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Online Shopping Behavior: A Study in Khulna City
Thesis report submitted in partial fulfillment of requirement for the Degree of Master
of Business Administration (MBA)
Supervised By
Farzana Akther
Senior Lecturer
Department of Business Administration
North Western University, Khulna
Prepared By
Sheikh Sabbir Ahamed
ID: 20181016501
Department of Business Administration
North Western University, Khulna
Date of Submission: 29-12-2018
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Online Shopping Behavior: A Study in Khulna City
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Letter of Transmittal
December 29, 2018
Convener,
Internship and placement Committee
Department of Business Administration
North Western University, Khulna
Subject: Submission of Thesis
Dear Sir,
With due respect, It is my pleasures to submit my research report titled “Online
Shopping Behavior: A Study in Khulna City” that has an integral part of my
degree requirement. I put my best effort to follow the instructions of you in
preparing this report. This research program is very much valuable to me as it
help me to gain experience from practical field. I try to the maximum competence to
meet as the dimensions required for this report. However some aspects are
unintentionally overlooked. It is hoped that you would ignore any discrepancies
considering my limitations. Your positive action regarding this matter would be
very much helpful for my academic as well as professional career.
I, therefore, would like to request you to accept my report and oblige thereby.
Sincerely yours,
Sheikh Sabbir Ahamed
ID: 20181016501
Supervised by:
Farzana Akther
Senior Lecturer
Department of Business Administration
North Western University, Khulna
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ACKNOWLEDGEMENT
Thanks to Al-mighty Allah for blessing in completing the report within the schedule
time.
I also want to thank especially to my honorable supervisor Farzana Akther, Senior
Lecurer, North Western University, Khulna for her inspiring guidelines, valuable
suggestion, constructive criticism and constant help to make this report schedule time.
And last but the least I would like to express my gratitude to all of my respondents for
giving me the necessary data and information for my research program that I have
completed, who help me without considering any business purpose and also sharing
this practical experience.
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Abstract
In recent world, people want to do anything in easiest way. In this case, people adapt
internet to find anything and purchase. This research shows the online purchasing
behavior of Khulna citys people. This is a descriptive type research. In this research,
study locations have selected by judgment sampling. The locations are Rupsha, Shib
bari mor, Picture place mor and Sonadanga. The total number of sample is 30. The
respondents are both male and female. Respondents are selected from those locations
following simple random sampling technique. From the people of those locations are
asked individually about online shopping. People who are response selected as
respondents. A simple questionnaire has designed for collecting primary data. The
collection of primary data from survey have been analyzed by Microsoft Excel and
input to Microsoft World. After analyzing, important information comes out as
findings. The information includes why people purchase through online. After that,
recommendations take place as the result of analyzing and findings. Online shopping
makes people life easy and it is developing day by day.
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Table of Content
Contents
Abstract
Chapter 1: Introduction
1.1 Background of Study
1.2 Objectives of the Study
1.3 Scope of the Study
1.4 Limitations of the Study
Chapter 2: Literature Review
Chapter 3: Methodology
3.1 Type of Research
3.2 Sources of Data
3.3 Population of Study
3.4 Sample Size
3.5 Sampling Technique
3.6 Tools and Techniques of Data Analysis
3.7 Research Construction and Operational Definition
Chapter 4: Analysis and Findings
4.1 Analysis
4.2 Findings
Chapter 5: Recommendations and Conclusion
5.1 Recommendations
5.2 Conclusion
References
Appendix
A-1 Questionnaire
A-2 Calculations
Page(s)
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Chapter 1
Introduction
1.1 Background of the Study
The recent growth of the Internet and the World Wide Web makes it appear that the
world is witnessing the arrival of a completely new technology. In fact, the Web now
considered being a major driver of the way society accesses and views information is
the result of numerous projects in computer networking, mostly funded by the federal
government, and carried out over the last 40 years. The projects produced
communications protocols that define the format of network messages, prototype
networks, and application programs such as browsers. This research capitalized on the
ubiquity of the nation's telephone network, which provided the underlying physical
infrastructure upon which the Internet was built.
E-business refers to the integration of electronic technology in business functions. It
includes the use of computers and digital networks for internal operations as well as
the Internet for communication and e-commerce. The evolution of businesses toward
increasing e-business functions dates from the widespread use of personal computers
in the 1980s and the development of the commercial Internet in the 1990s. This
evolution is ongoing as e-businesses transition to mobile technology.
Online shopping was invented and pioneered in 1979 by Michael Aldrich in the
United Kingdom. He connected a modified domestic television via a telephone line to
a real-time multi-user transaction processing computer. The system was marketed
beginning in 1980 and offered mainly business-to-business systems that were sold in
the UK, Ireland, and Spain. One the earliest consumer shopping experiences was
Book Stacks Unlimited, an online bookstore created by Charles M. Stack in 1992.
Stack’s store began as a dial-up bulletin board two years before Amazon was founded
by Jeff Bezos. In 1994, Book Stacks Unlimited moved to the Internet as Books.com
and was eventually acquired by Barnes & Noble.
Online shopping in Bangladesh is a new idea and since the e-commerce protocol by
the government of Bangladesh it has become much easier and is now popular in
Bangladesh. A recent survey shows that Bangladesh is an emerging market for the
online sectors and it has a growing market of around 2 billion BDT. The introduction
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of 3G mobile internet boosted the online retail industry significantly. The main items
sold are clothing, electronics, toiletries and gifts.
1.2 Objectives of the Study
The main objective of the study is to know the consumer behavior towards online
shopping in Khulna regions people. Besides this, there is another objective. The
objective is
 To know about online purchasing interest of the people in Khulna city.
1.3 Scope of the Study
The study of online shopping behavior in Khulna region people will help me to
complete my MBA degree also improve my CGPA. It’s also helping me to learn how
to conduct a research. The research will help me to improve my knowledge about
online shopping consumer perception. It will bring the scenario of online shopping
criteria of Bangladesh in my eyes.
1.3 Limitations of the Study
Almost every study has some limitations. So, in this study, there are some limitations.
The limitations are-
1. The time for study is very limited.
2. There is no budget for this study.
3. The selection of respondents is difficult.
4. The sample size is very small. It is difficult to measure all people who
purchase through online from this small sample.
5. It is very difficult to gather accurate information from respondents.
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Chapter 2
Literature Review
Global retailers are stepping up technology spend as more consumers prefer to shop
from the comfort of their homes, and Indian IT services firm Wipro sees such spend
driving its growth. "Digital natives are coming," says Srinivas Pallia a senior vice
president at Wipro who heads the business unit that offers technology solutions to
retailers in the US and Europe. (Indu Nandakumar), 2012.
American online retail giant Amazon.com has made an entry into the Indian market
with Junglee.com, an online shopping site powered by the $ 48 billion company. The
site which went live on Thursday morning says that it’s an online shopping service by
Amazon "which enables customers to find and discover products from online and
offline retailers in India and from Amazon.com”. (Jayadevan P K), 2012.
While interactions in the real world shopping are mainly based on face-to-face
activities between consumers and service personnel’s, interactions in electronic
commerce take place mainly through the retailer’s Web site. This study investigated
the relationship between various characteristics of online shopping and consumer
purchase behavior. (Chung-HoonPark), 2010.
While the cognitive effort is related to purchasing decisions, physical and emotional
efforts are associated with consumer participation in the production/operations
process. Although there has been a lack of literature addressing physical and
emotional efforts, many studies (Fennema and Kleinmuntz, 1995; Fiske and Taylor,
1984) have attempted to examine the issue of cognitive (or mental) efforts and have
consistently found that most individuals have quite limited cognitive resources and,
acting as cognitive misers, conserve these resources during decision-making
endeavors.
Online shopping is basically a process of selling and buying of goods and services on
World Wide Web. As (Forsythe and Shi, 2003) explains” Internet shopping has
become the fastest-growing use of the Internet; most online consumers, however, use
information gathered online to make purchases off-line”.
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According to a report (ACNielsen Report on Global Consumer Attitudes towards
Online Shopping, 2005) published on www.acnielsen.com, one tenth of the world
population is shopping online , till October 2005, 627 million people have done online
shopping , and according to the same report Germans and British are on the top of the
list on Online Shopping.
Additionally report (ACNielsen Report on Global Consumer Attitudes towards Online
Shopping, 2005) published on www.acnielsen.com confirms that Products most
purchased online are Books on the top followed by DVD/Video/Games and Plane
Reservations, the payment method that is being used mostly is Credit Card.
As above stats confirms internet activity as growing fast and Sweden has always been
on high heels in Internet Usage and online Shopping in Europe. According to a report
on (ACNielsen Report on Global Consumer Attitudes towards Online Shopping,
2005) shows on the list of top 20 internet purchaser countries Sweden is on number
nine following Japan and USA.
As Forsythe and Shi (2003) mention internet users can be categorized in to two
Internet Shoppers and Internet Browsers, Internet shoppers are the people who shop
online whereas internet browsers are the people who just browse the internet other
than shopping purpose.
Convenience has always been a prime factor for consumers to shop online.
Darian(1987) mention that online shoppers carry multiple benefits in terms of
convenience, such as less time consuming, flexibility, very less physical effort etc.
According to the Robinson, Riley, Rettie and Wilsonz (2007) the major motivation for
online purchasing is convince in terms of shop at any time and having bundles of
items delivered at door step.
Webcheck’s (1999) study shows that convenience factor is one of the biggest
advantages of online shopping. Through online purchase consumers can easily
compare the price than the traditional purchase. So price comparison is also another
convenience factor of online shopping.
Time savings is one of most influencing factors of online shopping. Browse or search
an online catalogue can save time and patience. People can save time and can reduce
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effort by shopping online. According to Rohm and Swaminathan’s (2004), one
possible explanation that online shopping saves time during the purchasing of goods
and it can eliminate the traveling time required to go to the traditional store.
Unexpectedly time saving is not the motivating factor for the consumers to shop
online (Corbett, 2001) because it takes time receiving goods or delivery. But time
saving factor can be seen through different dimensions i.e. “person living in Florida
can shop at Harod’s in London (through the web) in less time than it takes to visit the
local Burdines department store”
Website design and online shopping activity is one of the vital influencing factors of
online shopping. Website design, website reliability/fulfillment, website customer
service and website security/privacy are the most attractive features which influence
the perception of the consumer of online buying Shergill & Chen (2005). Kamariah
and Salwani (2005) claims the higher website quality, the higher consumer intends to
shop from internet.
Web design quality has important impacts on consumer choice of electronic stores,
stated by Liang and Lai (2000). Website design one of the important factor motivating
consumers for online shopping. Almost 100,000 on-line shopper’s surveyed by
(Reibstein, 2000) shows that web site design was rated as important factor for online
shopping.
Another study conducted by Zhang, Dran, Small, and Barcellos (1999, 2000), and
Zhang and Dran (2000) indicated that website design features of the website are
important and influencing factors that leads consumer’s satisfaction and
dissatisfaction with a specific website.
A study conducted by Yasmin and Nik (2010) shows a significant relationship
between online shopping activity and website features. Website design features can be
considered as a motivational factor that can create positive or negative feelings with a
website (Zhang, et al 1999).
A study by Li and Zhang (2002), if website is designed with quality features it can
guide the customers for successful transactions and attract the customers to revisit the
website again. However, worse quality website features can also hamper online
shopping.
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Safe and secured transaction of money and credit card information increases trust and
decreases transaction risk. In 1995, UK has introduced Fraud free electronic shopping
and later on Europe and Singapore introduced secured electronic transaction (SET).
According to Bhatnagar and Ghose (2004) Security is one of the attribute 14 which
limits buying on the web as they claim that there is a large segment of internet
shoppers who don’t like to buy online because of their thinking about the security of
their sensitive information.
Cuneyt and Gautam (2004) claims trust in the internet shopping with advanced
technology, and frequent online shopping to the internet being secured as a
trustworthy shopping channel.
Online shoppers in terms of demography are another important aspect. We would like
to study demography in terms of age, gender, income and education as are there any
differences while consumers shop online, differences within the age groups such as
does online shopping attracts elder people or younger people. Studies have shown that
online shoppers mainly consist of people with Higher education and income and
working in middle to senior management or professionals (Kehoe et al., 1998;
Hoffman et al., 1996).
Sim and Koi, (2002) states as main discriminating factors appeared to be gender and
income. Customer segmentation is important for electronic commerce success, Berry
(1999).
Technology is updating day by day. In recent world, IT department is developing
rapidly because of the touch of digitalization. As a result offline work is turn into
online. Business is also turning to online because of many facilities. Retailers are
conducting business in whole world by online. They also show their product to large
number of potential customers in easy way. It is easy to promote products on online.
In present, peoples are familiar to internet. All ages of peoples are using internet
because of low cost. As a result e-business is growing rapidly. People like to evaluate
same category products what are offered from different companies. It is easy to
compare product on online than offline. In real world shopping is mainly based on
face to face communication between customer and sellers. But now the seller create
web site and provide all information about product to give attention the customers. In
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this case e-commerce takes the place. Retailers attract customer demographically.
They make segmentation by gender, age, location. A well designed web site with
good segmentation attract customer.
Now-a-days people are more conscious. They search information as much they can
before purchase from different type of web sites. Online shopping save time. In this
busy world many people haven’t time to purchase in physical way. People can find
out brands easily also easy to find out fancy product by online. Young generation like
to purchase accessories like dvd, books, video games by online from different
countries.
By online, It is possible to buy product from anywhere in the world. The payment
method is easy and secured. E-retailers provide facility to send product to customer
door. As a result people shift mind to online shopping to make life easier.
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Chapter 3
Methodology
3.1 Type of Research
The choice of a research approach depends on the nature of the research study.
Basically, all research approaches can be classified into three categories: exploratory,
causal, and descriptive. In this case, the nature of research is descriptive. Under
descriptive approach, there are four famous methods to collect data: secondary data,
surveys, panels, and observational and other data (Malhotra, 2004). Saunders, Lewis,
and Thornhil (2000) suggests that quantitative research can be faster as compare to
qualitative as it is possible to forecast the time schedule, whereas qualitative can be
relatively long in duration. Research projects normally done for academic reasons are
limited to time as this research is also being done for academic purpose and is time
limited so that is why going to prefer quantitative approach. The research will show
the online purchasing behavior of Khulna regions people.
3.2 Sources of Data
Primary and Secondary both methods are used for collecting data. Survey is used for
collecting primary data by structured questionnaire.
3.3 Population of the Study
All the people of Khulna region who make purchase through online is the population.
But some specific locations are selected for the study. The locations are Rupsha, Shib
Bari mor, Sonadanga, Picture Place mor. Those specific locations are selected for
important reasons. In Rupsha at Shipyard, there are 4 freelancer offices. In those
offices, Employees are worked on online with different countries people. They may
work in product or marketing department through online. In Shib Bari mor, there are
many offices what are conducting e-business. There is also a university. The student
of the university is familiar to online shopping. In Picture Place mor, a number
computers shops are situated. The buyers of computers and accessories may also
familiar to online shopping. At last Sonadanga, there is a university. A large number
of students can be familiar to online shopping.
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3.4 Sample Size
Total numbers of sample are thirty (30). The respondents are both male and female.
There is no ratio between them because of time limitation.
3.5 Sampling Technique
At first, judgment sampling technique is applied for sampling. All the people of those
locations are the sample who purchase through online. In this case, all employees,
computer buyers, students are the sample. After that, simple random sampling
technique is applied for selection of respondents. The people of those locations are
asked individually about doing online shopping as follow the method of simple
random sampling. People who are response selected for respondent. Questionnaires
are developed for collecting data. Questionnaires are distributed by hand to
respondents and enough time given to respondents to fill the questionnaire to reduce
sampling error. Questionnaire is constructed in simple language in order to reduce the
risk of ambiguity.
3.6 Tools and Techniques of Data Analysis
Microsoft Excel is used for analyzing data. At first, all the collected data are saved in
excel for stored. After that, all data are analyzed by command and show result in bar
diagram.
3.7 Research Construction and Operational Definition
There are many factors influences and affect customers in related to how consumers
make purchasing decision. The purchasing decision process starts long before actual
purchase and continues long after. Usually in more routine purchases, consumers
often reserve or skip some of purchase decision process. The researcher used 8
independent factors in this study.
Search Engines
Internet users basically used search engines to find out needed information. Since
search engines mainly help users’ judgment to rank Websites, electronic retailers
should make sure Website quality can satisfy and serve the particular search engine’s
demands.
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Online Shopping Malls
Online shopping malls provided an unprecedented chance for e-retailers to reach a
global customer base and selling various kinds of consumer products. Many e-
retailers joined with online shopping malls in order to have more customers visit their
websites. The online shopping malls and Websites are sponsors by many e-retailers
that utilized information generated in order to explore more marketing opportunities.
Conveniences
Convenience and saved time are offered by online shopping which are two motivating
factors for online purchases. The main reason that motivated consumers to shop
online is conveniences. Convenient access to product information can facilitate and
help shoppers’ making an online purchases decision.
Price
Price is a critical factor for customer on online shopping. However, argued that often
online shoppers are not price-sensitive, cause of these consumers’ price comparisons
among different e-retailers on each product was time-consuming and the price
difference was very small.
Brand
Brand is defined as the quality related to the products or services. Often, brand is
referred to the seller’s reputation and consumer loyalty in associated with the seller.
Brands and features increases as more information is obtained, knowledge of the
available and consumer awareness. E-retailers should strengthen shopper trust and
believe by buying famous Website such as google.com to promote the online
purchase rate.
Refund
Online consumers demanded that e-retailers should provide an unconditional refund
policy if the online costumer are not satisfied with the product. E-retailers should have
refund policies to convince online consumers that they easily return products and get
refunds if they are not satisfied, or exchange products for free within a reasonable
timeframe.
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Promotion
E-retailers may use promotions with time limits to encourage consumers to shop on
Website. However, promotional activates for online products or services are not
successful for e-retailers because there was not effective ways to inform consumers of
promotional activities.
Security
Security is a critical successful factor for e-commerce. Retail e-commerce would fail
if Internet users feel on lacking a great degree of confidence. The primary reason
indicated of the most buyers who don’t shop online cause of afraid to reveal personal
credit card information to retailers or over the internet.
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Chapter 4
Analysis and Findings
4.1 Analysis
The primary data what are collected from survey analyzing for findings.
Age of respondents
Figure 1
In this chart, it has shown that the age of respondents. The total respondents are 30.
There is no respondent below the age of 18. Respondent whose age under 18-25 years
is 87%. Respondent whose are under 26-33 years and 34-50 years both are separately
7%.
0%
87%
7%
7%
0% 20% 40% 60% 80% 100%
Under 18
18-25
26-33
34-50
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Judgment web site for shopping
Figure 2
In this chart, it is shown, the judgment of selecting web site for shopping. 60%
respondents select web site of its popularity. 10% of respondents select for the cause
of number of viewers. 10% respondents are voted for well decoration and 20%
respondent’s judge by rank of web site.
20%
10%
10%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Rank
Well decoration
Number of viewers
Popularity
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Type of commodity purchase through online shopping
Figure 3
It shows 10% respondents purchase convenience goods, 20% electronic products,
20% cosmetics, 50% garments products.
50%
20%
20%
10%
0% 10% 20% 30% 40% 50% 60%
Garments products
Cosmetics
Electronic products
Convenience goods
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Compare price and product specification before purchase
Figure 4
In this figure, it shows 7% of respondents are voted for no and 93% yes.
93%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No
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Approximate amount spends on a single online purchase
Figure 5
This chat shows single online purchase amount. From 30 respondents, 7% spends
more than 5000tk for a single purchase, 0% spends 3001-5000, 70% spends 1000-
3000 and 23% spends less than 1000.
23%
70%
0%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Less than 1000
1000-3000
3001-5000
More than 5000
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Reason for preferring online shopping
Figure 6
In this figure, 23% respondents are band conscious. 3% respondents prefer because of
trust and 10% respondents are price sensitive. 63% of all respondents prefer because
of fast shopping and time saving.
23%
3%
10%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Brand concious
Trust
Price
Fast shopping &
Time saving
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Evaluation of merchant (e-retailer) for purchasing product in web site
Figure 7
It shows, 30% of respondents don’t evaluate merchant or e-retailer before purchase
and 70% evaluate.
70%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes
No
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Motivational factor for preferring online shopping
Figure 8
In this figure, it is shown that, the motivational factors for choosing online shopping.
From 30 respondents 13% are voted for no hidden cost, 43% no travel to shop, 20%
wide range of products and 23% easy payment.
23%
20%
43%
13%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Easy payment
Wide range of products
No travel to shop
No hidden cost
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Payment on online
Figure 9
This chart shows, the payment method of online shopping secured or unsecured. From
30 respondents, 33% are voted for unsecured and 67% voted for secured.
67%
33%
0% 10% 20% 30% 40% 50% 60% 70%
Secured
Unsecured
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Payment method for online purchase
Figure 10
This chart shows the payment method of 30 respondents. From them 0% use
visa/master card, 3% use debit/credit card, 60% use cash on delivery and 37% use
bKash.
37%
60%
3%
0%
0% 10% 20% 30% 40% 50% 60% 70%
Bkash
Cash on delivary
Debit/Credit card
Visa/Master card
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Facing problem while conducting online purchase
Figure 11
From 30 respondents, 27% respondents have faced problem and 73% haven’t face any
problem.
73%
27%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes
No
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Type of problem what respondents face
Figure 12
In this chart, 22 respondents are faced problem at the time of purchasing. From them
0% face non delivery problem, 55% face product damage, 18% face cheap quality
product and 27% face delay in delivery.
27%
18%
55%
0%
0% 10% 20% 30% 40% 50% 60%
Delay in delivery
Cheap quality
product
Product damage
Non Delivery
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Return product after purchasing
Figure 13
This chart shows, return product after purchasing. From 30 respondents 63% don’t
return product and 37 % return.
37%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
31
Refund method after returning product
Figure 14
From 30 respondents, 18 respondents return product after purchasing. 17% of 18
respondents get 17% certain percent refund, 11% get partial refund, 28% get half
refund, 44% get full refund.
44%
28%
11%
17%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Fully refund
Half refund
Partial refund
Certain percent
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Time has taken for refund
Figure 15
This chart shows, how much time e-retailer takes to refund. From 18 respondents 17%
get refund more than 15 days, 17% get 10-15 days, 17% get 5-10days and 50% get
less than 5 days.
50%
17%
17%
17%
0% 10% 20% 30% 40% 50% 60%
Less than 5 days
5-10 days
10-15 days
More than 15 days
33
On the average how much time (per week) spends surfing the web site
Figure 16
This figure shows how much time respondents spend web site for surfing. Here, 20%
respondent spends more than 16 hours, 10% spends 11-15 hours, 43% spends 5-10
hours and 0-5% spends 27%.
27%
43%
10%
20%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
0-5 hours
5-10 hours
11-15 hours
More than 16 hours
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Shopping method
Figure 17
In this figure, it has shown that respondent who prefer shopping method. From 30
respondents 63% are prefer physical shopping and prefer 37% online shopping
37%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Online
Physical
35
Satisfied/dissatisfied in terms of payment, delivery and product during purchase
on online
Figure 18
This chart shows customer perception of payment, delivery and product during
purchase. From 30 respondents, 53% are neutral, 23% are negative and 23% are
positive.
23%
23%
53%
0% 10% 20% 30% 40% 50% 60%
Yes
No
Neutral
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Overall satisfaction/dissatisfaction level after purchasing product on online
Figure 19
The chart shows respondents’ satisfaction or dissatisfaction level. 3% of them are
very dissatisfied, 13% are dissatisfied, 80% are satisfied and 3% are very satisfied.
3%
80%
13%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Very satisfied
Satisfied
Dissatisfied
Very dissatisfied
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Most liked web site for purchasing commodities
Figure 20
Respondents most like to purchase from those websites. From 30 respondents, 47% of
them like daraz.com, 23% like ajkerdeal.com, 13% like pickaboo.com, 7% like
aliexpress.com and 10% like others.
7%
10%
13%
23%
47%
0% 10% 20% 30% 40% 50%
aliexpress.com
other
pickaboo.com
ajkerdeal.com
daraz.com
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4.2 Findings
From the analysis of primary data, important information comes out in the eye.
1. The people whose age under 18-25 are most like to conduct online shopping.
The age of under 26-40 people are comparatively low who conduct online
shopping and under age 18 there are very low number of people online
consumer.
2. Most of people like physical shopping. The peoples who like online shopping
are comparatively low from physical shoppers.
3. The people who prefer online shopping because of fast shopping and time
saving. A partial number of people brand conscious, price sensitive and
believe on trust.
4. Most of people who conduct online shopping judge web site by popularity. A
certain amount of people judge by rank and low number of people judge by
web decoration and number of viewers.
5. People choose online shopping because of no travel to shop. Some people
conduct online shopping because of wide range of product, easy payment and
no hidden cost.
6. Most of people spend 5-10 hours in a week for surfing web site. Some people
spend less or more.
7. Most of people compare product before purchase from different web sites.
8. People are most like to purchase garments product through online. Some
people like to purchase electronic product, convenience goods and cosmetics.
9. Most of people spend 1000-3000tk for a single purchase.
10. Most of people evaluate e-retailer before purchasing product.
11. Most of people prefer cash on delivery as online payment method. A few
numbers of people prefer bKash and debit/credit card.
12. Most of people believe that online payment is secured. A low number of
people don’t trust online payment system is secured.
13. A certain number of people return product after purchasing product.
14. Most people get full refund because of returning product and some people get
half and partial refund.
15. Most e-retailer refund amount less than five days. Some e-retailer takes more
days.
39
16. Most of people don’t face problem at the time of conducting online shopping.
Only a few number of people face problem. Most of them are faced product
damage problem.
17. Most of people are satisfied for conducting online shopping. Some people are
dissatisfied.
18. Most of people select multinational company for purchasing branded and
exclusive products and prefer local company for popular and common
products.
40
Chapter 5
Recommendations and Conclusion
5.1 Recommendations
After analyzing data and findings, some recommendation can be given. That are-
1. It’s needed to more decorate websites to attract customers for online shopping.
2. The people in Khulna region whose age above 30 need to inspire for online
shopping.
3. It is needed to increase product quality and satisfying the customers by fulfill
of promise.
4. E-retailer should send product to customer’s door at certain time.
5. E-retailer should stay connected with customer after selling products.
6. The price of a product is different in different websites. E-retailer should take
care of it so that customers may not be panicked.
7. Payment method should be more secured.
8. E-retailer should take care of transportation system so that product may not
damage and lost.
9. E-retailer should develop refund system more smooth.
10. It is need more advertisement and smoothness to shift customer from physical
to online shopping.
5.2 Conclusions
Due to rapid growth of technology, business organizations have switched over from
the traditional method of selling goods to electronic method of selling goods.
Business organizations use internet as a main vehicle to conduct commercial
transactions. Online stores do not have space constraints and a wide variety of
products can be displayed on websites. Now-a-days people are being deluxe and busy.
As a result they prefer online shopping for saving their valuable time. There is also
other benefit as they can compare same product from different websites. In this case,
they are able to know the actual price. People find out all kind of product by online,
they don’t need to go physically different places. It is very easy to make payment
through online. People get more and more facilities at the time of online shopping. As
a result online shopping becomes more popular day by day.
41
References
Aaker, D.A., Kumar, V. & Day, G.S. (1998). Marketing Research 6th edition. John
Wiley & Sons,Inc.
AcNielson Report (2005) Global consumer attitudes towards online
shopping,online:http://www.kr.en.nielsen.com/reports/GlobalConsumerReports.shtml,
(Retrieved 2011-25-04).
Andrew, J. R & Vanitha, S. (2004). A typology of online shoppers based on shopping
motivations. Journal of Business Research. Vol. 57 (2004) PP.748– 757
Boudraeu, M.C and Watson R.T (2006). “Internet Advertising Strategy Alignment”
Internet Research. Vol.16 (1), PP.23-37
Forsythe, S. M. and Shi, B. (2003). Consumer patronage and risk perceptions in
internet shopping. Journal of Business Research, 56, PP. 867-875
https://www.scribd.com/document/98721128/Literature-Review
https://www.sciencedirect.com/science/article/abs/pii/S0148296301002739
https://www.coursehero.com/file/p6rnb7r/According-to-a-report-ACNielsen-Report-
on-Global-Consumer-Attitudes-towards
https://www.ukessays.com/essays/marketing/customer-satisfaction-toward-online-
shopping-provider-marketing-essay.php
http://live.online.se/wip/publishedarchive/ucla-internet-2001.pdf
Kent, R. (2007) Marketing research approaches, methods and applications in Europe,
Italy: rotolito printing
Kumar, R. (1996), Research Methodology- A Step by Step Guide for Beginners, Sage,
London.
Ming, H.H. (2009). Shopping mode choice: Physical store shopping versus e-
shopping. PP.86-99
42
Robinson, H., Riley, F.D., Rettie, R., & Rolls,W, G. (2007). The role of situational
variables in online grocery shopping in the UK. The Marketing Review,Vol 7(1),
PP.89-106.
Saunders, M.N.K., Lewis, P. and Thornhil, A. (2000), Research Methods for Business
Students, Prentice Hall, London
Webcheck (1999). ”Marketing and selling to the South African web user”, online:
http://www.webckeck.co.za, (Retrieved 2011-25-03).
43
Questionnaire
Hello, I am a student of MBA at North Western University, conducting a descriptive
research to know about online shopping in Khulna region. Your participation will
help me to fulfill this research. Thank You.
Name:
Date:………...…....….
E-mail:
Gender: Male / Female
1. What’s your age?
(a) Under 18 (b) 18-25 (c) 26-33 (d) 34-50
2. Which shopping method is comfortable for you?
(a) Online shopping (b) Physical shopping
3. Why you prefer online shopping?
(a) Brand conscious (b) Trust (c) Price (d) Fast shopping & time saving
4. How you judge web site for shopping?
(a) By rank (b) Well decoration (c) Number of viewers (d) Popularity
5. Which motivational factor you prefer to do online shopping?
(a) Easy payment (b) Wide range of products (c) No travel to shop (d) No
hidden cost
6. How many times did you have online shopping during last one year?
Ans: ……...…….
7. On the average how much time (per week) do you spend surfing the web?
(a) 0-5 hours (b) 5-10 hours (c) 11-15 hour (d) More than 16 hours
8. Do you compare price and product specification before purchase?
(a) Yes (b) No
9. What type of commodity did you purchase through online shopping?
(a) Garments product (b) Cosmetic (c) Electronic product (d) Convenience
good
If any other..............................................................
10. Select an approximate amount you would spend on a single online purchase—
(a) Less than 1000 (b) 1000-3000 (c) 3001-5000 (d) More than 5000
11. Do you evaluate merchant (e-retailer) for purchasing product in web site?
(a) Yes (b) No
44
12. Which payment method did you use at the time of online purchase?
(a) bKash (b) Debit/Credit card (c) Cash on delivery (d) Visa/Master
card
13. What do you think, payment on online is—
(a) Secured (b) Unsecured
14. Do you return product after purchasing?
(a) Yes (b) No
If ‘Yes’ what about refund-
(a) Fully refund (b) Half refund (c)Partial refund (d) Certain percent
How much time they take to refund-
(a) Less than 5 days (b) 5-10 days (c) 10-15 days (d) more than 15 days
15. Have you felt any problem while conducting online purchase?
(a) Yes (b) No
If ‘Yes’ what kind of problem?
(a) Delay in delivery (b) Cheap quality of product (c) Product damage (d) Non
delivery
If any other, Please specify..........................................................................
16. Are you satisfied in terms of payment, delivery and product during purchase
on online?
(a) Yes (b) No (c) Neutral
17. What is your overall satisfaction/dissatisfaction level after purchasing product
on online?
(a) Vary satisfied (b) Satisfied (c) Dissatisfied (d) Very
dissatisfied
18. Which web site do you like most for purchasing commodities?
(a) ajkerdeal.com (b) daraz.com (c) pickaboo.com (d) aliexpress.com
If other………………………………………………
 If you want to share anything about the experience of online shopping, please
express below-
45
Calculations
Rank 6 20%
Well decoration 3 10%
Number of viewers 3 10%
Popularity 18 60%
Total respondent 30
20%
10%
10%
60%
0% 20% 40% 60% 80%
Rank
Well decoration
Number of viewers
Popularity

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Online Shopping Behavior: A Study in Khulna City

  • 1. 1 Online Shopping Behavior: A Study in Khulna City Thesis report submitted in partial fulfillment of requirement for the Degree of Master of Business Administration (MBA) Supervised By Farzana Akther Senior Lecturer Department of Business Administration North Western University, Khulna Prepared By Sheikh Sabbir Ahamed ID: 20181016501 Department of Business Administration North Western University, Khulna Date of Submission: 29-12-2018
  • 2. 2 Online Shopping Behavior: A Study in Khulna City
  • 3. 3 Letter of Transmittal December 29, 2018 Convener, Internship and placement Committee Department of Business Administration North Western University, Khulna Subject: Submission of Thesis Dear Sir, With due respect, It is my pleasures to submit my research report titled “Online Shopping Behavior: A Study in Khulna City” that has an integral part of my degree requirement. I put my best effort to follow the instructions of you in preparing this report. This research program is very much valuable to me as it help me to gain experience from practical field. I try to the maximum competence to meet as the dimensions required for this report. However some aspects are unintentionally overlooked. It is hoped that you would ignore any discrepancies considering my limitations. Your positive action regarding this matter would be very much helpful for my academic as well as professional career. I, therefore, would like to request you to accept my report and oblige thereby. Sincerely yours, Sheikh Sabbir Ahamed ID: 20181016501 Supervised by: Farzana Akther Senior Lecturer Department of Business Administration North Western University, Khulna
  • 4. 4 ACKNOWLEDGEMENT Thanks to Al-mighty Allah for blessing in completing the report within the schedule time. I also want to thank especially to my honorable supervisor Farzana Akther, Senior Lecurer, North Western University, Khulna for her inspiring guidelines, valuable suggestion, constructive criticism and constant help to make this report schedule time. And last but the least I would like to express my gratitude to all of my respondents for giving me the necessary data and information for my research program that I have completed, who help me without considering any business purpose and also sharing this practical experience.
  • 5. 5 Abstract In recent world, people want to do anything in easiest way. In this case, people adapt internet to find anything and purchase. This research shows the online purchasing behavior of Khulna citys people. This is a descriptive type research. In this research, study locations have selected by judgment sampling. The locations are Rupsha, Shib bari mor, Picture place mor and Sonadanga. The total number of sample is 30. The respondents are both male and female. Respondents are selected from those locations following simple random sampling technique. From the people of those locations are asked individually about online shopping. People who are response selected as respondents. A simple questionnaire has designed for collecting primary data. The collection of primary data from survey have been analyzed by Microsoft Excel and input to Microsoft World. After analyzing, important information comes out as findings. The information includes why people purchase through online. After that, recommendations take place as the result of analyzing and findings. Online shopping makes people life easy and it is developing day by day.
  • 6. 6 Table of Content Contents Abstract Chapter 1: Introduction 1.1 Background of Study 1.2 Objectives of the Study 1.3 Scope of the Study 1.4 Limitations of the Study Chapter 2: Literature Review Chapter 3: Methodology 3.1 Type of Research 3.2 Sources of Data 3.3 Population of Study 3.4 Sample Size 3.5 Sampling Technique 3.6 Tools and Techniques of Data Analysis 3.7 Research Construction and Operational Definition Chapter 4: Analysis and Findings 4.1 Analysis 4.2 Findings Chapter 5: Recommendations and Conclusion 5.1 Recommendations 5.2 Conclusion References Appendix A-1 Questionnaire A-2 Calculations Page(s) v 1 2 2 2 3-7 8 8 8 9 9 9 9-11 12-31 32-33 34 34 vi-vii viii-ix x
  • 7. 7 Chapter 1 Introduction 1.1 Background of the Study The recent growth of the Internet and the World Wide Web makes it appear that the world is witnessing the arrival of a completely new technology. In fact, the Web now considered being a major driver of the way society accesses and views information is the result of numerous projects in computer networking, mostly funded by the federal government, and carried out over the last 40 years. The projects produced communications protocols that define the format of network messages, prototype networks, and application programs such as browsers. This research capitalized on the ubiquity of the nation's telephone network, which provided the underlying physical infrastructure upon which the Internet was built. E-business refers to the integration of electronic technology in business functions. It includes the use of computers and digital networks for internal operations as well as the Internet for communication and e-commerce. The evolution of businesses toward increasing e-business functions dates from the widespread use of personal computers in the 1980s and the development of the commercial Internet in the 1990s. This evolution is ongoing as e-businesses transition to mobile technology. Online shopping was invented and pioneered in 1979 by Michael Aldrich in the United Kingdom. He connected a modified domestic television via a telephone line to a real-time multi-user transaction processing computer. The system was marketed beginning in 1980 and offered mainly business-to-business systems that were sold in the UK, Ireland, and Spain. One the earliest consumer shopping experiences was Book Stacks Unlimited, an online bookstore created by Charles M. Stack in 1992. Stack’s store began as a dial-up bulletin board two years before Amazon was founded by Jeff Bezos. In 1994, Book Stacks Unlimited moved to the Internet as Books.com and was eventually acquired by Barnes & Noble. Online shopping in Bangladesh is a new idea and since the e-commerce protocol by the government of Bangladesh it has become much easier and is now popular in Bangladesh. A recent survey shows that Bangladesh is an emerging market for the online sectors and it has a growing market of around 2 billion BDT. The introduction
  • 8. 8 of 3G mobile internet boosted the online retail industry significantly. The main items sold are clothing, electronics, toiletries and gifts. 1.2 Objectives of the Study The main objective of the study is to know the consumer behavior towards online shopping in Khulna regions people. Besides this, there is another objective. The objective is  To know about online purchasing interest of the people in Khulna city. 1.3 Scope of the Study The study of online shopping behavior in Khulna region people will help me to complete my MBA degree also improve my CGPA. It’s also helping me to learn how to conduct a research. The research will help me to improve my knowledge about online shopping consumer perception. It will bring the scenario of online shopping criteria of Bangladesh in my eyes. 1.3 Limitations of the Study Almost every study has some limitations. So, in this study, there are some limitations. The limitations are- 1. The time for study is very limited. 2. There is no budget for this study. 3. The selection of respondents is difficult. 4. The sample size is very small. It is difficult to measure all people who purchase through online from this small sample. 5. It is very difficult to gather accurate information from respondents.
  • 9. 9 Chapter 2 Literature Review Global retailers are stepping up technology spend as more consumers prefer to shop from the comfort of their homes, and Indian IT services firm Wipro sees such spend driving its growth. "Digital natives are coming," says Srinivas Pallia a senior vice president at Wipro who heads the business unit that offers technology solutions to retailers in the US and Europe. (Indu Nandakumar), 2012. American online retail giant Amazon.com has made an entry into the Indian market with Junglee.com, an online shopping site powered by the $ 48 billion company. The site which went live on Thursday morning says that it’s an online shopping service by Amazon "which enables customers to find and discover products from online and offline retailers in India and from Amazon.com”. (Jayadevan P K), 2012. While interactions in the real world shopping are mainly based on face-to-face activities between consumers and service personnel’s, interactions in electronic commerce take place mainly through the retailer’s Web site. This study investigated the relationship between various characteristics of online shopping and consumer purchase behavior. (Chung-HoonPark), 2010. While the cognitive effort is related to purchasing decisions, physical and emotional efforts are associated with consumer participation in the production/operations process. Although there has been a lack of literature addressing physical and emotional efforts, many studies (Fennema and Kleinmuntz, 1995; Fiske and Taylor, 1984) have attempted to examine the issue of cognitive (or mental) efforts and have consistently found that most individuals have quite limited cognitive resources and, acting as cognitive misers, conserve these resources during decision-making endeavors. Online shopping is basically a process of selling and buying of goods and services on World Wide Web. As (Forsythe and Shi, 2003) explains” Internet shopping has become the fastest-growing use of the Internet; most online consumers, however, use information gathered online to make purchases off-line”.
  • 10. 10 According to a report (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2005) published on www.acnielsen.com, one tenth of the world population is shopping online , till October 2005, 627 million people have done online shopping , and according to the same report Germans and British are on the top of the list on Online Shopping. Additionally report (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2005) published on www.acnielsen.com confirms that Products most purchased online are Books on the top followed by DVD/Video/Games and Plane Reservations, the payment method that is being used mostly is Credit Card. As above stats confirms internet activity as growing fast and Sweden has always been on high heels in Internet Usage and online Shopping in Europe. According to a report on (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2005) shows on the list of top 20 internet purchaser countries Sweden is on number nine following Japan and USA. As Forsythe and Shi (2003) mention internet users can be categorized in to two Internet Shoppers and Internet Browsers, Internet shoppers are the people who shop online whereas internet browsers are the people who just browse the internet other than shopping purpose. Convenience has always been a prime factor for consumers to shop online. Darian(1987) mention that online shoppers carry multiple benefits in terms of convenience, such as less time consuming, flexibility, very less physical effort etc. According to the Robinson, Riley, Rettie and Wilsonz (2007) the major motivation for online purchasing is convince in terms of shop at any time and having bundles of items delivered at door step. Webcheck’s (1999) study shows that convenience factor is one of the biggest advantages of online shopping. Through online purchase consumers can easily compare the price than the traditional purchase. So price comparison is also another convenience factor of online shopping. Time savings is one of most influencing factors of online shopping. Browse or search an online catalogue can save time and patience. People can save time and can reduce
  • 11. 11 effort by shopping online. According to Rohm and Swaminathan’s (2004), one possible explanation that online shopping saves time during the purchasing of goods and it can eliminate the traveling time required to go to the traditional store. Unexpectedly time saving is not the motivating factor for the consumers to shop online (Corbett, 2001) because it takes time receiving goods or delivery. But time saving factor can be seen through different dimensions i.e. “person living in Florida can shop at Harod’s in London (through the web) in less time than it takes to visit the local Burdines department store” Website design and online shopping activity is one of the vital influencing factors of online shopping. Website design, website reliability/fulfillment, website customer service and website security/privacy are the most attractive features which influence the perception of the consumer of online buying Shergill & Chen (2005). Kamariah and Salwani (2005) claims the higher website quality, the higher consumer intends to shop from internet. Web design quality has important impacts on consumer choice of electronic stores, stated by Liang and Lai (2000). Website design one of the important factor motivating consumers for online shopping. Almost 100,000 on-line shopper’s surveyed by (Reibstein, 2000) shows that web site design was rated as important factor for online shopping. Another study conducted by Zhang, Dran, Small, and Barcellos (1999, 2000), and Zhang and Dran (2000) indicated that website design features of the website are important and influencing factors that leads consumer’s satisfaction and dissatisfaction with a specific website. A study conducted by Yasmin and Nik (2010) shows a significant relationship between online shopping activity and website features. Website design features can be considered as a motivational factor that can create positive or negative feelings with a website (Zhang, et al 1999). A study by Li and Zhang (2002), if website is designed with quality features it can guide the customers for successful transactions and attract the customers to revisit the website again. However, worse quality website features can also hamper online shopping.
  • 12. 12 Safe and secured transaction of money and credit card information increases trust and decreases transaction risk. In 1995, UK has introduced Fraud free electronic shopping and later on Europe and Singapore introduced secured electronic transaction (SET). According to Bhatnagar and Ghose (2004) Security is one of the attribute 14 which limits buying on the web as they claim that there is a large segment of internet shoppers who don’t like to buy online because of their thinking about the security of their sensitive information. Cuneyt and Gautam (2004) claims trust in the internet shopping with advanced technology, and frequent online shopping to the internet being secured as a trustworthy shopping channel. Online shoppers in terms of demography are another important aspect. We would like to study demography in terms of age, gender, income and education as are there any differences while consumers shop online, differences within the age groups such as does online shopping attracts elder people or younger people. Studies have shown that online shoppers mainly consist of people with Higher education and income and working in middle to senior management or professionals (Kehoe et al., 1998; Hoffman et al., 1996). Sim and Koi, (2002) states as main discriminating factors appeared to be gender and income. Customer segmentation is important for electronic commerce success, Berry (1999). Technology is updating day by day. In recent world, IT department is developing rapidly because of the touch of digitalization. As a result offline work is turn into online. Business is also turning to online because of many facilities. Retailers are conducting business in whole world by online. They also show their product to large number of potential customers in easy way. It is easy to promote products on online. In present, peoples are familiar to internet. All ages of peoples are using internet because of low cost. As a result e-business is growing rapidly. People like to evaluate same category products what are offered from different companies. It is easy to compare product on online than offline. In real world shopping is mainly based on face to face communication between customer and sellers. But now the seller create web site and provide all information about product to give attention the customers. In
  • 13. 13 this case e-commerce takes the place. Retailers attract customer demographically. They make segmentation by gender, age, location. A well designed web site with good segmentation attract customer. Now-a-days people are more conscious. They search information as much they can before purchase from different type of web sites. Online shopping save time. In this busy world many people haven’t time to purchase in physical way. People can find out brands easily also easy to find out fancy product by online. Young generation like to purchase accessories like dvd, books, video games by online from different countries. By online, It is possible to buy product from anywhere in the world. The payment method is easy and secured. E-retailers provide facility to send product to customer door. As a result people shift mind to online shopping to make life easier.
  • 14. 14 Chapter 3 Methodology 3.1 Type of Research The choice of a research approach depends on the nature of the research study. Basically, all research approaches can be classified into three categories: exploratory, causal, and descriptive. In this case, the nature of research is descriptive. Under descriptive approach, there are four famous methods to collect data: secondary data, surveys, panels, and observational and other data (Malhotra, 2004). Saunders, Lewis, and Thornhil (2000) suggests that quantitative research can be faster as compare to qualitative as it is possible to forecast the time schedule, whereas qualitative can be relatively long in duration. Research projects normally done for academic reasons are limited to time as this research is also being done for academic purpose and is time limited so that is why going to prefer quantitative approach. The research will show the online purchasing behavior of Khulna regions people. 3.2 Sources of Data Primary and Secondary both methods are used for collecting data. Survey is used for collecting primary data by structured questionnaire. 3.3 Population of the Study All the people of Khulna region who make purchase through online is the population. But some specific locations are selected for the study. The locations are Rupsha, Shib Bari mor, Sonadanga, Picture Place mor. Those specific locations are selected for important reasons. In Rupsha at Shipyard, there are 4 freelancer offices. In those offices, Employees are worked on online with different countries people. They may work in product or marketing department through online. In Shib Bari mor, there are many offices what are conducting e-business. There is also a university. The student of the university is familiar to online shopping. In Picture Place mor, a number computers shops are situated. The buyers of computers and accessories may also familiar to online shopping. At last Sonadanga, there is a university. A large number of students can be familiar to online shopping.
  • 15. 15 3.4 Sample Size Total numbers of sample are thirty (30). The respondents are both male and female. There is no ratio between them because of time limitation. 3.5 Sampling Technique At first, judgment sampling technique is applied for sampling. All the people of those locations are the sample who purchase through online. In this case, all employees, computer buyers, students are the sample. After that, simple random sampling technique is applied for selection of respondents. The people of those locations are asked individually about doing online shopping as follow the method of simple random sampling. People who are response selected for respondent. Questionnaires are developed for collecting data. Questionnaires are distributed by hand to respondents and enough time given to respondents to fill the questionnaire to reduce sampling error. Questionnaire is constructed in simple language in order to reduce the risk of ambiguity. 3.6 Tools and Techniques of Data Analysis Microsoft Excel is used for analyzing data. At first, all the collected data are saved in excel for stored. After that, all data are analyzed by command and show result in bar diagram. 3.7 Research Construction and Operational Definition There are many factors influences and affect customers in related to how consumers make purchasing decision. The purchasing decision process starts long before actual purchase and continues long after. Usually in more routine purchases, consumers often reserve or skip some of purchase decision process. The researcher used 8 independent factors in this study. Search Engines Internet users basically used search engines to find out needed information. Since search engines mainly help users’ judgment to rank Websites, electronic retailers should make sure Website quality can satisfy and serve the particular search engine’s demands.
  • 16. 16 Online Shopping Malls Online shopping malls provided an unprecedented chance for e-retailers to reach a global customer base and selling various kinds of consumer products. Many e- retailers joined with online shopping malls in order to have more customers visit their websites. The online shopping malls and Websites are sponsors by many e-retailers that utilized information generated in order to explore more marketing opportunities. Conveniences Convenience and saved time are offered by online shopping which are two motivating factors for online purchases. The main reason that motivated consumers to shop online is conveniences. Convenient access to product information can facilitate and help shoppers’ making an online purchases decision. Price Price is a critical factor for customer on online shopping. However, argued that often online shoppers are not price-sensitive, cause of these consumers’ price comparisons among different e-retailers on each product was time-consuming and the price difference was very small. Brand Brand is defined as the quality related to the products or services. Often, brand is referred to the seller’s reputation and consumer loyalty in associated with the seller. Brands and features increases as more information is obtained, knowledge of the available and consumer awareness. E-retailers should strengthen shopper trust and believe by buying famous Website such as google.com to promote the online purchase rate. Refund Online consumers demanded that e-retailers should provide an unconditional refund policy if the online costumer are not satisfied with the product. E-retailers should have refund policies to convince online consumers that they easily return products and get refunds if they are not satisfied, or exchange products for free within a reasonable timeframe.
  • 17. 17 Promotion E-retailers may use promotions with time limits to encourage consumers to shop on Website. However, promotional activates for online products or services are not successful for e-retailers because there was not effective ways to inform consumers of promotional activities. Security Security is a critical successful factor for e-commerce. Retail e-commerce would fail if Internet users feel on lacking a great degree of confidence. The primary reason indicated of the most buyers who don’t shop online cause of afraid to reveal personal credit card information to retailers or over the internet.
  • 18. 18 Chapter 4 Analysis and Findings 4.1 Analysis The primary data what are collected from survey analyzing for findings. Age of respondents Figure 1 In this chart, it has shown that the age of respondents. The total respondents are 30. There is no respondent below the age of 18. Respondent whose age under 18-25 years is 87%. Respondent whose are under 26-33 years and 34-50 years both are separately 7%. 0% 87% 7% 7% 0% 20% 40% 60% 80% 100% Under 18 18-25 26-33 34-50
  • 19. 19 Judgment web site for shopping Figure 2 In this chart, it is shown, the judgment of selecting web site for shopping. 60% respondents select web site of its popularity. 10% of respondents select for the cause of number of viewers. 10% respondents are voted for well decoration and 20% respondent’s judge by rank of web site. 20% 10% 10% 60% 0% 10% 20% 30% 40% 50% 60% 70% Rank Well decoration Number of viewers Popularity
  • 20. 20 Type of commodity purchase through online shopping Figure 3 It shows 10% respondents purchase convenience goods, 20% electronic products, 20% cosmetics, 50% garments products. 50% 20% 20% 10% 0% 10% 20% 30% 40% 50% 60% Garments products Cosmetics Electronic products Convenience goods
  • 21. 21 Compare price and product specification before purchase Figure 4 In this figure, it shows 7% of respondents are voted for no and 93% yes. 93% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No
  • 22. 22 Approximate amount spends on a single online purchase Figure 5 This chat shows single online purchase amount. From 30 respondents, 7% spends more than 5000tk for a single purchase, 0% spends 3001-5000, 70% spends 1000- 3000 and 23% spends less than 1000. 23% 70% 0% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% Less than 1000 1000-3000 3001-5000 More than 5000
  • 23. 23 Reason for preferring online shopping Figure 6 In this figure, 23% respondents are band conscious. 3% respondents prefer because of trust and 10% respondents are price sensitive. 63% of all respondents prefer because of fast shopping and time saving. 23% 3% 10% 63% 0% 10% 20% 30% 40% 50% 60% 70% Brand concious Trust Price Fast shopping & Time saving
  • 24. 24 Evaluation of merchant (e-retailer) for purchasing product in web site Figure 7 It shows, 30% of respondents don’t evaluate merchant or e-retailer before purchase and 70% evaluate. 70% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No
  • 25. 25 Motivational factor for preferring online shopping Figure 8 In this figure, it is shown that, the motivational factors for choosing online shopping. From 30 respondents 13% are voted for no hidden cost, 43% no travel to shop, 20% wide range of products and 23% easy payment. 23% 20% 43% 13% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Easy payment Wide range of products No travel to shop No hidden cost
  • 26. 26 Payment on online Figure 9 This chart shows, the payment method of online shopping secured or unsecured. From 30 respondents, 33% are voted for unsecured and 67% voted for secured. 67% 33% 0% 10% 20% 30% 40% 50% 60% 70% Secured Unsecured
  • 27. 27 Payment method for online purchase Figure 10 This chart shows the payment method of 30 respondents. From them 0% use visa/master card, 3% use debit/credit card, 60% use cash on delivery and 37% use bKash. 37% 60% 3% 0% 0% 10% 20% 30% 40% 50% 60% 70% Bkash Cash on delivary Debit/Credit card Visa/Master card
  • 28. 28 Facing problem while conducting online purchase Figure 11 From 30 respondents, 27% respondents have faced problem and 73% haven’t face any problem. 73% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No
  • 29. 29 Type of problem what respondents face Figure 12 In this chart, 22 respondents are faced problem at the time of purchasing. From them 0% face non delivery problem, 55% face product damage, 18% face cheap quality product and 27% face delay in delivery. 27% 18% 55% 0% 0% 10% 20% 30% 40% 50% 60% Delay in delivery Cheap quality product Product damage Non Delivery
  • 30. 30 Return product after purchasing Figure 13 This chart shows, return product after purchasing. From 30 respondents 63% don’t return product and 37 % return. 37% 63% 0% 10% 20% 30% 40% 50% 60% 70% Yes No
  • 31. 31 Refund method after returning product Figure 14 From 30 respondents, 18 respondents return product after purchasing. 17% of 18 respondents get 17% certain percent refund, 11% get partial refund, 28% get half refund, 44% get full refund. 44% 28% 11% 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Fully refund Half refund Partial refund Certain percent
  • 32. 32 Time has taken for refund Figure 15 This chart shows, how much time e-retailer takes to refund. From 18 respondents 17% get refund more than 15 days, 17% get 10-15 days, 17% get 5-10days and 50% get less than 5 days. 50% 17% 17% 17% 0% 10% 20% 30% 40% 50% 60% Less than 5 days 5-10 days 10-15 days More than 15 days
  • 33. 33 On the average how much time (per week) spends surfing the web site Figure 16 This figure shows how much time respondents spend web site for surfing. Here, 20% respondent spends more than 16 hours, 10% spends 11-15 hours, 43% spends 5-10 hours and 0-5% spends 27%. 27% 43% 10% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0-5 hours 5-10 hours 11-15 hours More than 16 hours
  • 34. 34 Shopping method Figure 17 In this figure, it has shown that respondent who prefer shopping method. From 30 respondents 63% are prefer physical shopping and prefer 37% online shopping 37% 63% 0% 10% 20% 30% 40% 50% 60% 70% Online Physical
  • 35. 35 Satisfied/dissatisfied in terms of payment, delivery and product during purchase on online Figure 18 This chart shows customer perception of payment, delivery and product during purchase. From 30 respondents, 53% are neutral, 23% are negative and 23% are positive. 23% 23% 53% 0% 10% 20% 30% 40% 50% 60% Yes No Neutral
  • 36. 36 Overall satisfaction/dissatisfaction level after purchasing product on online Figure 19 The chart shows respondents’ satisfaction or dissatisfaction level. 3% of them are very dissatisfied, 13% are dissatisfied, 80% are satisfied and 3% are very satisfied. 3% 80% 13% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Very satisfied Satisfied Dissatisfied Very dissatisfied
  • 37. 37 Most liked web site for purchasing commodities Figure 20 Respondents most like to purchase from those websites. From 30 respondents, 47% of them like daraz.com, 23% like ajkerdeal.com, 13% like pickaboo.com, 7% like aliexpress.com and 10% like others. 7% 10% 13% 23% 47% 0% 10% 20% 30% 40% 50% aliexpress.com other pickaboo.com ajkerdeal.com daraz.com
  • 38. 38 4.2 Findings From the analysis of primary data, important information comes out in the eye. 1. The people whose age under 18-25 are most like to conduct online shopping. The age of under 26-40 people are comparatively low who conduct online shopping and under age 18 there are very low number of people online consumer. 2. Most of people like physical shopping. The peoples who like online shopping are comparatively low from physical shoppers. 3. The people who prefer online shopping because of fast shopping and time saving. A partial number of people brand conscious, price sensitive and believe on trust. 4. Most of people who conduct online shopping judge web site by popularity. A certain amount of people judge by rank and low number of people judge by web decoration and number of viewers. 5. People choose online shopping because of no travel to shop. Some people conduct online shopping because of wide range of product, easy payment and no hidden cost. 6. Most of people spend 5-10 hours in a week for surfing web site. Some people spend less or more. 7. Most of people compare product before purchase from different web sites. 8. People are most like to purchase garments product through online. Some people like to purchase electronic product, convenience goods and cosmetics. 9. Most of people spend 1000-3000tk for a single purchase. 10. Most of people evaluate e-retailer before purchasing product. 11. Most of people prefer cash on delivery as online payment method. A few numbers of people prefer bKash and debit/credit card. 12. Most of people believe that online payment is secured. A low number of people don’t trust online payment system is secured. 13. A certain number of people return product after purchasing product. 14. Most people get full refund because of returning product and some people get half and partial refund. 15. Most e-retailer refund amount less than five days. Some e-retailer takes more days.
  • 39. 39 16. Most of people don’t face problem at the time of conducting online shopping. Only a few number of people face problem. Most of them are faced product damage problem. 17. Most of people are satisfied for conducting online shopping. Some people are dissatisfied. 18. Most of people select multinational company for purchasing branded and exclusive products and prefer local company for popular and common products.
  • 40. 40 Chapter 5 Recommendations and Conclusion 5.1 Recommendations After analyzing data and findings, some recommendation can be given. That are- 1. It’s needed to more decorate websites to attract customers for online shopping. 2. The people in Khulna region whose age above 30 need to inspire for online shopping. 3. It is needed to increase product quality and satisfying the customers by fulfill of promise. 4. E-retailer should send product to customer’s door at certain time. 5. E-retailer should stay connected with customer after selling products. 6. The price of a product is different in different websites. E-retailer should take care of it so that customers may not be panicked. 7. Payment method should be more secured. 8. E-retailer should take care of transportation system so that product may not damage and lost. 9. E-retailer should develop refund system more smooth. 10. It is need more advertisement and smoothness to shift customer from physical to online shopping. 5.2 Conclusions Due to rapid growth of technology, business organizations have switched over from the traditional method of selling goods to electronic method of selling goods. Business organizations use internet as a main vehicle to conduct commercial transactions. Online stores do not have space constraints and a wide variety of products can be displayed on websites. Now-a-days people are being deluxe and busy. As a result they prefer online shopping for saving their valuable time. There is also other benefit as they can compare same product from different websites. In this case, they are able to know the actual price. People find out all kind of product by online, they don’t need to go physically different places. It is very easy to make payment through online. People get more and more facilities at the time of online shopping. As a result online shopping becomes more popular day by day.
  • 41. 41 References Aaker, D.A., Kumar, V. & Day, G.S. (1998). Marketing Research 6th edition. John Wiley & Sons,Inc. AcNielson Report (2005) Global consumer attitudes towards online shopping,online:http://www.kr.en.nielsen.com/reports/GlobalConsumerReports.shtml, (Retrieved 2011-25-04). Andrew, J. R & Vanitha, S. (2004). A typology of online shoppers based on shopping motivations. Journal of Business Research. Vol. 57 (2004) PP.748– 757 Boudraeu, M.C and Watson R.T (2006). “Internet Advertising Strategy Alignment” Internet Research. Vol.16 (1), PP.23-37 Forsythe, S. M. and Shi, B. (2003). Consumer patronage and risk perceptions in internet shopping. Journal of Business Research, 56, PP. 867-875 https://www.scribd.com/document/98721128/Literature-Review https://www.sciencedirect.com/science/article/abs/pii/S0148296301002739 https://www.coursehero.com/file/p6rnb7r/According-to-a-report-ACNielsen-Report- on-Global-Consumer-Attitudes-towards https://www.ukessays.com/essays/marketing/customer-satisfaction-toward-online- shopping-provider-marketing-essay.php http://live.online.se/wip/publishedarchive/ucla-internet-2001.pdf Kent, R. (2007) Marketing research approaches, methods and applications in Europe, Italy: rotolito printing Kumar, R. (1996), Research Methodology- A Step by Step Guide for Beginners, Sage, London. Ming, H.H. (2009). Shopping mode choice: Physical store shopping versus e- shopping. PP.86-99
  • 42. 42 Robinson, H., Riley, F.D., Rettie, R., & Rolls,W, G. (2007). The role of situational variables in online grocery shopping in the UK. The Marketing Review,Vol 7(1), PP.89-106. Saunders, M.N.K., Lewis, P. and Thornhil, A. (2000), Research Methods for Business Students, Prentice Hall, London Webcheck (1999). ”Marketing and selling to the South African web user”, online: http://www.webckeck.co.za, (Retrieved 2011-25-03).
  • 43. 43 Questionnaire Hello, I am a student of MBA at North Western University, conducting a descriptive research to know about online shopping in Khulna region. Your participation will help me to fulfill this research. Thank You. Name: Date:………...…....…. E-mail: Gender: Male / Female 1. What’s your age? (a) Under 18 (b) 18-25 (c) 26-33 (d) 34-50 2. Which shopping method is comfortable for you? (a) Online shopping (b) Physical shopping 3. Why you prefer online shopping? (a) Brand conscious (b) Trust (c) Price (d) Fast shopping & time saving 4. How you judge web site for shopping? (a) By rank (b) Well decoration (c) Number of viewers (d) Popularity 5. Which motivational factor you prefer to do online shopping? (a) Easy payment (b) Wide range of products (c) No travel to shop (d) No hidden cost 6. How many times did you have online shopping during last one year? Ans: ……...……. 7. On the average how much time (per week) do you spend surfing the web? (a) 0-5 hours (b) 5-10 hours (c) 11-15 hour (d) More than 16 hours 8. Do you compare price and product specification before purchase? (a) Yes (b) No 9. What type of commodity did you purchase through online shopping? (a) Garments product (b) Cosmetic (c) Electronic product (d) Convenience good If any other.............................................................. 10. Select an approximate amount you would spend on a single online purchase— (a) Less than 1000 (b) 1000-3000 (c) 3001-5000 (d) More than 5000 11. Do you evaluate merchant (e-retailer) for purchasing product in web site? (a) Yes (b) No
  • 44. 44 12. Which payment method did you use at the time of online purchase? (a) bKash (b) Debit/Credit card (c) Cash on delivery (d) Visa/Master card 13. What do you think, payment on online is— (a) Secured (b) Unsecured 14. Do you return product after purchasing? (a) Yes (b) No If ‘Yes’ what about refund- (a) Fully refund (b) Half refund (c)Partial refund (d) Certain percent How much time they take to refund- (a) Less than 5 days (b) 5-10 days (c) 10-15 days (d) more than 15 days 15. Have you felt any problem while conducting online purchase? (a) Yes (b) No If ‘Yes’ what kind of problem? (a) Delay in delivery (b) Cheap quality of product (c) Product damage (d) Non delivery If any other, Please specify.......................................................................... 16. Are you satisfied in terms of payment, delivery and product during purchase on online? (a) Yes (b) No (c) Neutral 17. What is your overall satisfaction/dissatisfaction level after purchasing product on online? (a) Vary satisfied (b) Satisfied (c) Dissatisfied (d) Very dissatisfied 18. Which web site do you like most for purchasing commodities? (a) ajkerdeal.com (b) daraz.com (c) pickaboo.com (d) aliexpress.com If other………………………………………………  If you want to share anything about the experience of online shopping, please express below-
  • 45. 45 Calculations Rank 6 20% Well decoration 3 10% Number of viewers 3 10% Popularity 18 60% Total respondent 30 20% 10% 10% 60% 0% 20% 40% 60% 80% Rank Well decoration Number of viewers Popularity