Report On Online Shopping PDF

L.J.
INSTITUTE OF BUSINESS ADMINISTRATION

2012-13

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L.J. INSTITUTE OF BUSINESS ADMINISTRATION

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A PROJECT REPORT BASED ON
CONSUMER BEHAVIOUR TOWARDS ONLINE
SHOPPING
(E-Shopping)
Submitted To,
L.J. Institute of Business Administration
Vastrapur, Ahmedabad

Project Guide,
Prof. Saurin Shah
Submitted by :
T.Y.B.B.A. (2012-13)


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No. Subject Pg. No
1 Certificate 5
2 Acknowledgement 6
3 Preface 7
4 Problem Statement 8
5 Objectives of Study 10
6 Macro Information 12

History of Online Shopping
13

History of E-Commerce
23

E-Commerce Today
33

Future of E-Commerce
34

Indian Scenario
37

E-Commerce & Competition
43

Foundations of Consumer Behaviour
47

Consumer behaviour towards online shopping in India
69

Future of online shopping in India
84
7
Micro Information
86

Myntra.com
87

Flipkart.com
93

Jabong.com
98
Ebay.com 102
8 Survey Questionnaire 108
9 Analysis of Questionnaire 116
Shoppers 117
Non-Shoppers 136
10 Research Methodology 151
11 S.W.O.T Analysis 158

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12 Observations 163
14 Findings 166
15 Limitations 171
16 Suggestions 173
17 Conclusions 175
18 Bibliography 177
19 Declaration 178

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ACKNOWLEDGEMENT

The successful completion of this project would not have been possible
without the co-operation and support of our respected teachers, beloved friends and
our institute of inspiration, L.J. Institute of Business Administration. We hereby
acknowledge the relentless and wholehearted support from one and all of our well-
wishers and express everlasting gratitude to the respected professor in charge, Prof.
Saurin Shah & our respected Director Prof. Rupal Shah for imparting valuable
guidance and co-operation during the consolidation of our perception in the form of
report. And also to all other seniors and friends who have extended their support in
our getting the required material, facts and figure and drive to make this report as a
successful assignment.
Further, we are thankful to all the people eho spared a minute from their busy
schedule and obliged us by giving their co-operation in filling up the questionnaire
which was an evitable part of the process of completion of this project report.
Our respectful thanks and acknowledgement goes to the leading websites and
books which have helped us a lot in our understanding the industry and express
ourselves in this project in a better way.We are also thankful to the Gujarat
University for introducing the preparation of such report as a significant aspect of the
B.B.A programme, without which we would have had any practical exposure of real
Business Environment. This practical exercise has helped us to develop our analytical
skills and interpretation power.


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PREFACE
Management is the most important thing for the world today. As a part of the
co-curriculum activity and management students we had to prepare an in depth
analytical report for which we chose to do a report on consumer behaviour towards
online shopping of people in Ahmedabad and find out the recent trends in online
shopping.
We were successful in reaching the people and have a good conversation with
them and find out what they think and what they wanted from the online companies
and also were they happy with all the facilities provided to them.We gained immense
and practical knowledge by going on the streets and communicating with people,
this project also helped us out to increase our communication skills with consumers
which is an integral part of management.
During the academic year 2012-2013, we have under taken the project
research work on the topic CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING.
This project helped us greatly in understanding, what is consumer behaviour? And
how we can deal with a consumer. We also gained practical knowledge of how a
consumer thinks when he wants to purchase something.
It is a matter of pride for our group to explain this project work wherein we
have put our earnest efforts.

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PROBLEM STATEMENT


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PROBLEM STATEMENT
Our study of the project Consumers behaviour towards e-shopping is
basically based on the survey of consumers of various age groups to analyse their
behaviour towards online shopping & future of e-shopping in the city & India.
At present e-commerce is an emerging market segment which is growing
rapidly. Our main focus here is on e-shopping as many multinational companies are
entering this market segment rapidly in past few years.
Since online retailing is a new retailing medium and online consumer
behaviour is diverse from traditional consumer behaviour, we aim to identify what
influences the online consumer, i.e. the factors that online consumers take into
consideration while making decisions about their purchases. To further understand
how these factors influence different types of consumers, we must identify various
segments which will enable us to make comparisons.


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OBJECTIVES OF THE STUDY


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OBJECTIVES OF THE STUDY
The purpose of this research is primarily to identify and get insight into what
main factors influence the consumer when making online purchase decisions.
Besides the factors influencing another purpose of the study is to analyze analysis
who are online shoppers in terms of demography, i.e. , in terms of age, gender,
income and education.
The research was conducted to further determine the level of satisfaction of
the consumers in Ahmedabad with regard to online shopping and to examine
whether customers prefer online shopping significantly to physical stores.


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MACRO INFORMATION


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HISTORY OF ONLINE SHOPPING


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HISTORY OF ONLINE SHOPPING

Shopping on the internet is certainly a popular past time, an efficient time-
saver, and a great way to comparison shop on virtually any kind of item youre
interested in. The history of e-commerce as most people think of it has a short but
interesting time line. Most people dont realize that e-commerce and its underlying
technology have been around for about forty years.
Weve provided a brief history of e-commerce below starting with its
conception and rapid development and finishing with a brief description of its early
pioneers.


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This is how E-commerce started:-

TIMELINE


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1960-1982
Paying the way for electric commerce was the development of
the Electronic Data Interchange (EDI). EDI replaced traditional mailing and faxing of
documents with a digital transfer of data from one computer to another. Trading
partners could transfer orders, invoices and other business transactions using a
data format that met the ANSI ASC X12, the predominant set of standards in North
America.

Once an order is sent, it is then examined by a VAN (Value-Added Network)
and finally directed to the recipients order processing system. EDI allowed the
transfer of data seamlessly without any human intervention.
Michael Aldrich, an English inventor, innovator and entrepreneur is credited
with developing the predecessor to online shopping. The idea came about during a
stroll with his wife and Labrador when Aldrich lamented about their weekly
supermarket shopping expedition. This conversation sparked an idea to hook a
television to their supermarket to deliver the groceries. Immediately after the
discussion Aldrich quickly planned and implemented his idea.

In 1979 Aldrich connected a television set to a transaction processing
computer with a telephone line and created what he coined, teleshopping,
meaning shopping at a distance.
ABOUT VIDEOTEXT
Videotex was being researched since much earlier for supplying the end users
with textual information. Much work was done in UK on videotext, it was a two way
message service and developed basically for information sending where many
companies were interested in, but on the backdrop of all that Michael Aldrich in
1979 gave the concept of teleshopping (today online shopping) which
revolutionized the way businesses happen.
Same happened in the US around that year with services like The Source and
CompuServe.

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1982-1990
It was apparent from the beginning that B2B online shopping would be
commercially lucrative but B2C would not be successful until the later widespread
use of PCs and the World Wide Web, also known as, the Internet. In 1982, France
launched the precursor to the Internet called, Minitel.

The online service used a Videotex terminal machine that was accessed
through telephone lines. The Minitel was free to telephone subscribers and
connected millions of users to a computing network.
By 1999, over 9 million Minitel terminals had been distributed and were
connecting approximately 25 million users in this interconnected network of
machines. The Minitel system peaked in 1991 and slowly met its demise after the
success of the Internet 3 years later. Eventually, in 2011, France Telecom
announced its shutdown of the Minitel service system. Sadly, it had not become
what it had hoped to be, the Internet.


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1987
With Swreg (offshoot of CompuServe) the community of software developers
and shareware authors got an online market where they could sell their product
using Merchant account. Thus online shopping started for then software industry
people.

1990
Tim Berners-Lee wrote the WorldWideWeb and gave the first browser to
view the web which changed most of things; a whole new revolution started, which
till date is ON.


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1992
Revolutionary book by J.H. Snider and Terra Ziporyn namely; Future Shop:
How New Technologies Will Change the Way We Shop and What We Buy. St.
Martins Press.
1994
Netscape released Navigator browser, later introduced Secure Sockets Layer (SSL)
encryption for secure transaction. Pizza Hut started online ordering on their
webpage, cars, bikes and adult content as well started selling on the internet.

1995
Amazon.com started selling each and everything online, and along with that
Jeff Bezos starts first commercial-free 24 hour, internet-only radio stations. Then
Radio HK and NetRadio start broadcasting. Companies like Dell and Cisco started
using internet in all their transactions. Online auction started by eBay.

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1998
United States started selling Electronic postal stamps online wherein they
could be purchased and downloaded for print.
1999
Acquisition of Business.com by eCompanies in US $7.5 million. Napster the
peer-to-peer file sharing software launches. Home decorative items started selling on
ATG Stores.
2000
The dot-com bust as we know it today wasnt something that happened in a
day, over speculation for a period of time (approx. 1995-2000) where just the prefix
e- or .com in names could make stock prices rise at great rates. This saw a great
many companies rise and fall.
Many entrepreneurs came up with brilliant plans and most got pretty
generous venture capitalists, most of these firms started working on the principle
expand the market and later profits will cover all present debts and losses. This
speculation was constantly taking the market upwards with NASDAQ at a peak of
5132.52 points on March 10, 2000. After this the market goes down and with them
the over speculating ones were just wiped off the market.

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2002
PayPal the company which offered an alternative (through internet) to cash or
check payment was acquired by eBay for $1.5 billion. CSN Stores and NetShops were
founded with the concept of domain specific commodity and sprung with many
online stores, going for one item on each website.


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2003
Online shopping matures showing to the world their confidence Amazon.com
posted first yearly profit and thus again making presence on the stock market.
2007
Acquisition of Business.com by R.H. Donnelley for $345 million, making way
for bigger players in technology domain.
2008
Tremendous growth in US in Ecommerce with sales figures touching $204
billion, a decent 17% rise from the previous year.
2009
Online Retailer Amazon.com has an estimated turnover on a daily basis is
over US $2.5 trillion with growth rate of 14% annually. Ebay having sales of US $1.89
billion, these numbers alone speak.


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HISTORY OF E-COMMERCE


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HISTORY OF E-COMMERCE
One of the most popular activities on the Web is shopping. It has much allure
in it you can shop at your leisure, anytime, and in your pajamas. Literally anyone
can have their pages built to display their specific goods and services.
History of ecommerce dates back to the invention of the very old notion of
"sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce
became possible in 1991 when the Internet was opened to commercial use. Since
that date thousands of businesses have taken up residence at web sites.
The Early Years
The term e-commerce was originally conceived to describe the process of
conducting business transactions electronically using technology from the Electronic
Data Interchange (EDI) and Electronic Funds Transfer (EFT). These technologies,
which first appeared in the late 1970s, allowed for the exchange of information and
the execution of electronic transactions between businesses, typically in the form of
electronic purchase orders and invoices. EDI and EFT were the enabling
technologies that laid the groundwork for what we now know as e-commerce. The
Boston Computer Exchange, a marketplace for used computer equipment started in
1982, was one of the first known examples of e-commerce. Throughout the 1980s,
the proliferation of credit cards, ATM machines and telephone banking was the next
step in the evolution of electronic commerce. Starting in the early 90s, e-commerce
would also include things such as enterprise resource planning (ERP), data
warehousing and data mining.
It wasnt until 1994 that e-commerce (as we know it today) really began to
accelerate with the introduction of security protocols and high speed internet
connections such as DSL, allowing for much faster connection speeds and faster
online transaction capability. Industry experts predicted explosive growth in e-
commerce related businesses.


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E-COMMERCE BEGINS TO EMERGE

It was apparent from the beginning that B2B online shopping would be
commercially lucrative but B2C would not be successful until the later widespread
use of PCs and the World Wide Web, also known as, the Internet. In 1982, France
launched the precursor t o the Internet called, Minitel.

The online service used a Videotex terminal machine that was accessed
through telephone lines. The Minitel was free to telephone subscribers and
connected millions of users to a computing network.

By 1999, over 9 million Minitel terminals had been distributed and were
connecting approximately 25 million users in this interconnected network of
machines. The Minitel system peaked in 1991 and slowly met its demise after the
success of the Internet 3 years later. Eventually, in 2011, France Telecom
announced its shutdown of the Minitel service system. Sadly, it had not become
what it had hoped to be, the Internet.

However, between 1998 and 2000, a substantial number of businesses in
Western Europe and the United States built out their first rudimentary e-commerce
websites.
The definition of e-commerce began to change in 2000 though, the year of the
dot-com collapse when thousands of internet businesses folded. Despite the epic
collapse, many of the worlds most established traditional brick-and-mortar
businesses were emboldened with the promise of e-commerce and the prospect of
serving a global customer base electronically. The very next year, business to
business transactions online became one of the largest forms of e-commerce with
over $700 billion dollars in sales.

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Many of the dot-com collapses first-mover failures served their offline
competitors very well, providing evidence of what not to do in building a viable
online business. For example, Webvan, which was one of the more infamous dot-
com failures, trail blazed the path for Albertsons and Safeway, two of the largest
national supermarket chains, who each have developed their own successful online
grocery delivery businesses.

As stated ealier, in 2000 a great number of business companies in the United
States and Western Europe represented their services in the World Wide Web. At
this time the meaning of the word ecommerce was changed. People began to define
the term ecommerce as the process of purchasing of available goods and services
over the Internet using secure connections and electronic payment services.
Although the dot-com collapse in 2000 led to unfortunate results and many of
ecommerce companies disappeared, the "brick and mortar" retailers recognized the
advantages of electronic commerce and began to add such capabilities to their web
sites (e.g., after the online grocery store Webvan came to ruin, two supermarket
chains, Albertsons and Safeway, began to use ecommerce to enable their customers
to buy groceries online). By the end of 2001, the largest form of ecommerce,
Business-to-Business (B2B) model, had around $700 billion in transactions.

According to all available data, ecommerce sales continued to grow in the
next few years and, by the end of 2007, ecommerce sales accounted for 3.4 percent
of total sales.
Ecommerce has a great deal of advantages over "brick and mortar" stores and
mail order catalogs. Consumers can easily search through a large database of

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products and services. They can see actual prices, build an order over several days
and email it as a "wish list" hoping that someone will pay for their selected goods.
Customers can compare prices with a click of the mouse and buy the selected
product at best prices.
Online vendors, in their turn, also get distinct advantages. The web and its
search engines provide a way to be found by customers without expensive
advertising campaign. Even small online shops can reach global markets. Web
technology also allows to track customer preferences and to deliver individually-
tailored marketing.


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E-COMMERCE PIONEERS
History of ecommerce is unthinkable without Amazon and Ebay which were
among the first Internet companies to allow electronic transactions. Thanks to their
founders we now have a handsome ecommerce sector and enjoy the buying and
selling advantages of the Internet. Currently there are 5 largest and most famous
worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett
Packard. According to statistics, the most popular categories of products sold in the
World Wide Web are music, books, computers, office supplies and other consumer
electronics.
Amazon.com, Inc., founded by Jeff Bezos, was the original e-commerce
pioneer and certainly the most recognizable. In the beginning, Amazons business
model required massive investment in warehousing, delivery and fulfilment
capability and took years for Amazon to gain profitability. But finally in 2003, almost
10 years after launching the company, Amazon.com realized its first annual profit.

At the outset Amazon.com was considered as an online bookstore, but in
time it extended a variety of goods by adding electronics, software, DVDs, video
games, music CDs, MP3s, apparel, footwear, health products, etc. The original name
of the company was Cadabra.com, but shortly after it become popular in the Internet
Bezos decided to rename his business "Amazon" after the world's most voluminous
river and it enjoys a truly global presence with standalone websites in six other
countries, including the United Kingdom, Canada, France, Germany, Japan and China.

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Amazon.com was also the original pioneer in affiliate marketing, allowing other
websites to earn sales commissions for referring Amazon products to their
customers. Today, Amazon generates anywhere between 30 to 40% of its total sales
revenue from affiliates or third party merchants who list and sell their products on
Amazons web site. Today, the Amazon moniker certainly applies as it is one of the
most recognized and most profitable e-commerce businesses on the planet. In 1999,
Jeff Bezos was honoured with Time Magazines Person of the Year award,
immortalizing him forever as probably the single most recognizable figure in the
entire e-commerce community..
According to the research conducted in 2008, the domain Amazon.com
attracted about 615 million customers every year. The most popular feature of the
web site is the review system, i.e. the ability for visitors to submit their reviews and
rate any product on a rating scale from one to five stars. Amazon.com is also well-
known for its clear and user-friendly advanced search facility which enables visitors
to search for keywords in the full text of many books in the database.
One more company which has contributed much to the process of e-
commerce development is Dell Inc., an American company located in Texas, which
stands third in computer sales within the industry behind Hewlett-Packard and Acer.
Launched in 1994 as a static page, Dell.com has made rapid strides, and by the
end of 1997 was the first company to record a million dollars in online sales. The
company's unique strategy of selling goods over the World Wide Web with no retail
outlets and no middlemen has been admired by a lot of customers and imitated by a
great number of ecommerce businesses. The key factor of Dell's success is that
Dell.com enables customers to choose and to control, i.e. visitors can browse the site
and assemble PCs piece by piece choosing each single component based on their
budget and requirements. According to statistics, approximately half of the
company's profit comes from the web site.
In 2007, Fortune magazine ranked Dell as the 34th-largest company in the
Fortune 500 list and 8th on its annual Top 20 list of the most successful and admired
companies in the USA in recognition of the company's business model.
Another major success story of the dot com bubble was EBay, an online
auction site that debuted in 1995. Other retailers like Zappos and Victoria
Secret followed suit with online shopping sites; Zappos being a web only
operation.
Also in 1995, was the inception of Yahoo followed by Google in 1998, two
leading search engines in the US. These successful web directories began their own
ecommerce subsidiaries with Google Shopping and Yahoo! Auction, in following
years.

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Global ecommerce company, PayPal, began its services in 1998 and
currently operates in 190 markets. The company is an acquired bank that performs
payment processing for online vendors, auction sites, and other commercial users.
They allow their customers to send, receive and hold funds in 24 currencies
worldwide. Currently, PayPal manages more than 232 million accounts, more than
100 million of them active.

As more and more people began doing business online, a need for secure
communication and transactions became apparent. In 2004, the Payment Card
Industry Security Standards Council (PCI) was formed to ensure businesses were
meeting compliance with various security requirements.

The organization was created for the development, enhancement, storage,
dissemination and implementation of security standards for account data
protection.

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The growing use of the Internet, tablet devices, and smart phones coupled
with larger consumer confidence will see that ecommerce will continue to evolve
and expand.
With social media growing exponentially in recent years, the conversation
between businesses and consumers has become more engaging, making it easier
for transactional exchanges to happen online. Internet retailers continue to strive
to create better content and a realistic shopping experience with technologies like
augmented reality.
With mobile commerce gaining speed, more users are purchasing from the
palm of their hand. The market for mobile payments is expected to quadruple by
2014, reaching $630 billion in value. Total sales in ecommerce have grown from
$27.6 billion in 2000 to $143.4 billion in 2009 and are expected to continue its
growth for the foreseeable future.

The birth of companies such as Amazon and Dell really began to lead the way
in e-commerce. Both Dell and Amazon were among the first to establish prominent

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e-commerce brands. The most prominent e-commerce categories today are
computers, books, office supplies, music, and a variety of electronics.
History of ecommerce is a history of a new, virtual world which is evolving
according to the customer advantage. It is a world which we are all building together
brick by brick, laying a secure foundation for the future generations.


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ECOMMERCE TODAY
Ecommerce today is a remarkable experience. It has transformed traditional
shopping beyond recognition. It is so much better than any other way of shopping
that it has already attracted a great many of ecommerce-lovers.
If some years ago ecommerce was a buzz word, now it has become the order
of the day. People seem to shop literally everywhere at their workplaces during
lunch times, in rush hour when there is nothing else to do but switch on their laptops
and start surfing.
Ecommerce today gained so much popularity because its underlying
technologies are evolving at giant steps. We are even offered to feel the product
with a 3D mouse to better understand its shape, size and texture. Why go
somewhere out when all you have to do is make an order, choose the shipping
method, put up your feet and wait till the order is delivered right to your door-step?
Ecommerce today offers so much luxury that even conventional stores have
already signalled the alarm. Although, everyone agrees that it is a long way for an
ecommerce to replace brick-and-mortar stores, it has every chance to happen in
the future. Ecommerce which we are witnessing today brings in so much adventure
into our lives that it is enjoyed by the whole online community.
Ecommerce today does have some drawbacks but they say he that fears
every bush must never go a birding. A lot of consumers do put up with minuses
since they trust the online world and want it to be a better place. Ecommerce today
reflects what we created at the very dawn of online electronic commerce.


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FUTURE OF ECOMMERCE
Experts predict a promising and glorious future of ecommerce in the 21st
century. In the foreseeable future ecommerce will further confirm itself a major tool
of sale. Successful ecommerce will become a notion absolutely inseparable from the
web, because e-shopping is becoming more and more popular and natural. At the
same time severe rivalry in the sphere of ecommerce services will intensify their
development. Thus prevailing future trends of ecommerce will be the growth of
Internet sales and evolution.

Each year number of ecommerce deals grows enormously. Sales volumes of
on-line stores are more than comparable with those of brick-and-mortar ones. And
the tendency will continue, because a lot of people are imprisoned by work and
household duties, while Internet saves a lot of time and gives opportunity to choose
goods at the best prices. Present-day Internet sales boom is the foundation for
magnificent ecommerce future.
The quantity to quality tendency of ecommerce is also becoming more and
more obvious, as the Internet has excluded geographical factor from the sale. So it
doesnt matter anymore whether your store is situated in New York or London or in a
small town. To survive, merchants will have to adapt rapidly to the new conditions.
To attract more customers e-store-owners will have not only to increase the number
of available services, but to pay more attention to such elements like attractive
design, user-friendliness, appealing goods presentation, they will have to
opportunely employ modern technologies for their businesses to become parts of
ecommerce future.

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Of course, those, who acquire e-stores earlier, get better chance for future
success and prosperity, though an ecommerce site itself doesnt guarantee you
anything. Only an appropriate ecommerce solution in combination with thorough
emarketing and advertising can buy your business insurance.
In India to compare with the total population, around 2.5 crores are the
internet users. The most of the study found that, most of the shoppers access the
internet from office, followed by those who access it from home. Some also go to
cyber cafes. The business module is cost effective, easily accessible and profitable in
many functional areas. Consumers and retailers both desire a safe, simple and
complete online shopping. From this we can find out what is the actual and real
power of internet now a days.
According to the Preeti Desai, President, Internet and Online Association of
India "E-commerce is coming of age in India. Chaining lifestyles and shopping habits"
Now a days most of the metro and non-metro corporation cities are basing
completely on the media and internet and multiple internet access points.
As per the survey reports, of Internet and online association of India, the total
value of e-commerce activities within India crossed Rs.570 crore during 2004-05. On
the basis of that, the present and the next couple of years it may be crossed to
Rs.2,300 crore worth of e-business in India. In India most of internet users are
purchasing their commodities and services through online shopping through internet
and e-business.
As per the reports, out of 3099 online shoppers, the average of 55% i.e., 1,716
shoppers are benefiting for online services, that are getting services through online
and use of internet by way of e-commerce. The rapid development of E-commerce in
India is forcing companies to adopt business strategies revolving around the internet.
As per the Chairman of IOAL "The report reflects the changing face of business trends
in India. Today, the internet population is 25+ million and is expected to grow at 100
million by end of 2008" So on the basis of reports, we can imagine how the India is
growing with online shopping and e-commerce.
India is the second most populous country and the largest democracy in the
world. Now India has improved its position to the 43
rd
rank in the World of E-
Commerce activities. The rapid development of e-commerce is forcing companies
today to adopt business strategies rotating around the internet.
Finance Minister of India Mr.P.Chidambaram announced recently that
expected growth rate of Indian economy is 9 % for the year 2008 and that is
excellent by any means. Though impact of Indian economy growth may not be
considerable on world scale but at least all Indians will be very happy.

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Online shopping is the buzz, the sensation in the current scenario. Getting
anything by a click of the mouse right from fashion accessories to jewellery, apparel,
electronic items, crockery, home appliances, personal care products, and more has
led to the popularity of the 'online shopping mall' phenomenon. It is the easiest and
fastest way of shopping. At an online shopping mall, you can catch a glimpse of new
product releases, combo deals, packages, discount offers, seasonal products, etc. and
accordingly grab the best deal. Time is not the constraint; you can shop anytime - the
facility is available round the clock.
Another plus point of online shopping is that you can compare products in
terms of brands, specifications, features and prices and buy the right ones. It is
discount shopping that attracts customers to shop online. There are a number of
shopping platforms. Focus on one particular portal that provides complete products
and offers the best deals. Get yourself registered to avail various benefits. For
example, you can feed in your contact details so that you need not enter the same
every time you shop. With every purchase, you earn redeem points. Many an online
shopping mall offers special/combo deals and great discount offers. There are
counted few platforms that facilitate group bargaining, helping buyers collectively
avail maximum discounts in addition to enjoying voice video text chat, meeting new
shoppers, earning redeem coins, winning prizes, and more.
The scope of discount shopping is not only limited to one particular section.
Many an Internet literate individual encompassing the young and the old alike of
both the sexes prefer online shopping. For the same you need to have a bank
account. You can use your credit card or debit card to buy the desired products.
Most online platforms provide payment facilities in all available modes right from
Internet banking, paying by cash, paying cash at the time of delivery, etc.
At a shopping mall, you can explore similar products representing some of the
biggest brands at the national and international level. If you are fortunate, you can
avail discounts over more than fifty per cent. You can always find something new and
interesting. So shop online and stay benefited!
Online shopping developed with B2B as well as with B2C since everybody is on
internet, and development is going on each and every second for grabbing a better
share of the market. Even as we write this article on Ecommerce with our exhaustive
research!!! May just be not enough.


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INDIAN SCENARIO
E-commerce is not possible without internet, and today India stands 11
th
in
average time spent by 1 user on internet every day. Thanks to one of the most
prolific thing in todays world i.e. Facebook.
We have some data related to internet consumption in India and we got this
data from Huffington Post which is an American News Website reveals the data.
Countries that spend maximum time
online
Average time spent
Canada
43.5 hours/month
U.S
35.3 hours/month
U.K
32.3 hours/month
South Korea
27.7 hours/month
France
26.6 hours/month
Brazil
25.8 hours/month
Germany
24.1 hours/month
Russia
21.8 hours/month
Japan
18.4 hours/month
China
13.5 hours/month
India
11.9 hours/month
In the above table we can see that an average Indian user spends on an
average 11.9 hours every month which is 11
th
ranked in the world which is very high
as compared to many first world countries of the world.


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INCREASE IN INTERNET CONSUMPTION IN INDIA
In the year 2000, there were approximately 50,00,000 users and now the
latest data reveals that till June ,2012 the approximate online users were crossed
13,70,00,000 regular users. i.e 11% increase in 11 years.
India consumes 5.7% of the whole worlds internet consumption.
India is ranked 3
rd
worldwide for highest number of users with 137 million
users.

ONLINE SHOPPING IN INDIA

To quote TOI dated December 17,2012, Online shopping in India, which is at a
nascent stage, is poised to witness significant growth in the next few years, with the
industry likely to touch USD 34.2 billion by 2015.
"It is estimated, that around 27 million (in India) are active mobile internet
users. Currently 4 per cent are buying products through mobiles and in next four
years time, it can go up to 20 per cent," Homeshop18.com CEO Sundeep Malhotra
told PTI.
For developing countries like India, e-commerce offers considerable
opportunity. Ecommerce in India is still in nascent stage, but even the most-
pessimistic projections indicate a boom. It is believed that low cost of personal
computers, a growing installed base for Internet use, and an increasingly competitive
Internet Service Provider (ISP) market will help fuel e-commerce growth in Asias
second most populous nation.

Indian middle class of 288 million people is equal to the entire U.S. consumer
base. This makes India a real attractive market for e-commerce. To make a successful

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e-commerce transaction both the payment and delivery services must be made
efficient. There has been a rise in the number of companies' taking up e-commerce in
the recent past. Major Indian portal sites have also shifted towards e-commerce
instead of depending on advertising revenue. Many sites are now selling a diverse
range of products and services from flowers, greeting cards, and movie tickets to
groceries, electronic gadgets, and computers. With stock exchanges coming online
the time for true e-commerce in India has finally arrived. On the negative side there
are many challenges faced by e-commerce sites in India. The relatively small credit
card population and lack of uniform credit agencies create a variety of payment
challenges unknown in India. Delivery of goods to consumer by couriers and postal
services is not very reliable in smaller cities, towns and rural areas.

However, many Indian Banks have put the Internet banking facilities. The
speed post and courier system has also improved tremendously in recent years.
Modern computer technology like secured socket layer (SSL) helps to protect against
payment fraud, and to share information with suppliers and business partners. With
further improvement in payment and delivery system it is expected that India will
soon become a major player in the e-commerce market.
While many companies, organizations, and communities in India are beginning
to take advantage of the potential of e-commerce, critical challenges remain to be
overcome before e-commerce would become an asset for common people.
Indias ecommerce industry is on the growth curve and experiencing a spurt in
growth. The Online Travel Industry is the biggest segment in ecommerce and is
booming due largely to the Internet-savvy urban population. The other segments,
categorized under online nontravel industry, include e-Tailing (online retail), online
classifieds and Digital Downloads (still in a nascent stage). The online travel industry
has some private players such as Makemytrip, Clear trip and Yatra as well as a strong
government presence in terms of IRCTC, which is a successful Indian Railways
initiative. The online classifieds segment is broadly divided into three sectors; Jobs,
Matrimonial and Real Estate. Mobile Commerce is also growing rapidly and proving

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to be a stable and secure supplement to ecommerce due to the record growth in
mobile user base in India, in recent years.
Growth drivers and barriers are present in equal measures for new
ecommerce ventures. A report by the Internet and Mobile Association of India has
revealed that Indias Ecommerce market is growing at an average rate of 70 percent
annually and has grown over 500 % since 2007.The current estimate of US$ 6.79
billion for year 2010 is way ahead of the market size in the year 2007 at $1.75 billion.
Apparently, more online users in India are willing to make purchases through
the Internet. Overall e-commerce industry is poised to experience a high growth in
the next couple of years. The 70 percent year on year growth is expected to continue
and Indias e-commerce market is forecast to reach a whopping $US 10 billion by the
end of 2011.The e-commerce market in India was largely dominated by the online
travel industry with 80% market share while electronic retail (E-Tailing) held second
spot with 6.48% market share.
E-Tailing and digital downloads are expected to grow at a faster rate, while
online travel will continue to rule the major proportion of market share. Due to
increased e-commerce initiatives and awareness by brands, e-Tailing has
experienced decent growth.
According to the third edition of eBay India census 2010 conducted across 28
states and seven union territories, Indias top five rural e-commerce hubs are
Ambalapuzha (Kerala), Sajiyavadar (Gujarat), Adala (Gujarat), Abdalipur (West
Bengal) and Kangayampalayam (Tamil Nadu). This means there are two rural e-
commerce hubs of Gujarat in top five across India. The survey reveals that Gujarat
has emerged as one of the top five online shopping markets in the country. Gujarat is
ranked 4th after Maharashtra, Delhi and Tamil Nadu. During the census in 2009,
Gujarat was ranked at seventh, from which it has jumped to fourth position.
The city of Ahmedabad ranks 7th among top 10 ecommerce hub in the
country. eBay India, a 100 per cent subsidiary of eBay Inc. one of the leading e-
commerce hub in India , has observed a surge in the number of e-commerce hubs in
India from 2,500 last year to 3,300 this year.
According to the eBay Census Guide 2009 for Indian ecommerce scenario, it
has been found that India has over 2,471 ecommerce Hubs. These hubs are the
cities, towns, villages and smaller towns covering the entire length and breadth of
the country. Technology or technology related products dominate Indias domestic
ecommerce. Whereas, lifestyle product category dominates in the global trade.
Technology, being Indias favourite traded vertical category contributes 44% of
totals ecommerce transactions according to the latest eBay Census. Lifestyle
category at 35% comes second in popularity for online Indians. For Global Trade,

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lifestyle is the clear winner at 64% of all transactions followed by Media &
Collectibles at 15% each.
Elaborating Indias domestic online shopping scenario, South India has the
most active buyers at 41% of all transactions, followed by West India at 27%.
However, West India has the most active sellers at 46%, followed by North India at
28%. Delhi entrepreneurs sold the most technology gadgets at 46% of all
transactions to buyers in India. Lifestyle scored on the Exports front at 67% of all
transactions Delhi sells the most musical instruments percussion, brass,
synthesizers, and guitars - in the country. In addition to this, Delhi buyers bought the
most sunglasses in the country according to the eBay census. Delhi buyers have also
bought the most number of high end digital cameras in the country.
India is showing tremendous growth in the Ecommerce. Rival tradeindia.com
has 700,000 registered buyers and it has the growth rate of 35% every year which is
likely to double in the year 2010. Indiamart.com claims revenues of Rs. 38 crores and
has a growing rate of 50 every year. It receives around 500,000 enquiries per month.
Undoubtedly, with the middle class of 288 million people, online shopping shows
unlimited potential in India. The real estate costs are touching the sky. The travel
portals' share in the online business contributed to 50% of Rs4800 crores online
market in 2007-08. The travel portal MakeMyTrip.com has attained Rs. 1000 crores
of turnovers which are around 20% of total e-commerce market in India. Further an
annual growth of 65% has been anticipated annually in the travel portals alone.


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FACILITATORS OF E-COMMERCE IN INDIA
A. INFORMATION DIRECTORIES:
The products and services a relisted with appropriate subheadings to make it
easy for a serious information-seeker to find what he wants. Allied services provided
by them: Message boards, chat rooms, forums, etc.
B. BANKS:
1) NET BANKING/PHONE BANKING: This is an online banking facility available for
savings account holders as well as current account holders. Some of the special Net
banking services are: Demat accounts for sale/purchase of stocks and shares, Foreign
Exchange services, Direct/Instant payment of bills on the account-holders behalf,
Financial Planning.

2) CREDIT/DEBIT CARDS: Banks facilitate E-commerce by providing the most vital
trade instrument, namely the Credit or Debit Card, without which E-commerce would
be impossible.


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E-COMMERCE AND COMPETITION
The changes brought about by E-commerce have the potential to significantly
increase competition by increasing consumers choice of products and traders. They
also enable business to achieve significant efficiencies in their commercial operations
as they move from high cost paper-based transactions to faster, lower cost electronic
transactions.

At the same time, care must be taken to ensure that the opportunities for
competition in the dynamic new area of economic activity are not stifled by anti-
competitive issues. While it is true that in rapidly changing high technology markets
competition may be fierce but in some instance businesses may achieve significant
market power, and use their position to stifle further competition. From a consumer
protection prospective, there have also been a no. of international cases where
unscrupulous traders have taken advantage of the internet as a medium to
propagate old-fashioned scams.


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POTENTIAL COMPETITION ISSUES
Generally, e-commerce has the potential to increase competition by enabling
the development of new services, new distribution channels, and greater efficiency
in business activities. Competition policy issues may arise in relation to joint
ventures to develop B2B electronic marketplaces (e hubs), particularly when they are
developed by existing market participants with a significant combined market share
(as buyers and sellers) in underlying wholesale markets. Competition policy issues
may arise in relation to hubs on an on-going basis if they appear to have developed
sustainable market power resulting from network effects and other factors, and/or
engage in strategic acts to preserve or maintain their market power.

Potential issues would include evidence of price fixing or tacit collusion, or
anti-competitive discrimination against, or refusal of access to third parties. Issues
will not arise in all cases, and this will depend on the details in each case. In many
situations there will be pro-competitive and other public benefit issues that should
be taken into account. A recent Federal Trade Commission report identified a range
of potential efficiency gains that may accrue from the use of eHubs. They include
reductions in administrative costs, reductions in search costs when accessing
appropriate trading partners, creating new markets (e.g. markets for surplus stock),
economies of scale in joint purchasing, and more effective supply chain
management.


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POINTS TO BE KEPT IN MIND
EHubs may be pro-competitive and enable the achievement of efficiencies.
They may also provide wider gains to society by encouraging innovation.
Competitive concerns are more likely to arise when a B2B exchange allows a
number of firms on one side of a wholesale market to coordinate transactions and
those firms jointly represent a significant part of the market. The key question is
whether the B2B E-commerce and competition issues under the Trade Practices Act
exchange enables an exercise of market power not previously available to
participants.

Main issues include the potential for participants to engage in tacit collusion,
exercise of monopsony power or exclusion of third parties. This may affect
competition in the relevant wholesale markets, and in some cases associated retail
markets. In considering whether issues of tacit collusion are likely to arise it is
important to assess if the eHub in question really changes the underlying nature of
transactions occurring. In some instances it may not, and each case should be
considered individually
eHubs may exhibit network effects, a factor which suggests that a market will
favour one eHub being used. This is a fact of life in such industries. What is relevant
is to assess whether certain firms can prevent serial competition over time between
new entrant eHubs. This behaviour is more likely from firms which have significant
market presence in underlying wholesale markets.

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The question is what to do about it. There may be value in allowing an
incumbent to invest in an eHub, as this may assist in developing such proposals.
However, they should not be allowed to use market power to affect the competitive
process.


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FOUNDATIONS OF CONSUMER BEHAVIOUR

WHO IS A CONSUMER?
Any individual who purchases goods and services from the market for his/her
end-use is called a consumer.
In simpler words a consumer is one who consumes goods and services available in
the market.
Example - Tom might purchase a tricycle for his son or Mike might buy a shirt
for himself. In the above examples, both Tom and Mike are consumers.


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WHAT IS CONSUMER INTEREST?
Every customer shows inclination towards particular products and services.
Consumer interest is nothing but willingness of consumers to purchase products and
services as per their taste, need and of course pocket.
LET US GO THROUGH THE FOLLOWING EXAMPLE:
Both Maria and Sandra went to the nearby shopping mall to buy dresses for
themselves. The store manager showed them the best dresses available with him.
Maria immediately purchased two dresses but Sandra returned home empty handed.
The dresses were little too expensive for Sandra and she preferred simple and subtle
designs as compared to designer wears available at the store.
In the above example Sandra and Maria had similar requirements but there
was a huge difference in their taste, mind set and ability to spend.
Thus, we can say that a typical study of consumer behaviour comprises the
following questions:


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STAGES IN CONSUMER DECISION MAKING PROCESS
An individual who purchases products and services from the market for
his/her own personal consumption is called as consumer.
To understand the complete process of consumer decision making, let us first
go through the following example:
Tim went to a nearby retail store to buy a laptop for himself. The store
manager showed him all the latest models and after few rounds of negotiations, Tim
immediately selected one for himself.
In the above example Tim is the consumer and the laptop is the product which
Tim wanted to purchase for his end-use.
Why do you think Tim went to the nearby store to purchase a new laptop ?
The answer is very simple. Tim needed a laptop. In other words it was actually
Tims need to buy a laptop which took him to the store.
The Need to buy a laptop can be due to any of the following reasons:
His old laptop was giving him problems.
He wanted a new laptop to check his personal mails at home.
He wanted to gift a new laptop to his wife.
He needed a new laptop to start his own business.
The store manager showed Tim all the samples available with him and
explained him the features and specifications of each model. This is called
information. Tim before buying the laptop checked few other options as well.
The information can come from various other sources such as newspaper,
websites, magazines, advertisements, billboards etc.


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THIS EXPLAINS THE CONSUMER BUYING DECISION PROCESS

A consumer goes through several stages before purchasing a product or service.

Step 1 - Need is the most important factor which leads to buying of products
and services. Need infact is the catalyst which triggers the buying decision of
individuals.
An individual who buys cold drink or a bottle of mineral water identifies
his/her need as thirst. However in such cases steps such as information search and
evaluation of alternatives are generally missing. These two steps are important when
an individual purchases expensive products/services such as laptop, cars, mobile
phones and so on.

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Step 2 - When an individual recognizes his need for a particular
product/service he tries to gather as much information as he can.
An individual can acquire information through any of the following sources:
Personal Sources - He might discuss his need with his friends, family members,
coworkers and other acquaintances.
Commercial sources - Advertisements, sales people (in Tims case it was the
store manager), Packaging of a particular product in many cases prompt
individuals to buy the same, Displays (Props, Mannequins etc.)
Public sources - Newspaper, Radio, Magazine
Experiential sources - Individuals own experience, prior handling of a
particular product (Tim would definitely purchase a Dell laptop again if he had
already used one)
Step 3 - The next step is to evaluate the various alternatives available in the
market. An individual after gathering relevant information tries to choose the best
option available as per his need, taste and pocket.
Step 4 - After going through all the above stages, customer finally purchases the
product.
Step 5 - The purchase of the product is followed by post purchase evaluation.
Post purchase evaluation refers to a customers analysis whether the product was
useful to him or not, whether the product fulfilled his need or not?


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FACTORS INFLUENCING BUYING DECISIONS OF A CONSUMER
There are several factors which influence the buying decision of consumers,
cultural factors being one of the most important factors.
1. What are Cultural Factors ?
Cultural factors comprise of set of values and ideologies of a particular
community or group of individuals. It is the culture of an individual which decides the
way he/she behaves. In simpler words, culture is nothing but values of an individual.
What an individual learns from his parents and relatives as a child becomes his
culture.
Example - In India, people still value joint family system and family ties.
Children in India are conditioned to stay with their parents till they get married as
compared to foreign countries where children are more independent and leave their
parents once they start earning a living for themselves.
Cultural factors have a significant effect on an individuals buying decision.
Every individual has different sets of habits, beliefs and principles which he/she
develops from his family status and background. What they see from their childhood
becomes their culture.
Let us understand the influence of cultural factors on buying decision of
individuals with the help of various examples.
Females staying in West Bengal or Assam would prefer buying sarees as
compared to Westerns. Similarly a male consumer would prefer a Dhoti Kurta during
auspicious ceremonies in Eastern India as this is what their culture is. Girls in South
India wear skirts and blouses as compared to girls in north India who are more into
Salwar Kameez.
Our culture says that we need to wear traditional attire on marriages and this
is what we have been following since years.
People in North India prefer breads over rice which is a favourite with people
in South India and East India.


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2. SUBCULTURES
Each culture further comprises of various subcultures such as religion, age,
geographical location, gender (male/female), status etc.
a. RELIGION (CHRISTIANITY, HINDU, MUSLIM, SIKHISM, JAINISM ETC.)
A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas
a Christian bride wears a white gown on her wedding day. It is against Hindu culture
to wear white on auspicious occasions. Muslims on the other hand prefer to wear
green on important occasions.

For Hindus eating beef is considered to be a sin whereas Muslims and
Christians absolutely relish the same. Eating pork is against Muslim religion while
Hindus do not mind eating it.
A sixty year old individual would not like something which is too bright and
colourful. He would prefer something which is more sophisticated and simple. On the
other hand a teenager would prefer funky dresses and loud colours.
In India widows are expected to wear whites. Widows wearing bright colours
are treated with suspicion.
b. STATUS (UPPER CLASS, MIDDLE CLASS AND LOWER CLASS)
People from upper class generally have a tendency to spend on luxurious
items such as expensive gadgets, cars, dresses etc. You would hardly find an
individual from a lower class spending money on high-end products. A person who
finds it difficult to make ends meet would rather prefer spending on items necessary
for survival. Individuals from middle class segment generally are more interested in
buying products which would make their future secure.


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c. GENDER (MALE/FEMALE)
People generally make fun of males buying fairness creams as in our culture
only females are expected to buy and use beauty products. Males are perceived to
be strong and tough who look good just the way they are.


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3. SOCIAL FACTORS
Since Consumer Behaviour is an effort to study and understand the buying
tendencies of consumers for their end use.
Social factors play an essential role in influencing the buying decisions of
consumers.
Human beings are social animals. We need people around to talk to and
discuss various issues to reach to better solutions and ideas. We all live in a society
and it is really important for individuals to adhere to the laws and regulations of
society.
Social Factors influencing consumer buying decision can be classified as under:
Reference Groups
Immediate Family Members
Relatives
Role in the Society
Status in the society
a. REFERENCE GROUPS
Every individual has some people around who influence him/her in any way.
Reference groups comprise of people that individuals compare themselves with.
Every individual knows some people in the society who become their idols in due
course of time.
Co-workers, family members, relatives, neighbours, friends, seniors at workplace
often form reference groups.
Reference groups are generally of two types:
a. PRIMARY GROUP:- consists of individuals one interacts with on a regular
basis. Primary groups include:
Friends
Family Members
Relatives
Co Workers
All the above influence the buying decisions of consumers due to following reasons:

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They have used the product or brand earlier.They know what the product is all
about. They have complete knowledge about the features and specifications of the
product.
Tim wanted to purchase a laptop for himself. He went to the nearby store and
purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all
his friends were using the same model and were quite satisfied with the product. We
tend to pick up products our friends recommend.
A married individual would show strong inclination towards buying products
which would benefit not only him but also his family members as compared to a
bachelor. Family plays an important role in influencing the buying decisions of
individuals.
A consumer who has a wife and child at home would buy for them rather than
spending on himself. An individual entering into marriage would be more interested
in buying a house, car, household items, furniture and so on. When an individual gets
married and starts a family, most of his buying decisions are taken by the entire
family.
Every individual goes through the following stages and shows a different
buying need in each stage:
Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends
Lavishly)
Newly Married: Tend to purchase a new house, car, household furnishings.
(Spends sensibly)
Family with Children: Purchases products to secure his as well as his familys
future.
Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health
Products, and Necessary Items.
A Ford Car in the neighbourhood would prompt three more families to buy the
same model.
b. SECONDARY GROUPS:- Secondary groups share indirect relationship with the
consumer. These groups are more formal and individuals do not interact with
them on a regular basis, Example - Religious Associations, Political Parties,
Clubs etc.


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1. ROLE IN THE SOCIETY
Each individual plays a dual role in the society depending on the group he
belongs to. An individual working as Chief Executive Officer with a reputed firm is
also someones husband and father at home. The buying tendency of individuals
depends on the role he plays in the society.
2. SOCIAL STATUS
An individual from an upper middle class would spend on luxurious items
whereas an individual from middle to lower income group would buy items required
for his/her survival.
a. PERSONAL FACTORS
Consumer Behaviour helps us understand the buying tendencies and spending
patterns of consumers. Not all individuals would prefer to buy similar products.
Consumer behaviour deals with as to why and why not an individual
purchases particular products and services.
Personal Factors play an important role in affecting consumer buying
behaviour.
b. OCCUPATION
The occupation of an individual plays a significant role in influencing his/her
buying decision. An individuals nature of job has a direct influence on the products
and brands he picks for himself/herself.
Tim was working with an organization as Chief Executive Officer while Jack,
Tims friend now a retired professor went to a nearby school as a part time faculty.
Tim always looked for premium brands which would go with his designation whereas
Jack preferred brands which were not very expensive. Tim was really conscious about
the clothes he wore, the perfume he used, the watch he wore whereas Jack never
really bothered about all this.
That is the importance of ones designation. As a CEO of an organization, it
was really essential for Tim to wear something really elegant and unique for others
to look up to him. A CEO or for that matter a senior professional can never afford to
wear cheap labels and local brands to work.

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An individuals designation and his nature of work influence his buying
decisions. You would never find a low level worker purchasing business suits, ties for
himself. An individual working on the shop floor cant afford to wear premium
brands every day to work.
College goers and students would prefer casuals as compared to professionals
who would be more interested in buying formal shirts and trousers.
3. AGE
Age and human lifecycle also influence the buying behaviour of consumers.
Teenagers would be more interested in buying bright and loud colours as compared
to a middle aged or elderly individual who would prefer decent and subtle designs.
A bachelor would prefer spending lavishly on items like beer, bikes, music,
clothes, parties, clubs and so on. A young single would hardly be interested in buying
a house, property, insurance policies, gold etc. An individual who has a family, on the
other hand would be more interested in buying something which would benefit his
family and make their future secure.
4. ECONOMIC CONDITION
The buying tendency of an individual is directly proportional to his
income/earnings per month. How much an individual brings home decides how
much he spends and on which products?
Individuals with high income would buy expensive and premium products as
compared to individuals from middle and lower income group who would spend
mostly on necessary items. You would hardly find an individual from a low income
group spending money on designer clothes and watches. He would be more
interested in buying grocery items or products necessary for his survival.
5. LIFESTYLE
Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers
to the way an individual stays in the society. It is really important for some people to
wear branded clothes whereas some individuals are really not brand conscious. An
individual staying in a posh locality needs to maintain his status and image. An
individuals lifestyle is something to do with his style, attitude, perception, his social
relations and immediate surroundings.
6. PERSONALITY
An individuals personality also affects his buying behaviour. Every individual
has his/her own characteristic personality traits which reflect in his/her buying
behaviour. A fitness freak would always look for fitness equipments whereas a music
lover would happily spend on musical instruments, CDs, concerts, musical shows etc.

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4. PSYCHOLOGICAL FACTORS
Let us understand the effect of psychological factors on consumer behaviour:
EXAMPLE: Nancy went to a nearby restaurant and ordered pizza for herself.
Why did Nancy buy pizza?
Answer - She was feeling hungry and wanted to eat something.
In the above example, Hunger was the motivating factor for Nancy to
purchase pizza. There are several other factors which motivate individuals to
purchase products and services. An individual who is thirsty would definitely not
mind spending on soft drinks, packaged water, juice and so on. Recognition and self-
esteem also influence the buying decision of individuals.
Why do people wear branded clothes?
Individuals prefer to spend on premium brands and unique merchandise for
others to look up to them. Certain products become their status symbol and people
know them by their choice of picking up products that are exclusive. An individual
who wears a Tag Heuer watch would never purchase a local watch as this would be
against his image.


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PERCEPTION
What is Perception?
What an individual thinks about a particular product or service is his/her
perception towards the same. For someone a Dell Laptop might be the best laptop
while for others it could be just one of the best brands available.
Individuals with the same needs might not purchase similar products due to
difference in perception.
Catherine and Roselyn had a hectic day at work and thus wanted to have
something while returning from work. Catherine ordered a large chicken pizza with
French fries and coke while Roselyn preferred a baked vegetable sandwich. Though
both Catherine and Roselyn had the same motivation (hunger), but the products they
purchased were entirely different as Roselyn perceived pizza to be a calorie laden
food. Individuals think differently and their perceptions do not match.

Individuals perceive similar situation differently due to difference in the way
they interpret information.


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There are three different processes which lead to difference in perception:
1. SELECTIVE ATTENTION - Selective attention refers to the process where
individuals pay attention to information that is of use to them or their
immediate family members. An individual in a single day is exposed to
numerous advertisements, billboards, hoardings etc. but he is interested in
only those which would benefit him in any way. He would not be interested in
information which is not relevant at the moment.
2. SELECTIVE DISTORTION - Consumers tend to perceive information in a way
which would be in line to their existing thoughts and beliefs.
3. SELECTIVE RETENTION - Consumers remember information which would be
useful to them, rest all they forget in due course of time. Michael wanted to
purchase a watch for his wife and thus he remembered the RADO
advertisement which he had seen several days ago.


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LEARNING


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Learning comes only through experience. An individual comes to know about
a product and service only after he/she uses the same. An individual who is satisfied
with a particular product/service will show a strong inclination towards buying the
same product again.
BELIEFS AND ATTITUDE
Beliefs and attitude play an essential role in influencing the buying decision of
consumers. Individuals create a certain image of every product or service available in
the market. Every brand has an image attached to it, also called its brand image.
Consumers purchase products/services based on their opinions which they
form towards a particular product or service. A product might be really good but if
the consumer feels it is useless, he would never buy it.
ROLE OF FAMILY IN CONSUMER BEHAVIOUR
No two individuals have same buying preferences. The buying tendencies of
individuals vary as per their age, need, income, lifestyle, geographical location,
willingness to spend, family status and so on. An individuals immediate family
members play an essential role in influencing his/her buying behaviour.
An individual tends to discuss with his immediate family members before
purchasing a particular product or service. Family members might support an
individuals decision to buy a particular product, stop him for purchasing it or suggest
few other options.

FAMILY COMPRISES OF:
Parents
Siblings
S0pouse
Grandparents
Relatives (Cousins/Aunts, Uncles etc.)

What an individual imbibes from his parents becomes his/her culture. In
countries like India, where children are supposed to stay with their parents till the
time they get married, the influence of parents on an individuals buying decisions
cannot be ignored. What he sees from his childhood becomes his habit or in other

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words lifestyle. A female from an orthodox background would prefer salwar suits,
saris instead of westerns or short outfits. In India, parents expect their children to
dress up in nice, colourful outfits during marriages, festivals or other auspicious
occasions. Even if children want to buy something else, their parents would always
prompt them to buy traditional attire, thus influencing their buying decision.

The moment an individual enters into wedlock, his/her partner influences his
buying decisions to a great extent. In most families, wife accompanies her husband
for shopping be it grocery, home appliances, furnishings, car etc. An individual would
always discuss with his/her partner before any major purchase. After marriage,
individuals generally do not like spending on himself/herself; rather they do it for
their partner or family. A young bachelor would not mind spending on alcohol,
attending night parties, casinos but the moment he has a wife at home, he would
instead spend on household and necessary items. No bachelor likes to invest money
on mutual funds, insurance policies, med claims etc. but for someone who is married
buying an investment plan becomes his first priority. Women generally are inclined
towards buying toiletries, perfumes, dresses, household items, furnishings, food
products while men would rather love to spend on gadgets, cars, bikes, alcohol etc.
Both have different tastes but when they come together, they mutually decide on
what to buy and what not to buy.

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A Bachelor would never purchase Womens Horlicks or Kelloggs K special or a
female perfume but when he has a wife at home; he would love to purchase them
for his wife. A young girl who has never purchased shaving creams or mens perfume
all through her life for herself would not mind purchasing for her husband, father or
father in law. A working woman would have different needs as compared to a
housewife. A woman who goes to office would prompt her husband to buy formal
trouser and shirt, office bag, make up products etc. for her while a house wife would
not like spending on all these as she does not require an office bag and so on.

Children also influence the buying decisions of individuals. An individual
spends happily on toys, candies, ice creams, chocolates. sweets when he has children
at home. Children in the family prompt their parents to subscribe to Disney Channel,
Cartoon network and so on.
Individuals do not mind spending on medicines, health supplements, vitamin
tablets, protein drinks if they have ailing parents at home.


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DIFFERENT TYPES OF CONSUMERS

In business terms there are different types of consumers of goods and services
that are offered for sale by companies and manufacturers. A product manufacturing
company has to determine, know or understand the type of consumers its targeting
with its goods to make sure that there exists a market for the products they intend to
introduce into the market. Knowing the types of consumers for goods is also
important in that it enables the company to avail the right and desired product to the
consumer hence increasing sales and profitability.
There are different types, classes or categories of consumers of goods and
services and in this article each of them will be discussed in detail.

1. SEASONAL CONSUMERS
These are types of consumers who purchase and consume products on
seasonal basis. You would most of the times not find these types of consumers
buying the goods or service in question but rather at certain times when the need for
them arises. They buy products that are season based or demanded at certain times
and not all the times.

Examples
Purchasing umbrellas during the rainy season
Purchasing cold drinks during the hot seasons
Going out for holyday during the Christmas season

2. PERSONAL CONSUMERS
These types of consumers are individual consumers who purchase goods for
the sole purpose of personal, family or household use.

Examples

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Going to the supermarket and shopping for goods which are to be used in the
house
Purchasing a car that you intend to use personally
Purchasing clothes for personal use from a clothing mall
Purchasing a mobile phone to communicate with people

3. ORGANIZATIONAL CONSUMER
Organizational consumers are consumers of goods and services whose main
intention is not for immediate use but rather to use it for things like production,
using them to carry out the organizations activities or for resale purposes aimed at
getting profits as a result. E.g. an organization may buy raw materials that are aimed
at producing other goods that will later be offered for sale to other consumers.

4. IMPULSE CONSUMERS
Impulse consumers or buyers are those who make unplanned buying
decisions. Impulse buyers make swift buying decisions in that they encounter
products which they immediately purchase after they fall in love with the product
and its features. The products they purchase were not initially in their plans but as a
sort of something that comes up all over sudden from somewhere and that calls for
the consumer to make an unplanned purchase.

5. NEED BASED CONSUMERS
Need based consumers are those types of consumers who buy goods and
services when they need them and not any other time. A need for a certain product
will necessitate buying it, as the consumer would find it tempting to buy the product
because it is needed immediately for a certain purpose.

6. DISCOUNT DRIVEN CONSUMERS
Discount driven consumers are types of consumers who are purchase goods
and services primarily for the discounts on offer. They may not engage in any buying
activity for most of the times only to act when they hear or see large discounts being
offered on products they like. They are price sensitive and they would rather wait
and purchase products when they come with discounts as opposed to when they
have no discount.

7. HABITUAL CONSUMER
Habitual consumers are those who find it a must or compelling to use certain
type of goods whenever they are presented with the opportunity. It is just like a
habit that they cant do without engaging in it.
E.g. the cigarette smoker falls under this category of consumers. The person
would smoke at any given time when he/she has a cigarette. He may also not be able
to do without smoking because it is a habit that he has become addicted to.

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Thus, in nutshell, it can be said that the marketers need to study consumer
behavior for the following reasons:


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CONSUMER BEHAVIOUR TOWARDS
ONLINE SHOPPING IN INDIA

Malls springing up everywhere and yet people are e-shopping! And not in
small numbers either. E-commerce figures are going through the roof, according to
Assocham (Associated Chambers of Commerce & Industry of India). Today (2007-08)
the figures are touching Rs. 2200 crore, but are expected to increase by 150 percent
by 2008-09 - to Rs. 5,500 crores! And two metros - Delhi and Mumbai are driving the
growth:
CITY SHARE IN 07-08 PROJECTION FOR 08-09
Mumbai 24% 30%
Delhi 20% 30%
Chennai 7% 11-12%
Kolkata 7% 10-11%
Bangalore 6% 9%


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It was never thought that Indians would go in for e-shopping in such a big way.
Ticketing, travel bookings and even books and movies seem fine to buy online.
Knowing that in India sizes vary from brand to brand and quality is inconsistent, even
of some electronic items, how is it that there are people buying these items online?
Well, Assocham says that books are the hottest selling item on the internet. In
fact most products bought and sold off online are: books, electronic gadgets and
railway tickets. However, people are also buying clothes, gifts, computer and
peripherals, and a few are buying home tools and products, home appliances, toys,
jewellery, beauty products and health and fitness products
Traffic for e-commerce sites is mostly coming from the two metros of Delhi
and Mumbai. Here are few reasons for this :
1. CONVENIENCE
It is the major reason. Both the cities are spread out over a large area and the
best stores in both these cities are often concentrated in certain posh areas. In
Mumbai for example there are certain items you get only in Crawford market which
is at the other end of town in South Mumbai. And demographics show that the
population of Mumbai is now concentrated in the suburbs. Of course, huge malls
have come up in the suburbs as well, and Indias biggest mall Nirmal Lifestyle is in
far-flung Mulund but often you find a better choice of sizes and styles choice in other
malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have
transport system, few people like to travel for two hours just to get to a shop at the
other end of town. Clearly the transport systems leave much to be desired. In Delhi,
safety is also an issue for women traveling alone in the evenings.
2. LITERACY RATE AND THE CITIES INTERNET SAVVY POPULATION
Most cities in India have a higher literacy rate as compared to the national
average of 64.8 percent. In fact Mumbai has a highest literacy even amongst the
cities (86 per cent). Delhi too has a high literate population (81.2 per cent). Oddly,
although Bangalore has a higher literacy rate than Delhi, at 83 per cent, the citys
share of e-commerce is not very high. Kolkata too has a literacy rate (80.8 per cent)
and so does Chennai (80.1 percent.) If one compares these rates to literacy rates of
cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal
(73 percent) its clear why its the metros which are going to continue to lead e-
shopping.

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3. HOME DELIVERY CONCEPT
In any case, home delivery is a concept that Indians are familiar with and love.
The mall craze has started only now.

Earlier it was a choice between sweating it out in small crowded markets, or
asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this
system is still thriving.
4. INCREASE IN THE INTERNET USERS
Increasing penetration of Internet connectivity and PCs has led to an increase
in the Internet users across India. The demographic segments that have witnessed
maximum growth comprise college going students and young persons. These
segments are the users of advanced applications and technologies online and are
most likely to be heavy E-Commerce users.
5. INCREASE IN THE NUMBER OF BUYERS AND SELLERS
The success of a marketplace depends on the presence of a large number of
buyers and a large number of sellers. In addition to online buyers, many offline
stores have begun to sell their products in the online marketplace. The greater the
number of sellers and buyers, the faster the market grows.


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PRODUCT PREFERENCES CITY WISE
Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts
movies, bookings, actually just about everything.
Kolkata prefers to buy music and movies online
Mumbai leads in all categories, except jewellery.
Delhites seem to prefer buying jewellery online as compared to any other city


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DEMOGRAPHIC TRENDS

ACROSS VERTICALS
1. 15-24 age group gets 40% traffic. Early adoption amongst this Age group
which will lead consumption in the coming decade is a good sign.
2. Low Middle Income earners dominate
3. City wise traffic is Maximum from Mumbai, Delhi, and Bangalore. About
40% traffic is outside metro and tier 1 cites.
4. Primary customers are Young Graduate Adults.

VERTICAL UNIQUE
USERS/
DAY
AANU-
AL
GROW
TH
ALL
INDI-
A
REA
CH
TIME
SPENT/VISIT(MIN
UTES)
SITES CONSIDERED
TRAVEL 150,000 100% 4% 8% Makemytrip.com,
cleartrip.com,
yatra.com, tripadvisor.in
BOOKS
ELECTRONICS/
DVDS
40,000 80% 1.5% 7 Flipkart.com,
infibeam.com,
naaptol.com,
letsbuy.com
APPAREL 30,000 220% 1.25
%
9.2 FashionAndYou.com,Ye
bhi.com, Myntra.com,
99labels.com


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Through an average of Top Down, Bottom Up and Comparable Geography
Market Size, I expect Indian E-Commerce to grow at 30-40% Annually and be a Rs.
260,000 Crores(GMV) market by 2016.

CUSTOMER FACING

Web Product Design. User friendly interface is crucial to converting Visitors
into Buyers. Typical Ecommerce conversions are 4-6%. China/US Ecommerce
sites convert at > 10% levels.
Customer Acquisition. Digital Marketing channels including SEO, SEM, Social
Media, SMS, Emails, Mobile Ads; Offline channels include Print, Radio and TV.
Typical Cost per Acquisition range from Rs. 400 to Rs. 2000. Marketing
through Digital Channels is clearly not cheap. (See Appendix 7: Google Ad
Words CPC by Segment) (http://www.alootechie.com/news/google-targets-
triple-digit-revenue-growth-through-local-ads-indian-smbs) .
Customer Support (Social Media and Inbound Call Centres)
Payment Processing. E.g. Avenues.com, ItzCash. Costs can vary from 2-5%
depending on volumes and form of payment. Failure rates and Fraud have
considerably reduced to an acceptable level


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SUPPLY NETWORKS

Supply networks have evolved differently for each vertical. Merchandiser-
Vendor negotiations greatly determine Payment terms and Supply Time/reliability.
In general the
more consolidated an industry the more organized the network (E.g. Flight
Ticketing).

1. BOOKS, ELECTRONICS & APPAREL
Most brands/publishers work with national level distributors, who then
distribute to regional dealers. Ecommerce players can work with either Regional
Dealers or National Distributors. With volume these can be removed and direct
brand relationships need to be built.

2. TRAVEL TICKETING
Ticket Aggregators such as GDS provide fairly straightforward integration into
flight availability and booking.

3. HOTEL BOOKING
A challenge exists in streamlining the various layers of intermediaries
/aggregators which exist without adding any real value between the Customer and
Hotel. Myriad layers of intermediaries with vested interests are not allowing this
category to take off in spite of huge margins and high volumes. However as OTAs
gain volumes they are replacing some of these aggregators and there is an
opportunity to consolidate the value chain.

4. DEALS
There are no existing networks for aggregating deals. Thus it is a challenge to
build a Business Development team to collect deals. At the same time it is an
opportunity given that margins do not need to be shared with intermediaries.


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DELIVERY CHANNELS

Needed only for product delivery, deals/ticketing can forgo this expense

1. INVENTORY MANAGEMENT, WAREHOUSING, PACKAGING AND SHIPPING:
Technology enabled CRM systems and demand forecasting are vital to
optimize delivery time & cost.

2. COURIERS AND LAST MILE DELIVERY CHANNELS:
(E.g. Aramaex and AFL Couriers) Negotiations determine freight costs, time to
deliver, attempts at delivery, etc.. COD greatly boosts market size; however it comes
with its own challenges around Returns, Incorrect Address, etc. Hence this is more
expensive (even excluding freight) than traditional Payment processors.


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MARKET SHARE & COMPETITIONS


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Non travel Retail related sites reach about 54% (up 14% YoY) of the Online
Audience in India. With the bulk of the reach coming from Computer Software
downloads, Consumer Electronics, Hardware, Comparison shopping and Books Travel
related sites reach 40% (up 13% YoY) of Indian Online users, dominated by Railways
booking sites, followed by OTAs


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KEY GROWTH DRIVERS

Scale through a superior service quality and high repeat business and
referrals.
Horizontal play, Number of categories served
Reduce operational expenses by investing in warehouses / Logistics.

Supplier relationships over other brands and potential new entrants
Variety of products available under each category.
Conversion rates for major players are still in the middle single digits, contrast
with US/China where they are above 10%.
COD consists of 80% of Ecommerce transactions in China, India has much
lesser.
South East Asia represents a huge opportunity for Indian Ecommerce
companies to expand into. Snapdeal is one of the Companies considering
going global.


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KEY CHALLENGES / BARRIERS

Accounting practices at most ecommerce sites still report revenues as Gross
Merchandise Value. Further deep discounts are treated as long-term
amortisable marketing expenses
20 % of the Users account for 64% of the total time spent on the Internet. In
order to scale it is important to increase internet consumption across existing
Internet users

Core network infrastructure in India is not capable of handling a huge surge in
Internet traffic. Only 20% of the Intra Telco network is over robust fiber
networks, While Telcos concentrate on individual networks, there arent
sufficient peering points for traffic crossover.
Payment system infrastructure continues to be woefully inadequate.
It is rumored that SEBI is considering imposing Capital gains tax on Venture
capital investments.
Global players such as Amazon looking to enter India
Local Language Content Local Search Engines Like Baidu


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TO SUM UP:-
Consumers attitude towards online shopping refers to their psychological
state in terms of making purchases over the Internet. Online buying behaviour
process refers to the products purchased online. The process of online buying
behaviour consists of five steps and it is similar to traditional shopping behaviour. For
instance, consumer recognize the need for buying some product (book), they refers
to the internet to buy online and start to search for the information and look for all
the alternatives and finally make a purchase which best fits to their needs. Before
making final purchase consumers are bombarded by several factors which limits or
influence consumers for the final decision.


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The main theme of the study is to know the factors that influence the
consumers attitudes and behaviours towards online shopping. Researchers will also
focus on how consumers form such attitudes with the help of models and who are
truly the online shoppers.
Generally speaking the trend of e-commerce has been increased rapidly in the
recent years with the development of internet and due to the easy accessibility of
internet usage. Easy access to internet has driven consumers to shop online.
Online shopping is third most popular activity on the internet after email using
and web browsing. Globally more than 627 million people have done online shopping
so far, Worlds biggest online shoppers include Germans and British. Books, airline
tickets/reservations, clothing/shoes videos/games and other electronic products are
the most popular items purchased on the internet.
On the other hand E- commerce has been grown very fast because of many
advantages associated with buying on internet because of lower transaction and
search cost as compared to other types of shopping. Through online shopping
consumers can buy faster, more alternatives and can order product and services with
comparative lowest price.


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The above model shows a relationship between dependent variable (DV) and
independent variables (IDV). Consumer attitudes towards online shopping are
perceived as dependent variable whereas convenience, time saving, website
design/features and security are the independent variables that influence the
consumers to shop online. The research model developed by the writers will serve as
a basis for this research and it will help in analysing and interpreting the empirical
results.


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FUTURE OF ONLINE SHOPPING IN INDIA

The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$
785.12 billion by 2015 http://www.ibef.org/industry/retail.aspx). Currently 3% of
retail transactions occur online, which will grow to 7-9% by 2016.


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Each Web property receives on an average 150,000 Unique Users / Day
(Growing > 100% annually).
In a month these properties reached around 4% of the Indian Population
Users spent about 8 minutes per visit, enough time to research and buy.
Primary customers are Young Graduate Males, Middle Income Groups. Long
tail in terms of lower Income groups is also visible
Early adoption amongst the Under 15 and 15-24 Age group who will lead
consumption in the coming decade.
Metros and Tier one cities account for roughly half the traffic, with the
remainder distributed across India. Showing the long tail of users.


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MICRO INFORMATION


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MYNTRA
Myntra.com is ranked among the leading e-commerce companies in India and
is the largest online retailer of lifestyle and fashion products. The company was
started by a group of IIT/IIM graduates in 2007 and is headquartered in Bangalore.
Funded by top tier Venture Capital Funds, Myntra is among the best funded e-
commerce companies in the country today.
Myntra, which started as an online destination for personalized products back
in 2007, has expanded into broader lifestyle and fashion retailing. Today, Myntra is
the largest online lifestyle retailer with over 200 national and international brands
under its banner.
Who started it?
MYNTRA was established by Mukesh Bansal, Ashutosh Lawania, and Vineet
Saxena in February 2007. All three are IIT alumni, and have worked for several start-
ups. Myntra is headquartered in Bangalore and has been funded by top tier Venture
Capital funds like IndoUS, IDG & Accel Partners.
How MYNTRA started?
The company started off in the business of personalization of products, and
soon expanded to set up regional offices in New Delhi, Mumbai and Chennai. It
began its operations in the B2B (business to business) segment with the
personalization of gifts, which included T-shirts, mugs and caps to name a few.
However, in 2010, the company shifted its strategy to becoming a B2C (business to
customer) oriented firm, expanding its catalogue to fashion and lifestyle products.
From 2007 to December 2010, Myntra.com was in the business of online
demand personalization. The products ranged from T-shirts, mugs, greeting cards,
calendars, key chains, diaries, wine glasses, coasters and many such products with
photographs, one-liners and slogans. In three years, Myntra became one of the
Indias largest on-demand personalization platform for products and gifts with over a
50% market share.


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What MYNTRA does?
MYNTRA has tied up with top fashion and lifestyle brands in India, such as
Nike, Inc., Reebok, Puma, Adidas, Asics, Lee, Lotto, Decathlon, FIFA, John Miller,
Indigo Nation etc. to offer a wide range of current season merchandise from these
brands
Myntra currently offers products from more than 200 Indian and international
brands. These include shoes for running, tennis, football, basketball and fitness,
along with casual footwear from world-renowned industry leaders like Nike, Puma,
Converse, Adidas, Decathlon, Reebok, Lee Cooper, Numero Uno, Skechers, Crocks,
Asics, Fila, Lotto, ID and many more. There are also casual and dressy footwear for
women from Catwalk, Carlton London and Red Tape to name a few.
Myntra also stocks T-shirts for men and women from popular brands like
Jealous 21, Forever New, Classic Polo, Inkfruit, Lee, Nike, Inc., Probase, Puma, Adidas,
Reebok, Ed Hardy, Decathlon, Lotto, Ediots, Mr. Men, Tantra and Guerilla. The
website has also launched Being Human and Fastrack watches.
Myntra also offers sports jerseys of several cricket and football teams such as
Team India, IPL teams, national football teams, and Premier League football teams.
These jerseys could be personalised with a name and number of the customers
choice.
Myntra offered sports jerseys of several cricket and football teams such as
Team India, IPL teams, national football teams, and Premier League football teams.
These jerseys could be personalised with a name and number of the customers
choice.
Myntra has brought in a new level of professionalism and technology
enablement to the e-commerce space in India. For consumers, this translates to
superior experience, broader product selection and unmatched efficiency, thus
adding to a better purchasing decision.
The company's unique offerings include the largest in-season product
catalogue, 100% authentic products, cash on delivery, and 30 day return policy,
making Myntra the preferred online shopping destination in the country. 663000
people like the myntra page on facebook.


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MYNTRAS Awards
CNBC - TV18 Young Turks Award as one of the "Hottest Internet Companies of
the Year 2011-12"
"Pride of India 2011-2012" for Most Successful Fundraising by IDG Ventures
"Pride of India 2009-2010" award for Exceptional Business Growth by IDG
Ventures
Red Herring Global 100 winner 2010
Team
At the helm of Myntra's success is a management team of experienced and
high caliber senior management professionals from globally recognized
organizations such as Microsoft, Google, Intel, Trilogy and SAP, to name a few.
The company has an employee base of over 400+ employees from a mix of
corporate, business and premier academic institutions like IIMs and IITs who
love to have fun and balance work at the same time.


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Business Model Of MYNTRA
Myntra.com is an aggregator of many brands. Its business model is based on
procuring current season merchandise from various brands and making them
available on the portal at the same time as in respective retail brand outlets. All
these products are offered to customers on MRP.
In October 2007, Myntra received a seed funding from Accel Partners
(formerly Erasmic Venture Fund), Sasha Mirchandani from Mumbai Angels and
another angel investor. In November 2008, Myntra raised with it a funding of $5
million from NEA-IndoUS Ventures, IDG Ventures and Accel Partners. In the second
round of funding led by Tiger Global and participated by existing investors IDG
Ventures and Indo-US Venture Partners, Myntra raised $14 million.
Towards the end of 2011, Myntra.com raised $20 million in its third round of
funding led by Tiger Global. Myntra launched a brand campaign with its first TVC in
July 2011. The commercial 'juxtaposes new-age fashion with old-world grit' and
positions Myntra as a 'fashionable new age' brand. Myntra's second campaign, with
the tagline "Ramp It Up", was launched in October 2011 with a TVC. The new ad
scored high on fashion quotient and the core message was to communicate the
launch of the Autumn Winter 2011 collection on Myntra.com.
In February 2012, Myntra also rolled out an OOH (out of home) campaign
across Tier 2 cities, to build brand awareness and promote online shopping. In June
2012, Myntra launched its third campaign. Created by Taproot, the communication
emphasises the benefits of buying online, and is titled 'Real life mein aisa hota hai
kya'.
Myntra.com was announced as a winner of the Red Herring Global 100 award.
Red Herring announced its Global 100 awards in recognition of leading private
companies from North America, Europe, and Asia, celebrating these startups'
innovations and technologies across their respective industries. CNBC - TV18
awarded Myntra.com as one of the Hottest Internet Companies of the Year at the
Mercedes - Benz CNBC - TV18 Young Turks Awards. It crossed 160 million dollars last
year. Myntra is one of the leading online shopping portals which have the largest
online catalogue of over 350 international and national brands.
More than 400,000 people daily visit the site.
Myntra's deliveries crossed 8,000 and is now tracking a $100 million revenue in
financial year 2013.


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Flipkart went live in 2007 with the objective of making books easily available
to anyone who had internet access. Today, we're present across various
categories including movies, music, games, mobiles, cameras, computers,
healthcare and personal products, home appliances and electronics,
stationery, perfumes, toys and still counting!
Who started FLIPKART?
MANAGEMENT TEAM

Sachin Bansal, CEO and Co-founder. He graduated from IIT-Delhi with a
degree in Computer Engineering. In 2006 he joined Amazon.com in India which he
later left to set-up Flipkart.
Binny Bansal, COO and Co-founder. Binny went on to get a degree in
Computer Engineering from IIT Delhi. He had a brief stint at Amazon before taking
the entrepreneurial plunge with Flipkart.

Mekin Maheshwari, President, Technology. Mekin completed his B.E. from
PESIT Bangalore in 2002. He started his career with Yahoo! and then went on to join
Ugenie where he created we read, a successful social network around books.
At Flipkart, Mekin is responsible for overseeing the companys technological
operations. These include innovation and application of technology in areas starting
from supply chain to website management.

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Sujeet Kumar, President, Operations. Sujeet completed his engineering from
IIT Delhi. He worked in the KPO industry and orchestrated several freelance projects
before joining Flipkart in 2008.

Karandeep Singh, CFO. He has a Bachelors Degree in Commerce from Delhi
University (Gold Medalist) and is a member of the Institute of Chartered Accountants
of India (ICAI). He is also a fellow member of Aspen Leadership Network, associated
through its India Leadership Initiative. Prior to joining Flipkart, Karandeep held the
position of Vice President (Finance) & Managing Director at Sapient Corporation Pvt.
Ltd.

How FLIPKART works:-
With over 11.5 million book titles, 14 different categories, more than 3 million
registered users and sale of 30000 items a day, we can say with utmost
confidence that Flipkart is one of the leading e-commerce players in the
country.
They believe that their success is largely due to our obsession with providing
our customers a memorable online shopping experience. Be it our path-
breaking services like Cash on Delivery, a 30-day replacement policy, EMI
options, free shipping - and of course the great prices that we offer. Then
there's one dedicated Flipkart delivery team that works round the clock to
personally make sure packages reach on time. For now they're present in 37
lucky cities, but don't worry, plans are underway to spread to many others.
So it's no surprise that they are a favourite online shopping destination.
Online book seller FlipKart aims a revenue of Rs. 100 crore in next fiscal as it
plans to expand portfolio by introducing electronic gadgets and mobile
phones.
Tag line at FLIPKART:-
TRUST IS MORE IMPORTANT THAN LOWER PRICES.

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Jabong.com is a young and vibrant company that aims to provide good quality
branded products. Jabong.com caters to the fashion needs of men, women and kids
across footwear, apparel, jewellery and accessories.
What JABONG offers:-
At Jabong.com we strive to achieve the highest level of Customer Satisfaction
possible. Our cutting edge E-commerce platform, highly experienced buying team,
agile warehouse systems and state of the art customer care centre provides
customer with:
Broader selection of products
Superior buying experience
On-time delivery of products
Quick resoulution of any concerns

Tag line of Jabong.com:-
"No Questions Asked Return Policy!"

If you see the Unique visitor count, Jabong.com is attracting close to 50% more traffic
than Flipkart.com which is phenomenal given that jabong.com has only been in
market for about 9 months.
Yes, obviously they are investing piles of cash in advertising, but they are also backing
it with up with great service.
I have ordered 3 times via jabong.com and my experience has been absolutely
brilliant. They offered great prices, great variety for most of their products and best
of all, their customer support has been top notch.

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For a new site like Jabong, to get all the processes and people in place in such
a short time is really commendable.


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Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global
commerce platform and payments leader connecting millions of buyers and sellers.
We do so through eBay, the world's largest online marketplace, which allows users to
buy and sell in nearly every country on earth; through PayPal, which enables
individuals and businesses to securely, easily and quickly send and receive digital
payments; and through GSI, which facilitates ecommerce, multichannel retailing and
digital marketing for global enterprises. X.commerce brings together the technology
assets and developer communities of eBay, PayPal and Magento, an ecommerce
platform, to support eBay Inc.'s mission of enabling commerce. We also reach
millions through specialized marketplaces such as StubHub, the world's largest ticket
marketplace, and eBay classifieds sites, which together have a presence in more than
1,000 cities around the world. For more information about the company and its
global portfolio of online brands, visit www.ebayinc.com
E-BAY India (www.ebay.in) is India's leading online marketplace. eBay India
(www.eBay.in ), India's leading ecommerce marketplace, is India's largest online
shopping website where thousands of Indian entrepreneurs list a wide range of
products across Electronics, Lifestyle, Collectibles and Media categories. eBay India
has 4 million registered users from 3,311 cities in India. eBay India is a 100%
subsidiary of eBay Inc.
Thousands of sellers sell on eBay India daily across 2000 categories of
products over a wide range of products including Lifestyle, Media, Collectibles&
Electronics. At any given time, there are over 7 million live listings on eBay India.
In 2009, eBay India launched Global EasyBuy - The International Online
Shopping Destination - which provides Indian shoppers with instant access to an
unprecedented 18 million products at any given point of time. Global EasyBuy
(www.ebay.in/geb) is aimed at redefining the Indian retail landscape and will provide
savvy Indian shoppers access to the world's hottest labels and coolest brands from
the comfort of their home. Global EasyBuy is a pioneering service in the country that
enables Indian shoppers to purchase directly from international eBay sites, pay a
single price (inclusive of product cost, shipping and any applicable duties) in Indian
Rupees and get assured doorstep delivery.

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What e-bay offers?
On an average day on eBay India:-
A mobile accessory sells every 1 minutes
A health or beauty product sells every 1 minute
A portable storage device sells every 2 minutes
A coin or a note sells every 2 minutes
A mobile handset sells every 2 minutes
A piece of home dcor sells every 2 minutes
A car or bike accessory sells every 3 minutes
A piece of apparel sells every 3 minutes
A stamp sells every 4 minutes
A piece of jewellery sells every 3 minutes
A watch sells every 5 minutes
A book or magazine sells every 6 minutes
A fitness & sports item sells every 7 minutes
A toy sells every 8 minutes
A tablet sells every 11 minutes
A home appliance sells every 11 minutes
A piece of office supplies sells every 17 minutes
A pair of footwear sells every 20 minutes
A digital camera sells every 20 minutes
A laptop sells every 23 minutes

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A baby care product sells every 34 minutes
A pair of sunglasses sells every 37 minutes
A MP3 player sells every 37 minutes
A TV sells every 43 minutes


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BENEFITS OF E-BAY
DEALER-BUYER BENEFITS:-
Access to aggregated vehicle inventory from various sellers at one place
Inspection led bidding
An independent & transparent platform that enables equal opportunity trade
Opportunity to bid across states and across vehicle categories
A simple, easy to use product with dedicated customer support
CORPORATE-SELLER BENEFITS:-
A liquid marketplace for high inventory turnover
High Conversion Rates for the vehicles listed on the platform
A transparent audit friendly process that ensures fair trade
Efficient market pricing through exposure of stock to a large audience of
14,743 dealers across the country
KEY FAST FACTS
Founded in 2002 as part of Baazee.com (now eBay India), eBay India Motors is
the largest single B2B Motors marketplace in India.
A vehicle sells every 15 minutes on the eBay India Motors platform
Over 14,743 dealers from 295 cities in India are registered on the platform
On an average day, there are over 188 vehicles for auction.


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SURVEY QUESTIONNAIRE


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SURVEY QUESTIONNAIRE
This survey is solely done for the official use of the Academic Research
Project on Consumers Behaviour towards Online Shopping for L. J. Institute of
Business Administration. The information provided will be solely used only for the
authenticity of the Survey & the Conclusions derived thereof.
Note: You may tick ( ) multiple options as & when required.
1) Personal information:
a. Full Name : _________________________________________
b. Mobile no.: _________________________________________
c. Email : _________________________________________
2) Gender : Male Female
3) Age group :
a. Below 18 b. 18 30 years
c. 31 50 years d. 50 & above
4) Occupation :
a. Student b. Employee
c. Professional d. Businessman / Businesswoman
5) Monthly Income :
a. Rs. 10000 25000 b. Rs. 25000 35000
c. Rs. 35000 Rs. 50000 d. Rs. 50000 & above
6) Approximate monthly expenditure on shopping :
a. < Rs. 2000 b. Rs. 2000 5000
c. Rs. 5000 10000 d. Above Rs. 10000
7) Are you aware of Online shopping?
a. Yes b. No
If Yes, which websites are you aware of?
1. Flipkart.com
2. Jabong.com
3. Myntra.com

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4. ebay.in
Others, please specify _____________________________________
8) Do you think online shopping is advantageous over traditional shopping?
a. Yes b. No
9) Do you think Cash on Delivery (COD) is better than credit/debit cards?
a. Yes b. No
If Yes, why?
____________________________________________________________
10) Do you think online shopping is helpful to consumers in e-business domain?
a. Yes b. No c. Cant say
If yes, how?
a) It broadens consumer choice
b) It avails price transparency
c) Fastens transaction process

11) Do you think e-commerce facilitates more effective business transactions?
If yes, how?
a) Comprehends consumers demand effectively
b) Fuels business by creating customer & business network
c) Ensures guarantee of give & take

12) Do you think online shopping has increased over the years in India?

13) Do you agree online shopping can provide a better marketing channel by
eliminating middlemen?


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14) According to you, which category has the largest market share in e-
commerce?
a. B2B b. B2C c. B2G d. Cant say
15) What are the challenges for online shopping in India?
a. Access of Internet
b. Lack of Trust
c. Lack of consumer awareness
d. Security concerns
16) What measures would you recommend for promotion of e-shopping & e-
commerce in India?
a. Ease of Internet access
b. Increasing consumer awareness
c. Integrated promotional approach
17) According to you, what is the future of e-shopping in India?
a. Very good b. Good
c. Not so good d. Doesnt have any
18) Which is the most prominent domain in e-commerce in India, according to
you?
a. Matrimony
b. Education
c. Real Estate
d. Travel & Tourism
e. Consumer goods
f. Banking

19) Do you shop online?
a. Yes b. No

Please answer the following set of questions if you dont shop online.

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If you do, kindly skip this section & answer the next set of questions.
20) You dont shop online because of :
a. No internet access
b. Unawareness about the procedure of online shopping
c. Lack of trust
d. No debit/credit cards
e. High cost of products
If any other reason, please specify
_____________________________________________________________
21) Will you opt for e-shopping over traditional ways in the future?
a. Yes b. No c. Probably yes d. Cant say
22) Which factors do you think will induce you to opt for online shopping?
a. Positive response of family & friends
b. Getting debit/credit cards
c. More simplification of buying procedure
d. Attractive offers/gifts/discounts by such websites
e. Just by chance


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If you shop online, then kindly answer the following questions :
24) How often do you shop online?
a. Weekly b. Monthly
c. Quarterly d. Rarely
25) What is your average monthly expenditure on online shopping?
a. < Rs. 1000 b. Rs. 1000 Rs. 2000
c. Rs. 2000 Rs. 3000 d. above Rs. 3000
26) For how many years have you been shopping online?
a. Less than a year b. 1 3 years
c. 3 5 years d. above 5 years
27) Do you think online shopping is a status symbol?
a. Yes b. No
28) What do you shop online the most?
a. Apparels b. Books
c. Electronics d. Travel & Tourism
If others please specify
_____________________________________________________________
29) Which is your most preferred mode of payment?
a. Cash on Delivery (COD) b. Credit cards
c. Debit Cards d. Demand Draft
30) According to you which are the 5 best websites for e-shopping?
a. ____________________________
b. ____________________________
c. ____________________________
d. ____________________________
e. ____________________________


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31) What influences your perceptions towards such websites the most?
a. Reviews published in mass media
b. Friends / Colleagues opinion
c. Family members opinion
d. Information & offers published on such websites

32) Please mark the website you prefer the most for shopping online.
a. Flipkart.com
b. Myntra.com
c. Jabong.com
d. ebay.in
Others please specify
_____________________________________________________________
Please specify the major reasons for choosing this website
_____________________________________________________________
33) Have you ever switched over from your most preferred website to another?
a. Yes b. No
If yes, why?
a. Poor after sales services
b. Absence of CoD
c. Less options
d. High prices
e. Poor quality of goods
f. No response to complaints
g. Just for a change


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34) What after sales services do you expect from online sellers?
a. __________________________________________________________
b. __________________________________________________________
c. __________________________________________________________
d. __________________________________________________________

Please give your valuable suggestions for online retail companies for enhancing
the future prospects of e-shopping in India
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________
_________________________________________________________________


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ANALYSIS of questionnaire


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SHOPPERS
Q1. Age Group
Age Male % Female %
Below 18 4 5.34 7 16.28
18-30 66 88 29 67.44
31-50 5 6.66 6 13.95
50 & Above 0 0 1 2.33
Total 75 100 43 100

Male
Female 0
10
20
30
40
50
60
70
80
90
Below 18
18-30
31-50
50 & above
5.34
88
6.66
0
16.28
67.44
13.95
2.33
Male
Female
INTERPRETATION:-
According to our survey of 200 people the survey is very much dominated by
people falling in age group of 18-30 i.e. 88% males and 67.44% of females. It
means that our data is youth dominated with a very little competition from
other age group of below 18 5.34 males and 16.28% females falling under this
group

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Q2. Occupation (Shoppers)
Occupation Male % Female %
Student 42 56 27 62.8
Employee 17 22.66 8 18.6
Professional 5 6.66 7 16.28
Businessman 11 14.68 1 2.32
Total 75 100 43 100

0
10
20
30
40
50
60
70
Student
Employee
Professional
Businessman
56
22.66
6.66
14.68
62.8
18.6
16.28
2.32
Male
Female
INTERPRETATION:-
In our survey the occupation of shoppers is heavily influenced by
students being the highest with 56% and 62.8% males and females
respectively. Employed persons come second in both categories of male and
female with 22.66% and 18.6% respectively .

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Q3. Average monthly expenditure on shopping.
Expenditure
(Rs.)
Male % Female %
<2000 9 12 10 23.25
2000-5000 42 56 19 44.19
5000-10000 16 21.33 11 25.6
10000 & above 8 10.97 3 6.96
Total 75 100 43 100

Average monthly expenditure on shopping (Male) = Rs. 4746.67
Average monthly expenditure on shopping (Female) = Rs. 4441.86

0
10
20
30
40
50
60
<2000
2000-5000
5000-10000
10000 & above
12
56
21.33
10.97
23.25
44.19
25.6
6.96
Female (%)
Male (%)
INTERPRETATION:-
In our survey, males have shadowed females in terms of average
monthly expenditure with 4746.67 Rs. as against 4441.86 by females.
56% males spending in between 2000-5000 and females falling under
this group is 44.19%.

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Q4. Are you aware of online shopping?
If Yes, which sites are you aware of?
1. Flipkart.com
2. Jabong.com
3. Myntra.com
4. Ebay.in
Aware Male % Female %
Yes 75 100 43 100
No 0 0 0 0

Sites Rank
Flipkart.com 1
Jabong.com 4
Myntra.com 3
Ebay.in 2

INTERPRETATION:
According to our survey, 100% people are aware about online
shopping and 1
st
rank is secured by flipkart.com while 2
nd
rank
is given to ebay.in and 3
rd
and 4
th
rank are secured by
myntra.com and jabong.com respectively.

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Q5. Do you think online shopping is better than traditional way of shopping?
Male % Female %
Yes 61 81.33 32 74.42
No 14 18.67 11 25.58
Total 75 100 43 100

0
20
40
60
80
100
Yes
No
81.33
18.67
74.42
25.58
Female (%)
Male (%)
INTERPRETATION:-
According to our survey, 81.33% males and 74.42%
of females find that online shopping is better than
traditional shopping methods, while 18.67% males
and 25.58% females deny it.

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Q6. Do you think COD is better than Credit/Debit cards?

Male % Female %
Yes 63 84 36 83.72
No 12 16 7 16.28
Total 75 100 43 100

Male (%)
Female (%) 0
10
20
30
40
50
60
70
80
90
Yes
No
84
16
83.72
16.28
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, 84% in both categories of males and
females agree to the fact that COD is better than debit/credit cards.
Whereas 16% of males and females think the other way.


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Q7. Do you think online shopping is helpful to consumers in e-business domain?
If Yes, how?
a. It broadens consumer choice
b. It avails price transparency
c. Fastens transaction process

Options Male % Female %
Yes 51 68 33 76.74
No 6 8 2 4.65
Cant Say 18 24 8 18.61
Total 75 100 43 100

Male
Female
0
10
20
30
40
50
60
70
80
Yes
No
Can't Say
68
8
24
76.74
4.65
18.61
Male
Female

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Q8. Do you think e-commerce facilitates more effective business transactions?
If Yes, how?
a. Comprehends consumers demand effectively
b. Fuels business by creating customer & business network
c. Ensures guarantee of give & take

0
20
40
60
80
Yes
No
Can't Say
73.33
6.67
20
62.8
18.6
18.6
Female (%)
Male (%)
Yes 55 73.33 27 62.8
No 5 6.67 8 18.6
Cant Say 15 20 8 18.6
Total 75 100 43 100
INTERPRETATION:-
According to our survey, 73.33% males and 62.8% females
think that e-commerce facilitates more effective transactions as
they comprehend consumers demand effectively, whereas there
is less competition from no and cant say with less than 26% of
males and 37% females replying negative.

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Q9. Do you think online shopping has increased over the years in India?

Yes 75 100 41 95.32
No 0 0 1 2.34
Cant Say 0 0 1 2.34
Total 75 100 43 100

Male (%)
Female (%)
0
20
40
60
80
100
Yes
No
Can't Say
100
0
0
95.32
2.34
2.34
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, 100% males in our list voted
that yes online shopping has increased over the years, same
was the case with females as 95.32% females agree to the fact
that online shopping has increased over the years. Whereas
other categories such as no and cant say get one vote each
with 2.34% each.


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Q10. Do you agree that online shopping can provide a better marketing channel by

Yes 60 80 36 83.72
No 11 14.67 3 6.97
Cant Say 4 5.33 4 9.31
Total 75 100 43 100

0
10
20
30
40
50
60
70
80
90
Yes
No
Can't Say
80
14.67
5.33
83.72
6.97
9.31
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, we found out that 80% males and 83.72%
females think positive about online shopping portals not engaging
middlemen and it provides better marketing channel. Whereas persons
denying it are very less.


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Q11. According to you, which category has the largest market share in e-
commerce?

B2B 11 14.67 5 11.63
B2C 57 76 27 62.8
B2G 0 0 1 2.32
Cant Say 7 9.33 10 23.25
Total 75 100 43 100

14.67
76
0
9.33
11.63
62.8
2.32
23.25
0
10
20
30
40
50
60
70
80
B2B B2C B2G Can't Say
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, 76% males voted for B2C being the most used domain
also females backing the males with 62.8% votes, while B2B getting second rank in
the list and third is B2G with negligible voting.


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Q12. According to you, what is the future of e-commerce in India?

Very Good 52 69.33 24 55.8
Good 23 30.67 19 44.2
Not so good 0 0 0 0
Doesnt have
any
0 0 0 0
Total 75 100 43 100

69.33
30.67
0 0
55.8
44.2
0 0
0
10
20
30
40
50
60
70
80
Very good Good Not so good Doesn't have any
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, 69.33% of shoppers think that
future of online shopping is very good and 55% of female shoppers
agree with males.30.67% males and 44.2% females think that the
future is good.


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Q13. Which is the most prominent domain in e-commerce in India according to
you?

Domain Rank
Matrimony 4
Education 5
Real Estate 6
Travel & Tourism 2
Consumer goods 1
Banking 3

0
10
20
30
40
50
60
70
Matrimony
Education
Real Estate
Travel & Tourism
Consumer goods
Banking
31
21
17
60
68
49
Rank
Rank
INTERPRETATION:-
According to our survey, the domains are ranked by votes
given by online shoppers and in that 1
st
rank is secured by
consumer goods, while 2
nd
rank is given to travel and
tourism,3
rd
4
th
and 5
th
rank is secured by banking, matrimony
and education respectively and last rank is secured by real
estate.

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Q14. How often do you shop online?

Weekly 10 13.33 3 6.97
Monthly 25 33.33 12 27.9
Quarterly 8 10.67 10 23.25
Rarely 32 42.67 18 41.88
Total 75 100 43 100

Male (%)
Female (%) 0
5
10
15
20
25
30
35
40
45
Weekly
Monthly
Quarterly
Rarely
13.33
33.33
10.67
42.67
6.97
27.9
23.25
41.88
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, most online shoppers shop
sometimes according to their need with 42.67% males and
41.88% females shopping sometimes while 33.33% males and
27.9% females shop monthly. And also 13.33% males and
6.97% females shop every week from online shopping websites.


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Q15. What is your average monthly expenditure on online shopping?

<1000 14 18.67 16 37.2
1000-2000 28 37.33 16 37.2
2000-3000 19 23 6 13.9
3000 & above 14 21 5 11.7
Total 75 100 43 100

0
5
10
15
20
25
30
35
40
<1000
1000-2000
2000-3000
3000 & above
18.67
37.33
23
21
37.2
37.2
13.9
11.7
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, men tend to spend more
on online shopping on an average, as compared to
women who shop online. 37.33% men spend Rs.
1000- Rs. 2000 on an average while shopping
online, similar to women.

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Q16. For how many years you have been shopping online?

Less than a
year
25 33.33 23 53.5
1-3 years 38 50.67 17 39.53
3-5 years 9 12 2 4.65
Above 5 years 3 4 1 2.32
Total 75 100 43 100

33.33
50.67
12
4
53.5
39.53
4.65
2.32
0
10
20
30
40
50
60
Less than a year 1-3 years 3-5 years above 5 years
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, from the shoppers
33.33% males and 53.5% females are shopping online
since less than a year whereas 50.67% males and 39.53%
females are shopping since 1-3 years .Whereas the
shoppers who are shopping since long time like above 3
years are 16% males and 7%.

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Q17. Do you think online shopping is a status symbol?

Yes 38 51 18 41.86
No 37 49 25 58.14
Total 75 100 43 100

Male (%)
Female (%)
0
10
20
30
40
50
60
Yes
No
51
49
41.86
58.14
Male (%)
Female (%)
INTERPRETATION:-
51% males think that online shopping is a
status symbol whereas females think otherwise
with 58.14% votes in no. This shows that males
and females have differences in opinion about
status symbol.


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Q18. Most preferred website.

INTERPRETATION:-
According to our survey, flipkart is ranked 1
st
by getting maximum
number of votes, 2
nd
rank goes to myntra, while 3
rd
and 4
th
ranks are e-bay
and jabong respectively.

66
41
25
38
Rank
Flipkart.com
Myntra.com
Jabong.com
Ebay.in

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Q19. Have you ever switched over from your most preferred website to another?

Yes 41 54.67 24 55.81
No 34 45.33 19 44.19
Total 75 100 43 100

Male
Female
0
10
20
30
40
50
60
Yes
No
54.67
45.33
55.81
44.19
Male
Female
INTERPRETATION:-
According to our survey, 54.67% males and 55.81% females have
shifted from one website to other because of loopholes in the
portals like absence of COD whereas 45.33% males and 44.19%
females are loyal to their present website and dont wish to
change.


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NON-SHOPPERS
Q1. Age Group

Option Male % Female %
Below 18 4 9.3 8 20.5
18-30 32 74.42 28 71.8
31-50 3 6.97 3 7.7
50 & above 4 9.31 0 0
Total 43 100 39 100

Male (%)
Female (%) 0
10
20
30
40
50
60
70
80
Below 18
18-30
31-50
50 & above
9.3
74.42
6.97
9.31
20.5
71.8
7.7
0
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, maximum number of non-shoppers fall
under the age group of 18-30 with 74.42% males and 71.8% of females
falling under this group. The other 3 categories dont give enough
competition 9.3% males and 20.5% females below 18. 31-50 category
get 6.97% males and 7.7% females whereas 50+ gets 9.31% of males and
no females .

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Q2. Occupation
Occupation Male % Female %
Student 18 41.86 25 64.1
Employee 16 37.2 9 23.09
Professional 4 9.3 4 10.25
Businessman 5 11.64 1 2.56
Total 43 100 39 100

.

0
10
20
30
40
50
60
70
Student
Employee
Professional
Businessman
41.86
37.2
9.3
11.64
64.1
23.09
10.25
2.56
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, non-shoppers get a huge share from students
with 41.86% from males and 64.1% from females, while 37.2% males and
23.9% females fall under employed group. 9.3% males and 10.25%
females are professional and in business category there are 11.64% and
2.56% males and females respectively

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Q3. Approximate monthly expenditure on shopping.
Expenditure Male % Female %
<2000 12 27.9 16 41.02
2000-5000 19 44.19 17 43.59
5000-10000 9 20.93 4 10.25
10000 & above 3 6.98 2 5.14
Total 43 100 39 100

Average monthly expenditure on shopping (Male) = Rs. 4093
Average monthly expenditure on shopping (Female) = Rs. 3218

.
Male (%)
Female (%) 0
5
10
15
20
25
30
35
40
45
< 2000
2000-5000
5000-10000
10000 &
above
27.9
44.19
20.93
6.98
41.02
43.59
10.25
5.14
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, non-online shoppers spend lesser amount per month as
compared to the ones who shop online . the average monthly expenditure of males is very
much higher than females leaving them far behind with Rs.4093 as against Rs.3218 by
females. Non online shoppers spend between 2000-5000 with 44.19% males and 43.59%
females shop between this amount

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Q4. Are you aware of online shopping?
If Yes, which sites are you aware of?
1. Flipkart.com
2. Jabong.com
3. Myntra.com
4. Ebay.in
Aware Male % Female %
Yes 43 100 39 100
No 0 0 0 0

Sites Rank
Flipkart.com 1
Jabong.com 3
Myntra.com 3
Ebay.in 2

0
10
20
30
40
50
60
Flipkart.com Jabong.com Myntra.com Ebay.in
53
38 38
44
Rank
Rank
Interpretation:-
According to our survey, amongst the non-online shoppers flipkart wins
the race.

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Q5. Do you think online shopping is better than traditional way of shopping?

Male % Female %
Yes 13 30.23 19 48.72
No 30 69.77 20 51.28
Total 43 100 39 100

Male (%)
Female (%)
0
10
20
30
40
50
60
70
Yes
No
30.23
69.77
48.72
51.28
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, from the non-
online shoppers 69.77% males dont agree that
online shopping is better than traditional
shopping, and there was a tough competition
in females with 48.72% say yes it is better and
51.28% deny it.

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Q6. Do you think COD is better than Credit/Debit cards?

Male % Female %
Yes 27 62.8 29 74.35
No 16 37.2 10 25.64
Total 43 100 39 100

Male (%)
Female (%)
0
10
20
30
40
50
60
70
80
Yes
No
62.8
37.2
74.35
25.64 Male (%)
Female (%)
INTERPRETATION:-
According to our survey, there was a great resemblance in the answers given
by males and females to the above question with huge responses are in positive
favour with 62.8% males and 74.35% females replying positively yes that COD is
better than credit/debit card whereas there is very less competition from the ones
denying it with 37.2%, males voting in negative and 25.64% females denying it.

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Q7. Do you think online shopping is helpful to consumers in e-business domain?
If Yes, how?
d. It broadens consumer choice
e. It avails price transparency
f. Fastens transaction process
Yes 18 41.86 20 51.29
No 11 25.58 6 15.38
Cant Say 14 32.56 13 33.33
Total 43 100 39 100

0
10
20
30
40
50
60
70
80
90
100
Yes
No
Can't say
41.86
25.58
32.56
51.29
15.38
33.33
Female (%)
Male (%)
INTERPRETATION:-
According to our survey, 41.86% males and 51.29% females think
that online shopping is helpful to consumers by broadening
consumers choice and also there is price transparency whereas
25.58% males and 15.38% females say that it is not so. And 32.56%
males and 33.33% females cannot say anything about this issue.

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Q8. Do you think e-commerce facilitates more effective business transactions?
If Yes, how?
a. Comprehends consumers demand effectively
b. Fuels business by creating customer & business network
c. Ensures guarantee of give & take

Yes 17 39.53 16 41
No 11 25.58 12 30.78
Cant Say 15 34.89 11 28.22
Total 43 100 39 100

0
10
20
30
40
50
Yes
No
Can't Say
Female (%)
Male (%)
INTERPRETATION:-
According to our survey, we got some positive response from non-online shoppers
with 39.53% males and 41% females think that online shopping provides them
with more effective transactions as they comprehend consumers demand
effectively. Whereas25.58% males and 30.78% females replied in negative for this
question.

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Q9. Do you think online shopping has increased over the years in India?

Yes 31 72.1 30 76.92
No 4 9.3 6 15.38
Cant Say 8 18.6 3 7.7
Total 43 100 39 100

0%
20%
40%
60%
80%
100%
Yes
No
Can't say
72.1
9.3
18.6
76.92
15.38
7.7
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, from the non-online
shoppers, 72.1% males and 70.32% females think that
online shopping has increased over the years. Whereas
18.6% males and 7.7% females answered cant say.


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Q10. Do you agree that online shopping can provide a better marketing channel by

Yes 21 48.83 18 46.15
No 8 18.6 11 28.21
Cant Say 14 32.57 10 25.64
Total 43 100 39 100

0
10
20
30
40
50
Yes
No
Can't say
48.83
18.6
32.57
46.15
28.21
25.64
Female (%)
Male (%)
INTERPRETATION:-
According to our survey, 48.83% males and 46.15% females said
that online shopping has created better marketing channel by neglecting
middlemen .Whereas 32.57% males and 25.64% females cannot decide.


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Q11. According to you, which category has the largest market share in e-
commerce?

B2B 5 11.63 5 12.82
B2C 20 46.51 25 64.1
B2G 3 6.97 0 0
Cant Say 15 34.89 9 23.08
Total 43 100 39 100

Male (%)
Female (%) 0
10
20
30
40
50
60
70
B2B
B2C
B2G
Can't Say
11.63
46.51
6.97
34.89
12.82
64.1
0
23.08
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, in the above category non online shoppers voted
maximum for the B2C category with 46.14% males and 64.1% votes from females
while 34.89% male and 23.08% females couldnt decide which to vote.

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Q12. According to you, what is the future of e-commerce in India?

Very Good 9 20.9 12 30.77
Good 24 55.83 23 58.97
Not so good 9 20.9 2 5.13
Doesnt have
any
1 2.37 2 5.13
Total 75 100 39 100

Male (%)
Female (%) 0
10
20
30
40
50
60
Very good
Good
Not so good
Doesn't have
any
20.9
55.83
20.9
2.37
30.77
58.97
5.13
5.13
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, 20.9% of males and 30.77%
of females think that future of online shopping is very good,
while a heavy % of 55.83% males and 58.97% females think
that future is good. Whereas there are very less % of
people think that future of online shopping is not good.

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Q13. Which is the most prominent domain in e-commerce in India according to
you?
Domain Rank
Matrimony 5
Education 4
Real Estate 6
Travel & Tourism 1
Consumer goods 2
Banking 3

0
10
20
30
40
Matrimony
Education
Real Estate
Travel & Tourism
Consumer goods
Banking
10
12
6
39
28
22
Rank
Rank
INTERPRETATION:-
According to our survey, from the non-online shoppers the ranks
have been given , maximum votes going to travel and tourism by non-
online shoppers and next being consumer goods coming before banking
,followed by education, matrimony and real estate getting 4
th
,5
th
,and
6
th
rank respectively.


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Q14. You dont shop online because:
a. No Internet access
b. Unawareness about procedure of online shopping
c. Lack of trust
d. No debit/credit cards
e. High cost of products

Rank
No Internet access
Unawareness
Lack of trust
No debit/credit cards
High cost
INTERPRETATION:-
According to our survey, we listed down some problems of non-
shoppers so as to know why they dont shop online and here are the results:-
biggest reason being lack of trust on online shopping portals getting the
highest votes, then being unaware, followed by no internet access, no
internet access and the last being high cost of products.


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Q15. Will you opt for e-shopping over traditional way in the future?

Yes 7 16.28 3 7.7
No 8 18.6 7 17.95
Probably yes 24 55.82 24 61.53
Cant say 4 9.3 5 12.82
Total 43 100 39 100

Male (%)
Female (%) 0
10
20
30
40
50
60
70
Yes
No
Probably yes
Can't say
16.28
18.6
55.82
9.3
7.7
17.95
61.53
12.82
Male (%)
Female (%)
INTERPRETATION:-
According to our survey, we asked the non-online shoppers would
they like to start shopping online and we got a positive response from
them. Maximum votes were given to probably yes category with 55.82%
males and 61.53% females opting out for probably yes. Whereas 18%
males and 18% females deny of ever opting for online shopping clearly
stating they will never opt for online shopping instead go for traditional
shopping methods instead.

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RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY
We will attempt to find the main factors that influences the consumer when
making an online purchase. To broaden our own understanding of the subject, we
conducted our initial research in literature on consumer behaviour and e-commerce.
We reviewed studies that had similar aims and paid particular attention to their
results.
For our own research, we decided that the most appropriate approach would
be a questionnaire that would be filled up by the residents of Ahmedabad.
This study started off as an exploratory study but developed into an
explanatory study as we first attempted to identify what is the consumer behaviour
towards online shopping, gradually gaining insights into the reasons behind
particular behavioural patterns. Havind identified the contributing factors, we
attempted to highlight the major ones amongst them and establishing relationships
between these variables.


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RESEARCH APPROACH
There are two most commonly used research approaches-the inductive and
the deductive method. The inductive research method attempts to set up a theory
on the basis of the collected data while the deductive research approach attempts to
find the theory first and then test It to the observed data.
We chose the deductive research approach for our study will move from the
more general information to the specific information.


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RESEARCH DESIGN AND DATA COLLECTION METHOD

RESEARCH METHOD
Our research regarding Consumers behaviour towards online shopping is a
descriptive research because we aim to draw a detailed picture of the same, also
covering the factors that influence consumers to shop online. In general two types
of research methods are there- quantitative and qualitative. We adopted
quantitative method in our research as it is a more precise and relevant to our topic.
According to Creswell (1994) time is vital attribute for decision making while
selecting research method. Saunders, Lewis, and Thornhil (2000) suggests that
quantitative research can be faster as compare to qualitative as it is possible to
forecast the time schedule, whereas qualitative can be relatively long in duration.
Research projects normally done for academic reasons are limited to time as our
research is also being done for academic purpose and is time limited so that is why
we prefer quantitative approach for the same.

DATA COLLECTION
There are two methods in general used by researchers to collect data- primary
and secondary method. Primary data includes observation method, Interview/
questionnaire method, case study method, projective techniques and sociometry.
Whereas, secondary data is the data which is already collected by some other
researcher not for the reason for particular study or research.

We used both secondary as well as primary data for our research. Macro
aspects about the project were covered by secondary sources of information
whereas all other areas where studied by conducting a survey of residents of

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Ahmedabad. The survey was conducted by circulating questionnaires questionnaire
amongst the Consumers in Ahmedabad in order to find out what are the factors
that influence consumers to purchase online. As our study Covers Ahmedabad
online/traditional shoppers, we considered it easier to distribute the
questionnaires and then analyse the situation.

SAMPLING
By keeping in view the limitations of time, resources and population writers
have decided to apply convenience sampling technique for the purpose of collecting
empirical material. As time and resources are one the constraints faced by the
researchers convenience sampling is helpful, and it seemed suitable for our research
purpose as we are unaware of the online shoppers in Ahmedabad and besides this
we could not get the list of online shoppers as it was difficult to get the required list
from any authentic source. That is why we decided to circulate our questionnaires
among the residents of Ahmedabad and from malls in Ahmedabad. Again,
convenience sampling was considered more efficient when it came to approach the
respondents and collect the data on time and also to avoid low response rate, as we
were expecting at least 100% response rate.

SAMPLE DESIGN
In a particular research, a procedure that is followed for selecting a sampling
unit is called the sample design. This procedure of selecting a sampling unit is
generally a mixed process. A mixed process as in it consists of conducting survey
online as well as in person to the respondents. The population selected by us for the
study is the general public residing in Ahmedabads mentioned in above paragraph
we have selected convenience sampling technique so sample is designed accordingly
by approaching the respondents by circulating the questionnaires to general public in
Ahmedabad. The purpose of using the mixed process is to collect empirical data
conveniently and on time, as time and resources were also kept in mind by us at
every step of this thesis.


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SAMPLE SIZE
As stated earlier, the population for the research is the general public of
Ahmedabad and keeping in view the limitations of time and resources we decided to
take the sample of 200 random people we encountered.

Questionnaires were circulated by hand to respondents and enough time was
given to respondents to fill the questionnaires accurately, so as to minimize the
sampling error. Questionnaire is constructed in simple language in order to reduce
the risk of ambiguity.


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QUESTIONNAIRE DESIGN
The questionnaire is carefully designed to meet the requirements of the
research. The questions are taken from previous literature on Consumers attitudes
towards online shopping with a view to validate the research more and some of the
questions are self-structured to cover the diversity of research problems.

The questionnaire consists of 3 parts broadly:
The first part consists of general questions in terms of demography about all
the respondents, irrespective of whether they shop online or not.
The second part is meant to be responded by those respondents who dont
shop online, so that we could find out the proportion of traditional shoppers
along with the reasons behind their reluctance to shop online.
The third part is meant to be responded by those respondents who shop
online, so that we could find out the proportion of online shoppers along with
the reasons behind their preference for online shopping.


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S.W.O.T ANALYSIS


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STRENGTHS:-

Youth of India is voting maximum for online shopping as they dont have much
time to spend for shopping by going at different places rather they tend to
compare prices at their home and shop online.
Target segment for online shopping portals are students and employed
persons till age group of 40. And in our survey this point is proved as
maximum online shoppers in our primary data are students and employed
persons.
Maximum people think that online shopping is more comfortable as they
dont need to go shop to shop for purchases.
Best service that online shoppers provides in todays date is of COD as
consumer can get a trial at home and they can check the product themselves
and then pay.
Also with 30 day return policy being adopted by maximum companies online
shopping can go to new heights.
Most non online shoppers tend to turn to online shopping as they are
attracted but were scared by providing information but with COD they now
tend to shift.
A lot of cost is being incurred by portals in making advertisements which
customers love to see like the flipkart ads take children as in lead role which
attract the customers heavily.


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WEAKNESS:-

Fear still prevails in most of the people above 40 age group, but with cod in
place this fear may subside with passing of time.
Many females are yet to think about shifting to online shopping so online
portals need to focus on luring females.
Many persons are yet not aware about what online shopping actually is ,so
government as well as portals need to find a way to bring more awareness
regarding online shopping and its benefits.
As internet Is the only thing that connects consumer with portals that may
cause problems to consumers.


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OPPORTUNITIES:-
Online portals have great opportunities in youth and employed persons and
the youth is the core consumer and this shopping convenience will prevail till
a long time.
Purchasing power of people in India is increasing day by day which is a
positive sign for online portals as they spend more on shopping.
With convenience to buy and pay after delivery, many non-online shoppers
will shift to online shopping.
With services that they provide and product quality and branded products
there is great opportunity for online companies.


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THREATS:-
There are not much threats to face In the portals but still the main threat that
may prevail for online shopping portals is fear of providing personal
information.
Companies who dont provide cod may face problems from persons who dont
want to provide their card information.
Traditional shoppers who are loyal to their stores from where they have been
shopping all these years , it will be a tough task to make them shift from their
base.


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OBSERVATIONS


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It was a great experience for us as a student of BBA to experience and
understand aspects of business and this project helped us out to relate us with
business environment. We observed a lot of things while preparing this project and
different stages of preparing this project helped us observe many things. We
observed many aspects of not only online shopping but also business as a whole.
While the 3 stages of preparing the project
The Questionnaire phase
Analysis phase
Editing phase

The most important question for us was to understand with increase in
internet usage by the people do they change with time and trends. Which we did till
some extend but could not as the time provided was less also the sample size that
we had to deal with was not to be more than 200. As a result what we could finish
with was an analysis of 200 random people.
1. QUESTIONNAIRE FILL-UPS:-

The first thing we observed in the Questionnaire fill-up stage was that youth
doesnt have much problem with changing with time ,whereas the people above 50
were quite reluctant in using technology for their purchases. Most people wanted
and are willing to purchase online but are scared that their information can be
misused. One big thing that we observed in the questionnaire phase was that Online
shopping is a hit in youth.
Maximum number of online shoppers in our survey are youth who are willing
to shop online and now with a great option of COD online shoppers are very happy
and also the ones who dont shop online are willing to shift their base from
traditional shopping methods to online shopping.
2. ANALYSIS PHASE:-
While we were in the analysis phase we observed a few very interesting facts
as to what benefits the online shopping portals provide or what they think about
their online shopping portals.74% of online shoppers in our survey think that e-
commerce comprehends consumers demand effectively and also 68% online

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shoppers think that online shopping provides them with broader choices and
selections and it avails price transparency with fast transactions.
38% males and 37% females from online shoppers spend at least Rs.1000-2000.
We also observed that 51% of males who shop online are using it since 1-3
years whereas females 53.5% use it since less than a year.
55% of males and 56% of females have switched from one website to other
and the reasons were like lack of COD and not proper services and many were just
wanted to try other websites out.
Also the non-shoppers had some positive response towards online shopping
as56% males and 59% females think that future of online shopping is good in India.
3. EDITING PHASE:-
Every information was to be checked before finalising the report, as we could
not add each and every information because of restricted page limit and time . Also it
was very difficult to clarify what information and data to be taken and to be
neglected. We tried our level best to provide and show authentic data and hard
work. All the members in our group had different ideas and way of working and we
tried our best to sum it up.


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FINDINGS


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FINDINGS
We as students of BBA were quite happy with our topic as we could get
knowledge of what are the current trends and situations going on in the market and
what better topic could we get than consumer behaviour towards online shopping
which is growing by leaps and bounds in Indian market. We had a base of 4 online
shopping companies that were 1. Myntra.com 2. Jabong.com 3.E-bay.in 4. Flipkart.

It was great to go amidst the youth and the experienced lot and ask their
reviews regarding the latest and happening thing in the market.
We went face to face and had conversations with 200 persons and these were
our samples and we filled up questionnaires from them and the data used in this
project is because of them.
One very good thing about this project is the challenge to decide between the
2 questions:-
Is online shopping better than traditional shopping?
If there would not have been COD would the impression of online portals
would have been same in a country like India?
We got some punch lines from the persons whom we interviewed and most
interesting were 2 punches one from online shoppers and other from non-online
shopper:-
Why do people always believe what they cant see clearly and follow it blindly,
there may be a pothole ahead but people dont understand and end up in
problem.
This online portals are such a boon and save so much of my time that I can
spend some good time with my family which I had to waste when I went
shopping.


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FINDINGS IN ACCORDANCE TO OUR SURVEY


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According to our survey of 200 random people , we found out that 118 of
them were regular online shoppers. Which is very good sign for the fast
growing business portal of e-commerce.
Of those 118 online shoppers 43 were female, which again is a positive thing
and breaks the myth that females are afraid or dont intend to shop online
much.
The dominating age group of our survey boasts of a hefty 88% of males and
67.44% of females falling under the age group between18-30.While the
weakest being above 50 age group with just 2.33% of persons shopping online
that too female.
The occupation group dominated by students with 56% of male shoppers and
62.8% female shoppers falling under this group, followed by 22.66% and
18.6% of male and females respectively which are employed. And 6.66%
males and 16.28% females are professionals, while 14.68% of males are
businessmen and 2.32% females are into business.
In our survey, the myth of women being the more spendthrift is broken as the
average expenditure on shopping made by men is more than women i.e.
4746.67 by men as compared to 4441.86 by women. The dominating group of
expenses is 2000-5000 for 56% males and 44.19% females spending amount
between 2000-5000.
100% people in our sample survey of 200 are aware of online shopping.
The new idea of payment being launched i.e. C.O.D is getting great positive
response from the buyers, 84% of males and same number of females
consider C.O.D to be better than credit or debit cards. As they can see and try
the products at home before paying.
100% males think that online shopping has increased over the years and the
females also agree to the same with a positive number of 95.32%.
80% males and 83.72% females think that as there are no middlemen online
shopping provides better marketing channel.
The market share in e-commerce being dominated by B2C (business to client)
with 76% males and62.8% females giving their vote to B2C.


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According to our survey, 69.33% males and 55.8% females think that future of e-
commerce is very good, and remaining 30.67% of male and44.2% of females think
that it is good. No shoppers think that future is bad for e-commerce.
51% males and 41.86% females think that online shopping is a status
symbol.
The most prominent domain is consumer goods ranked 1 in our survey.


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LIMITATIONS


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LIMITATIONS
Though it was a great experience in preparing this project along with great
experience and learning that we got we also had to deal with a few limitations.
TARGET COMPANIES:- There were not many online portals that we had to
choose from we had to take the top 4 companies as our base as other portals
were not much known. Only data that we could get was from the internet as
no online shopping company has a head office in Ahmedabad. And also these
4 companies dont form 100% market which was the biggest limitation.
FINANCIAL LIMITATIONS:- As the report was done by students we were not
left with much of financial support and had to be within reach of our pockets
and thus could not go on a larger scale to do full justice to the concept.
Though we tried our best to do with the resources we had.
SAMPLE SIZE:- As we were bound by the resources and time and also the
instructions given by mentors, we had only 200 sample persons which dont
form whole market and we had to conclude the report based on only 200
samples.
LACK OF TIME:- Time that we could devote was less as the topic of research
was such huge and vast and we could not find enough time to away as our
base had to be Ahmedabad.
LACK OF EXPERTISE:- Except for our project guide Mr.Saurin Shah and our
honourable director Mrs.Rupal Shah we didnt have much expertise help from
any of the companys side or outside.
SECONDARY DATA:- As we had to heavily depend on the data published in
newspaper and internet sources we had no other area of access to secondary
data . As we could not travel to any of the head offices which are either based
in Bangalore or Delhi, we were bound to take secondary data from internet
and newspaper.


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SUGGESTIONS


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


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CONCLUSIONS
The study entitiled Consumer behaviour towards online shopping has been
undertaken with the objective, to analyse the consumer behaviour of people in
Ahmedabad city towards online shopping.
Analysis of the study was undertaken with the help of survey conducted. After
analysis and interpretation of data it can be said that along with the whole world and
whole country even a tier-2 city like Ahmedabad is also changing trends and also it is
responding in a very positive manner towards the revolutionary change in methods
of shopping. Not everyone wants to shift their bases but the people who find it
feasible and helpful it is definitely a change to be happy about.
The online shopping websites have found a strong base amongst youngsters
and employed professionals who cannot spend hours in malls for shopping or who
doesnot want to wait in a queue. And with the latest facility of Cash on Delivery and
footstep delivery we can estimate a lot of consumer base to be shifted to online
portals. From our survey we can say that Consumer is the king, and there are already
many kings in the market who want their plates to be ready and served and there
will be many more kings in future wanting the same to happen atleast the things that
they find easier to access and helpful in time saving.
Thus we found that there is a long way and great future for online shopping
and the perception is also rapidly changing and the change is positive. Though many
people think that it is a cool trend to shop online and many find it helpful what we
conclude is that it is blend of both and that its future is bright and they will be
keeping the red carpet ready for the customers waiting to shop.


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The Huffington Post
Kotler and Armstrong
Marketing Research 12
th
edition.
Marketing Management by Kotler and Keller.
The Times of India.
Myntra.com.
Flipkart.com.
Jabong.com.
Ebay.in
Yahoo finance.
Google finance help.
Articles in print media.
Indiaitlaw.com


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DECLARATION


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DECLARATION
We hereby declare that the grand project on the study of Consumer
Behaviour towards Online Shopping is original to the best of our knowledge and has
not been published elsewhere.
This is for the award of degree of bachelors of business administration.

SR.NO. NAME ROLL NO. SIGNATURE
1 SIDDHARTH IYER 47
2 RAJ JOISAR 55
3 KEVAL AMRELIYA 05
4 DHANRAJ SOLANKI 145
5 DHAIRYAH MANEK 78
6 AKASH GUPTA 43
7 SANDEEP OJHA 86
8 BHOOMI KOTADIA 66
9 SIMPY HARWANI 45
10 BINNY MACHCHHAR 71

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L.J.

INSTITUTE OF BUSINESS ADMINISTRATION

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