Students buying behaviour for electronic products

Consumer Behaviour for Online Buying Of Electronic Products
SYNOPSIS
ON
“CONSUMER BEHAVIOUR FOR
ONLINE BUYING OF ELECTRONIC
PRODUCTS”
SUBMITTED TO: SUBMITTED BY:
DR. VISHAKHA Sunil chichra
KUTMBALE III SEM.
Consumer Behaviour for Online Buying of Electronic Products Page 1

Contents
No. Title Page No.
1. Introduction
3
2. Literature Review
8
3. Objectives
11
4. Methodology
12
5. References
13

INTRODUCTION
Online shopping is one of the most widely used words in the business world. It is very
common in developing and developed countries. Now virtual store, market space are very
commonly used word. The online shopping network has established its footprints in India and
is spreading all over the country at a very fast pace. India is a country where products get
duplicated very easily like one can get a pair of sunglasses of a big brand name at throw away
price in low end market places .Although the look of the sunglasses may be same as that of
the original but there sure is a change of quality which a common man may not be able to
make out. In this way many people get tricked very easily. There are plenty of other items
that can be easily duplicated in India. Another problem faced by the consumers in India is the
variation in the prices of the products that is observed quiet often. A product may cost at a
high cost at high end markets, whereas the same product may be available at a cheaper price
in the low end markets. It can be defined as:
“Online shopping is defined as a computer activity/exchange performed
by a consumer via a computer-based interface, where the consumer's computer is
connected to, and can interact with a retailer's digital storefront to purchase the
products or services over the internet”.
There are online shopping web portals that provide products at discounted prices and the
prices are fixed so that there is less possibility of the same product at high prices in the
market. The products offered are of good quality and there are less chances of duplication.
Apart from branded imported products there are domestic products that are offered through
online shopping that are quite reliable.
There is a good scope of online shopping in India as people are more concerned about the
products that they buy and they can easily find products while sitting at home through
logging onto their systems. In this way they can save money and unnecessary expenses while
shopping. There are less chances of duplicate products as the websites only promote products
that are genuine and well established.
Shopping through the online shopping portals is quiet convenient in the modern Indian
society where time and money is equally precious. Through social shopping people can get
opinion from experts and can make friends online whose wise suggestions prove worth in
most of the cases.
Online shopping in India has created a new scope for retailers as they can come forward and
advertise their products easily and the amount paid is much less than they pay while
advertising over television or by other means. The most wonderful of all is that through
online shopping portals one can buy products at discounted rate and the rates get discounted

further if the person remains loyal to the website .It means one can save more while
shopping.
This study states that 27.2 million, i.e. nearly 60 percent of online population in India visited
retail sites in November 2011 which is an 18 percent increase from the last year.
16.5 percent of the total online population visited Deal or Coupon sites which show the
increasing popularity of these sites. The increased online visibility of retailers through the
marketing campaigns and the awareness of people about the sites make the people shop
through web. According to Kedar Gavane, ComScore Director for India, “The online channel
is playing an important role in connecting the retailers and customers. The retailers have to
take advantage of this growth by addressing the needs of potential customers like
convenience in ordering and attractive pricing.”
The concept of online shopping developed gradually, after the launch of the
World Wide Web. In 1990 Tim Berners-Lee created the first World Wide Web server and
browser. It opened for commercial use in 1991. In 1994 other advances took place, such as
online banking and the opening of an online pizza shop by Pizza Hut. In 1995, Amazon
launched its first online shopping site, and in 1996, e-Bay appeared. Internet is changing the
way consumers shop and buy goods and services, and has rapidly evolved into a global
phenomenon. Many companies have started using the Internet with the aim of cutting
marketing costs, thereby reducing the price of their products and services in order to stay
ahead in highly competitive markets. Companies also use the Internet to convey
communicates and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Customers use the Internet not only to buy the
product online, but also to compare prices, product features and after sale service facilities the
will receive if they purchase the product from a particular store. Many experts are optimistic
about the prospect of online business. In addition to the tremendous potential of the E-commerce
market, the Internet provides a unique opportunity for companies to more
efficiently reach existing and potential customers. Although most
of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence .It has been more
than a decade since business-to-consumer E-commerce first evolved. Scholars and
practitioners of electronic commerce constantly strive to gain an improved insight into
consumer behaviour in cyberspace.
Amazon leads the list with 6.8 million visitors representing a 14.7 percent of online
population. Apple.com worldwide sites came second with 3.4 million followed by
Samsung.com with 2.8 million and Flipkart.com with 2.7 million. The whole time popular
item Books, showed a negative growth of three percent from last year. In the user
Demographics, male users dominate with 61.8 percent compared to the 38.2 percent females.
As I mentioned earlier that online shopping provides lots of advantage, among all, these two
advantages is noteworthy, one is lots of product variety and availability of much supplier so
that price advantage can be prevail in the online shopping.
The first reason why people love online shopping is the effectiveness and easiness. The
common rule of online shopping is consisting of four steps: going to the website; getting the

shopping cart; picking the stuff or product; and purchasing through credit cards. Therefore, it
is very easy to do. In addition, people can save energy and time as well. Many kinds of online
shops are available in the internet selling many kinds of stuff needed by people.
Modern life of people is getting highly influenced by the computer peripherals. Even getting
a peripheral of your choice has become much easier than before with the help of online free
shipping stores. So now you can purchase everything right from miniature peripherals to
funny cool peripherals sitting at your home, that too at a very low cost. Computer peripherals
shopping have become interesting and convenient through such online electronic stores.
With change in time, technology has evolved rapidly as well. Those days have passed when
you were required to stand in long lines to purchase a product of your choice. However, with
the assistance of internet, you can get the preferred product within few clicks of your mouse.
To purchase them, you can browse the internet as many manufacturing companies have their
websites where you can order products without going through much hassle. You are assured a
convenient time when shopping online.
Choosing a peripheral surely becomes a daunting task as there are wide ranges of cool
peripherals. There is nothing you can miss at online electronic stores. You can buy
computers, batteries, memory cards, pen drives, earphones, headphones, micro cards,
Bluetooth, wireless mouse and keyboard, USB, webcam and so on just with a single click.

Ranking & Websites Services offered
1. Amazon It is the largest internet based company who
serves most of the computer peripherals.
2. Flip kart It is a mega online store which offers wide
range of electronics and others.
3. EBay It has unique business concept where a seller
can sell the products directly to buyer.
4. Snap deal It is online marketing and shopping company
which has existence in more than 400 cities in
India.
5. Jabong It has been a front runner in online shopping
website who offers attractive discounts,
promotional and deals for customers on many
fashion, home decors and lifestyle variants.
6. Junglee It is an online website which provides
electronics, lifestyle, accessories, movie
CD/DVD, home decor products etc.
7. Tradus It offers wide range of wholesale and retail
products online. It is an auction and shopping
company.
8. Homeshop18 It is an online shopping website and retail
distribution network company.
It is interesting to know that most bought accessories online is mobile phones (32%) followed
by Mp4 Players/iPods (21%) and Digital Cameras (19%). The availability of models (or the
lack of it) in local stores or wide range of options available on internet (33%) seem to be the
main driver of the sales. As expected, people who are making online purchases are young
crowd between 19-35 years of age (78%). Better prices, discounts and hot deals (37%) form
their major motivation while making a decision to purchase online. However they would like
more discount/hot deals (39%) and convenient and secured payment options (29%) to make
more purchases online.
Late delivery of products (37%) seems to be the main addressable factor preventing people
from making online transactions. Besides, quality not up-to mark also seems to be the major
cause holding back people from making online purchases. Surprisingly, the preferred Mode
of Payment is Credit/Debit Cards (37%), followed by Cash on Delivery (33%) and Online
Banking (27%). Even though, the preferred Mode of Payment is still Credit/Debit Cards
(37%), Cash on Delivery (33%) and Online Banking (27%) is also fast catching up.

With the increasing size, more demand by youth and change in the behaviour of youth
towards shopping has clearly indicated a huge market is available to the incumbents and
existing performers And at this stage it is important to understand the buying behaviour of
Indian customers towards online shopping which is mandatory for a great marketing strategy
by the players in this industry. The size and growth rate of this industry was never like this
before And considering all this, the present study has made an attempt to understand the
online shopping behaviour of Indian customers

LITERATURE REVIEW
1. Dr.Renuka Sharma , Dr. Kiran Mehta and Shashank Sharma (2014) conducted a
study on “Understanding online shopping behaviour of Indian shoppers” Although
results obtained through data analysis has given clear indication of Increasing
significance of online stores in the life of Indian people. The e-stores are frequently
visited by the shoppers. The ease and convenience provided by these stores for 24x7
has made very easy shopping for consumers worldwide. The analysis has documented
that the Indian customers are also getting addicted to the online shopping and they do
like various features of online shopping as by rest of the world. But the statistics
available has shown that Indian market is still not a fully developed market for e-tail
stores. There is huge scope of web-stores in various areas and in almost all the
segments. The young population is the biggest attraction of this industry and they may
contribute substantially to the growth of online shopping in India. The majority of
internet users are youngsters, the majority of goods and services demanded are related
to only this segment. Considering the empirical evidences of the present study it can
be concluded that:
 The e-commerce market has a great potential for youth
segment.
 The buying behaviour of youth can be elaborated through
Findings obtained through survey.
 The market segments like toys, flowers and house wares must
be targeted by the marketers on through e-tail penetration.
2. Preeti Khitoliya (2014) conducted research Paper on “Customers Attitude and
perception towards online shopping” . research results unveiled that 47% respondent
shop online frequently followed by 30% who shop online seldom and 23% respondent
had never tried it which suggests that online shopping is relatively less popular in
India. Male and female respondent had shown similar trend in online shopping
behaviour. Majority of the respondent in all age group shop online for convenience
followed by wide variety and discount deal and least under peer influence. This
clarified that respondents’ prime motive for online shopping is convenience and wide
variety. Observation of the figures revealed that disclosure of personal cr.card and
dr.card information is the biggest concern in online shopping and the second most
concern is that troubles the respondents is the misrepresentations on web by the e-tailer.
Many respondents found that the quality, size and the colour of the product
differ from what they claim to posses and displayed on website.
3. Jongeun Kim (2004) “ Understanding consumers shopping and purchasing
behaviours” his conclusion states that despite the remarkable growth in internet sales,
there is evidence to suggest that there are many consumers shopping with intent to
buy at retail web sites who of some reason do not complete the transaction. The
purpose of this study was to examine those individuals that completed an Internet

purchase and to compare them to those who just shop and brows. The study examined
four consumer groups, non-web shoppers, web store visitors with no intention of
purchasing, internet browsers with an intention to purchase and internet buyers.
4. Adil bashir (2013) examined “Consumer behaviour towards online shopping of
electronics in Pakistan” this study was accomplished to determine the consumer
behaviour in Pakistan towards online shopping for electronic products. Online
shopping is increasing in Pakistan but acceleration of online shopping is not as rapid
as compared to other Developed countries like USA and UK. In research, online
consumer behaviour theories applied named as goal oriented online buyer and
experimental motives of online shopping and highlighted into consumer
characteristics, online consumer behaviour, factor predicting online shopping and
consumer mindset in online shopping. TAM (Technology Acceptance Model) and
TRM (Theory of Reasoned Action) identifies factors such as internal beliefs,
attitudes, and intention for online shopping; study revealed that online shopping is
mostly influenced by social network/circles and personal experience. The online
shopping is getting popular among the young generation as they feel it more
comfortable, time saving and convenient. It is analyzed from the survey that when a
consumer makes a mind to purchase online electronic goods he or she is affected by
multiple factors.
5. Zia ul Haq Researched on Perception Towards online shopping: An Empirical study
of Indian Customers” who’s result shows that the perception of online shoppers is
independent of their age and gender but not independent of their qualification &
gender and income & gender The analytical results of our study further indicate
relationships between consumers’ Perceptions of the factors that influence their
intention to buy through online. More specifically, consumers’ perceptions of the
customer service, commitment and web security of online purchasing exhibit
significant relationships with their online buying intention.Web security has received
the most consistent support as factors that influence online buying. Marketers need to
realize that the online marketing environment affects the way consumers view and
develop relationships. In this context, to add value to the online shopping experience
and to build relationships, web security is everything.
6. Narges delafrooz, Laily hj. Paim and Ali khatibi done the research on “Students’
online shopping behaviour “ who’s results shows that utilitarian orientations,
convenience, price and wider selection are important determinants of users’ attitude
toward online shopping. The findings of the study imply that students are looking for
more convenience (time and money saving), cheaper prices and wider selection when
they shop online, making them as the dominant factors that motivate consumers to
shop online. On the other hand, there were not significant relationship between users’
attitude toward online shopping and homepage, customer service, and fun. This may
be due to the low level of involvement of the young consumers who have experience
in online shopping (only 4.2 % buy through online regularly), In addition, a lower
price is the main reason online shoppers tend to purchase through internet because of

competitive pressure, especially from new online retailers using price as a main
competitive weapon to attract customers.
7. MD. Ashraful Haque Nabil studied on “Consumer Behaviour in the tablet computer
market in Moscow” and this conclusion is that Russia is one of the fastest growing
markets in the world economy. Being the central business hub of the country Moscow
plays vital role in Russian business. Understanding the consumer behaviour in market
in any certain region is very important in order to sell any product properly.
Companies making business in tablet computer market in Moscow act according to
the consumer behaviour of the market which is will also apply for any new company
interested in the similar market. The results of this study show that tablet computers
are very popular technological products among most of the respondents. This finding
is very straight forward among young and middle aged consumers. People buy tablets
based on their budget, preferences, requirements, brand choosing criteria, age and
profession. It indicates the common features of consumer buying behaviour in
Russian tablet market within Moscow region.
It has to be drawn that offering a good range of ICT products such as tablets can be
extremely successful in a huge market like Moscow. The demand for such products is
already very high. The market of Moscow is huge, and Tablet computer market in
Moscow is growing fast, especially the young generations are considered the most
active buyer of tablet computer. As tablet computers are becoming more popular, a
specialized shop for just tablet computers would be very successful.

OBJECTIVES
 To compare the various online shopping sites for computer accessories (electronic
products)
 To study the impact of Socio-Cultural factors on online buying behaviour.
 To study the Perception of Indian Consumers regarding the online buying behaviour
with reference to awareness and customers satisfaction.
 To assess the ability of E-Shopping sites to attract and retain customers in Indian
Environment.
 To analyze the Shift in Buying Behaviour among Indian Consumers with reference to
buying channel.

METHODOLOGY
This major research project is purely based on secondary data and secondary sources.
Secondary data analysis involves the analysis of an existing dataset, which had previously
been collected by another researcher, usually for a different research question.
 The collection of original data by a researcher is called primary data collection.
Secondary data analysis is widely used by researchers undertaking analysis of
quantitative data, and has begun to be applied to qualitative data.
 There are many advantages to undertaking secondary, rather than primary, analysis.
Savings in relation to resources, in terms of time, money and personnel. To begin
with, using data collected by someone else means that the data is available relatively
quickly. The researcher does not have to go through the long and costly processes of
obtaining funding, designing and implementing their own survey, or paying for a
sampling frame, conducting fieldwork, data preparation and data cleaning.
 It is often described as being less expensive than primary. This can be the case but not
always. The activities need to be planned and closely managed to ensure that they do
not absorb significant amounts of time and therefore cost.
 Much online research is undertaken by secondary data gathering using search engines,
directories, forums and so on.
 Secondary data provides a basis for primary research and can, sometimes, meet
current research needs without the need to continue to a primary stage.
SOURCES OF SECONDARY DATA
There are many sources to collect the secondary data and mainly the secondary data have
already being collected by someone and published through many sources such as:
Magazines
Newspapers
Radio
Research’s
Term papers
News Channels
Booklets
Internet
Pamphlets etc

References
1. Preeti Khitoliya (2014) “customers attitude and perception towards online
shopping” PARIPEX, Indian journal of research, Volume : 3 | Issue : 6 | June 2014,
ISSN - 2250-1991
2. Kumar, Vinay and Dange, Ujwala, “A Study of Factors Affecting Online Buying
Behaviour: A Conceptual Model” (August 25, 2012). Available at
http://dx.doi.org/10.2139/ ssrn.2285350 last accede 31 May 2014 | [10] Karve
3. Sunil (January, 2014) “Study of youth with special reference to virtual 3d online
shopping” Sai Om Journal of Commerce & Management, Volume 1, Issue 1, pp 29-
32 | | | Websites | http://www.hindustantimes.com/technology/webservice-reviews/
amazon- launches-online-shopping-site- in- india/ article1-1071213.aspx last
accede 31 May 2014
4. Hong, Weiyin and Thong, James Y.L. and Tam, Kar Yan, “The Effects of
Information Format and Shopping Task on Consumers’ Online Shopping Behaviour:
A Cognitive Fit Perspective” Journal of Management Information Systems, Vol. 21,
No. 3, pp. 149-184, 2004-2005. Available at SSRN: http://ssrn.com/abstract=1003584
last accede 31May 2014
5. Dr. Renuka Sharma, Dr. Kiran Mehta and Shashank Sharma “Understanding
online shopping behaviour of Indian shoppers”, IJMBS Vol. 4, Issue 3, Spl- 1 July -
Sept 2014, ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print)
6. Sorce, P.; Perotti, V.; Widrick, S., “Attitude and age differences in online buying”,
International Journal of Retail & Distribution Management, Vol. 33, No. 2/3, pp. 122-
132, 2005.
7. Lee, M & Johnson, K. K. P. (2002), “Exploring differences between internet apparel
purchasers, browsers and non-purchasers”, Journal of fashion Marketing and
Management, 6(2), 146-157.
8. Jongeun Kim (2004) “Understanding consumers shopping and purchasing
behaviours”, dept. Of apparel Merchandising and design, research for degree of
philosophy, faculty of Oklahoma state university
Some websites:
www.economictimes.com
www.ecommercetimes.com
www.google.com
www.scribd.com
www.wikipedia.com

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