The project was prepared with lots of hard & smart work. By the group of 5 members.

1. Consumer Buying Behavior
THAKUR INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
A Study on Impact of Online Advertising on
consumer buying behavior for mobile phone
Presented To: Prof. Yesha Mehta
Batch: PGDM (Marketing) 2014-16
Submitted By:
ACKNOWLEDGEMENT
TEAM MEMBERS ROLL NO
Vaibhav Patil 65
Mihir Shah 80
Roshan Shanbhag 85
Akruti Shewani 93
Amit Soni 99
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2. Consumer Buying Behavior
We wish to express our sincere gratitude to Prof. Yesha Mehta for providing us to do project work
on “A Study on Impact of Online Advertising on consumer buying behavior for mobile phone” and
sincerely thanks for their guidance and encouragement in carrying out this project work.
We also wish to express our gratitude to the other faculty members who rendered their help during
the period of our project work. And we like to extend a sincere thanks to the IT Laboratory staff
for their assistance and support and providing updated software and running through whenever is
needed.
Last but not the least; we thank Dr. Subhash Kulkarni, director of Thakur Institute of Management
Studies and Research, for giving us the opportunity to embark upon this project.
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Executive Summary
The purpose of this research is to identify the factors affecting the buying behavior of consumers
towards buying mobile phones online and to study what factors they consider before buying
mobile phones online. In order to interpret the objectives, online survey was conducted and data
collected by primary sources. It was found that the young Indian consumers are very much tilted
towards buying mobile phones online. They feel that buying mobile phones online has several
benefits and it also acts as a one stop shop when compared to retail stores. Their preference is more
towards the choice of availability of colors. Flipkart being the most preferred site has to constantly
keep up on their reputation but Amazon.com has to work upon to get the potential consumer which
was seen to be 46%.
Limitation of the study:
• The sample size taken is less and limited to familiarity behavior not random respondents.
• Sample size doesn’t exactly represent the population.
• The study is restricted only to online questionnaire
• The information of the study is on the basis of the information provided by the respondents.
• Lack of trained interviewer to clarify and probe can possibly lead to less reliable data.
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Table of Content
Particulars
1. Background of study
1.1 Introduction
1.2 Objectives
1.3 Literature Review
2. Methodology
2.1 Research Design
2.2 Sample Size
2.3 Data Collection
2.4 Data Analysis
3. Conclusion
4. Appendices
5. References
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INTRODUCTION
The introduction and implementation of internet technologies has created new market for
manufacturers and service providers and also has provided new arena for innovative marketing
strategies by the professionals. There are various reasons of shifting the customers buying patterns
towards online retail shops. The facility of comparing your product with competitive products on
the basis of price, color, size and quality is one of the biggest benefits of online shopping.
Moreover the product remains at its place even you purchase it. It looks hilarious but this is also
one of the most significant reasons reported by the online shoppers. The other popular names for
online shopping are virtual store, e-shop, web-shop, internet shop, web-store and online storefront
etc. These days Mobile commerce or m-commerce is also one of the popular means of shopping.
The facilities of various coupon and discount scheme are also fascinating the customers in online
shopping.
In our time, internet is acknowledged as noteworthy valuable communication channel taxing with
the traditional ones, such as walkie-talkie, magazines, and small screen. From the past few years,
on-line shopping is the prevalent way of doing dealings in the field of E-Business and is
unquestionably going to be the future of shopping in the human race. The increasing consumer
base, principally of youths, is playing a significant role in the online shopping. Through this
means, the shopper can buy the product from wherever he wants. Because of wide communication
network e-commerce has become the new mediator between the companies/manufacturers and
their customers. The growth rate of India’s e-commerce industry is fascinating. It was reported as
88% in 2013 which is a clear contrast picture of the slower economic growth of India. The rising
inflation rate in recent years has not slipped away the performance of online shopping industry in
India. If one tries to identify the cause of this growth rate then it will not take many efforts to find
the answer. The more innovative ways of online payment and increasing internet penetration has
given a paradigm shift and push to this industry. The increase of internet technology in India has
colossal potential. It will trim down the cost of product and service delivery and lengthen
geographical boundaries in bringing buyers and sellers together. The boost in use of internet by the
customers in younger age bracket in India has provided a promising outlook for online retailers.
The majority of the companies are operating their on-line portals to put up for sale (of both
products & services), to shrink marketing costs, and subsequently plummeting the prices of their
products and services to continue their position in the future market.
Earlier the Indian customers were more attracted towards electronic gadgets and mobile phones for
online shopping but now the products indicative of lifestyle, viz., watches, apparels, perfumes,
beauty products are also in high demand through the medium of online shopping. The market is
also developing for books, jewellery, home appliances and kitchen appliances etc. The following
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facts can help the academicians and researchers to understand the size and performance of Indian
e-commerce industry.
• In 2013, the size of the market was $ 16 billion which was $ 8.5 billion in 2012.
• The growth rate in metro cities of India is expected to be much higher than the other cities
of the country.
• The e-commerce industry is expected to be of $56 billion by 2023. But contradict to it,
another forecast supported by IANS, the e-commerce market is expected to grow by $ 50-70
billion by 2020.
Companies are using the internet to put across and commune the information. Simultaneously it
helps the companies to give an idea about their products and instantly getting the feedback of
customer’s fulfillment to get stimulated turnover for future. In India the growth of the e-commerce
industry is tremendous. Considering the latest updates from IBN 7, the number of on line shopping
have crossed 600 in the year 2013 which was counted as only 100 in 2012.
If the Internet is anything to go by, India's technological and economic growth has moved into the
top gear.
With more India's online shopping registering a phenomenal 100 per cent annual growth, many
retail chains and consumer durable companies are joining the Web bandwagon to tap the e-
shopping market.
The online shopping industry in India is fast catching on, not just in the larger metros but also in
the smaller cities. At present the market is estimated at Rs.46, 000 crore and is growing at 100 per
cent per year. According to Google, India has more than 100 million Internet users, out of which
around half opt for online purchases and the number is growing every year. With such a large
market size, companies, right from retail shops to consumer goods, are entering the Web space to
attract potential customers.
Even traditional retailers like Shoppers Stop, Westside and Pantaloons are looking at the online
shopping space for growth.
According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the
size of the online retail industry is expected to touch Rs.7, 000 crore by 2016, up from Rs.2, 000
crore now, at an annual growth rate of 35 per cent.
According to industry leaders, portals offering daily deals and discount offers with good delivery
services attract the largest number of online shoppers.
The companies that provide daily deals or discount offers are doing brisk business. People are
looking for value shopping that saves their money as well as time. The company's Synergy
discount cards offer 15-90 per cent discounts on deals from about 2,000 dining, movie and retail
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chains in various cities - for movie tickets, dining, and hospital bills or for shopping for local
brands.
The customer behavior is changing dramatically. People are not only using the Web to book air
tickets and movie tickets but also do not hesitate in placing orders for mobiles, laptops and other
consumer electronics and home appliances.
Seeing this bold consumer behavior, more companies are collaborating with such daily deal and
discount sites. All the top consumer electronics and home appliances companies are listed with
different ecommerce sites such as amazon.com and flipkart. In the growing competition space
companies with good delivery services score points over others.
Keeping in mind these growing potential, not just large brands but even general retail chains are
upgrading their sites for ecommerce, making it more convenient for customers to place online
purchase orders.
According to eBay, Indian online shoppers remain brand savvy, even when they are shopping
online. The eBay India Census has found that brands such as Sony, Nokia, Samsung, Apple and
Reebok continue to top buyers' charts.
Category-wise lifestyle products, such as cosmetics, jewellery, watches, fashion products and
fitness equipment contribute over 45 per cent to eBay's sales in India.
Leading Online Portals to buy mobile phones in India:
• Flipkart.com
• Amazon.com
• Snapdeal.com
• Junglee.com
• E-Bay
• Company’s own websites (Samsung.co.in, Mi.com and so on)
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OBJECTIVES
Research Objective:
1. To identify the factors affecting the online purchase behavior of the consumers.
2. To study the consumers attitude and behavior towards mobile phone.
3. To study the consumer perceptions about online buying of mobile phone.
REVIEW OF LITERATURE
Compared to physical stores online stores have many advantages: They are convenient and time
saving and no more travelling and waiting in lines is needed. They are open 24x7 and accessible
anytime and anywhere. These stores provide customers with free and rich information about
product and services. They also have some online tools to help customers compare and make
purchase decisions among various products & services. Hoffman and Novak (1996) indicated that
interactivity is the key distinguishing feature between marketing communication on the Internet
and traditional mass media. Today online consumers have more control and bargaining power than
consumers of physical stores because the Internet offers more interactivities between consumers
and product/service providers as well as greater availability of information about products and
services. Geissler and Zinkhan (1998) claimed that the Internet shifted the balance of power in
favor of consumers as it became very easy for them to make shopping comparisons and evaluate
alternatives without being pressured by salespeople. Online stores reduce transaction costs and
have advantage for both consumers and vendors. However, online stores also have disadvantages
compare to brick-and-mortar stores. In online stores customers can’t have any sense about the
product they see in the internet (seeing, touching, tasting, smelling, and hearing) as they search for
and purchase products. In online stores, consumers may develop low trust and perceive elevated
risk highly because of the lack of face-to-face communication. Although this difficulty can be
reduced by using certain software tools available in the marketplace. Norazah Suki and Norbayah
Suki (2009) conducted a study on ‘Cellular Phone Users’ Willingness to Shop Online’. The study
suggested that marketers should propose more on attractive promotion such as advertisements or
discounts through the web.
Chowdhury and Ahmad (2011) conducted a study on ‘factors affecting consumer participation in
online shopping in Malaysia’. The major focus of the study was to describe the relationship
between independent variables and dependent variable using Pearson’s correlation method. The
limitation of this study was that it only used four variables (ability, benevolence, integrity, and
trust) in explaining the consumer participation but did not take other important variables into
account (e.g., cost switching vendors and the presence of third party. The study provides a useful
insight on the significant role of trust in students for online shopping. Yulihasri, Islam and Daud
(2011) conducted a study on ‘Factors that Influence Customer’s Buying Intention on Shopping
Online’. The variables that were tested included usefulness of internet shopping, ease of use,
compatibility, privacy, security, normative beliefs, self-efficacy, attitude and student’s buying
intention. Pearson correlation analysis provided statistical information about the relationship of
each independent variable with dependent variables. It was studied that web advertising favorably
influences the purchasing of a company’s products. Karim (2013) conducted a study on online
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shopping behavior of customers and documented that online vendors can assure their consumers
for transaction security and avoid long delays in completing online orders and the hassle of
returning goods for better online shopping experience. Morris (2013) conducted a study on ‘More
Consumers Prefer Online Shopping’ Shoppers increasingly want what’s called a “seamless
omnichannel experience,” meaning one in which retailers allow them to combine online and brick
and mortar browsing, shopping, ordering and returning in whatever combo they would like.
With the increasing size, more demand by youth and change in the behavior of youth towards
shopping has clearly indicated a huge market is available to the incumbents and existing
performers. And at this stage it is important to understand the buying behavior of Indian customers
towards online shopping which is mandatory for a great marketing strategy by the players in this
industry. The size and growth rate of this industry was never like this before. And considering all
this, the present study has made an attempt to understand the online shopping behavior of Indian
customers.
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METHODOLOGY:
RESEARCH DESIGN
A research design is the "blue print" of the study. The design of a study defines the study type
(descriptive, co relational, semi-experimental, and experimental, review, meta-analytic) and sub-
type (e.g., descriptive-longitudinal case study), research question, hypotheses, independent and
dependent variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. Research design is the framework that has been created to seek answers to
research questions.
The research design we have selected is exploratory research design. Exploratory research design
is defined as “Investigation into a problem or situation which provides insights to the researcher.
The research is meant to provide details where a small amount of information exists. It may use a
variety of methods such as trial studies, interviews, group discussions, experiments, or other tactics
for the purpose of gaining information”.
Sample Unit:
Sample in the study are mostly youth as can be seen from the data that cumulatively 90 % of the
respondent are in the age bracket of 15 to 30. Convenience samples are drawn from Kandivali
(East). Our definition of convenience samples includes only one dimension that is easy access to
the sample units otherwise it was random selection of individuals. This segment of population was
selected due to their adoption of online buying.
The questionnaire had the following dimensions:
• Demographics of the respondent such as gender and age.
• Behavior of visiting online sites such as frequency of visits, preferred e-commerce sites.
• Factors affecting selection of e-commerce website.
• Various attributes for consumer such as availability of colors, quality, potential shipment
problems, security for credit/debit card, retailer return policies, shipping costs, potential
loss of privacy, retailers name and online reviews.
Sample Size:
Since it is an exploratory study, a sample size of 100 thought to be an adequate one. Accordingly
100 respondents from the target population were approached to fill in the online questionnaire
which was created with the help of qualtrics.com.
Data Collection:
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Data is collected by primary sources. A well-structured questionnaire prepared to collect data from
respondents related to demographic, behavior and factors affecting for selection of fast food.
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DATA ANALYSIS:
How many hours in a week do you spend on the internet?
Findings: The percentage of consumers consuming spending more than 16 hours in a week is the
highest; i.e.53%. This reveals that people generally spend most number of hours on the internet &
people spending the least time (i.e.; 1 to 5 hours) follow them.
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What are the purposes for which you use the internet?
# Answer Response %
1 Browsing 71 70%
2
Social
Networking
83 81%
3
Information
gathering
71 70%
4 Shopping 39 38%
5
Others (Please
Specify)
7 7%
Findings: We found out that maximum numbers of people use the internet for social networking
and browsing and information gathering follows it. The social networking sites such as Facebook
are very much used by the people.
To you mobile phone is (the most important/close to you) [Any 1]…………………………
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Findings: The major finding was that for 50% of sample size the mobile phone is just a
technology and 24% people are addicted towards mobile phones. 13% of people find the mobile
phone as a leisure instrument. Only 8% of people feel that for them mobile phone is just a
corporate companion.
From where do you buy mobile phone?
Findings: People prefer buying from offline mode ie; 69% of the sample. Whereas 32% people
preferred buying from online stores and the third option given to them was others and we made
them to specify it and we got responses in the form of Brand outlet, Authentic Seller, Village shop,
Magnet and Vijay Sales
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How important are the following factors for you while buying Mobile / phone online? / (On the below
parameters…
Statistic
Availability
of Colors
Qualit
y
Potential
Shipment
Problems
Security for
Credit/Debit
Card
Retailer
return
policies
Shipping
costs
Potential
loss of
privacy
Retailer
s Name
Online
reviews
Min Value 1 1 1 1 1 1 1 1 1
Max
Value
5 5 5 5 5 5 5 5 5
Mean 3.37 4.52 3.41 3.97 3.98 3.34 3.81 3.23 3.92
Variance 1.54 0.96 1.63 1.85 1.66 2.15 1.58 2.04 1.34
Standard
Deviation
1.24 0.98 1.28 1.36 1.29 1.47 1.26 1.43 1.16
Total
Responses
102 102 102 102 102 102 102 102 102
Findings: The most important factor while purchasing a mobile phone online was found to be
quality followed by retailer returns policies and rest parameters following it closely. Also the
retailers name played the least important role for a consumer to buy online.
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From which e-commerce site are you likely to buy the mobile phone?
# Answer Response %
1 Flipkart 58 57%
2 Amazon.in 22 22%
3 Snapdeal 7 7%
4
Company's Own
Website
8 8%
5
Others (Please
specify)
7 7%
Total 102 100%
Findings: More than half of the people i.e.; 57% preferred to buy mobile phone from Flipkart
followed by Amazon which is 22%.
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How likely are you to buy a mobile phone online in future?
Findings: People who are likely to buy in the future are 24% where as 12% of population is very
sure that they wouldn’t be purchasing mobile phones online in future. The people who are in doubt
(i.e.; 46%) are the potential customers for the e-commerce sites selling the mobile phones.
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CONCLUSION
As per our findings we come to a conclusion that in India there are many people who are still
prefer to buy through offline mediums. But also we could find out that there are 45% of people
who can be the potential buyers of mobile phones online in the future and this major chunk of
population belongs to the age group of 18-30. While coming to the most important attribute that
makes a consumer choose a mobile phone to buy online are quality, security of credit/debit cards,
retailer return policies and so on. As per the research consumers usually spend more than 15 hours
a week on the internet and the major purpose was found out to be social networking and
information gathering. The most preferred site is flipkart (which is more than 50%) for buying
mobile phone online.
A Study on Impact of Online Advertising on
consumer buying behavior for mobile phone
Dear friends we seek your response for a research study on consumer perception about fast food
in India that we are working on it. Your time and co-operation through expressing your opinion is
crucial for successful completion of the study.
CBB regarding online purchases for Mobile
Q1 Personal Details
Name
Age
Q Email Id
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19. Consumer Buying Behavior
Q2 Gender
 Male
 Female
Q3 How many hours in a week do you spend on internet?
Q4 what are the purposes for which you use the internet?
 Browsing
 Social Networking
 Information gathering
 Shopping
 Others (Please Specify) ____________________
Q5 how many times have you used the web to purchase a product?
Q6 to you mobile phone is (The most important/close to you) (Any 1)
 Addiction
 Technology
 Leisure Instrument
 Corporate Companion
 Others (Please Specify) ____________________
Q7 from where do you buy mobile phone?
 Online
 Offline
 Others (Please Specify) ____________________
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Q8 How Important are the following factors for you while buying Mobile phone online? <Div> (On the
below scale 1 is the least important and 5 is the most important) </div>
1 2 3 4 5
Availability of
Colors     
Quality
    
Potential
Shipment
Problems
    
Security for
Credit/Debit
Card
    
Retailer return
policies     
Shipping costs
    
Potential loss
of privacy     
Retailers Name
    
Online reviews
    
Q9 from which e-commerce site are you likely to buy the product?
 Flipkart
 Amazon.in
 Snapdeal
 Company's Own Website
 Others (Please specify) ____________________
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Q10 How likely are you to buy a mobile phone online in future?
 Very Unlikely
 Unlikely
 Somewhat Likely
 Likely
REFRENCES
• www.qualtrics.com
• www.google.com
• www.search.proquest.com
• IBM SPSS Software
• Dion global insight
• Online buying behaviour of customers: A case study of northern India (Mehta,
Versha; Kumar, Vinod. Pranjana 15.1 (Jan-June 2012)
• Online advertising and its impact on consumer buying behaviour. (Gaurav Bakshi & Dr.
Surendra Gupta)
• Valuable Internet Advertising and Customer Satisfaction Cycle (IJCSI International Journal
of Computer Science Issues, Vol. 9, Issue 1, No 2, January 2012 ISSN (Online): 1694-
0814)
• The Impact of Advertisement and Consumer Perception on Consumer Buying Behaviour
(International Review of Social Sciences and Humanities Vol. 6, No. 2 (2014), pp. 55-64
www.irssh.com ISSN 2248-9010 (Online)).
• Impact of Online and Conventional Advertisement on Consumer Buying Behaviour of
Branded Garments. (Asian Journal of Management Sciences & Education Vol. 4(1)
January 2015).
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