INTERNET SHOPPING AND ITS IMPACT ON CONSUMER BEHAVIOUR

1. UNDERSTANDING CONSUMERS’ ONLINE SHOPPING AND PURCHASING BEHAVIORS

2. Members
Member Name Roll No.
Sujeet Karande 127
Prasad Tuwar 134
Prathamesh Gawane 137
Siddharth Kabra 153
Nishant M.B. 176

3. Introduction
• UNDERSTANDING CONSUMERS’ ONLINE SHOPPING AND PURCHASING BEHAVIORS.
• To study relevance between the consumer buying decision with respect to price ,
time , demography etc.
• To understand why or why not people purchase online.

4. Objective
• The main goal is to obtain quantitative evidence describing the actuality of
internet shopping in India.
• Our research to study consumer behaviour on Internet Shopping is based on
certain objectives:
• To study awareness of Internet Shopping among the people.
• To study the acceptance of Internet Shopping among consumers.
• To study the impact of Internet Shopping on purchase decision of consumers.
• To study the issues in internet shopping & their impact

5. Overview
• The internet is being developed rapidly since last two decades, and with
relevant digital economy that is driven by information technology also being
developed worldwide.
• Detailed product information and improved service attracts more and more
people.
• People changed their consumer behaviour from the traditional mode to more
rely on the internet shopping.
• The internet shopping particularly in business to consumer (B2C) has risen
and online shopping become more popular to many people.

6. Rise in online shopping in India
1. India's online shopping registering a phenomenal 100 per cent annual growth, many retail chains and
consumer durable companies are joining the Web bandwagon to tap the e shopping market.
2. According to Google, India has more than 100 million Internet users, out of which around half opt for
online purchases and the number is growing every year.
3. With such a large market size, companies, right from retail shops to consumer goods, are entering the
Web space to attract potential customers.
4. According to the Associated Chambers of Commerce and Industry of India (Assocham), the size of the
online retail industry is expected to touch Rs.7,000 crore by 2015, up from Rs.2,000 crore now, at an
annual growth rate of 35 per cent.
5. Keeping in mind this growing potential, not just large brands but even general retail chains are upgrading
their sites for ecommerce, making it more convenient for customers to place online purchase orders.
Source : indiatoday.intoday.in

7. Sample Method : Size : Location
• The data is collected from Facebook – other social media & tele-calling .
• Here population represents residents of Mumbai city.
• Sample selected comprises of business professionals, students & other educated
people of urban area only. Study undertaken use stratified sampling i.e. population is
divided into a 5 strata according to age, income & occupation. For each stratum, 15
respondents were picked by random means from different areas. Sample size of
research is 75.
• Questions were prepared using Nominal scale & Ordinal scale as attributes studied
were non parametric.

8. Sample Population’s Diversification
Variable Percentage
Gender
Male 52
Female 48
Age
Less than 18 5
18 to 30 58
30 to 45 28
45 to 60 5
More than 60 4
Income
Less than 10000 7
10000 - 20000 9
20000 - 30000 21
30000 - 50000 11
More than 50000 12
Not applicable 40

9. HYPOTHESIS OF RESEARCH
• Hypothesis 1: Age group between 18-30 years surf internet most.
• Hypothesis 2: Gender does not play any role in internet surfing.
• Hypothesis 3 : There is relation between respondent’s educational level and online shopping
• Hypothesis 4: There is relation between respondent’s Income level with their buying behaviour
• Hypothesis 5: Respondents find e-shopping more convenient because it is time saving,
availability of alternatives to choose from & possibly less expensive products and services.
• Hypothesis 6: Most of the respondents are hesitant to purchase items over internet because of
security concerns.
• Hypothesis 7: Usage of newer technology in online trading process is more complicated, affect
buying behaviour of respondents. Most of the respondents prefer traditional buying because
they do not prefer changes.

10. Hypothesis 1:
Age group between 18-30 years surf internet most.
0
5
10
15
20
25
30
35
40
< 18
18 - 30 years
31 to 40 yrs
41 to 60 years
> 60
Statistics shows that consumers between 18 to 30 age group surf the internet most

11. Hypothesis2:
Genderdoes not playany role in internet surfing
Gender does play a role in internet surfing
52%
48%
Gender
Males
Females

12. Hypothesis 3:
Thereisrelationbetweenrespondent’seducational level and onlineshopping
40%
36%
20%
4%
Educational level
Post graduate
graduate
Intermediate
Matriculation & below

13. Hypothesis 4:
• There is high degree correlation between income of the
respondents and their purchase decision.
%
less than 10000 10000 - 20000 20000 - 30000 30000 - 50000 Above 50000 Not applicable
42.66
22.66
18.66

14. Hypothesis 5:
Respondentsfind e-shoppingmore convenientbecauseit is
time saving,availability of alternatives to choosefrom &
possiblyless expensiveproductsand services.
• Respondents find e-shopping more convenient because it is time saving, availability of alternatives to choose
from & possibly less expensive products and services.

15. Hypothesis 6:
Most of the respondents are hesitant to purchase
items over internet because of security concerns.
• In order to prove the above hypothesis respondents were asked to rate the
drawbacks of the online shopping in the rating scale of 1-5.
• It was observed that 52% of the respondents claimed security concern
regarding disclosure of personal information as first rank.
• 48% of them rated lack of physical approach on products/services offered,
second.
• While quality & authenticity of products/services offered was rated fourth by
48% of the respondents.

16. Hypothesis7:
Usageofnewertechnologyinonlinetrading processismore
complicated.Mostoftherespondentsprefertraditionalbuyingbecause
theydonotpreferchanges.
 Consumers were asked if product/service of their requirements is
being offered online at reasonable price, then will they prefer to
buy that product/service online or purchase the same from brick &
mortar system.
 It is found that 68% of the respondents claimed product/service of
their requirement through traditional shop, while 32% favoured
online purchases.

17. Conclusion:
• Purpose of study was have a thorough analysis regarding different attributes of
Internet Shopping with age, gender & income of the respondents.
• It was found that there is no significant difference between internet surfing & gender
of the respondents. While age group of 18-30 years surf internet most. Main possible
reason behind this may be that younger people are more technology oriented & also
they may be working in organizations where they need to work upon computer and
internet.
• A strong relation exists between monthly income, occupation and purchase decision of
the respondents. People with higher income group usually have little time to go and
purchase products/services from tradition shops because of their busy schedule.
Hence in order to save time they trade online.

18. Conclusion (contd.)
• Most of the respondents (irrespective of gender) are hesitant to trade online
because of security reasons. There have been cases in the past where personal
information regarding passwords & identification theft has occurred.
• Besides this lack of physical approach, time required to deliver products &
authenticity of the product merchandised are other factors.
• Consumers do not have faith in most of the online trading sites.
• Also usage of newer technology has made online trading more complicated & people
resist changing, that is why consumers prefer traditional shopping as compared to
online trading.

19. Thank You