Research done with a sample size of 200 people.

1. FINAL PROJECT REPORT
ON
“Study on Consumer Behavior towards Online
Purchase of Smartphones in Delhi-NCR”
By
Vipul Dinodia
Roll no. 458
In Partial Fulfillment for the award of the degree
Post-Graduate Diploma in Management
Batch 2016-18
Specialization: Marketing and Digital Marketing
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: placement@ndimdelhi.org Website: www.ndimdelhi.org

2. FINAL PROJECT REPORT
ON
“Study on Consumer Behavior towards Online
Purchase of Smartphones in Delhi-NCR”
Under the supervision
Of
Prof. Monika Nijhawan
Submitted By:
Vipul Dinodia
458
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: placement@ndimdelhi.org Website: www.ndimdelhi.org

3. ABSTRACT
The aim of this study is to investigate the factors that affect the consumer
behaviour towards online purchase of smartphones in Delhi-NCR.
There are millions of people online every moment and they all are a potential
consumer in the online market. Since there are so many providers, the most
important thing for organisations is to understand what are consumer wants and
needs in this competitive business environment.
Customer behaviours are influenced by different factors such as culture, social
class, references group relation, family, income level and income independency,
age, gender etc. and so they show different customer behaviours.
A questionnaire will be designed online, since the research is an online consumer
behaviour study, online data collection methods are preferred. The link of the
questionnaire will be shared with different parts of Delhi-NCR with an estimation
of 100 sample size.
The result of this study would contribute marketers who is already present in the
market of Delhi-NCR and wants to maintain the loyalty of their customers. It can
also be a part of the study on international consumer behaviour toward online
shopping.

4. ACKNOLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly
contributed in the development of this work and who influenced my thinking,
behavior, and acts during the course of study.
I am thankful to Prof. Monika Nijhawan for her support and cooperation
provided to me during the project.
I also extend my sincere gratitude to Prof. (Dr.) Gajender Sharma who
provided his valuable suggestions, constructive feedback and precious time in
accomplishing my project report.
I would also take the opportunity to thank my respondents who actually took time
in filling up the questionnaire, despite of being busy and full of work.
Lastly, I would like to thank the almighty and my parents for their moral support
and my friends with whom I shared my day-to-day experience and received lots
of suggestions that improved my quality of work.
Vipul Dinodia

5. DECLARATION
I, Vipul Dinodia, student of 2016-18 Batch, New Delhi Institute of Management,
New Delhi, hereby declare that every part of the Project Report on “Study on
Consumer Behavior towards Online Purchase of Smartphones in Delhi-NCR”
submitted by me for partial fulfillment of Post Graduate Diploma in Management
is original.
I was in regular contact with my faculty guide and contacted him twice a week in
average for discussing the project.
The information and data given in the report is authentic to the best of my
knowledge.
Date of project submission:
Vipul Dinodia
CERTIFICATE OF AUTHENTICITY
Faculty Mentor’s Comments:
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
Prof. Monika Nijhawan

6. TABLE OF CONTENT
Chapter Topic Page No.
Executive Summary 9
I Industry Overview
Introduction 11
Market Size 12
Investments/Developments 14
Government Initiatives 14
Road Ahead 15
II Models/Theories
Theory of Reasoned Action 17
Technology Acceptance Model 19
III Literature Review 22
IV Research Methodology
Introduction 26
Research Design 26
Research Questions 27
Source of Data 28
Data Collection Method 29
V Data Analysis & Findings
Introduction 31
Responses to Questions 32
Hypothesis Analysis 48
Findings 49
VI Bibliography
Industry Overview 52
Models/ Theories 52
Literature Review 52
VII Annexures
Annexure- I (Questionnaire) 56

7. LIST OF TABLES
S. No. Description Page No.
1. Gender Analysis 27
2. Age Analysis 28
3. Income Distribution 29
4. Frequency of Online Shopping 30
5. Online Shopping Duration 31
6. Product Segmentation 32
7. Reason for Shopping Online 33
8. Offline Store Visit Analysis 34
9. Frequency of Online Purchase of Smartphones 35
10. Idea of Online Purchase of Smartphones 36
11. Specifications of required Smartphones 37
12. Online Store Visit before purchasing Online 38
13. Factors affecting final selection of product 39
14. Consumer Behaviour after purchasing the Smartphone 40
15. Barriers affecting online purchase of Smartphone 41

8. LIST OF FIGURES/ GRAPHS
S. No. Description Page No.
1. Indian E-commerce Market 11
2. Internet Users in India 11
3. India’s Internet Economy 12
4. Sector Composition in E-commerce 12
5. Market Size of E-commerce Industry 13
6. First modified version of Technology Acceptance
Model
19
7. Final version of Technology Acceptance Model 20
8. Gender Analysis 32
9. Age Analysis 33
10. Income Distribution 34
11. Frequency of Online Shopping 35
12. Online Shopping Duration 36
13. Product Segmentation 37
14. Reason for Shopping Online 38
15. Offline Store Visit Analysis 39
16. Frequency of Online Purchase of Smartphones 40
17. Idea of Online Purchase of Smartphones 41
18. Specifications of required Smartphones 42
19. Online Store Visit before purchasing Online 43
20. Factors affecting final selection of product 44
21. Consumer Behaviour after purchasing the Smartphone 45
22. Barriers affecting online purchase of Smartphone 46
23. Chi-Sq.Test Analysis using Excel 48

9. ~ 9 ~
EXECUTIVE SUMMARY
The Indian e-commerce market has seen a boom in the past 5 years and it is
expected to grow to $60 billion by 2020 and $200 billion by 2026. The e-
commerce industry has huge potential and with the government initiatives like
digital India, it is expected to grow even more.
The project majorly focuses on the online purchase of smart phones by the Indian
customers. Recently, it is seen that people are comfortable buying smartphones
online than offline. This is majorly because of the Chinese smartphones brand
Xiaomi. They offer great specifications at low cost, as they save their cost by
selling online and they do not have to spend on their offline distribution. When
India will shift from 4G to 5G then also there would be a huge requirement of
smart phones.
A market survey was conducted to find out the behavior of people towards,
buying of smartphones online and also finding out the problems that they face
while purchasing online. A structured questionnaire was designed to find out the
preference of people. The samples are collected in the Delhi-NCR region, the
sample size is 100, random and convenience sampling is used for the survey.
It is seen in the survey that people in the age group of 20-25 years prefer to buy
smart phones and clothes the most. People buy smartphones because it is
convenient, they also get a competitive price and sometimes the smartphone is
exclusively available online and it cannot be purchase from the traditional market.
But, there are some problems that the customers face when they shop online. The
major problem is of trust because in the past, people had ordered a smartphone
and received stones or soaps in the packet at the time of delivery. Then, the next
problem is of the warranty claims and the last issue is related to the refund offered
by the online sites. If these problems get resolved, then we can see more and more
people getting attracted to buy smartphones online.

10. ~ 10 ~
CHAPTER- I
INDUSTRY OVERVIEW

11. ~ 11 ~
Introduction
The e-commerce has transformed the way business is done in India. The Indian
e-commerce market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion as of 2017. The value of e-commerce market is expected to cross US$
50 billion by 2018.
Much growth of the industry has been triggered by increasing internet and
smartphone penetration. The ongoing digital transformation in the country is
expected to increase India’s total internet user base to 829 million by 2021 from
481 million as of December 2017, while total number of networked devices in
the country are expected to grow to two billion by 2021, from 1.4 billion in 2016.
Figure 1: Indian E-Commerce Market
Figure 2: Internet Users in India

12. ~ 12 ~
Figure 3: India’s Internet Economy
Market Size
Total online spending, inclusive of domestic and cross border shopping, is
expected to increase by 31 per cent year-on-year to Rs 8.76 trillion (US$ 135.8
billion) by 2018. Cross border shopping by Indians touched Rs 58,370 crore (US$
9.1 billion) in 2016, and is expected to by 85 per cent year-on-year in 2017. The
top 3 countries preferred by Indians for cross-border shopping in 2016 were USA
(14%), UK (6%) and China (5%).
The Indian consumer internet market is expected to grow by 44 per cent year-on-
year to touch US$ 65 billion in 2017, up from US$ 45 billion in 2016. Online
travel agents account for the largest market share (70 per cent) in the internet
consumer market, while the remaining 30 per cent is occupied by horizontal e-
tailing, fashion, furniture, grocery, hotel, food tech, cab aggregators, education
technology, and alternative lending among others.
Figure 4: Sector Composition in E-commerce

13. ~ 13 ~
The internet industry in India is likely to double to reach US$ 250 billion by 2020,
growing to 7.5 per cent of Gross Domestic Product (GDP), with the number of
mobile internet users growing to about 650 million and that of high-speed internet
users reaching 550 million. About 70 per cent of the total automobile sales in
India, worth US$ 40 billion, are expected to be digitally influenced by 2020 as
against US$ 18 billion in 2016.
Figure 5: Market Size of E-Commerce Industry
Propelled by rising smartphone penetration, the launch of 4G networks and
increasing consumer wealth, the Indian e-commerce market is expected to grow
to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017 which was US$ 15
billion in 2016.
E-commerce is increasingly attracting customers from Tier 2 and 3 cities, where
people have limited access to brands but have high aspirations. With the increase
in awareness about the benefits of online trading, there has been a significant rise
in investment in E-commerce business. Hand in hand with offline trading, many
established businesses, e.g. Shoppers Stop or Lifestyle, have setup online
transaction channels. Earlier food and grocery were never thought of as items for
online trading. However, with the change of working habits, and consumers
opting for adaptability and convenience, there are now innumerable small and
large E-commerce companies selling provisions and food items like Grofers,
BigBasket, etc.
India's ecommerce industry's sales rose 40 per cent year-on-year to reach Rs 9,000
crore (US$ 1.5 billion) during the five-day sale period ending September 24,

14. ~ 14 ~
2017, backed by huge deals and discounts offered by the major ecommerce
companies.
Investments/ Developments
Some of the major developments in the Indian e-commerce sector are as follows:
 Amazon invested Rs 6,200 crore (US$ 1 billion) in e-commerce arm in India
during calendar year 2017.
 Venture Capital (VC)-backed firms in India raised a record US$ 9.6 billion of
fresh capital between January-September 2017, which is more than twice the
amount of capital raised during the same period in the previous year.
 Blackbuck, an online freight aggregator operated by Zinka Logistics Solutions
Pvt Ltd, has raised Rs 50 crore (US$ 7.68 million) in venture debt from InnoVen
Capital.
 BankBazaar, a financial marketplace start-up in India, raised US$ 30 million in
a funding round led by Experian Plc, a credit rating agency based in UK, taking
the company's total funding to US$ 110 million.
 Gozefo.com, a Bengaluru based used furniture and appliances platform, has
raised Rs 60 crore (US$ 9 million) in Series B funding from Sequoia Capital
India, Helion Venture Partners and Beenext Pte. Ltd.
Government Initiatives
Since 2014, the Government of India has announced various initiatives namely,
Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The
timely and effective implementation of such programs will likely support the e-
commerce growth in the country. Some of the major initiatives taken by the
government to promote the e-commerce sector in India are as follows:
 Reserve Bank of India (RBI) has decided to allow "inter-operability" among
Prepaid Payment Instruments (PPIs) such as digital wallets, prepaid cash
coupons and prepaid telephone top-up cards.

15. ~ 15 ~
 Finance Minister Mr Arun Jaitley has proposed various measures to quicken
India's transition to a cashless economy, including a ban on cash transactions
over Rs 300,000 (US$ 4,655.1), tax incentives for creation of a cashless
infrastructure, promoting greater usage of non-cash modes of payments, and
making Aadhaar-based payments more widespread.
Road Ahead
The e-commerce industry been directly impacting the micro, small & medium
enterprises (MSME) in India by providing means of financing, technology and
training and has a favourable cascading effect on other industries as well. The
total size of e-Commerce industry (only B2C e-tail) in India is expected to reach
US$ 101.9 billion by 2020.
Technology enabled innovations like digital payments, hyper-local logistics,
analytics driven customer engagement and digital advertisements will likely
support the growth in the sector. With the increase in the number of electronic
payment gateways and mobile wallets, it is expected that by the year 2020,
cashless transaction will constitute 55 per cent of the online sales. The growth in
e-commerce sector will also boost employment, increase revenues from export,
increase tax collection by ex-chequers, and provide better products and services
to customers in the long-term.

16. ~ 16 ~
CHAPTER- II
MODELS/ THEORIES

17. ~ 17 ~
Theory of Reasoned Action
The Theory of Reasoned Action (TRA) was proposed by Ajzen and Fishbein
(1975 & 1980). The components of TRA are three general constructs i.e.
Behavioral Intention (BI), Attitude (A), and Subjective Norm (SN). TRA
suggests that a person's behavioral intention depends on the person's attitude
about the behavior and subjective norms (BI= A + SN). If a person intends to do
a behavior then it is likely that the person will do it. Furthermore a person's
intentions are themselves guided by two things- the person's attitude towards the
behavior and the subjective norm. Behavioral intention measures a person's
relative strength of intention to perform a behavior. Attitude consists of beliefs
about the consequences of performing the behavior multiplied by his or her
valuation of these consequences. Subjective norm is seen as a combination of
perceived expectations from relevant individuals or groups along with intentions
to comply with these expectations. In other words, "the person's perception that
most people who are important to him or her think he should or should not
perform the behavior in question".
To put the definition into simple terms- a person's voluntary behavior is predicted
by his/her attitude toward that behavior and how he/she thinks other people would
view them if they performed the behavior. A person’s attitude, combined with
subjective norms, forms his/her behavioral intention.
Miller (2005) defines each of the three components of the theory as follows and
uses the example of embarking on a new exercise program to illustrate the theory:
 Attitudes: the sum of beliefs about a particular behavior weighted by
evaluations of these beliefs.
 You might have the beliefs that exercise is good for your health, that
exercise makes you look good, that exercise takes too much time, and that
exercise is uncomfortable. Each of these beliefs can be weighted (e.g.,
health issues might be more important to you than issues of time and
comfort).

18. ~ 18 ~
 Subjective Norms: looks at the influence of people in one’s social environment
on his/her a behavioral intention; the beliefs of people, weighted by the
importance one attributes to each of their opinions, will influence one’s
behavioral intention.
 You might have some friends who are avid exercisers and constantly
encourage you to join them. However, your spouse might prefer a more
sedentary lifestyle and scoff at those who work out. The beliefs of these
people, weighted by the importance you attribute to each of their opinions,
will influence your behavioral intention to exercise, which will lead to your
behavior to exercise or not exercise.
 Behavioral Intention: a function of both attitudes toward a behavior and
subjective norms toward that behavior, which has been found to predict actual
behavior.
 Your attitudes about exercise combined with the subjective norms about
exercise, each with their own weight, will lead you to your intention to
exercise (or not), which will then lead to your actual behavior.
Formula
In its simplest form, the TRA can be expressed as the following mathematical
problems:
BI = (AB) W1 + (SN) W2
BI = behavioral intention
(AB) = One’s attitude toward performing the behavior
W = empirically derived weights
SN = one’s subjective norm related to performing the behavior
(Source: Hale, 2003)

19. ~ 19 ~
Theory Acceptance Model
The Technology Acceptance Model (TAM) was introduced by Fred Davis in
1986 for his doctorate proposal as shown in Figure 5. An adaptation of Theory of
Reasonable Action, TAM is specifically tailored for modeling users’ acceptance
of information systems or technologies.
In 1989, Davis used TAM to explain computer usage behaviour as shown in
Figure 6. The goal of Davis’ (1989) TAM is to explain the general determinants
of computer acceptance that lead to explaining users’ behaviour across a broad
range of end-user computing technologies and user populations. The basic TAM
model included and tested two specific beliefs: Perceived Usefulness (PU) and
Perceived Ease of Use (PEU). Perceived Usefulness is defined as the potential
user’s subjective likelihood that the use of a certain system (e.g: single platform
Epayment System) will improve his/her action and Perceived Ease of Use refers
to the degree to which the potential user expects the target system to be effortless
(Davis, 1989). The belief of the person towards a system may be influenced by
other factors referred to as external variables in TAM.
Figure 6: First modified version of Technology Acceptance Model (TAM)
(Davis, Bogozzi and Warshaw, 1989)
The final version of Technology Acceptance Model was formed by Venkatesh
and Davis (1996) as shown in Figure 7 after the main finding of both perceived
usefulness and perceived ease of use were found to have a direct influence on
behaviour intention, thus eliminating the need for the attitude construct.

20. ~ 20 ~
Figure 7: Final version of Technology Acceptance Model (TAM) (Venkatesh and Davis,
1996)

21. ~ 21 ~
CHAPTER- III
LITERATURE REVIEW

22. ~ 22 ~
I. Consumer buying decisions are mostly affected by the branding strategies of
the companies. Consumers always feel comfortable with familiar brand and
several dominant factors in the market influence a consumer purchase decision.
This research aims at identifying factors which have a dominating effect on the
consumer decision making process for a purchase of smartphone. In this
perspective less research work has conducted in India with comparison to other
developed countries. Smartphone market is in the growth stage in India where
people have started to move from conventional mobile phones to smartphones.
This study today can be able to provide fruitful information to the marketers
regarding the consumer perception towards the smartphones [1].
II. However according to [9] it is believed that this concept primarily got into the
marketing area by giving stress on brand loyalty. The long term loyal customers
are more profitable as the basic assumption of marketing to which [2]
recommended that it can be achieved by a series of steps. This start with
customer’s perceived value which defines the customer satisfaction in turn leads
to strengthen the relationships last longer and eventually become more
profitable.
III. According to Morgan and Hunt [3] it is less costly to retain an existing customer
than to get hold of a new one.
IV. Wetsch [4] suggested that behavioral data is usually used in marketing to
appraise the customer loyalty because its collection is easier and less costly to
obtain but it is not sufficient to differentiate between real and fake loyalty.
Loyalty is a condition where customers prefer to stick to the brand in spite of
ever changing market conditions. If customers’ loyalty to the brand is the core
of a brand’s equity then the assessment of the connection to a customer towards
a brand is called brand loyalty. When the present brand makes few changes in
products’ price or features it signifies the likelihood of a customer to shift to
some other brand. As the customer loyalty increases on a particular brand then
susceptibility of the customers to competitors’ action diminishes. Even though
a rapport building type of marketing approach is longstanding by nature

23. ~ 23 ~
transaction marketing is more short term goal oriented and is to earn customers
while of relationship marketing is to maintain, retain and sustain customers [5].
V. The smartphone user tends to be younger than the general cell phone audience.
Young people indicate a higher satisfaction level with texting than older people
in terms of functions of smartphone [6].
VI. Graziano and Tobin [7] defined agreeableness as “a compassionate
interpersonal orientation described as being kind, considerate, likable, helpful
and cooperative”.
VII. Devaraj et al. [8] found that agreeableness is positively correlated with beliefs
perceived through technology.
VIII. Ehrenberg et al. [9] on examining young people’s use of technology found that
disagreeable individuals spend more time on calls and disagreeable individuals
with lower self-esteem spent more time using instant messaging and showed
stronger instant messaging addictive tendencies.
IX. Phillips et al. [10] explained that young people low on agreeableness were more
likely to use their phones to play games. Conscientious people are more likely
to carefully consider ways in which the use of technology would allow them to
be more efficient and perform at a higher level at work [11].
X. Devaraj et al. [8] found that conscientiousness moderates the relationship
between perceived usefulness of technology and intention to use technology
such that the relationship was stronger for individuals with higher
conscientiousness.
XI. Devaraj et al. [8] found that extraversion moderated the relationship between
subjective norms and intentions to use technology such that the relationship is
stronger for individuals with higher extraversion.
XII. Ehrenberg et al., [9] found that extraverted individuals spent more time texting.
Androulidakis and Kandus [12] correlated the brand of mobile phone to users’
security practices and explained users show different behavior in an array of
characteristics of the mobile phone brand used by them.

24. ~ 24 ~
XIII. Jonathan, Lee et al. [13] analyzed the mobile phone service market indicates
support for the moderating role of switching costs. Muhanna et al. [14] aims at
investigating students’ attitudes towards the learning environment where cell
phones are used as learning tools in classroom and also reveals that cell phone
has more influence on male students than on female students.
XIV. Nasr Azad et al. [15] stated that customers select their products based on brand
on purchasing intend for cellular phones.
XV. Mehran Rezvani et al. [16] investigates the impact of Word of Mouth on
consumer based brand equity.
XVI. Mokhtar et al. [17] explored the relationship between service quality and
customer satisfaction on customer loyalty with regards to mobile phone usage.
XVII. Shakir Hafeez and Hasnu [18] stated that customer loyalty in mobile sector is
relatively low because new players are entering in this market and customers
are more fascinated to try the new service providers.
XVIII. Chakraborty and Sengupta [19] explained the different aspects of prediction of
switching proclivity of customers from one service provider to another.
XIX. Harsha de Silva [20] generally showed that adoption of mobile phones has
significant benefits not just to the customers but to the community at large.
XX. Arvind Sahay and Nivedita Sharma, [21] focused on peer influence, family
influence, and brand relationships affect the switching intentions amongst
young consumers from one brand to other.
XXI. Hawkins et al. [22] in their study “Consumer Behavior: Building Market
Strategy” defined attitude as an organization of various psychological processes
which include motivational, emotional and cognitive processes relating to a
particular aspect in the environment that gives a favorable or unfavorable
attachment towards that aspect of the environment.
XXII. Pride and Ferrell, [23, 24] further pointed out that attitude refers to the
knowledge we possess and the positive or negative feelings we have about an
object or an activity [25, 26].

25. ~ 25 ~
CHAPTER- IV
RESEARCH METHODOLOGY

26. ~ 26 ~
Introduction
Research methodology is a way to systematically solve the research problem, as
to how research is done scientifically. It consist of the different methods that
generally adopted by researcher to study his research problem along with logic
behind them. It is necessary for the researcher to develop certain tests.
Marketing research specifies the information required to address these issues;
designs the method for collection information manages and implements the data
collection process; analysis the results and communication the findings and their
implication.
The following are the methods adopted for the projects:
1. The Research Design is made as per the requirements of the project.
2. For the secondary data collection, internet is used.
3. For the primary data collection, the survey method has been preferred.
4. All the questions are incorporated in the form of a questionnaire to get quicker
data through the direct survey method.
Research Design
“Research design is the plan, structure and strategy of investigation conceived so
as to obtain answer to research question and to control variance.”
- BY KERLINGER
After choosing the subject and the area to conduct the research, it is decided to
establish the theme or the important factor upon which the entire project is to
base.
At conclusive design as the outset, the objectives of the research were identified.
There upon, the research was undertaken upon consideration, the researcher
chose the statistical it suited the research requirements. This method was
warranted as he had decided to embark upon a survey and the analysis and
interpretation of the findings the surveys of can only be done properly only if he
chose the statistical design.

27. ~ 27 ~
At the outset may be noted that there are several ways of studying and tackling a
problem.
There is no signal perfect design. The research design can be classified in to true
broad categories:
a) Exploratory
b) Descriptive
c) Casual
a) Exploratory Research is focus on the discovery of ideas. It is carried out to
define problems and developed hypothesis to test later. An exploratory study
is generally based on the secondary data that are reading available. It does not
have to change his focus of direction, depending on the availability of new
ideas and relationship among variables.
b) Descriptive Studies are undertaken in many circumstances. It can be
complex, determining a high degree of scientific skill on the part of the
researcher.
c) Casual Research helps in determined cause and effect relationship. Between
two or more variables.
The present study seeks to find out Consumer Behaviour towards Online
Purchase of Smartphones in Delhi-NCR. The study also aims at findings out the
drawbacks of the marketing set up of Online Retailers of Smartphones. So, this
makes the study a descriptive one.
Research Questions
In the research questionnaire, four main segments categorized as general
demographics variables, identified variables, consumers concern in online
purchasing, post purchase behaviour are highlighted through following such as;
1. Which gender is the most rely on the online shopping in Delhi-NCR?
2. Which income class in more inclined toward online shopping in this country?

28. ~ 28 ~
3. What is majority of consumers’ level of education?
4. What factor consumer prefer during online purchasing?
5. How they get purchasing idea?
6. How consumers do research for the products?
7. Which factors influence consumer behaviours in the process of purchasing?
8. What are the major factors of consumer concern towards online shopping?
9. Do consumers have fear towards online shopping and why?
10.Why online shopping is still far behind in Delhi-NCR as compare to other
countries?
Source of Data
The sources of data collection methods are as follows:-
a) Primary data:
The primary data is that which details we collect first time from the market and
also used first time in the research. We also say that the information is first time
in the research decision. To collect the primary data questionnaire is prepared
structure non-disguise questionnaire is prepared. It is fresh and originally
collected by the survey. I have used only primary data in calculating the study
and collect the data.
Primary data: Questionnaire
b) Secondary data:
Secondary data are those data which are already collected by someone for some
purpose and are available for the present study; secondary data are already
collected by the internet, journals, research papers and library’s books. When the
secondary data are sufficient, the researcher has to be satisfied with the primary
sources of data. Secondary data can be used as bases for comparison with primary
data have been collected by questionnaire.
Secondary data: Websites, Books, E-Journals.

29. ~ 29 ~
Data Collection Method
Sampling plan
Sampling is a process of obtaining. The information about the entire population
by examine a part of it .The effectiveness of the research depends on the sample
size selected for the survey purpose.
1. Sampling Unit:
It means “Who is to be surveyed”. Here target population is decided and it is who
are active internet users interested to purchase “Smartphones” while shopping
Online and sampling frame is developed so that everyone in the target population
has known chance of being sampled. So the survey is conducted particularly in
Delhi-NCR.
2. Sample size:
For the purpose of proper survey, there is need of perfect research instruments to
find out sample size for more accurate result about consumer behaviour towards
online shopping of smartphones in Delhi-NCR. There were 100 respondents.
3. Sampling Method:
“Convenience sampling is the non-probability sampling techniques where
subjects are selected because of their convenient accessibility and proximity to
the research”. It is the easiest way to analyse the data.
Data is collected from as many respondents as possible but since the study is
about people of Delhi-NCR so it is assumed that there will be little variation in
population making it more approved generalized to the response rate. The
sampling method for people of Delhi-NCR took also place on a convenience basis
since the people that agree to answer the questionnaire are those that were chosen.

30. ~ 30 ~
CHAPTER- V
DATA ANALYSIS & FINDINGS

31. ~ 31 ~
Introduction
In this chapter, the results from the questionnaire and the distribution of collected
data among the respondents has been discussed and presented.
The questionnaire was designed to collect the primary data and further on to
analyse the data and how consumers behave against the importance of price,
convenience, trust, loyalty when they purchase online. The questionnaire was
divided to, first, the demographics segmentation among the respondents and
second to, collect the data about the factors like price, convenience, and brand
decision making process shopping online.
The questionnaire consciousness, safety, trust which effect directly or indirectly
to the and ultimately highlight the typical behaviour of consumer while as you
know divided into four main segments such as general, Consumer Behaviour in
Buying Process, Customer concern in online shopping and Post Purchase
Behaviour and Experience.

32. ~ 32 ~
Responses to Questions
Table No.1- Gender Analysis
Gender Frequency Percentage
Male 58 58 %
Female 42 42 %
Figure 8
From the above table and figure, we can easily analyse that majority of the males
are respondents of the survey as compared to females, we have 58% of males and
42% percentage of females have participated in this survey. The survey was
conducted in the different areas of Delhi-NCR.
58.00%
42.00%
Gender Analysis
Male Female

33. ~ 33 ~
Table No. 2- Age Analysis
Age Distribution Frequency Percentage
20-25 years 82 82 %
26-30 years 13 13 %
31-35 years 1 1 %
35 years or more 4 4 %
Figure 9
From the above figure, it is clear that in this survey we have 100 respondents of
age of 20-25 years with 82% which is the highest percentage among other age
distribution. In age distribution of 26-30 years, we have 13% and 1% fall in 31-
35 years of age and rest 4% fall in more than 35 years old respondents. The
questionnaire responses mainly show the young generation which is actively part
of the research.
82.00%
13.00%
1.00%
4.00%
Age Analysis
20-25 years 26-30 years 31-35 years 35 years or more

34. ~ 34 ~
Table No. 3- Income Distribution
Monthly Income Frequency Percentage
Less than INR 30k 67 67 %
INR 31k- 60k 24 24 %
INR 61k- 1.2L 6 6 %
Above INR 1.2L 3 3 %
Figure 10
From the survey, it is analyzed that 67% of the respondents fall under less than
INR 30K income category as major respondents are from the age group 20-25
years. Rest of the respondents i.e. 24%, 6% and 3% are from INR 31-60K, INR
61K-1.2L and above INR 1.2L respectively.
67.00%
24.00%
6.00%
3.00%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less than INR 30k INR 31k- 60k INR 61k- 1.2L Above INR 1.2L
%ageofRespondents
Income
Income Distribution

35. ~ 35 ~
Table No. 4- Frequency of Online Shopping
How frequently do you buy
online?
Frequency Percentage
Once in 6 months 73 73 %
Once in a year 25 25 %
Never 2 2 %
Figure 11
Majority of the respondents had bought online only once in 6 month, which is the
73% of the total respondents; highest among others segmentation. 25% of
respondents have bought things online once in a year and 2% respondents had
never bought things online. It is clear from the data that majority of the people in
Delhi-NCR are buying things online once in 6 months.
73.00%
25.00%
2.00%
Frequency of Online Shopping
Once in 6 months Once in a year Never

36. ~ 36 ~
Table No. 5- Online Shopping Duration
For how long have you been shopping
online?
Frequency Percentage
Less than a year 14 14 %
1-5 years 67 67 %
More than 5 years 19 19 %
Figure 12
From the above question, it is clear that from 14% of respondents have been doing
online shopping for less than a year, it indicates that people in Delhi-NCR are
addicted to online shopping. While 67% respondents have been doing online
shopping since 1 to 5 years and 19% have been doing online shopping more than
5 years.
14.00%
67.00%
19.00%
Online Shopping Duration
Less than a year 1-5 years More than 5 years

37. ~ 37 ~
Table No. 6- Product Segmentation
What products do you normally purchase
online?
Frequency Percentage
Books 36 36 %
Mobile 71 71 %
Computer/ Laptop 20 20 %
Camera 13 13 %
Clothes 80 80 %
Software’s 13 13 %
Other (Accessories, Beauty Products, Jewellery,
Personal Care Products, Kids Products, Footwear,
Household Items, Groceries, Electronics, etc.)
19 19 %
Figure 13
From the above chart, total 100 respondents who had made online purchasing out
of which 71% respondents bought smart phones. It is the second highest
frequency of respondents after 80% of online purchase of clothes. Smartphones
is followed by Books with 36% and Computer/Laptop with 20% of online
purchase. 19% of consumers purchase other products, followed by online
purchase of Software’s and Camera with 13% each.
36%
71%
20%
13%
80%
13%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Books
Mobile
Computer/
Laptop
Camera
Clothes
Software’s
Other
%age of Respondents
Products
Product Segmentation

38. ~ 38 ~
Table No. 7- Reason for Shopping Online
Reason for online shopping of
Smartphones?
Frequency Percentage
Price 73 73 %
Convenience & Time Saving 70 70 %
Trust 8 8 %
Brand Conscious 19 19 %
Friend Referral 13 13 %
Not Available Offline 4 4 %
Figure 14
73% of the respondents stated that the price as the main reason for online purchase
of smartphones whereas in the current fast moving world, no one wants to waste
their time and 70% of respondents chosen Convenience & Time Saving as the
next major reason as online purchase deliver products to home. 19% were Brand
Conscious, 13% were influenced and referred by friends followed by 8% of
respondents trusted online portals for shopping. In last, 4% said that product was
not available in the market or exclusively available on online portals.
73%
70%
8%
19%
13%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Price
Convenience &
Time Saving
Trust
Brand
Conscious
Friend
Referral
Not Available
Offline
%age of Respondents
Reason
Reason for Shopping Online

39. ~ 39 ~
Table No. 8- Offline Store Visit Analysis
Do you go to retail store before making
your final purchase online?
Frequency Percentage
Yes 39 39 %
No 61 61 %
Figure 15
This question was asked to judge the consciousness of consumer and approach
regarding the selection of product about offered online products. It is analyzed
that 39 % of respondents do visit the retail store to see and check the actual
product before actually buying from an online store while 61 % of them don’t
bother to see the actual product before purchasing online.
39.00%
61.00%
Offline Store Visit Analysis
Yes No

40. ~ 40 ~
Table No. 9- Frequency of Online Purchase of Smartphone
Approximately how many times did you
shop smartphones online during last
year?
Frequency Percentage
Once 63 63 %
1-3 times 32 32 %
More than 3 times 5 5 %
Figure 16
It was asked in survey questionnaire that how many times they bought
smartphones over the internet during last year. As per response, 63% people say
that they bought smartphones at least once in a year and 32% of respondents say
1 to 3 times in a year while 5% respondents say more than 3 times in a year, It
can be easily analyzed from sample of data that majority of the people bought
goods once a year means they are not addicted to online shopping.
63.00%
32.00%
5.00%
Frequency of Online Purchase of Smartphones
Once 1-3 times More than 3 times

41. ~ 41 ~
Table No. 10- Idea of Online Purchase of Smartphone
How did you get the idea of buying
specific brand of smartphone through an
online store?
Frequency
Referred by a friend/ family member 38
Online Advertisement 33
Saw an offline advertisement (Local smart
phones store)
6
Just waiting for launch of that product since
long
23
Figure 17
To find the motivation and idea behind the purchase of smartphones, following
question was asked that how they got the idea of buying specific electronics
product through an online store.
38 out of 100 respondents are influenced and referred by family and friends
followed by 33 respondents saw an online advertisement on different websites
and stores and are inclined to do online shopping. So, in Delhi-NCR, it would be
better to do both online and offline advertisements as majority of the people
bought smartphones on the recommendations of family members and after
interacting with online advertisements.
38
33
6
23
0
5
10
15
20
25
30
35
40
Referred by a friend/
family member
Online Advertisement Saw an offline
advertisement (Local
smart phones store)
Just waiting for
launch of that product
since long
No.ofRespondents
Idea
Idea of Online Purchase of Smartphone

42. ~ 42 ~
Table No. 11- Specifications of required Smartphone
How do you find the specific
smartphones fitting to your own needs?
Frequency
Product Ratings 5
Product reviews 38
Advice from offline store 1
Referred by colleague / Friend / Family
member
6
Compare description and prices 35
New technology/ product in market 15
Figure 18
38 out of 100 respondents get their specific product after checking product
reviews while 33 said that they compared price and specifications of the product.
15 respondents has chosen new technology, 6 were referred by their knowns and
1 was advised by an offline store.
5
38
1
6
35
15
0
10
20
30
40
50
60
70
80
90
100
Product
Ratings
Product
reviews
Advice from
offline store
Referred by
colleague/
Friend/ Family
member
Compare
description
and prices
New
technology/
product in
market
No.ofRespondents
Specifications
Specifications of required Smartphone

43. ~ 43 ~
Table No. 12- Online Store Visit before purchasing Online
How many online stores on average do
you visit before purchasing a
smartphone?
Frequency
One to three online stores 71
3 to 5 online stores 24
More than 5 stores 5
Figure 19
71% of the people visit 1 to 3 stores before the actual purchase. 24% of people
visit 3 to 5 stores and 5% of the respondents even go beyond 5 stores to do
research about the product.
Majority of the people of Delhi-NCR do research before online purchasing of
smartphones by going through different online stores. Therefore, the Smart
Phones companies would require doing market research before launching the
product and in market research they would do analysis of online stores and
product delivery and return policies, reviews and rating of the products. It will
increase sales of the smart phones in Delhi-NCR ultimately.
71
24
5
Online Store Visit before purchasing Online
One to three online stores 3 to 5 online stores More than 5 stores

44. ~ 44 ~
Table No. 13- Factors affecting Final selection of Product
What are the crucial factors which affect
your decision making in the final selection
of the product?
Frequency Percentage
The Best prices 74 74 %
Convenience & Time saving 45 45 %
Not available in local stores 31 31 %
Price comparison available 47 47 %
Product reviews available 55 55 %
Figure 20
As analyzed from the result in online shopping in Delhi-NCR, consumer concerns
are price, and product reviews. 74% of respondents consider price as the most
important factor followed by 55% of product reviews and 47% says that
comparison of prices is very helpful in final selection. Convenience & Time
saving is important for 45% of respondents. For 31%, product was not available
on offline stores.
In Delhi-NCR, consumers are very conscious about cost cutting and time saving;
majority of the peoples’ decision is affected by the best price offer and product
reviews, therefore, the sellers of the Smartphones must take price and packaging
& delivery service into consideration while selling on their online stores in order
to increase their sales.
74.00%
45.00%
31.00%
47.00%
55.00%
0%
10%
20%
30%
40%
50%
60%
70%
80%
The Best prices Convenience &
Time saving
Not available in
local stores
Price comparison
available
Product reviews
available
%ageofRespondents
Factors
Factors affecting Final selection of Product

45. ~ 45 ~
Table No. 14- Consumer Behaviour after purchasing the Smartphone
After purchasing the smartphone, do you? Frequency
Discuss with Friends / Family about the
purchased Smartphone 83
Write a review about the Smartphone 11
Contact typically the seller for further guidance
if needed 6
Figure 21
In Delhi-NCR, after purchasing of smartphone, 83 people share their online
shopping experience and about the product with their friends and family. 11
consumers, wrote reviews about the product and service whereas only 6
respondents, contacted the seller for certain details of the purchased product.
It is evident from the research that in Delhi-NCR, the family system and the social
networking is strong. People go for face to face conversation as compared to
online social networks. Therefore, the sellers of the Smart Phones who are
providing their product online must consider this norm in this country and provide
the best quality as referrals based on consumer experience.
83
11
6
0
10
20
30
40
50
60
70
80
90
100
Discuss with Friends / Family
about the purchased
Smartphone
Write a review about the
Smartphone
Contact typically the seller
for further guidance if needed
%ageofRespondents
Consumer Behaviour
Consumer Behaviour after purchasing the Smartphone

46. ~ 46 ~
Table No. 15- Barriers affecting online purchase of Smartphone
What are the main barriers which keep you
away from shopping online of smart phone?
Frequency Percentage
Safety of payment 31 31 %
Low trust level of online store / Brand 37 37 %
Value added tax / customs duty 13 13 %
High Shipping Cost 14 14 %
Refund Policy 33 33 %
Warranty and claims 45 45 %
Delivery too slow 10 10 %
No Barrier 4 4 %
Figure 22
In the survey questionnaire it was asked, what are the main barriers which keeps
consumers away from shopping online The particular questions was asked from
both the consumer who has been doing online shopping as well as from those
who even don’t go for online shopping to judge their concerns regarding shopping
over internet.
31%
37%
13%
14%
33%
45%
10%
4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Safety of payment
Low trust level of
online store / Brand
Value added tax /
customs duty
High Shipping Cost
Refund Policy
Warranty and claims
Delivery too slow
No Barrier
%age of Respondents
Products
Barriers affecting online purchase of Smartphone

47. ~ 47 ~
From the survey, it is found that warranty & claims is the biggest barrier in online
shopping in Delhi-NCR. 45% of the respondents ranked warranty & claims as the
main concern and 37% do not trust much on online stores.
33% of people says that there are issues with the refund policies of the online
stores while 31% reject the idea of online shopping due to safety issues while
making online payment. 14% rejects the idea of online shopping due to high
international shipping cost involved and 13% do prefer local stores due to value
added tax in Delhi-NCR. 10% do not shop online due to slow delivery and 4%
did not find any barrier while shopping online.
This particular question was asked from seller’s point of view, so that they will
consider this point and try to reduce these barriers for consumers and change the
mind set of consumer for online purchasing of Smartphones.

48. ~ 48 ~
Hypothesis Analysis
Objective:
To determine the role of price and time convenience in online shopping of
smartphones.
Hypothesis:
H0: Price and Time convenience plays no significance in making customer to go
for online shopping for smartphones
H1: Price and Time convenience plays significance in making customer to go for
online shopping for smartphones
Excel:
Figure 23: Chi-Sq. Test Analysis using Excel
Interpretation:
After applying the chi-square test p value comes out to be 0.028566 which is
less than 0.05. This makes null hypothesis rejected. Therefore, it says that Price
and Time convenience plays significance in making customer to go for online
shopping for smartphones.
DATA
Price Time saving and Convenience Both Total
Observed Value 18 10 26 54
Expected Value 18 18 18 54
ANALYSIS
Degree of Freedom n-1 (3-1) 2
Alpha
P-Value CHISQ.TEST(actual range,expected range) CHISQ.TEST(C5:E5,C6:E6) 0.028565501
Critical Value CHISQ.INV.RT(alpha,degree of Freedom) CHISQ.INV.RT(I5,K4) 5.991464547
Test Statistics CHISQ.INV.RT(P value ,degree of Freedom) CHISQ.INV.RT(K6,2) 7.111111111
0.05

49. ~ 49 ~
Findings
This study was accomplished to determine the consumer behavior in Delhi-NCR
towards online shopping for Smartphones. Online shopping is increasing day-by-
day in Delhi-NCR. In research, online consumer behavior theories applied named
as goal oriented online buyer and experimental motives of online shopping and
highlighted into consumer characteristics, online consumer behavior, 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. This study revealed that online shopping is mostly influenced by social
network/circles and personal experience. Consumers are doing online shopping
because of convenience and time saving.
“Search as recreation” mind set in is studied under experimental online shopping
behavior.
The survey questionnaire was prepared and distributed among personal contacts
and received 100 responses. From the survey, it is accessed that online shopping
is approximately equally popular among both males & females as in Delhi-NCR,
58% of online shopping was made by males while 42% were females and
majority of the respondents were young aged between 20 to 25 years old with
82% and income distribution fell into less than 30k as lower middle class while
majority of the respondent are educated and have done graduation.
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 Smartphones, he or she
is affected by multiple factors. The main crucial identified factors are time saving,
the best price, convenience and reviews by others. Time saving & convenience is
the most popular factor among people of Delhi-NCR because by purchasing
products online, it directly gets delivered to the desired address. People compare
prices in online stores and then review all feedbacks and rating about product
before making the final selection of product and decision. To purchase online

50. ~ 50 ~
things the Smartphones are in demand because of the best price, convenience and
time saving.
The main barrier in the process of online shopping is the warranties & claims.
People of Delhi-NCR are afraid that after shopping will the company’s service
center consider warranties provided by online sellers. Due to which consumers
are reluctant to make online purchasing, then second the most familiar barrier is
the low level of trust on online stores therefore, sellers have to make proper
strategies to increase the consumer’s level of trust on them.

51. ~ 51 ~
CHAPTER- VI
BIBLIOGRAPHY

52. ~ 52 ~
Industry Overview
 https://www.ibef.org/industry/ecommerce.aspx
Models/ Theories
 www.jistem.fea.usp.br; Vol. 14, No. 1, Jan/Apr., 2017; pp. 21-38
Literature Review
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55. ~ 55 ~
CHAPTER- VII
ANNEXURES

56. ~ 56 ~
Annexure I- Questionnaire
1. What is your gender?
a) Male
b) Female
2. Your age?
a) 20-25
b) 26-30
c) 31-35
d) 36 & Above
3. What is your monthly income?
a) Less than Rs. 30,000
b) Rs. 31,000 to Rs. 60,000
c) Rs. 61,000 to Rs. 120,000
d) More than 120,000
4. How frequently do you buy online?
a) Once in six month
b) Once a year
c) Never
5. For how long have you been shopping online?
a) Less than a year
b) 1 to 5 years
c) More than 5 years
6. What products do you normally purchase online? (You can select more than
1)
a) Books
b) Mobile
c) Computer / Laptop
d) Camera
e) Clothes
f) Software
g) Other (Please Specify) _____________

57. ~ 57 ~
7. Reason for online shopping of Smartphone?
a) Price
b) Convenience & time saving
c) Fast Shipping
d) Trust
e) Brand conscious
f) Friend Referral
g) Other (Please Specify) _____________
8. Do you go to retail store before making your final purchase online?
a) Yes
b) No
9. Approximately how many times did you shop smartphones online during the
last year?
a) Once
b) 1 to 3 times
c) More than 3 times
10.How did you get the idea of buying specific brand of smartphone through an
online store?
a) Referred by friend/family member
b) Online advertisement
c) Saw an offline advertisement (Local smartphones store)
d) Just waiting for launch of that product since long
11.How do you find the specific smart phones fitting to your own needs?
a) Product Ratings
b) Product reviews
c) Advice from offline store
d) Referred by colleague / Friend / Family member
e) Compare description and prices
f) New technology/ product in market
12.How many online stores on average do you visit before purchasing a
Smartphone?
a) One to three online stores
b) 3 to 5 online stores
c) More than 5 stores

58. ~ 58 ~
13.What are the crucial factors which affect your decision making in the final
selection of the product (Select all which apply)
a) The Best prices
b) Convenience & Time saving
c) Not available in local stores
d) Price comparison available
e) Product reviews available
14.After receiving the Smartphone, do you?
a) Discuss with Friends / Family about the Smartphone
b) Write a review about the Smartphone
c) Contact typically the seller for further guidance if needed
d) Others specify _______________
15.What are the main barriers which keep you away from shopping online of
Smartphones?
a) Safety of payment
b) Low trust level of online store / Brand
c) Value added tax / customs duty
d) High Shipping Cost
e) Refund Policy
f) Warranty and claims
g) Delivery too slow
h) Others reasons (please specify) __________________