Thesis Abdul Siaf

CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE
TRANSACTIONS
THESIS ON "CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE TRANSACTIONS
The Indian Institute of Planning & Management Bangalore

This thesis is being submitted in partial fulfillment of the requirement of the MBA program of IIPM
Submitted by: ABDUL MOHAMMED SIAF FW 2004-2006 Alumni reference no. BF04M106
Internal Faculty Guide Prof. Tareque Laskar
Abdul Mohammed Siaf The Indian Institute of Planning & Management, Bangalore
CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE TRANSACTIONS From Reply-to To Date Subject Tareque Laskar <tareque.laskar@iipm.edu> Tareque Laskar <tareque.laskar@iipm.edu> mohammed siaf <mohd.siaf@gmail.com> Wed, Oct 31, 2007 at 9:59 AM Re: synopsis
Dear Siaf I have received your synopsis as well as confirmation that I would be your guide for the thesis . The topic is fine and you can go ahead with your thesis on "Feasibility of a global Pre-paid mode for online shopping and payments and its impact on E-commerce" . Treat this mail as a formal approval of the same. Remember to get yourself registered at the IIPM Academics by showing a copy of this approval mail and get the ID No. You have to send me at least 6 Thesis Response Sheet before submitting the Final Thesis. The Response Sheet should contain the following Details. You can take a separate document in the same format. Make sure you mail the response sheet at regular intervals. 1) Your Name 2) Your ID Number 3) The Topic of the Study 4) Questionnaire which you have made to collect Primary Data (in the first or the second Response sheet) 5) Date when the Guide was consulted. 6) The outcome of the discussion 7) The Progress of the Thesis
Regards Tareque Laskar IIPM Bangalore Abdul Mohammed Siaf The Indian Institute of Planning & Management, Bangalore 2
CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE TRANSACTIONS
ACKNOWLEDGEMENT
First of all, I would like to extend my gratitude to Prof. R. Jayachandran, and Prof. Vikram Tanwar, Deans of Indian Institute of Planning and Management, Bangalore, for having permitted me to conduct this project study.
I am highly indebted to Prof. Tareque Laskar, Sr. Program Manager at IIPM, Bangalore for guiding me throughout the thesis and helping me complete the thesis successfully.
Lastly, I am grateful to my friends and family for all the support without which it would not have been possible to finish this study duly.
I would also like to thank all candidates that helped me with my data collection to quantify the final results of the project. Without their inputs the project would not have had such a defined implication.
Date: 16-02-2010 SIAF Place: Bangalore
ABDUL MOHAMMED
PREFACE
Necessity is the mother of invention. The introduction of Internet in the 20th century changed the way people do business and online shopping started replacing the brick and mortar shop which gave consumers large variety of choices. Almost 80% of the online transactions were completed through credit card which acted as a mode of payment. As more and more people are moving towards online shopping still there is a need to tap the market which consists of people who dont have credit card and are not able to transact online just for this reason. Lately some pre-paid services have already been started which cater to entertainment (Movie Ticketing, Event Bookings), bill payments etc. Bu there is still scope of establishing a single platform of pre-paid mode of transaction for all online purchase/payments. This study begins with its first chapter bringing out the establishment of Online Shopping market especially in the two leading powerhouse economies i.e India and China and also details the various modes of payment that are available for the consumers at present in Indian as well Internationals markets. This is followed by a chapter showing the research methodology used in this study such as the objectives of the study, logic behind sample selection and the sample size, limitations and scope, and other important features of the dissertation carried out. Chapter 3 is dedicated to the theoretical aspects of the study and majorly shows secondary data relevant for carrying out the elaborate analysis of data collected through the questionnaire of primary study. One part especially mentions the shopping habits of women with respect to online purchases. This has been done to cancel out any bias in the study due to low representation of women in the primary data collected.
TABLE OF CONTENTS
SL NO. CHAPTER/ TOPIC Synopsis 1 1.1 1.2.1 1.2.2 1.3 INTRODUCTION Online shopping Online Shopping in India - A warhorse spreading its wings Online Shopping in China The Dragon spreading its wings Payment Modes 9 10 11 13 PAGE NO. 6
2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.3 3.4 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8
METHODOLOGY Objectives of the study Scope of the study Sampling Plan Questionnaire design Limitations of the study LITERATURE REVIEW Online shopping history Online shopping trends Online shopping surge Women shopping online DATA ANALYSIS
World Internet usage statistics World online shopping statistics Respondent profile Internet usage characteristics Importance of online shopping websites Advantages of Online shopping Online shopping behaviour Frequency of service searches and encounters
13 15 15 15 16 17 19 19 19 22 23 27 27 28 31 33 35 36 38 40
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4.9 4.9.1 4.9.2 4.10 4.11 4.12
Online shopping advantage factors importance measurement Advantage Factors Disadvantage Factors Response to the proposed pre-paid mode of payment Importance of online shopping with advantages of online shopping Importance of online shopping with frequency of online service searches and encounters
43 43 44 45 46 47
5 6 7 7.1 7.2
CONCLUSION RECOMMENDATIONS APPENDIX

Sample Questionnaire Bibliography
50 53 56 69 61
SYNOPSIS
Topic: Consumer Behaviour towards Internet Shopping/ Bill Payments and Scope for PrePaid Mode of Payment for Online Transactions Research Statement: To understand the Global consumers behaviour and attitude towards online shopping/ Bill payment. Study the spending pattern and criteria for online transaction and understand the consumers reservations towards the same. Check their response towards pre-paid mode of payments for online transactions. Research Methodology: Proposed Sample Size: 600 Sampling Plan: Stratified Proportionate Sampling Data Collection: Questionnaire was used to collect data from the respondents as per the sample size decided. An online version of the questionnaire was set up on www,esurveyspro.com for gaining response from international internet users. This was done to get a global response to the proposed pre-paid mode of payment for online shopping. This method also helped in gathering the feasibility of the proposed mode in global scenario rather than limiting to India or the Indian Subcontinent. Pretesting of the questionnaire was done to determine the appropriateness of the questions, their wordings and their designed sequence in order to improve on it. Tools Used in Analysis: a) Basic statistical tools on central tendency were used to understand various parameters and their impact on the topic of the study and also for respondent profiling. The same has been presented with suitable charts. b) Chi-square test of independence were done to check the factor ratings dependency on gender, in terms of the responses given by males and females. c) There was an extensive use of OpenStat for analysing data: a. Correlation of different influencing factors of online shopping to individual ratings given for importance to Online shopping (1-Most Important and 5- Least Important). b. Correlation of the frequently encountered online services (Shown on Likert Scale) categorized under 12 headers with the level of importance of online shopping.
Findings:
Abdul Mohammed Siaf The Indian Institute of Planning & Management, Bangalore 8
Most of the respondents were from the Asian Region with the majority of them being from India (Approx. 200). Most of the respondents use internet at home. On an average they use 15.36 Hours a week for purposes other than checking their mails. Females made up 32% of the population, showing the changing trend in internet usage with a lot of women utilising internet for purposes other than checking mails. Convenience has been rated highest (21%) on an average as an advantage of online shopping followed by the advantage of better accessibility (24X7) (19%). 7.4% of the population have shopped online/ used online bill payment options as per the responses collected. Travel services have been the most frequently encountered online shopping service followed by Entertainment services (Download of movies, music, ticket bookings etc). On an average (as per the interval scale of Strongly Agree to Strongly Disagree), respondents agree the most to Convenience being the advantage of online shopping and disagree upon the advantages of online shopping being After Sales services and Promotions/Advertisements.
CHAPTER
1
1. INTRODUCTION
1.1 Online Shopping:

The Internet offers some significant advantages to shoppers, and is becoming increasingly popular with both adults and young people. It can give you access to products and services which are not available in your local stores. It can save time, and help you avoid crowds. It can save you money, as some kinds of products are substantially cheaper in other countries. It can help you research product details and make comparisons of prices and features, before you physically visit a store for a demonstration. Purchase by credit card is the usual method of payment, which has restricted the ability of young people to shop online. Recent developments in the introduction of pre-paid Payment cards that can be credited with money by adults, are likely to stimulate suppliers to target more products and marketing at a youth market, fuelling a rapid growth in children buying goods online. Common problems: Finding the product, and choosing a supplier, can be hard, as there are so many websites and online retailers. Careful searching using brand names or the names of types of products may save you time checking out lots of sites. One good place to start may be to use the online service of a high-street store that is well known to you. This has the additional advantage that you can complain in person or return goods if necessary. Listen to others advice and recommendations about good sites to use and about their experiences. There are many good online retailers with no high street stores, but remember to check that there are proper contact details including postal address and phone number so that you can get in touch if you have doubts or questions about their service. Safety and security during online ordering and payment are vital to consumers, and a lack of confidence about security among many people has held back the growth of online shopping. The news media sometimes has stories of commercial websites being infiltrated by computer hackers, or credit card numbers being stolen online. However it is likely that fraudsters are less likely to get hold of your credit card details over the Internet than they are over the phone, through the post or in a restaurant.
1.2.1 Online Shopping in India - A warhorse spreading its wings:

Within last few years shopping has changed its faced to more advanced version. Now a day, people are more comfortable with online shopping in India. Being an easiest means, online shopping is getting much support and encouragement from users in India. As it is seen, technology has improved a lot in last few years, and given us plenty of instances of bleeding edge technology. Mobile phones are one among them which is highly being promoted through online shopping. There are flock of Websites which are full of different and latest handsets. In fact, Internet has become one of the primary sources of getting high sale of phones. The online shopping network has established its footprints in India and is spreading all over the country at a very fast pace. India is a country where products get duplicated very easily like one can get a pair of sunglasses of a big brand name at throw away price in low end market places .Although the look of the sunglasses may be same a that of the original but there sure is a change of quality which a common man may not be able to make out. In this way many people get tricked very easily. There are plenty of other items that can be easily duplicated in India. Another problem faced by the consumers in India is the variation in the prices of the products that is observed quiet often. A product may cost at a high cost at high end markets, whereas the same product may be available at a cheaper price in the low end markets. There are online shopping web portals that provide products at discounted prices and the prices are fixed so that there is less possibility of the same product at high prices in the market. The products offered are of good quality and there are less chances of duplication. Apart from branded imported products there are domestic products that are offered through online shopping that are quite reliable. There is a good scope of online shopping in India as people are more concerned about the products that they buy and they can easily find products while sitting at home through logging onto their systems. In this way they can save money and unnecessary expenses while shopping. There are fewer chances of duplicate products as the websites only promote products that are genuine and well established. Few websites promote social shopping that enables users to make friends with other users and solve their queries related to any of the products .Social shopping has worked well in making online shopping most popular network in India as one can buy a product freely if he knows well about the products from hand on experienced people. Online shopping in India is becoming known day by day and the reaction of the customers has been supportive .Their tremendous support has led online marketing famous in major parts of India. Shopping through the online shopping portals is quiet convenient in the modern Indian society where time and money is equally precious. Through social shopping people can get opinion from experts and can make friends online whose wise suggestions prove worth in most of the cases. Online shopping in India has created a new scope for retailers as they can come forward and advertise their products easily and the amount paid is much less than they pay while advertising over television or by other means. The most wonderful of all is that through online shopping portals one can buy products at discounted rate and the rates get discounted further if the person remains loyal to the website .It means one can save more while shopping.
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1.2.2 Online Shopping in China The Dragon spreading its wings:

Q2/2009 China Internet Statistics Reports: 338 Million Users The China Internet Network Information Center (CNNIC) has just published their mid-year statistical survey report on the Internet Development in China: The Number of Chinese Netizens increased by over 40 Mil during the first half of 2009, representing a 13.4% growth rate compared to 2008. By June 30 2009 the total number of Chinese Internet Users has reached 338 Million, which represents a penetration rate of 25.5% 320 Mil (or 94.3%) of all online users have broadband access 155 Mil (or 45.9% of all netizens) use their mobile devices to go online. In the first half of 2009 this number increased by 37 Mil. 28% of these Mobile Internet Users are considering to use 3G in the second half of 2009. The number of Rural Netizens surpasses 95 Mil, accounting for 42.7% of the total online population, 15% growth alone during the past half year Although security software is installed on 82.4% of all devices, security still remains a huge problem with 195 Mil Chinese experiencing Viruses/Trojans and another 110 Million becoming the victim of Account/Password Fraud
Growth in Chinese Internet Users Entertainment, Online Research & Communication account for over 50% of all online activities while levels of Online Shopping & Payment are still comparatively low. Online Gaming grew by 30 Million users and in total 181 Million Chinese netizens now write their own blog. Here is a more detailed ranking of what Chinese people are actually doing online:

Music: 85.5% Network News: 78.7%

Instant Messaging: 72.2% Search Engines: 69.4% Video: 65.8% Online Gaming: 64.2% Email: 55.4% Having Blogs: 53.8% Forum/BBS: 30.4% Online Shopping: 26% Online Payment: 22.4% Online Stock Speculation: 10.4% Travel Reservation: 4.1%
The majority of Internet users with over 60% are still in the age group of 10-29 although users between 30-49 are slowly catching up. 31.7% of Chinese Internet users are students. 81.5% of all users earn less than 450 USD/month. 23.5% even earn no more than 75 USD/months. The report also touches some ethical implications of the rapid Internet growth in China. While people in general believe the Internet broadens their horizon (90%), allows them to save time (81.6%) and facilitates information sharing (78.5%), the report also points out that 1 out of 6 Users has the tendency to become an Internet addict. 77.5% believe their life is invariably linked to the Internet. The average hours per Internet users spent online per week has for example risen from 16 to 18 hours in the last 6 months. Interesting to note is also that 84.3% of all Internet users consider the Internet the most important and most trustworthy source of information.
1.3 Payment Modes:
Advanced payment: The customer pays the total amount by wire transfer into a bank account of the merchant. The ordered goods will be shipped after incoming payment. This is the safest method for the merchant but the
customer must trust the shop and wait some days for the wire transfer to arrive. Cash on delivery: The merchant ships the order and the postman cashs the amount at the door. So the merchant knows that the customer pays. But the customer has to pay before he may check the content of the delivery. Therefore the trust into the merchant is almost as important as with advanced payment. Invoice: The merchant ships the order and the customer has normally 30 days to pay by payment order. Convenient for the customer - risky for the merchant. Many shops sell only on account for national customers after a previously paid order or run a credit check on new clients. Credit card: The customer authorizes the order by typing his credit card details in the form of an online processor who is automatically running a credit check on his card. The merchant can be sure that the card is covered. Normally the final amount will be settled when shipping the goods. Should the order not arrive the customer can cancel the payment with his bank within 30 days and the merchant has to proof that the package has been really shipped to the right address. Credit card payment is popular with merchants and clients and offers a fast method of payment and deliveries but there apply a lot of fees that make this payment method only suitable for larger shops.
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CHAPTER
2
2. METHODOLOGY 2.1 Objectives of the Study:
To understand the Global Consumers behaviour and attitude towards online shopping/ Bill payment.
To find the factors which they find advantageous and disadvantageous with respect to Online Shopping vis--vis Retail Shopping To study the spending pattern and criteria for online transaction and understand the consumers reservations towards the same. To check their response towards pre-paid mode of payments for online transactions.
2.2 Scope of the Study:

This study was conducted to understand the scope of pre-paid mode of payment for country/region-centric as well as international consumers. With the present preferred mode of payment acceptance of online shopping websites being Credit card, the market present for the industry gets limited to the number of people holding credit cards. The scope of this study also lies in developing the International online shopping market by allowing the consumers to shop without credit card as well. Advantage of pre-paid mode v/s credit card mode is also in terms of reduced chanced of credit card frauds and credit defaults.
2.3 Sampling Plan:

Probability Sampling Techniques are best suited to generalize the study made of the sample collected from the population. In this case, Stratified sampling technique was zeroed in on as the consumer population in this case is the internet users and they can be divided into various categories on the basis of their internet usage characteristics. The division of worlds internet users was done as per the regions mentioned in Internet World Stats (http://www.internetworldstats.com/stats.htm) ; which is as follows:
WORLD INTERNET USAGE AND POPULATION STATISTICS

World Regions Africa Asia Europe Middle East North America Latin America/Caribbean Oceania / Australia WORLD TOTAL Population ( 2009 Est.) 991,002,342 3,808,070,503 803,850,858 202,687,005 340,831,831 586,662,468 34,700,201 6,767,805,208 Internet Users Penetration Growth Users % Latest Data (% Population) 2000-2009 of Table 65,903,900 704,213,930 402,380,474 47,964,146 251,735,500 175,834,439 20,838,019 1,668,870,408 6.7 % 1,359.9 % 18.5 % 50.1 % 73.9 % 30.0 % 60.1 % 24.7 % 516.1 % 282.9 % 132.9 % 873.1 % 173.4 % 362.3 % 3.9 % 42.2 % 24.2 % 2.9 % 15.1 % 10.5 % 1.2 % 100.0 %
23.7 % 1,360.2 %
Thus population size is 1.67 Billion covering all the regions of the world. These 7 groups of world regions were the strata or layers used for the stratified sampling. The sample size of 600 was broken down into 7 parts with each part being proportionate to its size in actual population. This is summarized as follows:
World Regions Users % of Table Out of 600 Approx. Samples Final No. of respondents
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Africa Asia Europe Middle East North America Latin America/Caribbean Oceania / Australia
TOTAL
3.90% 42.20% 24.20% 2.90% 15.10% 10.50% 1.20%
23.4 253.2 145.2 17.4 90.6 63 7.2 600
24 253 145 17 91 63 7 600
24 300 127 24 83 39 12 609
100%
Although for such a large population of 1.67 Billion, sample size of 600 would not be a good estimate but it had to be approximated to 600 because of time constraint and the degree of non-responsiveness of global consumers to an online survey. The final sample size was increased to 609 so as to factor for any discrepancies in data collection and analysis.
2.4 Questionnaire Design:

The questionnaire was structured and undisguised and it was pre-coded for easier tabulation. An online version of the questionnaire was prepared on www.esurveyspro.com (http://www.esurveyspro.com/Survey.aspx?id=4919735ffc1f-4abb-99dd-c4c39c523f35), the link of which was sent to approximately 500 internet users in Europe, 450 users in North America, 300 users in Latin America. For the rest of the regions, personal contacts were utilized to gather response as these regions were either easily accessible or had comparatively small sample size to be pooled in. Questionnaire mostly included closed ended questions where respondents were to choose only one of the given options. Some questions were based on 100 pt. rating, Likert scale and interval scale. After the questionnaire design, a pilot study was conducted on 10 cases the summary of which is attached to the appendix.
2.5 Limitations of the Study:

For the purpose of study, we have assumed that all internet users are aware of Online shopping services and have indulged in such activities frequently. We have considered all data collected as an honest response and opinion of the respondent which may not be the case especially in case of responses from other regions of the world.
The parameters/factors given as options for understanding advantages and disadvantages of Online Shopping were assumed to cover all aspects which might not so be the case.
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CHAPTER
3
3. LITERATURE REVIEW
3.1 ONLINE SHOPPING HISTORY

The concept of online shopping developed gradually, after the launch of the World Wide Web. Charles Stack was the first person to create an online book store in 1992. Even Pizza Hut opened an online pizza shop, whereas eBay and Amazon took the concept of online shopping to an entirely new level. Online shopping began in full swing since the year 1996. Buyers can directly visit the website of the service provider or the retailer or search for retailers using the famous Internet search engines. Using the shopping cart software, buyers can buy multiple products. While shopping from some particular stores online, you will have to open up a permanent online account, so that they enter the payment and delivery related information only once. You will receive a message of the transaction being complete via e-mail. You can make the payment for the purchased goods using your credit card or debit card. Cash on delivery, payment by check, postal money order, are some of the other ways of clearing off the due amount. The bought items can be received by downloading them, if they are related to purchase of software, songs or music. Another method of receiving the goods is using the locater software and picking up the goods from the nearest authorized store. There are some distributor services, which offer you the delivery of the products at your placer to avoid wastage of time and money which happens otherwise.
3.2 ONLINE SHOPPING TRENDS

Many Internet business analysts are getting cramps in their arms charting the online shopping trends of todays go anywhere, do anything society. Thats because for the 4th consecutive year, trends have shown another big spike in the amount of goods and services people shop for online. Much of that business can be attributed to increased consumer confidence in online shopping and increased security protocols. Nowadays, when folks see that a site is security certified, they feel a little better about using their credit card to shop for goods and services online. A lot of this business, though, can also be attributed to the rise of the affiliate marketing industry, something that has really come into its own in recent years. There are a few other reasons why Internet marketing and affiliate programs have become such a hot commodity in the Internet business world, including increased consumer confidence in online shopping, costly traditional advertising methods, and of course, the growth of the behemoth known as the Internet.
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Consumer Confidence In Online Shopping has Soared

It is amazing to note that the Internet is still such a new device, and yet it is one of the fastest and most powerful media tools ever given to humanity. Think about it for a moment. Television, Radio, and Print Media forms are all controlled by companies that make corporate decisions. It is only reasonable then, that people shopping on the Net would be a little leery of the security levels available and the chance that their credit or banking information could be used for evil. Internet trailblazers such as Microsoft knew consumer confidence was the key to getting virtual shopping off the ground, and they work hard to develop the security features that will make people feel safe to shop online. Credit card companies, too, quickly saw the potential for Internet shopping, and have since installed things like online shopping insurance for people uncomfortable using their plastic charge cards in this manner. If you ever get scammed or have a problem with your online credit purchases, many credit card companies will happily refund your money and then set their claws on the company that wronged you. Now thats buying power! There are other bonuses for online shoppers, of course. No line-ups, for one. No annoying mall shopping carts with broken wheels and snotty nosed kids crying because their parents wont get them what they want. When shopping online, consumers can sit down, have a coffee, wear their slippers and their bathrobes, not have to worry about their hair or parking, and just click through sale after sale. Comparison shopping couldnt be any easier. And thanks to courier companies getting in on the act, you never need wait longer than a day or two to get those all important purchases delivered right to your door. No wonder so many companies are shaking their heads at conventional advertising and instead looking to the "virtual" world to attract online shoppers.
Costly Advertising
These days, its more expensive than ever to provide quality multi-media advertising for a company. Print advertising rates are expensive and are prone to the whims of fickle editors; television advertisements are lost under a wash of over produced, played-every-five-minutes commercials from large corporations. Hard to believe as it sounds, it is actually a super-effective way for online businesses to do their work online. Once a website is out, it can start churning out the redirected online shoppers and pumping up sales on both ends. Affiliate sites make use of reviews, helpful how-to articles, and other points of information. Things that customers would like to read about make the best articles.
Then, helpful suggestions and recommendations are made in the course of the articles, which are actually marked hyperlinks that send shoppers to a site relevant to the article they were just reading. For example, an article on great cell phone packages could contain two or three links to companies offering special deals for Internet subscribers. Its exactly this kind of layered marketing that has caused such an incredible swell in the Internet markets.
Growth of the Internet

Hard to believe that there is a generation of people out there right now that will have almost no memories of the world before the Internet. Its also true that the trends towards continued growth and expansion of the World Wide Web that now spans all the continents and reaches billions of people across the world will continue to grow and develop as the world becomes more comfortable with the online shopping environment. High-speed Internet has brought a whole new industry of downloading and uploading massive amounts of data never before possible. Now its possible to download movies and music in a pay-per-click environment and that has created "virtual music stores" that allow you to shop for, and buy, single songs or whole movies, download them, and make your own copies. Of course, there is also an incredible amount of conventional businesses offering their services to an online clientele. Purchase baggage claims or plane tickets off an airline website, or purchase and print tickets to the theatre or the movies. These days, anything is possible. Online shopping is an easy and comfortable way of shopping for a large range of products. There are innumerable advantages of online shopping. You save a lot of time which you normally need to personally go to the retail shop and buy the products which you want. Initially, the customer base for online shopping activities was the rich class with a lot of purchasing capacity. However, now, with the passage of time, more and more people are preferring to make purchases online, thus getting an enormous change in the online shopping trends.
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3.3 ONLINE SHOPPING SURGE Trying to Cash In on Social Sites

Perhaps the biggest conundrum of 2009 in regard to online sales was how to make a profit by marketing and selling on social networks such as Facebook. Widgets and special e-commerce applications abound for social networks, but so far, members seem to want to communicate more than they want to shop. Still, word-of-mouth marketing is powerful, and research continues to cite the fact that consumers continue to share and trust information about products they gain through social networks, even if they aren't actually making purchases there.
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EBay Undergoes Huge Changes While both large and small sellers have scrambled to keep pace with all the new developments, eBay has instituted a new Power Seller program for high-volume sellers, and it appears the "Amazon-ification" of eBay is in full swing. Meanwhile, the "eBay alternative" sector is showing signs of life, indeed success, with snappy upstarts such as Bonanzle gaining traction and traffic. Shipping News Another topic that continued to make news this year is shipping and whether or not offering free shipping is a smart marketing choice or a death knell for the bottom line. Some industry watchers say shoppers expect free shipping, and not offering free shipping means you'll lose sales. On the other hand, many say there are other ways to offer delivery discounts that won't eat up profit margins and argue that customers are actually more willing to swap free shipping for other types of incentives. Customer Reviews and Video Ads/Marketing Customer reviews, once found only on high-volume sites, are now becoming mainstream as consumers increasingly expect them as a standard feature. The problem was that the technology for employing and managing customer reviews was often too expensive for small online store owners.
3.4 WOMEN SHOPPING ONLINE

2008 was also the Year of the Woman online. Over the last 18 months, the number of ad networks targeted towards moms and women exploded. Some high-profile players entered the space; notable examples include iVillages partial buy-in of BlogHer, and Circle of Moms growth to 850K registered Facebook application users in less than 2 months. Womens Ad Networks If any of the advertising industries are well positioned to weather the economic storm, it is the online ad industry. Newspapers and outdoor media will continue to suffer, but online media has the track record to convince advertisers to move more dollars and rupees online. Yet since advertisers will have less money to begin with, we have only moderate growth in the online ad space. There are too many ad networks targeted towards women and moms right now. All of them have inventory problems and some are only taking in new publishers under more restrictive terms, if at all.
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If there are too many womens ad networks, then there would be an epidemic of social networks for women, especially moms. Women love connecting with other women, and will do it even more so in coming years. In fact, the top three activities women engage in online are shopping, reading the news, and socializing via social networks and online communities. This is great news for womens social sites. Number of Women Online History predicts that this number can only go up as computers and internet access become more widely available.
Social Media Marketing Since social communities are here to stay, and women are extremely active in these communities, companies and brands are getting to the point where they cant ignore social media marketing any more. Nowhere is this more evident than it is on Twitter, where the election forced mainstream news agencies to embrace the medium. Brands who were early adopters such as Dell, Zappos, and Comcast are now the subject of numerous case studies with data to back up their efforts. Women Love a Deal Coupon and discount sites may seem very 1999, but were betting on the fact that *every* woman loves a sale. Now; women, and especially moms, will *need* a sale.
As more women move online, weve seen bargain hunters increase activity across our network of sites, even in this economy. The lowest prices will win, and any site that serves up savings is going to do well this year.
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CHAPTER
4
4. DATA ANALYSIS
4.1 WORLD INTERNET USAGE STATISTIC
Regional Analysis: As mentioned in the sampling parameters as well, majority of the respondents were from Asia, as this region amongst the seven broad classification of World region on the basis of internet usage has the maximum share of internet usage. Europe and North America formed the other major regions.
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4.2 WORLD ONLINE SHOPPING STATISTICS
Online shopping statistics out in October 2009 show a significant annual increase of 14%. This demonstrates once again the ability for Internet shopping to sustain momentum despite the downward trend in retailing figures which was visible in the last few months. This also brings out the e-tail sector picking up across the globe. The scope for online sales business is extremely high at present (post November onwards) as there is a general trend of enhanced sales in December (Pre-Christmas shoppers rush) which spills over to January, thanks to continuing post-Christmas sales. From the data obtained, it was seen that online sales of beers, wines and spirits globally were up 30% from last year. There was also an increase in online sales in the few days before Valentine's Day on 14 February 2009 which shows the scope for the coming valentines season. Categories which also have showed a year-on-year increase included gifts and lingerie, but electricals, clothing and footwear, and health and beauty all showed a drop.
We have already brought out the state of Online Shopping In India in the beginning of the report. Now, lets focus the trends in e-tailing across the growing economies of the world:
Online Shopping In China The Dragon Rises

According to a new statistics from ACNielsen, 63% Chinese internet surfers shops online. This means there are over 63 million buyers online in China (over 100 million internet users in China). In the study, the number indicates the most popular item in the online shopping industry are books (56% of Chinese online shoppers buy books); the second most popular item is Entertainment contents delivered via DVD, CD and online gaming (24% of Chinese online shoppers buy DVD, VCD and online games); the third most popular items are music CDs and clothing (23% of Chinese online shoppers buy music contents, cloths, shoes and hats). This trend is somewhat similar to the American online shopping developments over the last few years. (Especially when Amazon and eBay just took off) However, there is one huge difference between the online shopping behaviors between US and China: over 34% of online shoppers pay upon receiving the product they selected; 31% uses fund transfer via online banking; only 26% Chinese online shoppers use credit cards. The majority of the shoppers are university students. My guess is that wait till this generation graduate and earning a stable salary. Their online shopping budget will be increased gradually. Plus the rest of the Chinese population (92.1% of 1.4 billion) slowly understand this concept, China is going to have the largest online shopping community in the world.
Online Shopping In Japan The Tokyo Drift

According to latest data from Shopping and E-commerce businesses in Japan, the online shopping and e-tailing market including catalog shopping, TV shopping, online shopping and mobile shopping, will become $5.4 billion market in 2010, a 109% growth from 2008. It is been predicted on the basis of trends that online shopping will take up more than a half of the market with $27.4 billion sales, and mobile shopping will reach $4 billion by 2010.
Online Shopping In Australia The Heaven Down under

Everyone says there is an increase in online shopping in Australia. But it's hard to find solid data to back that up. Although the Australian Bureau of Statistics releases regular findings on population growth and employment rates, the most recent online shopping information seems to be dated June 06. The archive figures show a definite increase in online internet usage between 2004 and 2006, with 70% of Australians over 14 using the internet in the last month, although the primary online activities were email, general surfing and product research. Shopping and selling online did increase from 41% to 64% over that period, with the income from online businesses increasing by 19% from 2004 to 2005. The Australian Retailers Association provides more recent information, although the latest figures were not positive. The media release for 17 June 2008 was headed
"retail profits plummet as shoppers stop spending". 10% of retailers reported a decrease in profitability over the last quarter, despite 35% indicating that they increased prices over the period, although that covers online and offline retailers. The Norton Online Living Report (in their first bi-annual report at norton.com/onlineliving) states that 76% of online adults had purchased something online at some time. Mind you this was from a survey of 4687 adults from eight countries, and extrapolated. Around 55% of Australians have a high degree of confidence online, with around a third feeling confident sharing personal information when shopping online. The majority have security software on their computers, with basic precautions such as changing passwords, using multiple email addresses and staying on trusted sites. Hitwise has recent data about Australian internet usage, grouped by category. Their May 08 report says that top searches driving traffic to shopping sites online were ebay, trading post, ticketek, harvey norman, everyday rewards (Woolworths), amazon and target. Google.com/trends searches for "online shopping australia" show that volumes have been relatively consistant over the past few years, apart from seasonal peaks leading up to Christmas. Verisign is a global provider of infrastructure to communicate and conduct commerce with confidence, with digital certificates protecting over a million servers worldwide. From the Verisign site (courtesy of data from Ipsos-Insight), 69% of online shoppers are concerned about online credit card fraud, 85% concerned about identity theft, and 37% believe that online shopping is a risk factor for identity theft. Displaying a trust logo on a site is felt to be important by 94% of Australian online shoppers. The majority of shoppers prefer to use sites that display the Verisign Secured Seal.
Online Shopping In UK and Ireland The English Pie

Look at these statistics and forecasts from the UK: Online sales are 17% of all retail sales as per the latest reports obtained. Online shopping will grow by 137% from 8.9billion at the end of 2008 to 21.3billion by the end of 2011. Predicted that 30%-50% of all retail sales will be online within 5 years. Problem in obtaining the online sales record in UK and Ireland is that, if a consumer moves spending from a high street shop to buy online, that sale disappears from the official sales statistics. In effect, it looks like that the online sales are not taking place at all. I understand that in the current downturn overall spending sentiment is falling but not counting online sales is making the effect seem worse. Online shopping is a real shopping and has a huge future. There should be official statistics available for it.
Online Shopping In New Zealand The Kiwi Show

According to an Auckland University of Technology survey part of an international collaboration on the impact of the Internet on politics, the economy and society showed New Zealanders tend to prefer the Internet, even over family and friends, as a source of information for purchases. The results of the survey showed that: About 80 percent of New Zealanders use the Web Internet use falls with age
Internet use is higher for wealthy people and city dwellers One in every eight Kiwis have their own website and one in ten are bloggers 83 percent of Internet users surf the Web to research products, while 60 per cent buy things online. Speaking of shopping online, an article exposed that e-commerce revenue in New Zealand is expected to top $1.5 billion this year. Half of that figure, or roughly $750 million, is spent on travel (with Air New Zealand getting a fair chunk of that), while a whopping $500 million goes to Trademe, excluding vehicles and real estate. Trademe also accounts for a third of the countrys private vehicle sales and $250 million is spent on retail shopping.

Compared to other markets New Zealand, and to some extent Australia, are lagging behind.
4.3 RESPONDENT PROFILE:

Age Group: As mentioned earlier the total number of samples is 609. The bar chart below shows us the number of people across different age groups. Majority our sample lie between the age of 15- 25 years
Age Group Less than 15 15-25 25-35 35-45 More than 45 Average Age=
Freq. 3 309 224 60 13 609
Xi 7.5 20 30 40 50
XiFi 22.5 6180 6720 2400 650 15973 26.23
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Average age of the respondents was found to be 26 Years which is fairly a good estimate considering that majority of internet users below 30 Yrs of age..
Gender: Gender ratio was also fairly well representative of the entire population although the ideal would be 50:50 ration but in this study it was 68:32.
Monthly Income: About 75% of the sample, had a monthly income less than $1000; understandably so as the population consists of 60% from the developing countries and their were quiet a few student representatives as well. of Average income was $917.
Class Interval Less Than $500 $500-$1000 $1000-$2000 $2000 and Above Totsl Fi 215 210 127 57 609 Xi 250 750 1500 2750 XiFi 53750 157500 190500 156750 558500 917.1 (Average)
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4.4 INTERNET USAGE CHARACTERISTICS:

Point of Access: For the respondents the major access point for using internet is through their homes with a few more using the internet from office. The frequency of other access points is relatively lower.
35
Internet Usage: There was a mix response as to how much time the respondents use the internet for during a week for (Besides using it for emails). 31% of the respondents said they use it for more than 20 Hrs a week, 20% use it for 16-20 hours and 15% use it for 610 Hrs.
Class Interval Above 20 15 to 20 10 to 15 5 to 10 Less than 5 Total
Xi 191 130 98 121 69 609
Fi 25 17.5 12.5 7.5 2.5
XiFi 4775 2275 1225 907.5 172.5 9355 15.36 (Average)
The average amount of time that the sample spends on internet excluding mail is 15.4 Hours. The standard deviation is 7.7
Type of Internet connection: About 66% of the respondents use ADSL/DSL-broadband type of internet connection at home followed by 15% who use cable modem. This showcases the trend in internet penetration in the users homes.
4.5 IMPORTANCE OF ONLINE SHOPPING WEBSITES

According to the respondents 50 % feel that accessing shopping websites is important where as 15% stay neutral and 35% feel its not important. On an average, respondents felt that Shopping Websites are a little important for them but often can be done without as well.
37
96% of the respondents are aware of online shopping but only 82% of them have actually visited an online shopping website.
4.6 ADVANTAGES OF ONLINE SHOPPING

When asked which of the given factors were most important to the respondent for its advantage towards online shopping, highest average rating (on 100 point scale) was given to convenience (21) followed by accessibility and pricing - discount. Contrary to popular belief that 24 x 7 availability is major boost for online shopping, it got a paltry low rating of 15.
CHI- SQUARE TEST OF INDEPENDENCE: The 100 point ratings collected from respondents were checked for dependence on gender by performing a Chi-square test for their average ratings Ho: The mean ratings are gender independent H1: The mean ratings are gender dependent
Advantage Factors Convenience Accessibility Better Prices Discounts More Choices Price/ Feature comparison 24X7 availability MALE 24.93 16.97 14.95 16.58 11.93 14.64 FEMALE 17.04 15.59 24.07 18.37 12.48 12.44 TOTAL 41.97 32.57 39.02 34.95 24.41 27.08
Male E
20.98 16.28 19.51 17.48 12.21 13.54
Female E
20.98 16.28 19.51 17.48 12.21 13.54
[OE]/E
0.74 0.03 1.07 0.05 0.01 0.09
[OE]/E
0.74 0.03 1.07 0.05 0.01 0.09
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CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE TRANSACTIONS TOTAL 100 100 200 1.99 1.99
ChiSquar e Value ->
3.98
Comparing the tested Chi-square vaue with chi square value for Alpha = 0.05 with Degrees of Freedom = 5: Critical Chi- Square Value = 11.044
The calculated value lies in the acceptance region; hence, we retain the Null Hypothesis.
40
4.7 ONLINE SHOPPING BEHAVIOUR

74% of the total respondents have shopped or made payments using online banking facilities which is a relatively good measure to study the samples spending and pattern and behaviour when it comes to Online shopping. The analysis of the same is given below.
Mode of Payment: Out of the 74% who have shopped online, majority of the respondents have used Credit Cards as a means of payment followed by Debit Cards. Fair amount of people use Debit Card and Online Banking Payment modes
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Frequency of Online Purchase/Payments: Most of the respondents shop online once a month, with a reasonable number especially from European and American regions shopping more often. Respondents from Asian, Middle Eastern and African regions were found to shop less often.
Expenditures on Online Purchase/ Payments: 28% of the respondents engaging in online shopping spent between $10-20 on shopping online; 23% spend between $20-50, this showcases the size of the online shopping market in terms of volumes of transactions.
The average amount spent on online purchases was $39.5 which is not a big share for the average monthly income of approx. $917 for the respondents. This brings out the opportunity available for the e-commerce businesses.
Class Interval Less Than $10 $10 - 20 $20 - 50 $50 - 100 More than $100 Fi 46 171 142 59 39 457 Xi 5 15 35 75 150 XiFi 230 2565 4970 4425 5850 39.5 (Average)
4.8 FREQUENCY OF SERVICE SEARCHES AND ENCOUNTERS

We used a Likert scale and asked the respondents to rate the 12 different product/ service categories for the frequency of searches and encounters for each (1- often, 2- less often, 3- sometimes, 4- less rarely, 5- rarely) The top ranked choice was visits to travel websites with 309 responses. Whereas about 200 respondents said that they rarely come across garment selling and betting/gambling websites.
43
The graph below shows the average frequency of products searched online. As mentioned earlier, Travel services are most frequently visited/ searched for while Betting sites are most rarely visited/ searched for.
CHI- SQUARE TEST OF INDEPENDENCE: The Likert scale scores collected from respondents were checked for dependence on gender by performing a Chi-square test for their average ratings Ho: The mean ratings are gender independent
H1: The mean ratings are gender dependent

Advantage Factors
Travel Services Utility Services Entertainmen t Services Gaming Services Mobile Phones Laptops Other Electronic items Garments Books Betting Software Gift items
TOTAL
MALE 2.07 3.05 2.72 3.3 3.28 3.2 3.24 3.89 3.53 4.08 3.04 3.89 39.29
FEMALE 2.22 3.56 3.07 3.44 3.3 3.41 3.67 3.56 3.56 3.93 3.67 3.3 40.69
TOTAL 4.29 6.61 5.79 6.74 6.58 6.61 6.91 7.45 7.08 8.01 6.71 7.19 80
Male [OE E]/E

2.11 3.25 2.84 3.31 3.23 3.25 3.39 3.66 3.48 3.93 3.29 3.53 0.00076 0.01231 0.00507 3E-05 0.00077 0.00077 0.00664 0.01445 0.00072 0.00573 0.019 0.03671 0.10295
Female [OE E]/E

2.18 3.36 2.94 3.43 3.34 3.36 3.51 3.79 3.6 4.07 3.41 3.65 0.0007 0.0119 0.0057 3E-05 0.0005 0.0007 0.0073 0.014 0.0004 0.0048 0.0198 0.0336 0.0995
ChiSquar e Value ->
0.2 02
Comparing the tested Chi-square vaue with chi square value for Alpha = 0.05 with Degrees of Freedom = 5: Critical Chi- Square Value = 37.645
45
The calculated value lies in the acceptance region; hence, we retain the Null Hypothesis.
4.9 ONLINE SHOPPING ADVANTAGE FACTORS IMPORTANCE MEASUREMENT

Respondents were asked to rate the following choices according its importance as an advantage and disadvantage with reference to Online Purchases/ Bill Payments (on an interval scale). The scores were coded as follows:
+2 - Strongly agree +1 - Slightly agree 0 - Neither +1 - Slightly disagree +2 - Strongly disagree 4.9.1 Advantage Factors: The total is plotted as shown below. Convenience, variety of global products, customer review ability and accessibility are the most important factors to them.
The average rating of the factors is plotted as below:
47
4.9.2 Disadvantage Factors: The total is plotted as shown below. Transaction security, Personal privacy and security, and product testing inability are the most agreeable disadvantage factors to them.
The average rating of the disadvantage factors as per the coded scale mentioned above is plotted as below:
48
4.10 RESPONSE TO THE PROPOSED PRE-PAID MODE OF PAYMENT

When asked whether people would increase frequency and value of online purchases, if a prepaid means of payment was introduced; 68% agreed and 32% disagreed. This shows us that there indeed a huge scope for the pre-paid intent shopping market. We also have found that 74% of the respondents had a problem of not being able to purchase sometimes because of non-availability or non-usability of credit cards.
Also 66% respondents said they would be willing to shop on an international level if the prepaid facility was introduced while 34% said they wouldnt.
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4.11 IMPORTANCE OF ONLINE SHOPPING WITH ADVANTAGES OF ONLINE SHOPPING

CORRELATION: The importance of Online Shopping rating (as per Likert scale1-5) was correlated with the 6 categories of advantages amongst which the respondents distributed 100 points.
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The maximum correlation of the Variable Importance of shopping website was with variable Convenience = -0.143 (Negative Correlation), but it is not a significant value as it is below 0.25. Thus no one factor is actually causing an impact on Importance of shopping websites.
4.12 IMPORTANCE OF ONLINE SHOPPING WITH FREQUENCY OF ONLINE SERVICE SEARCHES AND ENCOUNTERS
CORRELATION: The importance of Online Shopping rating (as per Likert scale1-5) was correlated with the 12 categories of services/products that they most frequently look for and come across (again a Likert scale 1-5).
51
The maximum correlation of the Variable Importance of shopping website was with variable 11 (Software Services Downloads, Installations etc) = -0.390 (Negative Correlation), but it is not a significant value as it is below 0.50. Thus no one cagtegory is actually causing an impact on Importance of shopping websites.
52
CHAPTER
5
5. CONCLUSION
India and China have witnessed the strongest increase in online shopping over the last six months thanks to the growing middle classes and increasing Internet penetration in the two countries. According to a Visa eCommerce Consumer Monitor survey, online shopping continues to be popular among Internet users in Asia Pacific, and in terms of quarter-on-quarter growth, India and China have registered the strongest increase in online shopping over the last six months. With the rise of the middle classes in China and India and the increase in Internet penetration, it is not surprising that more people from these two emerging markets are going online and exploring the benefits from all that eCommerce offers. In the Asia Pacific region, close to nine in ten (89 per cent) people surveyed said that they had shopped online in the past 12 months. South Korea reported the most number of online shoppers (97 per cent), followed by China and Japan (94 per cent). In case of Australia, as many as 89 per cent of respondents said they shopped online. The survey further said that the most popular items to buy online in the past 12 months were travel tickets (55 per cent), books (50 per cent) and music downloads (49 per cent). E-commerce market in India may not be on the same level as it is in the U.S, but following the implementation of additional authentication process by RBI in August this year, the online shopping witnessed an unexpected growth. According to another Visa Report, consumers' satisfaction with the security of online payment systems is one of the reasons why more people in India have been shopping online. At least one in three respondents polled reported that they were very confident when using their credit payment cards online. Which entails the opportunity that lies in the 2/3rds of the population that can be tapped for the prepaid mode of payments for online purchases. The lower penetration levels of credit cards in India, has also been one of the reasons for a restrained growth of the markets. Our survey also found that Indian respondents spent an average of $200 in the past 12 months, while respondents from Asia Pacific spent an average of $250 during the same period. The top three reasons for shopping online, cited by a majority of Indian respondents are the freedom to shop anytime (75 percent), the ability to compare prices and save money (74 percent) and save time (74 percent). For the majority of Indian respondents who had shopped on overseas sites, the main overseas online shopping destination was the U.S. with 51 percent of them saying
that most of their international online purchases were from U.S. based websites. Despite the positive incidence of cross-border shopping in India, Indians are more concerned about the security of online cross-border shopping as compared with other Asia Pacific respondents. Even the new mandate brought by RBI is only applicable to Indian Banks. International cards that are the largest perpetrators of fraud are not governed by RBI's directive. So, merchants can expect little respite from online card fraud even with the directive. The e-commerce Industry in India experiences only 0.16 percent online fraud and most of the online card fraud is international. Travel services remains attractive for many consumers even as the global economic outlook remains cautious. Being able to search for a good deal, compare prices and save money is definitely a driver for consumers to go online.
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CHAPTER
6
6. RECOMMENDATIONS:
Credit cards and Debit cards have been a noon for shoppers throughout the globe because now they can go shopping without any fear of their money getting stolen. But using these as a mode of shopping online would always remain debatable because of the security risks attached to the online transactions. Credit Vs Debit Vs Pre-Paid The opportunity for Pre-paid mode of payment for online shopping also comes from the fact that there is enough part of Indian as well as Asian population who consider it inappropriate to shop with credit cards. How can I spend money that doesn't really belong to me? they question. It's more than two decades since India was introduced to credit cards. And yet, the ethical dilemma persists. These people however have no qualms about transacting through debit cards. Debit cards ensure that you don't spend beyond your means since the card swipe gets immediately reflected in your bank balance. It's good in a way, as it keeps a check on what's going out. But on the other hand, for those who maintain just the correct level of bank balances or operate with tight cash situations, a debit card serves very little purpose. The term plastic money' seems to fit debit cards better, as the risk of carrying cash and a debit card is more or less the same. Considering these factors credit cards and pre-paid modes do appear to a better choice especially if people can exercise discretion in their spending. A click away Yet a click too far With Internet facilities improving, online shopping is an easier option to avail shopping facilities. To make it safe using a card for transaction, a few precautions need to be taken. It should be checked if it is a secure website or not. The web address should start with https - the S' signifies that the website is secure. Scope for pre-paid cards Many people are rejected after filling out a credit card application because of poor credit. The problem with this is that a major credit card is needed to make reservations for hotels, motels, car rentals and airline flights. Credit cards are also necessary when placing orders online or over the phone. Does this mean a person with bad credit can't do any of these things? Not if that person opts for a prepaid internet payment card. A prepaid card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you're issued a prepaid credit card that can be used anywhere one would use a regular credit card. The best part of the prepaid credit card is that you can charge to your heart's content and you won't be in debt. The money is yours and once it's gone, you can't spend any more until you make another deposit. There are no bills and no interest charges. It's the same principle as using a debit card linked to a savings or checking account.
So what's the catch? First, a fee is charged to set up the account. The amount varies, but you can probably expect to pay about US$5 to $10 to open a prepaid credit card account. In addition, additional fees have to be paid every time you deposit more cash into the prepaid credit card account. For those with bad credit, the benefits of a prepaid credit card far outweigh the risks. They would be able to reserve rental cars or hotel rooms, and don't have to worry about credit card bills and interest payments later. The use of prepaid card to pay for a monthly Internet subscription, or to purchase an item where a fixed amount is deducted from their card each month, might be slightly difficult. Many of these businesses don't want to do business with a prepaid credit card because there's always the risk that there won't be any money in the account when it comes time to pay the bill.
58
CHAPTER
7
7.
APPENDIX
7.1 Questionnaire
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7.2 Bibliography http://www.buzzle.com/articles/online-shopping-trends.html http://www.work-at-home-net-guides.com/articles/online-shopping-trends.html http://www.indiamarks.com/guide/Online-Shopping-Trends-in-India/1626/ http://www.asiatraveltips.com/news09/411-SpendingAsia.shtml http://trendsupdates.com/online-shopping-unaffected-future-looks-bright/ http://www.ecommerce-guide.com/article.php/3793346 http://www.readwriteweb.com/archives/shopping_20_current_ecommerce_trends_redux.php http://www.escalatemedia.com/blog/women-online-in-2009-9-trends-to-watch-in-adown-economy/ http://news.bbc.co.uk/2/hi/business/7946754.stm http://blog.loaz.com/timwang/index.php/2005/11/03/new_statistics_on_china_high_s peed_internet/ http://blog.loaz.com/timwang/index.php/2005/11/12/some_statistics_on_online_shop ping_in_china/ http://www.web2asia.com/2009/07/17/q2-2009-china-internet-statistics-reportreleased/#permalink http://www.multilingual-search.com/author/motoko-hunt http://www.nzs.com/blog/nzs-blog-post/internet-survey-kiwis-rate-web-as-bestinformation-source/ http://www.nzs.com/jump.php?siteid=3374 http://blog.puddleducks.ie/2009/08/05/online-shopping-not-included-in-retail-salesstatistics/ http://www.articlesbase.com/internet-articles/online-shopping-statistics-in-australia488989.html www.fairtrading.nsw.gov.au/shopping/shoppingfromhome/internetshopping.html
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CONSUMER BEHAVIOUR TOWARDS INTERNET SHOPPING/ BILL PAYMENTS AND FEASIBILITY FOR PRE-PAID MODE OF PAYMENT FOR ONLINE

The Indian Institute of Planning & Management Bangalore

Internal Faculty Guide Prof. Tareque Laskar

Date: 16-02-2010 SIAF Place: Bangalore

4.9 4.9.1 4.9.2 4.10 4.11 4.12

CONCLUSION RECOMMENDATIONS APPENDIX

1.1 Online Shopping:

1.2.1 Online Shopping in India - A warhorse spreading its wings:

1.2.2 Online Shopping in China The Dragon spreading its wings:

Music: 85.5% Network News: 78.7%

1.3 Payment Modes:

2.2 Scope of the Study:

2.3 Sampling Plan:

WORLD INTERNET USAGE AND POPULATION STATISTICS

3.90% 42.20% 24.20% 2.90% 15.10% 10.50% 1.20%

23.4 253.2 145.2 17.4 90.6 63 7.2 600

24 253 145 17 91 63 7 600

24 300 127 24 83 39 12 609

2.4 Questionnaire Design:

2.5 Limitations of the Study:

3.1 ONLINE SHOPPING HISTORY

3.2 ONLINE SHOPPING TRENDS

Consumer Confidence In Online Shopping has Soared

Growth of the Internet

3.3 ONLINE SHOPPING SURGE Trying to Cash In on Social Sites

3.4 WOMEN SHOPPING ONLINE

4.1 WORLD INTERNET USAGE STATISTIC

4.2 WORLD ONLINE SHOPPING STATISTICS

Online Shopping In China The Dragon Rises

Online Shopping In Japan The Tokyo Drift

Online Shopping In Australia The Heaven Down under

Online Shopping In UK and Ireland The English Pie

Online Shopping In New Zealand The Kiwi Show

4.3 RESPONDENT PROFILE:

Freq. 3 309 224 60 13 609

XiFi 22.5 6180 6720 2400 650 15973 26.23

4.4 INTERNET USAGE CHARACTERISTICS:

Class Interval Above 20 15 to 20 10 to 15 5 to 10 Less than 5 Total

Xi 191 130 98 121 69 609

Fi 25 17.5 12.5 7.5 2.5

XiFi 4775 2275 1225 907.5 172.5 9355 15.36 (Average)

4.5 IMPORTANCE OF ONLINE SHOPPING WEBSITES

4.6 ADVANTAGES OF ONLINE SHOPPING

ChiSquar e Value ->

4.7 ONLINE SHOPPING BEHAVIOUR

4.8 FREQUENCY OF SERVICE SEARCHES AND ENCOUNTERS

H1: The mean ratings are gender dependent

Male [OE E]/E

Female [OE E]/E

ChiSquar e Value ->

4.9 ONLINE SHOPPING ADVANTAGE FACTORS IMPORTANCE MEASUREMENT

The average rating of the factors is plotted as below:

4.10 RESPONSE TO THE PROPOSED PRE-PAID MODE OF PAYMENT

4.11 IMPORTANCE OF ONLINE SHOPPING WITH ADVANTAGES OF ONLINE SHOPPING

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