2. 2
A
Research and survey
On
Online shopping
Presented by:
T.Y.B.B.A.
Students of
GLS-INSTITUTE OF UNDER
GRADUATE BUSINESS
ADMINISTRATION
Submitted By:
KOMAL DULAM
Affiliated to Gujarat University
For the year 2011-12
3. 3
Index
Sr. No. Contents Page no.
1 What is online shopping? 6
2 The online shopper’s checklist 9
3 Executive Summary 12
4 Why do people prefer online shopping? 13
5 Statement of Objective 15
6 Methodology 16
7 Types of Data and Sources 18
8 Data collection Method 20
9 Sampling Decisions 22
10 Questionnaire 23
11 Data Analysis 32
12 Findings 44
13 Recommendation 46
14 Limitation 47
15 Conclusion 48
16 Bibliography 49
4. 4
ACKNOWLEDGEMENT
A project without proper guidance is like ship without a navigator. A
successful story is incomplete without paying tribute to those who
inspired it. We would like to express our gratitude towards all those
people who guided is for preparing this project, which was a great
learning process for us.
We are heartily indebted to Prof. Kavita shah and Prof. Minal Joshi
who guided us throughout project and gave up valuable suggestion and
encouragement.
We also express our sincere thanks to the Director Mr. V.B.Patel, who
gave an opportunity to learn from the practical training.
Once again we would like to thank all those people who gave their
valuable support by helping us in this project which is a great learning
experience.
Thank you………
5. 5
PREFACE
A child’s very first breathe questions his ability to adapt from one
environment to another that is dramatically changed. This element of
‘change’ dominates the world and adds a flavor of dynamism to it. It is a
constant process. In fact change is the only thing which remains
unchanged in the world.
A business doesn’t live in vacuums. There are external and internal
factors which comminutes business scenario and thus they causes a
twister called ‘change’ which affects the business environment.
6. 6
WHAT IS ONLINE SHOPPING?
Online shopping is the process of buying goods and services from
merchants who sell on the Internet. Since the emergence of the World
Wide Web, merchants have sought to sell their products to people who
surf the Internet. Shoppers can visit web stores from the comfort of their
homes and shop as they sit in front of the computer
Consumers buy a variety of items from online stores. In fact,
people can purchase just about anything from companies that provide
their products online. Books, clothing, household appliances, toys,
hardware, software, and health insurance are just some of the hundreds
of products consumers can buy from an online store.
Many people choose to conduct shopping online because of the
convenience. For example, when a person shops at a brick-and-mortar
store, she has to drive to the store, find a parking place, and walk
throughout the store until she locates the products she needs. After
finding the items she wants to purchase, she may often need to stand in
long lines at the cash register.
7. 7
In contrast, online shopping helps consumers avoid these
disadvantages. With online shopping, a person logs onto the Internet,
visits the store's website, and chooses the items she desires. The items
are held in a virtual shopping cart until she is ready to make her
purchase. The shopper can remain in her pyjamas as she does
her shopping, and the process can be conducted in the wee hours of the
morning or late into the night. Online stores never close — they're open
24 hours a day.
Despite the convenience of online shopping, not everyone
chooses to purchase items and services online. Some people like the idea
of physically going to a store and experiencing the shopping process.
They like to touch the merchandise, try on clothing, and be around other
people. Online shopping doesn't permit shoppers to touch products or
have any social interaction. It also doesn't allow them to take the
merchandise home the same day they buy it.
Other people may worry about shopping online because they fear
their credit card information will be compromised. Since it's necessary
to provide credit card information when purchasing products online,
people worry they may become the victims of identity theft. This
discourages some consumers from participating in online shopping.
8. 8
Another reason some consumers avoid shopping online is the fact
that they worry that the products they purchase are not accurately
portrayed in the website's picture. They worry that the picture of the
item may appear one way, but the actual item may look completely
different — perhaps of lesser quality. It's also impossible to try on
apparel when conducting online shopping.
A consumer has to rely on body measurements in order to make
sure the clothing will fit properly. If the clothing arrives in the mail and
it's too small, the consumer has to return the item. This is a potential
inconvenience that some shoppers may not wish to face.
9. 9
THE ONLINE SHOPPER'S CHECKLIST
There are lots of benefits to shopping online—you can save time, effort
and sometimes even money. But online shopping is different to
purchasing face-to-face. People can planned purchase
against the following points to help ensure people have an easy and
safe online purchase.
The seller
Before people buy anything online, get to know the seller people need
to know their contact details in case something goes wrong a reputable
business should make this information easy to find. A reputable
business should also have good customer feedback - friends, family or
other customers rate them highly.
The product or service
Read and look at the advertisement carefully—make sure that it is
exactly what people want. Consider the features and specifications such
as make, model, dimensions, condition, age, functions, customer
service and support. If people are unsure about something, ask the
seller for more detail before committing them self.
10. 10
The terms and conditions
Before buying, understand exactly what is involved in the purchase.
The terms and conditions of people for purchase should be outlined by
the seller—they may be located on a separate web page to the
advertisement. They should be clear and outline any extra warranties
offered by the seller, or policies covering security, privacy and returns.
The process
People must be clear about the payment and delivery processes
including method and important dates. The seller should have a
complaints procedure in place for if things go wrong. They should
provide customer support for any queries or problems.
The total cost
Make sure people know the total cost of people planned purchase. Like
they should mention whether they include the advertised price include
delivery, insurance and handling cost or there any taxes or duties.
11. 11
The payment
Only go ahead with the purchase if people are comfortable with the
payment method. If paying electronically, make sure that the seller uses
a secure payment system that encrypts your financial details. Look out
for a padlock symbol and the web address starting with https:// —this
indicates a secure payment process is being used. However, be aware
that scammers may be able to reproduce symbols to give you the
impression that a fake website is secure. If you have doubts, it is safer
not to proceed.
The paperwork
The copy of any forms, emails, documents or WebPages have filled in,
read or received—they are a record of the sale and will come in handy
if something goes wrong. This includes the advertisement, pictures, any
policies (privacy, security or refund), the terms and conditions, buyer
questions, receipts and payment forms.
12. 12
EXECUTIVE SUMMARY
Now a day, online shopping has become popular among
people, they have become techno savvy and feel very comfortable in
using internet. So online shopping has becoming a trend that is why we
thought to make a study on online shopping usage.
In the course of study various interesting facts were arrived.
A questionnaire was prepared having pointed an interesting information
having options. Our group visited people of different age groups to get
the questionnaire filed. We helped them understand some questions so
they could give us correct information. The information gathered was
compiled and analyzed to arrive at the very purpose of study.
However we did not fine difficulty in getting the questionnaire
filled by various segments as questions touched their heart. People were
filling questionnaire very keenly.
It is interesting to know that people in the age group of 15 to 30
years use online shopping more as compared to other age groups.
Normally in this age group students and professional people fall. It came
to know that people frequently visit the snap deal and flip kart for online
shopping.
13. 13
WHY DO PEOPLE PREFER ONLINE
SHOPPING
Some reasons given below why Online Shopping is liked by many:
Convenience
The convenience of this method of shopping is what like best
about it. Where else can people do shopping even a midnight
wearing your night suit? People do not have to wait in a line or
wait till the shop assistant is ready to help people with the
purchases. People can do shopping in minutes even if they are
busy apart from saving time and avoiding crowds. Online shops
give us the opportunity to shop 24 hours.
Better Prices
Another thing which fascinates people is the cheap deals and
better prices they get from online stores because products come
direct from the manufacturer or seller without middlemen
involved. Many online shops offer discount coupons and rebates.
14. 14
Variety
The choices people can get for products are amazing. One can get
several brands and products from different sellers at one place.
People can get in on the latest international trends without
spending money on airfare.
Send Gifts
Online Shopping makes sending gifts to relatives and friends
easy, no matter where ever they stay.
Comparison of Prices
Online shops make comparison and research of products and
prices possible. Online stores also give people the ability to share
information and reviews with other shoppers who have firsthand
experience with a product or retailer.
Compulsive Shopping
Many times when people go out on Shopping people end up
buying things which we do not require because of the shop
keepers up selling skills. Sometimes we even compromise on our
choices because of the lack of choices in those shops.
15. 15
STATEMENT OF OBJECTIVE
There are multiple principle goals of online shopping
which are determined by the end user.
General Goal:
Time and Energy saving
It is time saving and energy saving. Person can easily login
to online site while sitting at home. So by this we can say that it is time
as energy saving.
Availability
People while sitting at one place, can reach to number of
products with different varieties and can order them and would get them
at their door step.
Comparison of Products
Online shopping gives the benefit of comparing the products on
the various attributes like pricing, texture, substitution of products etc….
Thus, our aim of our project is to have understanding about the
online shopping behavior among different age-shoppers.
16. 16
METHODOLOGY
1. Deciding the subject of Research
Initially we had a lot of ideas for survey-based project.
Then it was mutually decided that the survey sample should be
huge. So we decided to take a subject in which we can get wide
range of sample size.
In order to face 21st
century internet prepares people of
different age groups to adapt to social and technological changes
that are taking place at an unprecedented rate. In this context
internet especially is a resource for continued education for the
acquisition of new knowledge and skills, for gaining information
through media. Online shopping is an example of internet
2. Framing appropriate Questionnaires
The initial steps of our project was to frame a less
complicated questionnaire so that our sample have a clear idea
what is being required from them and save their precious time .
The questionnaire was constructed to mirror many of the
queries that have been asked in previous studies of online
shopping, internet usage (i.e. between 15-30 years, 30-45years,
45-60 years)
17. 17
Space boundaries
Space boundary means the area that we have covered for
the survey. In this research, the scope for the survey was Ahmadabad,
Rajkot, and Gandhinagar.
This aspect focuses on how the youth people have change
their buying method and has become techno savvy.
18. 18
TYPES OF DATA SOURCES
Basically there are two types of data:
1) Primary data
2) Secondary data
1) Primary data:
Primary data are those data which are collected for the first time, taking
a sample, representing a population. It is not a published data, it is
problem specific data collected by the researcher, and it becomes the
secondary data for everybody, other than the researcher. It can be
collected in five ways:
1. Observational research
2. Focus groups research
3. Survey research
4. Behavioral data
5. Experimental research
19. 19
For this project we used primary data only. We adopted the
survey method to collect the primary data. Once the decision of
collecting primary data is taken, one has to decide about mode of
collection. We took the help of a structure questionnaire to collect the
information from the readers.
2) Secondary data:
Secondary data are those data, which are already published. It may be
useful for many other persons than the researcher who published it.
There are various sources of secondary data collection. They are:
1. Government sources
2. Commercial sources
3. Industry sources
4. Miscellaneous sources
As our subject is based on psychology of the people, we do not have any
secondary data.
20. 20
DATA COLLECTION METHODS
A market researcher has a choice of three main research instruments in
collecting data namely:
1. Questionnaires
2. Qualitative measures
3. Mechanical devices
-We have chosen questionnaires as the research instrument.
-A questionnaire consists of a set of questions presented to
respondents.
-Because of its flexibility, the questionnaire is by far the most
common instrument used to collect the primary data.
-Questionnaires need to be carefully developed and tested before
they are administrated on a large scale.
-In preparing questionnaire, a researcher carefully chooses the
questions, their formation and working sequence. The formation of
questions can influence the response.
21. 21
-Market researcher distinguishes between close-end and open –end
questions. Close-end questions specify all the possible answers and
provide answers that are easier to interpret. Whereas open-end
questions allow respondents to answers in their own words and
often reveal more about how people think. They are useful in
exploratory research, where the researcher is looking into how
people think rather than measuring how many people think in a
certain way.
22. 22
SAMPLING DECISIONS
We have undertaken target -oriented method for sampling. Our
target research included library, bookstores, households, schools and
colleges and public places.
Sample size:
Our sample is 360. We surveyed 360 samples, which were bifurcated
into 208 are male and 152 are female who use the internet for purchase.
Sample space:
The sample space of study consisted of 360 men, women, belonging to
different occupations, reading habits, qualification and monetary status.
23. 23
Questionnaire
(We would like to know more about how you use online shopping.
You can help us to learn more by filling out the questionnaire. We
do not share your answers with anyone else so they remain
confidential if you have any questions please ask your presenter.)
1. Name :________________________________________
2. Address :________________________________________
________________________________________
________________________________________
3. Contact No:_______________________________________
4. E-mail Id:_________________________________________
5. Gender :
Male
Female
6. Age-group:
Below 15
15-30
30-45
45-60
24. 24
7. Place of residence
Rajkot
Ahmadabad
Gandhinagar
Other please specify_____________________________
8. Occupation:
Student
House-Wife
Government Employer
Business
Others
9. Monthly Income
Below10000
10000-25000
25000-35000
35000-45000
45000-above
10. Do you use internet?
Yes
No
25. 25
11. How long you have been using internet?
Less than 1year
1-3 years
3-5years
More than 5 years
12. On an average how much time you spend on surfing the web?
0-5hrs
6-10hrs
11-15hrs.
16-20hrs
More than 20hrs
13. For what activities you use internet?
Social networking
Information gathering
Entertainment
Finance
Shopping
26. 26
14. Where do you most often access the internet?
Home
Office/ college
Cyber Café
Others please specify__________________________
15. Have you done online purchase?
Yes, continue to buy,
yes, but discontinued,
Never
16. Which one is better for shopping as per your view?
Online shopping
Manual shopping
17. What would you purchase through online shopping?
Clothes
Electronics
Jeweler
Accessories
Other please specify______________________
27. 27
18. What would be your main motivation for buying through
online shopping? (Rank from1 to5, 1 is highest)
saves time
Easy of purchase through online
Avoided hassles of shopping in store
Price
Superior selection/ Availability
19. Overall, were you satisfied with your experience of online
shopping?
Yes
No
Can’t say
20. What according to you is most alarming barrier to purchase
online?
I am worried about giving my credit card no.
I like to see the product in personal before buy it
The process is expensive due to access
Insecurity& Net connectivity trouble
28. 28
21. Do you think online shopping is expensive or not in
comparison of manual shopping?
Yes
No
22. In online shopping delivery of goods is more time consuming
or not?
Yes
No
23. Did you face any problem while making online purchase?
Yes
No
29. 29
24. If yes, what are the problem that you faced while making
purchase transaction through online shopping?( more than one)
Pages took too long to load that I gave up,
Site was so confusing that I could not find the product
Desired product was not available
System logged off before compulsion
Tried & failed to contact customer service
Wrong/ Bad product arrived & could not return
Others please specify _____________________________
_____________________________
25. What was the impact on your online shopping behavior in
general?
Stopped shopping online,
Stopped shopping online but for only product or category
of product,
It had no impact what so ever,
Others please specify _____________________________
30. 30
26. Which is your favorite site for online shopping?
www.skyshop.com
www.shapdeal.com
www.flipkart.com
www.yebhi.com
other please specify_______________________________
________________________________
27. What amount of your monthly salary do you spend on online
shopping?
10%,
20%,
30%,
50%,
more than 70%
28. If the product has the same price both in shops &on the
internet, where do you prefer to buy it?
Shops
Internet
33. 33
Q. What Is Your Occupation?
Occupation Male Female Total
Student 123 109 232
Housewife 0 24 24
Government
employer
15 6 21
Business 43 4 47
Other 27 9 36
Total 208 152 360
Conclusion: Majority of the population in the sample are students i.e
approximately 45% of the sample size are students with business people
being the 2nd
major occupation.
123
0
15
43
27
109
24
6
4
9
0 50 100 150
STUDENT
HOUSEWIFE
GOVERNMENT EMPLOYER
BUSINES
OTHER
FEMALE
MALE
34. 34
Q. How Long You Have Been Using Internet?
Years Male Female Total
LESS THAN 1
YEAR
49 53 102
1-3 year 67 44 111
3-5 year 57 28 85
MORE THAN 5
YEAR
35 27 62
Total 208 152 360
less than 1
year, 102
1-3 yr, 111
3-5 yr, 85
more than 5
year, 62
0
20
40
60
80
100
120
less than 1
year
1-3 yr 3-5 yr more than 5
year
Internet using
Internet using
35. 35
Conclusion: Male consumption of internet is on yearly basis is highest
than that of females. Around 35 males out 360 are enjoying the benefit
of internet since last 5years with 27 that of females. 67 males have been
using the internet service from last 3 years with 44 of females on the
next end but since last 1 year the usage of internet among females have
increased in comparison to males.
36. 36
Q.Activities for Which Internet Is Using
Activities Male Female Total
Social networking 115 103 218
Information
gathering
120 98 218
Entertainment 91 50 141
Finance 34 10 44
Shopping 58 34 92
115 120
91
34
58
103 98
50
10
34
0
50
100
150
200
250
Social activities Information
gathering
Entertainment Finance shopping
Female
Male
37. 37
Conclusion: The activity for which internet is used majority is for
gathering information i.e. through various websites and the second major
activity is social networking. Around 115 men and 103 females used
internet for enhancing their knowledge. Internet services for dealing in
shares, investments, stocks are least only 34 from males and hardily 10
females use internet for activities relating to finance.
38. 38
Q. Main Motivation for Buying Through Online Shopping.
0
20
40
60
80
100
120
140
160
180
200
1 2 3 4 5
Saves time
Easy of purchase through online
Avoided hassles of shopping in
store
Price
Superior
selection
Rank Saves
time
Easy of
purchase
through
online
Avoided
hassles
of
shopping
in store
Price Superior
selection/Availability
1 193 60 39 52 16
2 81 68 77 106 25
3 48 105 67 55 85
4 28 90 96 70 70
5 10 36 77 71 157
39. 39
Conclusion: From the above we can say that majority of people think
that online shopping helps in saving time of customers with easier
purchasing being the next motivating factor.
40. 40
Q. What according to you is the most alarming barrier to purchase
online?
Barriers Male Female Total
Worried about giving-out credit card no.+
personal info.
78 44 122
To see the product in personal, before buy
it.
108 89 197
The process is expensive due to cost of
access.
22 9 31
Insecurity + Net connectivity trouble. 22 21 43
41. 41
Conclusion: When analyzed the major barriers of online shopping
majority of males and females i.e. 108 males and 89 females considered
product visibility i.e. to see the product in personal information being the
2nd
.
0
20
40
60
80
100
120
140
160
180
200
Worried
about giving-
out credit
card no.+
personal info.
To see the
product in
personal
, before buy
it.
The process
is expensive
due to cost of
access.
Insecurity +
Net
connectivity
trouble.
78
108
22 22
44
89
9 21
Female
male
42. 42
Q. What is the problem that you faced while making purchase
transaction through online shopping?
0 10 20 30 40 50 60
Pages took too long to load that I gave up.
Site was so confusing that could not find
the product.
Desired product was not available.
System logged off before compulsion.
Tried & failed to contact customer service.
Wrong/Bad product arrived & could not
return.
8
24
18
8
14
17
17
28
26
10
18
23
Male
Female
Problems Male Female Total
Pages took too long to load that I gave up. 8 17 25
Site was so confusing that could not find the
product.
24 28 52
Desired product was not available. 18 26 44
System logged off before compulsion. 8 10 8
Tried & failed to contact customer service. 14 18 32
Wrong/Bad product arrived & could not return. 17 23 40
43. 43
Conclusion: Around 20% of people feel that site is very confusing to
find the right product. The other problems which are rated according to
the people are that 10% feel that they do not get the desired product with
wrong or bad product being the next problem.
44. 44
FINDINGS
After completing all data analysis, we decide to compute X
2
test to
check whether the 2 attributes of our interest are independent or not. We
test our null hypothesis at 5 % level of significance. Here in all chi-
square procedure we considered as there is relation between two
attributes of our interest.
Now if the P value is less than 0.05 the hypothesis will be rejected
and there is a relation between two attributes and they are said to be
dependent.
If P value is greater than 0.05 the hypothesis will be accepted and
they are said to be independent.
45. 45
Q. Products and occupation.
Occupation/prod
uct
clothe
s
electroni
c
jewele
r
accessori
es
othe
r
Tota
l
Student 77 96 21 45 39 278
House wife 9 10 7 8 0 34
Government
employer
7 12 0 8 0 27
Business 14 32 3 9 8 66
Other 9 25 3 4 3 44
Total 116 175 34 74 50 449
Ho: Products and occupation in online shopping are independent.
P value: 0.071298
So, P > 0.05
Therefore Ho is accepted.
Conclusion:
We may conclude that product and occupation in online shopping may
be regarded independent.
46. 46
RECOMMENDATON
- They should provide complete information about their
products and should make site simple so that common
people can understand how to make purchase
- As in online one purchase goods through credit cards but
one can use the approach of cash payment during delivery
- One can use more animation through which they can
attract more customers
- One can use the approach of credit points i.e. if one
purchase for the first time they get credit points due to
which if they purchase for the second time they can get
discount of that much points. Due to which one increase
the repurchase.
47. 47
LIMITATION
In this project we have faced various difficulties, starting from
setting the objective, collecting the survey sample, problem
recognition, consulting target market and conducting the survey to
complete the project.
- One of the major problems faced by us was time. Some
people were not readily available for the survey
- Some responder were not able to share about their
information regarding their credit card and personal
information as it can be leaked
- Some people lack interest in giving feedback to our
questionnaire
- Middle- age group and old age people prefer traditional
method of buying
- There is a fear among consumers that while buying online
there can be risk of getting their ordered products or might
they can lose their money.
48. 48
CONCLUSION
After having detail study on Online Shopping one can see a great
change in the behavior of people in many manners like their attitude,
buying pattern. In earlier times people use to do manual shopping but
now as time changed people are becoming busy and due to which
technology has brought a new revolution i.e. Online Shopping.
As we started doing survey it came to in notice that young age
group people i.e. 15-30 uses or prefer online shopping because it is time
and energy saving. But middle-age group does not prefer much because
they have wrong perception that by seeing the product one can get the
goods of proper quality. And even some people does not prefer using
plastic money i.e. credit cards.
But online shopping has a great future but to be successful it is
necessary to spread awareness about its benefit.
