This document is a synopsis report submitted by Ram babu to Dr. APJ Abdul Kalam Technical University for a master's degree. It discusses online shopping in India and consumer attitudes towards it. The introduction provides background on how the internet has changed shopping and how companies use it. It then discusses factors influencing online shopping attitudes in India like increasing internet access and spending power. The literature review examines demographic factors like gender, age, and income that can impact online shopping attitudes. It also discusses how online trust is important for online purchase intentions.
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Synopsis on consumer attitude towards online shopping and their satisfaction
1. 1
SYNOPSIS REPORT
ON
“CONSUMER ATTITUDE TOWARDS ONLINE
SHOPPING AND THEIR SATISFACTION”
Submitted to Dr. APJ Abdul Kalam Technical University, Lucknow
For the partial fulfillment for the Degree of
MASTER OF BUSINESS ADMINISTRATION
(BATCH-2014-2016)
Submitted to:
Mr. Mohit Gupta Dr. Vishal Bishnoi
Project Supervisor HOD (Management)
Submitted by: Ram babu
Roll No.: 1403970020
INSTITUTE OF MANAGEMENT & RESEARCH
8 MILE STONE DELHI MEERUT ROAD, GHAZIABAD.
2. 2
INTRODUCTION
Internet is changing the way consumers shop and buy 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 communicates 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 the 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 which are based on
the traditional models of consumer behavior, and then examine their validity in the Internet context.
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ONLINE SHOPPING IN INDIA
The birth and growth of Internet has been the biggest event of the century. E-commerce in India has
come a long way from a timid beginning in the 1999-2000 to a period where one can sell and find all
sorts of stuff from a high end product to a meager peanut online. Most corporations are using Internet
to represent their product range and services so that it is accessible to the global market and to reach
out to a larger range of their audience. Computers and the Internet have completely changed the way
one handles day-to-day transactions; online shopping is one of them. The Internet has brought about
sweeping changes in the purchasing habits of the people. In the comfort of one's home, office or
cyber cafe or anywhere across the globe, one can log on and buy just about anything from apparel,
books, music, and jewellery to digital cameras, mobile phones, MP3 players, video games, movie
tickets, rail and air tickets. Ease, simplicity, convenience and security are the key factors turning the
users to buy online. It is a fact that a great online shopping revolution is expected in India in the
coming years. There is a huge purchasing power of a youth population aged 18-40 in the urban area.
FEW FACTORS THAT BOOST ONLINE SHOPPING IN INDIA
Rapid growth of cybercafés across India
Access to Information
The increase in number of computer users
Reach to net services through broadband
Middle-class population with spending power is growing. These people have very little time to
spend for shopping. Many of them have started to depend on internet to satisfy their shopping
desires.
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FEW FACTS ABOUT ONLINE SHOPPING
The figures from IAMAI show that the internet users in India will grow to 300 million by 2015. Around
25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35 Year range.
Indian online matrimonial sector is worth around $230 million.
Worldwide E-commerce is only growing at the rate of 28%, since India being a younger market,
the growth of e-commerce is expected at 51% in the coming years.
In line with global trends finally India has also started shopping online these days. As per the
study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522 million
in 2007 and it is expected to rise above $700 million by end March 2015.
CHANGING ATTITUDE TOWARDS ONLINE SHOPPING
“Awareness, Future Demand Focus for Emerging Markets & Current Issues” Malls springing up
everywhere and yet people are E-shopping! And not in small numbers either. Consumers are more
rational nowadays and have ability to get the choices from the market. Awareness among the
consumers is spread through internet. The number of internet users is increasing day by day which
attracts people who have an option to buy online. It was never thought that Indians would go in for e-
shopping in such a big way. Ticketing, travel bookings and even books and movies seem fine to buy
online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some
electronic items, how is it that there are people buying these items online? In India there are some
segments of people who have not yet tried purchasing over internet.
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ONLINE SHOPPING SITES:
Shopping Sites
PC Data Online issued top 20 web retailers on January 2001. The chart below is based on PC Data Online
data.
(1) Amazon. In Score (4.75) - Worldleaderine-commerce marketrecently startedoperation inIndia,
Now Indians can buyBooks, CDS and Electronic at cheaper price from Amzon.in. For limited time
they offering free shipping.
Amazon Coupons
Amazon Deals & Offers
(2) Flipkart.com – Score (4.78) – Founded in 2004 with only Rs. 400000 now in 2014 tuned over 60,000
Crore company. You can not only buy books online through Flipkart, but also mobile phones & mobile
accessories, laptops, computer accessories, cameras, movies, music, televisions, refrigerators, air-
conditioners, washing-machines, Clothing’s, Footwear’s, Accessories, MP3 players and products from a
host of other categories. After takeover of letsbuy.com now flipkart is largest player of e-commerce of
India.
Flipkart Coupons
Flipkart Deals & Offers
6. 6
(3) Snapdeal.com -Score (4.90) Snapdeal offers everything from local daily deals on restaurants, spas,
travel to online products deals. They offer you best price with free shipping.
Snapdeal Coupons
Snapdeal Deals & Offers
(4) Paytm.com– Score (5.01) – Started with Mobile Recharge and Bill Payment
website now Paytm selling everything from Home Decor, Clothing, Laptops to Mobile at killer price. In
very short time period Paytm has grown very fastly and able to place under our Top 10 Indian Shopping
Website list.
Paytm Coupons
Paytm Deals & Offers
(5) ebay.in -Score (5.02) After almost 6month of dominating at number 1 eBay has
come down at number two on indiafreestuff.in list. EBay. In is the Indian version of the popular online
shopping portal eBay.com – world’s online marketplace. EBay has a diverse and passionate community
of individuals and small businesses. EBay offers used and fresh items with a wide network of
international shipping. http://www.ebay.in
EBay Coupons
EBay Deals & Offers
7. 7
(6) Jabong.com:- score (5.11) Jabong Fashion & Lifestyle Store offers you great discount on all listed
product. They offers wide range of products from Apparel to Home needs.
Jabong Coupons
Jabong Deals & Offers
(7) Myntra.com :- score (5.16) Myntra.com is leading online retailer of lifestyle and fashion products.
Myntra offers T-shirts, Shoes, watches and more at discounted price.
Myntra Coupons
Myntra Deals & Offers
(8) Shopclues.com:- score (5.55) - Shopclues is famous for their heavily
discounted Jaw Dropping deals. Shopclues is one of the best online stores that offers a wide variety of
cameras, Computer accessories, Mobile, Gift, Jewellery, Cosmetics, toys, clothes, books and bag.
Their Jaw Dropping deal has become most liked deal of 2012.
Shopclues Coupons
Shopclues Deals & Offers
8. 8
(9) Pepperfry.com :- score (5.81)-Pepperfry is one of leading Indian website in selling lifestyle products
ranging from men and womens clothing, home decor, jewellery, perfumes and cosmetics, furnitures, bags
and accessories.
Pepperfry Coupons
Pepperfry Deals & Offers
(10) Homeshop18.com -Score (5.87) here you find large range appliances, kitchen, cameras, mobiles,
laptops, site, Indian, gifts, apparel, buy, online, gifts. And more, HomeShop18 is a venture of
theNetwork18 Group, India’s fastest growing media and entertainment Group. Network18 operates
India’s leading business news television channels – CNBC TV18 and CNBC Awaaz. HomeShop18 has
also launched India’s first 24 hour Home Shopping TV channel. The company has its headquarters in
Noida, UP. The website has received the ‘Best shopping site” award from PC World Magazine in 2008
Homeshop18 Coupons
Homeshop18 Deals & Offers
(11) Groupon :-Groupon India launched in 2011 offers Products and Service deals at good discount.
Groupon Coupons
9. 9
Groupon Deals & Offers
(12) Zovi.com :- Zovi is one stop destination for all shopping needs from Clothing to Accessories at very
reasonable price.
Zovi Coupons
Zovi Deals & Offers
(13) Infibeam.com – India’s Online Shopping Platform offers Buy Mobile Phones, Books, Apparel,
Jewellery, Cameras, Watches, Send Gifts to India, New/ Used Cars & Bikes in India a report says 40 lakh
visits per month by Indians on this site.
Infibeam Coupons
Infibeam Deals & Offers
(14) Firstcry.com :- Firstcry.com India’s largest store for Kids selling 70000+ items from 400+ top
International and Indian brands.
Firstcry Coupons
10. 10
Firstcry Deals & Offers
(15) Shopping.indiatimes.com :- Shopping.Indiatimes.com has a wide array of products that range from
electronic items to products related to health & beauty, home appliances, fashion, music, movies and
games.
Indiatimes Coupons
Indiatimes Deals & Offers
(16) Tradus.com – Tradus.in is owned by ibibo from books to clothes they sell
you everything and after buying Buytheprice.com they have become bigger. Tradus offers the Online
Shopping in India to buy Books, Mobiles, Cameras, Watches, Apparel, Home Appliances, Ipods & Many
More at Lowest Price & Free shipping although their refunding process takes more than expected time
and they don’t ship all over India but still at no 3 on our list.
Tradus Coupons
Tradus Deals & Offers
11. 11
(17) Futurebazaar.com -FutureBazaar.com is owned and operated by Future Bazaar India Ltd
futurebazaar offers you wide range with good price The people of behind this company are same from
bigbazaar, pantaloon and ezone.
Futurebazaar Coupons
Futurebazaar Deals & Offers
(18) Koovs.com:- Koovs offers best offers in dining, luxury, technology, entertainment, utilities, health
care, fashion, travel & adventure and plenty more.
Koovs Coupons
Koovs Deals & Offers
(19) Bestylish.com :- Bestylish is one stop destination for all your footwear shopping, they have good
range with good price.
Bestylish Coupons
Bestylish Deals & Offers
(20) Zoomin.com :- Now not only Photo gifts but also you can buy Camera, Mobile, ‚ Accessories and
more from zoomin with discounted rate.
12. 12
LITERATURE REVIEW
According to Haque et al. (2006), the attitude towards online shopping is considerably negative
among Malaysians internet users relatively, i.e. only approximately 30% showed positive attitude
towards internet shopping. Therefore, it is also important to recognize that numerous factors
precede attitude formation and change. The following sections explore the possible factors that
influence online shopping attitudes are:
Demographic factors
Demographic factors are common variables studied in online shopping related researches. As
mentioned by Defeng, Bingchuan, and Li (2006) in Delafrooz (2009), attitude towards online
shopping is influenced by demographic factors, such as gender, age and income. A study by
Hashim et al (2009) among UiTM part-time students also concluded their chosen five
demographic variables (gender, age, job designation, marital status and salary) are important
determinants of online shopping behavior. In terms of gender and education background, the
study by Osman et al (2010) to examine the attitude towards online purchasing behavior among
UPM students concluded that gender and education background have direct influence on attitude
towards online purchasing behavior. Chua et al (2006) also concluded that university graduates
in Malaysia are the highest users of online shopping. Haque et al (2006) concluded that only two
factors, gender and family income have significant relationship with overall attitudes towards
online shopping. The findings are consistent with earlier study which stated that men are more
interested in using various types of technology in the shopping process (Monsuwe et al, 2004).
Hence, men are found to be more positive about adopting online shopping. On the contrary,
female shoppers are found to prefer using catalogs to shop at home. However, it is found once
female showed preference in online shopping, they will shop more frequently online than their
13. 13
male counterparts (Burke, 2002 in Monsuwe et al,With regards to income, consumers with
higher household incomes intend to shop more online compared to lower income consumers. A
reason for this is that higher household incomes are often positively correlated with possession of
computers, Internet access and higher education levels of consumers (Lohse et al., 2000 in Na Li
& Ping Zhang, 2002). Similarly, Kim et al (2000) found that consumers who have more
disposable income are also more prone to purchase online. Case, Burns, and Dick (2001) in Na
Li & Ping Zhang (2002) also concluded from a survey on a group of university students that
internet knowledge, income, and education level are especially powerful predictors of Internet
purchases among them. Swinyard and Smith (2003) also found that more highly educated and
higher income groups are more likely to buy online than the less well educated and lower
income groups. Other studies also concluded that men were found to make more purchases
(Stafford et al, 2004) and spend more money online (Susskind, 2004) than women. Moreover,
a study by Haque et al (2007) also indicated that Malaysian males showed a more positive
attitude towards internet advertising compared to females.
According to Slyke et al (2002), men’s perceptions on online shopping were more favorable than
those of female consumers although Alreck and Settle (2002) found that there was no difference
in term of gender and age. In general, all these findings add to proofs and knowledge regarding
gender theory in internet use (Bimber, 2000).
In regard to age, it is common view that the younger users spend more time on the Internet than
older users and that younger users are also more knowledgeable about the Internet or technology
savvy in general. Hence, it is believed that younger age group should be more frequent online
shoppers by default. A research by Sulaiman et al (2008) in the study of e-ticketing trends among
urban communities particularly in Kuala Lumpur, revealed that online ticket purchasers are the
young, educated and with higher income bracket. However, a more recent study by Osman et al
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(2010) also concluded that age has no significant relationship with attitude towards online
purchasing behavior among UPM students in Malaysia. In contrast, Joines et al (2003) reported
that younger respondents were more likely to shop online. Swinyard and Smith (2003) also
concluded that online shoppers are younger. However, Zuroni & Goh (2012) revealed that there
is no significant difference in attitude towards online shopping among age group in Ipoh.
Online trust and customer online purchase intention
Online trust is a necessity when it comes to online shopping (McCole and Palmer, 2001). Due to
the risky nature of online shopping, trust and risk play significant roles in effecting online
transactions (Pavlou, 2003). Trust contributes positively towards the success of online
transactions (Jarvenpaa and Tractinsky, 1999). Online trust needs to be there when personal
financial information and personal data is shared while making a purchase online (Egger, 2006).
Online trust is based on the perception of the risks or benefits of the online transaction (Teo and
Liu, 2007). In the Indian context, the influence of the online trust as of mediating effect has been
studied on customer online purchase intention (Ganguly et al., 2009). Numerous studies have
concluded that the higher consumer online trust will result in higher customer online purchase
intention (Verhagen et al., 2006; McKnight et al., 2002; Lim et al., 2006;Ling et al., 2010).
Prior online purchase experience and customer online purchase intention
Future behavior is determined by prior experiences. Online purchases are still considered to be
risky compared to offline retail purchases (Laroche et al., 2005). In an online shopping
environment, prior online purchase experience leads to the reduction of uncertainties and
eventually leads to an increase in the customer purchase intention (Shim and Drake, 1990).
Online shoppers who have bought products online are more open and inclined to shop online
than others (Lee and Tan, 2003).
15. 15
OBJECTIVE OF THE PROJECT
This project research helps to find out what are the main factors affect the online consumer when
considering and making a purchase over Internet.
The objectives of the study are:
To study the online shopping behavior of customers.
To study the factors influencing online shoppers and consumers.
To study the customers level of satisfaction with regard to online shopping.
To examine whether customers prefer online shopping to physical stores.
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PROBLEM STATEMENT
During my research study I found that the customer facing the numerous problem in online shopping
in India. Some problems are listing here:
Quality and right product: It is one of the main problem in shopping online. after getting the
delivery of the product the customer may come to know that customer has purchased the wrong
product. the size which the customer is not as per customer requirement or might have chosen the
wrong size. if customer replace the product will have to pay the extra shipping charges.
Return policy: This is the another factor which is important while shopping online. Sometimes
the customers don’t look and feel of the product, there are chances to return while not satisfying
with the delivered product. Hence, the company do not accept the return policy of the product.
Hidden charges: while doing online shopping check the final price, as the shipping charges may
not be added in the product and display price may differ.
Security: There are some “scam online stores” also, on those websites online shopping may not
be safe, they may offer the products at low cost but might collect card payment details and
personal details.
Delivery problem: Some websites inform the delivery time immediately after the purchase of
the product, but not all. Sometimes the company do not delivered the product at the time.
Last but not least, I would like to mention that E-commerce playing a key role in human life in
current scenario because the people don’t have the time to go and shop the product in physical
stores, so they preferred purchase the product through online stores. That’s why I chosen this
study, and focuses on factors which online buyers keep in mind while shopping online.
17. 17
RESEARCH METHODOLOGY
STUDY:-
“CONSUMER ATTITUDE TOWARDS ONLINE SHOPPING AND THEIR SATISFACTION”
RESEARCH DESIGN METHODS:-
The type of research here is “Descriptive Research Design”. This kind of design is used for more precise
investigation or of developing the working hypotheses from an operational point of view. It has inbuilt
flexibility, which is needed because the research problem, broadly defined initially, is transformed into
one with more precise meaning in exploratory studies, which in fact may necessitate changes in research
procedure for gathering relevant data
COLLECTION OF DATA
SECONDARY SOURCES:-
Newspapers
Magazines
Internet sites
journals
SAMPLING UNITS:-
The sampling units have taken from Ghaziabad area.
SAMPLE SIZE:-
The sample size taken was 100.
18. 18
SAMPLING METHOD:-
The sampling method used for the project was “Random Sampling”. This type of sampling is also
known as probability sampling where each and every item in the population has an equal chance of
inclusion in the sample and each one of the possible samples. This procedure gives each item an equal
probability of being selected.
19. 19
THE EXPECTED RESEARCH OUTCOME OR CONTRIBUTION TO THE SAME:
According to me, In coming years definitely there would be increase number of buyers and sellers
towards online shopping. The success of a marketplace depends upon the presence of a large
number of buyers and sellers. In addition to online buyers, many offline stores will begin to sell
their products in the online marketplace. The greater number of sellers and buyers will lead to the
faster market grows.
Online stores are usually available 24 hours in a day, and many consumers have Internet access
both at work and at home even at villages. They may shop the products through online shopping
at any time with any devices may be mobile phones, tablets, PC’s, Laptop etc.
20. 20
TENTATIVE CHAPTER OUTLINE
S.No. Description Page No.
A Title of the research
B Introduction
C Literature review
D Objective of the study
E. The problem statement
F. Research methodology
G. Data analysis
H. Findings
I. Limitations
J. Conclusion
K. Recommendations and suggestion
L. The expected research outcome or contribution to the same
M. Tentative chapter outline
N. Bibliography
O. Annexure
21. 21
BIBLIOGRAPHY
Kotler Philip, (2003) marketing management, eleventh edition, Pearson education, Delhi.
Kothari c.r, research methodology, vishwa prakashan.
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9125330?_encoding=UTF8&node=1592138031
http://www.flipkart.com/about-us
http://www.snapdeal.com/info/aboutus
http://www.ebay.in/?aff_source=Google_cpc
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shopping+in+india
www.abhinavjournal.com
Alba, J., Lynch, J., Weitz, B., Janiszewski, C., Lutz, R., Saywer, A. and Wood, S.,
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Participate in Electronic Marketplaces”, Journal of Marketing, Vol. 61, No. 3: 38-53,
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Butler, P. and Peppard, J., “Consumer purchasing on the Internet: Process and Prospects”,
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647049.html
Http://www.ijsrp.org/research-paper-0613.php?Rp=P181300