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A PROJECT REPORT
ON
A Study On Online Shopping Behavior Of Hostel
Students
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS OF DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
To
2014-2015
Submitted To: Submitted By:
Tarun Gupta Shikhar Mani
Assistant Professor Roll No. 1310101128
Invertis University
2
CERTIFICATE
To Whom It May Concern
This is to certify that Shikhar Mani, currently undergoing Bachelor of Business
Administration (BBA) from Invertis University, Bareilly, has completed and submitted the
project on “Online Shopping Behavior Of Hostel Students” under my guidance.
I wish him a bright future and every success in life.
Dr. Rachna Saxena Mr. Tarun Gupta
(H.O.D, B.B.A & B.COM Programme) (Assistant Professor)
Project Guide
3
ACKNOWLEDGEMENT
Doing such project report is an arduous task in itself. I was fortunate enough to get support
from a large number of people whom I shall always remain grateful. I would like to express
my deep gratitude to all those who, directly or indirectly made this project report possible.
First of all I would like to thank my parents for encouraging me throughout my life, whatever
the circumstances were, their blessing were always with me and my dearest sibling for her
love.
I would like to express my gratitude to Mrs. Rachna Saxena (HOD BBA, Invertis
University, Bareilly) who gave me an opportunity to do a research study on the chosen topic.
I would like to express my sincere thanks to my project guide Mr. Tarun Gupta
(Assistant Professor, Department Of Management, Invertis University, Bareilly) who
devoted his precious time from his busy schedule to guide and help me at all times. It is under
his valuable guidance, constant interest and encouragement that I have been able to complete
this project.I would also like to thank Mr. Rajeev S.Bhandari(Assistant Professor,
Department Of Management, Invertis University, Bareilly) for his invaluable support and
encouragement.
I would appreciate all the respondents who took out their valuable time to give their views
and filled the questionnaire. Lastly, I take this opportunity to thank my friends who chipped-
in with some valuable suggestions for the betterment of this project.
4
PREFACE
As an essential and obligatory part of my course i undertook a research project on
“Online Shopping Behavior Of Hostlers Of Invertis University”
The research has helped me to get a practical knowledge about to ananlyse environment
stimulus, changes, and current requirements as an important suffix to the theortical
knowledge into the business environment.
One cannot merely depend on the theortical knowledge,classroom lectures make the
fundamental concepts but the research facilities the help in learning of the practical situation.
It is in the sense that the research has significant role to play in the subject of business
management. To develop healthy managerial and administrative skills in potenial knowledge
of real environment.
Shikhar Mani
B.B.A V “B”
5
TABLE OF CONTENT
S.No. CONTENT Page No.
1 OBJECTIVES 6
2 RESEARCH METHODOLOGY 7-8
3 INTRODUCTION 9-12
6 DATA INTERPRETATION AND ANALYSIS 13-41
7 FINDINGS 42-44
8 SUGGESTIONS AND RECOMMENDATIONS 45
9 CONCLUSIONS 46
10 LIMITATIONS 47
11 BIBLIOGRAPHY 48
12 QUESTIONNAIRE 49-51
6
OBJECTIVES OF THE STUDY
1. To study the Online Shopping behavior pattern amongst hostlers of Invertis
University.
2. To study the factors affecting the Online Shopping behavior of hostlers of Invertis
University.
3. To identify their preferences towards different e-shopping websites and the features
of websites in general.
4. To study perception of hostlers and their satisfaction level towards online shopping.
7
RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem. It may be understood as
science of studying how research problem is done scientifically.
The procedure using, which researchers go about their work of describing, explaining and
predicting phenomena, is called Methodology. Methods compromise the procedures used for
generating, collecting, and evaluating data. Methods are the ways of obtaining information
useful for assessing explanation.
RESEARCH DESIGN:
Descriptive Research study is done for the study of consumer buying behavior.
RESEARCH INSTRUMENT:
Questionnaire is the research instrument used here.
METHODS OF DATA COLLECTION:
 PRIMARYDATA
Primary data are those, which are collected for the first time, and they are original in
character. A suitable combination of Questionnaire techniques, & discussion with the
respondents was used to collect the required primary data. Primary data gives higher accuracy
and facts, which is very helpful for any research and its findings. The primary data has been
collected through structured questionnaire.
 SECONDARYDATA
The secondary data are those, which are already collected by someone for some purpose and
are available for the present study. Secondary data was collected from the magazines,
websites, newspapers, and other such sources.
8
STATISTICAL TOOLS USED
 PERCENTAGE METHOD
In this project percentage method test and used. The following is the Formula:
Percentage of Respondent = Number of Respondents x 100
Total number of Respondent
SAMPLING PLAN:
Sample Size : 75
Sampling Unit : Hostel students of Invertis University( belonging to the age group of 20-
25)
Sample Procedure : Random Sampling
Sampling Method : Questionnaire
Research Design : Descriptive research design
Survey Area : Invertis University Hostel
9
INTRODUCTION
India will have the world’s second-largest Internet user base by this December,
overtaking the US. This is among the many interesting findings in the ‘Internet in
India 2015’ Report released by the Internet and Mobile Association of India (IAMAI)
and IMRB International.
According to report, India will have 402 million Internet users by December 2015 and
its user base has increased by 49 per cent compared to last year. In October, 317
million Indian users accessed Internet. China has the largest Internet user base, with
over 600 million users.
It is not surprising anymore that mobile is responsible for a big chunk of this growth.
In Urban India, the mobile Internet user base grew by 65 per cent over last year to
reach 197 million in October 2015. In Rural India, the mobile Internet user base is
expected to reach 87 million by December 2015 and 109 million by June 2016.
Ninety-four per cent of users access the Internet through their mobile phones in
Urban India. However, 64 per cent also use the desktop or laptop to access the
Internet. But 90 per cent of those who use the mobile to access the Internet consider it
their primary device for browsing.
An unsettling revelation is the gender gap when it comes to access to Internet. Men
account for 71 per cent of Internet users, while women account for just 29 per cent.
The demographic data in the report also point to some interesting trends. In rural
India, 75 per cent of the users fall in the 18–30 years age bracket, while 11 per cent
are younger than 18 and 8 per cent are in the 31–45 years group. In Urban India, 32
per cent of monthly active users are college-going students.
Online communication, social networking, and entertainment are the top reasons for
accessing the Internet. Only 24 per cent of urban users and 5 per cent of rural users
accessed the Internet for online shopping.
India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6
billion in 2013.
Increasing Internet penetration and growing preference for shopping online will drive
the e-commerce market in India to USD 15 billion by 2016 with a whopping 100
million people going online to shop(as revealed by Google India)
Compared to 8 million in 2012, about 35 million people are now buying everything
from apparel to electronics to cosmetics and furniture from online stores.
10
When it comes to e-tailing electronics and apparel are the biggest categories in terms
Of sales.
Online travel accounts for nearly 71 percent of the e-commerce business in India.
E-tailing, on the other hand, accounts for only 8.7 percent of organised retail and a
minuscule 0.3 percent of total retail sales.
Online shopping (sometimes known as e-tail from "electronic retail" or e-shopping) is a
form of electronic commerce which allows consumers to directly buy goods or services from
a seller over the Internet using a web browser. Alternative names are: e-web-store, e-shop, e-
store, Internet shop, web-shop, web-store, online store, online storefront and virtual store.
Mobile commerce (or m-commerce) describes purchasing from an online retailer's mobile
optimized online site or app.
The year 1991 noted a new chapter in the history of the online world where e-commerce
became a hot choice amongst the commercial use of the internet. At that time nobody would
have even thought that the buying and selling online or say the online trading will become a
trend in the world and India will also share a good proportion of this success.
Popular E-commerce sites/companies In India:
Flipkart:
Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal.
Where it is headquartered in Bangalore, Karnataka..
Flipkart has launched its own product
range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.
11
In May 2014, Flipkart received $210 million from DST Global, in July 2014 it raised $1
billion led by existing investors Tiger Global and South Africa's media group Naspers and in
May 2015 it raised $550 million from some of its existing investors. Flipkart's last
fundraising round in May 2015 had pegged its valuation at $15 billion.
Amazon:
Amazon.com, Inc. often referred to as simply Amazon, is an American electronic
commerce and cloud computing company with headquarters in Seattle, Washington. It is the
largest Internet-based retailer in the United States. Amazon.com started as an
online bookstore, later diversifying to sell DVDs,Blu-
rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook downloads/str
eaming,software, video games, electronics, apparel, furniture, food, toys and jewelry. The
company also produces notably, Amazon, Kindle, E-book readers, Fire tablets, Fire
TV and Fire Phone and is the world's largest provider of cloud
infrastructure services Amazon also sells certain low-end products like USB cables under its
in-house brand Amazon Basics.
Amazon has separate retail websites for United States, United
Kingdom and Ireland, France, Canada, Germany,Italy, Spain, Netherlands, Australia, Brazil,
Japan, China, India and Mexico. Amazon also offers international shipping to certain other
12
countries for some of its products. In 2011, it professed an intention to launch its websites
in Poland and Sweden.
In 2015, Amazon surpassed Wal-Mart as the most valuable retailer in the United States
by market capitalization.
Snapdeal:
Snapdeal is an online marketplace, New Delhi, India. The company was started by
Kunal
Bahl, a Wharton graduate as part of the dual degree M&T Engineering and Business
program
at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010. Investors in
the
Company include Softbank Corp, Ru-Net Holdings, Tybourne Capital,
PremjiInvest, Temasek Holdings, Bessemer Venture Partners, IndoUS Ventures,
Kalaari
Capital, Saama Capital, Nexus Ventures, Intel Capital, and Ratan Tata. When
Snapdeal
acquired FreeCharge in an equity deal, investors Sequoia Capital India, Valiant
Capital,
Sofina, Ru-Net Holdings, and Tybourne Capital became shareholders in Snapdeal.
13
DATA INTERPRETATION AND ANALYSIS
1. Do you like to shop online?
a)Yes 70
b)No 5
Interpretation:
93% hostel students like to shop online.
Out of the total females 44% shop online and out of the total boys 56% shop online.
Male
(yes)
56%
Female(
yes)
44%
Boys and Girls
Shopping Online
Yes
93%
No
7%
Students who like to
shop online
14
2. If yes, how often do you make online purchase?
Total Male Female
Once in a month 13 9 4
Once in 2-3 months 19 9 10
More than once in 6 months 3 2 1
1-3 times in a year 10 5 5
As & when required 25 14 11
Once in a month
19%
Once in 2-3 months
27%
More than once
in 6months
4%
1-3 times in a year
14%
As & when required
36%
How frequently are people purchasing online?
15
Interpretation:
• 36% of students do online shopping whenever its needed or required. Out of girls
32% girls shop once in 2-3 months compared to 23% of boys in the same
category.19% of students “shop once in a month”.
• Only 4% of students fall in category of online shoppers who shop “More than once in
6months”.
4
9
10
9
1
2
5 5
11
14
F M F M F M F M F M
Once in a month Once in 2-3 moths More than once in
6months
1-3 times a year As & when required
16
3. What is the average amount that you spend per purchase while shopping online?
Up to Rs 500 6
Rs 500-1000 30
Rs 1000-5000 33
Above Rs 5000 1
Interpretation:
• 47% of student spend an average amount of Rs1000-Rs5000 per purchase while shopping
online followed by 43% who like to spend Rs500-Rs700 per purchase.
Upto Rs 500
9%
Rs 500-1000
43%
Rs 1000-5000
47%
Above Rs 5000
1%
Average amount that people spend on
e-shopping
17
4. Generally when do you prefer making online purchase?
During Festive Season 3
During heavy discount period offers (online shopping festival) 17
Depends upon mood or desire 32
As & when required 18
Interpretation:
46% of students prefer to shop online depending upon their mood or desire,26%
of students shop as and when required followed with 24% of students who only
shop during heavy discount period offers(like-online shopping festivals, big
billion day etc) .
During Festive
Season
4%
During heavy
discount period
offers(online
shopping festival)
24%
Depends upon
mood or desire
46%
As and when
required
26%
Online Shopping preference period
18
5. How do you make payments mostly when shopping online?
Debit Card 8
Credit Card 7
Cash On Delivery 54
Third Party 0
Interpretation:
73% students would make C.O.D payments when shopping online and 12% would do
using debit card and 10% with credit card and 0 % with third party i.e. pay tm wallet
or PayPal.
Debit Card
12%
Credit Card
10%
Cash On Delivery
78%
Third Party(e.g
Paypal,Paytm
Wallet etc)
0%
Preferable Payment Mode For E-Purchase
19
6. What purchase(s) do you usually make when you shop online?
Apparels 26
Electronics Goods 28
Accessories 34
Books 24
Beauty and Personal Care Products 8
Footwear 25
Tickets (railways or airways) 16
Luggage/Bags 6
Other (sports accessories etc.) 2
Apparels
15%
Electronic Goods
17%
Accessories
20%
Books
14%
Beauty And
Personal Care
Products
5%
Footwear
15%
Tickets(Railways or
airways)
9%
Luggage/Bags
4%
Other(sports
accessories)
1%
Usually Made Online Purchases
20
Interpretation:
20% prefer accessories, 17% prefer electronic goods and 30% prefer apparels and
footwear.14% like to shop for books.
A lot more boys are preferring electronics goods compared to girls.
13
24
20
16
2
17
14
4
2
13
4
14
8
6
8
2 2
0
Usually Made Online Purchase
male female
21
7. Which of the following websites do you prefer for online shopping?
a) Flipkart.com 53
b) Amazon. In 12
c) Jabong.com 6
d)Snapdeal.com 19
e) Others (Homeshop18, Lens cart etc.) 4
Interpretation:
57% population prefer flipkart,20% like snap-deal and 13
% prefer amazon.
Flipkart.com
57%
Amazon.in
13%
Jabong.com
6%
Snapdeal.com
20%
Others(Homeshop
18,Lenscart etc)
4%
Most preferred E-shopping Sites
22
8. Which medium do you prefer for online shopping?
Male Female
a) Laptop/P.C 43 29 14
b)Smartphone 27 10 17
c) Tablet 0 0 0
Laptop/P.C
61%
Smartphone
39%
Tablet
0%
Preferred Medium For Online Purchase
23
Interpretation:
Laptop is a preferred medium over smart phones as 61% are using laptops and
39% are using smart phones.
Laptop/P.C Smartphone Tablet
29
10
0
14
17
0
Preferred Medium For Online Purchase
Male Female
24
9. What is/are the reason(s) for e-shopping?
a) Saves Money 23
b) Saves time 31
c) Convenient 16
d) Range & Availability of Products 30
e) Others (ease, fast, reliable etc.) 0
Saves Money
23%
Saves Time
31%
Convenient
16%
Range &
Availablity Of
Products
30%
Others(ease,fast
etc.)
0%
Common Reasons To Shop Online
25
Interpretation:
31% find e-shopping time saving,23% find it money saving and 16% find it
convenient.
Saves Money Saves Time Convenient Range &
Availability Of
Products
Others(ease,etc)
19
20
9
18
0
4
11
7
12
0
Common Reasons To Shop Online
Male Female
26
10. Have you felt any problem in online purchasing?
a) Yes 21
b) No 49
if yes, what kind of problems(s) ?
a) Delay in delivery 12
b) Cheap Quality 4
c) Damaged Product 2
d) Non-Delivery 5
e) Others (fake) 1
Yes
30%
No
70%
Problems Faced In Online Shopping
27
Interpretation:
70% people have never faced any problem in e-shopping and out of 30% people
who have faced some problems in e-shopping 50% say the problem was “delay in
delivery”.
Non-delivery has 21% and cheap quality has 17% share.
Delay In Delivery
50%
Cheap Quality
17%
Damaged
Product
8%
Non-Delivery
21%
Others(fake)
4%
Problems Faced In Online Shopping
28
11. How do you rate your experience of Online Purchase?
a) Very much satisfied 13
b) Satisfied 50
c) Not satisfied 1
d) Can’t say 5
Interpretation:
73% students are satisfied and 19% say they are very much satisfied with their
online purchasing experience.
Very Much
Satisfied
19%
Satisfied
73%
Not Satisfied
1%
Can't Say
7%
Satisfaction Level Of Students
29
12. Do you feel secure while shopping online?
a) Yes 60
b) No 10
Interpretation:
86% feel secure while e-shopping and 14% of the population is insecure.
Yes
86%
No
14%
Secure While E-Shopping
30
13. Does cash on delivery option influences you to do online shopping?
a) Yes 63
b) No 7
Interpretation:
90% of the population says C.O.D option plays an influencing role in e-shopping and 10%
think it doesn’t.
Yes
90%
No
10%
Influence Of C.O.D option on e-
purchase
31
14. How do you like to do online shopping?
a) Through E-shopping websites or using browser 49
b) Through E-shopping Apps 21
Interpretation:
70% students prefer Websites/browsers to shop online whereas 30% prefer using apps.
Through E-
shopping
Websites or using
Browsers
70%
Through E-
shopping Apps
30%
Preferred Mode Of Shopping
32
15. Features you think are necessary for an online shopping website to have?
a) Social Networking Integration 7
b) Multiple Payments 23
c) Privacy & Secure Checkout 19
d) Customer Friendly 30
e) Credibility 9
f) Customer Care Service 23
g)Comparison Between Sites 19
h) Others (review/feedback) 3
33
Interpretation:
Customer friendly feature has a % share of 23% ,18% is of multiple payment gateways and
31% is for customer care service and privacy checkout followed by 14% is for comparison
between sites.
Social Networking
Integration
5%
Multiple Payment
Gateways
18%
Privacy & Secure
Checkout
14%
Customer Friendly
23%
Credibility
7%
Customer Care
Service
17%
Comparison
Between Sites
14%
Others(Review.Feed
back etc)
2%
Important Features For An E-Shopping Site
34
16. Rank the factors which you consider important in refraining/stopping you from shopping
online? (Ranking is to be done numerically like 1, 2, 3, 4…..)
a)Risk Of Identity Theft(Hacking)
b)Risk Of Not Getting What You Paid For
c)Difficulty In Returning Products/Items
d)Waiting To Receive The Product (delivery issues)
e)Complex Compared To Traditional Shopping
f)Lack Of Trust Worthiness Of Vendors
g)Not Being Able To Touch Or See Products
h)More Expensive Than Sold In Retail Stores
35
Categories
Rank 1 Rank 2 Rank3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8
Risk of identity
theft (hacking)
18 8 10 2 9 11 7 10
Risk of Not
Getting What
You Paid For
12 19 13 4 15 2 6 3
Difficulty in
Returning
Products/Items
9 18 9 11 13 4 7 4
Waiting to
Receive the
Product (delivery
issues)
5 8 6 20 11 9 8 8
Complex
Compared To
Traditional
Shopping
2 10 4 8 7 19 15 10
Lack of Trust
Worthiness of
Vendors
5 8 14 7 11 10 8 12
Not Being Able
To Touch & See
Products
13 10 7 7 13 12 9 4
More Expensive
Than Sold In
Retail Stores
12 0 6 5 6 8 15 23
36
Interpretation:
Out of the various reasons for refraining/stopping people for shopping online the 1st
rank is
occupied by “Risk of identity theft”,2nd
rank by “Risk of not getting what you paid for and 3rd
by “Lack of trust worthiness of vendors”.
0
5
10
15
20
25
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank6 Rank 7 Rank 8
Risk Of Identity Theft(hacking)
Risk Of Not Getting What You Paid
For
Difficulty In Returning Products/Items
Waiting To Receive The
Product(delivery issues)
Complex Compared To Traditional
Shopping
Lack Of Trust Worthiness Of Vendors
Not Being Able To Touch & See
Products
More Expensive Than Sold In Retail
Stores
37
17.Do you think the feature of “Track The Order” is an important factor influencing the
online shopping decision?
Yes 62
No 8
Interpretation:
89% think “Track the order” is an influencing factor in e-shopping.
Yes
89%
No
11%
Does The "Track The Order" Feature
Influences To Shop Online?
38
18. Does “free shipping” option motivates you to shop online?
a) Yes 62
b) No 8
Interpretation:
84% believe “free shipping” motivates them to shop online.
Yes
84%
No
16%
Does "free shipping" option
motivates to shop online?
39
19. Do you visit retail stores before purchasing a product online?
a) Yes 15
b) No 55
Interpretation:
21% say they visit retail stores before purchasing anything online.
Yes
21%
No
79%
Visiting Retail Stores Before
Purchasing Online
40
20. Do you search for complete information about the product on the net before making
online purchase?
a) Yes 60
b) No 10
Interpretation:
86% of the population search for complete information on net before e-purchase.
Yes
86%
No
14%
Getting Complete Information On Net
Before E-purchase
41
21. Do you want to add any new category of your choice in the list of e-shopping categories?
a) Yes 3
b) No 67
Interpretation:
96% say they don’t want to add any new category to the list of e-shopping category as they
get everything they want.
Yes
4%
No
96%
Addition of any new category in e-
shopping category
42
FINDINGS
I. Online shopping behavior pattern amongst hostlers:
• Out of total students (boys and girls) 93% likes to do online shopping which is a large
majority. Boys contribute 56% and Girls 44% in the total figure of respondents doing
online shopping.
• 36% of students, a large chunk of population do online shopping whenever its needed
or required. Out of girls 32% girls shop once in 2-3 months compared to 23% of boys
in the same category.19% of students “shop once in a month”.
• 47% of students are willing to spend an average amount of Rs1000-Rs5000 per
purchase while shopping online followed by 43% who like to spend Rs500-Rs700 per
purchase.
Out of boys 2% of boys would spend up to 500 per purchase when they shop online
and 2% would spend above Rs 5000 per purchase compared to 16% of girls who
would spend up to 500 per purchase and 0% on purchase above Rs 5000
• 46% of students prefer to shop online depending upon their mood or desire,26% of
students shop as and when required followed with 24% of students who only shop
during heavy discount period offers(like-online shopping festivals, big billion day etc)
.
• 77% students would make C.O.D payments when shopping online and 11% would do
using debit card and 10 with credit card and 0 % with third party i.e paytm wallet or
paypal.
43
II. Preferences Of Hostel Students While Making Online Purchase
• Accessories and Electronic Goods are the two most preferred online shopping
categories amongst all.
• Preferences of apparels, footwear and books taken in descending order of sequence
are the other three popular choices amongst students.
• In the category of online Ticket purchase, we have 88% boys and only 12% girls and
similarly for Electronic goods we have 86% boys and only 14% girls.
• Beauty/Personal Care products and luggage/bags are the two least preferred
categories.
• The most preferred online shopping website amongst students is Flipkart.com with a
share of 57% votes in its favor then its snapdeal.com followed by Amazon. In.
• Students rarely look for any other alternatives like- jabong, shopclues,
lenscart,voxpop etc.
• Laptop/P.C is preferred by 61% students as a medium for online shopping whereas
39% use Smartphone to get the online shopping experience.
• 55% girls and 26% boys out of the total respective categories chose smart phones.
• 45% girls and 74% boys went for laptop/p.c.
III. Satisfaction And Overall Perception Level Towards E-shopping:
• 70% hostlers have never encountered any sort of problem in their online purchase.
• Delay in delivery is the main issue with the remaining 30% after that its non-delivery
and cheap quality of products.
• 71% students are satisfied with their online shopping experience.
• 86% feel secure when they shop online.
44
IV. Factors That Affect Online Shopping Behavior Of Students:
• Three main reasons that influence hostlers to go for e-tailing in the order of preference
are :
time saving, range and availability of products and economical (saves money).
Relatively less students find convenience as an influencing factor.
“Online shopping saves money” is surely not the mantra for girls as only 17% support
this on the other hand 83% of boys find it really money saving.
• 90% students think C.O.D option influences them to shop online.
• 70% hostlers like to use e-shopping websites or browser to do online shopping and
rest 30% use e-shopping apps.
• A large chunk of students think that an e-shopping website should be customer
friendly first. Approximately 25% want it to be customer friendly.
Multiple payment gateways, customer care service are the other two necessary
features which students look for in an e-shopping website as 35% have chosen these
two features.
• Risk of identity theft, Risk of not getting what you paid for, difficulty in returning
products and lack of trust worthiness of vendors are the four important factors which
would stop or refrain or discourage students from online shopping.(the factors are in
the order of priority)
• 89% students think tracking the order is an important factor which influences their
online shopping decision
• 23% girls out of the total girls don’t consider “tracking the order” feature so
important.
• 84% of students find “free shipping” option as a motivating factor to shop online.
• 79% of students do not visit a retail store before making an online purchase.
• 86% students search for complete information about the product on the net before
making online purchase.
• 96% of students do not wish to add any new category in the list of e-shopping
categories.
4% want to add beer, psychedelic drugs. Alcohol and some personal use
items.
45
SUGGESTIONS AND RECOMMENDATIONS
• On the basis of the findings of my research I would like to give the following
suggestions:
E-commerce websites should come up with lucrative offers on quarterly basis to lure
girls since they shop more (compared to boys)during this period.
Range and Availability of products in the price range of Rs1000-5000 and Rs500-1000
should be given special consideration as 90% of shoppers fall in this category.
E-tailing websites should also work considerably in building trust and friendly relationship
with customers by coming with better privacy policies as this would encourage shoppers to
use other mode of payments like debit cards, credit cards etc as well.
• Since Flip kart has got a strong hold in e-commerce market as the majority prefers it
over other e-shopping websites so it should keep on delivering good and other
websites like Snap deal and Amazon should work on their delivery services, range
and availability of products especially in electronic goods and accessories segment
and making better connect with potential customers to stay in race and make the
competition tougher.
• Around 70% of online shoppers prefer e-shopping websites or browsers over e-
shopping apps so e-tailers should come up with ideas to improve the shopping
experience using browsers.(flipkart has already made an entry with flipkart lite)
• E-commerce sites should take the privacy issue really serious as well as the
deliverance of authentic products with better return policies to make themselves
credible before the eyes of customers.
46
CONCLUSION
 A successful webstore is not the just a good looking website with the dynamic
technical features but is also emphasis on building the relationship with customers
with making money. Firstly understanding the customer’s needs and wants is very
essential for building a relations with the customers keeping companie’s promises
gives a customer a reason to come back and meeting the expectations gives them a
reason to stay.
 It shows the company value towards its customers over the website communication.
Customers needs and the expectations are the not the same age, gender, experience,
culture are all the important factors. Users with more online influence focus on the
variables that directly influence the task .
 To increase the online purchases business must use the significant time and money,
define, design, development, test, implement and maintain the webstore. It is very
easy to lose the customer but very difficult to gain the customer.
 To remain in the online business a webstore should responding the customers emails,
notifying the customers problems and always being honest towards the customer.
 Price factor and after sale factor play an important role in e-commerce business so
online marketers should give due importance to it as well as work on satisfying the
existing customer each time and offer new schemes day by day to attract new ones.
47
LIMITATIONS
1. The Study was confined only to the hostel students of Invertis University so the
study may not be generalized in a broader perspective.
2. As not all respondents would have been able to understand the questionnaire
correctly or misread the questions so there is a little chance of marking wrong answers
or incorrect choices.
3. The study is restricted to only teenagers so in order to make more generalized,
reliable and significant conclusions a study employing larger sample size is needed.
4. Time-constraint has also been one of the limitations.
48
BIBLIOGRAPHY/ REFERENCES
1. Online and upcoming the Internet’s Impact on India by Mckinsey & Company
2. Google India Study reports numbers about online shopping in India; ‘Electronics’ Top
Search but ‘Apparels’ most bought by Team YS January 29 2013.
3. Indian E-Commerce statistics in Wikipedia.
4. Chalam, G. (2014). e - Commerce and its structural Development in India - An
Analysis. The IUP Journal Of Information Technology.
5. Dahiya, D. B. (2013). Challenges in online shopping in India. International journal of
Scientific & Engineering Research.
6. Indian E-commerce companies on Wikipedia.
49
Annexure
Gender: Age: (20-25)
Q1. Do you like to shop online?
a) Yes b) No (then jump to Q16)
Q2.If yes, how often do you make online purchase?
a) Once in a month b) Once in 2-3 months
c) More than once in 6 months d) 1-3 times in a year
e) As & when required
Q3.What is the average amount that you spend per purchase while shopping online?
a) Up to 500 b) Rs 500- 1000
c) Rs 1000-5000 d) Above Rs 5000
Q4. Generally, when do you prefer making online purchase?
a) During Festive season
b) During heavy discount period offers (online shopping festival)
c) Depends upon mood or desire
d) As & when required
Q5. How do you make payments mostly when shopping online?
a) Debit Card b) Credit Card
c) Cash on Delivery d) Third Party (e.g. PayPal, Paytm wallet etc)
Q6. Rank your purchase when you go for online shopping?
a) Apparels b) Electronic Goods
c) Accessories d) Books
e) Beauty & personal care products f) Footwear
g) Tickets (Railways or airways) h) Luggage/Bags
50
Q7. Which of the following websites do you prefer for online shopping?
a) Flipkart.com b) Amazon. In
c) Jabong.com d) Snapdeal.com
e) Others (please specify............)
Q8.Which medium do you prefer for online shopping?
a) Laptop/P.C b) Smartphone c) Tablet
Q9. What is/are the reason(s) for e-shopping?
a) Saves money b) Saves time
c) Convenient d) Range and availability of products
e) Others (please specify.............)
Q10.Have you ever felt any problem in online purchase?
a) Yes b) No
If yes, what kind of problem(s)?
a) Delay in delivery b) Cheap quality
c) Damaged product d) Non-Delivery (address problem)
e) Others (please specify..........)
Q11. How do you rate your experience of online purchase?
a) Very much satisfied b) Satisfied
c) Not satisfied d) can’t say
Q12. Do you feel secure when shopping online?
a) Yes b) No
Q13.Does cash on delivery option influences you to go for online shopping?
a) Yes b) No
Q14. How do you like to do online shopping?
a) Through e-shopping websites or browser b) Through e-shopping app
51
Q15. Features you think are necessary for an online shopping website to have?
a) Social networking integration b) Multiple payment gateways (debit card, credit card etc.)
c) Privacy & secure checkout d) Customer friendly
e) Credibility f) Customer care service
g) Comparison between sites h) others (please specify......)
Q16. Rank the factors which you consider important in refraining/stopping you from
shopping online?
a) Risk of identity theft (hacking)
b) Risk of not getting what you paid for
c) Difficulty in returning products/items
d) Waiting to receive the product (delivery
issues)
e) Complex compared to traditional shopping
f) Lack of trust worthiness of vendors
g) Not being able to touch & see products
h) More expensive than sold in retail store
Q17. Do you think the feature of “tracking the order” is an important factor influencing the
online shopping decision?
a) Yes b) No
Q18.Does “free shipping” option motivates you to shop online?
a) Yes b) No
Q19.Do you visit retail stores before purchasing a product online?
a) Yes b) No
Q20. Do you search for complete information about the product on the net before making
online purchase?
a) Yes b) No
Q21. Do you want to add any new category of your choice in the list of e-shopping
categories?
a) Yes b) No
If yes, then please name...........................................................................................................

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A PROJECT REPORT ON A Study On Online Shopping Behavior Of Hostel Students full project

  • 1. A PROJECT REPORT ON A Study On Online Shopping Behavior Of Hostel Students SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION To 2014-2015 Submitted To: Submitted By: Tarun Gupta Shikhar Mani Assistant Professor Roll No. 1310101128 Invertis University
  • 2. 2 CERTIFICATE To Whom It May Concern This is to certify that Shikhar Mani, currently undergoing Bachelor of Business Administration (BBA) from Invertis University, Bareilly, has completed and submitted the project on “Online Shopping Behavior Of Hostel Students” under my guidance. I wish him a bright future and every success in life. Dr. Rachna Saxena Mr. Tarun Gupta (H.O.D, B.B.A & B.COM Programme) (Assistant Professor) Project Guide
  • 3. 3 ACKNOWLEDGEMENT Doing such project report is an arduous task in itself. I was fortunate enough to get support from a large number of people whom I shall always remain grateful. I would like to express my deep gratitude to all those who, directly or indirectly made this project report possible. First of all I would like to thank my parents for encouraging me throughout my life, whatever the circumstances were, their blessing were always with me and my dearest sibling for her love. I would like to express my gratitude to Mrs. Rachna Saxena (HOD BBA, Invertis University, Bareilly) who gave me an opportunity to do a research study on the chosen topic. I would like to express my sincere thanks to my project guide Mr. Tarun Gupta (Assistant Professor, Department Of Management, Invertis University, Bareilly) who devoted his precious time from his busy schedule to guide and help me at all times. It is under his valuable guidance, constant interest and encouragement that I have been able to complete this project.I would also like to thank Mr. Rajeev S.Bhandari(Assistant Professor, Department Of Management, Invertis University, Bareilly) for his invaluable support and encouragement. I would appreciate all the respondents who took out their valuable time to give their views and filled the questionnaire. Lastly, I take this opportunity to thank my friends who chipped- in with some valuable suggestions for the betterment of this project.
  • 4. 4 PREFACE As an essential and obligatory part of my course i undertook a research project on “Online Shopping Behavior Of Hostlers Of Invertis University” The research has helped me to get a practical knowledge about to ananlyse environment stimulus, changes, and current requirements as an important suffix to the theortical knowledge into the business environment. One cannot merely depend on the theortical knowledge,classroom lectures make the fundamental concepts but the research facilities the help in learning of the practical situation. It is in the sense that the research has significant role to play in the subject of business management. To develop healthy managerial and administrative skills in potenial knowledge of real environment. Shikhar Mani B.B.A V “B”
  • 5. 5 TABLE OF CONTENT S.No. CONTENT Page No. 1 OBJECTIVES 6 2 RESEARCH METHODOLOGY 7-8 3 INTRODUCTION 9-12 6 DATA INTERPRETATION AND ANALYSIS 13-41 7 FINDINGS 42-44 8 SUGGESTIONS AND RECOMMENDATIONS 45 9 CONCLUSIONS 46 10 LIMITATIONS 47 11 BIBLIOGRAPHY 48 12 QUESTIONNAIRE 49-51
  • 6. 6 OBJECTIVES OF THE STUDY 1. To study the Online Shopping behavior pattern amongst hostlers of Invertis University. 2. To study the factors affecting the Online Shopping behavior of hostlers of Invertis University. 3. To identify their preferences towards different e-shopping websites and the features of websites in general. 4. To study perception of hostlers and their satisfaction level towards online shopping.
  • 7. 7 RESEARCH METHODOLOGY Research methodology is a way to solve the research problem. It may be understood as science of studying how research problem is done scientifically. The procedure using, which researchers go about their work of describing, explaining and predicting phenomena, is called Methodology. Methods compromise the procedures used for generating, collecting, and evaluating data. Methods are the ways of obtaining information useful for assessing explanation. RESEARCH DESIGN: Descriptive Research study is done for the study of consumer buying behavior. RESEARCH INSTRUMENT: Questionnaire is the research instrument used here. METHODS OF DATA COLLECTION:  PRIMARYDATA Primary data are those, which are collected for the first time, and they are original in character. A suitable combination of Questionnaire techniques, & discussion with the respondents was used to collect the required primary data. Primary data gives higher accuracy and facts, which is very helpful for any research and its findings. The primary data has been collected through structured questionnaire.  SECONDARYDATA The secondary data are those, which are already collected by someone for some purpose and are available for the present study. Secondary data was collected from the magazines, websites, newspapers, and other such sources.
  • 8. 8 STATISTICAL TOOLS USED  PERCENTAGE METHOD In this project percentage method test and used. The following is the Formula: Percentage of Respondent = Number of Respondents x 100 Total number of Respondent SAMPLING PLAN: Sample Size : 75 Sampling Unit : Hostel students of Invertis University( belonging to the age group of 20- 25) Sample Procedure : Random Sampling Sampling Method : Questionnaire Research Design : Descriptive research design Survey Area : Invertis University Hostel
  • 9. 9 INTRODUCTION India will have the world’s second-largest Internet user base by this December, overtaking the US. This is among the many interesting findings in the ‘Internet in India 2015’ Report released by the Internet and Mobile Association of India (IAMAI) and IMRB International. According to report, India will have 402 million Internet users by December 2015 and its user base has increased by 49 per cent compared to last year. In October, 317 million Indian users accessed Internet. China has the largest Internet user base, with over 600 million users. It is not surprising anymore that mobile is responsible for a big chunk of this growth. In Urban India, the mobile Internet user base grew by 65 per cent over last year to reach 197 million in October 2015. In Rural India, the mobile Internet user base is expected to reach 87 million by December 2015 and 109 million by June 2016. Ninety-four per cent of users access the Internet through their mobile phones in Urban India. However, 64 per cent also use the desktop or laptop to access the Internet. But 90 per cent of those who use the mobile to access the Internet consider it their primary device for browsing. An unsettling revelation is the gender gap when it comes to access to Internet. Men account for 71 per cent of Internet users, while women account for just 29 per cent. The demographic data in the report also point to some interesting trends. In rural India, 75 per cent of the users fall in the 18–30 years age bracket, while 11 per cent are younger than 18 and 8 per cent are in the 31–45 years group. In Urban India, 32 per cent of monthly active users are college-going students. Online communication, social networking, and entertainment are the top reasons for accessing the Internet. Only 24 per cent of urban users and 5 per cent of rural users accessed the Internet for online shopping. India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6 billion in 2013. Increasing Internet penetration and growing preference for shopping online will drive the e-commerce market in India to USD 15 billion by 2016 with a whopping 100 million people going online to shop(as revealed by Google India) Compared to 8 million in 2012, about 35 million people are now buying everything from apparel to electronics to cosmetics and furniture from online stores.
  • 10. 10 When it comes to e-tailing electronics and apparel are the biggest categories in terms Of sales. Online travel accounts for nearly 71 percent of the e-commerce business in India. E-tailing, on the other hand, accounts for only 8.7 percent of organised retail and a minuscule 0.3 percent of total retail sales. Online shopping (sometimes known as e-tail from "electronic retail" or e-shopping) is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Alternative names are: e-web-store, e-shop, e- store, Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an online retailer's mobile optimized online site or app. The year 1991 noted a new chapter in the history of the online world where e-commerce became a hot choice amongst the commercial use of the internet. At that time nobody would have even thought that the buying and selling online or say the online trading will become a trend in the world and India will also share a good proportion of this success. Popular E-commerce sites/companies In India: Flipkart: Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal. Where it is headquartered in Bangalore, Karnataka.. Flipkart has launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.
  • 11. 11 In May 2014, Flipkart received $210 million from DST Global, in July 2014 it raised $1 billion led by existing investors Tiger Global and South Africa's media group Naspers and in May 2015 it raised $550 million from some of its existing investors. Flipkart's last fundraising round in May 2015 had pegged its valuation at $15 billion. Amazon: Amazon.com, Inc. often referred to as simply Amazon, is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the United States. Amazon.com started as an online bookstore, later diversifying to sell DVDs,Blu- rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook downloads/str eaming,software, video games, electronics, apparel, furniture, food, toys and jewelry. The company also produces notably, Amazon, Kindle, E-book readers, Fire tablets, Fire TV and Fire Phone and is the world's largest provider of cloud infrastructure services Amazon also sells certain low-end products like USB cables under its in-house brand Amazon Basics. Amazon has separate retail websites for United States, United Kingdom and Ireland, France, Canada, Germany,Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India and Mexico. Amazon also offers international shipping to certain other
  • 12. 12 countries for some of its products. In 2011, it professed an intention to launch its websites in Poland and Sweden. In 2015, Amazon surpassed Wal-Mart as the most valuable retailer in the United States by market capitalization. Snapdeal: Snapdeal is an online marketplace, New Delhi, India. The company was started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering and Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010. Investors in the Company include Softbank Corp, Ru-Net Holdings, Tybourne Capital, PremjiInvest, Temasek Holdings, Bessemer Venture Partners, IndoUS Ventures, Kalaari Capital, Saama Capital, Nexus Ventures, Intel Capital, and Ratan Tata. When Snapdeal acquired FreeCharge in an equity deal, investors Sequoia Capital India, Valiant Capital, Sofina, Ru-Net Holdings, and Tybourne Capital became shareholders in Snapdeal.
  • 13. 13 DATA INTERPRETATION AND ANALYSIS 1. Do you like to shop online? a)Yes 70 b)No 5 Interpretation: 93% hostel students like to shop online. Out of the total females 44% shop online and out of the total boys 56% shop online. Male (yes) 56% Female( yes) 44% Boys and Girls Shopping Online Yes 93% No 7% Students who like to shop online
  • 14. 14 2. If yes, how often do you make online purchase? Total Male Female Once in a month 13 9 4 Once in 2-3 months 19 9 10 More than once in 6 months 3 2 1 1-3 times in a year 10 5 5 As & when required 25 14 11 Once in a month 19% Once in 2-3 months 27% More than once in 6months 4% 1-3 times in a year 14% As & when required 36% How frequently are people purchasing online?
  • 15. 15 Interpretation: • 36% of students do online shopping whenever its needed or required. Out of girls 32% girls shop once in 2-3 months compared to 23% of boys in the same category.19% of students “shop once in a month”. • Only 4% of students fall in category of online shoppers who shop “More than once in 6months”. 4 9 10 9 1 2 5 5 11 14 F M F M F M F M F M Once in a month Once in 2-3 moths More than once in 6months 1-3 times a year As & when required
  • 16. 16 3. What is the average amount that you spend per purchase while shopping online? Up to Rs 500 6 Rs 500-1000 30 Rs 1000-5000 33 Above Rs 5000 1 Interpretation: • 47% of student spend an average amount of Rs1000-Rs5000 per purchase while shopping online followed by 43% who like to spend Rs500-Rs700 per purchase. Upto Rs 500 9% Rs 500-1000 43% Rs 1000-5000 47% Above Rs 5000 1% Average amount that people spend on e-shopping
  • 17. 17 4. Generally when do you prefer making online purchase? During Festive Season 3 During heavy discount period offers (online shopping festival) 17 Depends upon mood or desire 32 As & when required 18 Interpretation: 46% of students prefer to shop online depending upon their mood or desire,26% of students shop as and when required followed with 24% of students who only shop during heavy discount period offers(like-online shopping festivals, big billion day etc) . During Festive Season 4% During heavy discount period offers(online shopping festival) 24% Depends upon mood or desire 46% As and when required 26% Online Shopping preference period
  • 18. 18 5. How do you make payments mostly when shopping online? Debit Card 8 Credit Card 7 Cash On Delivery 54 Third Party 0 Interpretation: 73% students would make C.O.D payments when shopping online and 12% would do using debit card and 10% with credit card and 0 % with third party i.e. pay tm wallet or PayPal. Debit Card 12% Credit Card 10% Cash On Delivery 78% Third Party(e.g Paypal,Paytm Wallet etc) 0% Preferable Payment Mode For E-Purchase
  • 19. 19 6. What purchase(s) do you usually make when you shop online? Apparels 26 Electronics Goods 28 Accessories 34 Books 24 Beauty and Personal Care Products 8 Footwear 25 Tickets (railways or airways) 16 Luggage/Bags 6 Other (sports accessories etc.) 2 Apparels 15% Electronic Goods 17% Accessories 20% Books 14% Beauty And Personal Care Products 5% Footwear 15% Tickets(Railways or airways) 9% Luggage/Bags 4% Other(sports accessories) 1% Usually Made Online Purchases
  • 20. 20 Interpretation: 20% prefer accessories, 17% prefer electronic goods and 30% prefer apparels and footwear.14% like to shop for books. A lot more boys are preferring electronics goods compared to girls. 13 24 20 16 2 17 14 4 2 13 4 14 8 6 8 2 2 0 Usually Made Online Purchase male female
  • 21. 21 7. Which of the following websites do you prefer for online shopping? a) Flipkart.com 53 b) Amazon. In 12 c) Jabong.com 6 d)Snapdeal.com 19 e) Others (Homeshop18, Lens cart etc.) 4 Interpretation: 57% population prefer flipkart,20% like snap-deal and 13 % prefer amazon. Flipkart.com 57% Amazon.in 13% Jabong.com 6% Snapdeal.com 20% Others(Homeshop 18,Lenscart etc) 4% Most preferred E-shopping Sites
  • 22. 22 8. Which medium do you prefer for online shopping? Male Female a) Laptop/P.C 43 29 14 b)Smartphone 27 10 17 c) Tablet 0 0 0 Laptop/P.C 61% Smartphone 39% Tablet 0% Preferred Medium For Online Purchase
  • 23. 23 Interpretation: Laptop is a preferred medium over smart phones as 61% are using laptops and 39% are using smart phones. Laptop/P.C Smartphone Tablet 29 10 0 14 17 0 Preferred Medium For Online Purchase Male Female
  • 24. 24 9. What is/are the reason(s) for e-shopping? a) Saves Money 23 b) Saves time 31 c) Convenient 16 d) Range & Availability of Products 30 e) Others (ease, fast, reliable etc.) 0 Saves Money 23% Saves Time 31% Convenient 16% Range & Availablity Of Products 30% Others(ease,fast etc.) 0% Common Reasons To Shop Online
  • 25. 25 Interpretation: 31% find e-shopping time saving,23% find it money saving and 16% find it convenient. Saves Money Saves Time Convenient Range & Availability Of Products Others(ease,etc) 19 20 9 18 0 4 11 7 12 0 Common Reasons To Shop Online Male Female
  • 26. 26 10. Have you felt any problem in online purchasing? a) Yes 21 b) No 49 if yes, what kind of problems(s) ? a) Delay in delivery 12 b) Cheap Quality 4 c) Damaged Product 2 d) Non-Delivery 5 e) Others (fake) 1 Yes 30% No 70% Problems Faced In Online Shopping
  • 27. 27 Interpretation: 70% people have never faced any problem in e-shopping and out of 30% people who have faced some problems in e-shopping 50% say the problem was “delay in delivery”. Non-delivery has 21% and cheap quality has 17% share. Delay In Delivery 50% Cheap Quality 17% Damaged Product 8% Non-Delivery 21% Others(fake) 4% Problems Faced In Online Shopping
  • 28. 28 11. How do you rate your experience of Online Purchase? a) Very much satisfied 13 b) Satisfied 50 c) Not satisfied 1 d) Can’t say 5 Interpretation: 73% students are satisfied and 19% say they are very much satisfied with their online purchasing experience. Very Much Satisfied 19% Satisfied 73% Not Satisfied 1% Can't Say 7% Satisfaction Level Of Students
  • 29. 29 12. Do you feel secure while shopping online? a) Yes 60 b) No 10 Interpretation: 86% feel secure while e-shopping and 14% of the population is insecure. Yes 86% No 14% Secure While E-Shopping
  • 30. 30 13. Does cash on delivery option influences you to do online shopping? a) Yes 63 b) No 7 Interpretation: 90% of the population says C.O.D option plays an influencing role in e-shopping and 10% think it doesn’t. Yes 90% No 10% Influence Of C.O.D option on e- purchase
  • 31. 31 14. How do you like to do online shopping? a) Through E-shopping websites or using browser 49 b) Through E-shopping Apps 21 Interpretation: 70% students prefer Websites/browsers to shop online whereas 30% prefer using apps. Through E- shopping Websites or using Browsers 70% Through E- shopping Apps 30% Preferred Mode Of Shopping
  • 32. 32 15. Features you think are necessary for an online shopping website to have? a) Social Networking Integration 7 b) Multiple Payments 23 c) Privacy & Secure Checkout 19 d) Customer Friendly 30 e) Credibility 9 f) Customer Care Service 23 g)Comparison Between Sites 19 h) Others (review/feedback) 3
  • 33. 33 Interpretation: Customer friendly feature has a % share of 23% ,18% is of multiple payment gateways and 31% is for customer care service and privacy checkout followed by 14% is for comparison between sites. Social Networking Integration 5% Multiple Payment Gateways 18% Privacy & Secure Checkout 14% Customer Friendly 23% Credibility 7% Customer Care Service 17% Comparison Between Sites 14% Others(Review.Feed back etc) 2% Important Features For An E-Shopping Site
  • 34. 34 16. Rank the factors which you consider important in refraining/stopping you from shopping online? (Ranking is to be done numerically like 1, 2, 3, 4…..) a)Risk Of Identity Theft(Hacking) b)Risk Of Not Getting What You Paid For c)Difficulty In Returning Products/Items d)Waiting To Receive The Product (delivery issues) e)Complex Compared To Traditional Shopping f)Lack Of Trust Worthiness Of Vendors g)Not Being Able To Touch Or See Products h)More Expensive Than Sold In Retail Stores
  • 35. 35 Categories Rank 1 Rank 2 Rank3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Risk of identity theft (hacking) 18 8 10 2 9 11 7 10 Risk of Not Getting What You Paid For 12 19 13 4 15 2 6 3 Difficulty in Returning Products/Items 9 18 9 11 13 4 7 4 Waiting to Receive the Product (delivery issues) 5 8 6 20 11 9 8 8 Complex Compared To Traditional Shopping 2 10 4 8 7 19 15 10 Lack of Trust Worthiness of Vendors 5 8 14 7 11 10 8 12 Not Being Able To Touch & See Products 13 10 7 7 13 12 9 4 More Expensive Than Sold In Retail Stores 12 0 6 5 6 8 15 23
  • 36. 36 Interpretation: Out of the various reasons for refraining/stopping people for shopping online the 1st rank is occupied by “Risk of identity theft”,2nd rank by “Risk of not getting what you paid for and 3rd by “Lack of trust worthiness of vendors”. 0 5 10 15 20 25 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank6 Rank 7 Rank 8 Risk Of Identity Theft(hacking) Risk Of Not Getting What You Paid For Difficulty In Returning Products/Items Waiting To Receive The Product(delivery issues) Complex Compared To Traditional Shopping Lack Of Trust Worthiness Of Vendors Not Being Able To Touch & See Products More Expensive Than Sold In Retail Stores
  • 37. 37 17.Do you think the feature of “Track The Order” is an important factor influencing the online shopping decision? Yes 62 No 8 Interpretation: 89% think “Track the order” is an influencing factor in e-shopping. Yes 89% No 11% Does The "Track The Order" Feature Influences To Shop Online?
  • 38. 38 18. Does “free shipping” option motivates you to shop online? a) Yes 62 b) No 8 Interpretation: 84% believe “free shipping” motivates them to shop online. Yes 84% No 16% Does "free shipping" option motivates to shop online?
  • 39. 39 19. Do you visit retail stores before purchasing a product online? a) Yes 15 b) No 55 Interpretation: 21% say they visit retail stores before purchasing anything online. Yes 21% No 79% Visiting Retail Stores Before Purchasing Online
  • 40. 40 20. Do you search for complete information about the product on the net before making online purchase? a) Yes 60 b) No 10 Interpretation: 86% of the population search for complete information on net before e-purchase. Yes 86% No 14% Getting Complete Information On Net Before E-purchase
  • 41. 41 21. Do you want to add any new category of your choice in the list of e-shopping categories? a) Yes 3 b) No 67 Interpretation: 96% say they don’t want to add any new category to the list of e-shopping category as they get everything they want. Yes 4% No 96% Addition of any new category in e- shopping category
  • 42. 42 FINDINGS I. Online shopping behavior pattern amongst hostlers: • Out of total students (boys and girls) 93% likes to do online shopping which is a large majority. Boys contribute 56% and Girls 44% in the total figure of respondents doing online shopping. • 36% of students, a large chunk of population do online shopping whenever its needed or required. Out of girls 32% girls shop once in 2-3 months compared to 23% of boys in the same category.19% of students “shop once in a month”. • 47% of students are willing to spend an average amount of Rs1000-Rs5000 per purchase while shopping online followed by 43% who like to spend Rs500-Rs700 per purchase. Out of boys 2% of boys would spend up to 500 per purchase when they shop online and 2% would spend above Rs 5000 per purchase compared to 16% of girls who would spend up to 500 per purchase and 0% on purchase above Rs 5000 • 46% of students prefer to shop online depending upon their mood or desire,26% of students shop as and when required followed with 24% of students who only shop during heavy discount period offers(like-online shopping festivals, big billion day etc) . • 77% students would make C.O.D payments when shopping online and 11% would do using debit card and 10 with credit card and 0 % with third party i.e paytm wallet or paypal.
  • 43. 43 II. Preferences Of Hostel Students While Making Online Purchase • Accessories and Electronic Goods are the two most preferred online shopping categories amongst all. • Preferences of apparels, footwear and books taken in descending order of sequence are the other three popular choices amongst students. • In the category of online Ticket purchase, we have 88% boys and only 12% girls and similarly for Electronic goods we have 86% boys and only 14% girls. • Beauty/Personal Care products and luggage/bags are the two least preferred categories. • The most preferred online shopping website amongst students is Flipkart.com with a share of 57% votes in its favor then its snapdeal.com followed by Amazon. In. • Students rarely look for any other alternatives like- jabong, shopclues, lenscart,voxpop etc. • Laptop/P.C is preferred by 61% students as a medium for online shopping whereas 39% use Smartphone to get the online shopping experience. • 55% girls and 26% boys out of the total respective categories chose smart phones. • 45% girls and 74% boys went for laptop/p.c. III. Satisfaction And Overall Perception Level Towards E-shopping: • 70% hostlers have never encountered any sort of problem in their online purchase. • Delay in delivery is the main issue with the remaining 30% after that its non-delivery and cheap quality of products. • 71% students are satisfied with their online shopping experience. • 86% feel secure when they shop online.
  • 44. 44 IV. Factors That Affect Online Shopping Behavior Of Students: • Three main reasons that influence hostlers to go for e-tailing in the order of preference are : time saving, range and availability of products and economical (saves money). Relatively less students find convenience as an influencing factor. “Online shopping saves money” is surely not the mantra for girls as only 17% support this on the other hand 83% of boys find it really money saving. • 90% students think C.O.D option influences them to shop online. • 70% hostlers like to use e-shopping websites or browser to do online shopping and rest 30% use e-shopping apps. • A large chunk of students think that an e-shopping website should be customer friendly first. Approximately 25% want it to be customer friendly. Multiple payment gateways, customer care service are the other two necessary features which students look for in an e-shopping website as 35% have chosen these two features. • Risk of identity theft, Risk of not getting what you paid for, difficulty in returning products and lack of trust worthiness of vendors are the four important factors which would stop or refrain or discourage students from online shopping.(the factors are in the order of priority) • 89% students think tracking the order is an important factor which influences their online shopping decision • 23% girls out of the total girls don’t consider “tracking the order” feature so important. • 84% of students find “free shipping” option as a motivating factor to shop online. • 79% of students do not visit a retail store before making an online purchase. • 86% students search for complete information about the product on the net before making online purchase. • 96% of students do not wish to add any new category in the list of e-shopping categories. 4% want to add beer, psychedelic drugs. Alcohol and some personal use items.
  • 45. 45 SUGGESTIONS AND RECOMMENDATIONS • On the basis of the findings of my research I would like to give the following suggestions: E-commerce websites should come up with lucrative offers on quarterly basis to lure girls since they shop more (compared to boys)during this period. Range and Availability of products in the price range of Rs1000-5000 and Rs500-1000 should be given special consideration as 90% of shoppers fall in this category. E-tailing websites should also work considerably in building trust and friendly relationship with customers by coming with better privacy policies as this would encourage shoppers to use other mode of payments like debit cards, credit cards etc as well. • Since Flip kart has got a strong hold in e-commerce market as the majority prefers it over other e-shopping websites so it should keep on delivering good and other websites like Snap deal and Amazon should work on their delivery services, range and availability of products especially in electronic goods and accessories segment and making better connect with potential customers to stay in race and make the competition tougher. • Around 70% of online shoppers prefer e-shopping websites or browsers over e- shopping apps so e-tailers should come up with ideas to improve the shopping experience using browsers.(flipkart has already made an entry with flipkart lite) • E-commerce sites should take the privacy issue really serious as well as the deliverance of authentic products with better return policies to make themselves credible before the eyes of customers.
  • 46. 46 CONCLUSION  A successful webstore is not the just a good looking website with the dynamic technical features but is also emphasis on building the relationship with customers with making money. Firstly understanding the customer’s needs and wants is very essential for building a relations with the customers keeping companie’s promises gives a customer a reason to come back and meeting the expectations gives them a reason to stay.  It shows the company value towards its customers over the website communication. Customers needs and the expectations are the not the same age, gender, experience, culture are all the important factors. Users with more online influence focus on the variables that directly influence the task .  To increase the online purchases business must use the significant time and money, define, design, development, test, implement and maintain the webstore. It is very easy to lose the customer but very difficult to gain the customer.  To remain in the online business a webstore should responding the customers emails, notifying the customers problems and always being honest towards the customer.  Price factor and after sale factor play an important role in e-commerce business so online marketers should give due importance to it as well as work on satisfying the existing customer each time and offer new schemes day by day to attract new ones.
  • 47. 47 LIMITATIONS 1. The Study was confined only to the hostel students of Invertis University so the study may not be generalized in a broader perspective. 2. As not all respondents would have been able to understand the questionnaire correctly or misread the questions so there is a little chance of marking wrong answers or incorrect choices. 3. The study is restricted to only teenagers so in order to make more generalized, reliable and significant conclusions a study employing larger sample size is needed. 4. Time-constraint has also been one of the limitations.
  • 48. 48 BIBLIOGRAPHY/ REFERENCES 1. Online and upcoming the Internet’s Impact on India by Mckinsey & Company 2. Google India Study reports numbers about online shopping in India; ‘Electronics’ Top Search but ‘Apparels’ most bought by Team YS January 29 2013. 3. Indian E-Commerce statistics in Wikipedia. 4. Chalam, G. (2014). e - Commerce and its structural Development in India - An Analysis. The IUP Journal Of Information Technology. 5. Dahiya, D. B. (2013). Challenges in online shopping in India. International journal of Scientific & Engineering Research. 6. Indian E-commerce companies on Wikipedia.
  • 49. 49 Annexure Gender: Age: (20-25) Q1. Do you like to shop online? a) Yes b) No (then jump to Q16) Q2.If yes, how often do you make online purchase? a) Once in a month b) Once in 2-3 months c) More than once in 6 months d) 1-3 times in a year e) As & when required Q3.What is the average amount that you spend per purchase while shopping online? a) Up to 500 b) Rs 500- 1000 c) Rs 1000-5000 d) Above Rs 5000 Q4. Generally, when do you prefer making online purchase? a) During Festive season b) During heavy discount period offers (online shopping festival) c) Depends upon mood or desire d) As & when required Q5. How do you make payments mostly when shopping online? a) Debit Card b) Credit Card c) Cash on Delivery d) Third Party (e.g. PayPal, Paytm wallet etc) Q6. Rank your purchase when you go for online shopping? a) Apparels b) Electronic Goods c) Accessories d) Books e) Beauty & personal care products f) Footwear g) Tickets (Railways or airways) h) Luggage/Bags
  • 50. 50 Q7. Which of the following websites do you prefer for online shopping? a) Flipkart.com b) Amazon. In c) Jabong.com d) Snapdeal.com e) Others (please specify............) Q8.Which medium do you prefer for online shopping? a) Laptop/P.C b) Smartphone c) Tablet Q9. What is/are the reason(s) for e-shopping? a) Saves money b) Saves time c) Convenient d) Range and availability of products e) Others (please specify.............) Q10.Have you ever felt any problem in online purchase? a) Yes b) No If yes, what kind of problem(s)? a) Delay in delivery b) Cheap quality c) Damaged product d) Non-Delivery (address problem) e) Others (please specify..........) Q11. How do you rate your experience of online purchase? a) Very much satisfied b) Satisfied c) Not satisfied d) can’t say Q12. Do you feel secure when shopping online? a) Yes b) No Q13.Does cash on delivery option influences you to go for online shopping? a) Yes b) No Q14. How do you like to do online shopping? a) Through e-shopping websites or browser b) Through e-shopping app
  • 51. 51 Q15. Features you think are necessary for an online shopping website to have? a) Social networking integration b) Multiple payment gateways (debit card, credit card etc.) c) Privacy & secure checkout d) Customer friendly e) Credibility f) Customer care service g) Comparison between sites h) others (please specify......) Q16. Rank the factors which you consider important in refraining/stopping you from shopping online? a) Risk of identity theft (hacking) b) Risk of not getting what you paid for c) Difficulty in returning products/items d) Waiting to receive the product (delivery issues) e) Complex compared to traditional shopping f) Lack of trust worthiness of vendors g) Not being able to touch & see products h) More expensive than sold in retail store Q17. Do you think the feature of “tracking the order” is an important factor influencing the online shopping decision? a) Yes b) No Q18.Does “free shipping” option motivates you to shop online? a) Yes b) No Q19.Do you visit retail stores before purchasing a product online? a) Yes b) No Q20. Do you search for complete information about the product on the net before making online purchase? a) Yes b) No Q21. Do you want to add any new category of your choice in the list of e-shopping categories? a) Yes b) No If yes, then please name...........................................................................................................