOKS
17
10
27
OTHERS
8
3
11
Total
57
43
100
Out of the 57 percent male 15.8 percent use CLOTHING, 40.4 percent shop
ELECTRONICS, 29.8 percent buy BOOKS and 14 percent buy OTHER products.
Out of the 43 percent female buy CLOTHING, ELECTRONICS, BOOKS and OTHERS
at the rate of 48.8 percent, 2.9 percent, 23.3 percent, 7 percent respectively.
11%
ELECTRONICS
30%
BOOKS
27%
OTHERS
32%
We can understand that most of the male respondents shop ELECTRONICS online whereas
female respondents shop CLOTHING. On a total both men and women prefer to buy
ELECTRONICS at 32%.
Table 4:
17
AGE
below 20
20 to 30
30 to 40
ABOVE 40
Total
Total
OTHERS
2
8
0
1
11
11
71
15
3
100
80
70
60
50
40
30
20
10
0
below 20
20 to 30
30 to 40
ABOVE 40
We can know that from the sample size taken the respondents of age BELOW 20, 20 TO
30, 30 TO 40 and ABOVE 40 are 11, 71, 15 and 3 respectively.
Then the people BELOW 20 of age use CLOTHING and BOOKS at 36.4 percent and
ELECTRONICS and OTHERS at 9% and 18.2% respectively.
The people of age 20 TO 30 use CLOTHING, ELECTRONICS, BOOKS and OTHERS
at 29.6 percent, 31 percent, 28.2 percent and 11. percent respectively.
The people of age 30 TO 40 use at 33.3 percent, 46.7 percent, 20 percent and 0 for
CLOTHING, ELECTRONICS, BOOKS and OTHER repectively.
The people of age ABOVE 40 use 0, 66.7 percent, 0 and 33.3 percent for CLOTHING,
ELECTRONICS, BOOKS and OTHER respectively.
We understand by saying that 20-30 age group people often use internet and most of them prefer
buying clothing and electronics. The least usage is buy above 40 and below 20 age groups and
they prefer clothing and books.
Table 5:
18
AGE
below 20
20 to 30
30 to 40
ABOVE 40
Total
Total
11
71
15
3
100
20 to 30 Age group
OFTEN; 35%
SOMETIMES; 8%
VERY OFTEN; 56%
We can know that from the sample size taken the respondents of age BELOW 20, 20 TO
30, 30 TO 40 and ABOVE 40 are 11, 71, 15 and 3 respectively.
Then from the BELOW 20 age group 72.7 percent use VERY OFTEN 18.2 percent use
OFTEN and 9.1 percent use SOMETIMES.
From The people of age 20-30 use at 56.3 percent, 35.2 percent and 8.5 percent for
VERY OFTEN, OFTEN and SOMETIMES respectively.
From the people of age 30-40 use at and 53.3 percent, 33.3 percent and 13.3 percent for
VERY OFTEN, OFTEN and SOMETIMES respectively.
The people of age ABOVE 40 use 100 percent VERY OFTEN.
We understand that among the respondents most of people use online shopping VERY OFTEN
and the major group is age group between 20-30.
Table 6:
19
AGE
below 20
20 to 30
30 to 40
ABOVE 40
Total
3-4 HOURS
0
4
2
0
6
Total
11
71
15
3
100
1-2 HOURS
20 to 30; 78%
We can know that from the sample size taken the respondents of age BELOW 20, 20 TO
30, 30 TO 40 and ABOVE 40 are 11, 71, 15 and 3 respectively.
Then the consumers of age BELOW 20 use internet LESS THAN 1 HOUR, 1-2 HOURS,
2-3 HOURS, 3-4 HOURS at 2.3%, 36.4%, 36.4% and 0% respectively.
Then the consumers of age 20 TO 30 use internet LESS THAN 1 HOUR, 1-2 HOURS, 23 HOURS, 3-4 HOURS at 25.4%, 45.1%, 23.9% and 5.6% respectively.
Then the consumers of age 30 TO 40 use internet LESS THAN 1 HOUR, 1-2 HOURS, 23 HOURS, 3-4 HOURS at 6.7%, 33.3%, 46.7% and 13.3% respectively.
Then the consumers of age ABOVE 40 use internet LESS THAN 1 HOUR at 100%.
We understand that the respondents of the age 20-30 use internet more for 1-2 HOURS and then
for LESS THAN 1 HOUR.
Table 7:
20
FAVOURITE WEBSITE
FLIPKART
EBAY
JABONG
AMAZON
HOMESHOP18
SNAPDEAL
Total
ELECTRONICS
Total
OTHERS
5
2
1
1
0
2
11
CLOTHING
SNAPDEAL; 9%
HOMESHOP18; 6%
AMAZON; 9% FLIPKART; 47%
SNAPDEAL; 23%
FLIPKART; 30%
From the sample size of 100, 36 people use FLIPKART, 16 people use EBAY, 7 people
use JABONG, AMAZON and HOMESHOP18 is used by 12 respondents each and 17
respondents use SNAPDEAL.
From the above table we can know that people who use FLIPKART buy electronics by
41.7% leading by other commodities.
Who use EBAY also buy electronics more than other commodities at 56.3%.
As most of the respondents use FLIPKART in that 30% use for clothing, 46.9% use for
electronics, 25.9% use for books and 45.5% use for other products.
We understand that most of the respondents buy ELECTRONICS online. The most preferred
online shopping site is FLIPKART then followed by SNAPDEAL.
Table 8:
21
36
16
7
12
12
17
100
MALE
FEMALE
VERY OFTEN
31
18
49
OFTEN
13
15
28
SOMETIMES
8
6
14
RARELY
4
2
6
NEVER
Total
1
2
3
57
43
100
Chart Title
VERY OFTEN
OFTEN
SOMETIMES
RARELY
NEVER
6% 3%
14%
49%
28%
From the sample siz taken 49 shop online VERY OFTEN, 28 shop online OFTEN, 14
shop online SOMETIMES, 6 shop RARELY and 3 doesnt shop at all.
In case of male respondents shop online VERY OFTEN, OFTEN, SOMETIMES,
RARELY and NEVER at 54.4%, 22.8%, 14%, 7% and 1.8% respectively.
In case of female respondents shop online VERY OFTEN, OFTEN, SOMETIMES,
RARELY and NEVER at 41.9%, 34.9%, 14%, 4.7 and 4.7% respectively.
We understand the most of the consumers shop online very often irrespective of their gender.
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CHAPTER-4
OBSERVATIONS AND FINDINGS
Findings :
23
From the research I came to know about the important conclusion regarding the
customer attitude towards Online Shopping. Ecommerce revolution can be bought about
Conclusion :
This research shows that Online shopping is having a bright future in India. perception of
consumers is getting better and people are often preferring to shop online. With the
increased use of internet consumers are interested in comparing the products and buy
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them online. This enables the consumer to shop anything from anywhere and at anytime.
This study mainly focuses on the factors that affect the consumers online shopping
behavior. The information search is the most important factor that helps the consumer
suitable products or services for their needs. so, the online retailers have to enhance and
improve the information supporting such as provide much detailed product information
and use internal search engine in order to increase the information search and thus
increase the online shopping. Convenience and time saving are the main reason to shop
online so, the site should be designed in such a way that consumers find less time in
finding product they are looking for as delay may turn the consumers to another site.
Therefore the factors that influenced or prevented people from using online shopping
need to be carefully taken care by the online retailers, who can utilize the appropriate
marketing communication to support consumers purchase decision making process and
improve their performance.
Bibliography:
Books:
Websites:
Na Wang 1, 2.D. (2008).Study on the Influencing Factors of Online Shopping.
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Questionnaire:
1. Name:
2. Gender
a) Male
3. Age
a)below 20
b) Female
b)20-30
c)30-40
d)above 40
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4. Education level:
a)UG b) PG c) PhD D)other
5. Monthly income/pocket money?
a) Less than Rs. 5000
b) 5000-10000
d) 10000-40000
e) More than 40000
6. Have you ever shop online?
a) Yes
b) No
7. How many times did you have online shopping during last year?
a) 1
b) 2
c) 2-5 d)more than 5
8. What type of commodity did you purchase through online shopping?
a) Fashion b)electronics c)tickets d)others
9. Have you felt any problem while conducting online purchase?
a) Yes
b) No
10. How often do you use internet everyday?
a) Less than one hour b) 1-2 hours c) 2-3 hours d) More than 3 hours
d)Rarely
e)Never
27
28
d) Amazon.com
e) Homeshop18.com
f) snapdeal.com
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g)other