Sei sulla pagina 1di 70

RESEARCH PROJECT

ON

“CONSUMER PREFERENCE TOWARDS ONLINE SHOPPING FOR


BRANDED CLOTHES”

In partial fulfillment of the requirement for the award of the degree of


MASTERS OF BUSINESS ADMINISTRATION

Submitted

To:- By:-
Dr. Ritesh Dwivedi Rashi Kirola (B58)
Devanshu Ahuja (B30)

AMITY BUSINESS SCHOOL,NOIDA

SECTOR-125
ACKNOWLEDGEMENT

In pursuing and completion of my MBA and other commitments, we


undertook the task of completing my project on “CONSUMER
PREFERENCE TOWARDS ONLINE SHOPPING FOR BRANDED CLOTHES” .
We fortunate in having sought and secured valuable guidance,
continuous encouragement and strong support at every stage of my
guide and supervisor Dr. Ritesh Dwivedi and we deeply grateful to his.
We want to acknowledge the help provided by our guide and friends.
The precious inputs provided by them have helped in compiling this
report.
We express my deep-hearted thanks and gratitude to all of those who
helped me in this Project.

Rashi Kirola
Devanshu Ahuja

2
CERTIFICATE

This is to certify that the Project Work entitled “” is a record bonafide


work carried out by “, RASHI KIROLA and Devanshu Ahuja” at
AMITY BUSINESS SCHOOL affiliated to AMITY UNIVERSITY,
NOIDA, under my supervision towards partial fulfillment for the award
of the degree of “MASTERS OF BUSINESS ADMINISTRATION”

Project Guide: Dr. Ritesh Dwivedi

Date:

3
CHAPTER -1
INTRODUCTION

4
1.1INTRODUCTION
Online shopping has become a growing trend in the retail world today, particularly in developed
nations. Statistics show that the amount of shoppers purchasing online are rising and the quantity
of their purchases is also increasing rapidly. This change began in the 1990s when e-commerce
blew up and significantly transformed the landscape of the retail environment. Consumers are
using the internet not just to buy goods and services, but also to browse online shops or to attain
knowledge about potential purchases. The atmosphere in online shops is also becoming an
important factor to consider for marketers when looking for ways to satisfy the consumers. There
is evidence to prove that online shopping is likely to be seen as a complement or substitute to
offline shopping.

Internet is changing the way consumers shop and buys goods and services, and has rapidly evolved
into a global phenomenon. Many companies have started using the Internet with the aim of cutting
marketing costs, thereby reducing the price of their products and services in order to stay ahead in
highly competitive markets. Companies also use the Internet to convey, communicate and
disseminate information, to sell the product, to take feedback and also to conduct satisfaction
surveys with customers. Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities they will receive if they purchase
the product from a particular store. Many experts are optimistic about the prospect of online
business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential customers. Although
most of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence. It has been more than
a decade since business-to- consumer E-commerce first evolved. Scholars and practitioners of
electronic commerce constantly strive to gain an improved insight into consumer behavior in
cyberspace. Along with the development of E-retailing, researchers continue to explain E-
consumers’ behavior from different perspectives. Many of their studies have posited new emergent
factors or assumptions that are based on the traditional models of consumer behavior, and then
examine their validity in the Internet context. Onlineshopping is definitely a great way to shop
with everything available on the websites. From clothes, gift items, food, home needs, medicines,

5
and many more, this mode of shopping allows one to shop conveniently without hassle on spending
hours in a supermarket orshopping areas. The Internet with its wide array of information nooks,
allows the customer to go through various reviews of the product or service before actually heading
for purchases.These online shopping websites also have daily deals for the customer looking for
discounts and store offerings.

Increasing numbers of people are gravitating towards more intensive use of the Internet as the
accessibility of technology, the availability of information, and the ability to interact through the
Internet increase and evolve. Obvious capabilities of the Internet include avenues for gathering
information, purchasing a product, or rendering a service. These advances in Internet technology
allow for the expansion of shopping options beyond traditional methods that may be more time
consuming. Issues with having to physically gather information with offline shopping methods are
alleviated, and customers are better able to efficiently use their time.

For instance, instead of having to physically visit different stores to compare prices or rely on
circular pamphlets in newspapers, a consumer is able to search and retrieve needed information
through the Internet. The Internet explosion has opened the doors to a new electronic world.
Consumers are now able to use the Internet for a variety of purposes such as research,
communication, online banking, and even shopping. With such advantages, the Internet is rapidly
becoming the main method of communication and of conducting business conveniently. With a
growing number of households turning towards the Internet and the world of e-commerce to shop,
invest, make payments, and do online banking, new technological advancements will have to come
about to make these transactions secure. However, not all consumers are participating in online
transactions as part of the Internet boom. As more and more businesses continue to establish an
online presence, they are finding that some consumers are still reluctant to shift in that same
direction.

For various consumers there are still concerns with security and passing personal data over the
Internet. There is a disparity between the number of consumers who visit a site and the number of
actual purchases being made. Despite the millions of people who use the Internet every day and
visit various shopping sites, the number of consumers who do not abandon their shopping carts
but actually complete a purchase averages to only about three percent. This leaves a large portion
of the Internet population as non-participants in online transactions as compared to those who fully

6
complete transactions online and make purchases. Instead, these non-participants may abandon the
purchase completely or fulfill the transaction in an offline setting.

As such, it is important for online businesses or offline businesses interested in venturing into the
online market to understand their consumers’ perceptions, online and offline, and what factors
influence their shopping decisions. With better understanding of what factors play into consumer
decision making in making transactions online or offline, retailers and businesses can be better
gear themselves to serving their customers in either of the shopping venues.

CONSUMER PERCEPTION

"When it comes to influencing consumers to purchase a product, their perception of the brand
must be taken into account. This perception may vary based on the customer or a certain
demographic of customer. Customer perception can be developed from a variety of factors, such
as their own personal experience or how they have heard other people experienced the product.”

"It refers to how customers view a certain product based on their own conclusions. These
conclusions are derived from a number of factors, such as price and overall experience"

Consumer preferences is used primarily to mean to select an option that has the greatest anticipated
value among a number of options by the consumer in order to satisfy his/her needs or desires.
Preferences indicate choices among neutral or more valued options available. The preference of
the consumer is the result of their behavior they show during searching, purchasing and disposing
the products.
The underlying foundation of demand, therefore, is a model of how consumers behave. The
individual consumer has a set of preferences and values whose determinations are outside the realm
of economics. They are no doubt dependent upon culture, education, and individual tastes, among
a plethora of other factors. The measure of these values in this model for a particular good is in
terms of the real opportunity cost to the consumer who purchases and consumes the good. .

As we go along, we will establish a vocabulary in order to explain the model. Development of the
model will be in three stages. After a formal statement of the consumer’s objectives, we will map

7
the consumer’s preferences. Secondly, we present the consumer’s budget constraint; and lastly,
combine the two in order to examine the consumer’s choices of goods.

The theory of consumer preference is the branch of microeconomics that relates preferences to
consumption expenditures and to consumer demand curves. It analyzes how consumers maximize
the desirability of their consumption as measured by their preferences subject to limitations on
their expenditures, by maximizing utility subject to a consumer budget constraint.

Consumption is separated from production, logically, because two different economic agents are
involved. In the first case consumption is by the primary individual; in the second case, a producer
might make something that he would not consume himself. Therefore, different motivations and
abilities are involved. The models that make up consumer theory are used to represent
prospectively observable demand patterns for an individual buyer on the hypothesis of constrained
optimization. Prominent variables used to explain the rate at which the good is purchased
(demanded) are the price per unit of that good, prices of related goods, and wealth of the consumer.

The law of demand states that the rate of consumption falls as the price of the good rises, even
when the consumer is monetarily compensated for the effect of the higher price; this is called
the substitution effect. As the price of a good rises, consumers will substitute away from that good,
choosing more of other alternatives. If no compensation for the price rise occurs, as is usual, then
the decline in overall purchasing power due to the price rise leads, for most goods, to a further
decline in the quantity demanded; this is called the income effect.

ONLINE SHOPPING
"It is a form of electronic commercewhich allows consumers to directly buy goods or services from
a seller over the Internet using a web browser. Consumers find a product of interest by visiting the
website of the retailer directly or by searching among alternative vendors using a shopping search
engine, which displays the same product's availability and pricing at different e-retailers. As of
2016, customers can shop online using a range of different computers and devices."

"It is the process of buying goods and services from merchants over the Internet. Since the
emergence of the World Wide Web, merchants have sought to sell their products to people who

8
spend time online. Shoppers can visit web stores from the comfort of their homes and shop as they
sit in front of the computer"

WHY SHOP ONLINE?


Online shopping is more efficient in meeting the consumers’ needs and wants. It allows the
consumers to easily attain knowledge about the brand’s product quality, availability, product
specifications and prices, and compare that with those of another brand. This means they can
now make more intelligent purchasing decisions in a way which is not possible through
traditional shopping

Moreover, they can purchase anonymously which is convenient when it comes to personal
products that they may feel uncomfortable buying in stores.
It seems that people nowadays, especially young adults, are becoming more conscious about
personal image and fashion. For these types of consumers, shopping is an entertaining, pleasure-
filled activity that is like an escape.

It is important to note that such shoppers are looking for good service standards too. In terms of
online shopping, the consumer satisfaction will be high if, for instance, the company has a user-
friendly website which makes shopping through it seem like a stimulating experience (Strategic
Direction, 2012). Online retail shops often market themselves through low price. For example,
Amazon.com uses this tactic to attract consumers.

These low price online retail shops are causing a great consumer surplus.
When shopping online, consumers can compare prices and look at alternative options. Websites
such as Yahoo Shopping aid in making this comparison with just a few clicks.

Furthermore, on online shopping websites, consumers have access to other customers’ reviews
which can guide their purchasing decision. To comprehend consumers’ reasons to take part in
shopping online, it is important to take into consideration the situational factors that lead to it.

9
The reason most shoppers like to make online purchases is due to high accessibility and great
convenience. Shopping from home saves them the effort of travelling because it allows them to
shop right from their house.
This is especially good for people who have long working hours and not much spare time to shop,
as the internet allows consumers to shop at any time during the 24 hours in a day.
Therefore,
• One of the key situational factors is the time limitation.
• Another factor is immobility; this is found in consumers who are unable to go out
shopping to stores due to problems such as an illness or a physical disability
• The third situational factor is geographical as it is related to the distance consumers often
need to travel for the stores which have the items they need.

Consequently, online shopping helps them overcome this burden. For instance, many people
residing in busy cities may not have the appropriate transportation to travel to more affordable
shops. They may be forced to shop at the costly town centers if it was not for the option to shop
online The next factor relates to situations when a specific good is needed to be purchased and it
is not available in traditional shops. An example of this is plus-sized clothes or shoes’, thus online
shopping is an easy option to obtain such goods. How appealing alternatives are is the last
situational factor. This means that if a store in the consumer’s area is selling the same good as an
online store, the consumer may find the brick-and-mortar approach to shopping more attractive
.Overall; convenience is a major factor which motivates consumers to opt for online shopping.

Most of the present literature research regarding convenience has focused on the brick-and-
mortar traditional retail environment. There has been comparatively less exploration into
convenience in online shopping.

Online retailing provides benefits in terms of place and timeshoppers can be saved from spending
time going to crowded malls.

The fact that online shoppers can gain access to a vast amount of information on goods and
services they are interested in also relates to convenience. E-retailers can use this to their

10
advantage and create loyalty amongst customers.Online shoppers are more acquainted with
convenience rather than experience. For them, convenience is the most significant aspect when
making purchases as they have limited time and are not as bothered by the idea of purchasing
goods without physically touching them.

UNDERSTANDING OF BRAND AND BRAND VALUE

A brand, as defined by Keller, is “a product, but one that adds other dimensions that differentiate
it in some way from other products designed to satisfy the same need.
These differences may be rational and tangible – related to product performance of the brand –
or more symbolic, emotional, and intangible – related to what the brand represents”. Mariotti
(1999) defines a brand as “a simplified ‘shorthand’ description *package of value upon which
consumers and prospective purchasers can rely to be consistently the same (or better) over long
periods of time*. It distinguishes a product or service from competitive offerings”. Khalid
Mahmood Khan, director of Kay Kraft, an emerging local brand said that the key to ensure brand
loyalty is to increase the value of the brand in the mind of the consumer. He also argued that to
build brand value, factors such as product improvements, package design, communicating the
competitive positions and promotion.

WHY BRANDING REQUIRED?


• Branding is a tool for sales promoting in the market. o
• Branding aid in knowing the customer’s requirements o
• It facilitates easy advertisement and publicity o It creates special consumer preference over
the product.
• To identify key competitive issues in the textile and apparel industry
• To satisfy the customers demand towards a branded product

CUSTOMER BEHAVIOUR TOWARDS BUYING


Variations in customers like and dislike, the cognitive growth and motivation force them to act in
various ways in purchasing clothing’s products. Individual may not act in the same way always,

11
customers act consistently and we have tried to figure out the customers in below groups according
to their buying behavior.
• A habit – determined group of brand loyal consumers who tend to be satisfied with the
product or brand last purchased.
• A price – cognitive group of consumers who decide principally upon the basis of price or
economy comparison.
• Group of customerswho emphasize on products quality like design, style, raw materials
etc.
• Group of customers who buy products being attracted on aesthetic and functional
properties of those products.
• A cognitive group of consumers who are sensitive to rational claims.
• An impulse group of consumers who buy on the basis of physical appeal and are relatively
insensitive to brand name.
• A group of emotional reactors who respond to product symbols and are heavily swayed
by images.
• A group of new consumers who haven’t yet stabilized the psychological dimensions of
their behavior

12
HANDPICKED BRANDS ARE AS FOLLOWS AS PER VARIOUS ONLINE
SHOPPING WEBSITES
CATEGORY: Men's Shirt
Brand Name: JACK & JONES
The story of JACK & JONES begins in 1990 when bestseller sends a young, fiery soul to the Oslo
fashion fair with a modest, but carefully chosen collection aimed at young men. The reception
exceeds all expectations and the creation of a new menswear brand is a reality. In the following
years JACK & JONES manifests itself as one of the strongest jeans brands on the market and
within a few years, the brand has several hundred stores. Today JACK & JONES is one of Europe’s
leading producers of menswear with more than one thousand stores in 38 countries and
JACK & JONES clothes are sold by thousands of wholesale partners all over the world. Jeans are
still regarded as the backbone of JACK & JONES’ business. The brands are designed by
independent design teams, each one of them with their own ideas, concepts and designs. They all
offer a full range of clothes, accessories and footwear for every man and every occasion. JACK &
JONES have widely spread their connectivity throughout the online giants including Amazon,
Flipkart, Myntra, Snapdeal, Jabong, Shopclues, EBay, etc. with wide range of clothing including
Shirts, T-shirts, Trousers, Jeans, and Footwear. It is one of the leading brands all over the world.

CATEGORY: Men's T-shirt


Brand Name: U.S. Polo Ass.
The U.S. Polo Assn. brand is the official brand of the United States Polo Association (USPA), the
governing body of the sport of polo in the United States. The Association's trademarks and logos
registered worldwide are managed by USPA Properties, Inc., a wholly owned subsidiary of the
USPA. The brand incorporated in 1981. USPA Properties, Inc. partners with licensees in North
and South America, Asia, Europe, Scandinavia, Russia, and the Middle East to provide consumers
with branded apparel, accessories, luggage, watches, shoes, small leather goods, and eyewear and
home furnishings. Products are available in more than 135 countries at independent retail stores,
department stores and U.S. Polo Assn. brand stores. As a for-profit corporation, USPA Properties,
Inc. pays taxes on its profits generated by sales from U.S. Polo Assn. products and pays royalties
to the USPA for the exclusive rights to license its trademarks. Since incorporation in 1890, U.S.
Polo Assn. has realized total global retail sales in excess of $1 billion. The royalties paid by USPA

13
Properties, Inc. to the USPA enables them to promote the sport of polo and underwrite educational
and training programs such as benefits for the Association's player members, support training
centers for interscholastic and intercollegiate polo competition and fund programs in umpiring,
competition and equine welfare.

CATEGORY: Men’s Jeans


Brand Name: LEVIS
Levi Strauss & Co. is a privately owned American clothing company known worldwide for
its Levi's brand of denim jeans. It was founded in May 1853 when Levi Strauss came
from Bettelheim, Bavaria; to San Francisco, California to open a west coast branch of his brothers'
New York dry goods business. The company's corporate headquarters is located in the Levi's Plaza
in San Francisco.
Modern jeans began to appear in the 1920s, but sales were largely confined to the working people
of the western United States, such as cowboys, lumberjacks, and railroad workers. Levi’s jeans
apparently were first introduced to the East during the dude ranch craze of the 1930s, when
vacationing Easterners returned home with tales (and usually examples) of the hard-wearing pants
with rivets. Another boost came in World War II, when blue jeans were declared an essential
commodity and were sold only to people engaged in defense work.

CATEGORY: Men’s Trousers


Brand Name: Peter England
Peter England was founded in 1889; Londonderry, Ireland to provide British soldiers with fine
Khaki trousers during the Boer War. More than a century later, Peter England made its foray into
the Indian market in 1997. The brand was acquired by Aditya Birla Group in 2000 and quickly
went on to become India’s Leading Menswear Brand. The brand was listed in top 5 most trusted
brands in apparel category for 7 consecutive years. And keeping in sync with the youth, Peter
England offers apparel that caters to every fashion occasion of a young professional’s life.
Through a robust distribution network, Peter England is present across 150 towns and cities, with
700+ exclusive brand outlets and presence across 3000+ multi-brand outlets. Peter England’s
CRM program, ‘Milestone’, is one of the largest in the country with a customer base of over 4

14
million, and has been awarded the ‘Best Customer Relationship Program’ at Customer Loyalty
Summit 2017.

CATEGORY: Women’s Kurta


Brand Name: W
Born in 2001, the brand W is a part of TCNS Clothing Private Limited. The dream of two brothers
– Mr. OS Pasricha and Mr. AS Pasricha came to reality when W started its journey with an aim to
provide fashion in a modern retail environment to the Indian woman.

It is the only brand in the Indian retail space which offers ‘Indian contemporary’ wear and stays a
step ahead of the fashion curve. The pioneer in introducing the concept of ‘Mix n Match’ in retail,
W designers take inspiration from the latest fashion trends & forecasts from the west and transform
them into silhouettes and styles acceptable to the modern Indian woman.

Its first brand Store was opened in 2001-2002 at Lajpat Nagar, New Delhi. And now when they
are standing in 14th year the store count is 350+ across the globe. The idea is not to grow only
within India but internationally. W’s exclusive brand outlets are now present in Mauritius &Sri
Lanka and are now looking forward to expand in more countries.

CATEGORY: Women’s Kurta


Brand Name: BIBA
BIBA Apparels Private Limited (BIBA), the Indian fashion giant, stands true to its name. The
brand has been dressing and embellishing demure maidens from every corner of India since 1986.
Contemporary ethnic fashion at an affordable price is BIBA's commitment to fashion enthusiasts,
offering ladies'churidars and dupatta sets in cotton, in shades of every color, and with irresistible
color combinations and patterns. Mix-and-match kurta pieces from BIBA are available in different
lengths, so you can experience the joys of traditional Indian wear regardless of your body type.
The word "BIBA" is a Punjabi endearment for a young and pretty girl. It implies sublime qualities,
compelling Mrs. MeenaBindra, the founder of BIBA, to use the name for the line of salwarkameez,
and dupattas that she launched in 1986. What began as a fashionable and affordable line remains
the brand's ethos today: fashion at an affordable price. In time, new range collections were

15
introduced. Today, the mix-and-match range has a very contemporary sensibility, and the salwar-
kameez range is very ethnic, defined by an Indian crafted look, hand-block prints, and vegetable
dyes. Indian handlooms with traditional embroideries and other techniques are applied in
producing the garments. Unstitched suits and a festive collection for two-to-12-year-old girls cater
to the full demands of a woman.

CATEGORY: Women's Jeans


Brand Name: PEPE JEANS
Pepe Jeans was founded in 1973 by three brothers who ran a weekend stall at Portobello Road
Market in London, before expanding to a store in Carnaby Street and then into Europe in the 1980s.
In 1988, Pepe Jeans was owned by Arun, Nitin and Milan Shah.In 2015, Pepe Jeans announced
the Group was adding a new brand, Norton Clothing, a tribute to the British motorcycle brand
founded in 1898. Pepe Jeans London is a denim and casual wear jeans brand established in the
Portobello Road area of London in 1973, and based in SantFeliu de Llobregat, Spain. Carlos Ortega
is the CEO.

CATEGORY: Women's Jeans


Brand Name: DIESEL
Diesel is an Italian retail clothing company, located in Breganze, Italy. It sells denim, and other
clothing, footwear, and accessories. The clothing line has two different brands: Diesel and Diesel
Black Gold. There is also a line for children, called Diesel Kid. The company is known for its
surreal advertising campaigns. Since 2013 the creative director has been Nicola Formichetti.
Diesel founder Renzo Rosso began stitching jeans on a sewing machine at the age of fifteen. He
used his mother’s sewing machine to produce low-riding, bell bottomed jeans, which he would
wear himself and sell to his friends for 3500 lira a piece. He later attended an industrial textile
manufacturing college in Padua.Diesel founder Rosso began purchasing additional fashion
companies in 2002, under the parent company Only the Brave, which Diesel was brought under as
well. Companies purchased by Only the Brave included Maison Martin Margiela, Viktor & Rolf,
Marni, and licensing company Staff International.

16
GIANT PLAYERS IN ONLINE SHOPPING

Amazon.com Inc. (AMZN) is a leading global Internet company and one of the most trafficked
Internet retail destinations worldwide. Amazon is one of the first companies to sell products deep
into the long tail by housing them all in numerous warehouses and distributing products from many
partner companies. Amazon directly sells, or acts
as a platform for the sale of a broad range of
products. These include books, music, videos, and
consumer electronics, clothing and household
products. The majority of Amazon’s sales are
products sold by Amazon, with the remaining amount from third-party sellersitis a customer-
centric company for three primary customer sets: consumers, sellers and enterprises. In addition,
the Company generates revenue through other marketing and promotional services, such as online
advertising, and co-branded credit card agreements.

Amazon was founded in 1994 and is headquartered in Seattle, Washington. It has direct
international operations in the United States, Canada, France, Germany, Japan, and the United
Kingdom.
The Key Features of Amazon are:

1. Quick lead generation – Email has quick output and quick response for lead generation.
2. Selectivity – Email offers the same list selectivity as traditional list rental.
3. Media reinforcement – Email can be an adjunct to any media to quickly reinforce a
message, product announcement, seminar date, or trade show.
4. Cost effectiveness – Email is extremely cost effective on a cost-per-contact basis for
customer acquisition.
5. Higher response – Overall responses may be higher, as only relevant materials will be
sent, which assure a more receptive audience for the offer.
6. Lower costs – There are no production, paper, or postage costs – only the cost of the email
server companies.

17
7. Privacy issues – Subscribers choose to receive email solicitation through a negative
option given upon subscribing. Subscribers are also aware of the source of their name and
are always given the choice to opt out.
8. Customer dialogue – As an interactive medium, email establishes a dialogue with new
and present customers. Repeated messages can create effective brand awareness or a
continued response from and conversation with the customer.
9. Tractability – Email is also a traceable medium, as you can direct responders to answer
through many types of response vehicles.
10. No postal undeliverable–Undeliverable emails are quickly identified and an effort is
made to correct them and resend.

Myntra is one of the most popular online marketplaces for fashion among youth. Myntra.com,
an online retailer, offering 100 brands in apparel,
accessories and footwear in the fashion and lifestyle
category, plans to expand its product category and
warehousing facilities in India.Myntra began
operations in 2007, and was acquired by Flipkart in
2014. It became app-only earlier this year but has recently re-launched its mobile site. The brand
has been regularly advertising in order to capture the mind space and educate customers on buying
online. Being an early mover to the category, it had taken the onus of building it with its call-to-
action and thematic campaigns.Speaking on why it is promoting the leading brands now, though
it has been retailing these since inception, Pinninti pointed that Myntra is simply claiming what
rightfully belongs to it."The ads showcase how Myntra differentiates from other platforms. We
have got people to buy online but the real pull is the huge offering that we have. And today, after
years of expertise in curating best products for consumers, we thought that it is the right time to
tell the rest of the country about what Myntra offers. However, none of the players in the category
have ever spoken about it. We believe that our new proposition is an extremely simple proposition
but yet very powerful,"Myntra is clearly the online version of Shoppers Stop and this campaign
reinforces the belief in a convincing way. It also positions Myntra as a branded marketplace rather
than a pure play product marketplace, something that will hold them in good stead over time, given

18
the expected volatility in the years to come in the e-commerce space. Also it improves their
bargaining power with brands,

Flipkart was founded in 2007 by SachinBansal and


BinnyBansal, both alumni ofthe India Institute of
Technology Delhi. They are not related to each other.
They workedfor Amazon.com, and left to create their
new company incorporated in October 2007 asFlipkart
Online Services Pvt. Ltd. The first product they sold was the book LeavingMicrosoft to Change
the World to a customer from Hyderabad.Flipkart now employs more than 33,000 people.It is an
electronic commerce company headquartered in Bangalore, Karnataka. Flipkart allows payment
methods such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher
and card swipe on delivery.

In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com.
Later, in February 2012, the company revealed its new Flyte Digital Music Store.Flyte, a legal
music download service in the vein of iTunes and Amazon.com, offered DRM-free MP3
downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in
India due to the advent of free music streaming sites.

After the success of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion Sale. Where
it is reported that they saw a business turnover of $300 million in gross merchandise volume. In
2015, Flipkart bought a minority stake in navigation and route optimization startup MapmyIndia
to help improve its delivery using Map my India assets.

As far the clothing brand is concerned Flipkart's top selling brands all over the globe are:
• Forever 21(Women’s casual wear)
• Pantaloons (women’s Indian wear)
• Divastri (women’s ethnic wear)
• Metronaut (Men’s casual wear)
• Wrangler (Men’s casual wear)

19
• United colors of Benetton (Kid’s casual wear)
• The Children’s Place (kid’s fashion)
• Gini&jony (kid’s wear)

Snapdeal is an Indian e-commerce company based in New Delhi,India.It was launched by


KunalBahl, a Wharton graduate and RohitBansal, alumnus of IIT Delhi, in February 2010.
Snapdeal deals with online marketing of products
including Mobiles, Electronics, Fashion accessories,
Apparel, Footwear, Kids, Home and Kitchen, Sports,
Books; and services like Restaurants, Spas &
Entertainment. As of 2016 Snapdeal had 300,000
sellers, over 30 million products across 800+ diverse
categories from over 125,000 regional, national, and international brands and retailers and a reach
of 6,000 towns and cities across the country.

In its journey till now, Snapdeal has partnered with several global marquee investors and
individuals such as SoftBank, Blackrock, Temasek, Foxconn, Alibaba, eBay Inc., PremjiInvest,
Intel Capital, Bessemer Venture Partners, Mr.Ratan Tata, among others.

Snapdeal’s top selling brands

• GAS T-shirts
• Steve Madden Shoes
• DC Casual Shoes
• Quick Silver T-shirts
• GAS Jeans
• VERO MODA
• ONLY
• KAZO
• ENAMOR
• AND

20
FACTORS AFFECTING ONLINE SHOPPING
Online shopping becomes relevant in the last decade. The kind of business online retailer
are doing is proof enough that they are providing some benefits to customer which offline
shopping does not give to the customer. These are the factors affecting online shopping:

1. Risk: When customer buy products from online shopping they do not touch or feel the
product in a physical sense .Hence we understand that lot of risk is involve while buying
an online product whether it will reach us on proper time or not is also a concern and also
there may arise a risk of product size and color as it may differ in real view or sense.
Sometimes the product ordered is kind of damaged.

2. Convenience: Online shopping is much more convenient than offline shopping. Instead
of taking out your vehicle and visit shop to shop you can just sit at your home and do the
shopping. It is convenient to sit at one place and shop the product of our choice without
moving from place to place. Once you have decided on what you want to buy the payment
process is seamless and the order is delivered to your place. Online shopping makes things
more convenient. We can have a lot of choice over there in any kind of material we want
to deal with that too without any fear of dealing with any dealer or distributers. Online
shopping is convenient in its real sense as it do not carry any dealing with issues of asking
for wanted items or issues of asking for desired kind of items which helps in avoiding the
part of waiting, asking, questioning about the product.

3. Anxiety: People’s anxiety of exploring the sites and experimenting over them is also a
matter of concern. Sometimes people those who are not very known to any sites like flip
kart,myntra or any sites they just feel like it’s a tough kind of activity over net and its
complicated in there sense as they are not very fond of doing online shopping as it takes
a time to even understand the product about its details. This particular activity makes
them irritated and anxiesious over any kind of fatal online dealing

4. Previous online experience: How has been a person’s experience in past as far as online
shopping is concerned is a major story of concern. Previous experience is what matters
actually as its hamper or sometime it keep good view or mood of people. There are two
experiences one is about good and another is about bad. Both has its own and different
affect in the mind of buyers. So these factors also influence online shopping or e shopping.

5. Pricing Policy: Online retailers gets an inherent advantage in pricing as they don’t have
to bear expenses like store rent, bills etc. They can pass their price directly to customer
and generally offer a lower price to customer than offline market. Even when shipping
charges are included than also it is better than the offline shopping. Hence, determines
the level of online shopping. Lower the price- higher the mood to demand, higher the

21
price –lower the demand. Price of any commodity also influences the purchasing power
of any specific buyer. Consumer generally prefer mild or normal price with good quality
and do not want to spend or expense lot for any kind of stuff. So buying and selling both
are simultaneously affected by the price of product.

6. Quality: The quality of product at online sites and offline stores vary a lot and then this
determines the frequency of online shopping. Quality also carries good affecting nature
over any kind of shopping. As consumer or buyer want to have a good quality of product
as they spent their huge sum of money. In general, qualities is a primary need over any
kind of purchasing as it somewhat secure or give a good sense of buying or kind of
guarantee about the product preferred.

7. Online trust: It depends on customer perception whether they trust a particular site and
its product and services. Hence the frequency of online shopping also depends upon
whether they trust a particular site or not. People are different in their nature and thoughts,
some kind of people trust online dealing some kind of people are in fear of online dealing.
Trust 6 carry a lot of points examples- trust about the same product size quantity weight
and security etc.

8. Tangibility of the product: At the store the customer gets to touch and feel the product
they purchase before buying which help the customer to take the decision to buy the
product or not whether the product will suit the customer need or not. Whether, we can
and see feel a product is also a reason which determines whether a person’s wants to go
for shopping or not. Tangibility of any product also determines the online shopping.
Without touching the preferred or desired substance nobody can get its security about the
worthiness or quality or sense of any preferred product.

9. Delivery time: The product ordered by the customer in online shopping takes a minimum
of six to seven days to deliver the product to the customer. But in offline shopping the
possession of the goods is immediately transferred to the buyer. So this is a major factor
which affects the online shopping. People want a good delivery time; they prefer to get a
product in a desired time or in short time of duration. Duration is the second major factor
affecting the demand of product.

10. Income: The person whose income is more, do more online shopping as compared to the
person whose income is less. Income plays a major role to purchase online products.
Higher income people prefers to purchase online more than offline as it gives them
reliability and convenient. Higher the income higher wills the purchasing of online
product and vise-versa.

22
1.2REVIEW OF LITRETURE

This chapter presents the issues and factors, ideas and opinions, and results of the research
that others have undertaken in the study area. The conceptual framework that best describes
the theory with the relevant variables identified and discusses how they are related.
A brief literature would be of immense help to the researcher in gaining insight into
selected problem. The researcher would gain good background knowledge of the problem by
reviewing certain studies. A reference to these entire studies will be related in the contest of the
shaping the present study.
Comparing the functioning and ability between various ecommerce shopping sites is a common
task among potential buyers in order to gauge how good their product is in relation to the other
products available on various different sites that are available
A literature review is a select analysis of existing research which is relevant to your topic, showing
how it relates to your investigation. It explains and justifies how your investigation may help
answer some of the questions or gaps in this area of research. A literature review is not a
straightforward summary of everything you have read on the topic and it is not a chronological
description of what was discovered in your field.
A literature review is a text of a scholarly paper, which includes the current knowledge including
substantive findings, as well as theoretical and methodological contributions to a particular topic.
Literature reviews are secondary sources, and do not report new or original experimental work.
Most often associated with academic-oriented literature, such reviews are found in academic
journals, and are not to be confused with book reviews that may alsoappear in the same publication.
Literature reviews are a basis for research in nearly every academic field. Definition A literature
review is an evaluative report of information found inthe literature related to your selected area of
study. The review should describe, summaries, evaluate and clarify this literature. It should give a
theoretical base for the research and help you (the author) determine the nature of your research.
Works which are irrelevant should be discarded and those which are peripheral should be looked
at critically.
1. Kassarjian (1971) in his study hestates that consumer behavior researchers must develop
their own definitions and design their instruments to measure the personality variables that
go into the purchase decision. This study developed apparel buying behavior model on the

23
basis of five dimensions, namely consumer characteristics, reference groups, store
attributes, promotion and product attributes. All these dimensions are created based on the
various research studies on the consumer behavior and also through the opinion of various
experts from the industry and academic institutions.
2. Benedict et al (2001) in hisstudy reveals that perceptions toward online shopping and
intention to shop online are not only affected by ease of use, usefulness, and enjoyment,
but also by exogenous factors like consumer traits, situational factors, product
characteristics, previous online shopping experiences, and trust in online shopping
3. Harris Interactive (2009) in their study of online customer experience .The survey found
that online customer experience reached an inflection point in 2009. The percent of
consumers who have experienced problems when conducting transactions online showed
its first substantial decrease in five years rom approximately 87% in all previous Tealeaf
surveys to 80% in 2009. While the percent of consumers experiencing online transaction
problems, at 80%, remains high (the potential online shopping dollars impacted by
transaction problems rings up at $47.6 billion), this improvement points to a growing
business focus on delivering better customer experiences. The survey sheds light on forces
driving this accelerated online customer experience focus, including the down economy
and increased consumer power due to experience- sharing via social media. It also
examines consumer behavior when transacting online, call center behavior related to online
issues and mobile commerce. Verticals represented in the findings include retail, insurance,
travel and financial services
4. Ruiliang Yan, John Wang (2009) in their research it provides a useful framework to help
business marketers identify the effect of consumer online purchase costs on firm
performances in online and traditional channel competition. A game theory model is
developed to determine the optimal strategies for online and traditional retailers. We
demonstrate that consumer online purchase costs always have a valuable impact on firm
profits, and further show that consumer online purchase costs always have a much more
valuable impact on firm profits whenever the traditional retail transaction costs and the
product web-fit change. We also find that consumer online purchase costs have a greater
impact on the retailer's profits in a Stackel berg competitive system than in a Bertrand

24
competitive system. Based on our results, managerial implications are discussed and
probable paths of future research are identified.
5. Nagesh (2009), describes that Indian retailing will see a sea of change in the next five years
driving consumption boom never seen in the history of any country. From a drought
situation we will see a flood of modern retail, So Indian retail will be on a steady ground
of sustained growth year after year and thereafter.
6. Bikramjit Rishi (2010) in their study on online shopping is an innovative option of
distribution available in the hands of marketers. It is innovative and creative because
marketers can experiment with it in form, content, visibility and availability. In India online
shopping is considered as a relevant alternative channel for retailing and it is now an
important part of the retail experience. This research study is an empirical study to find out
the motivators and decisional influencers of online shopping. The sample has been selected
from the youth population as this group of people actually use internet to buy online. The
study highlights that reliability; accessibility and convenience are the major motivator
factors which motivate the Indian consumer to buy online. Similarly, reluctance and
preference are the two decisional factors which influence the decision.
7. Sahu (2012) describes that a rise in consumer confidence, improvement in profitability and
aggressive expansion plans signal better tidings for listed players in the organized retail
space. Moreover, analysts believe listed retailers could attract foreign investments by
spinning off their subsidiaries into separate companies which can provide a great
opportunity for the improvement of this sector.
8. NamitaBhandari and PreetiKaushal (2013) in their study on online consumer behaviour
using factor analysis and found the reasons for using online shopping like trust, information
about the product and services, convenience, effortless shopping AnandSriram, This study
gives an in-depth analysis of e-retailing in India and gives a clear picture, where India
stands in e-retailing. The study depicts that India has got lot of potential to grab in this area.
But we are still in the infancy stage due to infrastructure shortage and security threats. This
area has to be tapped properly for more foreign exchange Sunil Dutta, It contains different
internet business models, internet revenue generation models and the success of different
models. The article also depicts the prediction of the growth of internet users during recent
years.

25
9. Karim (2013) conducted a study on online shopping behaviour of customers and
documented that online vendors can assure their consumers for transaction security and
avoid long delays in completing online orders and the hassle of returning goods for better
online shopping experience.
10. Morris (2013) conducted a study on ‘More Consumers Prefer Online Shopping’ Shoppers
increasingly want what’s called a “seamless Omni channel experience,” meaning one in
which retailers allow them to combine online and brick and mortar browsing, shopping,
ordering and returning in whatever combo they would like.
11. AmitChakrapani (2015) : The growth of Indian economy and markets has given birth to
a new range of customers who is inclined towards the purchase of braded and quality
products specially the apparels as the youth of the country is now exposed to various
business and professional situations. The economy has resulted in to the development of
markets with new jobs created in the ITES sector, Biomedical, Automotive engineering,
Apparel manufacturing and Civil engineering. The growth is strongly supported by the
education sector with increase in the number of students enrolling for higher education and
large numbers of students graduating every year thus creating a large pool of technical and
managerial manpower. The working class people segment has grown since the economic
growth and it has benefited middle class and upper middle class people. Due to the increase
in the number of working people and substantial raise in income, spending power has
increased over the years, and particularly the young Indians in the age of 15 – 25 like to
shop more. The Government of India has laid down strict rules to protect the environment
and avoiding child labor but there is no legality followed by companies in providing an
ethical environment in means of working time and salary. This study focuses on the
consumer behavior of young Indians in the age of 15 – 25 to understand and know their
perception towards spending and to show a new path for the society and the industry for a
sustainable economic and social environment.
12. Dr. Gopal, R. and DeepikaJindoliya(2016)The origination of the internet created an
entire new experience for consumers regarding gathering information, comparing products
or prices and the possibility of purchasing on the internet. Therefore consumer behaviour
on the internet is an important factor for marketers. To predict consumer behaviour on the
internet marketers need to understand how, where and why consumers behave online. This

26
paper tries to analyse studies done by various researchers in order to explore what online
channels consumers use when they are in a particular stage of the buying decision process
(BDP). The study will create more understanding about why and how on-line consumers
go through their buying decision process (BDP). It will be helpful in drawing a modified
and more effective marketing policy.
13. PradeepKorgaonkar, Ronnie Silverblatt, Tulay Girard, (2006) “Online retailing,
product classifications, and consumer preferences", Internet Research.
To investigate if consumer online patronage is influenced by product category and online
store type. Building on the prior work in this area by the authors and other researchers the
study collected data in two phases to investigate the study hypotheses.
14. Ronald E. Goldsmith (2006), Psychological and behavioural drivers of online clothing
purchase As online purchasing grows in importance, understanding which consumers use
this new distribution channel is an important question for e‐commerce managers and
consumer theorists. The purpose of this study was to examine selected demographic and
psychological characteristics that lead consumers to buy clothing online. It surveyed 805
consumers who described their online clothing buying as well as how innovative and
involved they were for clothing and fashion, how innovative they were with regard to
buying on the Internet, and how much they purchased clothing through catalogues.
Although all these variables were positively correlated with amount of online clothing
purchase, a multiple regression analysis showed that being an adventurous online buyer
and a heavy catalog shopper had the most impact on online clothing buying. These findings
imply that online apparel buying is motivated more by Internet innovativeness than by
clothing innovativeness.
15. AmandeepKaur, Dr. GarmiaMalik (2015)Indian markets are emerging and when it
comes to Delhi, it's not just a metropolitan city but a fashion hub. International designers
organize their fashion shows and bring international brands into this city. With the Indian
demographics changing, there is a change in consumer tastes and preferences with respect
to the association they want to crate with the brand. This study was conducted to find out
the factors that determine the consumer preferences for international apparel brand in
Delhi. The purpose is also to identify the predictors for internal brand apparels among Delhi
young consumers. From the survey of the respondents from Delhi, the study found out that

27
Advertisement for the brand has the strongest predictor for the consumer preference
followed by quality and Land of original and style has less prediction towards the consumer
preference. Overall, the survey shows that Delhi consumers have positive attitude towards
international apparel brands and the influence of variables has numerous of implications
for both academic and market view.
16. Md. Mazedul Islam, Muhammad Mufidul Islam, Abu Yousuf Mohammad
AnwarulAzim, Md. Russel Anwar and Md. MijanUddin (2014)The work reported in
this paper is based on many Bangladeshi local apparel fashion brand outlets which are
flourishing in a light-hearted way. As Bangladesh doing its RMG products business both
in the international and the local market with praising fame and faith, so many local apparel
brands are growing their business like a newly born baby. Understanding the customers
desired requirements for local apparel branded products and satisfying the customers
demand have become very difficult task for the brand management. Hence, an approach
was made in this study to investigate the customer’s perception in buying decisions toward
local apparel products.The study was conducted among 200 respondents including ten local
apparel brands among which Cat's Eye, Yellow, Westecs, Artisti, Aarongacheived better
brand value and Anjans, Plus point, Rex, Artness achieved less brand value. The work also
reported that customer desires the products quality, comfort, price, functional and aesthetic
look, offer & discount and many others key buying factors suitable for them when visiting
a brand showroom.
17. S. Muthukumar and Dr. T.R. Gurumoorthy (2016)this paper attempts to identify the
significant relation between socio-economic factors of the consumer and purchase of
branded readymade garments during festival season and examine the factors which
influence the selection of branded readymade garments. It is observed that, brands have
played a vital role in buying behavior of the consumers in buying of readymade garments.
In this study, Simple Random Sampling method has been used to identify 300 respondents,
each 100 in Coimbatore, Trichy and Madurai respectively. Questionnaire, duly pre-tested
has been used to collect data from the sample respondents. It is found that „durability‟ is
an important factor influencing customers to purchase branded readymade garments and
this study reveals socio-economic factors and online purchase

28
18. Priyanka Sharma (2017)The present paper is an attempt to study the consumer behavior
towards online shopping. The objectives of the study are: to identify the relationship of
demographical factors that influence online shopping, to study the preferences of the
consumers toward online shopping and to study the satisfaction level of the consumers
while they shop online. To achieve the objective, null hypothesis ‘Online shopping is not
reliable and trustworthy to the consumers’ was tested. The present study has been
conducted among the consumers of Bhiwani City. Convenience sampling method has been
used to select the sample. The primary data was collected from 100 respondents by means
of a self-constructed questionnaire having 15 questions. The collected data was analyzed
using Excel and SPSS software. The major findings of the study are: Cash on delivery is
found most popular payment method for online shopping among consumers. The price of
the products has the most influencing factor on online purchase and online shopping is
getting popular in the younger generation. Majority of the respondent’s buys from
flipkart.com which is thus one of the leading online shopping websites in India. Online
shopping is very popular for electronics items followed by movie tickets and clothes.
Unreliable online delivery system as well as personal privacy or security concerns has a
significant impact on online shopping. The main barrier in the process of online shopping
is the payment safety and privacy issue.

29
CHAPTER -2
RESEARCH
METHODOLOGY

30
RESEARCH METHODOLOGY

This chapter presents the methods used in collecting data, such as questionnaire and analyzing
data. Validity and reliability are processes that were implemented in gathering and analyzing of
data.

The study of conducting research is Research Methodology.

Research: the word research is composed of two syllables “Re” and “Search”

“Re” is the prefix meaning again or over ‘Again or a new’ and “Search” is the latter meaning ‘to
examine closely and carefully or to test and try’.

The research is related to consumer preference towards different brands. To find out the preference
of consumers towards various brands prevailing in the market based on different age groups,
gender, occupation and income level.

For this purpose we have conducted a survey on “Consumer preference towards online shopping
for branded clothes”.

The present research work is limited to study the consumer preferences and satisfaction towards
various online websites. Informal and Unstructured questionnaire was prepared so as to study the
factors which influence the consumers at the point of purchase of products with their convenience
which further helped us in developing the structured questionnaire. The sample size was 100.
Research was up to Delhi and NCR. The Collected data was then coded, calculated and analyzed
using the simple statistical tools.

Research Methodology: is the way do systematically solve the research problem

NEED OF THE STUDY


Marketing made it clear that, customers is a king for all retailers or services providers, the
competition in the world made it clear that Consumers attraction and making the more flexible and
better feasible services is the new dimension in the world market. The traditional marketing system
attracting lesser the clients than the modern marketing system and more over buying and availing
the services through modern system made it clear that easy and convenient services are delivered

31
to the customers and attracted more at the distances. Electronic retailing has emerged as a new
avenue to consumers for shopping. Internet penetration spread across India at a faster rate, gaining
attractiveness for online buying. Eretailers intend to take advantage on it in spite of impediment
and escalated competition of e-retailing. Thus, this study is undertaken to analyse the perception
of E-Customers towards the E-Retailing and the services of E-Retailers.

RESEARCH PROBLEM

• The research study had been undertaken to solve the problem of consumers.

• To find the best online platform among various sites in buying the products which one to
choose by collecting the data through various mediums (through primary and secondary
data).

• To conduct study by comparing various online shopping websites.

OBJECTIVES OF THE SYUDY

To know and understand the consumer’s perception and awareness about internet marketing/
shopping. This will help to know the attitude and perception of consumers towards online
shopping for branded clothes and what are the factors which shape the consumer’s perception
towards online shopping for branded clothes. Also what are key concerns from the point of view
of consumer while online shopping for branded clothes.

1. To explore how different Demographic Factors influence on customer to shop online.

2. To study the customer’s level of satisfaction with regard to online shopping for branded
clothes.

3. To study the buying pattern of consumer while shopping online.

4. To find out the factors that attracts the consumer toward e-retail in India regarding various
online sites.

SAMPLING TECHNIQUES

SAMPLING METHOD search things for their need satisfaction. Also evaluation of the product
and their satisfaction level, how consumer react and respond towards advertisement of the product.

32
So the scope of this study is to cover the full view of the customers and their preference pattern to
analyses.

RESEARCH DESIGN required descriptive research:


• A Research Design is defined, as the specification of methods and procedures for
acquiring the Information needed.
• It is a plant or organizing framework for doing the study and collecting the data.
• Designing a research plan requires all the data sources, research approaches, research
instruments, sampling plan etc.
Hence data was extracted for preparing a structured questionnaire.
DescriptiveResearch:
• “Survey or fact finding enquires of different kinds. It describes the actual prevailing
state of affairs, existing at present. Otherwise known as ex post facts means existing
position of facts / issues.”
• Descriptive Research was carried out with the help of a well-structured questionnaire in
order to check the consumer preferences and analysis of the products of various online
websites.
In this project the Sampling method used is Convenient Sampling:
• A convenience sample chooses the individuals that are easiest to reach or sampling that
is done easy.
• Convenience sampling does not represent the entire population so it is considered bias.

SAMPLE SIZE
• Informal and Unstructured questionnaire was prepared so as to study the factors which
influence the consumers at the point of purchase which further helped us in developing the
structured questionnaire. The sample size was 211.
• Sampling may be defined as the selection of some part of an aggregate or totality, on the
basis of which judgment about the aggregate or totality is made.
• In other words, it is the process of obtaining information about an entire population by only
examining only a part of it.
• For the purpose of the study 211 samples.

33
• The convenient sampling is used to select the representative sampling from the population,
because researcher does not have subscriber who are easily accessible.

SCOPE OF STUDY
• Research was up to Delhi and NCR.
• This study is an attempt to analyze the consumer preferences towards online shopping for
branded clothes.
• This study is an attempt to analyze the comparative analysis towards the various online
websites and the consumers search things for their need satisfaction.
• So the scope of this study is to cover the full view of the customers and their preference
pattern.
• Research was up to Delhi and NCR and the consumers who use Amazon, Flipkart, Myntra,
Snapdeal, Shopclues products.
• This study is an attempt to analyze the comparative analysis of the product of these online
websites.
• It will also help us to get a basic knowledge about websites by comparing the performance,
factors, and products of these online websites.

DATA COLLECTION SOURCES

• The research required studying both Primary as well as Secondary Data.


• For the primary data target audience was of Delhi and NCR and the study employed
structured interviews with a sample size of 211 for the consumers.
• The secondary data for the study is collected from different sources such as technical and
trade journals, articles, newspapers, magazines, internet, periodicals, books, reports,
publications of associations related to mobile phone service providers.
• While from retailers point of view an informal and unstructured questionnaire was prepared
so as to study the factors which influence the consumers at the point of purchase which
further helped us in developing the structured questionnaire.

34
PRIMARY DATA

Primary data is the one which is collected specifically for the purpose of the project, and can be
obtained from various people who have used the products of these Ecommerce websites and which
is more convenient.

For this study the primary data was collected from following sources

• Discussion with people


• Questionnaires

SECONDARY DATA

It refers to the statistical material which is not originated by the investigator himself but obtained
from someone else's records, or when Primary data is utilized for any other purpose at some
subsequent enquiry it is termed as Secondary data. However, it plays a significant role in the
project

For this study the secondary data was collected from the following sources

• Ecommerce Websites
• Magazines
• Internet
• Books related to management.

LIMITATIONS OF THE STUDY


Utmost care has been taken with regard to the collection, classification and analysis of
data. However, the study is subjected to the following limitations:
There were hardly any previous studies on the topic and it was a great challenge to deal
with a fresh topic.
1. Lack of environmental support for the study on the topic.
2. This study is restricted only to the Delhi NCR. So, the results may not be applicable
to other areas.
3. This study is based on the prevailing customer’s perception. But the customer’s
perception may change according to time, fashion, technology, development, etc.
4. As per the population of the study is huge, the researcher has taken only 211 sample
respondents from each service providers.
5. Basically based on primary data, hence we cannot argue that the research is
applicable in each condition, time& place.

35
6. Short time duration, with in such short span of time it is too much difficult to analyze
the topic.
7. Lack of customer support, while asking the consumer they were behaving rudely
and not responding to the questions.

36
CHAPTER -3
ANALYSIS AND
INTERPRETATION

37
• To study the consumer preference for online shopping in different
brands

1. Please select your gender group?


a) Female
b) Male
c) Others

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 57.8% are Females
• Out of 211 respondents 42.2% are Males

38
2. Please select your marital status?
a) Single
b) Married

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 9.5% are Married
• Out of 211 respondents 90.5% are Single

39
3. Please select an age group?

a) 12-18
b) 19-30
c) 31-40
d) 41-50
e) 51-60
f) 60+

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 90.5% are from the age group 19-30
• Out of 211 respondents 6%are from the age group 31-40
• Out of 211 respondents 3.5%are from the age group 12-18 and41-50
• Out of 211 respondents 0% are from the age group 51-60
• Out of 211 respondents 0%are from the age group 60+

40
4. Do you use internet?
a) Yes
b) No

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 0.5% don’t use the internet
• Out of 211 respondents 99.5% use the internet

41
5. On an average, how much time (per week) do you spend in surfing the web?
a) 0-5 hours
b) 6-10 hours
c) 11-15 hours
d) 16-20 hours
e) More than 20 hours

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 24.6% spend 0-5 hours in web surfing
• Out of 211 respondents 22.3%spend 6-10 hours in web surfing
• Out of 211 respondents 18.5%spend 11-15 hours in web surfing
• Out of 211 respondents 16.6%spend 16-20 hours in web surfing
• Out of 211 respondents 18%spend More than 20 hours in web surfing

42
6. Have you ever purchased clothes online?
a) Yes
b) No

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 88.2% havepurchased clothes online
• Out of 211 respondents 11.8% doesn’t purchase clothes online

43
7. How frequently do you purchase online?
a) 2-4 times
b) More than 5 times
c) More than 6 times
d) Once only

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 12.3% frequently purchase online for 2-4 times
• Out of 211 respondents 47.4% don’t purchase online frequently
• Out of 211 respondents 40.3%frequently purchase online for once only

44
8. Were you satisfied with the online shopping experience?
a) Dissatisfied
b) Satisfied
c) Highly Dissatisfied
d) Highly Satisfied
e) Neutral

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 45% are satisfied with the online experience
• Out of 211 respondents 35.1% are neutral with the online experience
• Out of 211 respondents 13.3%are highly satisfied with the online experience
• Out of 211 respondents 6.6%are either dissatisfied or highly dissatisfied with the online
experience

45
9. How do you choose online shopping website?
a) Referred by friends
b) Advertisement
c) Online reviews

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 37.9%choose online shopping sites on the basis of online reviews
• Out of 211 respondents 21.8% choose online shopping sites on the basis of advertisement
• Out of 211 respondents 35.1%choose online shopping sites on the basis of referral by
friends

46
10. What is your main motivation for buying through internet?
a) Convenience
b) Price
c) Product comparison
d) Saves time
e) Superior selection/Availability

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 36.5% choose convenience quality as a motivation factor for
buying through internet
• Out of 211 respondents 16.6% choose product comparison quality as a motivation factor
for buying through internet
• Out of 211 respondents 30.3% choose saves times quality as a motivation factor for
buying through internet
• Out of 211 respondents 16.6% choose superior section/availability quality as a motivation
factor for buying through internet

47
11.Which online website will you prefer for shopping clothes?
a) Flipkart
b) Amazon
c) Snap deal
d) Myntra
e) Others

INTERPRETATION:-
The representation of the pie chart shows that:-
• Out of 211 respondents 43.6% prefer Myntra for online shopping of clothes
• Out of 211 respondents 28% prefer Amazon for online shopping of clothes
• Out of 211 respondents 20.4% prefer Flipkart for online shopping of clothes
• Out of 211 respondents % prefer Snapdeal for online shopping of clothes

48
12.How do you make payments when shopping online?
a) Debit Card
b) Cash on Delivery
c) Credit card
d) Third party(Paytm wallet, Pay paletc.)

INTERPRETATION:-
• Out of 211 respondents 65.4% choose cash on delivery option for payments
• Out of 211 respondents 28.4% choose debit card optionfor made payments

49
13.Which online service is more satisfied in terms of products, customer care and delivery
services?
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

INTERPRETATION:-
• Out of 211 respondents 46.4% are more satisfied with Amazon in terms of products,
customer care and delivery services.
• Out of 211 respondents 23.2% are more satisfied with Myntra in terms of products,
customer care and delivery services.
• Out of 211 respondents 24.6% are more satisfied with Flipkart in terms of products,
customer care and delivery services.

50
14.In terms of pricing, with which online shopping website you are satisfied?
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

INTERPRETATION:-
• Out of 211 respondents 43.6% are more satisfied with Amazon in terms of pricing.
• Out of 211 respondents 28.9% are more satisfied with Flipkart in terms of pricing.
• Out of 211 respondents 20.9% are more satisfied with Myntra in terms of pricing.

51
15.Have you encountered any problems with online shopping website? If yes, by which
one?
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

INTERPRETATION:-
• Out of 211 respondents 28.4% have encountered problem with Flipkart.
• Out of 211 respondents 26.5% have encountered problem with Amazon
• Out of 211 respondents 21.3% have encountered problem with Snapdeal
• Out of 211 respondents 9% have encountered problem with Myntra

52
16.Which online shopping website will you suggest to your family and friends?
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

INTERPRETATION:-
• Out of 211 respondents 45.5% will suggest Amazon to their family and friends.
• Out of 211 respondents 25.6% will suggest Myntra to their family and friends.
• Out of 211 respondents 23.2% will suggest Flipkart to their family and friends.

53
17.Does promotional activities impact your purchasing decision?
a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree

INTERPRETATION:-
• Out of 211 respondents 47.4% are Agree that promotional activities impact
purchasing decisions.
• Out of 211 respondents 31.8% are Neutral that promotional activities impact
purchasing decisions.
• Out of 211 respondents 14.2% are Strongly agree that promotional activities
impact purchasing decisions

54
18.While shopping online you prefer Jack &Jones and U.S. Polo Assn. for men’s shirt and
t-shirt respectively?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

INTERPRETATION:-
• Out of 211 respondents 40.8% are Neutral that they prefer Jack & Jones and U.S.
Polo Assn. for men’s shirt and t-shirt respectively
• Out of 211 respondents 34.6% are Agree that they prefer Jack & Jones and U.S. Polo
Assn. for men’s shirt and t-shirt respectively
• Out of 211 respondents 12.3% are Disagree that they prefer Jack & Jones and U.S.
Polo Assn. for men’s shirt and t-shirt respectively
• Out of 211 respondents 10.4% are Strongly agree that they prefer Jack & Jones and
U.S. Polo Assn. for men’s shirt and t-shirt respectively

55
19. While shopping online which brand for Women’s top you prefer?
a) Biba
b) W
c) Others

INTERPRETATION:-
• Out of 211 respondents 38.9% prefer W for women’s top
• Out of 211 respondents 37.4% prefer Biba for women’s top

56
20. While shopping online which brand of jeans do you prefer?
a) Pepe
b) Levis
c) Diesel
d) Peter England
e) Others

INTERPRETATION:-
• Out of 211 respondents 62.6% prefer Levis for jeans
• Out of 211 respondents 10.9% prefer Diesel for jeans
• Out of 211 respondents 8.5% prefer Peter England for jeans
• Out of 211 respondents 7.1% prefer Pepe for jeans

57
CHAPTER 4
FINDINGS
&
CONCLUSION

58
FINDINGS

The study was conducted on “consumer preferences towards online shopping for branded clothes"
by distributing the questionnaire to the respondents and the analysis was done. Following are the
main findings from the survey conducted. The sample size was 211 and the survey was restricted
to Delhi NCR only.

• Female respondents are showing more interest to do online shopping than male
respondents.
• The age group of 19-30 is showing more interest than any other age group.
• There is 99.5% respondents use internet.
• There are 24.6% respondents that spend 0 to 5 hours in surfing web.
• There are 45% respondents are satisfied with the online experience.
• There are 37.5% respondents choose online shopping site through Online reviews
• There are 43.6% of respondents prefer Myntra.
• There are 46.4% respondents are more satisfied with the Amazon Services in terms of
products, customer care and delivery.
• There are 40.8% respondents who are neutral that they prefer Jack & jones and U.S Polo
Assn. for men's shirts and t-shirts.
• There are 38.9% respondents who prefer W for women’s kurti.
• There are 62.6% respondents who prefer Levis for jeans.

The most important motivating factor, which influenced the online shopping, was convenience
followed by time saving and price. Regular online shoppers considered convenience as the main
motivating factor while buying and were fewer prices sensitive. But the online marketers should
attempt to differentiate their products or services making the comparison easier. The marketers
should bring out innovative ways so that the consumers can do more online shopping while taking
the full advantage of rich information, easy access and convenience of the Internet. One of the
main concerns among the online shoppers was privacy and security. Anotherreason that hindered
online shopping was the touch factor.

59
SUGGESTIONS

Online shopping in India is poised for greater acceleration as PC and Internet penetration grows.
It is becoming one of the top Internet activities and there is a huge growth in this business as more
manufacturers and providers are integrating the Internet into their sales model. But there are many
things that need to occur in online shopping to generate higher revenues and the key to it lies in
the hands of the marketers. To make online shopping a boom following methods can be followed.
India has a strong research and development (R&D) capability so companies should innovate
rapidly to take care of the security issues. More companies should adopt click and mortar model
with the real world operations to complement its online presence for e.g. customers can walk to
the office to access its services. Merchants should provide goods and services that offer the right
value for money. There should be transparency in policies (returns, privacy, shipping, etc.),
insurance against fraud and a good after sales services should be provided to consumers making it
an enjoyable experience. Consumers today demand a better, more efficient and less cumbersome
way to compare and buy products online. Innovative service should be provided to consumers so
that they can compare products, which are available online using their mobile phones. Online
shopping today is an incomplete, fragmented, and sometimes frustrating process. Therefore
merchants should set themselves apart from their competitors by factors other than price,
constantly innovate and move towards creating customer confidence to trade online. They should
provide massive selection at lower prices, offer a personalized customer experience and their web
sites should deliver a shopping experience that addresses all of the consumer needs like
recommendation about the products, feedback from other customers, etc. Ecommerce revolution
can be brought about by providing more broadband connections at affordable prices.
There is a huge market for business in the rural India therefore efforts should be such that to bring
these people also into experiencing online shopping. Companies should create more Indian
language software or content as Internet still is a primarily English language world and language
could be a barrier in rural India. Most of the Indians still like to see the product before buying;
efforts should be made to change this mindset of the people by making them aware of the benefits
of online shopping. To make online shopping big the shopping web sites should give the customers
the convenience to shop anything on a single site like ordering pizzas, movie tickets, groceries,
etc. rather than in scattered places. The site should not only provide information content but also

60
tools to navigate and evaluate this information. The information on the site should be just sufficient
for the consumers to make a decision and not to overload them with information, which results in
confusion. Convenience and time saving are the main reason to shop online. Therefore Business
to Consumers (B2C) sites should be designed in such a way that consumers spend less time in
finding information they are looking for as delays in searching or loading a web page might turn
the consumers to other sites which have faster download and display times. Since consumers
control the experience they receive from shopping over the Internet, there is a need to find ways
of managing the amount of information available over the Internet. Sites that are able to offer this
information and present it in a simple way to understand will become the preferred destination for
online shopping. The key to selling to a customer which cannot be seen is to get the customer to
trust the website with which they have electronic transactions. Active participation from consumer
marketing companies to manufacturing industries is required to make online shopping a booming
sector.
Some of the things, which the consumers should take into considerations while online shopping,
are: Consumers should shop with the known companies, as it is easy to set up a shop online under
any name. If they are not familiar with a merchant they should ask for paper catalogue or brochure
to get a better idea about the merchandise and services and should find about the company’s refund
and return policies. Consumers should also search for the reviews of the company. Read the
privacy policy on the site of the companies before shopping as this helps to know what information
is being collected and how it would be used. Keep a print record of the transactions this would
come handy in case of any fraud. One should find out how the company secures the financial and
personal information before paying the bills. The personal information should be kept private like
address, telephone numbers, email, etc. One should avoid using telephone numbers or date of birth
for establishing a password instead should use a combination of numbers, letters and symbols.
Proper research should be done about countries shopping laws and merchant when shopping from
other countries.

1. The most important factor that restricts people from doing online shopping is security
concerns. So the online retailers should necessary steps to ensure the security of online
transactions and give awareness to consumers.

61
2. Delay in the delivery of goods and services are the main problem felt by most of the online
shoppers. Online shoppingcompanies must ensure the dispatch of products as immediate
as they get order. For that the efficiency of logistic system is to be enhanced.
3. Online shoppers must ensure the credibility of sites and must have a good understanding
of the various terms and conditions of such sites.
4. Consumers should have proper awareness about online consumerprotection rights and the
different mechanisms of grievance redressed.
5. This study can be used for further research in this field and will be very helpful for
prospective online consumers as well as retailers.
6. Government should play a pivotal role in encouraging online shopping
7. E-marketers must give a thought to secure, time saving, information about product and
services factors when they design their online product strategy.
8. The study highlights that convenience, accessibility, scope, attraction, reliability,
experience and clarity are the important factors considered by the online shopper.

CONCLUSION

The study consisted with all the work flows of major e-commerce players in India and the
purchasing behavior of customers towards branding clothes through Flipkart, Amazon, Snapdeal,
Myntra, Shopclues. How they are performing and how they are running perfectly in the
competitive world has been explained. The innovative thinking of them to reach more and more
consumers inappreciable. They increased their network as much as possible with ultimate aim of
reaching more and more customers. They made consumers work more easy and comfortable.

In this competitive market one has to be lead and rest will follow. Based upon consumer’s survey
we got our clear winner and it is Amazon.

Even though it is an international company it understood Indians very well and made its roots
stronger in India. Flipkart is also giving very tough competition to Amazon even though it is new
company when compared to Amazon. May be it takes some time to overcome, but definitely they
are doing very well in Indian e-commerce market?

62
This research shows that online shopping is having very bright future in India. Perception towards
online shopping is getting better in India. With the use of internet, consumers can shop anywhere,
anything and anytime with easy and safe payment options. Consumers can do comparison
shopping between products, as well as, online stores. This study is mainly focus on the factors
from the Internet and examines those factors that affect the consumer’s online shopping behaviors.

The research focus on the Internet shopping (include the nature of Internet shopping, E-commerce
website, and online security, privacy, trust and trustworthiness) and online consumer behaviors
(include background, shopping motivation and decision making process). Those factors were
looked at, and examined to reveal the influence at online consumer behaviors. In addition, the
previous researches were used to help researchers understanding more comprehensively.

Moreover, the customer’s purchase decision making process was also examined to identify the
potential factors. The information search is the most important factor that helps the customers find
the suitable products or services for their needs. Therefore, the online retailers have to enhance
and improve theinformation supporting such as provide much detailed product information and
use internal search engine in order to increase the efficient of information search. For the
evaluation stage, customers more think a lot of the reputation from the E-commerce website, and
the payment security for the purchase stage. At the post-purchase stage, the factor of after services
which is the most concerned about.

Overall, the factors from the Internet that influenced or prevented online consumer behaviors need
to be carefully concerned by the online retailers, who can utilize the appropriate marketing
communications to support the customer’s purchase decision making process and improve their
performance.

63
BIBLIOGRAPHY

TEXT BOOKS
• Marketing Management by Philip Kotler
• Organizational Management by Stephen P. Robbins
• Indian Economy by Dutt and Kotler

MAGAZINES REFERRED
• Business Today
• Business World
• India Today

ARTICLES
• http://www.firstpost.com/business/most-consumers-preferred-amazon-over-flipkart-for-
online-transactions-in-2016-says-survey-2915798.html
• http://www.businessinsider.in/this-is-how-you-shopped-on-flipkart-amazon-and-
snapdeal-during-christmas-sale/articleshow/56082541.cms
• http://techstory.in/amazon-outruns-snapdeal-flipkart-5032016/
• http://www.business-standard.com/article/companies/online-shoppers-traffic-highest-on-
flipkart-115030500010_1.html
• https://yourstory.com/2016/12/ecommerce-2016/
• http://www.livemint.com/Industry/DQg0vBeyiYKY7vUPmyVMuI/Wholesalers-
outnumber-pureplay-online-sellers-on-ebusiness.html
• http://indianonlineseller.com/2014/12/survey-gosf-most-preferred-online-shopping-
festival-amazon-best-ecommerce-site/
• http://www.dnaindia.com/money/report-amazon-is-india-s-most-trusted-online-shopping-
brand-survey-2185586
• http://www.businessinsider.in/Why-every-e-commerce-company-wants-a-bite-of-
Unified-Payments-Interface-/articleshow/54028546.cms
• http://economictimes.indiatimes.com/small-biz/entrepreneurship/flipkart-brought-online-
shopping-to-india-then-amazon-showed-up/articleshow/53277213.cms
• http://economictimes.indiatimes.com/small-biz/entrepreneurship/flipkart-brought-online-
shopping-to-india-then-amazon-showed-up/articleshow/53277213.cms
• http://www.livemint.com/Companies/c6vY9ta120G7cwewrCg6bI/Has-Flipkart-lost-No-
1-slot-to-Amazon.html

64
• http://www.livemint.com/Companies/qbDzSVROydt3tiEPO2SVML/How-Flipkart-
snapped-up-Jabong-from-under-Snapdeals-nose.html
• http://www.livemint.com/Companies/ZnjVEgf0ODOHlrDcXe1TDI/Flipkart-Amazon-
Snapdeal-restart-sales-after-two-months.html
• http://indianonlineseller.com/2016/03/amazon-ahead-of-flipkart-snapdeal-as-the-most-
trusted-ecommerce-marketplace/
• http://www.livemint.com/Companies/EVDD2YHyjgQ5lnOnj5sDDL/Improved-
customer-service-keeps-Flipkart-on-top-of-ecommerc.html

NEWSPAPER REFERRED
• Navbharat Times
• Times of India
• Economics Times

WEBSITES
• https://en.wikipedia.org/wiki/Flipkart
• https://en.wikipedia.org/wiki/Amazon.com
• https://en.wikipedia.org/wiki/Snapdeal
• https://en.wikipedia.org/wiki/Myntra
• https://en.wikipedia.org/wiki/ShopClues

65
ANNEXURE

SURVEY ON CONSUMER PREFERENCE TOWARDS ONLINE SHOPPING FOR


BRANDED CLOTHES

* Required
1.Please select your gender group?*
a) Female
b) Male
c) Others

2. Please select your marital status*


a) Single
b) Married

3. Please select an age group:*


a) 12-18
b) 19-30
c) 31-40
d) 41-50
e) 51-60
f) 60+

4. Do you use internet?*


a) Yes
b) No

5. On the average, how much time(per week) do you spend in surfing the web?*
a) 0-5 hours
b) 16-20 hours
c) 6-10 hours

66
d) More than 20 hours
e) 11-15 hours

6. Have you purchased clothes online ever?*


a) Yes
b) No

7. How frequently do you purchase online?*


a) 2-4 times
b) More than 5 times
c) More than 6 times
d) Once only

8.Were you satisfied with the online shopping experience?*


a) Dissatisfied
b) Satisfied
c) Highly dissatisfied
d) Highly satisfied
e) Neutral

9. How do you choose online shopping website?*

a) Referred by friends
b) Advertisements.
c) Online reviews

10. What is your main motivation for buying through internet?*


a) Convenience
b) Price
c) Product comparison
d) Saves time
e) Superior selection/availability

11.Which online website will you prefer for shopping online clothes?*

67
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

12. How do you make payments when shopping online? *


a) Debit card
b) Cash on delivery
c) Credit card
d) Third party (Paytm wallet, PayPaletc.)

13. Which online service is more satisfied in terms of products, customer care and delivery
services?*

a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

14. In terms of pricing, with which online shopping website you are satisfied?*

a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

15. Have your encountered any problems with online shopping website? if yes, by which one?*
a) Flipkart
b) Amazon

68
c) Snapdeal
d) Myntra
e) Others

16. Which online shopping website will you suggest to your family and friends?*
a) Flipkart
b) Amazon
c) Snapdeal
d) Myntra
e) Others

17. Does promotional activities impact your purchasing decision?*


a) Strongly agree
b) Agree
c) Neither Agree nor Disagreed.
d) Disagree.
e) Strongly Disagree

18. While shopping online you prefer Jack &Jones and U.S. Polo Assn. for men’s shirt and t-
shirt respectively?*
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

19. While shopping online which brand for Women’s top you prefer?*
a) Biba
b) W
c) Others

20. While shopping online which brand of jeans do you prefer?*

69
a) Pepe
b) Levis
c) Diesel
d) Peter England
e) Others

THANKYOU FOR THE SURVEY!

70

Potrebbero piacerti anche