Institute of Professional

Education & Research

Title of the Project

RETAILERS.

Submitted to:

Submitted by:

Prof.(Dr.) HERSH SHARMA

ANKIT BHARDWAJ

Prof. (Dr.) VAIBHAV LOWLEKAR

ALI ASGAR
B.SARVANA AYYAR

INTRODUCTION:
E-commerce - Overview
E-Commerce which is commonly defined as Buying and Selling of Products and Services on
the internet and financial transactions between organizations and customers or on any other
application that relies on the internet.
E-commerce is the exchange of information across electronic networks, at any stage in the
supply chain, whether within an organization, between businesses, between businesses and
consumers, between the public and private sector, whether paid or unpaid
Electronic commerce draws on such technologies as electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web at least at one point in the
transaction's life-cycle, although it may encompass a wider range of technologies such as email, mobile devices and telephones as well. It is generally considered to be sales aspect of ebusiness. E-Commerce provides multiple benefits to the customers in terms of lower cost, more
variety and also saves time. The buying can be done with a click of mouse without going
anywhere. Various services including online banking, ticket booking, and payment of bills have
provided great amount of benefits to the consumers. It has emerged has a boundary less trade
medium. The E-commerce works on four functions;
a) Communication: Related to providing information/ documents for business transactions.
b) Process Management: automation and improvements in business processes
c) Service Management: use of technology for improving service quality.
d) Transaction Capabilities: ability to buy/sell on internet or other online options.

Consumer Behaviour
Consumer behaviour is the study that focuses on how, what, when and why people buy.
It is a study that blends elements from psychology, sociology, anthropology, marketing and
economics. It attempts to understand the consumers decision making process, both
individually and in groups based on social and economic division. It studies characteristics of
individual consumers such as demographics, psychographics, and behavioural variables in an
attempt to understand people's wants. Topics under this study include, but are not limited to,
affect, mood, and emotion; explicit and implicit attitudes; social identity; self-concept and selfpresentation; attachment, commitment, trust, and loyalty; consumer-marketer relationships;
motivation, goals, and regulatory focus; conscious and deliberative information processing and
reasoning; unconscious, automatic, and intuitive information processing; consumption and
culture; consumer decision-making; organisational buying; technology and consumption;
consumption value; post-consumption reactions and appraisals; measuring consumption
outcomes; and design and aesthetic issues. It also tries to assess influences on the consumer
from groups such as family, friends, reference groups, and society in general.

Evolution of E-commerce
Over the last two decades, rising internet and mobile phone penetration has changed the way
we communicate and do business. E-commerce is relatively a novel concept. It is, at present,
heavily leaning on the internet and mobile phone revolution to fundamentally alter the way
businesses reach their customers.
While in countries such as the US and China, e-commerce has taken significant strides to
achieve sales of over 150 billion USD in revenue, the industry in India is, still at its infancy.
However over the past few years, the sector has grown by almost 35% CAGR from 3.8 billion
USD in 2009 to an estimated 12.6 billion USD in 2015.
Industry studies by IAMA2 I indicate that online travel dominates the e-commerce industry
with an estimated 70% of the market share. However, e-retail in both its forms; online retail
and market place, has become the fastest-growing segment, increasing its share from 10% in
2009 to an estimated 18% in 2015. Calculations based on industry benchmarks estimate that
the number of parcel check-outs in e-commerce portals exceeded 100 million in 2015.
However, this share represents a miniscule proportion (less than 1%) of Indias total retail
market, but is poised for continued growth in the coming years. If this robust growth continues

over the next few years, the size of the e-retail industry is poised to be 10 to 20 billion USD by
2017-2020. This growth is expected to be led by increased consumer-led purchases in durables
and electronics, apparels and accessories, besides traditional products such as books and audiovisuals.
With millions of Indians shopping online, the e-commerce industry is witnessing a massive
boom and will continue to see exponential growth. The number of online shoppers in India is
expected to reach 100 million by the end of 2016, and the number of Internet users is set to
reach 300 million by the end of 2014. A recent report by Juniper Research revealed that over
two billion users of smartphones or tablets will be making at least one or more e-commerce
transactions through mobile before 2017 comes to an end. Payments made through mobile in
2015 are expected to grow at a rate of 60.8 percent, another report revealed.

The Driving Force Behind E-commerce

Nearly 65 percent of respondents indulge in online shopping simply for the convenience.
However, 62 percent reported displeasure with an online shopping experience. So, there might
have been some apparent deterrents of shopping online, but e-commerce has its own charm.

Chief Characteristics of E-Commerce That Influence Purchase Decision

pricing and availability of products also play a very critical role in making this decision. Also,
images of the product and the richness of the product information and reviews have a noticeable
role to play. Besides, the option for cash-on-delivery, free home delivery and easy return policy
helps in building trust and confidence amongst customers resulting in successive purchases and
positive word-of mouths support.
The most preferred payment method while shopping online is cash-on-delivery. Almost, 80
percent of e-commerce transactions in India is through cash-on-delivery. This is one major
driver that influences the purchase decision. Also, users find it easier to buy international
products online, which are either not available in India or are expensive at retail stores.
Women shoppers play a key role in the rise of ecommerce segment in India. Women in Tier 1
cities spend two times more as compared to men, while shopping online. It is expected that the
number of women online shoppers in India is set to reach the 40 million mark by 2016. Looking
at this trend, 2015 is expected to be a more fruitful year for online players who intend to build
on categories such as apparels, accessories, baby products, home furnishings, and health.
The Research Problems
The research problem is always information oriented and seeks to provide answers to the
managerial problems. We may state the research problems as follows:

What are the major consumer segments of e-commerce?

Which factors influence the buying behavior of the female consumers of e-commerce?

What are the sources of Information for the Consumers?

How does the consumer evaluate the alternatives available?

Which factor is relatively more important in a buying decision?

Which are the most preferred product categories?

How does the consumer perceive the various services provided by e-retailers?

Consumers perception towards the major e-retailers with respect to the various factors
such as product quality, variety, price, delivery, return policy, payment options product
information, online advertisements etc.

Research Objectives
Keeping above research problems in mind the following objectives are incorporated in the
study:
I.

To identify factors determining buying behavior of females in the area of ecommerce.

II.

To rate the relative importance of the factors influencing the buying decision of female
consumers.

III.

To examine the relative importance of identified factors according to market segments

IV.

To understand the process of making buying decision of the female consumer.

V.

Comparison between e-retailers and the brick and mortar retailers based on consumers
perception.

Research Methodology
This empirical research will be based on primary data to be collected from suitably sized
sample of consumers of e-retailing. To collect primary data a structured questionnaire and
interview (both personal and social networking) methods are used. The questionnaire is
prepared by means of pre-discussions and focus group interviews with existing consumers.

Sample required: Recent buyers (last purchase within 6 months)

ANALYSIS

A primary research of 108 female respondents. The responses were taken in a duration of 4
days. The analysis of the study with results is listed below.

Ques.1. Whats your age?

AGE
1%
4%
10%

18-30
31-40
41-50
50 and above
85%

Interpretation:
Out of 4 age group categories the maximum respondents are belong to 18-30 age group which
is about 85% the reasons can be for this is, e-commerce platform is more familiar and the
survey belong to their interest area of this age group, Secondly 10% respondents are belong to
the 31-40 age group than 4% are respondents are belong to the less than 41-50 age category
and only 1% respondents belong to 50 and above age category.

Ques.2. What is your current Occupation?

Occupation

6%

24%

Student
Service
Business
70%

Interpretation:
According to the responses, the maximum people who has responded and took interest in the
survey are, 70% belong to Student, 24% are the Service class, so the majority 90% people
belong to these two categories, and lastly 6% are the business class.

Ques.3. Whats your approximate Family income?

Family Income

10%
9%
1 lakhs to 5 lakhs
5 lakhs to 10 lakhs
54%

10 lakhs to 15 lakhs
15 lakhs and above

27%

Interpretation:
The Approximate Annual Average Family income of the four categories are, about 54%
people belong to the first category that is 1 lakhs to 5 lakhs, than 27% people are belong to slab
of 5 lakhs -10 lakhs and 9% are in the third category 10 lakhs to 15 lakhs and lastly 10% belong
to more than 15 lakhs category.

Ques.4. How often do you shop online?

Count of Age

Column Labels

Row Labels

Once a month
44
4

Once a
week
5
3
1

Once in 3
months
19
2

18-30
31-40
41-50
50 and above
Grand Total

48

21

Once in 6
months
23
2
3
1
29

Grand
Total
91
11
4
1
107

50
45

44

40
35
Once a month

30

Once a week

23

25
19

20

Once in 3 months
Once in 6 months

15
10

0
18-30

31-40

41-50

50 and above

Interpretation:
This above graph clearly shows that the youngsters, falling in the age group of 18-30 are
frequent buyers. Therefore the most potential customers lie in the age group of 18-30 and hence
should be considered as target market. 31-40 is another category which is now taking interest
in online shopping, though the customers are less as compared to 18-30 group still in future
this can be the another major category to look upon.
Once a month is the most preferred interval of shopping online in 18-30 and 30-41 age category
and the second most preferred is the once in 6 months which is preferred by almost all the age
category.

Ques.5. Which items you prefer to buy online?

Count of
response
Row Labels

Column Labels
Baby
products

18-30
31-40
41-50
50 and
above
Grand Total

Grocery

Music

Apparels

Books

Cosmetics

Electronics

footwear

9
2

7
1

67
11
1
1

23
2

39
7
4

80

26

50

11

Grand
Total
152
24
7
2
185

80
67

70
60

Baby products
Grocery

50

Music
39

40

Apparels
Books

30

Cosmetics
23

Electronics

20
10

footwear
9

11
7
3

7
1 2 1

1 1

0
18-30

31-40

41-50

50 and above

Interpretation:
Age wise comparison clearly shows that, age group of 18-30 which contains the maximum
responses majorly shops for the Apparels category which is the most preferred category in
almost all the age groups.
The second most preferred category is the Electronics and the third most preferred is Books
and then Grocery.
Baby products, Cosmetics, Footwear and Music falls under the least favourite.

Ques.6. How much money do you spent in online shopping? (Rupees)

1000 5000

20

60

1
19

3
10
47

4
1

18-30
Business
Service
Student
31-40
Business
Service
Student
41-50
Business
Service
50 and above
Service
Grand Total

22

50

Column Labels
5000 10000 and above
10000

500 - 1000

Grand Total

91

1
2
5

4
13
74

11

1
2

1
9
1

1
1

1
3

68

13

107

47

45
40
35
30
500 - 1000

25

5000 - 10000

15

10

10000 and above

10
5

1000 - 5000

19

20

5
1

2 1

2 1

0
Business

Service
18-30

Student

Business

Service
31-40

Student

Business

Service

41-50

Service
50 and
above

Interpretation:
The average one time spending on online shopping of all the 4 age categories and 3 occupation
class are shown in the above graph.
1000 5000 rupees is the most preferred amount females of all age group and occupation are
willing to spend on their one time purchase.
The second most preferred amount is 500-1000 rupees which has its dominance in 18-30 age
group and in student category females.
5000-10000 is the third preferred spending category and lastly 10000 and above is the least
preferred amount that a female is willing to spend on her one time purchase.

Ques.7. List 3 of your frequently visited shopping websites.

Most Visited Websites

31%
Flipkart

26%

Snapdeal
Myntra
Amazon
Jabong

16%

21%

Interpretation:
This was an open ended question in which we asked the respondents to enter their 3 most
frequently visited shopping websites.
The above graph clearly depicts that Flipkart is the most preferred online retailer with 31% of
the females respondents visiting the site frequently followed by Amazon which is having 26%
share in the frequently visited websites. Apart from these Snapdeal, Myntra and Jabong were
the names which made their way in the frequently visited list.

Ques.8. What are the crucial factors which affect your decision making
in finals elections of the product online?

Count of
response
Row Labels

Column Labels
Customer
service

Website
display

12
2
1

11
2
2

15

15

18-30
31-40
41-50
50 and
above
Grand
Total
80

Convenience+Fast
shipping and Time
saving
57
8
4
1

Price

70

84

73
8
2
1

Products
review and
Description
43
3
4

Trust

Unavailability
in stores

Grand
Total

16
5

22
3
1
1

234
31
14
3

50

21

27

282

73

70
57

60

Customer service
Website display

50

43

Convenience+Fast shipping and Time saving

40

Price
Products review and Description

30
22
20

Trust

16

Unavailability in stores

12 11

8 8

10
2 2

1 2

1 1

0
18-30

31-40

41-50

50 and above

Interpretation:
The above graph shows the age wise preference of crucial factors which affects the decision
making while purchasing online.
The graph clearly depicts that Price is the biggest factor that affects a purchase decision in
almost all the age groups but especially females of age group 18-30 and 31-40 are the ones
whose decision can be majorly influenced by the Price factor of a product.
The second most crucial factor is Convenience, Fast shipping and Time saving as mostly people
get less time to go to a physical store and then buy a product, its easy, convenient and time
saving for them to order via home and get the product within a week at their doorstep.

Ques.9. Do you go to retail stores and visit different websites before

Column Labels

Row Labels

No

Yes

Grand Total

18-30

40

51

91

31-40

11

41-50

50 and above

63

107

Grand Total

44

60
51
50
40
40
No

30

Yes
20
10

0
18-30

31-40

41-50

50 and above

Interpretation:
We can analyse from this result that even with presence of some trusted websites people are
not sticking to one medium, and they assure about their choice of product through retail stores
and other e-commerce websites.

Ques.10. According to you what are the most important criterion when
you buy online?

Important Criterion when you buy online

Reseller
comm.
Presentation 7%

Quality
18%

7%

Variety of Brands
12%
Payment Security
15%
Delivery
13%

Price
14%

Choice
14%

Interpretation:
The above graph clearly depicts that Quality with 18% is the most important criterion when a
female buys online, followed by Payment Security 15% and then Price and Choice with 14%
each.

Ques.11. While shopping what affect your satisfaction?

Delivery Time User Friendly

Adequate Search
option
7%
Product Assortment
5%

Tracking of Items
10%

Confirmation Screen
10%

Cash on Delivery
11%

Net Banking
6%

Free Shipping
13%
Offers & Discounts
12%

Debit/Credit Card
7%

Interpretation:
The above graph clearly depicts that Free Shipping (13%) of a product is the most desired
factor that affects the satisfaction level of most of the female respondents, followed by good
Offers & Discounts (12%) and lastly Cash on Delivery (11%) is also comes under the crucial
factors that can affect the satisfaction level of the customers.

Summary and Conclusion:

Our study has covered the following objectives:

Females buying perception towards E-retailers.

Frequency of shopping of Females.

Category of products most shopped by Females.

Which are the most frequently visited e-commerce sites by Females.

Factors that affects the decision making during the final purchase of a product.

Factors that affects the Satisfaction levels of the buyers.

Spending pattern of Females consumers while they shop online.

How factors like - Quality, Price, Payment Security plays an important and crucial role
while making a purchase decision.

How different age groups have differences in choices and opinions.

Still female consumer go out on a physical store just to assure the quality of the product
while purchasing from online retailers.