Project Report on Study of Online Consumer Buying Behavious
1. 1
Abstract:
E- Commerce implies online transaction e-commerce provides multiple benefits to the customer
in the form of availability of goods at lower cost, wider choice and saves time. The general
category of e-commerce can be broken down into two parts: e-merchandise: e-finance. E-
Commerce involves conducting business using modern communication instruments: telephone,
fax, e-payment, money transfer systems, e-data interchange and the internet.
Many companies, organizations, and communities in India are beginning to take advantage of the
potential of e- commerce; critical challenges remain to be overcome before e-commerce would
become an asset for common people.
Key words: E- Commerce, Buying Behaviour, India.
1. Introduction:
E-commerce implies online transaction. This
can range from ordering online through
online delivery of paid content, to financial
transactions such as movement of money
between bank accounts. This paper has
analyzed some of the challenges and
opportunities of e-commerce.
2. Significance of the Study:
Improvement of Business Transaction:
Electronic Commerce endeavors to improve
the execution of business transaction over
various networks.
Exploitation of New Business: Broadly
speaking, electronic commerce emphasizes
the generation and exploitation of new
business opportunities and to use popular
phrases:”generate business value” or “do
more with less”.
Enabling the customers: Electronic
Commerce is enabling the customer to have
an increasing say in what products are made,
how products are made and how services are
delivered.
Greater Economic Efficiency: We may
achieve greater economic efficiency and
rapid exchange with the help of electronic
commerce.
Effective Performance: It leads to more
effective performance i.e better quality
greater customer satisfaction and better
corporate decision making.
Increasing the Revenue: Firm use
technology to either lower operating cost or
increase the revenue. Electronic Commerce
has the potential to increase revenue by
creating new markets for old products,
creating new information-based products,
and establishing new service delivery
channels to better serve and interact with
customers.
3. Review of Literature:
Chen, L., Gillenson, M.L. and Sherrell,
D.L. (2002) “Enticing online consumers:
an extended International journal of Bank
Marketing, Vol. 26 No.5, pp. 511 -35.
Kumar, R. (2005) Research Methodology:
A step-by-step guide for beginners, 2nd
2. 2
ed., Sage Publications, Newbury Park,
C,A.
Over by, J.W. and Lee, E.J (2006) “The
effects of utilitarian and hedonic online
shopping value on consumer preference
and intentions”, Journal of Business
Research, Vol.59 No’s 10/11, pp. 1160-6.
4. Objectives:-
To know the online buying
behaviour of customers.
To unveil the problems encountered
by the customers in E-commerce.
To suggest measure for enhancement
of service quality, thereby leading to
customer satisfaction.
5. Hypothesis:-
E-Commerce hasn’t started
substantially influencing the
customer to buy online avoiding
retail shopping.
Gender doesn’t affect the buying
behaviour of the consumer.
Satisfied customers have negative
impact on the E-commerce.
6. Methodology and Database:
The study is based on primary data.
Information and data have been collected
from respondents through Google forms.
The study period is from July 3, 2015-
August 05, 2015. Simple statistical tools like
average, percentage, and ratios have been
widely used for analysis.
7. Challenges for E- Commerce:
Internet based e-commerce has besides great
advantages, posed many threats because of
its being what is popularly called faceless
and borderless. Some examples of ethical
issues that have emerged as result of
electronic commerce. All of the following
examples are both ethical issues and issues
that are uniquely related to electronic
commerce.
Ethical Issues: Jackie Gilbert Bette Anna
Stead (2001), reported the following ethical
issues related to e-commerce.
Privacy: Privacy has been and continuous to
be a significant issue of concern for both
current and prospective electronic commerce
customers.
Security Concerns: In addition to privacy
concerns, other ethical issues are involved
with electronic commerce. The internet
offers unprecedented ease of access to a vast
array of goods and services.
3. 3
I. Comparison of Gender and Occupation:
Entrepreneur
Working
Professionals
Home
Maker Students
Male(64) 4 27 0 33
Female(36) 0 11 9 16
Histogram: Distribution of Respondents based on Gender and Occupation
II. Platform Preference of the Demographic criteria:
Histogram: To represent the Platform Preference of the Demographic criteria
0
5
10
15
20
25
30
35
Entrepreneur Working
Professionals
Home Maker Students
Male(64)
Female(36)
0
5
10
15
20
25
Students W.P Home Makers Entrepreneurs
20
16
3 3
22
16
5
1
7 6
1 0
Website
Mobile App's
I & II
Occupation/
Platform Website
Mobile
App's I & II
Students 20 22 7
W.P 16 16 6
Home Makers 3 5 1
Entrepreneurs 3 1 0
4. 4
III. Reason to Shop Online:
Bar Chart: To know the main reason why Online Shopping is chosen
IV. Most Preferred Payment Options:
COD CC/DC
Net
Banking
COD &
CC/DC
COD & E-
VOUCHERS
COD &
NB
COD & NB &
CC/DC
NB &
CC/DC
67 8 10 6 1 1 3 4
Bar Chart: To know the most opted payment mode
0
5
10
15
20
25
30
11
30
4
16
0
4 4
2 3
0
5
3
5
3 3 2
10
67
8 10
6
1 1 3 4
0
10
20
30
40
50
60
70
80
5. 5
V. Problems Faced in the E-Commerce:
Delay In
Delivery(I)
Improper
Product
Information(II)
Fraudulent in
Payment(III)
More time
to access
the
site(IV) I & IV I & II II & IV I & II & IV
44 18 5 17 3 7 4 2
Pie Chart: To know the various Issues arises in E-Commerce
VI. Most Shopped Category:
Bar Chart: To identify the most shopped category
44
185
17
3
7 4
Delay In
Delivery(I)
Improper Product
Information(II)
Fraudulent in
Payment(III)
More time to
access the site(IV)
I & IV
I & II
5
17
3
38
7
0 0 1 1 3 1 1 1 1
7
1 1 1 1 1 1 3 1 2 1 1
0
5
10
15
20
25
30
35
40
6. 6
VII. Most Chosen Online Website:
Pie Chart: To know the leading market share holder of E-Commerce
VIII. Post Purchase Experience:
SiteResponse Average(I) Dissatisfied(II)
Highly
Dissatisfied(III)
Highly
Satisfied(IV) Satisfied(V)
Flipkart 16 1 0 3 30
Amazon 4 0 1 2 2
Snap Deal 2 1 2 0 1
Shop Clues 1 0 0 0 1
Bar Chart: To know the respondents post purchase experience and their Online vendor
50
8
2
6
01
1
8
13
1
5
1 1 1 1 1
Flip Kart(I)
Amazon(II)
Shop Clues(III)
Snap Deal(IV)
Myntra(V)
Yepme(VI)
eBay(VII)
I & III
I & V
I & IV
16
1 0
3
30
4
0 1 2 22 1 2
0 11 0 0 0 1
0
5
10
15
20
25
30
35
Average(I) DisSatisfied(II) Highly
Dissatisfied(III)
Highly Satisfied(IV) Satisfied(V)
Flipkart
Amazon
SnapDeal
Shop Clues
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IX. Relation between Post Purchase Experience and Issues in E-Commerce:
PPP/Issues
Delay In
Delivery
Improper
Product
Information
More Time
to Access
Fraudulent
In
Payment I & II
I &
III
I & II
& III II & III
Highly
Dissatisfied 1 0 0 2 0 0 0 0
Dissatisfied 1 3 0 0 0 0 0 0
Average 20 7 2 0 3 0 1 1
Satisfied 19 7 12 3 4 3 1 3
Highly Satisfied 3 1 3 0 0 0 0 0
Histogram: To relate the Post Purchase Experience and Issues faced
1
0 0
2
0 0 0 0
1
3
0 0 0 0 0 0
20
7
2
0
3
0
1 1
19
7
12
3
4
3
1
33
1
3
0 0 0 0 0
0
5
10
15
20
25
Delay In
Delivery
Improper
Product
Information
More Time to
Access
Fraudlent In
Payment
I & II I & III I & II & III II & III
8. 8
X. ANOVA TEST:
A) Test for Gender influence on buying:
Source of Variation SS df MS F P-value F crit
Rows 14.4 1 14.4 0.262295082 0.635528703 7.708647421
Columns 418 4 104.5 1.903460838 0.274157013 6.388232909
Error 219.6 4 54.9
Total 652 9
The F-critic value is more than the F-value which means the gender of the consumer affects the
buying behaviour of the consumer. Therefore the Null-hypothesis is rejected.
B) Test for that consumer don’t have negative impact after purchase:
Source of Variation SS df MS F P-value F crit
Rows 259.9365079 6 43.3228 4.67085 0.000814869 2.294601314
Columns 230.7936508 8 28.8492 3.11038 0.006545249 2.138228827
Error 445.2063492 48 9.27513
Total 935.9365079 62
The F-Critic Value is less than the F-Value, which clearly proves that consumers have negative
impact even after post purchase. So therefore the null-hypothesis is accepted.
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9. Limitations[Abstract] of the Study:
The present research study covers
only those who utilize online
shopping.
The present research study covers
only those respondents who
consented to our request to be a part
this research.
The findings and suggestions are
limited by the opinions and
knowledge of the respondents.
An interpretation of this study is
based on the assumption that the
respondents have provided true and
correct information.
The study has limitations with
respect to time, place and resources.
10. Future Scope of the Research:
An elaborate study may be
undertaken to compare the post
purchase experience and the issues
faced by the consumers.
A large study focusing on different
segments of customers can uncover
what new experience they got after
purchase and what needs are
unaddressed can be identified.
11. Findings:
1. Most of the online shopping done on
Clothing is by Females
Electronics is by Males
2. 50% online shopper’s choose Flipkart to
shop more rather than other sites.
3. Flipkart keeps their customers in the
satisfied comfort zone.
4. Almost 49% of the respondents are
Students
5. Price is the reason to make more online
shopping.
6. 69% of the purchases in done by Cash on
Delivery option.
7. Amazon is 100% ahead of Flipkart with
Highly Satisfied customers.
8. Personal Care items bought online is by??
Men!!
9. Online Shopping is based on the
demographic factors like age, occupation
and gender.
10. Though customers are satisfied with the
service they have few drawbacks.
11. 44% of customers feel that Delay in
Delivery of the product than the expected
date as major problem with the service
provider.
12. Suggestions:
Online retailers must work on
logistics in order to make sure that
delivery reaches on time.
Also to make sure product
information displayed is not fake.
Sites to work to reduce the buffering
time of the site since it may lead the
customer to choose alternate site.
10. 10
References:
I. Dr.Gagandeep Nagra, Dr.R Gopal
- An study of Factors
Affecting on Online Shopping
Behavior of Consumers - published
at: "International Journal of
Scientific and Research Publications
(IJSRP), Volume 3, Issue 6, June
2013 Edition".
II. Research on Online Shopping
Intention of Undergraduate
Consumer in China--Based on the
Theory of Planned Behavior By Dan
Su & Xu Huang
III. The Trend Of Online Shopping In
21St
Century: Impact Of
Enjoyment In Tam Model By Umair
Cheema, Muhammad Rizwan,
Rizwan Jalal, Faiza Durrani, Nawal
Sohail
11. 11
Appendix:
Demographic Information:-
Age:
1-15
16-30
31-50
Above 50
Gender:
Male
Female
Others
Occupation:
Students
Working Professional
Home Maker
1) What do you prefer for online shopping?
a) Website b) Mobile App’s
2) On which site do you shop the most?
a) Flip Kart b) Amazon c) Snap deal d) Shop Clues e) Others
3) Can you find your product easily in the chosen website?
a) Yes b) No
4) What makes you to choose online shopping?
a) Convenience b) Variety c) Price d) Delivery Options e) Payment Options
5) On a scale of 5 how much do you rank your convenient factor?
a)Convenience
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b) Variety
c) Price
d) Delivery Options
e) Payment Options
6) Which of the product category do you shop mostly in the online?
a) Consumer Durables b) Electronics c) Books d) Clothing e) Personal Care
f) Others
7) Which of the payment mode do you like with your service provider?
a) COD b) Online Payment c) E-Vouchers d) Net Banking
8) Which of the following do you think that make you choose for alternate vendor?
a) Price b) Delivery Time c) Payment Options
9) Among the leading E-commerce players whom do you think is giving exciting offers?
a) Flip Kart b) Amazon c) Snap deal d) Others
10) What is the recent offer you came across? -------------------------
Risk Factors in E-Commerce:-
11) How much do you rate your Online Service provider?
a) 0-5 b) 5-8 c) 8-10
12) What was your post purchase experience?
a) Highly dissatisfied b) Dissatisfied c) Average d) Satisfied
e) Highly Satisfied
13) Among the problems listed below which have you faced on your purchase?
a) Improper Product Information b) Delay in delivery c) Fraudulent in Payment
d) More time to access the site.
14) How likely you recommend a site to a friend, family members or colleagues
a) Not likely b) Neutral c) Likely d) Very Likely