UNIT I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Online shopping is the popular approach for business and customer to perform trade
over the internet. The success of online shopping is based on the consumer satisfaction
during their purchase.

Shoppers can visit web stores from the comfort of their homes and shop as they sit in
front of the computer or usage of mobile. In modern days the people have laziness and
uninterested to go to the Retail shop and buy the product. So, they mostly prefer the online
shopping.

In other side the online shopping is one of the identification of their education
prestige. The online shopping is started at 1979 by Michanel Aldrich. But from 1984 the
every shopper buy online at a Tec store. In recent title each and every family one out of ten
people use the online shop. So, I ‘Customer satisfaction towards online shopping in
Salem city’.

At the present times, illiterate people also access the online shopping with the help of
their son or daughter. It denotes the interest of buying at online. But most of the time they
afraid for insecurity issues. So, they keep away from the online shopping.

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1.2 STATEMENT OF THE PROBLEM

 Online shopping has gained a lot of importance in present marketing

conditions. But there is more number of scamps, fraudulent practices and
cheating also increased. For this reason the people got fear in their minds. An
adverse impact in the attitude of consumer towards online purchase.
 The problem area of this survey is consumer’s satisfaction towards online
shopping will determine the factors that influence customers to shop online
and it helps the marketers to formulate their strategies towards online
shopping. So, I select this title to do the research.

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1.3 OBJECTIVES OF THE STUDY

1. To know the customer satisfaction of online shopping in Salem.

2. To analysis the factors which influence the respondent to choose the online
shopping.
3. To know the satisfaction level of respondent regarding online shopping.
4. To measure the level of awareness among the customer towards online shopping.
5. To offer some suggestion to improve the online shopping for various consumer
opinion.

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1.4 NEED OF THE STUDY

 The online marketer should make prepare website design.

 To contribute the development of online (networks) world.
 The online shopping is needful for getting the quality of information about the
product with the other people opinion.
 The online shopping has more varieties of mode of payment.
 To needful for get good experience.
 The online shopping is useful for increase the standard of living of the customer.
 Online shopping is an important for develop the customer’s online knowledge and
awareness.

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1.5 SCOPE OF THE STUDY

The study covered to Salem district because the most of the people avails in the
facility of online shopping.

The scope of the study is to create the awareness among the customers, about various
online shopping websites. The customer can gain knowledge about the boon or bon of online
shopping.

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1.6 RESEARCH METHODOLOGY
Research Methodology is a new way to systematically solve the research problem. It
is a science of studying how research is done scientifically.
Research Methodology is a way to study the various steps that are generally adopted
by a researcher in studying his research problems systematically along with logic,
assumptions and rationale behind them.
RESEARCH DESIGN:
A detailed outline of how an investigation will takes place. A research design will
typically include how data is to be collected, what instrument will be employed, how the
instrument will be used and the intended means for analysing data collected.
DESCRIPTIVE RESEARCH DESIGN:
"A research design is the arrangements of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure ". It constitutes the blueprint for the collection, measurement and analysis of data.
As such design includes an outline of what the researcher will do form writing the hypothesis
and its operational implications to the final analysis of the data. The Research Design
undertaken for the study is Descriptive one. A Study, which wants portray the characteristics
of a group or individuals or situation, is known as Descriptive study. It is mostly Qualitative
in nature. Descriptive research is a study designed to depict the participants in an accurate
way. More simply put, Descriptive research is all about describing people who take part in
the study. There are three ways a researcher can go about doing a descriptive research
project, and they are:
Observational, defined as a method of viewing and recording the participants
Case study, defined as an in-depth study of an individual or group of individuals
Survey, defined as a brief interview or discussion with an individual about a specific topic.

SAMPLING TECHNIQUE:
The research is a systematic study to examine or investigate the issue or problem and
find out the relevant information for solution. For study data are to be collected from the
respondents. It is not possible to collect data from every one of the population. Population is a
very large number of persons or objects or items which is not feasible to manage. A
population is a group of individuals, persons, objects, or items from which samples are taken
for measurement. For research purpose a part of the population is to be selected. Sampling is
the process in which a representative part of a population for the purpose of determining

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parameters or characteristics of the whole population is selected. This is called a sample. It is
easier to contact a smaller part of the population for data collection. It can be done within a
limited time, efforts and with minimum cost.
Sampling techniques can be divided into two categories
1) Probability sampling 2) Non Probability sampling
PROBABLITY SAMPLING:
In Probability sampling, each population member has a known, non-zero chance of
participating in the study. Randomization or chance is the core of probability sampling
technique.
NON PROBABLITY SAMPLING:
In Non Probability sampling, the sample group members are selected non-randomly;
therefore, in non-probability sampling only certain members of the population has a chance to
participate in the study.
SAMPLING SIZE AND TECHNIQUES:
The convenience sampling technique is adopted for this study. The Samples were
collected respondents on the basis of age, income, educational qualification, etc. Hence
sample size is taken as 125 for this study after the rejection of 5 samples for the reason of
insufficient of data.
TOOLS FOR ANALYSES AND INTERPRETATION:
 Simple Percentage Analyses
 Chi- square test.
SIMPLE PERCENTAGE METHOD:
In this project Percentage method test was used. The Percentage method is used to
know the accurate percentage of the data we took, it is easy to graph out through the
percentages. The following are the formulae.
Percentage respondents= No. of Respondents/Total Respondents*100
From the above formulae, we can get percentage of the data given by the respondents.
Chi- Square Test:
Chi-square = ∑ (E – O)
E
E= Estimated value
O = Observed value

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1.7 LIMITATIONS OF THE STUDY
 Number of respondent for the project is limited to 125.
 Time duration of the project is only certain months.
 Area of the study is confirmed to Salem city.

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1.8 CHAPTER SCHEMA

 Chapter I : Introduction, Statement of the problem, Objectives, Scope of the study,

Need of the study, Research methodology, Limitations, Chapter schema
 Chapter II : Review of literature
 Chapter III : Company profile
 Chapter IV : Data Analysis and Interpretation of the data
 Chapter V : Finding ,Suggestion and Conclusion

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 UNIT II

REVIEW OF LITERATURE

A literature review can be a precursor to the introduction of a research paper, or it can

be an entire paper in itself, acting as the first stage of large research projects and allowing the
supervisor to ascertain that the student is on the correct path.
A literature review is a critical and in depth evaluation of previous research. It is a
summary and synopsis of a particular area of research, allowing anybody reading the paper to
establish why you are pursuing this particular research. A good literature review expands on
the reasons behind selecting a particular research question.

Szymanski, D., Hise, R.(n.d.)(2018)

Studied e-Satisfaction: An Initial Examination from Texas A&M University. The

objective of the study was to find the determinants of e-satisfaction. They have
examined the role of online convenience, merchandising, site design and transaction
security in consumer e-satisfaction. For the study they have identified 2108 online
shoppers and e-mailed the survey and received 1007 responses. They found that out of
all four factors the most important factor were in consumer e-satisfaction assessments
are site design and convenience followed by online security play an important role in
e-satisfaction. Good site design includes having fast, uncluttered, and easy-to-navigate
sites. Convenience includes saving time and making browsing easy.

Vikash and Vinod Kumar (2017)

A study was conducted by him to assess the consumer perception with regard
to Online Purchase. Factor analysis has been conducted to know the consumer
perception and it is found that the important factor is quality of the product as it is not
tangible followed by convenience, satisfaction and product availability. The
consumers have a positive perception and create a good framework over online
shopping.

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Senthilkumar (2017)
Consumer satisfaction towards online shopping was conducted by him conducting
a research among the respondents of Karur district. The results have indicated that
product knowledge, secured transaction, personalized attention, reliability and service
support are the key factors that influenced the consumer satisfaction. The study has
also found that gender, family members and educational qualification have positive
influence, further respondents belonging to cluster one are termed as moderators,
cluster two are called shopping specialists and cluster three members are no voice
(i.e., new entrants) based on their scores on attitude, satisfaction and decision. The
study concludes that if ensured security and safety is present online shopping will
succeed in this competitive environment.

Balamurugan et al., (2017)

A study conducted by him assessed the impact of individual factors that create
consumers in making a choice of online purchase. The five factors namely individual
factors, functional value, conditional value, emotional value and epistemic value
influence the consumers purchase choice. The consumers need identification and web
store involvement is essential to influence consumer to shop online.

Sanjeev Prashar et al., (2017)

Conducted a study to find the effects of online shopping values and cues on
the purchasing behaviour of the consumers using the Stimulus Output Response (S-O-
R) model concept. The shopping values have been considered as the internal
motivation and the web atmospheric cues are taken as the external motivation, the
organism is the web satisfaction and the response is the purchase intention. The
analysis reveals that the hedonic shopping value and the web entertainment are the
strong factors influencing website satisfaction and the website informativeness and
the utilitarian shopping value have weaker influence over the website satisfaction. The
web satisfaction acts as an intervening role between online shopping values and
website atmospheric cues and chase intentions.

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Savita Maan et.al, (2017)

Examined the youth motives towards online purchases. The findings have indicated
that the Indian youth prefer only shopping primarily for convenient and time saving
purpose followed by trendy and fashionable purchases. The other motives for online
shopping are variety of products available, lower process and offers provided and in
depth information regarding the product. The study concludes with suggestions to
online marketers to provide trendier and fashion oriented products and with more
varieties.

Debarun Chakraborty (2016)

Studied the factors affecting the purchase decision in online shopping at Gangtok,
Sikkim. The four factors reasonable price of the product at the doorstep, products are
available 24/7, ease in cancellation or return and time saving have been the high
influencing factors. The customers also feel risk in terms of security and privacy,
physical examination of the product in case of certain products purchased by them.

Shruti Jain and Prashant Verma (2016)

The intention of Indian youth for making online purchases was assessed by
them. The results have viewed that the trust The acceptance of consumers to online
shopping based on the different product types was studied by Mbayong. The factors
personal innovativeness and the web security had stronger influence, internet self –
efficacy and privacy have no significant relationship over the online shopping
behaviour. The purchasing behaviour varies in purchase of electronic goods and
apparels. Personal innovativeness is proved to be insignificant for apparel goods
whereas stands significant for electronic goods. Hence, online shopping varies with
different product types.

Ather Akhlaq and Ejaz Ahmed (2016)

Assessed the gender in online shopping factors of consumers in Pakistan.
Differences have been found in the perceived enjoyment and legal framework.
Women enjoy online shopping and they preferred to shop in a safe environment with
a legal framework in case of any problems in online shopping. Women involve in
online shopping for entertainment and make a purchase in a secured virtual

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environment shopping. The other constructs namely efficiency, privacy,
responsiveness is perceived low in various e-service qualities.

Sivasundaram et al., (2016)

A factor analysis approach was made by him, to find the factors contributing
and curtailing online shopping behaviour. Two classifications of the variables are
made as the variables that contribute and the variables that curtail online shopping
behaviour. The door delivery of the product is ranked as the top and the multitasking
abilities are ranked as the lowest contributing factor. Similarly, in the curtailing
variables lack of real shopping experience was ranked at the top and the unboxed
product is given the lowest rank. There is a uniqueness of online shopping behaviour
of buyers in the urban and the rural areas.
PWC (2015)

In the report “Future of India -The Winning Leap”, emergence of new

technologies, especially mobile, in India has sparked a social change that’s difficult to
quantify. While mobile, internet, and social media penetration and growth can be
quantified, describing the changes in social values and lifestyles that have
accompanied those trends is far more challenging. New technologies such as virtual
walls and virtual mirrors will further help improve the retail customer experience,
thereby encouraging greater consumption. Virtual mirrors let shoppers ‘try on’ clothes
and accessories virtually before making buying decisions. In their view, there is
humongous potential for online shopping companies owing to the growing internet
user base and advancements in technology. However, this will not be without its share
of challenges, be it operational, regulatory, or digital. How a company prepares itself
to meet these challenges will decide whether or not it succeeds.

Hussain A. Al-Salamin and Abdulrahman A. Al-Hammad (2015)

Inquired “Attitude of Saudi Consumers towards Online Shopping with

Special Reference to Al-Hassam Region (KSA)” with a sample size of 386. There is
a significant relationship between online shopping and demographic factors, risk
factors and type of products and services, but the top preference of online shopping
are given to booking hotels, airline tickets and purchasing electronic devices. It was
also founded that Saudi Arabia was a late adopter of online shopping compared to

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industrial countries. Only 38% of the participants purchase online and it is saddening
to note the several reasons which prevent consumers to purchase online like-they lack
experience and they don’t hold a credit card and that the products and services are
available in the local market and the distrust, credibility and security risks also fall in
the line.
Hemani Malhotra and Manjit Kaur Chauhan (2015)

Investigated on “Consumers’ Behaviour towards Online Purchases” with a

sample size of 100. The Shopping trend of online buyers and the problems and issues
most concerned on it was studied. The marketers will get to understand the attitude of
the consumers and the factors influencing to make online purchases. Online buying
experiences, product perception, safety of payment have significant effects on attitude
towards online shopping. E-Commerce is becoming a fascinating trend in this modern
information technology even without physical presence. The internet is no longer a
niche technology - It is an indispensable part of mass media and modern life.

Asmatara&Chadrnahauns (2015)

In the research paper: Factors affecting online shopper’s behaviour for

electronic goods purchasing in Mumbai: An empirical study analyse factors affecting
on online shopping behaviour of consumers that might be one of the most important
issues of e-commerce and marketing field. Retail companies should start taking
measures to eliminate risk factor and build trust in this form of retail. Perceived lack
of secured transaction (financial risk), retailers should introduce a mechanism that
would improve safety and privacy to motivate people to buy online.

Chaitra Sharma (2015)

Studied Consumer Buying Behaviour towards Online Shopping’ analysed the

characteristics of buying behaviour of online shoppers. Consumer buying behaviour
in respect of online shopping was studied using different socio-economic variables.
There were two factors mainly influencing the consumers for decision making: Risk
aversion and innovativeness. Highly risk adverse consumers need to be very certain
about what they are buying. Whereas less risk adverse consumers can tolerate some
risk and 106 uncertainty in their purchases. The second variable, innovativeness, is a

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global measure which captures the degree to which consumers are willing to take
chances and experiment with new ways of doing things.

Iyer seethalakshibalakrishnan (2015)

Investigated on the topic “A Study on Consumers’ Perception towards

Personalization in Online Purchases” which covered a sample size of 250 to
analyse the consumers’ perception towards personalization in online purchases and to
identify few trend setters and different attractive features. Researcher concluded that
personalization of online purchase helps to retain old customers and absorb new
consumers. Among competitive space, the e-retailers are more successful when they
acquire more loyal customers using personalized E-coupons and E-news. The
simplified payment and delivery procedure, the 1- click option also influenced the
consumers.

Preeti Devi and Sunil Kumari (2015)

Examined the topic “A Study on Consumers’ Perception Regarding Online

Shopping” with a sample size of 100 and concluded that Online Shopping gets
boosted up due to increasing use of Internet by the younger generations in India. The
four major dimensions that potentially affect Consumers’ perception are identified as
privacy, security, time saving and convenience as independent variable and the factor
of perception regarding Online Shopping is identified as dependent variable and the
results indicate that they influence positively their intention to buy through online
modes.
Com Score (2015)

Conducted a global study on “UPS Pulse of the Online Shopper – A

Customer Experience Study” with a sample size of 19,485 and they concluded that
the shoppers prefer convenience and take it for granted in their own terms – The
choice too continues to be paramount. They want to be in control of everything – from
retailer selection and product reviews to delivery options and returns. They have
varying levels of device adoption and technological sophistications. Mobile has
become an inseparable part-from researching products in advance of store visits and

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previewing retail email, to hunting down the best prices and checking on delivery
status. The future of the store will most certainly involve mobile as well.

N.Saravana Bhavan (2015)

In the thesis entitled “A Study on Consumers Attitude towards Online

Shopping With Reference To Coimbatore City” analysed entire online process of
developing, marketing, selling, delivering, servicing and paying for products and
services. Coimbatore city population is highly tech savvy and the city was dotted with
the firms of 83 many successful entrepreneurs. Hinterland has many industries,
estates, corporate hospitals and good number of engineering colleges. In future, online
shopping bound to grow in a big way, given the growing youth population.

Sumit Chaturvedi and Sachin Gupta (2014)

Checked out the “Effect of Social Media on Online Shopping Behaviour of

Apparels in Jaipur City – an Analytical Review” concluded with a sample size of
250 respondents. Online marketing through social media is gaining popularity among
people specially the younger generation, but in today’s scenario to become equally
popular among all age groups social media marketing will have to cover a longer
distance. People have hesitations in using online purchasing due to security concerns,
lack of physical approach towards product offered, delays in product delivery along
with price & quality concerns. More-over people are more resistant to change & not
easily adaptable to newer technology. To make products globally recognized every
small or big, National or International company needs to focus and start selling their
products online. Branding, Product Positioning, Awareness of new features in the
products etc. all were supported by the help of online websites. In a nut shell we can
conclude that online purchasing of apparels has a potential to grow, only proper
boosting can be effectively done by social media, because this is the only medium of
sales promotions which can be in low cost and maximum reach.

Alka Kumawat and Tandon J K (2014)

Conducted a study on “Factors Influencing Customer’s Satisfaction Level
towards Online Shopping in Jaipur and Gurgaon” with a sample size of 200
respondents. The findings suggested that availability, on time delivery of the product

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and expectation of the customer are important determinants that insist the customers
to shop again. Moreover, they have a significantly positive impact on users’
satisfaction toward online shopping. On the other hand ability to track the order until
delivered has a significantly small negative effect on the dependent variable shop-
again. Likewise availability of the product in online stores, tracking of the product and
expectation of the customers are important determinants to overall rating. The
findings of the study imply that a wider selection and availability of the product
available online is a dominant factor in that it motivates customers to shop online.
Investigating how different variables impacts overall customer satisfaction and
intentions to shop again is of interest to practitioners who must understand how to
better allocate their market budgets to service activities. Although there is a plethora
of research on customer satisfaction from services in general, the growing popularity
of e-commerce created the need for studies specifically aimed at exploring important
dimensions that affect customer satisfaction and loyalty in e-tailing.
.
CRISIL (2014)

Conducted the opinion study “e-tail eats into retail” recommended, physical
retailers in India will have to establish their presence online quickly. And, with the
right strategies, they can even compete effectively. For instance, to tackle the queue
problem at its stores, Wal-Mart allows customers to shop online and opt for either
home delivery or store pick-up. Today, Wal-Mart is among the top 5 online retailers
in the US with estimated revenues of USD 10 billion in 2013 from the online segment
alone. There are other examples as well, such as Best Buy which have developed a
significant online presence over the past decade and are now among the top online
retailers in the US.

Haiping Wang &Guona Gu (2014)

In the study Understanding Online Consumer Stickiness in E-commerce

Environment: A Relationship Formation Model revealed that sticking to a special
website not only means that consumers like shopping on the website but also means a
kind of psychological reliability appears on consumers and evendors. It will

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 encourage e-vendors to provide better products or service for consumers and promote
the quick development of online transactions.

Sanjeev Kumar & Savita Maan (2014)

In the study Status and Scope of Online Shopping: An Interactive Analysis,

indicated that online shopping is a fun and convenient way to locate hard-to-find
items, to make purchases and discover bargains, but also with some level of risk.
Online shopping can be easy and enjoyable with some precautions. India’s online
market is at an early stage but is expected to see huge growth over the next four to
five years. Retailers have a sizeable opportunity as the online population starts to
spend more and buy more frequently online.

Arika Riaz & Saravanan Raman (2014)

In the study ‘The Emerging Trend of Online Shopping’’: A Literature

Review, explored, the internet has given rise to great potential for businesses through
connecting globally. Shopping online has become the number one area with growing
internet use. However, there is surely room for further research into the environment
and experience of online shopping. Currently there is inadequate research based on
ways to be successful in the business of online retailing. Therefore, in the future there
is potential for further studies looking into methodology for online retail businesses.
Researchers should also look into how this continuous growth of internet will affect
consumers in the future generations and whether offline shopping will still remain
relevant in the next few decades.

Emily Yapp Hon Tshin (2014)

In the research ‘The Key Dimensions of Online Service Quality: A Study of

Consumer Perceptions’ found that to satisfy and retain current customers, it is
critical for online retailers, i.e., the airline companies in the present context, to provide
their customers with very high quality of the six dimensions (promptness/reliability,
personalization, website content, flexibility, trustworthiness, and ease of navigation)
of the overall service quality as perceived by them. However, to enable the online
retailers to stay more competitive in the market and to increase their market share, it is
highly recommended that they pay more attention on personalization and
trustworthiness. With personalization and trustworthiness, loyalty will be built

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between the online retailer and buyers, which, in turn, will lead to the establishment
of positive word-of mouth in the online setting.

Rajesh Panda &Biranchi Narayan Swar (2014)

In the study “Online Shopping: An Exploratory Study to Identify the

Determinants of Shopper Buying Behaviour” revealed that Online retailing is very
different from the store formats of retailing. The research made an attempt to find out
the triggers that influence shopper buying behaviour in online retail formats. The
review of literature gave insights into the online buying behaviour and the use of
TAM and TPB in understanding shopper buying behaviour. The primary research
conducted on 20 measured attributes borrowed from existing literature and
subsequently modified as per the exploratory survey was analysed using SPSS for
understanding the underlying constructs influencing online shopper behaviour. The
Exploratory factor analysis concluded in four factors namely Anxiety, Ease of Use,
Usefulness and Price as the determinants of shopper buying behaviour online. The
factor ‘Anxiety’ comes out as the single most important factor in online shopping
though the shoppers are young, technology savvy and prefer buying online

Prashant Singh (2014)

In a study Consumer’s buying behaviour towards online shopping A case

study of flipkart.com user’s in Lucknow city examined that future of e-tailors in India
looking very bright. E-tailors give us the best way to save money and time through
purchasing online within the range of budget. Flipkart.com offering some of the best
prices and completely hassle-free shopping experience. The whole concept of online
shopping has altered in terms of consumer’s purchasing or buying behaviour and the
success of E-tailors in India is depending upon its popularity, its branding image, and
its unique policies.

Dr. Renuka Sharma (2014)

In the study entitled “Understanding Online Shopping Behaviour of Indian

Shoppers” revealed that the ease and convenience provided by these stores for 24x7
has made very easy shopping for consumers worldwide. Indian customers are also
getting addicted to the online shopping and they do like various features of online

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shopping as by rest of the world. But the statistics available has shown that Indian
market is still not a fully developed market for e-tail stores. The majority of internet
users are youngsters, the majority of goods and services demanded are related to only
this segment. Travel planning is one of the biggest services used by Indian online
shoppers.

Ngo Tan Vu Khanh&GwangyongGim (2014)

In the research entitled “Factors Affecting the Online Shopping Behaviour:

An Empirical Investigation in Vietnam” suggest that Perceived of economic
benefits (PEB), Perceived of merchandise (PM), and Perceived payment benefits
(PPB) have significant direct effects on consumers behaviour adoption of online
shopping. That means, to promote online shopping in Vietnam is to increase the
ability to recognize the benefits of trading products on the Internet, addition to that the
usefulness of online payment. Note minimize risks when buying and selling
transactions on internet .The results of this study also showed that the development of
e-commerce in Vietnam is very difficult, the fear of risk taking when dealing on the
internet on the second aspect is the product / service and the transaction.

Chaing and Dholakia (2014)

Carried out a study in which they examined the purpose the customer to
purchase goods online during their shopping. Mainly there are three variable in their
study those affects the consumer to purchase online or to go offline. Those are the
accessibility features of the shopping sites, the type of the products and their
characteristic, and the actual price of the product. The study revealed that the
accessibility and the convenience of the shopping sites create the intention in the
customer to purchase or not. When there are difficulty faced by a consumer to
purchase online then the customer switch to the offline shopping for the purchase
behaviour and the consumer face difficulty in offline purchasing then they go to the
online purchasing. After relating both the medium of shopping the consumer said that
the online shopping is more convenient for them and gives more satisfaction which
inspires the consumer to purchase online in the internet.

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Iyer and Eastmen (2014)

Found that the population of senior who are more literate, more
knowledgeable and who are more aware of the technology and those who have a
positive behaviour towards online shopping and internet are more into online
shopping. But the population of senior who are less aware of the internet and the
shopping sites are less involved in the shopping sites because they do not have a
positive attitude towards online shopping rather they are much more interested in
offline shopping and the seniors who are more involved in the internet uses more
online sites for purchasing the goods over the internet. The senior which have more
knowledge about the internet and the shopping sites they compares both the shopping
i.e. online and offline shopping for their purchasing of goods. However their
knowledge and the use of internet by them has no connection with their age and their
satisfaction level while purchasing online.

Selvakumar (2014)

Concentrated on consumer’s perception of the product sold online and the

issues considered important to online shopping. This study was conducted among the
online shoppers at Coimbatore which is in Tamil Nadu state. It is to analyse the
impact of consumer opinion and the attitude. Questionnaire was made to collect the
data from the population; these questionnaires were given to college going students.
The total sample size is 150 respondents. The finding of this study shows that
improvement and accessibility influence the customer’s intention to shop online.

Garima Malik & Abhinav Guptha (2013)

In the study entitled “An Empirical Study on Behavioral Intent of

Consumers in Online Shopping” found that the relations between intention to shop
on line as dependent variable and its antecedents i.e. perceived beliefs toward on line
shopping, perceived behavior control, perceived consequences, social norms,
demographics and personal efficacies as independent factors, and the relations
between 103 behavior and its antecedents were assessed applying Correlation and
ANOVA. The data analysis and statistical tests in the analysis section showcases the
fact that intention and purchase behavior in the online environment for products and
services are driven by a set of factors that are not always the same. For products, even

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 though security concerns, concerns about trusting vendors, quality of products and an
appealing web interface may impact the intention of a person to shop online, it does
not necessarily mean it gets converted to an actual purchase.

Nidhi Vishnoi Sharma & Varsha Khattri (2013)

In the Study of online shopping behavior and its impact on online deal
websites found that the prominent factors affecting this buying decision are impulse,
information of availability and option to provide a review. This brings us to the
conclusion that since most of the e-shopping of the deals is taking place on impulse,
marketers should put their focus on increasing awareness about the availability of
goods and services and building a feedback mechanism. There should also be some
technique by which consumers can be comforted of security concerns. Trust on this
tight security mechanism leads to repeat purchase, as is established here. Higher the
level of trust on the website more the number of times coupons have been bought by
consumers.

Dr.GagandeepNagra&Dr.R Gopal (2013)

In the study entitled “An Study of Factors affecting on online shopping

behaviour of consumers” found that consumers’ response across different
demographics factors shows that gender does impact Possession of internet and
Frequency of online purchase of consumer’s occupation is a demographic variable
which does not impact any of the variable under study. The overall results prove that
the 102 respondents have perceived online shopping in a positive manner. This clearly
justifies the project growth of online shopping. The frequency of online shopping is
relatively less in the country. Online shopping organizations can apply the relevant
variables and factors, identified from the research, to create their strategies and
tactics. The organizations can prioritize the consumer inherent and unequivocal
requirements in online shopping environment. The results can also be used by various
organizations to identify their target customer segments.

Namita Bhandari &Preeti Kaushal (2013)

In the study on Online consumer behavior: an exploratory study find outs that
e-commerce websites as it helps in framing strategies to make online shopping a more
user friendly experience. The issues like security of financial information while

22
transacting on websites and confidentiality of their personal information still bring
anxiety to the minds of Indian consumers, hence online vendors need to bring that
assurance to their minds by having robust back-end technology as well as right image
through their websites’ features. Further, the factor of convenience also tops the mind
of an online buyer, so effort should be made to delight the consumer by giving
extremely good buying experience by ensuring quick delivery and hassle free online
transactions.

Chu & Yuan (2013)

In the paper The Effects of Perceived Interactivity on E-Trust and E-

Consumer Behaviours investigated the impact of perceived interactivity on customer
trust and transaction intentions in e-commerce. The findings suggest that perceived
interactivity has positive effects on the user that ultimately result in e-loyalty
behavior. Further, the fuzzy linguistic scale enables researchers not only to deal with
different recognition styles, but also to notice differences in individuals by providing
different linguistic variable combinations for researching purpose. Finally, the
outcomes will be of interest to web designers and online marketers for how to
enhance interactive online web applications.

Abu Bashar & Mohammad Wasiq (2013)

In the study E-satisfaction and E-loyalty of Consumers Shopping Online

found out that there is a very strong association between emotional states and
consumer e-satisfaction. A directional relationship has also been found between risks
in online shopping and consumer e-satisfaction. E-loyalty is being affected
significantly from emotional states and perceived risks in shopping online. So, it may
be said that both emotional states and online risks does matter substantially in online
shopping.

Pawan Kumar (2013)

Studied Electronic shopping: a paradigm shift in buying behavior among

Indian consumers found that the consumers have perceived online shopping in a
positive manner. This clearly justifies the project growth of online shopping in the
country. However, the frequency of online shopping is relatively less in the country.
Online shopping organizations can use the relevant variables and factors, identified

23
from the study, to formulate their strategies and plans in the country. Better
understandings of consumer online shopping behavior will help companies in getting
more online consumers and increasing their e-business revenues. At the same time, as
realized the benefits from E-commerce, consumers are more willing to make
purchases online. With the popularity of Internet, the number of Internet users will
continue to grow and more Internet users will become online consumers, even regular
online buyers.

Sunita Guru (2013)

In the thesis: A study of trust and perceived risk in Online Shopping found that
online shopping is predominately male, young, single and educated. Internet usage
pattern in terms of average time spent, place of accessing internet, main tasks
accomplished and types of sites visited using internet between both buyers, and non-
buyers were almost same. The majority of the online buyers ask for product
return/money refund in case of dissatisfaction with the product. It is found that around
42% of the respondents were not sure whether they want to buy or not in the next 2/3
months. The three most important factors contributing to trust on online merchants
were keep promises and commitments, will care for my welfare and when in problem
will help me. Only significance difference between benevolence and qualification was
found. No significance difference between income and ability, benevolence and
integrity was found.

Bashir (2013)

In the study Consumer Behavior towards online shopping of electronics

revealed that online shopping is getting popular among the young generation as they
feel more comfortable, time saving and convenient. It was analyzed from the survey
that when a consumer makes a mind to purchase online electronic goods was affected
by multiple 82 factors. The main crucial identified factors were time saving, the best
price and convenience. The price factor was popular among the people because online
markets prices were lower as compared to the physical markets. People compare
prices in online stores, review feedbacks and rating about product before making the
final selection of product and decision.

Nidhi Vishnoi Sharma & Varsha Khattri (2013)

24
 In the Study of online shopping behavior and its impact on online deal
websites found that the prominent factors affecting this buying decision are impulse,
information of availability and option to provide a review. This brings us to the
conclusion that since most of the e-shopping of the deals is taking place on impulse,
marketers should put their focus on increasing awareness about the availability of
goods and services and building a feedback mechanism. There should also be some
technique by which consumers can be comforted of security concerns. Trust on this
tight security mechanism leads to repeat purchase, as is established here. Higher the
level of trust on the website more the number of times coupons have been bought by
consumers.

Dr.GagandeepNagra&Dr.R Gopal (2013)

In the study entitled “An Study of Factors affecting on online shopping

behavior of consumers” found that consumers’ response across different
demographics factors shows that gender does impact Possession of internet and
Frequency of online purchase of consumer’s occupation is a demographic variable
which does not impact any of the variable under study. The overall results prove that
the 102 respondents have perceived online shopping in a positive manner. This clearly
justifies the project growth of online shopping. The frequency of online shopping is
relatively less in the country. Online shopping organizations can apply the relevant
variables and factors, identified from the research, to create their strategies and
tactics. The organizations can prioritize the consumer inherent and unequivocal
requirements in online shopping environment. The results can also be used by various
organizations to identify their target customer segments.

25
REFERENCE :

 Szymanski, D., Hise, R.(n.d.)(2018) Studied e-Satisfaction: An Initial

Examination from Texas A&M University. The objective of the study was to find
the determinants of e-satisfaction.

 Vikash and Vinod Kumar (2017) A study was conducted by him to assess the
consumer perception with regard to Online Purchase.

 Senthilkumar (2017) Consumer satisfaction towards online shopping was

conducted by him conducting a research among the respondents of Karur district.

 Balamurugan et al., (2017) A study conducted by him assessed the impact of

individual factors that create consumers in making a choice of online purchase.

 Sanjeev Prashar et al., (2017) Conducted a study to find the effects of online
shopping values and cues on the purchasing behaviour of the consumers using the
Stimulus Output Response (S-O-R) model concept.

 Savita Maan et.al, (2017) Examined the youth motives towards online
purchases. The findings have indicated that the Indian youth prefer only shopping
primarily for convenient and time saving purpose followed by trendy and
fashionable purchases.

 Debarun Chakraborty (2016) Studied the factors affecting the purchase decision
in online shopping at Gangtok, Sikkim.

 Shruti Jain and Prashant Verma (2016) The intention of Indian youth for
making online purchases was assessed by them.

26
 Ather Akhlaq and Ejaz Ahmed (2016) Assessed the gender in online shopping
factors of consumers in Pakistan.

 Sivasundaram et al., (2016) A factor analysis approach was made by him, to find
the factors contributing and curtailing online shopping behaviour.

 PWC (2015) In the report “Future of India -The Winning Leap”, emergence of
new technologies, especially mobile, in India has sparked a social change that’s
difficult to quantify.

 Hussain A. Al-Salamin and Abdulrahman A. Al-Hammad (2015) Inquired

“Attitude of Saudi Consumers towards Online Shopping with Special
Reference to Al-Hassam Region (KSA)” with a sample size of 386.

 Hemani Malhotra and Manjit Kaur Chauhan (2015) Investigated on

“Consumers’ Behaviour towards Online Purchases” with a sample size of 100.

 Asmatara&Chadrnahauns (2015) In the research paper: Factors affecting online

shopper’s behaviour for electronic goods purchasing in Mumbai.

 Chaitra Sharma (2015) Studied Consumer Buying Behaviour towards Online

Shopping’ analysed the characteristics of buying behaviour of online shoppers.

 Iyer seethalakshibalakrishnan (2015) Investigated on the topic “A Study on

Consumers’ Perception towards Personalization in Online Purchases”.

 Preeti Devi and Sunil Kumari (2015) Examined the topic “A Study on
Consumers’ Perception Regarding Online Shopping” with a sample size of
100 and concluded that Online Shopping gets boosted up due to increasing use of
Internet by the younger generations in India.

 Com Score (2015) Conducted a global study on “UPS Pulse of the Online
Shopper – A Customer Experience Study” with a sample size of 19,485 and

27
 they concluded that the shoppers prefer convenience and take it for granted in
their own terms – The choice too continues to be paramount.

 N.Saravana Bhavan (2015) In the thesis entitled “A Study on Consumers

Attitude towards Online Shopping With Reference To Coimbatore City”
analysed entire online process of developing, marketing, selling, delivering,
servicing and paying for products and services.

 Sumit Chaturvedi and Sachin Gupta (2014) Checked out the “Effect of Social
Media on Online Shopping Behaviour of Apparels in Jaipur City – an
Analytical Review” concluded with a sample size of 250 respondents.

 Alka Kumawat and Tandon J K (2014) Conducted a study on “Factors

Influencing Customer’s Satisfaction Level towards Online Shopping in
Jaipur and Gurgaon” with a sample size of 200 respondents.

 CRISIL (2014) Conducted the opinion study “e-tail eats into retail”
recommended, physical retailers in India will have to establish their presence
online quickly. And, with the right strategies, they can even compete effectively.

 Haiping Wang &Guona Gu (2014) In the study Understanding Online

Consumer Stickiness in E-commerce Environment: A Relationship Formation
Model revealed that sticking to a special website not only means that consumers
like shopping on the website.

 Sanjeev Kumar & Savita Maan (2014) In the study Status and Scope of Online
Shopping: An Interactive Analysis, indicated that online shopping is a fun and
convenient way to locate hard-to-find items, to make purchases and discover
bargains.

 Arika Riaz & Saravanan Raman (2014) In the study ‘The Emerging Trend of
Online Shopping’’: A Literature Review, explored, the internet has given rise to
great potential for businesses through connecting globally.

28
 Nidhi Vishnoi Sharma & Varsha Khattri (2013) In the Study of online
shopping behavior and its impact on online deal websites found that the prominent
factors affecting this buying decision are impulse, information of availability and
option to provide a review.

 Arjun Mittal (2013) In the study E-commerce: It’s Impact on consumer Behavior
examines those factors that affect the consumer’s online shopping behaviors

 Dr.GagandeepNagra&Dr.R Gopal (2013) In the study entitled “An Study of

Factors affecting on online shopping behaviour of consumers” found that
consumers’ response across different demographics factors shows that gender
does impact Possession of internet and Frequency of online purchase of
consumer’s occupation is a demographic variable which does not impact any of
the variable under study.

 Namita Bhandari &Preeti Kaushal (2013) In the study on Online consumer

behavior: an exploratory study find outs that e-commerce websites as it helps in
framing strategies to make online shopping a more user friendly experience.

 Pawan Kumar (2013) Studied Electronic shopping: a paradigm shift in buying

behavior among Indian consumers found that the consumers have perceived
online shopping in a positive manner. This clearly justifies the project growth of
online shopping in the country.

 Dr.GagandeepNagra&Dr.R Gopal (2013) In the study entitled “An Study of

Factors affecting on online shopping behavior of consumers” found that
consumers’ response across different demographics factors shows that gender
does impact Possession of internet and Frequency of online purchase of
consumer’s occupation is a demographic variable which does not impact any of
the variable under study.

29
 Unit III

COMPANY PROFILE

3.1 SALEM, TAMIL NADU

Salem is a city and a municipal corporation in Salem district in the India state of Tamil Nadu.
Salem is located about 160 kilometer northeast of Coimbatore, 186 kilometer south east of
Bangalore and about 340 kilometer south west of the state capital, Chennai. Salem is the
fifth largest city in Tamil Nadu in terms of population, after Chennai, Coimbatore, Madurai
and irrespectively, and fourth in term of urbanization. The area of the city is 100 Km2 (39
sq.mi.). It is the fifth municipal corporation and urban agglomeration commissioned in Tamil
Nadu after Chennai (Madras) (1919), Coimbatore (1981), Madurai (1971), Thiruchirrappalli
(1994)and Thirunelvelli (1994). As of 2011, the city had a population of 1,272,743.

3.2 ONLINE SHOPPING

Online shopping is a form of electronic commerce which allows consumers to directly

buy goods or services from a seller over the Internet using a web browser. Consumers find a
product of interest by visiting the website of the retailer directly or by searching among
alternative vendors using a shopping search engine, which displays the same product's
availability and pricing at different e-retailers. As of 2016, customers can shop online using a
range of different computers and devices, including desktop computers, laptops, tablet
computers and smartphones.

3.3.1INTRODUCTION

An online shop evokes the physical analogy of buying products or services at a

regular "bricks-and-mortar" retailer or shopping center; the process is called business-to-
consumer (B2C) online shopping. When an online store is set up to enable businesses to buy
from another business, the process is called business-to-business (B2B) online shopping. A
typical online store enables the customer to browse the firm's range of products and services,

30
view photos or images of the products, along with information about the product
specifications, features and prices.

Online stores typically enable shoppers to use "search" features to find specific
models, brands or items. Online customers must have access to the Internet and a
valid method of payment in order to complete a transaction, such as a credit card, an Interact-
enabled debit card, or a service such as PayPal. For physical products (e.g., paperback books
or clothes), the e- tailer ships the products to the customer; for digital products, such
as digital audio files of songs or software, the e-tailer typically sends the file to the customer
over the Internet. The largest of these online retailing corporations are Alibaba, Amazon.com,
and eBay.

3.3.2HISTORY OF ONLINE SHOPPING

One of the earliest forms of trade conducted online was IBM's online transaction
processing (OLTP) developed in the 1960s and it allowed the processing of financial
transactions in real-time. The computerized ticket reservation system developed for American
Airlines called Semi-Automatic Business Research Environment (SABRE) was one of its
applications. Here, computer terminals located in different travel agencies were linked to a
large IBM mainframe computer, which processed transactions simultaneously and
coordinated them so that all travel agents had access to the same information at the same
time.

The emergence of online shopping as we know today developed with the emergence
of the Internet. Initially, this platform only functioned as an advertising tool for companies,
providing information about its products. It quickly moved on from this simple utility to
actual online shopping transaction due to the development of interactive Web pages and
secure transmissions. Specifically, the growth of the internet as a secure shopping channel
has developed since 1994, with the first sales of Sting album 'Ten Summoner's Tales'. Wine,
chocolates, and flowers soon followed and were among the pioneering retail categories which
fueled the growth of online shopping. Researchers found that having products that are
appropriate for e-commerce was a key indicator of Internet success. Many of these products
did well as they are generic products which shoppers did not need to touch and feel in order
to buy. But also importantly, in the early days, there were few shoppers online and they were
from a narrow segment: affluent, male, 30+. Online shopping has come along way since these

31
early days and -in the UK- accounts for significant percents (depending on product category
as percentages can vary).

3.3.3 GROWTH IN ONLINE SHOPPERS

As the revenues from online sales continued to grow significantly researchers

identified different types of online shoppers, Rohm &Swaninathan identified four categories
and named them "convenience shoppers, variety seekers, balanced buyers, and store-oriented
shoppers". They focused on shopping motivations and found that the variety of products
available and the perceived convenience of the buying online experience were significant
motivating factors. This was different for offline shoppers, who were more motivated by time
saving and recreational motives.

English entrepreneur Michael Aldrich was a pioneer of online shopping in 1979. His
system connected a modified domestic TV to a real-time transaction processing computer via
a domestic telephone line. He believed that videotex, the modified domestic TV technology
with a simple menu-driven human–computer interface, was a 'new, universally applicable,
participative communication medium — the first since the invention of the telephone.' This
enabled 'closed' corporate information systems to be opened to 'outside' correspondents not
just for transaction processing but also for e-messaging and information retrieval and
dissemination, later known as e-business. His definition of the new mass communications
medium as 'participative' [interactive, many-to-many] was fundamentally different from the
traditional definitions of mass communication and mass media and a precursor to the social
networking on the Internet 25 years later. In March 1980 he launched Redifon's Office
Revolution, which allowed consumers, customers, agents, distributors, suppliers and service
companies to be connected on-line to the corporate systems and allow business transactions
to be completed electronically in real-time.

During the 1980s he designed, manufactured, sold, installed, maintained and

supported many online shopping systems, using videotex technology. These systems which
also provided voice response and handprint processing pre-date the Internet and the World
Wide Web, the IBM PC, and Microsoft MS-DOS, and were installed mainly in the UK by
large corporations.

The first World Wide Web server and browser, created by Tim Berners-Lee in 1990,
opened for commercial use in 1991. Thereafter, subsequent technological innovations

32
emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut,
Netscape's SSL v2 encryption standard for secure data transfer, and Intershop's first online
shopping system. The first secure retail transaction over the Web was either by NetMarket or
Internet Shopping Network in 1994. Immediately after, Amazon.com launched its online
shopping site in 1995 and eBay was also introduced in 1995. Alibaba's
sites Taobao and Tmall were launched in 2003 and 2008, respectively. Retailers are
increasingly selling goods and services prior to availability through "pretail" for testing,
building, and managing demand.

Michael Aldrich, pioneer of online shopping in the 1980s.

English entrepreneur Michael Aldrich was a pioneer of online shopping in 1979. His
system connected a modified domestic TV to a real-time transaction processing computer via
a domestic telephone line. He believed that videotex, the modified domestic TV technology
with a simple menu-driven human–computer interface, was a 'new, universally applicable,
participative communication medium — the first since the invention of the telephone.' This
enabled 'closed' corporate information systems to be opened to 'outside' correspondents not
just for transaction processing but also for e-messaging and information retrieval and
dissemination, later known as e-business. His definition of the new mass communications
medium as 'participative' [interactive, many-to-many] was fundamentally different from the
traditional definitions of mass communication and mass media and a precursor to the social
networking on the Internet 25 years later. In March 1980 he launched Redifon's Office
Revolution, which allowed consumers, customers, agents, distributors, suppliers and service
companies to be connected on-line to the corporate systems and allow business transactions
to be completed electronically in real-time. During the 1980s he designed, manufactured,
sold, installed, maintained and supported many online shopping systems, using videotex
technology. These systems which also provided voice response and handprint processing pre-
date the Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were
installed mainly in the UK by large corporations.

The first World Wide Web server and browser, created by Tim Berners-Lee in 1990,
opened for commercial use in 1991. Thereafter, subsequent technological innovations
emerged in 1994: online banking, the opening of an online pizza shop by Pizza
Hut, Netscape's SSL v2 encryption standard for secure data transfer, and Intershop's first
online shopping system. The first secure retail transaction over the Web was either
by NetMarket or Internet Shopping Network in 1994. Immediately

33
after, Amazon.com launched its online shopping site in 1995 and eBay was also introduced in
1995. Alibaba's sites Taobao and Tmall were launched in 2003 and 2008, respectively.
Retailers are increasingly selling goods and services prior to availability through "pretail" for
testing, building, and managing demand.

3.3.4 INTERNATIONAL STATISTICS

Statistics show that in 2012, Asia-Pacific increased their international sales over 30%
giving them over $433 billion in revenue. That is a $69 billion difference between the U.S.
revenue of $364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in
the year 2013 putting them ahead by more than one-third of all global ecommerce sales. The
largest online shopping day in the world is Singles Day, with sales just in Alibaba's sites at
US$9.3 billion in 2014.

3.3.5CUSTOMERS

Online customers must have access to the Internet and a valid method of payment in
order to complete a transaction. Generally, higher levels of education and personal income
correspond to more favorable perceptions of shopping online. Increased exposure to
technology also increases the probability of developing favorable attitudes towards new
shopping channels.

3.3.6CUSTOMER BUYING BEHAVIOUR IN DIGITAL ENVIRONMENT

The marketing around the digital environment, customer's buying behavior may not
be influenced and controlled by the brand and firm, when they make a buying decision that
might concern the interactions with search engine, recommendations, online reviews and
other information. With the quickly separate of the digital devices environment, people are
more likely to use their mobile phones, computers, tablets and other digital devices to gather
information. In other words, the digital environment has a growing effect on consumer's mind
and buying behaviour. In an online shopping environment, interactive decision may have an
influence on aid customer decision making. Each customer is becoming more interactive, and
though online reviews customers can influence other potential buyers' behaviors.

Subsequently, risk and trust would also are two important factors affecting people's'
behavior in digital environments. Customer consider to switch between e-channels, because
they are mainly influence by the comparison with offline shopping, involving growth of

34
security, financial and performance-risks In other words, a customer shopping online that
they may receive more risk than people shopping in stores. There are three factors may
influence people to do the buying decision, firstly, people cannot examine whether the
product satisfy their needs and wants before they receive it. Secondly, customer may concern
at after-sale services. Finally, customer may afraid that they cannot fully understand the
language used in e-sales. Based on those factors customer perceive risk may as a significantly
reason influence the online purchasing behaviour.

Online retailers has place much emphasis on customer trust aspect, trust is another
way driving customer's behaviour in digital environment, which can depend on customer's
attitude and expectation. Indeed, the company's products design or ideas can notmet
customer's expectations. Customer's purchase intension based on rational expectations, and
additionally impacts on emotional trust. Moreover, those expectations can be also establish
on the product information and revision from others.

3.3.7PRODUCT SELECTION

Consumers find a product of interest by visiting the website of the retailer directly or
by searching among alternative vendors using a shopping search engine. Once a particular
product has been found on the website of the seller, most online retailers use shopping cart
software to allow the consumer to accumulate multiple items and to adjust quantities, like
filling a physical shopping cart or basket in a conventional store. A "checkout" process
follows (continuing the physical-store analogy) in which payment and delivery information is
collected, if necessary. Some stores allow consumers to sign up for a permanent online
account so that some or all of this information only needs to be entered once. The consumer
often receives an e-mail confirmation once the transaction is complete. Less sophisticated
stores may rely on consumers to phone or e-mail their orders (although full credit card
numbers, expiry date, and Card Security Code, or bank account and routing number should
not be accepted by e-mail, for reasons of security).

3.3.8 PAYMENT

Online shoppers commonly use a credit card or a PayPal account in order to make
payments. However, some systems enable users to create accounts and pay by alternative
means, such as:

 Billing to mobile phones and landlines

35
 Cash on delivery (C.O.D.)
 Cheque/ Check
 Debit card
 Direct debit in some countries
 Electronic money of various types
 Gift cards
 Postal money order
 Wire transfer/delivery on payment
 Invoice, especially popular in some markets/countries, such as Switzerland
 Bitcoin or other cryptocurrencies

Some online shops will not accept international credit cards. Some require both the
purchaser's billing and shipping address to be in the same country as the online shop's base of
operation. Other online shops allow customers from any country to send gifts anywhere. The
financial part of a transaction may be processed in real time (e.g. letting the consumer know
their credit card was declined before they log off),or may be done later as part of the
fulfillment process.

3.3.9 PRODUCT DELIVERY

Once a payment has been accepted, the goods or services can be delivered in the
following ways. For physical items:

 Shipping: The product is shipped to a customer-designated address. Retail package

delivery is typically done by the public postal system or a retail courier such
as FedEx, UPS, DHL, or TNT.
 Drop shipping: The order is passed to the manufacturer or third-party distributor, who
then ships the item directly to the consumer, bypassing the retailer's physical location to
save time, money, and space.
 In-store pick-up: The customer selects a local store using a locator software and picks up
the delivered product at the selected location. This is the method often used in the bricks
and clicks business model.

For digital items or tickets:

36
 Downloading/Digital distribution:[24] The method often used for digital media products
such as software, music, movies, or images.
 Printing out, provision of a code for, or e-mailing of such items as admission
tickets and scrip (e.g., gift certificates and coupons). The tickets, codes, or coupons may
be redeemed at the appropriate physical or online premises and their content reviewed to
verify their eligibility (e.g., assurances that the right of admission or use is redeemed at
the correct time and place, for the correct dollar amount, and for the correct number of
uses).
 Will call, COBO (in Care Of Box Office), or "at the door" pickup: The patron picks up
pre-purchased tickets for an event, such as a play, sporting event, or concert, either just
before the event or in advance. With the onset of the Internet and e-commerce sites,
which allow customers to buy tickets online, the popularity of this service has increased.

3.3.10 SHOPPING CART SYSTEMS

Simple shopping cart systems allow the off-line administration of products and
categories. The shop is then generated as HTML files and graphics that can be uploaded to a
webspace. The systems do not use an online database. A high-end solution can be bought or
rented as a stand-alone program or as an addition to an enterprise resource planning program.
It is usually installed on the company's web server and may integrate into the existing supply
chain so that ordering, payment, delivery, accounting and warehousing can be automated to a
large extent. Other solutions allow the user to register and create an online shop on
a portal that hosts multiple shops simultaneously from one back office.

Examples are BigCommerce, Shopify and FlickRocket. Open source shopping cart
packages include advanced platforms such as Interchange, and off-the-shelf solutions such
as Magento, os Commerce, Shopgate, PrestaShop, and Zen Cart. Commercial systems can
also be tailored so the shop does not have to be created from scratch. By using an existing
framework, software modules for various functionalities required by a web shop can be
adapted and combined.

3.3.11 DESIGN

Customers are attracted to online shopping not only because of high levels of
convenience, but also because of broader selections, competitive pricing, and greater access
to information. Business organizations seek to offer online shopping not only because it is of

37
much lower cost compared to bricks and mortar stores, but also because it offers access to a
worldwide market, increases customer value, and builds sustainable capabilities.

3.3.12 INFORMATION LOAD

Designers of online shops are concerned with the effects of information load.
Information load is a product of the spatial and temporal arrangements of stimuli in the web
store. Compared with conventional retail shopping, the information environment of virtual
shopping is enhanced by providing additional product information such as comparative
products and services, as well as various alternatives and attributes of each alternative,
etc. Two major dimensions of information load are complexity and novelty. Complexity
refers to the number of different elements or features of a site, often the result of increased
information diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar
aspects of the site. The novelty dimension may keep consumers exploring a shopping site,
whereas the complexity dimension may induce impulse purchases.

3.3.13CONSUMER NEEDS AND EXPECTATIONS

According to the output of a research report by Western Michigan

University published in 2005, an e-commerce website does not have to be good looking with
listing on a lot of search engines. It must build relationships with customers to make money.
The report also suggests that a website must leave a positive impression on the customers,
giving them a reason to come back. However, resent research has proven that sites with
higher focus on efficiency, convenience, and personalized services increased the customers
motivation to make purchases.

Dyn, an Internet performance management company conducted a survey on more than

1400 consumers across 11 countries in North America, Europe, Middle-East and Asia and the
results of the survey are as follows:

 Online retailers must improve the website speed

 Online retailers must ease consumers fear around security

These concerns majorly affect the decisions of almost two thirds of the consumers.

3.3.14 USER INTERFACE

An automated online assistant, with potential to enhance user interface on shopping
sites. The most important factors determining whether customers return to a website are ease

38
of use and the presence of user-friendly features. Usability testing is important for finding
problems and improvements in a web site. Methods for evaluating usability include heuristic
evaluation, cognitive walkthrough, and user testing. Each technique has its own
characteristics and emphasizes different aspects of the user experience.

3.3.15 MARKET SHARE

The popularity of online shopping continues to erode sales of conventional retailers.

For example, Best Buy, the largest retailer of electronics in the U.S. in August 2014 reported
its tenth consecutive quarterly dip in sales, citing an increasing shift by consumers to online
shopping. Amazon.com has the largest market share in the United States. As of May 2018, a
survey found two-thirds of Americans had bought something from Amazon (92% of those
who had bought anything online), with 40% of online shoppers buying something from
Amazon at least once a month. The survey found shopping began at amazon.com 44% of the
time, compared to a general search engine at 33%. It estimated 75 million Americans
subscribe to Amazon Prime and 35 million more use someone else's account.

There were 242 million people shopping online in China in 2012. For developing
countries and low-income households in developed countries, adoption of e-commerce in
place of or in addition to conventional methods is limited by a lack of affordable Internet
access.

39
 3.4.1 Amazon.com, Inc.

Amazon.com, Inc.

The Amazon Spheres, part of the Amazon headquarters campus in Seattle, March 2017

Trading name Amazon

Formerly Cadabra, Inc. (1994–95)

Type Public

Traded as NASDAQ-100 component , S&P 100 component S&P 500 component

ISIN US0231351067
Industry Cloud computing Consumer Electronic commerce
Founded July 5, 1994; 24 years ago
Founder Jeff Bezos
Headquarters Seattle, Washington U.S.
Area served Worldwide
Key people Jeff Bezos (chairman, president and CEO) Werner Vogels (CTO)
 Products Amazon Appstore Amazon Echo Amazon Kindle,AmazonPrime
Amazon Video ComiXology
Revenue US$177.866 billion (2017)
Operating income US$4.106 billion (2017)

40
Net income US$3.033 billion (2017)
Total assets US$131.31 billion (2017)
Total equity US$27.709 billion (2017)
Number of employees 613,300 (2018)
Subsidiaries A9.com, Inc. , AbeBooks, Amazon Air Alexa Internet
Amazon Books, Amazon Game Studios ,Amazon Lab126
Amazon Logistics, Inc. Amazon Publishing
Amazon Robotics,Amazon.com Services, Inc. Amazon Studios
Amazon Web Services, Inc. Audible Inc., Body Labs
Book Depository, Digital Photography Review, Goodreads
Graphiq , IMDb Ring Souq.com, Twitch.tv Whole Foods
Market ,Woot, Zappos
Website www.amazon.com

Amazon (company)
Amazon.com, Inc., doing business as Amazon , is a
multinational technology company focusing in e-commerce, cloud computing, and artificial
intelligence in Seattle, Washington. It has been called one of the Big Four or "Four
Horsemen" of technology along with Apple, Alphabet and Facebook due to its market
capitalization, disruptive innovation, brand equity and hyper-competitive application process.

It is the largest e-commerce marketplace and cloud computing platform in the world
as measured by revenue and market capitalization. Amazon.com was founded by Jeff
Bezos on July 5, 1994, and started as an online bookstore but later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streami
ng, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The
company also owns a publishing arm, Amazon Publishing, a film and television
studio, Amazon Studios, produces consumer electronics lines including Kindle e-
readers, Fire tablets, Fire TV, and Echo devices, and is the world's largest provider of cloud
infrastructure services (IaaS and PaaS) through its AWS subsidiary. Amazon also sells
certain low-end products under its in-house brand AmazonBasics.

Amazon has separate retail websites for the United States, the United Kingdom and
Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China,

41
India, Mexico, Singapore, and Turkey. In 2016, Dutch, Polish, and Turkish language versions
of the German Amazon website were also launched. Amazon also offers international
shipping of some of its products to certain other countries.

In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States
by market capitalization. Amazon is the third most valuable public company in the United
States (behind Apple and Microsoft), the largest Internet company by revenue in the world,
and after Walmart, the second largest employer in the United States. In 2017, Amazon
acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon's presence
as a brick-and-mortar retailer. The acquisition was interpreted by some as a direct attempt to
challenge Walmart's traditional retail stores.

In 2018, for the first time, Jeff Bezos released in Amazon's shareholder letter the
number of Amazon Prime subscribers, which is 100 million worldwide. In 2018,
Amazon.com contributed US$1 million to the Wikimedia Endowment. In November 2018,
Amazon announced it would be splitting its second headquarters project between two cities.
They are currently in the finalization stage of the process.

42
 3.4.2 FLIPKART

Type of site E-commerce

Available in English

Founded 2007; 11 years ago

Headquarters Bengaluru, India

Area served India

Owner Walmart (81.3%)

Founder(s) SachinBansal, Binny Bansal

Key people Kalyan Krishnamurthy (CEO)

Services Online shopping

Revenue ₹199 billion (US$2.8 billion) (2017)

Employees 30,000 (2016)

Subsidiaries Myntra Jabong.com ,PhonePe , Ekart, Jeeves, 2GUD

Website www.flipkart.com
Alexa rank 156 (Global,(June2018)
9 (India, June 2018)
CommerciaL Yes
Registration Required
Current status Online

Flipkart Pvt Ltd. is an Indian electronic commerce company based

in Bengaluru, India. Founded by Sachin Bansal and Binny Bansal in 2007, the
company initially focused on book sales, before expanding into other product
categories such as consumer electronics, fashion, and lifestyle products.

43
 The service competes primarily with Amazon's Indian subsidiary, and the domestic
rival Snapdeal. As of 2017, Flipkart held a 39.5% market share of India's e-commerce
industry. Flipkart is significantly dominant in the sale of apparel (a position that was
bolstered by its acquisitions of Myntra and Jabong.com), and was described as being "neck
and neck" with Amazon in the sale of electronics and mobile phones. Flipkart also
owns PhonePe, a mobile payments service based on the Unified Payments Interface(UPI).

In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling stake in
Flipkart for $16 billion USD.

44
 3.4.3 SNAPDEAL

Type of business Private

Type of site E-commerce

Available in English

Founded 2010; 8 years ago

Headquarters New Delhi, India

Area served India

Founder(s ) KunalBahl Rohit Bansal

Industry Internet

Services Online shopping

Website www.snapdeal.com

Alexa rank 1,137 (May 2018)

Registration Required

Current status Online

Native client(s) on iOS, Android, Windows

45
 Snapdeal is an Indian e-commerce company based in New Delhi, India. The
company was started by Kunal Bahl and Rohit Bansal in February 2010. As of 2014,
Snapdeal had 300,000 sellers, over 30 million products across 800+ diverse categories from
over 125,000 regional, national, and international brands and retailers and a reach of 6,000
towns and cities across the country.

Investors in the company include SoftBank Corp, Ru-Net Holdings, Tybourne

Capital, PremjiInvest, Alibaba Group, Temasek Holdings, Bessemer Venture Partners,
IndoUS Ventures, Kalaari Capital, Saama Capital, Foxconn Technology Group,
Blackrock, eBay, Nexus Ventures, Intel Capital, Ontario Teachers' Pension Plan, Singapore-
based investment entity Brother Fortune Apparel and Ratan Tata In April 2015, Snapdeal
acquired FreeCharge for $400 million, but resold the mobile-payments company in 2017.

History

Snapdeal was started on 4 February 2010 as a daily deals platform, but expanded in
September 2011 to become an online marketplace. The move came as a surprise to investors,
since the company had a 70 percent share in the daily deals business. Snapdeal has grown to
become one of the largest online marketplace in India offering an assortment of 10 million
products across diverse categories from over 100,000 sellers, shipping to more than
5,000 towns and cities in India. In March 2015, Snapdeal brought actor Aamir Khan for the
promotion of its website in India. In October 2017, Snapdeal's CFO Anup Vikal resigned.

46
 3.4.4 MYNTRA

Type of business Private

Type of site E-commerce

(online shopping)

Available in English

Area served India

Founder(s) Mukesh Bansal

Vineet Saxena
Ashutosh Lawania

Key people Amar Nagaram

Parent Flipkart

Subsidiaries Jabong.com, Fitiquette

Website www.myntra.com

Alexa rank 1,267 (June 2018)

Commercial Yes

Registration Required

Launched 2007

Current status Online

Myntra is an Indian fashion e-commerce company headquartered

in Bengaluru, Karnataka, India. The company was founded in 2007 to sell personalized gift
items. In May 2014, Myntra.com was acquired by Flip kart.

47
HISTORY

Established by Mukesh Bansal along with Ashutosh Lawania and Vineet Saxena;
Myntra sold on-demand personalized gift items. It mainly operated on the B2B (business-to-
business) model during its initial years. Between 2007 and 2010, the site allowed customers
to personalize products such as T-shirts, mugs, mouse pads, and others.

In 2011, Myntra began selling fashion and lifestyle products and moved away from
personalization. By 2012 Myntra offered products from 350 Indian and International brands.
The website launched the brands Fastrack Watches and Being Human.

In 2014 Myntra was acquired by Flipkart in a deal valued at ₹2,000

crore (US$280 million). The purchase was influenced by two large common shareholders,
Tiger Global and Accel Partners. Myntra functions and operates independently. Myntra
continues to operate as a standalone brand under Flip kart ownership, focusing primarily on
"fashion-conscious" consumers.

In 2014, Myntra's portfolio included about 1,50,000 products of over 1000 brands,
with a distribution area of around 9000 pin codes in India. In 2015, Ananth Narayanan
became the Chief Executive Officer of Myntra.

On 10 May 2015, Myntra announced that it would shut down its website, and serve
customers exclusively through its mobile app beginning 15 May. The service had already
discontinued its mobile website in favor of the app. Myntra justified its decision by stating
that 95% of traffic on its website came via mobile devices, and that 70% of its purchases
were performed on smartphones. The move received mixed reception, and resulted in a 10%
decline in sales.

In February 2016, acknowledging the failure of the "app-only" model, Myntra

announced that it would revive its website.

In September 2017, Myntra negotiated the rights to manage Esprit Holdings's 15

offline stores in India.

48
 3.4.5 OLX
OLX Group (OnLine Exchange)

Type Incorporated

Industry Marketplace classifieds forums

Founded 2006

Founder Fabrice Grinda, Alec Oxenford

Number of locations 40+ countries

Area served Worldwide

Key people Martin Scheepbouwer – CEO

Number of employees 4000

Parent Naspers

Website www.olxgroup.com

OLX Group is a global online marketplace (headquartered in Amsterdam, and owned

by South African media and technology group Naspers), operating in 45 countries, and is the
largest online classified ads company in Brazil, India, Bulgaria, Pakistan,
Poland, Romania, Portugal and Ukraine. It was founded in 2006.

The OLX marketplace is a platform for buying and selling services and goods such as
electronics, fashion items, furniture, household goods, cars and bikes. In 2014, the platform
had 11 billion page views, 200 million monthly active users, 25 million listings, and 8.5
million transactions per month.

49
 South African media group Naspers acquired a majority of OLX in 2010 and 95% of
the company in 2014.

History

Fabrice Grinda and Alec Oxenford started the company as a Craigslist alternative for
the world outside of the United States.

In 2006, it acquired Mundoanuncio.com, a classifieds site targeting the Hispanic

market and in 2007, it made an investment Chinese classifieds site in Edeng.cn. In 2008, its
growth in the Philippines was attributed to its partnership with Friendster.

The company added "Web 2.0" features in 2008, such as social network widgets,
improved search, Ajax-based editors, interactive maps, and mobile versions.

In 2009, the company partnered with social network Hi5 which at the time had 60
million users. Hi5 implemented OLX features, such as displaying ads and sharing ads with
friends, and OLX enabled video, image and mobile features, in 39 languages and 90
countries. In 2010, a majority of the company was acquired by the South African media
group Naspers, which bought out the existing investors.

CEO Alec Oxenford said in a 2014 interview that OLX had deliberately launched in
India, the largest available market, rather than in the United States. Naspers consolidated its
online classified operations in the Philippines, Thailand, Poland, Hungary, Bulgaria,
Romania, Ukraine, Belarus, Kazakhstan and Indonesia and re-branded them as OLX.

In 2014, OLX's global traffic was 240 million unique monthly visits, 54% of which
came from mobile .

In late 2016 it launched Tradus as a heavy machinery classifieds site . It lists used
heavy machinery and vehicles and their spare parts, for construction, transport, and farming
purposes.

50
 UNIT-IV

DATA ANALYSIS AND INTERPRETATION

MEANING OF DATA ANALYSIS AND INTERPRETATION

The process of evaluating data using analytical and logical reasoning to examine each
component of the data provided. This form of analysis is just one of the many steps that must
be completed when conducting a research experiment. Data from various sources is gathered,
reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety
of specific data analysis method, some of which include data mining, text analytics, business
intelligence.

Data interpretation refers to the implementation of processes through which data is

reviewed for the purpose of arriving at an informed conclusion. The interpretation of data
assigns a meaning to the information analyzed and determines its signification and
implications.

The importance of data interpretation is evident and this is why it needs to be done
properly. Data is very likely to arrive from multiple sources and has a tendency to enter the
analysis process with haphazard ordering. Data analysis tends to be extremely subjective.
That is to say, the nature and goal of interpretation will vary from business to business, likely
correlating to the type of data being analyzed. While there are several different types of
processes that are implemented based on individual data nature, the two broadest and most
common categories are “quantitative analysis” and “qualitative analysis”.

51
 TABLE NO 4.1

GENDER OF THE RESPONDENTS

NUMBER OF
S.NO GENDER PERCENTAGE
RESPONDENTS

1. Male 52 41.6%

2. Female 68 54.4%

3. Transgender 5 4%

Total 125 100%

SOURCE: - Primary data

INTERPRETATION:

The above table reveals that the gender of the respondents. The highest percentage of
54.4%percent of the respondents are belongs to Female. 41.6% percent of the respondents are
belongs to the Male group. Remaining 4% percent of the respondents belong to transgender
group. So, most of the respondents are Female.

52
 CHART NO 4.1.1

GENDER OF THE RESPONDENTS

68
70
52
60
NO. OF RESPONDENTS

50

40

30

20
5
10

0
Male Female Transgender
GENDER

53
 TABLE 4.2

AGE OF THE RESPONDENT

S.NO AGE NUMBER OF RESPONDENTS PERCENTAGE

1. Belowe20 54 43.2%

2. 21-30 66 52.8%

3. 31-40 4 3.2%

4. Above 41 1 0.8%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION:-

The above table depicts that the age of the respondents. The highest percentage of
52.8% percent of the respondents belongs to 21-30 age category, 43.2percent of the
respondents belongs to Below 20 age category. 3.2 percent of the respondents belong to 31-
40 age categories. And least percentage of 0.8 percent respondents belongs to the above 41
age category. So most of the respondents are 21-30 age categories.

54
 CHART 4.1.2

AGE OF THE RESPONDENT

70 66

60 54
NO. OF RESPONDENT

50

40

30

20

10 4
1
0
BELOWE20 21-30 31-40 ABOVE 41
AGE

55
 TABLE 4.3

MARTIAL STATUS OF THE RESPONDENT

S.NO MARTIAL NUMBER OF PERCENTAGE

STATUS RESPONDENTS

1. Married 30 24%

2. Unmarried 80 64%

3. Widow 10 8%

4. Divorced 5 4%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table states clearly that 64 percent of the respondents are Unmarried, 24
percent of the respondents are married. 8 percent of the respondents are widow and rest
4percent of the respondents are divorced. So, most of the respondents are Unmarried.

56
 CHART 4.1.3

MARTIAL STATUS OF THE RESPONDENTS

80
80
70
NO. OF RESPONDENTS

60
50
40 30
30
20 10
5
10
0
Married Unmarried Widow Divorced
MARTIAL SATUS

57
 TABLE 4.4

OCCUPATION OF THE RESPONDENT

S.NO OCCUPATION NUMBER OF PERCENTAGE

RESPONDENTS

1. Students 47 37.6%

2. Business 25 20%

3. Employee 31 24.8%

4. Profession 22 17.6%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table reveals that the occupation of the respondents. High percentages of
the respondent are students (37.6%). 24.8 percent of respondent are belongs to employee
occupation, 20 percent of the respondent are belongs to Business occupation. And rest of
17.6 percentages of the respondents are professional occupation. So, most of the respondents
are belongs to students occupation.

58
 CHART 4.1.4

OCCUPATION OF THE RESPONDENT

NO. OF RESPONDENTS

60 47

40
25 31
20 22
0
Students
Business
Employee
Profession
OCCUPATIONS

59
 TABLE 4.5

EDUCATIONAL QUALIFICATION

EDUCATIONAL
S.NO NUMBER OF RESPONDENTS PERCENTAGE
QUALIFICATION

1. Illiterate 10 8%

2. Secondary 18 14.4%

3. Higher Secondary 21 16.8%

4. Degree 76 60.8%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table shows that the Educational qualification of the respondents. 60.8
percent of the respondents belongs to Degree, 16.8 percent of the respondents belongs to
higher secondary level of education. 14.4 percent of the respondents belongs to Secondary
level of education and 8 percent of the respondents are belongs to illiterate level of
educational qualification. So, most of the respondents are degree level of educational
qualification.

60
 CHART 4.1.5

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

100 91
90
NO. OF RESPONDENT

80
70
60
50
40
30
20 12 13
9
10
0
ILLITERATE SECONDARY HIGHER DEGREE
SECONDARY
EDUCATIONAL QUALIFICATION

61
 TABLE 4.6

FAMILY TYPE

S.NO FAMILY TYPE NUMBER OF RESPONDENTS PERCENTAGE

1. Nuclear 82 65.6%

2. Joint Family 43 34.4%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table express that the Family type of the respondents. The highest
percentages 65.6% per cent of respondents are living in Nuclear family. And the lowest
percentages of 34.4 per cent of the respondents are living in Joint family. So, most of the
respondents are living in nuclear family.

62
 CHART NO 4.1.6

FAMILY TYPE

90 82
NO. OF RESPONDENT

80
70
60
50 43
40
30
20
10
0
NUCLEAR JOINT FAMILY
FAMILY TYPE

63
 TABLE 4.7

MONTHLY INCOME

NUMBER OF
S.NO MONTHLY INCOME PERCENTAGE
RESPONDENTS
1. Below 10,000 48 38.4%

2. Rs.10,000 – 20,000 41 32.8%

3. Rs.20,000- 30,000 21 16.8%

4. Above 30,000 15 12%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION:-

The above table notes that the monthly income of the respondents. 38.4 percent of the
respondent getting below 10,000 of monthly income, 32.8 per cent of respondent getting
Rs.10, 000-20, 000, 16.8 percent of the respondents are getting Rs.20, 000-30,000 monthly
income. Remaining 12 percent of the respondents getting Above 30,000 rupees as their
monthly income. So, most of the respondents are getting below 10,000 rupees of monthly
income.

64
 CHART NO 4.1.7

MONTHLY INCOME OF THE RESPONDENTS

NO. OF RESPONDENTS 60
48
50
41
40

30
21
20 15

10

0
BELOWE RS.10,000 – RS.20,000- ABOVE 30,000
10,000 20,000 30,000
MONTHLY INCOME

65
 TABLE 4.8

RESIDENT OF THE RESPONDENTS

S.NO RESIDENT NUMBER OF RESPONDENTS PERCENTAGE

1. Village 19 15.2%

2. Town 32 25.6%

3. City 61 48.8%

4. Semi – Town 13 10.4%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table elaborate that the resident of the respondents. The higher percentage
48.8 per cent of the respondents are living in city side,25.6 percent of the respondent are
living in town side. 15.2 percent of the respondents are living in village side, the least
percentage 10.4 percent of the respondents are living in semi-town side. So, most of the
respondents are living in city side.

66
 CHART NO 4.8

RESIDENT OF THE RESPONDENT

70
61
NO. OF RESPONDENT

60

50

40
32
30
19
20
13
10

0
VILLAGE TOWN CITY SEMI – TOWN
Resident

67
 TABLE 4.9

WHICH WEBSITE DO YOU VISIT FREQUENTLY

NUMBER OF
S.NO WEBSITES PERCENTAGE
RESPONDENTS

1. Amazon 48 38.4%

2. Flip kart 47 37.6%

3. Snap deal 8 6.4%

4. Olx 6 4.8%

5. Mythra 5 4%

6. Others 11 8.8%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table shows that the website visiting by the respondents. The highest
percentage 38.4 per cent of the respondent visiting the amazon website, 37.6 percent
respondents are visiting the Flip kart website,8.8 percent of the respondents visiting other
kind of websites to online shopping.6.4 percent of the respondents are visiting Snap deal
website,4.8 percent of the respondent are visiting Olx website and least percentage 4 percent
of the respondent visiting Mythra online shopping website to buy products in online. So, most
of the respondent are visiting Amazon‘s website to buy products at online.

68
 CHART NO 4.1.9

WEBSITE VISITING

60

48 47
50
NO. OF RESPONDENT

40

30

20
11
8
10 6
5

0
AMAZON FLIPKART SNAPDEAL OLX MYTHRA OTHERS
WEB SITES

69
 TABLE 4.10

WHERE DO YOU GET THE INFORMATION

NUMBER OF
S.NO INFORMATION SOURCES PERCENTAGE
RESPONDENTS
1. Online Ads 42 33.6%

2. Offline Ads 9 7.2%

3. Friends 46 36.8%

4. News Paper 20 16%

5. Others 8 6.4%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table states that the where the respondent get the information sources about
the online shopping. Highest percentage 36.8 percent of the respondent get the information
from their friends, 33.6 per cent of the respondents are getting the information from the
online advertisement. 16 percent of the respondent getting the information from the
Newspapers, 7.2 per cent of the respondent getting the information from the offline
advertisements. And least percentage 6.4 per cent of the respondent getting the information
from the other sources. So, most of the respondents are getting the information from their
friends.

70
 CHART NO 4.1.10

INFORMATION SOURCES ABOUT THE ONLINE SHOPPING

50 46
45 42
40
NO. OF RESPONDENT

35
30
25
20
20
15
9 8
10
5
0
ONLINE ADS OFFLINE ADS FRIENDS NEWS PAPER OTHERS

SOURCES OF INFORMATION

71
 TABLE 4.11

WHAT TYPE OF PRODUCT DO YOU PURCHASE IN ONLINE

NUMBER OF
S.NO PRODUCTS TYPE PERCENTAGE
RESPONDENTS
1. Books 11 8.8%
2. Apparels 5 4%
3. Electronic Goods 49 39.2%
4. Gifts, Greetings 18 14.4%
5. Share Trading 4 3.2%
6. Banking 3 2.4%
7. Music 5 4%
8. Online Magazines & Journals 3 2.4%
Airlines Reservation /Railway
9. 7 5.6%
Tickets
10. Others 20 16%
TOTAL 125 100%
SOURCE: - Primary data

INTERPRETATION: -

The above table shows that the types of products which are purchasing by the
respondents in online shopping. Highest percentage 39.2 per cent of the respondents are
buying Electronic goods, 14.4 per cent of the respondents are buying gift, greetings goods,
8.8 per cent of the respondents are buying books at online. 5.6 per cent of the respondents are
buying airlines, railway tickets,4 per cent of the respondents are buying music and appears
goods, 3.2 per cent of the respondents are buying share trading goods. And least percentage
2.4 per cent of the respondents are buying banking and online magazines & journals at online
shopping. So, most of the respondents are buying electronically goods at online shopping.

72
 CHART NO 4.1.11

TYPE OF PRODUCT PURCHASE

Others 20

Airlines Reservation /Railway… 7

TYPES OF PRODUCTS

Online Magazines & Journals 3

Music 5

Banking 3

Share Trading 4

Gifts, Greetings 18

Electronic Goods 49

Apparels 5

Books 11

0 10 20 30 40 50
NO. OF RESPONDENTS

73
 TABLE 4.12

HOW OFTEN DO YOU SHOP AT ONLINE

S.NO TIME PERIOD NUMBER OF RESPONDENTS PERCENTAGE

1. Daily 6 4.8%

2. Weekly 11 8.8%

3. Monthly 48 38.4%

4. Yearly 13 10.4%

5. Rarely 47 37.6%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table shows that the how often the respondent shopping at online. Highest
percentage 38.4 per cent of the respondents shopping at online monthly, 37.6 per cent of the
respondents are shopping at online rarely. 10.4 per cent of the respondent are shopping at
online yearly, 8.8 percent of the respondents are shopping at online weekly. The lowest
percentage 4.8 percent of the respondents are shopping daily. So, most of the respondents are
shopping at online monthly.

74
 CHART NO 4.1.12

TIMING OF PURCHASE

60

50 48 47
NO. OF RESPONDENTS

40

30

20
13
11
10
6

0
DAILY WEEKLY MONTHLY YEARLY RARELY

TIME OF PURCHASE

75
 TABLE 4.13

HOW MUCH TIMING DO YOU SPENT IN ONLINE FOR SHOPPING

PURPOSE

S.NO TIMING NUMBER OF RESPONDENTS PERCENTAGE

1. Below 1 Hour 74 59.2%

2. 1-2 Hours 37 29.6%

3. 2-3 Hours 5 4%

4. Above 3 Hours 9 7.2%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table reveals that the time spending by the respondent at online for
shopping purpose. Highest percentage 59.2 per cent of the respondent spending Below1 hour
in online for shopping purpose. 29.6 per cent of the respondents are spending 1-2 hours in
online for shopping purpose, 7.2 per cent of the respondents are spending Above 3 hours in
online for shopping purpose. The lowest percentage 4 percent of the respondents are spending
2-3 hours in online for shopping purpose. So, most of the respondents are spending Below 1
hour in online for shopping purpose.

76
 CHART NO 4.1.13

TIME SPENDING ON ONLINE FOR SHOPPING PURPOSE

74
80
NO. OF RESPONDENTS

70
60
50 37
40
30
20 9
5
10
0
Below 1 1-2 Hours 2-3 Hours Above 3
Hour Hours
TIME

77
 TABLE 4.14

HOW MUCH OF AMOUNT DO YOU SPEND IN ONLINE SHOPPING

PER MONTH

S.NO AMOUNT NUMBER OF RESPONDENTS PERCENTAGE

1. Below 1,000 67 53.6%

2. Rs.1,000-3,000 35 28%

3. Rs.3,000-5,000 9 7.2%

4. Rs.5,000-10,000 6 4.8%

5. Above 10,000 8 6.4%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table shows that the amount spending by the respondents for online
shopping. Most of the 53.6 percent of the respondents are spending Below 1,000 rupees for
online shopping. 28 percent of the respondent spending Rs.1,000-3,000 for online shopping.
7.2 percent of the respondents spending Rs.3, 000-5,000 for online shopping,6.4 percent of
the respondents are spending Above 10,000 rupees for online shopping. Least of the 4.8
percent respondents are spending Rs.5, 000-10,000 for online shopping. So, most of the
respondents are spending below 1,000 rupees for online shopping.

78
 CHART NO 4.1.14

AMOUNT SPENDING ON ONLINE FOR SHOPPING

67
70

60
NO. OF RESPONDENTS

50
35
40

30

20
9 8
6
10

0
BELOWE 1,000 Rs.1,000-3,000 Rs.3,000-5,000 Rs.5,000-10,000 ABOVE 10,000
AMOUNT SPENDING

79
 TABLE 4.15

HOW LONG DO YOU USE ONLINE SHOPPING

NUMBER OF
S.NO YEARS OF USING PERCENTAGE
RESPONDENTS

1. Less Than 1 Year 53 42.4%

2. 2-3 Years 56 44.8%

3. 4-5 Years 6 4.8%

4. More Than 5 Years 10 8%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION: -

The above table reveals that the how long the respondents are using online shopping.
Highest percentage 44.8 percent of the respondents are using online shopping 2-3 years. 42.4
percent of the respondent are using online shopping less than I year, 8 percent of the
respondent are using online shopping for more than 5 years. Lowest percentages 4.8 per cent
of the respondents are using online shopping for 4-5 years. So, most of the respondents are
using online shopping for 2-3 years.

80
 CHART NO 4.1.15

USAGE OF ONLINE SHOPPING EXPERIENCE IN YEARS

60
NO. OF RESPONDENTS

50

40

30 56
53
20

10
6 10
0
LESS THAN 1 2-3 YEARS 4-5 YEARS MORE THAN
YEAR 5 YEARS
USING YEARS

81
 TABLE 4.16

WHY DO YOU PREFER ONLINE SHOPPING

REASON FOR
S.NO NUMBER OF RESPONDENTS PERCENTAGE
PREFER

1. Time Saving 62 49.6%

2. Less Stress 9 7.2%

3. Less Expensive 6 4.8%

4. Best Offers 42 33.6%

5. Quality Of Services 6 4.8%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table states that the reason for the prefer of online shopping by the
respondents. The highest percentage 49.6 percent of the respondents prefer the online
shopping for the reason of time saving, 33.6 percent of the respondents are preferring online
shopping for the reason of best offers. 7.2 percent of the respondents are preferring the online
shopping for the reason less stress. the lowest percentage 4.8 percent of the respondents are
preferring the online shopping for the reason of less expensive and quality of service. So,
most of the respondents are preferring the online shopping for the reason of time saving.

82
 CHART NO 4.1.16

REASON FOR PREFER OF ONLINE SHOPPING

70
NO. OF RESPONDENTS

60
50
40
30 62

20 42

10
9 6 6
0
TIME LESS LESS BEST QUALITY
SAVING STRESS EXPENSIVE OFFERS OF
SERVICES
REASONS FOR PREFER

83
 TABLE 4.17

IN WHICH DEVICE DO YOU USE FOR ONLINE SHOPPING

S.NO DEVICES NUMBER OF RESPONDENTS PERCENTAGE

1. Mobile 100 80%

2. Tab 9 7.2%

3. Laptop 12 9.6%

4. Personal Computer 4 3.2%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table denotes that the device which is using by the respondent for the
online shopping. The highest percentage 80 percent of the respondents are using mobile
phones for the online shopping. 9.6 percent respondents are using laptops for the online
shopping, 7.2 percent of the respondents are using tablet for online shopping. The lowest
percentage 3.2 percent of the respondents are using personal computer for the online
shopping. So, the most of the respondent are using mobile phone device for the online
shopping.

84
 CHART NO 4.1.17

USAGE OF DEVICE FOR ONLING SHOPPING

120
100
NO. OF RESPONDENTS

100

80

60

40

20 9 12
4
0
MOBILE TAB LAPTOP PERSONAL
COMPUTER
DEVICES

85
 TABLE 4.18

SELECT THE PAYMENT MODE NORMALLY ADOPTED BY YOU IN

ONLINE SHOPPING

MODE OF
S.NO NUMBER OF RESPONDENTS PERCENTAGE
PAYMENTS

1. Credit Cards 5 4%

2. Debit Cards 17 13.6%

3. Net Banking 13 10.4%

4. Cash On Delivery 89 71.2%

5. DD (Demand Draft) 1 0.8%

TOTAL 125 100%

SOURCE: - Primary data

INTERPRETATION:-

The above table shows that the mode of payment which is adopted by the respondents
for the online shopping. The highest percentage 71.2 percent of the respondents are using
cash on delivery payment mode for the payment of online shopping. 13.6 percent of the
respondents are using Debit card payment mode, 10.4 percent of the respondents are using
Net banking mode of payment, 4 percent of the respondents are using Credit card payment
mode. And the lowest percentage 0.8 percent of the respondents are using DD (demand draft)
payment mode. So, the most of the respondents are using the cash on delivery mode of
payment for online shopping.

86
 CHART NO 4.1.18

MODE OF PAYMENT FOR ONLINE SHOPPING

NO. OF RESPONDENTS 100 89
90
80
70
60
50
40
30
17
20 13
10 5
1
0
CREDIT DEBIT NET CASH ON DD
CARDS CARDS BANKING DELIVERY (DEMAND
DRAFT)
PAYMENT MODES

87
 TABLE 4.19

WHAT KIND OF PROBLEM DO YOU FACED IN ONLINE SHOPPING

S.NO PROBLEMS NUMBER OF RESPONDENTS PERCENTAGE

1. Low Quality Of Goods 49 39.2%

2. Damage 25 20%

3. Wrong Products 20 16%

4. More Timing 31 24.8%

TOTAL 125 100%

SOURCE:- Primary data

INTERPRETATION:-

The above table depicts that the problems often faced by the respondent in online
shopping. The highest percentage 39.2 percent of the respondents faced the low quality of
goods in online shopping. 24.8 percent of the respondents are facing the more timing of
delivery of the product in online shopping, 20 percent of the respondents are facing the
damage of the product problem. The lowest percentage 16 percent of the respondents are
facing the wrong product problem in online shopping. So, most of the respondents are facing
the low quality of goods problem often in online shopping.

88
 CHART NO 4.1.19

PROBLEMS FACED IN ONLINE SHOPPING

NO. OF RESPONDENTS
50
45
40
35
30
49
25
20 31
15 25
20
10
5
0
LOW DAMAGE WRONG MORE
QUALITY PRODUCTS TIMING
OF GOODS
PROBLEMS

89
 TABLE 4.20

OVER ALL SATISFACTION WITH YOUR EXPERIENCE OF ONLINE SHOPPING

HIGHLY
HIGHLY DIS
S.NO QUESTIONS SATISFIED MODERATE DIS
SATISFIED SATISFIED
SATISFIED
Service
1. 75 29 16 2 3
Quality
Speed Of
2. 50 40 23 9 3
Delivery

3. Price 56 17 42 8 2

Level Of
4. 36 24 55 9 1
Experience

Level Of
5. 37 41 17 45 2
Satisfaction
Availability
6. Of Other 52 19 36 11 7
Websites
Availability
7. Of Varieties 50 39 24 5 7
Of Goods
Quality Of
8. 44 28 42 6 5
Information

90
 Chi-square Test
Meaning:
Chi-square test is one of the important nonparametric tests that is used to compare
more than two variables for a randomly selected data. The expected frequencies are
calculated based on the conditions of null hypothesis. The rejection of null hypothesis is
based on the differences of actual value and expected value.
The data can be examined by using the two types of Chi-square test, which is given below:

1. Chi-square goodness of fit test

It is used to observe that the closeness of a sample matches a population. The Chi-square test
statistic is,

With k-1 degrees of freedom.

Where O i is the observed count, k is categories, and E i is the expected counts.
2. Chi-square test for independence of two variables
It is used to check whether the variables are independent of each other or not. The Chi-square
test statistic is,

With degrees of freedom.

Where Oi is the observed count, r is number of rows, c is the number of columns, and Ei is
the expected counts.

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 Chi square test 1
Comparison between online shopping service and the customer satisfaction

Null hypothesis :( H 0)

There is no significant difference between online shopping service and the customer
satisfaction level.

Alternative Hypothesis :( H 1)

There is significant difference between online shopping service and the customer
satisfaction level.

LOS (Level of signification): 0.05% or 5%

Formula:

Inference:

Chi square (T.V) = 41.34 ≤ Chi square (Cal) = 214.9911

H o Rejected; H1 Accepted.

That means there is significant difference between online shopping service and the
customer satisfaction level.

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 Chi square test 2
Comparison between gender and the web site visiting by the respondents

GENDER
Amazon Flip kart Snap deal Olx Mythra Others
WEB
SITES
Male 19 15 3 4 1 10
Female 27 31 5 1 3 1
Others 2 1 0 1 1 0

Null hypothesis :( H 0)

There is no significant difference between gender and the web site visiting by the
respondents.

Alternative Hypothesis :( H 1)

There is significant difference between gender and the web site visiting by the
respondents.

LOS (Level of signification): 0.05% or 5%

Formula:

Inference:

Chi square (T.V) =18.31 ≤ Chi square (Cal) = 22.8474

H o Rejected; H1 Accepted.

There is significant difference between gender and the web site visiting by the
respondents.

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 Chi square test 3
Comparison between age and the amount spending by the respondents for online shopping.

Age
Below Rs. 1,000- Rs. 3,000- Rs.5,000- Above
1,000 3,000 5,000 10,000 10,000
Amount spending
Below 20 34 12 2 0 6
21-30 33 21 7 4 1
31-40 2 0 0 1 1
Above 41 0 1 0 0 0

Null hypothesis :( H 0)

There is no significant difference between age and the amount spending by the
respondents for online shopping.

Alternative Hypothesis :( H 1)

There is significant difference between age and the amount spending by the
respondents for online shopping.

LOS( Level of signification): 0.05% or 5%

Formula:

Inference:

Chi square (T.V) = 21.03 ≤ Chi square (Cal) = 21.7404

H o Rejected; H1 Accepted.

That means there is significant difference between age and the amount spending by
the respondents for online shopping.

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 CHAPTER V

FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS – MEANING

A finding is a discovery, especially by scholars or scientists. Finding is the act of

researching or analyzing something. If the dog digs up the hamster grave in the backyard,
better not to share his finding with the neighbours.

Findings are facts that have been found, especially by academics studying something. A
dietary study could have the finding that more people are avoiding gluten. An economic study
could have the finding that more people are working out of their home. An environmental study
could have the finding that a type of toxin is increasing. A dog’s finding would be a little less
academic. The word is usually plural, because it usually refers to more than one thing found.

The following findings are derived by the researcher from the simple percentage
analysis were as follows:

FINDINGS:

 It has been found that highest percentages 54.4 % of online shopping

respondents are female.
 It has been found that majority of 52.8% online shopping respondent mainly
lies at the age group of 21-30.
 It has been found that the most of the respondents are Unmarried (85.6%).
 It has been found that the above 80.8%of the respondents are belongs to
students occupation.
 It has been found that the most of the respondents are degree level of
educational qualification (72.8).
 It has been found that the above 65.6% of the respondents are living in nuclear
family.
 It has been found that the 38.4% of the respondents are getting below 10,000
rupees of monthly income.
 It has been found that most of the respondents are living in city side (48.8 %).

95
  It has been found that above 38.4 % of the respondent are visiting Amazon‘s
website to buy products at online.
 It has been found that the most of the respondents are getting the information
from their friends (33.6%).
 It has been found that highest percentages (39.2%) of the respondents are
buying electronically goods at online shopping.
 It has been found that the most of the respondents (38.4%) are shopping at
online monthly.
 It has been found that the highest percentage (59.2%)of the respondents are
spending Below 1 hour in online for shopping purpose.
 It has been found that the above 53.6% of the respondents are spending Below
1,000 rupees for online shopping.
 It has been found that the 44.8% of the respondents are mostly using online
shopping for 2-3 years.
 It has been found that the most of the 49.6%respondents are preferring the
online shopping for the reason of time saving
 It has been found that the 80%most of the respondent are using mobile phone
device for the online shopping.
 It has been found that the highest percentages 71.2% of the respondents are
using the cash on delivery mode of payment for online shopping.
 It has been found that the most of the respondents are facing the low quality of
goods problem often in online shopping (39.2%).

The following findings are derived by the researcher from the chi square test:

 There is significant difference between online shopping service and the

customer satisfaction level.
 There is significant difference between gender and the web site visiting
by the respondents.
 There is significant difference between age and the amount spending
by the respondents for online shopping.

96
SUGGESTIONS

 We can motivate the male gender to access the online shopping.

 We can encourage the all age group of people to shopping at online.
 We can betterment of the house hold products its help to married people to buy
product in online.
 We develop your promotion activity its helps to know the information about the
online shopping.
 Concentrate on each area of respondent to develop your business rural also.
 Fair communication with customers for betterment of your public relationship.
 Provide proper training to the customers to access of online shopping.
 Make your websites more users friendly. Customers should be motivated to use online
shopping.
 Provide more than one language like Tamil, English as well as delivery boy side for
increase the online shopper.
 Avoid secret profit from the customers. It can help you to get goodwill from this
society.

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 CONCLUSION

Online shopping is becoming more popular day by day with the increase in the usage
of World Wide Web known as www. Understanding customer’s need for online selling has
become challenge for marketers. In conclusion, having access to online shopping has truly
revolutionized and influenced our society as a whole. This use of technology has opened new
doors and opportunities that enable for a more convenient lifestyle today. Variety, quick
service and reduced prices were three significant ways in which online shopping influenced
people from all over the world. However, this concept of online shopping led to the
possibilities of fraud and privacy conflicts. Unfortunately, it has shown that it is possible for
criminals to manipulate the system and access personal information. Luckily, today with the
latest features of technology, measures are being taken in order to stop hackers and criminals
from inappropriately accessing private databases. Through privacy and security policies,
website designers are doing their best to put an end to this unethical practice. By doing so,
society will continue to depend upon online shopping, which will allow it to remain a
tremendous success in the future.

98