Marketing online shopping - consumer’s perception on online shopping

A DISSERTATION REPORT
ON

“CONSUMER’S PERCEPTION ON ONLINE SHOPPING”

1

ACKNOWLEDGEMENT

I would like to thank my batch incharge

for extending

his helping hand towards this project and also assigning me the topic of “
Consumer Perception on Online Shopping” .

I would also like to express my gratitude to all the teaching faculty for giving
there valuable time for explaining all the topics clearly in a detailed manner.
Not to forget my friends and parents for their constant love and support.

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ABSTRACT
The growing use of Internet in India provides a developing prospect for online shopping.
If E-marketers know the factors affecting online Indian behavior, and the relationships
between these factors and the type of online buyers, and then they can further develop their
marketing strategies to convert potential customers into active ones, while retaining existent
online customers. This project is a part of study, and focuses on factors which online Indian
buyers keep in mind while shopping online.
This research found that information, perceived usefulness; ease of use; perceived enjoyment
and security/privacy are the five dominant factors, which influence consumer perceptions of
online purchasing.
A model was developed indicating online shopping behavior and acceptance among
customers in India. The model was tested with a survey sample (n=100). Factor analysis
technique in SPSS was used to classify these factors which buyers keep in mind while
shopping online.

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TABLE OF CONTENTS
ACKNOWLEDGEMENT
DECLARATION
ABSTRACT
1.

INTRODUCTION

06-24

2.

LITERATURE REVIEW

25-28

3.

PROJECT PROFILE /OBJECTIVE

29-32

4.

RESEARCH METHODOLOGY

33-41

5.

DATA ANALYSIS

42-73

6.

FINDINGS

74

7.

GENERAL DISSCUSION

75-83

8.

CONCLUSION

84-87

9.

LIMITATION

88-91

10.

RECOMMENDATION

92-97

11.

EXECUTIVE SUMMARY

98-100

12.

ANNEXURE

101-106

13.

CONCLUSION

107-109

14.

QUESTIONNAIRE

110-118

15.

BIBILIOGRAPHY

119-120

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1.0 INTRODUCTION
Internet is changing the way consumers shop and buys goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the
aim of cutting marketing costs, thereby reducing the price of their products and services in
order to stay ahead in highly competitive markets. Companies also use the Internet to
convey, communicate and disseminate information, to sell the product, to take feed back and
also to conduct satisfaction surveys with customers.

Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of online business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from business-to-business
commerce, the practitioners of business-to-consumer commerce should not lose confidence.

It has been more than a decade since business-to-consumer E-commerce first evolved.
Scholars and practitioners of electronic commerce constantly strive to gain an improved
insight into consumer behavior in cyberspace. Along with the development of E-retailing,
researchers continue to explain E-consumers’ behavior from different perspectives. Many of
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their studies have posited new emergent factors or assumptions that are based on the
traditional models of consumer behavior, and then examine their validity in the Internet
context.

1.1 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 diamond 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.
E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year 200607, growing at 95 per cent over 2004-05(Source: Internet and Mobile Association of India,
IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be too early to do
a comparison with the e-commerce scenes in countries such as the US where billions of

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dollars are spent online but the business in India is growing exponentially every year, albeit
from a smaller base, the total revenues have reached a respectful size.
1.1.0 Recent Developments
The number of users logging on to the Internet is growing by leaps and bounds. The number
of Indians who are online is expected to touch to 100 million by 2007-08, from the present
38.5 million according to the research conducted by IAMAI. The numbers indicate a
growing sense of comfort with the use of Internet for shopping. Accompanying this growth,
there is an increasing maturity in the way people use the Internet. It's a classical curve.
Online users typically start by using e-mail, gradually move on to browsing for news,
information and entertainment, and finally graduate to shopping and conducting business
online. Online sales have registered a huge jump and what was a concept five years ago is
now beginning to hit the mainstream levels. Roughly 10 percent of the world's population
more than 627 million people have shopped online at least once, in India it is just

sprouted and beginning to perish. Internet is now going beyond the simple exchange of
information to a shopping paradise. This medium is far bigger than expected, but many
retailers and marketers are not using it to its full potential.
Indian customers are increasingly getting comfortable with online shopping, and there is a
higher acceptability for the concept. India has 25 million Internet users and more is now

turning to online shopping. There has been an influx of online shopping sites in India with
many companies hitching onto the Internet bandwagon. The revenues from online shopping
are expected to more than double by 2006-07. According to IAMAI, the average number of
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transactions per month in India has gone up from 2 lakh in 2003-04 to 4.4 lakh in 2004-05
and has doubled to 7.95 lakh transactions per month in the year 2005-06. The online sales
during the festival season had increased rapidly especially during Diwali and Ramzan which
recorded a sales of Rs115 crore, a 117 per cent increase from the Rs53 crore in the year
2004-05(source IAMAI). These figures clearly show that online shopping has truly come of
age and consumers are keen to shop on the net. Effective customer communication on
products plus reduced shipping costs and timely delivery has helped online marketers to
seize a slice of the Rs 115 crore sales.
Online shopping has become the latest trend among shoppers. Indians are becoming more
comfortable with e-commerce. The consumer’s attitude has been evolving towards online
purchases. It has become increasingly positive over the years. The attitudes that drive people
to shop online, such as
convenience, price comparison and choice are improving tremendously in India.
Though a miniscule amount in the global context, the Indian online shoppers’ population
would make its presence felt quite remarkably. The potential of the Indian e-market can be
gauged from the fact that 16 percent of Indian consumers want to buy online in the next six
months, making it the third most online-potential country after Korea (28 percent) and
Australia (26 percent) (Source:IMRB). This is an indication of a growing breed of Indian
consumers who are not only better equipped but also more confident of the online

transactions. Indian businesses have also grown mature enough to move up the IT curve and
they are considering Business to consumer (B2C) e-commerce a viable revenue model.
Some
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of the companies that have benefited are baazee.com, indiatimes.com, rediff.com,
indiamart.com, fabmart.com, traveljini.com and sifymall.com.
Indiamart.com has witnessed a growth of more than ten times in just two years in its online
gifts domain. In the online travel domain, the company was able to generate an average
$8,000 worth of room bookings/month for its premium client. It is expected to touch $1520,000/month/client by the year-end, which is over 100 percent growth (Source:Indiamart).
Brick-and-mortar businesses are also building up e-commerce revenues. In the year 2005-06
Samsung India recorded a 120 percent jump in online buying from its site over the year
2004-05 (Source: Samsung). Nirula’s witnessed more than double growth in its B2C ecommerce revenues in the year 2005-06 and is positive for the next one to two years
(Source: Nirula’s). Companies like eBay India have seen a large increase in the number of
sellers and buyers from B and C cities and in a year the eBay community (buyers and sellers)
base has increased to 1.7 million users, which shows that more Indians are shopping online
(Source: eBay). Online sales are currently marked by a single digit growth, but the leading
garment retailers like Pantaloon, Shoppers’ Stop and Globus have already made business
strategies to enter into the world of e-retailing. Famous apparel brand Zodiac has already
started online stores. The main motive of these retailers through online sales is to reach the
global markets and the small towns where they do not have the outlets. Thus the India's
Internet shopping sector is preparing for a massive growth, which is fuelled by increasing
broadband usage and growing e-commerce.

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1.1.1 Online Activities
The Internet has entered the mainstream consciousness over the past decade. This has
happened primarily because the web has got a graphical interface and Internet has moved
from governmental control to private hands. The activities which are happening on the
Internet are email and instant messaging, general web surfing or browsing, reading news,
hobby searches, entertainment searches, shopping and buying online, medical information
searches, travel information searches, tracking credit cards, and playing games.
Communication i.e. email, chat or instant message is the basic activity for which Internet is
used. It is the single most important reason for people to go online. E-mail provides the
opportunity to communicate more often with a much broader circle of people than one can
reach by telephone or by mail in a convenient way. In India too email constitutes the major
activity on the Internet. It was found that more elderly people are increasingly using email as
compared to the younger generations.
In India the top five online activities are e-mail, surfing, chatting, search and job search.
Some of the sites, which are commonly used for these particular activities, are:


Yahoo -Most preferred communication portal, tops for email and chat



Indiatimes –Best event and sports news provider.



Naukri-Best recruitment portal



Google-Best information domain



Shaadi-Best for matrimonial services



eBay-Best online shopping portal

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(Source:IAMAI)
In India online trading, travel, recruitment, ticketing, real estate, classifieds and social
networking are a few spheres ripe for investment.
1.1.2 Employment
Today online job search market is expanding tremendously. According to IAMAI the
number of online job seekers had reached 6.5 million in 2005-06 and is expected to across
9.2 million in the year 2006-07. The market size of the Indian online recruitment industry in
2005-06 was 145 crore and it is estimated to reach Rs 241 crore for 2006-07 (source IAMAI)
this is mainly because of the increase in the internet penetration which has lead to an
increase in the users for whom net has become a convenient way to meet their needs. Every
year thousands of graduates pass out and look for employment opportunities, for these job
seekers Internet is the most convenient (24 hour a day) and the comprehensive medium to
research and look for jobs. Internet is advantageous to both the job seekers (saves time and
cost) and to the recruiters (easy access to the best talent pool) as a result there is a win a win
situation.
1.1.3 Banking & Trading
The net banking is increasing and it is estimated that 4.6 million Internet users are using
Internet for banking purposes and it is expected to grow to 16 million plus by 2007-08
(Source IAMAI). Trading stocks is also becoming a fast booming activity amongst the
Indians. The traders feel that trading through Internet is not that cheap but the convenience
provided by online trading is worth the costs involved. Traders can keep a regular check on
various stocks and it is easier to compare them. They can not only buy and sell stocks but
can also find the track record of various stocks, do technical analysis, can access live news
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from international news agencies such as Reuters, CNBC and can find opinions from other
leading brokers which help them do decide whether to buy or sell. More and more traders
today are making the immense use of these services, which shows that there is a huge
potential in this sector.
1.1.4 Matrimonial
As the popular adage goes, "Marriages are made in heaven" but today with so many
matrimonial portals in the market they help one find the best match for themselves. Some of
the popular marriage portals are shaadi.com, bharatmatrimony.com, Yahoo India matrimony,
MrnMrs.com, Matricorp.com and jeevansaathi.com.
These marriage portals have increased because there is a rise in the career orientation among
youngsters and increasing work pressures have resulted in less time for socializing. These
youngsters are becoming more independent and are now making their own decision in
respect of choosing their life partners. The marriage portals provide them the medium to
interact with the people who match their required profiles. These portals not only help in
finding a better match but also provide with services of astrologers, decorators, wedding
planners and caterers thus providing a whole lot of services in one basket. More Indians are
registering to these matrimonial portals and there seems to be a huge growth in the coming
years.
1.1.5 Online Ticketing
The growth in the online travel business today is phenomenal. The Indian online travel
business is worth $350-400 million and is growing at 40-50 per cent year by year, as the
online population of the country is estimated to be 25 millions (Source:IMRB). There has
been a significant increase in online ticket booking in India with a double-digit growth,
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which has also lead to an increase in Indian tourism. This growth in the travel industry has
definitely leaded to the increase in the travel portals. The scope for growth is immense in this
sector as more Indians are using the Internet.
Travel sites like MakeMyTrip.com (MMT) has been growing at about 20 per cent month-onmonth, for the last four months, selling 1,400 tickets a day on an average (Source:
MakeMyTrip.com). The online bookings in India was mainly stared because of the low cost
carriers like Air Deccan which sells most of it tickets online. The revenue of the Indian
Railway Catering and Tourism Corporation (IRCTC) has also increased phenomenally
because of the online ticketing. The advantages of online ticketing are both for providers and
for consumers as the providers benefit from infrastructure cost while for users it is a
convenient way to book tickets.
Thus Internet has become an indispensable part of life and has reduced the world to a global
village. Many corporates are getting into this bandwagon, as there seem to be a humongous
growth in the coming years. Airline, cinema, hotel bookings, etc are all increasingly going
online. The future of online business is bright therefore companies are providing more
convenient services to the consumers and thereby changing their mindsets and attitudes
towards life.
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.
If we observe the growth of Indian online transactions (Info by: IAMAI), it is getting
doubled year by year.
The usage of internet in India is only 4% of the total population. This is also getting
increased day by day as the costs of computers are decreasing and net penetration is
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increasing. The cost of internet usage is also getting lower, with good competition among the
providers. Wi-Fi & Wimax is also getting tested in Bangalore and other cities in India. This
will increase the usage as it goes more on wireless internet.
Indians are proving every time that they can beat the world when it comes to figures of
online shopping. More and more Indians are going to online shopping and the frequency of
India’s online buying is crossing the overall global averages.
1.1.6 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. There are about 200

million of middle-class population good spending powers. These people have very little time
to spend for shopping. Many of them have started to depend on internet to satisfy their
shopping desires.

1.1.7 Few Facts about Online Shopping
The figures from IAMAI show that the internet users in India will grow to 200 million by
2010. 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.
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•

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 2008 and it is expected to rise above $700 million by end March 2010.
•

Indians are also Shopaholics like other Asians. There is a strong booming young

adult population in India with good levels of disposable income.
In India
Over $50 Billion and growing rapidly - Most popular online shopping products include:
books (45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%),
apparel (35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music
downloads (21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools
(16%), home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), etc.
Payments
Online shoppers commonly use a credit card to make payments, however some systems
enable users to create accounts and pay by alternative means, such as:
•

Billing to mobile phones and landlines

•

Cash on delivery (C.O.D., offered by very few online stores)

•

Cheque/ Check

•

Debit card

•

Direct debit in some countries
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•

Electronic money of various types

•

Gift cards

•

Postal money order

•

Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the purchaser's
billing address and shipping address to be in the same country in which site does its
business, and still other sites allow customers from anywhere to send gifts anywhere. The
financial part of a transaction might be processed in real time (for example, letting the
consumer know their credit card was declined before they log off), or might be done later as
part of the fulfillment process.
ADVANTAGES
Convenience
Online stores are usually available 24 hours a day, and many consumers have Internet access
both at work and at home. Other establishments such as internet cafes and schools provide
access as well. A visit to a conventional retail store requires travel and must take place
during business hours.
In the event of a problem with the item it is not what the consumer ordered, or it is not what
they expected—consumers are concerned with the ease with which they can return an item
for the correct one or for a refund. Consumers may need to contact the retailer, visit the post
office and pay return shipping, and then wait for a replacement or refund. Some online
companies have more generous return policies to compensate for the traditional advantage of
physical stores. For example, the online shoe retailer Zappos.com includes labels for free
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return shipping, and does not charge a restocking fee, even for returns which are not the
result of merchant error. (Note: In the United Kingdom, online shops are prohibited from
charging a restocking fee if the consumer cancels their order in accordance with the
Consumer Protection (Distance Selling) Act 2000).
Information and reviews
Online stores must describe products for sale with text, photos, and multimedia files,
whereas in a physical retail store, the actual product and the manufacturer's packaging will
be available for direct inspection (which might involve a test drive, fitting, or other
experimentation).
Some online stores provide or link to supplemental product information, such as instructions,
safety procedures, demonstrations, or manufacturer specifications. Some provide
background information, advice, or how-to guides designed to help consumers decide which
product to buy.
Some stores even allow customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products. Reviews and now blogs gives
customers the option of shopping cheaper org anise purchases from all over the world
without having to depend on local retailers.
In a conventional retail store, clerks are generally available to answer questions. Some online
stores have real-time chat features, but most rely on e-mail or phone calls to handle customer
questions.
Price and selection
One advantage of shopping online is being able to quickly seek out deals for items or
services with many different vendors (though some local search engines do exist to help
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consumers locate products for sale in nearby stores). Search engines, online price
comparison services and discovery shopping engines can be used to look up sellers of a
particular product or service.
Shipping costs (if applicable) reduce the price advantage of online merchandise, though
depending on the jurisdiction, a lack of sales tax may compensate for this.
Shipping a small number of items, especially from another country, is much more expensive
than making the larger shipments bricks-and-mortar retailers order. Some retailers
(especially those selling small, high-value items like electronics) offer free shipping on
sufficiently large orders.
Another major advantage for retailers is the ability to rapidly switch suppliers and vendors
without disrupting users' shopping experience..
DISADVANTAGES
Fraud and security concerns
Given the lack of ability to inspect merchandise before purchase, consumers are at higher
risk of fraud on the part of the merchant than in a physical store. Merchants also risk
fraudulent

purchases using stolen credit cards or fraudulent repudiation of the online

purchase. With a warehouse instead of a retail storefront, merchants face less risk from
physical theft.
Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card
numbers being intercepted in transit between the consumer and the merchant. Identity theft
is still a concern for consumers when hackers break into a merchant's web site and steal
names, addresses and credit card numbers. A number of high-profile break-ins in the 2000s
has prompted some U.S. states to require disclosure to consumers when this happens.
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Computer security has thus become a major concern for merchants and e-commerce service
providers, who deploy countermeasures such as firewalls and anti-virus software to protect
their networks.
Phishing is another danger, where consumers are fooled into thinking they are dealing with a
reputable retailer, when they have actually been manipulated into feeding private
information to a system operated by a malicious party. Denial of service attacks are a minor
risk for merchants, as are server and network outages.
Quality seals can be placed on the Shop web page if it has undergone an independent
assessment and meets all requirements of the company issuing the seal. The purpose of these
seals is to increase the confidence of the online shoppers; the existence of many different
seals, or seals unfamiliar to consumers, may foil this effort to a certain extent. A number of
resources offer advice on how consumers can protect themselves when using online retailer
services. These include:
•

Sticking with known stores, or attempting to find independent consumer reviews of
their experiences; also ensuring that there is comprehensive contact information on
the website before using the service, and noting if the retailer has enrolled in
industry oversight programs such as trust mark or trust seal.

•

Before buying from a new company, evaluate the website by considering issues
such as: the professionalism and user-friendliness of the site; whether or not the
company lists a telephone number and/or street address along with e-contact
information; whether a fair and reasonable refund and return policy is clearly
stated; and whether there are hidden price inflators, such as excessive shipping and
handling charges.

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•

Ensuring that the retailer has an acceptable privacy policy posted. For example note
if the retailer does not explicitly state that it will not share private information with
others without consent.

•

Ensuring that the vendor address is protected with SSL (see above) when entering
credit card information. If it does the address on the credit card information entry
screen will start with "HTTPS".

•

Using strong passwords, without personal information. Another option is a "pass
phrase," which might be something along the lines: "I shop 4 good a buy!!" These
are difficult to hack, and provides a variety of upper, lower, and special characters
and could be site specific and easy to remember.

Although the benefits of online shopping are considerable, when the process goes poorly it
can create a thorny situation. A few problems that shoppers potentially face include identity
theft, faulty products, and the accumulation of spyware. Whenever you purchase a product,
you are going to be required to put in your credit card information and billing/shipping
address. If the website is not secure a customers information can be accessible to anyone
who knows how to obtain it. Most large online corporations are inventing new ways to make
fraud

more difficult, however, the criminals are constantly responding to these developments with
new ways to manipulate the system. Even though these efforts are making it easier to protect
yourself online, it is a constant fight to maintain the lead. It is advisable to be aware of the
most current technology and scams out there to fully protect yourself and your finances.One
of the hardest areas to deal with in online shopping is the delivery of the products. Most
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companies offer shipping insurance in case the product is lost or damaged; however, if the
buyer opts not to purchase insurance on their products, they are generally out of luck. Some
shipping companies will offer refunds or compensation for the damage, but it is up to their
discretion if this will happen. It is important to realize that once the product leaves the hands
of the seller, they have no responsibility (provided the product is what the buyer ordered and
is in the specified condition).
Lack of full cost disclosure
The lack of full disclosure with regards to the total cost of purchase is one of the concerns of
online shopping. While it may be easy to compare the base price of an item online, it may
not be easy to see the total cost up front as additional fees such as shipping are often not be
visible until the final step in the checkout process. The problem is especially evident with
cross-border purchases, where the cost indicated at the final checkout screen may not include
additional fees that must be paid upon delivery such as duties and brokerage. Some services
such as the Canadian based Wishabi attempts to include estimates of these additional cost,
[

but nevertheless, the lack of general full cost disclosure remains a concern.

Privacy
Privacy of personal information is a significant issue for some consumers. Different legal
jurisdictions have different laws concerning consumer privacy, and different levels of
enforcement. Many consumers wish to avoid spam and telemarketing which could result
from supplying contact information to an online merchant. In response, many merchants
promise not to use consumer information for these purposes, or provide a mechanism to optout of such contacts.
Many websites keep track of consumers shopping habits in order to suggest items and other
websites to view. Brick-and-mortar stores also collect consumer information. Some ask for
22

address and phone number at checkout, though consumers may refuse to provide it. Many
larger stores use the address information encoded on consumers' credit cards (often without
their knowledge) to add them to a catalog mailing list. This information is obviously not
accessible to the merchant when paying in cash.
Hands-on inspection
Typically, only simple pictures and or descriptions of the item are all a customer can rely on
when shopping on online stores. If the customer does not have prior exposure to the item's
handling qualities, they will not have a full understanding of the item they are buying.
However, Written and Video Reviews are readily available from consumers who have
purchased similar items in the past. These can be helpful for prospective customers, but
these reviews can be sometimes subjective and based on personal preferences that may not
reflect end-user satisfaction once the item has been received.
Because of this, many consumers have begun going to real-world stores to view a product,
before purchasing online. To combat the process, Target has requested distributors give them
equally low prices, or alternatively, exclusive products available at their store only

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CHAPTER - 2
LITERATURE REVIEW

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2.0 LITERATURE REVIEW
The current literature on consumer online purchasing decisions has mainly concentrated on
identifying the factors which affect the willingness of consumers to engage in Internet
shopping. In the domain of consumer behavior research, there are general models of buying
behavior that depict the process which consumers use in making a purchase decision. These
models are very important to marketers as they have the ability to explain and predict
consumers’ purchase behavior.
The classic consumer purchasing decision-making theory can be characterized as a
continuum extending from routine problem-solving behaviors, through to limited problemsolving behaviors and then towards extensive problem-solving behaviors [Schiff man et al.,
2001].
The traditional framework for analysis of the buyer decision process is a five-step model.
Given the model, the consumer progresses firstly from a state of felt deprivation (problem
recognition), to the search for information on problem solutions. The information gathered
provides the basis for the evaluation of alternatives. Finally, post-purchase behavior is
critical in the marketing perspective, as it eventually affects consumers’ perception of
satisfaction/dissatisfaction with the product/service.
This classic five stage model comprises the essence of consumer behavior under most
contexts. Nevertheless, the management of marketing issues at each stage in the virtual
environment has to be resolved by individual E-marketers. Peterson et al. [1997] commented
that it is an early stage in Internet development in terms of building an appropriate dedicated
model of consumer buying behavior. Decision sequences will be influenced by the starting
point of the consumer, the relevant market structures and the characteristics of the product in
question. Consumers' attitude towards online shopping is a prominent factor affecting actual
25

buying behavior. (Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6,
and NO.2, 2005)
Todd [1997] proposed a model of attitudes and shopping intention towards Internet
shopping in general. The model included several indicators, belonging to four major
categories; the value of the product, the shopping experience, the quality of service offered
by the website and the risk perceptions of Internet retail shopping. In the research conducted
by Vellido et al. [2000], nine factors associated with users' perception of online shopping
were extracted. Among those factors the risk perception of users was demonstrated to be the
main discriminator between people buying online and people not buying online.
Other discriminating factors were; control over, and convenience of, the shopping process,
affordability of merchandise, customer service and ease of use of the shopping site. In
another study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards specific
webbase stores, in which perceptions of the store's reputation and size were assumed to
affect consumer trust of the retailer. The level of trust was positively related to the attitude
toward the store, and inversely related to the perception of the risks involved in buying from
that store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected
the consumer's intention to buy from the store.
Consumer risk perceptions and concerns regarding online shopping are mainly related to
aspects involving the privacy and security of personal information, the security of online
transaction systems and the uncertainty of product quality. Trust is interwoven with risk
[McAllister, 1995]. One of the consequences of trust is that it reduces the consumer’s
perception of risk associated with opportunistic behavior by the seller [Ganesan, 1994]. Lack
of trust is frequently reported as the reason for consumers not purchasing from Internet

26

shops, as trust is regarded as an important factor under conditions of uncertainty and risk in
traditional theories.
Mayer et al. [1995] developed a model which combines traditional marketing philosophy on
consumer motivation to buy and the trust model. In this model, trust propensity; which is a
personality trait possessed by buyers; is an important antecedent of trust. In Internet
shopping, there is not much information available to the buyer regarding the seller, prior to
purchase. A buyer with a high propensity to trust will more likely be a potential customer
than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, benevolence
and integrity constitute the main elements of trustworthiness. Ability refers to skills,
competencies and characteristics that a seller has in a specific domain. In this context, sellers
need to convince buyers of the competence of their companies in the Internet shopping
business. Benevolence is the extent to which the seller is perceived by the buyer as wanting
to ‘do well’. Sellers have to convince buyers that they genuinely want to do good things for
buyers, rather than just maximize profit.

27

CHAPTER - 3

PROJECT PROFILE/
OBJECTIVES

28

3.0 PROJECT PROFILE
3.1 Objective of the Study
The objective of this research study is to investigate online consumer behavior, which in turn
provides E-marketers with a constructional framework for fine-tuning their E-businesses’
strategies. The specific objectives of this research are:
1.

To know the consumers awareness and perception about the products and services
provided on internet.

2.

To know how it provides products and services and satisfies their customers.

3.

To know how it reduces the uncertainty in purchase decision process.

3.2 Scope of the Study
1.

The Study was conducted among the Internet users.

2.

The Geographical area covered was Sec-18 Noida, Sec-29 Noida,

3.

The Study was based on a Schedule of Questions.

4.

The scope of internet shopping
It was a time of past to spared your business in market by conventional methods. Old
market is today converted in high tech markets. Today if you want to purchase any
item from abroad you need not to go or you need not to call them for a sample. You
can find their products and see the catalogue on internet. Internet enables you to shop
throughout world from the comfort of your home. Internet has some special
characteristics which no other medium have. Only internet can provide you such
special information even no salesman can help you as internet helps. Countless
29

people can see products at a single movement, as well as they can purchase the
product same time. You can compare various product and choose which is more
useful for you, You have the facility to visit websites as much as you like no
restriction on you here you will find approximately all world class brands and their
products you have the facility to compare them, arrange according to many types like
by price, by size, by category, by most salable item and many more. This facility
enables you to choose. This way of shopping provides a new way of shopping. You
get to identify the products, compare the prices and quality and view the products
from different angles. Testimonials and reviews are the unique feature of shopping
where you can share your experiences with other users/consumers. The most exciting
aspect of internet shopping is that it is a 24x7 affair! And youre free to shop on your
leisure hours and even holiday are useful for shopping for you. Your time is best
valued here. You need not to go market so no tension of conveyance, pollution,
traffic etc.
The other dimension is that you directly purchase the items from original merchant in
online shopping no mediator comes between you and merchant so it becomes
cheaper to purchase item. Fewer mediators less price. Merchant will also save his
money by selling of goods on internet. merchant need not to spent for staff,
showroom, other shop expenses. He can sale by less resources and less expenses,
some online store do not have their physical showroom they display their product and
services online and deliver goods on customer 's door such merchant save a lot of
expenses and they work in less capital thats why they are able to sale goods on low
prices.
Internet has a very bright future. If you want to increase your business and cross the
boundaries of region you need to take help of internet. Without going online you cant
30

think about your progress worldwide. In this regard you can see all large scale
business. Big brand, big shopping store are online. Online shopping is the demand of
todays modern time. Time and quality is the main subject of online shopping. Today
everybody is running to save time and who saves time automatically save money.
Day to day needed item is now available on internet and people prefer to shop online.
Not only for progress but also to survive in this competition era business internet
help.

Are you looking for the fastest website for online shopping at low price branded
products than http://www.shoppingsnooper.com/ is the one name in one of the fastest
and largest shopping search engine. Here you can search every type of products at
competitive prices. Visit http://www.shoppingsnooper.com/ to see the unbeatable
speed of searching.

3.4 Rationale of Study
Selling on internet has a large potential due to the very high targeting possibilities As a result
of this exceptional development, the online selling industry is becoming interested in the use
of internet to reach their customers. Hence a better understanding of online shopping is
critical to the effective use of this channel of approach to the consumer. It is especially
important to know what is the consumer’s perception towards online shopping, benefits
perceived by them and what factors attract them towards online shopping.

31

CHAPTER - 4

RESEARCH METHODOLOGY

32

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

4.2 Determination of information needs and sources
The following was the information required:
•

What is consumer’s attitude towards online shopping?

•

What are the key concern areas for consumers while online shopping?

•

Which factors shape the consumer’s attitude towards online shopping?

•

How has been recent shift taking place in online shopping?

4.3 Research Framework
Eleven different factors were identified by studying the existing models of consumer
attitudes(Refer Annexure 1, 2) that play an important role in online purchase, then a model
was proposed leading to online shopping.

33

The data was collected only through Questionnaires. The sample size was 100. And random
sampling was done among the internet users.

4.3.1 Proposed Model
After examining the 10 empirical studies, we identify a total of eleven interrelated factors for
which the empirical evidences show significant relationships. These ten factors are perceived
usefulness, perceived ease of use, perceived enjoyment, information on online shopping,
security and privacy, quality of internet connection, attitude towards online shopping,
intention to shop online, online shopping decision making, online purchasing, and consumer
satisfaction.
Six (perceived usefulness, perceived ease of use, perceived enjoyment, information on
online shopping, security and privacy, quality of internet connection )are found to be
ordinarily independent and five (attitude toward online shopping, intention to shop online,
decision making, online purchasing, and consumer satisfaction) are ordinarily dependent
variables.
Consumer satisfaction is considered to be a separate factor in this study. It can occur at all
possible stages depending on consumer’s involvement during the online shopping process.
The relationships between satisfaction, attitude, intention, decision making and online
purchasing are proposed to be two-way relationships due to the reciprocal influences of each
on the other. In addition, three of the antecedents, perceived usefulness, perceived ease of
use, perceived enjoyment , have been found to have direct impact on consumer satisfaction.
Perceived Usefulness

34

Perceived usefulness is defined as the degree to which a person believes that using a
particular system would increase his or her job performance. It is an important factor
affecting acceptance of an information system, because the ultimate aim of any person is the
superior job performance.
Perceived Ease of Use
This is an important factor that affects the acceptance of a particular information system. It is
defined as the degree to which a person believes that using a particular information system
would be free of effort. Hence an application perceived to be easier to use would more likely
be accepted by the user.
Perceived Enjoyment
Enjoyment refers to the extent to which the activity of using a computer is perceived to be
enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a
particular application.
Amount of Information
Amount of information is defined as the information which is available for the product
which a person wants to buy through online shopping. This factor eases the decision of the
user to actually buy the product or not, or which product to buy. This factor becomes even
more important in case of High Involvement product.
Security and Privacy
Security and privacy are the main factors which hinder the growth of online shopping. The
user is concerned about his ID and Password which can be stolen by persons with wrong

35

intentions and then misuse it. At the same time they are concerned that their personal
information may be sold to the third party which poses a serious threat to their privacy.

36

Quality of Internet Connection
Not only is the presence of internet connection necessary but also its Quality is important to
shop online. This is an important factor which determines whether the user would shop
online or not because presence of internet is a basic necessity for this mode of shopping
Attitude and perception towards online shopping
Consumer’s attitude and perception toward online shopping have gained a great deal of
attention in the empirical literature. It is believed that consumer attitudes will affect intention
to shop online and eventually whether a transaction is made. It refers to:1) The consumer’s acceptance of the Internet as a shopping channel
2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think
that shopping at this store is appealing).
Intention to shop online
Consumer’s intention to shop online refers to their willingness to make purchases in an
Internet store. Commonly, this factor is measured by consumer’s willingness to buy and to
return for additional purchases. The latter also contributes to customer loyalty. Consumer’s
intention to shop online is positively associated with attitude towards Internet buying, and
influences their decision-making and purchasing behavior. In addition, there is evidence of
reciprocal influence between intention to shop online and customer satisfaction.
Online shopping decision making
Online shopping decision-making includes information seeking, comparison of alternatives,
and choice making. The results bearing on this factor directly influence consumer’s

37

purchasing behavior. In addition, there appears to be an impact on user’s satisfaction.
Though it is important, there are only five studies that include it.
According to Haubl and Trifts (2000), potential consumers appear to use a two-stage process
in reaching purchase decisions.
Initially, consumers typically screen a large set of products in order to identify a subset of
promising alternatives that appears to meet their needs. They then evaluate the subset in
greater depth, performing relative comparisons across products based on some desirable
attributes and make a purchase decision.
Online purchasing
This is the most substantial step in online shopping activities, with most empirical research
using measures of frequency (or number) of purchases and value of online purchases as
measures of online purchasing; other less commonly used measures are unplanned purchases
Online purchasing is reported to be strongly associated with the factors of personal
characteristics, vendor/service/product characteristics, website quality, attitudes toward
online shopping, intention to shop online, and decision making (Andrade 2000; Bellman et
al. 1999)
Consumer satisfaction
It can be defined as the extent to which consumer’s perceptions of the online shopping
experience confirm their expectations. Most consumers form expectations of the product,
vendor, service, and quality of the website that they patronize before engaging in online
shopping activities.

38

These expectations influence their attitudes and intentions to shop at a certain Internet store,
and consequently their decision-making processes and purchasing behavior. If expectations
are met, customers achieve a high degree of satisfaction, which influences their online
shopping attitudes, intentions, decisions, and purchasing activity positively. In contrast,
dissatisfaction is negatively associated with these four variables (Ho and Wu 1999; Jahng et
al. 2001; Kim et al. 2001).

Information on online
shopping
Security & Privacy

Attitude
towards
online
shopping

Intention

to shop
online

Decision
Making

Online
Purchase

Perceived Usefulness

Perceived Ease of use

CONSUMER SATISFACTION

Perceived Enjoyment

4.4 Data Collection Method4.4.1 Primary Data
It is original primary data, for specific purpose of research project. For this project, I have to
use following common research instrument or toolQuestionnaire-

39

Questionnaire development is the critical part of primary data collection method. For this I
will prepare a questionnaire in such a way that it will be able to collect all relevant
information regarding the project. The questionnaire was designed using various scaling
techniques. The questionnaire was used mainly to test the model proposed for consumer
perception towards online shopping. Likert five point scales ranging from Strongly Agree to
strongly disagree was used as a basis of Questions. The data collection was done over a
period of 8 weeks
This was done by going directly to the respondents or through mails.
4.4.2 Secondary Data
It will be collected to add the value to the primary data. This may be used to collect
necessary data and records by different websites, magazines, annual reports, journals,
reference books, and newspapers, etc.

4.5 Sample Design
4.5.1 Sample Unit
For studying consumer perception on online shopping, samples were selected from noida
ncr.

4.5.2 Sample Media
The respondents in the samples are reached through personal interviews.

4.5.3 Sampling Methods
40

Sampling methods fall under two broad categoriesa) Non-probability sampling methods.
b) Probability sampling methods.

4.5.4 Sample size- 100

4.5.5 Research place- NCR region

4.5.6 Sample Design
I have prepared this project as descriptive type, as the objective of the study.

41

CHAPTER - 5

DATA ANALYSIS

42

5.0 DATA ANALYSIS
The objectives of the research were studied with respect to a regular online shopper who
shopped more than once because they would be the right respondent to give an insight about
the online shopping. Therefore it is firstly important to understand who is a regular online
shopper. In the survey the respondents where asked the following questions which helped to
know about a regular shopper.
1) FOR FACTORS AFFECTING ONLINE SHOPPING
Respondents were asked to rate the factors influencing online shopping purchase behavior.
In all six different factors were taken in questionnaire for getting the responses of consumers
.Here are those factors:

•

Information about online products and services

•

Perceived usefulness

•

Ease of use

•

Perceived enjoyment

•

Security

•

Quality of internet

Factor analysis was done using SPSS to extract the most important benefits derived by
customers’ point of view from the usage of online shopping.
43

RESULTS OF FACTOR ANALYSIS
KMO AND BARTLETT'S TEST
Kaiser-Meyer-Olkin Measure of
.667
Sampling Adequacy.
Bartlett's Test of
Approx. Chi83.193
Sphericity

Square
df
Sig.

15
.000

Communalities
Initial

Extraction

1.000

.572

1.000

.675

1.000

.763

1.000

.812

1.000

.260

Information
Percieved
usefulness
Ease of use
Percieved
enjoyment
Security
Quality of internet
1.000
.673
connection
Extraction Method: Principal Component Analysis.

Total Variance Explained

44

Extraction Sums of
Initial Eigenvalues
% of
Compo

Varianc

Cumulat

Rotation Sums of Squared

Squared Loadings
% of

Loadings
% of

Varianc

nent
Total
e
ive %
Total
e
1
2.571 42.853
42.853 2.571 42.853
2
1.184 19.732
72.584 1.184 19.732
3
.970
16.162
78.746
4
.695
11.592
90.338
5
.350
5.840
96.178
6
.229
3.822
100.000

Cumulat
ive %
42.853
72.584

Varianc
Total
2.417
1.338

Cumulat

e
40.276
22.308

ive %
40.276
72.584

45

Component Matrix (a)

Component
1
2
Information
.563

.505

.797

.201

.836

-.253

.886

-.166

.365

-.355

Percieved
usefulness
Ease of use
Percieved
enjoyment
Security
Quality of internet
.054
.819
connection
a 2 components extracted.

Rotated Component Matrix(a)

Information

Component
1
2
.362
.664
46

Percieved
usefulness

.684

.456

.873

.040

.890

.139

.463

-.213

-.222

.790

Ease of use
Percieved
enjoyment
Security
Quality of internet
connection
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 3 iterations.

47

Component Transformation Matrix

Componen
t
1
2
1
.943
.334
2
-.334
.943

Interpretation:
The value of KMO test is coming out to be 0.667, which suggests the validity for factor
analysis.
The principal component analysis is giving 72.584 as commutative % which is good enough
because data redundancy is less. Two components have been extracted with Eigen values
more than 1 after principal component analysis and rotated component analysis.

The output value shows that following factors can be safely extracted after factor analysis:
•

Information about online products and services(Extracted from component 2)

•

Perceived usefulness (Extracted from component 1)

•

Ease of use(Extracted from component 1)

•

Perceived enjoyment(Extracted from component 1)

•
48

2) FOR FACTORS CONCERNING ONLINE SHOPPING
Respondents were asked to rate the factors of concern for online shopping purchase

behaviour.In all six different factors were taken in questionnaire for getting the responses of
consumers .Here are those factors:

•

Not sure of product quality

•

Cannot bargain/negotiate

•

Not sure of security of transactions/credit card misuse

•

Need to touch and feel the product

•

Significant discounts are not there

•

Have to wait for delivery

49

Total Variance Explained
Extraction Sums of Squared
Initial Eigenvalues

Loadings

% of
Component
1

Total

Cumulative

Variance

%

Rotation Sums of Squared Loadings

% of
Total

Cumulative

Variance

%

Total

% of Variance

Cumulative %

2.437

40.625

40.625

2.437

40.625

40.625

2.418

40.292

40.292

1.226

20.428

61.052

1.226

20.428

61.052

1.221

20.357

60.649

1.021

17.013

78.065

1.021

17.013

78.065

1.045

17.416

78.065

4

.809

13.491

91.556

5

.507

8.444

100.000

6

-2.182E-3.636E-15

100.000

2
3

16
Extraction Method: Principal Component
Analysis.

50

RESULTS OF FACTOR ANALYSIS
Component Matrixa
Component
1
not sure of product quality
cannot bargain/negotiate
not sure of security of

2

3

.964
-.161

.055

.211

.933

-.024

.796

-.092

.728

there
have to wait for delivery

-.004

.145

product
significant discounts are not

.055
.235

.964

transactions/credit card mis use
need to touch and feel the

-.004
-.721

-.165

-.284

a. 3 components extracted.
Rotated Component Matrixa
Component
1

2

3

.953

.050

-.115

.152
.059

-.765
.953

.050

.152

.046

.010

.966

-.087

.793

.077

.762

-.048

-.236

product
there

a. Rotation converged in 4 iterations.
Compon
ent
1
2
3

1

2

3

.992

.069

.103

-.089

.973

.213

-.085

-.220

.972

51

Component Matrixa
Component
1

2

3

.964
-.161

-.004
-.721

.055
.235

.964

-.004

.055

.145

.211

.933

-.024

.796

-.092

.728

-.165

-.284

product
there

a. 3 components extracted.
Rotated Component Matrixa
Component
1

2


3

.953

.050

-.115

.152
.059

-.765
.953

.050

.152

.046

.010

.966

-.087

.793

.077

.762

-.048

-.236

product
there

a. Rotation converged in 4 iterations.
Compon
ent
1

1

2
.992

3
.069

.103

Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.

52

INTERPRETATION:
The principal component analysis is giving 78.065 as commutative % which is good enough
because data redundancy is less.
Three components have been extracted with eigen values more than 1 after principal
component analysis and rotated component analysis.
The output value shows that following factors can be safely extracted after factor analysis:
•

Not sure of product quality (Extracted from component 1)

•

Transactions/credit card misuse (Extracted from component 1)

•

Have to wait for delivery (Extracted from component 1)

Significant discounts are not there (Extracted from component 2

54

I Have you purchased anything online ever?
Fig. 1 Total Purchase Online

The research showed that 65% of the Internet users had shopped online while 35% had not
bought anything. This is mainly because of the changing lifestyle and taste patterns. As the
life is getting more and more fast paced more people are moving on to shop online mainly
because of convenience. This shows that a more Internet users are using it as a shopping
medium and there is a huge potential in this sector but one should not be carried away by
this figures. There could be a possibility that only a small section of the online shoppers are
shopping or only a particular category of good had brought about this huge number. As a
result the entire analysis was done in case of a regular online shopper to understand the
shopping behavior of the online shoppers.
The following question helped to understand who is a regular online shopper among the 65%
who had indulged into online shopping.

55

II How frequently did you purchase online?
Fig. 2 Frequency of Online Purchase

This helped to understand the purchasing behavior of the online shoppers. It was seen that
14% of the online shoppers had shopped more than five times and 74% had shopped 2-4
times. The frequency shows the acceptance of Internet as a shopping medium. Though only
a small amount of the online shoppers had purchased more than 6 times but still there is a
huge opportunity in the Internet arena. The 65% of the online shoppers who had shopped
more than once were considered as regular shopper and the entire analysis was based on
these regular shoppers.

56

5.1 The Internet Usage
It is necessary to study the amount of time spend by the regular shoppers on the world wide
web because this would give us clear picture as to understand whether usage and time spent
by the regular online shoppers has an effect on online shopping or not.
Fig. 3 Online Shopping & Internet usage by years

The diagram shows that shopping has increased with the usage of Internet over the years.
Regular shoppers who have been using Internet for more than one year had shopped to 98%
and regular shoppers who have been using Internet for more than five years have shopped to
78%. Internet is not a new concept for these regular online shoppers and they have been
using it for more than 5 years now. The increased usage over the years has lead to an
increase in shopping, as these regular shoppers are able to make use of the various ecommerce activities.

57

Fig. 4 Online Shopping & Internet usage by hours a week

The research shows that 36% of the online shopping had been done who use Internet for
more than 20 hours a week and 96% of the shopping has been done by regular shoppers who
have been using Internet for more than 5 hours a week. As more the regular online shopper
are using the Internet it is seen that they end up buying more also. This shows that Internet is
becoming an integral part of the daily activity of the regular online shopper. The regular
online shoppers who have been using Internet for more than 20 hours are more comfortable
and confident as a result they purchase more online as compared to who use Internet for less
number of hours. The study shows that the growing usage of Internet has lead to increase in
online shopping as seen above. There is a positive relation between increase usage of
Internet and online purchase. The marketers should capture this enormous growth, which can
be brought by the penetration of broadband and lowering the prices of computers. Thus
increase in usage of Internet over the years and the more time spent has lead to an increase in
shopping. But one needs to know whether online shopping is an integral part of regular
shoppers or not this understood as follows.

58

5.2 The web online activity
The following classifications are done to study the online activities in case of a regular
online shopper.
Fig. 5 Online Activities

The Internet offers four basic services communication (socializing service with peer group
or core group (email) or with new groups of people (chat), information services,
entertainment services and commerce services and shopping. The research shows 32% of the
regular online shoppers use Internet for communication while only 10% uses it for shopping
which shows that communication still forms the major activity among the regular online
shoppers.

59

Fig. 6 Online Activities by Age

This classification further provides an insight that Internet is mainly used as a means of
communication in respect all the age groups of the regular online shoppers. It contributes to
60% of the major activity among the regular online shoppers who lie between the age group
18-30 years. It could be seen that shopping as a basic activity on the Internet contributes to
the minimum. Internet as a medium of shopping is maximum used by regular online
shoppers between the age group18-30 years, which is 18% while above 50 years it is used
just to 2%. The increase in usage among the 18-30 years is basically due to high awareness.
The marketers should focus mainly on the age group between 18-30, as they are the main
drivers for growth. Thus the research shows that though the regular shoppers are using the
Internet for quiet some time now but shopping still remains a small part of the major activity

60

Fig. 7 Online Activities by Time

It is evident that regular online shoppers also spend a major part of their time in
communication unlike the occasional online buyers. In 0-5 hours a week they spend 77% of
their time in communication, which includes email, and chat as the major activity with
shopping which does not seem to exist at all. Information search constitute 20% of the time.
The information search increases as the regular online shoppers tries to figure out ways to
surf the Internet and access the information they require. It is true that more regular online
shoppers use Internet shopping sites to gather information about products rather than to
make a direct purchase.
But it is to be noticed that as the time spend increases communication falls and other activity
picks up like entertainment and finance. One could see from the graph that between 16-20
hours a week communication falls further but information search also falls as the regular
online shoppers becomes more focused in their information search rather than wandering
aimlessly in the Internet space. They continuously use search engines for routine information
needs. The time spent on entertainment increases marginally to 18%. As the people spend
more time it has been seen that activities like shopping and finance related needs increases.
61

The regular online shoppers who use the Internet for more than 20 hours a week has shown
that they have indulged into more shopping i.e.10%. It is true that as the regular online
shoppers spends more time on the Internet there is a possibility that they would end up
buying more as they are ease with the use of internet. Increased usage of Internet is
positively related to the buying behavior on the Internet.
AnalysisIt is true that increase in internet has lead to an increase in the online shopping as 78% of the
online shopping has been done by the regular online shopper who have been using internet
for more than five years and 36% of the online shopping have been done among the regular
shopper who uses the Internet for more than 20 hours a week. Thus increase in usage of
Internet has lead to an increase in online shopping. But shopping still constitute a small
amount of the major activity on the internet as 32% of the regular online shoppers uses
Internet for communication while only 10% uses it for shopping. Communication still
constitutes the major activity on the Internet.
5.3 Demographic Factors
Online behavior is affected by demographics i.e. by gender, education and income.
5.3.1 Hypotesis
1. More male Internet users are frequent online buyers than female Internet users.
2. Regular online buyers are better educated than occasional online buyers.
3. Income is higher in case of a regular online shopper than occasional online buyer.

62

Fig. 8 Online Shopping & Gender

Among the 65% of the online shopping, males (72%)had purchased more as compared to
women (28%). This shows that it is true that more males are shopping online as compared to
women. This is mainly because women still like to feel, see and touch the product before
buying. It was noticed that some of them felt shopping as a reason to go out with the family
and spend time together, which was not possible in case of online shopping. As more and
more Indian women are flocking to Internet there is a possibility that they might end up in a
purchase. Also an increase in the spending power in the hands of the women might lead to
an increase in the online shopping. The research showed that 28% of the women who
shopped online fall mostly in the service and executive class with an income above
Rs10,000. The marketers should make sure that they produce the item keeping in mind the
needs of the women population as they still continue to be an important decision maker
when shopping for the family.

63

Fig. 9 Online Shopping & Educational Qualification

Educational difference is a significant demographic variable, which shows that regular
shoppers who were better educated made more purchases online. 89% of the shopping has
been done by the regular shopper whose is educated with a graduate or postgraduate degree.
This shows that frequency of purchase is more in case of a higher educated regular shopper
as compared to a online shopping done by a regular online shopper with matriculate (8%)
and non matriculate (3%).

64

Fig. 10 Online Shopping & Income

Income and buying behavior are positively related. It was seen that a regular online shopper
with a higher income had purchased more online as compared to lower income online
shopper. This trend was seen in all segment of the population. It is true that more the income
in the hands of the population they would indulge in shopping. The service class had done
the major purchase in all the various levels of income. It can be seen that hardly any
purchase is done among the regular online shopper whose income lies below Rs5000.
AnalysisThus three hypotheses stated were true in case of the regular online shopper and it can
interpreted that online shopping is effected by demographics like gender, education and
income levels. Among the 65% of the online shopping, males (72%)had purchased as
compared to women (28%). There is a positive relation between education and income of the
online shoppers. 89% of the online shopping was done among the regular shoppers who
were educated with a graduate or postgraduate degree compared to 11% shopping who were

65

matriculate and non-matriculate. A 60% of the shopping was done by the regular shopper
who had income more than Rs 25,000 than 40% who had income less than Rs.25,000.
5.4 Motivating & Satisfaction Factors
To identify the factors which Internet users choose to buy or not buy online and how
frequently they make such purchases. Analyzing the importance of satisfaction level in the
online purchasing environment.
5.4.1 Hypothesis
Consumers who make frequent online purchases are higher in convenience orientation than
those who purchase occasionally.
Fig. 11 Online Shopping & Motivating Factors

It is believed that consumers whether online shoppers or non-online shoppers value price to
convenience but the study contrast this popular belief. The study showed that 32% of the
shopping had been done by the regular shopper who think convenience is the main driving
force while 23% of the shopping had been done for whom price was the main orientation for
66

shopping online. Other motivating forces, which had lead to online shopping, were saves
time (26%), product availability and superior selection (12%), and product comparison (7%).
Convenience here is characterized as ease of purchase, home delivery and ability to shop
24x7. These factors motivate the regular online shopper to buy over the Internet and regular
online shoppers who value convenience are more likely to buy on the web, as compared to
occasional online shoppers. Every connection is a potential for net shopping. Therefore the
companies should attract and retain its regular online shoppers, as the Internet is a tangled
jungle of web sites, which is possible at a click of a mouse. They should design strategies
and develop products keeping in mind the convenience factors.
Fig. 12 Barriers to Shopping Online

The main areas for concern in respect of the regular online shoppers while shopping were
privacy and security (33%). Most of them still preferred the conventional method of
shopping like the touch and the feel factor (21%). They felt that it is possible to see, feel,
touch and try the products before buying in a shopping store as compared to Internet
shopping. Other reasons that concern the regular online shoppers were inability to reach the
customer service (16%), hassle of returning the product (14%), technical foul –ups, hesitant
in purchasing from an unfamiliar source and person and delivery costs. The marketers
67

should formulate such strategies so that the privacy and security concern can be taken care
off.
Fig. 13 Convenience- The Motivating Factor

It has been seen that there is a positive correlation between the frequency of purchase and the
convenience factor for buying in the Internet arena. The regular online shopper who had
purchased more than 6 times (9%) for them convenience is the most important motivating
factor (48%)for shopping on the Internet. Convenience has been characterized as ease of
purchase, home delivery and ability to shop 24x7. The online shopper believes that large
amount of information about the product and the ability to compare prices is available at a
click of a mouse thus making the entire shopping experience very convenient. Thus the
marketers to should keep the convenience factor in mind while providing the goods and
services.

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5.4.2 Satisfaction Index
It is important to understand the satisfaction level among the regular online shoppers, which
had lead to online shopping. This could be understood by the satisfaction index and the
frequency of purchase among the shoppers.
Fig. 14 Satisfaction Index

A 55% of the regular online shoppers were satisfied with 12% dissatisfied. An important
thing to be noted is that only 2% of the regular online shoppers were highly satisfied while
31% of the regular online shoppers were neither satisfied nor dissatisfied. This shows
satisfaction level plays an important role in online shopping with more regular shoppers
falling under the category of satisfied. This shows that they were overall satisfied by the
experience of shopping online. But the companies should take measures so that the
dissatisfied and the neither satisfied nor dissatisfied category of regular online shoppers
could be moved to satisfied or highly satisfied. A note should be taken that only 2% of the
regular online shoppers are highly satisfied which shows that there are still concerns, which
poise the regular shoppers from using the Internet frequently as a shopping medium.

69

Satisfaction level can also be measured by the frequency with which the online shoppers
purchase online. According to human psychology it is true that frequency of purchase
depends upon the satisfaction level received. According to the figure 2 (already explained), a
74% of the regular online shopper has purchased 2-4 times and 9% had purchased more than
6 times indicating that an increase in the confidence level and accepting the Internet as a
shopping medium. The increase in the frequency of shopping was mainly because they were
overall satisfied by the entire shopping experience.
AnalysisIt is seen that the main orientation for buying among the regular online shoppers were
convenience (32%), saves time (26%), price (23%), product availability and superior
selection (12%), and product comparison (7%). The hypothesis stated that convenience is
major factor motivating the regular shopper was true as 75% of the regular online shoppers
who have shopped more than 5 times felt it was necessary as compared to 25% who shopped
less than 5 times.
The barriers to online shopping as stated by the regular online shopper were privacy and
security (33%), inability to touch and feel the product (21%), customer service problems
(16%), hassle of returning the product (14%), purchasing from unfamiliar source and person
(9%) and other problems (7%).
Satisfaction level plays an important role in online shopping, as 55% of the regular online
shoppers that are satisfied tend to purchase more. It can also be seen that 74% have shopped
more 2-4 times and 11% had shopped more than 5 times showing that satisfaction level plays
an important role in online shopping.

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5.5 Future and growth of Online Shopping
This can be understood by the categories of good bought by the regular online shoppers
presently and the future of the various categories.
Fig. 15 Present & future categories of Goods

It is seen that railway tickets 70% and airline tickets 93% are the most popular categories
among the online shoppers followed by books and electronic gadgets. This is the main
category, which is bringing about online shopping culture among the regular online
shoppers. The companies should bring out innovative ways so that there is a growth in other
categories of goods also. The entire shopping culture among the regular shoppers is brought
mainly by the travel categories followed by electronic gadgets. The graph shows that online
shopping is tend to grow in the coming years as consumers want to buy more in the future.
Table 1 Future Categories of Goods
Railway tickets

83%
71

Airline tickets

80%

Electronic Gadgets

50%

Books

43%

Gifts

33%

Movies tickets

30%

Jewellery

23%

Computer Software

20%

Hotel Rooms/Car Rental

20%

Event Tickets

13%

Toys

13%

Infant / Child items

10%

Food / Groceries

7%

Accessories apparel

3%

CD/Videos

3%

Magazines

3%

Home tools and products

3%

Sporting goods

3%

The table I shows that shows that there is a future growth in the electronic gadget and book
categories also apart from railway and airline tickets, which continues to be on the priority
list. There is a growth in these categories because traditionally products like audio-video,
apparel, and computer accessories were purchased through catalogs and other forms of direct
mail but toady online shopping serves a convenient means of distribution channel. Another
reason for the growth in these categories is because of well-established sites for travel,
audio-video (e.g., CD-Now), and computers (e.g.www.dell.com, www.sonyvaio.com),
which lure the consumers to buy these products. These goods do well because consumers are
not bothered much about the touch and feel factors, which generally drive the shopping in
72

India unlike categories like apparels and groceries where it still remain an important factor
while purchasing. It is difficult to change the set mindset of consumers for certain categories
of goods but still companies should keep innovating and find means and ways to attract more
online shopping.
AnalysisThere is a future growth in online shopping which can be especially seen in the travel arena
with railway 83% and airlines 80%, electronic gadgets (50%)and books (43%). Gifts also
seem to show a growth in the coming years. Thus the marketers should mainly focus on
these growing categories of goods, which would drive the online shopping in the future.

73

6.0 FINDINGS
The findings show that Internet usage has increased over the years and it is leading to an
increase in online shopping and also shows the consumers attitude and perception towards
online shopping. Communication still forms the major activity among the large number of
online shoppers as 32% of regular online shopper use Internet for communication as
compared to shopping (10%).
Online shopping is affected by demographics as it has been seen that more males are
shopping online as compared women online shoppers and there is a positive relation between
education and income levels with respect to the increased online shopping behaviour.
The most important motivating factor, which influenced the online shopping, was
convenience followed by time saving and price. Regular online shoppers considered
convenience as the main motivating factor while buying and were less price sensitive. But
the online marketers should attempt to differentiate their products or services making the
comparison easier. The marketers should bring out innovative ways so that the consumers
can do more online shopping while taking the full advantage of rich information, easy access
and convenience of the Internet.
One of the main concerns among the online shoppers was privacy and security. Another
reason that hindered online shopping was the touch factor. Consumers still preferred the
experience they get from traditional stores like feeling the store’s atmosphere, interacting
with a salesperson, and seeking sensory stimulation. This might hinder the use of certain
goods like grocery and apparel, as the touch factor is the main factor, which drives the
shopping for these goods. The future of online shopping is bright especially in the categories
of travel, books, electronic gadgets and gifts.

75

CHAPTER - 7

GENERAL DISSCUSIONS

76

7.0 GENERAL DISCUSSION
7.1 Indian E-Comm. Report Finds Heavy Spenders Driving Sales
By Devin Comiskey
August 16, 2008
A Survey by Indian research organization Juxtconsult found that more and more Indian
Internet users are opening their wallets online. While such hurdles as limited broadband
access and security concerns remain, the report finds there are currently more than 10
million shoppers online in India. While current trends point to increased e-commerce growth
in India, the online marketplace in the country of more than 1 billion people is still relatively
small.
Juxtconsult's survey found that 40 percent of all urban Internet users buy online, while 42
percent of the sales originate through just five percent of consumers. The survey was
conducted in April 2008and sampled more than 30,000 users.
"This section of buyers spends 5,000 rupees or more per month on the net," states the report.
"It is interesting to note that two out of every three heavy spenders are also 'netholics,' those
who are on the net for more than three hours per day...Of all those who buy online, only 25
percent are spending more than 1,000 rupees per month while the (remaining) 75 percent bill
less than 1,000 rupees per month." (1,000 Indian rupees is currently equal to approximately
$23 US.)
The report also found that buying and search patterns among Indians differ between genders.
"While 43 percent of male users buy online, only 31 percent of urban female users are
consumers as well. Women tend to search more. Defying their more common attitude

77

towards shopping, women are more guarded when it comes to the online market," says
Juxtconsult.
"Depending on the product type, nine percent to 25 percent are buying online, whereas 33 to
47 percent are searching the net for product information," it says.
7.2 Security Fears Persist
Juxtconsult says the motivation for Indian users to make purchases online varies, but users
fear compromised personal information is still a great risk when it comes to e-commerce.
"The single biggest motivation for buying online for net users is saving time. Thirty-two
percent of them look to shop online with this purpose. Convenience of shopping '24x7' and
home delivery are other major incentives," says the report. "However, the concern of
possible misuse of credit card or personal information is extremely significant among online
buyers, with almost 55 percent of them voicing their concern. Clearly, tackling and
countering the issue of online safety figures as an imminent challenge for net marketers."
7.3 Books, CDs Top the List
The products that are purchased most online in India, according to Juxtconsult, are books
and CDs - making up 25 percent of all online purchases.
"Ironically, computer hardware and software, despite having the home advantage are among
one of the least bought products online, with only 13 percent buying them," says the report.
"In sum, the online market in India is blossoming but is yet to take off in a considerable way.
The Internet is still being used more for searching than buying products and services.
Though a noticeable proportion of net users are also net consumers, essentially, at present
only a small tribe among them is driving online shopping momentum," says Juxtconsult.

78

LATEST
•

A new trend in this space is that of Meta search engines. Ixigo and Ezeego are two

players in this space. A Meta search engine searches all the online travel sites (including the
airlines sites as well) and displays the best deals for the user.
•

Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online Pvt. Ltd, are

battling to win over India’s Rs16,000 crore ($400 million) religious travel market
•

Opportunity in Online Travel Industry: $2billion

•

Online travel company MakeMyTrip (MMT) has recorded sales of Rs. 1000 crore for

the financial year ending March 2008, as per a release

79

CHANGING ATTITUDE TOWARDS ONLINE SHOPPING:
Malls malls springing up everywhere and yet people are e-shopping! And not in small
numbers either. E-commerce figures are going through the roof, according to Assocham
(Associated Chambers of Commerce & Industry of India). Today (2008-09) the figures are
touching Rs. 2200 crore, but are expected to increase by 150 percent by 2009-10 - to Rs
5,500 crores! And two metros - Delhi and Mumbai are driving the growth:

CITY
Mumbai
Delhi
Chennai
Kolkata
Bangalore

LOGGING ONTO E-SALES
Share in 08-09
Projection for 09-10
24%
40%
20%
30%
7%
11-12%
7%
10-11%
6%
9%

It was never thought that Indians would go in for e-shopping in such a big way. Ticketing,
travel bookings and even books and movies seem fine to buy online. Knowing that in India
sizes vary from brand to brand and quality is inconsistent, even of some electronic items,
how is it that there are people buying these items online?
Well, Assocham says that books are the hottest selling item on the internet. In fact most
products bought and sold off online are: books, electronic gadgets and railway tickets.
However, people are also buying clothes; gifts, computer and peripherals, and a few are
buying home tools and products, home appliances, toys, jewelry, beauty products and health
and fitness products.
80

Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai.
Here are few reasons for this:
1. Convenience
It is the major reason. Both the cities are spread out over a large area and the best
stores in both these cities are often concentrated in certain ‘posh’ areas. In Mumbai for
example there are certain items you get only in Crawford market which is at the other
end of town in South Mumbai. And demographics show that the population of Mumbai
is now concentrated in the suburbs. Of course, huge malls have come up in the suburbs
as well, and India’s biggest mall Nirmal Lifestyle is in far-flung Mulund but often you
find a better choice of sizes and styles choice in other malls, say Phoenix (central
Mumbai). And though both Mumbai and Delhi have transport system, few people like
to travel for two hours just to get to a shop at the other end of town. Clearly the
transport systems leave much to be desired. In Delhi, safety is also an issue for women
traveling alone in the evenings.
2. Literacy Rate and the Cities’ Internet Savvy Population
Most cities in India have a higher literacy rate as compared to the national average of
64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86 per
cent). Delhi too has a high literate population (81.2 per cent). Oddly, although
Bangalore has a higher literacy rate than Delhi, at 83 per cent, the city’s share of ecommerce is not very high. Kolkatta too has a literacy rate (80.8 per cent) and so does
Chennai (80.1 percent.) If one compares these rates to literacy rates of cities like Patna
(62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73 percent) its
clear why its the metros which are going to continue to lead e-shopping.
81

3 .Home delivery concept
In any case, home delivery is a concept that Indians are familiar with and love. The mall
craze has started only now. Earlier it was a choice between sweating it out in small crowded
markets, or asking a friendly neighbourhood kirana (grocer) to deliver groceries home and
this system is still thriving.
4. Increase in the Internet users
Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet
users across India. The demographic segments that have witnessed maximum growth
comprise college going students and young persons. These segments are the users of
advanced applications and technologies online and are most likely to be heavy E-Commerce
users.
4. Increase in the number of buyers and sellers
The success of a marketplace depends on the presence of a large number of buyers and
a large number of sellers. In addition to online buyers, many offline stores have begun
to sell their products in the online marketplace. The greater the number of sellers and
buyers, the faster the market grows.

82

PRODUCT PREFERENCES CITY WISE
•

Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies,
bookings, actually just about everything.

•

Well, Kolkatta prefers to buy music and movies online

•

Mumbai leads in all categories, except jewellery.

•

Delhites seem to prefer buying jewellery online as compared to any other city

Indian E-Comm. Report Finds Heavy Spenders Driving Sales
By Devin Comiskey
August 16, 2008
A Survey by Indian research organization Juxtconsult found that more and more Indian
Internet users are opening their wallets online. While such hurdles as limited broadband
access and security concerns remain, the report finds there are currently more than 10
million shoppers online in India. While current trends point to increased e-commerce growth
in India, the online marketplace in the country of more than 1 billion people is still relatively
small.
Juxtconsult's survey found that 40 percent of all urban Internet users buy online, while 42
percent of the sales originate through just five percent of consumers. The survey was
conducted in April 2008and sampled more than 30,000 users.
"This section of buyers spends 5,000 rupees or more per month on the net," states the report.
"It is interesting to note that two out of every three heavy spenders are also 'netholics,' those
83

who are on the net for more than three hours per day...Of all those who buy online, only 25
percent are spending more than 1,000 rupees per month while the (remaining) 75 percent bill
less than 1,000 rupees per month." (1,000 Indian rupees is currently equal to approximately
$23 US.)
The report also found that buying and search patterns among Indians differ between genders.
"While 43 percent of male users buy online, only 31 percent of urban female users are
consumers as well. Women tend to search more. Defying their more common attitude
towards shopping, women are more guarded when it comes to the online market," says
Juxtconsult.
"Depending on the product type, nine percent to 25 percent are buying online, whereas 33 to 47
percent are searching the net for product information," it says

84

8.0 CONCLUSION
The e-commerce is one of the biggest things that have taken the business by a storm. It is
creating an entire new economy, which has a huge potential and is fundamentally changing
the way businesses are done. It is believed that electronic commerce will become a huge
industry in the coming years and online shopping is now becoming a significant part of the
consumers daily life to meet their never ending requirements in a convenient way.
Online shopping is picking up and is becoming a trend. More consumers are indulging into
Internet shopping as seen by the research because of the value proposition it offers to a
customer such as convenience, 24x7 shopping, doorstop delivery, a broad product selection
and the ever-expanding range of unique and unusual gift ideas as well as increased consumer
confidence in shopping on the internet is increasing. The main motivating factor seen during
the research was the convenience and customer service which drives the people to online
shopping as a result today they are buying airline and railway tickets, books, home
appliances, electronic gadgets, movie tickets, etc by logging on to a web site, than driving up
to a store .As the research suggest that increase in usage of internet increases the online
shopping so there is a need to increase in broadband penetration as it accelerates the growth
of online trade. A huge buyers and sellers across demographics are shopping online because
of the changing lifestyles and shopping habits but the majority of the users are males. It was
seen that despite the immense possibilities available on the Internet it is mainly used for
mailing, chatting and surfing. E-mail applications still constitute the bulk of net traffic in the
country.

86

Increased Internet penetration, a hassle free shopping environment and high levels of Net
savviness see more and more Indians shopping online.
8.1 Barriers to the Growth of Online Market
8.1.1 Consumer Bias
Consumers often display a bias for brands that they know well and have had a good
experience in the past. Thus products of brands with a favorable bias will score over the
products of less popular brands. A few would risk buying expensive jewelry from an
unknown jeweler online.
8.1.2 Lack of ‘Touch –Feel-Try’ Experience
The customer is not sure of the quality of the product unless it is delivered to him and post
delivery of the product, it is sometimes a lengthy process to get a faulty or the unsuitable
product changed. Thus, unless the deliverables are as per the customers expectations, it is
hard to infuse more credibility in the e-Tailing market.
8.1.3 Mounting Competitive Pressures
To attract customers, the competing online players are adopting all means to provide
products and services at the lowest prices. This has resulted in making the consumers choicespoilt, who in turn surf various websites to spot the lowest price for the product. Thus,
although the number of transactions is increasing, the value of the products sold is
continuously falling owning to high competition and leaner margins.

87

8.1.4 Seasonality
E-Tailing Market is faced by seasonal fluctuations. As told by an Industry player, “August to
February is the peak seasons for sale, while March to July is the dry seasons for sale”.
During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day,
New Year, Christmas, Mother’s Day, Friendship Day etc are. On these occasions younger
generations prefers buying and sending gifts online.
8.1.5 Credibility in Payment System
Online frauds and breach are the biggest barriers to online sales. As a result, prospective
buyers prefer staying away from revealing their credit card and bank details.
8.1.6 Untimely Delivery of Products
It might take a few minutes to search, book and pay for products and services online, but the
delivery of the product may take unreasonable time.
It is a challenge for E-marketers to convert low frequency online buyers into regular buyers
through successful website design and by addressing concerns about reliable performance.
Thus, the online retailing raises more issues than the benefits it currently offers.

88

9.0 LIMITATION
Every study will have its problems and limitations at some point during the project. This
study is no different. The use of a non-probalistic sample in the research was a major
limitation because there was no way to make sure that the sample taken represented the total
population of the Internet users. A non-probability sample lacks the accuracy and precision
that a probability sample might offer. Though this samples provided a better insight about
the online shoppers but there could be a possibility that a respondent may have done online
shopping but is not a regular Internet user. It was seen that some respondents were biased
towards some questions. Another major limitation encountered doing the research
assignment was the issue regarding the time.
Limitation of the study is the selection of the existing studies. Owing to time limitation, only
a few number of journals were searched. This may leave some other prominent empirical
studies out. In addition, owing to the multidisciplinary nature of online shopping, it would be
very interesting to compare IS literature to other disciplines that study online shopping
attitudes and behavior.

90

LIMITATIONS, PERILS AND DANGERS OF ONLINE SHOPPING
Scams and internet fraud is no more news in the internet world. Scammers have gone deep
online. Millions of dollars are reported every day of the year to be lost by innocent souls.
Men and women are duped online every day without any form of comfort in their lives.
Since the internet is for all and sundry, excessive exposure to it could be dangerous and
risky. The problem with online shopping ranges from A to Z. They are avoidable if they are
known. It should be clear that not everybody online is there to buy or sell real products.
Some are there for fraud and online scams. I am a victim of such disaster before I learnt my
lesson in the hard way. Internet fraud is all over my dear reader.
As earlier quipped, internet fraud is very common on the internet market. Online
shopping is characterized with internet catastrophes. Since online shopping in the most
popular means of shopping, it is important to note that everybody is now online. Exposure of
the internet is now the avenue for some weaklings and indolent people to fraud innocent
shopping seekers. One need to be on the watch out against internet fraud when one is
sincerely going for online shopping.

Poor network server.
Sometimes in developing countries of the world has poor network provider. It could in such
a way limit one’s online shopping in any form. News has made it clear that internet
connections are faster than each other; some are very slow while some are time wasters to
say.

91

Goods in transit

Goods might be declared in transit when been tracked on the internet. This is a great
limitation. This hinders the buyer to receive the good at the stipulated time. He receives such
goods very late at the eleventh hour. It is very common to almost all shops. Steps are on to
set everything in the right order.

Currency barrier

Not every country in the world has the same currency. Dollars are popularly used but some
countries have no access to dollars. This has limited online shopping in the recent years.
There are limitations. There are dangerous strives. There are perils. Language could also
limit online shopping. Before you pay for anything online.

92

CHAPTER - 10

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