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Awareness of E-shopping Amongst Women In Vadodara

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  • 1. 1 BBA Programme Faculty of Commerce The Maharaja Sayajirao University of Baroda Awareness of E-Shopping Amongst Women In Vadodara A Report of the Consumer Survey October 2012 Authors Tutors Bhavin Lalwani Dr. Anshu Surve Mihir Makwana Mr. Parth Dave Mohammed Aatif Ms. Shilpa Parmar Rutu Mehta Divya Mistry
  • 2. 2 Awareness Of E-Shopping Amongst Women In Vadodara By: Roll No. Bhavin Lalwani 81 Mihir Makwana 82 Mohammed Aatif 83 Rutu Mehta 84 Divya Mistry 85 Class: F.Y. BBA – 2012-2013
  • 3. 3 Acknowledgement We express our sincere thanks to all the respondents who supported us wholeheartedly and willingly to make our research a success. The contribution of their valuable time to complete the survey has been very much appreciated. We would like to thank our tutors who helped and guided us at every step in this research, right from framing the questionnaire to making the final report. Last but not the least; we would like to express our gratitude to our friends, classmates and family for their mutual support in accomplishing the survey.
  • 4. 4 Preface The trend of shopping on the internet has been constantly increasing all over the world. It was in 1979 that Michael Aldrich invented e-commerce and since then it is still continuously. India has the third largest number of internet users, just next to China and America, but the internet penetration rate is very low as compared to others countries in the world. This survey was conducted to know about the awareness, opinions, preferences about the online shopping trend amongst the women in Vadodara, Gujarat. Vadodara is known as the Cultural Capital of Gujarat. The varied mixture of ethnic groups makes it one of the most cosmopolitan cities in India. Primary data was collected in administering the survey. Through the survey we found that genuineness, guarantee and price are the primary factors women consider while shopping online.
  • 5. 5 Contents Title Page No. 1. Introduction 6 2. Research Purpose 7 3. Hypothesis 8 4. Respondents 8 5. Research Method 9 6. Results 10 7. Analysis 19 8. Conclusion 23 9. Webliography 25
  • 6. 6 1. Introduction The internet has changed the way people shop. Earlier it was just going to the market or the main area of the city to shop. After the dotcom boom and the rapid rise of the use of the internet, people can now shop online without leaving their comfort zone from their home. Not only internet is used for communication, but it is used for varied purpose like reading news, education, entertainment, and surfing and last but not the least for shopping. Certain characteristics of the internet make shopping convenient to some consumers, while some people find it risky to shop online. When shopping online, the customers browse through various categories of goods on the website, or sub categories, if the website is a specialty for particular good e.g., an online book store only selling books divides the website into fiction, non- fiction and so on. But now-a-days sites like Amazon.com have developed from a mere book store to an online giant selling almost everything from books to electronics and music to clothes. After clicking a product consumers can read the description and see the photos of the products after which he
  • 7. 7 adds the product to his virtual cart. At the end, he checks out by finally having a summary of the cart and payment. There are various modes of payment available like credit card, debit cards, net banking, paying through gift vouchers. Also there is Cash on Delivery option, which is very unique to the Indian e-commerce websites. 2. Research Purpose Internet shopping in India is increasing day-by-day and the popularity is even increasing. Many people from various tiers of cities shop online to save time and enjoy the precious time with family and friends. But do the women really shop online? Are they aware of the online shopping? The research aims to bring light to the awareness of this ongoing trend amongst the women in Vadodara. It aims to bring out the tastes and preferences of shopping amongst women of various age groups and targets to identify various factors women consider while shopping online. Also, the research intends to know the satisfaction from internet shopping and the prime reason why do some women not shop online. The research was carried out by filling up the questionnaire by women of different age groups and then an analysis was carried out to know the real picture.
  • 8. 8 3. Hypothesis We hold the hypothesis that though internet shopping has increased in India a lot; it has still got a more way to go. We assume the women especially like traditional shopping rather than internet shopping because they want to touch and try various products before the use them. They specially find traditional shopping as a social activity where their friends or relatives come together to shop and have a nice time. We suppose that women still feel insecure about giving credit card details online so they prefer to shop in stores only. Also, we have an assumption that the women not being able to use internet as efficiently as most men do is one of the reason not to shop online. According to our hypothesis, we assumed that there will be much difference in awareness among various age groups. 4. Respondents For the research, women in various geographic areas of Vadodara of various age groups were selected to bring out a clear picture of the research. From housewives in their 50’s and
  • 9. 9 40’s to students in their teenage or early youth were surveyed. Also, working women too have been surveyed to know their opinions. The data presented in the results is of the respondents only and is free from any bias and misinformation. 5. Research Method For our research, we adopted the method of questionnaire to be filled up by the respondents. The questionnaire was divided into personal details of the respondents followed by the questions. Various kinds of questions ranging from awareness to knowing the preferences were asked to know the results. The questions were framed to know:  The usage of internet  Awareness of e-shopping  Taste and preferences  Shopping Habits  Opinions about internet shopping Thus the questionnaire was aimed to bring out the whole picture of the purpose for which the research was being conducted.
  • 10. 10 6. Result Questionnaire - Collected Data: Demographics: Age and occupation were included to find if there were many differences about awareness, opinions and preferences. Questions pertaining to the age group and the occupation of the respondents provided the following data:  Table 6.1: Age Group Age Group Percentage of Respondents Below 20 years 25 20-30 years 41.66 30-40 years 0 40-50 years 25 Above 50 years 8.33 Total 100  Table 6.2: Occupation of The Respondents: Occupation Percentage of Respondents Student 50 Employee 8.33 Housewife 41.67
  • 11. 11 Total 100 Background about Internet Usage: We wanted to find whether they have a computer or laptop with internet or not and if yes, what purposes they use it for and their efficiency. 100% of the respondents had internet connection at their homes. The following data was collected about their usage:  Table 6.3: Purposes for Using Internet: Purpose of Using Internet Percentage of Respondents Communication/Networking 58.33 Surfing 66.67 Shopping 33.33 Work/Business 25 Education 66.67 Gaming 25 News/Magazine 16.67  Table 6.4: Proficiency in Using Internet: Proficiency Percentage of Respondents Beginner 33.33 Intermediate 66.67 Expert 0
  • 12. 12 Total 100 Awareness Data as to how the respondents came to know about internet shopping, their awareness regarding different kinds of sites was collected. 100% of the respondents say that they are aware of the Cash on Delivery option, which is unique for the Indian E- Commerce Market. Awareness of other things is as follows  Table 6.5: Source of Knowledge About E-shopping: Source Percentage of Respondents Newspaper 0 Radio 0 Internet 50 Friends/Relatives 50 Others (TV) 0 Total 100  Table 6.6: Knowledge About Different Sites: Site Name Percentage of Respondents who have heard about the site Flipkart 100 Myntra 91.67
  • 13. 13 Indiamart 66.67 Firstcry 16.67 Crossword 66.67 Zoomin 33.33 Bookmyshow 58.33 IRCTC 66.67 Makemytrip 100 Amazon 75 Wal-Mart 75 Preferences and Habits After knowing how much aware are they about internet shopping, we also found out what are their preferences and spending habit on the internet. The results are as follows: Preference to online shopping: Only 25% of the respondents say they prefer online shopping to traditional shopping.  Table 6.7: Frequency of Shopping Online:: Frequency Percentage of Respondents Never 8.33 Rarely 41.67
  • 14. 14 Occasionally 33.33 Frequently 16.67 Total 100  Table 6.8: Products Respondents Shop for: Products Percentage of Respondents Who Buy Online Groceries 0 Cosmetics 50 Books 50 CD/DVD 25 Music 16.67 Toys 8.3 Furniture 0 Clothes 66.67 Electronics 16.67 Movie/Play Tickets 33.33 Air/Rail Tickets 66.67 Baby Products 0  Table 6.9: Most Used Websites: Name of Website Percentage of Popularity Myntra 10 Flipkart 25 Makemytrip 10 Jabong 10
  • 15. 15 IRCTC 10 Others 35 Total 100 Comparing Prices on Other Websites: 88.33% of the respondents compare the prices of a product with that of the prices on any other website, prior to their purchases.  Table 6.10.: Preferred Mode of Payment: Mode of Payment Percentage of Respondents Credit Card 33.33 Debit Card 16.67 Internet Banking 25 Cash On Delivery 41.66  Table 6.11: Factors Considered To Shop Online: Factors % age of respondents who consider it important Price 41.67 Availability 41.67 Genuineness 58.33
  • 16. 16 Delivery Time 33.33 Customer service 25 Reputation Of Company 16.67 Guarantee/Warranty 41.67 Description Of Goods 25  Table 6.12.: Maximum Amount Willing to Spend on Online Purchases: Maximum Amount %age of Respondents Rs. 1000 8.33 Rs. 5000 33.33 Rs. 10,000 25 Rs. 15,000 16.67 Rs. 20,000 or more 16.67 Total 100  Table 6.13. :Maximum Amount Willing to Pay for Shipping Charges Maximum Amount %age of Respondents Rs. 50 8.33 Rs. 100 8.33
  • 17. 17 Rs. 500 58.34 Rs. 1000 0 Order when shipping is free 25 Total 100 EMI Option: Only 41.67% of the respondents said that they would go for an EMI option, if available. Opinions The opinions of the respondents regarding various aspects of internet shopping were sought for the research purpose. After making them fill the questionnaire, the following results about the opinion were found: Convenience Charges: Some websites charge convenience charges for booking or shopping online. Respondents were asked if these charges were too high. 66.67 respondents said they were too high. Satisfaction: 83.33% of the respondents got satisfaction after shopping online. Bad Experience: 41.66% of the respondents said they had encountered a bad experience while shopping online.
  • 18. 18 Recommendations: 91.66% of the respondents said they are likely to recommend their favorite sites to others as well. Intention to Continue Shopping Online: 91.66% of the people investigated intended to shop online in the future. Reason for Not Shopping Online: Respondents were asked as to why some people did not shop online. The following are the reasons the respondents believe why other people do not shop online.  Table 6.14: Reason Respondents Believe Why People Don’t Shop Online Reason Percentage of Respondents Who Believe This is the Reason Risk of Credit Card Transactions 66.67 Difficulty in Returning Products 8.33 Not Skillful with Internet 16.67 Lack of Trustworthiness of Vendor 25 More Complex Than Traditional Shopping 16.67 Not Being Able to Touch Products 8.33 Prior Bad Experience 8.33 Views regarding online shopping: Respondents were asked to give views on different aspects relevant to the topic of online shopping. The following table shows their views in the
  • 19. 19 respective matter and their acceptance rate in % of respondents agreeing or disagreeing  Table 6.15.: Views Regarding Online Shopping. Views Regarding Online Shopping Agree Disagree Saves Time 100 0 Difficult 25 75 Risky 58.33 41.67 More Popularity in Future 75 25 More Choices 75 25 Good Description of Goods 66.67 33.33 Reduces Monetary Costs (parking, petrol etc.) 75 25 First choice in some products 66.67 33.33 7. Analysis The results imply that the students are more aware than the housewives or employees in the matter of e-commerce. The
  • 20. 20 younger generation is more open to accept e-shopping and also shows more online shopping than the older generation. The usage of the internet shows that the internet is mostly used for surfing and education with 66.67% respondents using internet for that purpose. The least usage is for reading news or magazine online. From the results, it known that most of the users are intermediate (66.67) and no one is expert. The source of the knowledge regarding E-Shopping is equally shared by internet and friends/relatives. That implies every respondent comes to know about the internet shopping though a friend or the internet itself. The awareness of the cash on delivery option is full with 100% respondents being aware of that thing Awareness Regarding Various Sites: Flipkart and Makemytrip emerge as the most popular sites with 100% respondents being aware of it, followed by Myntra, 91.67%.
  • 21. 21 Indiamart, India’s first e-commerce website is just known to the younger generation with 66.67% respondents aware of it. The websites of the Western world like the giants Amazon and Wal-Mart are known by 75% of the respondents, again mostly the younger ones. Even the Indian Government’s railway website, IRCTC is known only by 66.67% of the respondents. Online movie ticket site, Bookmyshow is only know to 66.67% respondents Specialty sites are not so popular with women of Vadodara. Zoomin, the specialty site that sells just camera and other things relating to photos and printing is known by just 33.33% of the respondents. Even lesser than that, Firstcry.com, a specialty site for baby products is known just by 16.67% of the respondents. Preferences: From the results of the questionnaire, it is known that mostly the respondents go for online shopping rarely or occasionally. 41.67% of the respondents rarely go for online shopping, while 33.33 % go occasionally. The percentage of frequent online buyers is just 16.67
  • 22. 22 When purchasing online, air/rail tickets and clothes are the most bought commodities (66.67% respondents buy those), followed by cosmetics and books at 50%. Women rarely go for shopping online for electronics or music. Also, women never go for groceries, furniture or baby products online. For shopping online, Flipkart again emerges as the favorite website for the respondents to shop online with 50% of popularity, followed by Myntra, Makemytrip, Jabong and IRCTC at 10% each. Other website account for 35%. When shopping online, the most preferred mode of payment is cash on delivery, with 41.66% of the respondents opting for that, followed by credit card at 33.33% and internet banking at 25%. Debit card is the least popular payment method with just 16.67% preferring it. While enquiring about the factors respondents consider while shopping online, genuineness emerges as the top criteria with 58.33% respondents considered it. Next are guarantee/warranty, price and availability at 41.67 %. Respondents give least importance to reputation of company at just 16.67%. Opinions Most of the respondents think the convenience charges levied by some sites are very high. Most of the customers are satisfied when they shop online.
  • 23. 23 41.66% of the respondents said they had encountered a bad experience while shopping online. Also, the likelihood of respondents to recommend their favorite site to others is very high with 91.66% respondents willing to recommend their favorite site. Also, the respondents are going to continue shopping online, with 91.67% respondents agreeing. 8. Conclusion From the survey conducted, we can conclude that the women in Vadodara are aware about the online shopping trend, but not too much. Even though the women are aware about online shopping, they rarely shop online. They give more priority to traditional shopping and go for online shopping when they are recommended by their friends and relatives. The younger generations of women, mostly students, are more aware are more likely to shop online for commodities like clothes and air/rail tickets. The women give more importance to the genuineness of the products and websites rather than the customer service,
  • 24. 24 reputation of company or the description of goods while buying online. The women get high satisfaction from online shopping and are likely to recommend the websites to their friends and family. Also, the women intend to continue shop online. Our hypothesis that that women still prefer traditional shopping hold true but the assumption that women do not buy online because they are not skillful is using internet is false. Also like our hypothesis, the women of different age group showed different results. Thus, we can conclude by saying that the awareness of e- shopping amongst women in Vadodara is not too high and not too low, but it is gaining popularity not amongst the younger generation, but also the older generations
  • 25. 25 9. Webliography Online Shopping Experience Report, June 2011 http://www.slideshare.net/GreenHONCHOS/online-shopping- experience-survey-report-june-2011 Consumer Behavior in Online Shopping, http://www.scribd.com/doc/50587452/www-unlock- pdf-com-FULLTEXT01