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Capstone final report new

  1. 1. CAPSTONE PROJECT REPORTInternet Shopping and Buying Behavior of CollegeStudentsPrepared ByDeepankar DohareKHR2011PGDM21F133PGDM 2011-13Under the Guidance ofProf. Sudipto ChakrabortyITM Business SchoolPlot 25 & 26, Institutional Area, Sector 4,Kharghar (E), Navi Mumbai - 410 210
  2. 2. 1CERTIFICATEThis is to certify that the Project Work titled “Students’ Online Buying Behaviour” is a bonafidework carried out by Deepankar Dohare, a student of PGDM program 2011 – 2013 of the Institutefor Technology & Management, Kharghar, Navi Mumbai under my guidance and direction.Signature of GuideName & Designation: Sudipto Chakraborty, Asst Professor - ITDate: 04 March 2013Place: Kharghar, Navi Mumbai
  3. 3. 2ACKNOWLEDGEMENTI express my profound gratitude to Prof. Sudipto Chakraborty for his meticulous knowledgeableguidance and support to complete this project. Without his guidance and motivation my projectwould not have been such learning experience.I would like to express my sincere thanks to all the faculty members of the marketing departmentof ITM Business School for their guidance and support from time to time. Although they werenot my allotted guide as per the college, yet they guided me in the right direction to complete thisproject with effective understanding.I would also like to thank all my classmates and my friends without whose cooperation thisproject report would not have been a reality.Deepankar Dohare
  4. 4. 3Executive SummaryThe project talks about one of the most promising forms of retailing in today‟stechnologically driven world; the online retailing. Online shopping in India has grown over theyears from being a low profile concept to one which is now quite famous. The credit for thisgoes to, both the marketing companies that have created fantastic campaigns for spreading theword about this concept and the customers who have started shopping extensively for thingsonline.Online shopping has become into a practice, which is now recognised by lots of humanbeings all over the world. In India, shopping has always been an activity, which has beenundertaken with a gusto, which is quite unrivalled by any other activity.The Indian subcontinent has lots of human beings who have realised the advantages offorsaking shops and venturing into the online world with their credit card numbers and theirwishes. College students form a major part of this group who is getting more and more interestedin online shopping.Many researches have been made across the globe in order to understand the buyingbehavior and purchase patterns of this upcoming class which is spends 3-4 hours of their dailyschedule on internet. They have more technology enthusiasts and gadget freaks. Recent studieshave revealed that these college students prefer to shop online rather than go out in the marketand spend time there. Markets have become more of a fun zone for them instead of shoppingplace.This project is an effort to understand how college students behave while shopping onlineand what is their behavior and attitude towards online shopping. The project concentrates on twoobjectives that need to be filled. The first objective is to find out the factors that drive andmotivate students to opt for online shopping rather than real shopping. What benefits, accordingto them, they get from the virtual markets and shopping which have left the traditional shoppingways far behind. The second objective is to study what all products do the college students buy
  5. 5. 4online. Which are the more popular categories among them that they are ready to shop for onlineand for which products/ categories they still prefer to shop in the real world.The project would help the businesses and organizations to understand these studentsbehavior for whom they are waiting in the real world. Even the companies that have gone toadopt this channel, the project would help them to develop their offerings in a better way who aremajorly targeting on college students as their target customers.
  6. 6. 5ContentsIntroduction to E-Business……………………………………………………….. 7About Online Retailing…………………………………………………………… 7Literature Review…………………………………………………………………. 10Definition of E-Tailing……………………………………………………. 10The Need for Online Presence…………………………………………….. 10Findings by IAMAI………………………………………………………. 11Types of E-Commerce Customers………………………………………… 12Students and online shopping…………………………………................. 13Benefits students expect in e-shopping……………………………………. 15Items of Fraud………………………………………………………………16Advantages & Disadvantages of e-shopping………………………………. 16Internet Retailing in India………………………………………………….. 17Internet: The Better Alternative…………………………………………….18Research Gap………………………………………………………………………. 20Research Objectives……………………………………………………………….. 20Research Methodology…………………………………………………………….. 21Research Approach…………………………………………………………21Questionnaire Design……………………………………………………… 21Data Collection…………………………………………………………….. 21Sample Size…………………………………………………………………22Sample Selection…………………………………………...……………….22Graphical Analysis………………………………………………………….23Research Work……………………………………………………….................... 24Data………………………………………………………………………... 24Analysis……………………………………………………………………. 27
  7. 7. 6Interpretation………………………………………………………………. 31e-Shopping: The long way to go……………………………………………………34Conclusion…………………………………………………………………. 35Future Prospects…………………………………………………………… 36References…………………………………………………………………………..38
  8. 8. 7Introduction to E-BusinessIn the past few years, e-shopping seems to have permitted every aspect of daily life. Injust a short time, both individual and organizations have embraced internet technologies toenhance productivity, maximize convenience and improve communications globally. Frombanking to shopping to entertainment the internet has become integral to daily life.E-Business has been defined as “the conducting of the business on the internet, not onlybuying and selling but also serving customers and collaborating with business partners.”1About Online RetailingSince the early 1990s the retail scenario in India has been characterized by a major shiftfrom traditional kirana shops to modern formats that include department stores, supermarketsand specialty stores across a wide range of categories. Today, these retail formats haveestablished good presence across prime locations in the metropolitan and mini-metro centers andthe last few years have seen them spreading out across the countries, thereby exposingconsumers in these areas to modern shopping options and experiences like never before.Even as organized retailers garner share from traditional channels, they have a larger roleto play by way of boosting consumption levels to new heights. As per the IMAGES F&RResearch, the total private consumption expenditure (in direct retail sales) is estimated at 10,500billion (US $233 billion) growing at 5 percent annually; the estimated share of organized retail isonly 350 billion (US $8 billion) at present, growing at over 30 per cent every year.In the shine of this overall retail picture, there exists a less visible, ultra-modern and hi-tech retail channel known as Online Shopping, the number of consumers (internet population)were about 38.5 million and total sales proceeds from online shopping was Rs.1,180 crore in2010-112. The numbers are growing at over five million per year and these consumers offer1Business Driven Technology, page 1392As per IMAGES F&R Research
  9. 9. 8marketers a winning combination on account of their interest and willingness to adopttechnology faster.Online Population (In Millions)3AUGUST 2011 MAY 2012 CHANGEWorld wide 513.4 580.78 13.1 %Europe 154.6 185.8 20.2 %Canada/ US 180.7 182.7 1.1 %Asia/ Pacific 144.0 167.9 16.6 %Latin America 25.3 33.0 30.4 %Africa 4.3 6.3 30 %Middle East 4.7 5.1 8.5 %Source: www. NUA.comFor retailers, this means they need to explore different channels of retailing to cater tovarying and differing customers needs. The brick-and-mortar format has its own advantages andlimitations and therefore it is also necessary to tap the immense opportunities that other channels,like Internet and catalogue offer.Although the concept of e-retailing seemed almost revolutionary at first, e-retailing hasbecome a mainstream method of reaching customers, and it is still growing. The overallobjective of e-retailing is to create sales, manage additional retail functions such as buying andlogistics, and find and identify new retail markets and opportunities using electronictechnologies.The internet provides an easy way to bring buyers and sellers together at a reasonablecost. Even “resellers” have availed themselves of the internet. eBay, the company that hosts the3Source: www. NUA.com
  10. 10. 9“world‟s largest garage sale”:‟ allows its customers the luxury of shopping at any time of the dayat an economical cost.Retailers have found that e-retailing provides a better venue for serving their targetmarkets. For example, companies involved in mail order business such as catalogs, flyers ormagalogs have found that the web offers their customers the advantage of being able to trackorders, inquire about delivery dates and check on items for back order. E-retailers as well ascustomers have benefited from these added advantages. For the e-retailer, payments of goods andservices are immediate, thus creating an increase in cash flow and providing an efficient way toreorder inventory. Because only credit or debit cards are used for purchases, paperwork isminimal or nonexistent.Today, shoppers tendency to buy things has changed to exploring product facts onlineand then buying offline. Since shoppers grow to be convenient combining in store, catalogue andInternet shopping experiences, retailers must flawlessly incorporate those channels or beprepared to lose the string of their purse in proportion to more alert rivals.The Online Retailing revolution tells that the Internet is playing a key role in changingthe shopping experience in many ways - on and offline.With the help of Internet, customers have enabled themselves and given themselves theunderstanding to evaluate old items, find new ones, communicate with other shoppers and evenfind low-cost items, and for all these they dont take pains to walk to a store near to theirresidence.The fast going and growing world with one-click shopping, forces retailers to design newpolicies for capturing customers. To attract fresh consumers and to retain the old ones, retailershave to satisfy customers. For this every retailer has to acquire a level of organizational andtechnological integration that new researches point out.
  11. 11. 10Literature ReviewDefinition of E-retailingBasically, the term e-tailing comes from electronic retail. E-retailing is the selling ofretail goods on the Internet4. It is used in Internet discussions as early as 1995, the term seems anaddition to e-mail, e-business, and e-commerce. E-retailing is synonymous with business-to-consumer transaction.E-retailing can be said as, the selling of retail goods on the Internet.E-tailing refers to retailing over the internet5. Thus an e-retailer is a B2C business that executes atransaction with the final consumer. E-retailers can be pure play businesses like Amazon.com orbusinesses that have evolved from a legacy business, Tesco.com. E-retailing is a subset of e-commerce. B2C involves customers gathering information; purchasing physical goods i.e.,tangibles such as books or consumer products or information goods or goods of electronicmaterial such as software, or e-books and, for information goods, receiving products over anelectronic network.The Need for Online PresenceAs per the estimates of Internet and Mobile Association of India (IAMAI), Indias onlinepopulation in 2008 was 40.5 million and is predicted to reach 100 million by the end of 2013.Today, customer expectations have significantly scaled outside the four walls of thephysical retail store. Full assortments, competitive pricing, easy transactions, rapid orderfulfillment and satisfaction guarantees are increasingly becoming the necessary factors. Sincetodays customers are increasingly fragmented in the channels they use, they also expectunlimited shopping options with the flexibility to unconditionally hop channels, as and whenthey desire.4as cited in www.creotec.com/index.php5as cited in capcomarketing.com/mediakit/Marketing_Glossary/
  12. 12. 11Traditional store-based and catalogue retailers are placing more emphasis on theirelectronic channels and evolving into multi-channel retailers for five principal reasons:1) First, the electronic channel gives the retailers an opportunity to reach new markets.2) Second, the retailers can leverage their skills and assets to grow revenues and profits.3) Third, an electronic channel overcomes some limitations of the traditional formats.4) Fourth, an electronic channel enables retailers to gain valuable insights into theircustomers shopping behavior.5) Finally, providing a multi-channel creates sharing of the percentage of total purchasesmade by a customer in a store.Some of the findings of the research, done by IAMAI, onlineshopping trends in India1) Rs.570-crore worth of E-commerce conducted online in 2010-2011 to grow to Rs.2,300crore by 2012-2013, an estimated 300 per cent-plus growth.2) 55 per cent of visitors to e-commerce sites have adopted the Internet as a shoppingmedium.3) 25 per cent of regular online shoppers are in the 18-25 age group, 46 per cent in the 26-35age group, and 18 per cent in the 36-45 age group. 85 per cent of online shoppers aremales; and even a 15 per cent female audience represents a 15 million strong market.4) 83 per cent of the user base is educated with a Bachelor or Post Graduate degree,representing a well-educated audience. 54 per cent of online shoppers are at an executivelevel. 24 per cent of online shoppers are professionals or self-employed, indicating anassured spending power.5) 76 per cent of online shoppers access the Internet from their office, 63 per cent fromhome and 24 per cent from cyber-cafes.6) 96 per cent of online shoppers have used the Internet for more than 1 year and 65 per centof shoppers have been using the Internet for more than 5 years. About 89 per cent ofonline shoppers use the Internet for more than 5 hours a week and 42 per cent for morethan 20 hours a week. It represents the fact that the Internet is becoming an integral partof daily activity.
  13. 13. 127) 81 per cent of online shoppers own a credit card; 75 per cent of online shoppers own adebit card.8) In a single online transaction, 21per cent of the online shoppers have spent between Rs500 Rs.1,000, 39 per cent between Rs.1,000 and Rs.5,000, 13 percent between Rs.5,000and Rs.10,000, and 11 percent with more than Rs.10,000. These figures represent anaudience that will pay good money for the value of a product irrespective of the medium.9) Thus, the Internet offers an audience that will grow to a 100 million users by 2012-13,which is not bound by operational timings and geographical boundaries; with anopportunity to cater to countrywide city markets.Types of E-Commerce CustomersThere are basically 4 types of customers identified by Gaurav Doshi, author,ezinearicles.com. These customers are differentiated on the basis of their buying habits andmotives for visiting a specific site.These customers are:1) Goal directed shoppers2) Experiential shoppers3) Experienced with retailers site4) Inexperienced with retailer‟s siteGoal directed shoppers: This category of shoppers takes only genuine shoppers, who areserious about their online purchase. Such shoppers can be the first-time visitors to the site.Experiential shoppers: These shoppers are pleasure seekers, visiting the site just for therecreational purpose or to enrich their bank of information. Such shoppers are labeled as windowshopper. Guided by the emotional content, these shoppers always prefer low-ticket products tohigh-ticket ones. For the success of online retailing, these customers have to be faithful.Experienced with retailers site: Faithful and experienced consumers are familiar with e-retailers site and enjoy surfing the site. But if these consumers dont find anything new to surf,
  14. 14. 13they will definitely lose the joy of navigation. Convenience, choice, quality, cost anddependability provide a strong ground on which relationship between the faithful customer andthe retailer is built up.Inexperienced with retailer’s site: Inexperienced shoppers are completely unknown to e-retailing. These consumers, though do not have any knowledge of e-retailers site, may havethorough understanding of other sites. It is believed that one day inexperienced consumers willbecome experienced.Students and Online ShoppingConsumers across the age spectrum shop online, but college students aged 18 to 22 havebeen identified as the Internets "hottest" market and a prime source of future growth in onlinesales. College students yearly expenditures reach near $200 billion6. They are heavy users of theInternet and have more access to this medium than most other population segments. Accordingto Harris Interactive 92% of college students own a computer and 93% access the Internet. Theironline spending exceeds that of any other demographic group. It has been noted that onlinepurchases of students across Asia have totaled to $1.4 billion in 2008 following a 17% increaseover the previous three years. In this vein, it is important for retailers and consumer educators tobetter understand college students online shopping behavior.Despite e-tailings rapid growth, conversion rates, the proportion of consumers who buyfrom websites out of all who visit them, remain low at only 4.9%. According to the survey byShop.org (2001), although 72% of Internet users search online for products at least once a month,this high level of search activity does not translate into similarly high purchase levels. ABizRate.com survey of 9,500 online shoppers revealed that as many as 55% abandoned theirshopping carts before checkout and 32% did so at the point of sale7. Recent studies also haveshown that increasing numbers of consumers use the Internet for collecting product informationwhile still relying on offline stores (e.g., department stores) for purchasing. A consumer survey6as cited in PROMO Xtra, 20087as cited in Shop.org., 2001
  15. 15. 14showed that price, convenience, and selection are primary reasons for students shopping online,but lags in delivery and lack of tactile gratification impede some students online shopping.There have been several reports into student‟s online spending habits over the past few years. College students spend more money online than any other demographic group. Students are particularly active and heavy internet users and that technology and themedia have become a significant part of this young consumer group‟s lifestyle. Thereforeit is important for retailers to better understand college students‟ online shoppingbehaviours in order to learn how to market effectively to them.Some findings of the earlier researches done related to students online shopping behavior inIndia and other Asian countries are mentioned below.Clothing is one of the most popular Internet shopping categories for students, of whomabout 25% have purchased clothing online.Consumer‟s need for social interaction while shopping negatively affected the propensityto engage in Internet Shopping.Both male and female students are confident and price aware when shopping online.89% of internet users had searched for information about products online in their last 1year 12 months and 66.1% had purchased items online during the same period.E-retailers should incorporate their websites with entertainment features such as music,interactive networking communities for customers, and user generated content likecustomer-written reviews to attract consumers who look to get enjoyment out of shoppingonline.Cost was the second biggest factor for male and female students and e-retailers shouldprovide competitive low prices or frequently offer promotional deals on items in order toattract cost conscious shoppers.Shipping and handling fees may be a critical barrier of online shopping for studentswhose primary concern is price.
  16. 16. 15Benefits students expect in e-shoppingRetailers have to recognize the motivation by which potential buyers are driven to go foron-line shopping. There are four basic facilities on-line buyers are hungry for.1) They dont want to spend much time on shopping. Take a small family of a big city withall the members working and having tight schedule. They cannot afford to go for a time-consuming shopping.2) Apart from the time constraint, big players of industry want flexible shopping time,which can be provided by on-line shopping.3) It is pointed out by research that on-line shoppers are not much aware of price or brandbecause they are met with unlimited data on the Internet. Genuine consumers look morefor value than only price of commodities.4) Consumers may have the tendency to buy things inspired by advertisements or theirimpulses. Marketer of CDs and books can capitalize this habit of consumers. Marketerscan use the data bank of such consumers and develop a rapport with consumers byinspecting the choices and brand required by them. Buyers can also be appealed topurchase fashion apparels on-line. Retailers should keep spirited the excitement of onlinepurchasing by introducing variety of categories.According to Greenfields Online Omnibus survey8conducted last year regarding theconsumer behavior for online shopping, few reasons came out as very prominent factors thatmotivate consumers to go for internet shopping.Why are consumers shopping and purchasing online?Saves time 49%Can find the lowest price 48%Avoid the crowds 43%More information on products 36%Better selection 32%Purchase hard-to-find items 23%Easier to ship 11%Good gift ideas online 11%8Survey Outlines CE E-tailing Consumer Demand., By: Smith, Steve, Ebsco Database
  17. 17. 16Items of fraudOne of the concerns of e-retailers is whether their customers believe they are atrustworthy seller. Developing a trusting relationship with a customer will take time andeffort and it’s no wonder. The Federal Trade Commission reported that onlinescammers robbed Americans of more than $437 million dollars in 2008 with Internetrelated fraud accounting for 55% of all fraud reports.Top Products/Services for Internet-Related Fraud Complaints, 20089Internet auctions 48%Shop-at-home/Catalog sales 20%Internet access services 8%Internet info and adult services 6%Foreign money offers 4%Computer equipment/software 2%Business opportunities 2%Note: Percentages are based on the total number of Internet-related complaints for the year (166,617)Advantages & Disadvantages of e-ShoppingTo customers, the most important advantage of the technology may be pricing.Prospective buyers simply surf the net to find the lowest-cost product available. In addition torealizing a cost savings, customers don‟t have to spend their time physically looking for theproduct.On the other hand, the disadvantages may involve consumer privacy and security.Consumers are very concerned about their privacy and about how retailer information is used.9source: Federal Trade Commission report on the National and State Trends on Fraud andIdentity Theft for 2008
  18. 18. 17Also, they are concerned about the security of shopping online. Consumers are mainly concernedthat the hackers may access their credit card or bank account information, resulting in potentialdamaged credit ratings and financial loss. To minimize this, retailers should develop encryptionsystems where needed. An encryption system codes data so that the data can be understood onlyby the authentic user.Advantages for e-customer1) Wider product availability2) Customized and personalized information and buying options3) Ability to shop 24 X 74) Easy comparison shopping5) Quick delivery of digital products6) Ability to create a one-on-one relationship with the sellerDisadvantages for e-customer1) Concern with transaction security and privacy2) Lack of trust for unfamiliar sites3) Inability to touch and feel products before purchase4) Unfamiliar buying process using electronic money5) Complicated legal environment6) Return policies that are difficult to understandInternet Retailing scene in IndiaIn the West, only a few retailers operate in a single channel. Brick-and-mortar andcatalogue-based retailers have websites, many Internet-based retailers have physical stores, andtelevision-shopping channels are aligning themselves with catalogues and traditional retailers.Customers expect it and business demands it.In India, the relationship between the Internet and commerce has crossed the primarystage. According to recent estimates made by the Internet And Mobile Association of India
  19. 19. 18(IAMAI), online shopping crossed Rs.570 crore in 2008-09 and reached Rs.1,180 crore in 2010-11, representing a growth of 107 per cent over the previous year. This is expected to double in ayears time and reach Rs. 2,300 crore by the end of 2013.There are three key drivers for online shopping catching up in India.1) Internet and increased PC penetration which is accompanied by falling prices ofcomputers.102) Indias middle-class is developing, with growing purchasing power and limited personaltime.3) Increasing usage of credit and debit cards coupled with a growing young population whospend significant time online.The Future Group formerly Pantaloon Retail had announced the launch of e-tailingconcept, started in May 2006, at www.futurebazaar.com, to tap into the growing segment ofonline shoppers. Kishore Biyani had said, “Online retailing could provide a completely newdimension to retail. There is a new and fast emerging population of customers called Netizenswho are spending more time in front of their PCs. We looked at this opportunity and hence ourforay in the e-tailing space. We aim to earn Rs. 300 crore from this venture in the next one year.We will provide everything, everywhere, every time to every Indian customer in the mostprofitable manner.”11Internet: The Better AlternativeAfter so much of study, the question is why would the common man of India go forinternet shopping? What is the incentive to try a new medium of shopping?10Pricing the technology, 200611Source: www.financialexpress .com
  20. 20. 19If anyone has to try this new medium of shopping, there should be overwhelming reasonsfor doing so. The benefits must go beyond mere convenience. For one, the consumer willcertainly be interested if he gets things cheaper on the net. Says Biren Ghose12, Chief ExecutiveOfficer (new media) of United Television which owns the site Tsnshop.com: "The Net being anew medium, we have to convince people to use this new medium to buy." Moreover accordingto K Vaitheeswaran, vice president (marketing) of the Bangalore-based Fabmart, "Forconvincing a customer to use this new medium, one has to offer an incentive to buy on the Net.Otherwise, it would be very difficult to get a customer to shop with you."It is very clear that easier and faster shopping are the reasons for shopping on the Net.But now the question is “How”? One can go to a brick-and-mortar retailer who couldoffer 10,000 items in his store. Chances are that he might be 10 per cent out of stock. On theother hand, the Internet offers millions of products with no chances of an out of stock situation.Easy and comfortably-obtained info is another advantage that shopping on the Net offers.On the Internet, product information is just a few clicks away, all accessed in the comfort of ahome. Traditional retailing stands out in stark contrast: the consumer searches frantically, runsup and down, and grills a poorly trained store assistant who is unable to help him out. In thebargain, valuable time is lost. Simply put, shopping on the Internet for, say 15 minutes couldsave a two hour trip to the mall. Consumers prefer to save this time so that they can devote moretime for their professional and domestic priorities.12Source: www.timesnews.com
  21. 21. 20Research GapAlthough much literature is available on e-shopping and its future, yet no relevant datawas found regarding why Students like and dislike shopping on internet, what factors drive themto move away from the brick-and-mortar format and tend towards the virtual format. Also, it wasimportant to find out what categories they actually shop on the internet. This was found to be aninteresting and knowledgeable area to work on.Research Objectives1. To find out the factors which influence the students to go for e-shopping.2. To find out the categories in which students are influenced by the above factors, topurchase online.
  22. 22. 21Research MethodologyResearch ApproachThere are two different research approaches namely qualitative and quantitative research.The research problem is the main criteria to select which approach is the most appropriate. Alsoon the type of information required is an important parameter. A Qualitative research refers to aresearch that produces theoretical and descriptive data. A Quantitative research is the one inwhich the information collected is expressed and analyzed in numerical form.In this research work, both qualitative and quantitative approaches are used to give abetter understanding of the solution of the problem.Questionnaire DesignThe questionnaire is divided in two sections. In the first section general information aboute-shopping is asked from the respondents so as to know about their awareness about it. In thesecond part there are questions related to the six parameters affecting the students‟s behaviortowards internet shopping. And the other question is related to the categories in which they arecomfortable in buying from internet.The scale used in the questionnaire is Likert Scale. The questionnaire is having 9questions (close ended) apart from the personal information.Data CollectionThere are different ways for the collection of the data. Collection of primary data can beconducted in three ways- Observations, Interviews & Questionnaires. Observation is carried outby watching and listening to an interaction or phenomenon as it takes place. An interview isreferred to as any person-to-person interaction between two or more individuals with a specific
  23. 23. 22purpose in mind. A questionnaire is a written list of questions. When using a questionnaire, therespondent reads the questions, interprets what is expected, and then writes down the answers.In this research questionnaire system is being used because it is totally about the behaviorof the customer. The inner mind of the customer carries impressions and ideas which will have tobe converted into the numeric. It will be a personally administered questionnaire.Sample SizeThe size of the sample depends on the basic characteristics of the population, the type ofinformation required from the survey and the cost involved. For this research project 50respondents have been decided. This number is taken because these respondents are the bestrespondents in the pool. They have the knowledge about internet and its characteristics very well.All the respondents are students perusing their graduation/ post graduation.Sample SelectionThere are two basic methods of sampling, probability and non-probability sampling. Withprobability sampling, also known as random sampling, each unit of the population has an equalchance of being included in the sample. Non-probability sampling occurs when selection of thesample is dependent on human judgment, and not on the rigorous application of probabilitytheory.For conducting this research project judgment sampling is used, which is a form of nonprobability is sampling. The total respondent are undergraduate or postgraduate students who arefamiliar with internet and have enough knowledge about it.The sample is chosen on the basis that all these can be taken as a customer and validitycan be checked easily within them.
  24. 24. 23Graphical AnalysisThe data collected for different factors will be analyzed graphically to study each factorseparately. Each factor will be studied under three types of responses from the respondents,„Agree, Undecided or Disagree‟. This will help in knowing how much a factor affects a studentand which of the factors act as a strong catalysts for e-shopping.Separate graphs are drawn for every factor to know to which factors the students aremore agreeing or disagreeing. The total sample size for each graph is same. The morerespondents agree to a particular factor, the more effective it will be.For category identification, the same method is followed. The graph shows differentcategories and out of the total samples how many respondents are comfortable to each categorybuying from internet. For each category, the maximum response will be equal to the total samplesize.
  25. 25. 24Research WorkThe DataThe data collected through the questionnaire was entered into the excel spread-sheet foranalysis. For each factor affecting the consumer‟s attitude towards internet shopping, a separategraph was made to find out whether the consumers agree to that particular factor or disagree oreven they can not decide. Out of the total sample size, which was 30, the number of respondentsto for each kind of response was recorded. Thus a clear idea was drawn regarding the factors thatwhich of them affect the consumer more and which affects less or even the ones were notsignificant at all, i.e. they had no effect on the consumer.The various factors which were taken into account were,1) Better price options2) less time consuming3) huge variety available4) shop anytime5) shop anywhere6) better product informationFor each factor, the data collected is shown separately below:1) Better Price OptionsRESPONSE NO. OF RESPONDENTSAGREE 30UNDECIDED 6DISAGREE 14TOTAL 50
  26. 26. 252) Less Time ConsumingRESPONSE NO. OF RESPONDENTSAGREE 26UNDECIDED 5DISAGREE 19TOTAL 503) Huge Variety AvailableRESPONSE NO. OF RESPONDENTSAGREE 29UNDECIDED 12DISAGREE 9TOTAL 504) Shop AnytimeRESPONSE NO. OF RESPONDENTSAGREE 30UNDECIDED 15DISAGREE 5TOTAL 50
  27. 27. 265) Shop AnywhereRESPONSE NO. OF RESPONDENTSAGREE 23UNDECIDED 16DISAGREE 11TOTAL 506) Better Product InformationRESPONSE NO. OF RESPONDENTSAGREE 30UNDECIDED 11DISAGREE 9TOTAL 50Product CategoriesThe same method was used to identify the categories in which the consumers are ready toshop on the net. The table for the categories is given below. The number of favorablerespondents for each category was noted out of the maximum number of respondents which was50.
  28. 28. 27CATEGORIES FAVOURABLE RESPONDENTS(OUT OF 50)RAILWAY/FLIGHT TICKETS 44APPAREL 10ACCESSORIES/ JEWELRY 15MUSIC/ CDs 24MOVIE TICKETS 33HOME FURNISHING 2GREETINGS/ CARDS 16BOOKS/ RES. PAPERS 34ELECTRONICS 17SOFTWARES/ GAMES 27The AnalysisFrom the data collected, the graphs were drawn. These tables are given on the next page.These graphs clearly showed the effect of the factors in terms of the benefits which they get frominternet shopping.The factors to which the customers showed favorable response showed high degree ofagreeness as compared to those for which the consumers were not agreeing.For each factor studied the graph made from the data is given below.
  29. 29. 281) Better Price Options2) Less Time Consuming05101520253035AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSEBETTER PRICE OPTIONS051015202530AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSELESS TIME CONSUMING
  30. 30. 293) Huge Variety Available4) Shop Anytime05101520253035AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSEHUGE VARIETY AVAILABLE05101520253035AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSESHOP ANY TIME
  31. 31. 305) Shop Anywhere6) Better Product Information0510152025AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSESHOP ANY WHERE05101520253035AGREE UNDECIDED DISAGREENO.OFRESPONDENTSRESPONSEBETTER PRODUCT INFORMATION
  32. 32. 31The CategoriesThe InterpretationFrom the above analysis of the data collected certain interpretations were made regardingthe factors as well as the categories.From the first graph, it can be easily interpreted that students prefer online shoppingbecause of the better price deals they are being offered. This came out as the most significantfactor among students as they are more price cautious and sensitive. Also they wouldimmediately switch to another online retailer if he offers them a better price for the sameproduct. 30 out of 50 respondents believed that they prefer online shopping because of betterprice options.05101520253035404550NO.OFRESPONDENTSCATEGORIES
  33. 33. 32From the second graph, it is seen that through internet people could shop in a lesser timeas compared to a real a real shopping experience. Most of the people agreed to this fact thatinternet shopping enables them to find their required merchandise quickly and that they couldeasily purchase by just one click. This factor came out to an important factor in the entireconsumer benefit set.The next graph is representing the people‟s response regarding the huge variety they geton the internet. A big number of respondents agreed to this, which was 29. Also 12 people couldnot decide about it that whether they get better variety of products in stores or on the internet. 9people disagreed to it saying that brick-and-mortar stores offered them better variety. This factoralso turned out to be a critical factor which drives the students towards internet shopping.The fourth graph of the factor „shop anytime‟ showed a very obvious response which wasin favour of the internet shopping. 30 respondents out of 50 agreed to this fact that internet offersthem the ability to shop at any time of the day. The ability to shop 24X7 becomes a veryimportant factors which pushes the students to opt for internet shopping rather than realshopping.The fifth graph represented the people‟s response for the ability to shop anywhere in theworld on internet. This factor did not turned out to be as critical as other factors. Studentspreferred to shop for brands which they knew and were familiar with. The ability to shop ofbrands which are not present in the country did not delight and attract them so much that theywould prefer to shop for them online. Only 23 out of 50 people agreed to this factor that it drivesthem to shop online.The last factor was the better information available to the consumers on the net. Thisfactor again showed a favourable response from the people. 30 people said that they get betterinformation on the net while 11 were unable to decide about it and 9 disagreed to it. It could besaid that this factor has an equally important role in driving the students for internet shopping asother factors.
  34. 34. 33Finally the last graph shows the categories in which the consumers were felt they werecomfortable in buying from the net. Each category was considered to be mutually exclusive ofthe others and out of 50, the favorable respondents were counted. The maximum response wasfor the „Railway/ Flight Tickets‟ category in which 44 people said that they were comfortable inbuying it on the internet. The second place was taken up by „Books‟ where 34 students said thatbuying them on the net was comfortable for them. Websites like Flipkart.com have a major roleto play here. This was followed very closely by „Movie Tickets‟ category having 33 people‟sacceptance. Bookmyshow.com and other similar website have made a major shift in customersonline booking for movie shows. Next in the line was „Softwares/ Games‟ coming out with 27favourable responses. „Music/ CDs‟ was the next category with the score of 24. Electronics,Greetings/ Cards and Jewelry/Accessories had an almost equal score of 17, 16 and 15respectively. Apparels and Home furnishing were the last categories with the lowest score of 10and 2 respectively and students very rarely preferred to shop for them online.
  35. 35. 34e-Shopping: The long way to goThe concept of e-shopping has indeed matured since the fire and ice years of 1998-2000.It now is no longer a euphoric technology; it forms the bedrock of most businesses. Banking,travel, entertainment, shopping and e-mailing now all form part of a new mode in which thesociety interacts.Internet retailing had been a hot topic for many years since the emergence of Internet, butthe dotcom burst of year 2000 raised questions about whether this was a sustainable business.Experts were quick to write-off the virtual business model and claimed that the use of Internetwould be limited to information exchange.Markets in western countries of America and Europe have warmed up to online shoppingin a big way and now online transactions form a significant part of the total trade in thesecountries. Several factors have contributed to this phenomenon. Greater Internet penetration, fallin prices of hardware, fall in the price of Internet communication, development of better andmore reliable technologies, and increased awareness among user are few of the prominent factorsleading the change.During the last year, the number of people and hosts connected to the internet increased.In India too, Internet penetration became more widespread with bandwidth becoming readilyavailable, Internet tariffs coming down and computer hardware becoming cheaper. The IndianInternet and E-commerce market however is nowhere close to its expected potential. E-mailapplications still constitute the bulk of internet traffic in the country. Some of the various ways inwhich online marketing is done in India are company websites, shopping portals, online auctionsites, e-choupal, etc.
  36. 36. 35ConclusionThe findings support the notion that while college students have strongly embraced theWeb as a shopping tool, they are more apt to purchase some types of products on the internetthan others. Interestingly, they were most likely to obtain services (travel tickets, movie tickets)than to purchase tangible merchandise.The results of the study indicate relationships between the factors that influence thestudents‟ attitude toward online shopping and their actual buying behavior. The findingssuggested that factors like convenience, price and wider selection are important determinants ofstudents‟ attitude toward online shopping. Moreover, they have a significantly positive impact onstudents‟ attitude toward online shopping.In addition, a further aspect of the study included online shopping perceived benefits.The findings of the study imply that students are looking for more convenience (time flexibilityand money saving), cheaper prices and wider selection when they shop online, making them asthe dominant factors that motivate students to shop online. On the other hand, there were notsignificant relationship between students‟ attitude toward online shopping and less timeconsuming and the ability to shop from anywhere in the world. This may be due to the low levelof involvement of the young consumers who have experience in online shopping.Online merchants should heed these findings when they choose which benefits to developand emphasize in the promotion of their internet site. Where buying books online is seen asconvenient and as means of cost saving, it is not seen necessarily as a fun activity.Researchers should heed the notion that not all products are created equal when offeredfor sale on the internet. The idea of discovering what prompts someone to shop on the Internetmust be tempered with the knowledge that the motivating factors will vary by product.
  37. 37. 36The Future ProspectsStudents are an integral part of the “Net Generation” and practically speaking, allstudents were found to use the Internet. Over three-quarters own a computer. A vast majoritysubscribes to an online service provider. All have access to both computers and networks at theirrespective institutions of higher education. Evidence was gathered to support the fact thatuniversity-aged students spend, on average, between 8 to 12 hours per week online. Whileonline, they use their computer capabilities for a myriad of activities including conductingresearch, communicating by e-mail, obtaining news, viewing maps and directions, downloadingmusic, conducting job searches, as well as doing their banking and shopping.The projected increase in online consumers and expenditures leads marketers to believethat the possibilities for consumer value creation are greater in the electronic commercemarketplace than in the traditional marketplace. As the critically significant global university-aged student segment intensifies its online shopping behavior, it is extremely important for thosemarketing to these computer savvy individuals to understand the influences that affect them ateach stage of the buyer‟s decisions process. Marketers must understand that the online buyingprocess begins long before the actual purchase is made and continues after the sale. Thus, toeffectively market internationally or locally to university-aged students, marketing strategy mustfocus on the entire buying process.Some of the key points for e-marketers to understand related to students‟ buying behaviorare- Students are online a lot and they discover products and services that interest them during theirtime online.- Students search web sites for information about products and/or services that interest them.- Students evaluate alternatives while online and arrive at a final set of choices from which tobuy while online.- Students make final product and/or service purchase decisions while online.
  38. 38. 37- Students develop web site loyalty and will repeat purchases if their total shopping experience issatisfactory and they have confidence in and trust the site.- Students buy online more than the general population. They frequently spend money on books,airline tickets, music, event tickets, computer software and movies.- University-aged students have concerns about security and providing credit card informationonline, slow delivery, being targeted for repeat/future purchases online, out-of-stockmerchandise, difficulty returning merchandise, and dissatisfaction with purchase trackingabilities.
  39. 39. 38ReferencesResearch papers1. Narges Delafrooz, Laily Hj Paim, and Ali Khatibi; University of Putra Malaysia, “Students‟Online Shopping Behavior: An Emperical Study”2. Benjamin Chan Yin-Fah and Bei Hooi-Choo; Universiti Putra Malaysia, “Undergraduatesand Online Purchasing Behavior”3. Deborah H. Lester, Andrew M. Forman and Dolly Loyd; “Internet Shopping and BuyingBehavior of College Students”4. Terry Newholm, Peter Mcgoldrick, Kathy Keeling, Linda Macaulay & Joanne DohertyInternational Centre for Retail Studies in the Manchester Business School, UK, Departmentof Informatics, University of Manchester, UK, “ Multi Story Trust and online RetailStrategies”5. Sinha. Piyush Kumar, “Using Transaction Utility Approach for Retail Format Decision”6. M. Adam Mahmood, Kallol Bagchi, and Timothy C. Ford, “On-line Shopping Behavior:Cross-Country Empirical Research”Books1. Ogden James R and Ogden Denise T, Integrated Retail Management-Indian Adaptation,Houghton Mifflin Co., 20052. Haag-Baltzan-Phillips, Business Driven Technology, Tata McGraw Hill Publishing Co.Limited, 20063. Hanes Tony and Bruce Margaret, Fashion Marketing, Butterworth Heinemann publications,20024. Gilbert David, Retail Marketing Management, Pearson Education Inc, 20035. Kalakota Ravi and Robinson Marcia, E Business 2.0, Pearson Education Inc, 2004
  40. 40. 39Articles1. International Trade Forum, Issue 3, 20032. Survival Tactics, Advertising & Marketing, Nov 20003. Home is where Homepage is, Advertising & Marketing, Nov 20004. Accessing the Future, Advertising & Marketing, Nov 20005. Targeting the Consumers Life, Advertising & Marketing, Nov 20006. Business of Self Evident Truths, Advertising & Marketing, Dec 20007. Shopping or Stopping By, Advertising & Marketing, Jan 20018. Yet to happen in India, Advertising & Marketing, March 20019. Digitally Certified, Advertising & Marketing, June 2001Websites1. www.nua.com2. www.creotec.com3. www.capcomarketing.com4. www.cyberatlas.internet.com5. www.financialexpress.com6. www.ebscohost.com

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