consumer perception towards online shopping in india

"PERCEPTION OF INDIAN CONSUMER

TOWARDS

ONLINE SHOPPING"

SUBMITTED IN THE PARTIAL FULFILLMENT

FOR THE REQUIREMENT OF THE AWARD OF DEGREE

OF MBA

UNDER THE GUIDANCE OF: SUBMITTED BY:

DR. VIJITA AGGRAWAL MANISH MAHARJAN

USMS ROLL NO: 11616603911

2011-13

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

SECTOR-16C DWARKA, DELHI-110075, (INDIA)

DECLARATION

I, MANISH MAHARJAN, hereby declare that the project titled "PERCEPTION OF INDIAN CONSUMER TOWARDS ONLIEN SHOPPING" is an original piece of research work carried out by me under the guidance and supervision of Dr. Vijita Aggrawal. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of Master in Business Administration to GURU GOVIND SINGH INDRAPRASTHA University.

Date:

Signature:

Name: Manish Maharjan

Enrollment Number: 11616603911

ACKNOWLEDGEMENT

The successful completion of this report leaves me indebted to the following distinguished personal and they deserve special acknowledgement.

I am indebted to Dr. Vijita Aggrawal for extending her guidance for all this time of my project work. She has always presented us innovative scientific ideas and has constantly helped us in overall development of our knowledge, skills, and personality. I am also thankful to the other faculty members of USMS for extending their valuable support for this project.

I wish to express my sincere appreciation and gratitude to all those who in one-way or the other made this report successful one.

Last but not the least; I am also extended our sincere thanks to the Respondents, who helped us during the course of our project and for their gracious attitude.

Manish Maharjan

EXECUTIVE SUMMARY

Consumers are playing an important role in online shopping. The increasing use of Internet by the younger generation in India provides an emerging prospect for online retailers. India has more than 100 million internet users out of which one half opt for online purchases and the number is rising sharply every year. The growth in the number of online shoppers is greater than the growth in Internet users, indicating that more Internet users are becoming comfortable to shop online. Making purchase without leaving the place is of great interest to many consumers. Not only does these online shopping offer good deals, but also brings optimum convenience to the consumer. Moreover, the use of Internet tools for price searching and comparison provides an additional advantage in consumers ' final decision, as they can purchase their desired products in the lowest available price. There are many advantages of doing online shopping like there is no geographical boundary-a consumer in Delhi can shop for something which an e-store in Punjab is offering, there is no time restrictions- the shopping is 24x7, the payment is online-there is no need to even handle the cash.

This paper focuses on the understanding the perception on Indian consumers towards online shopping. This paper mainly focus on the demographic factors on consumers involve in online shopping and the other factors such as price, security issues, commitment delivery time etc. For this purpose the data from 100 respondents was collected in the form of questionnaires. The questionnaires have been collected through mails and the social networking site that is facebook. In this study key dimensions of online shopping as perceived by consumers in India are identified and the different demographic factors are also studied which are the primary basis of market segmentation for retailers. It was discovered that delivery time, price, reputation of the company, privacy, commitment factor, customer service and security are the key factors which influence consumers ' perceptions of online shopping. The study revealed that the perception of online shoppers is independent of their age and gender, education & gender and not independent of income & gender. There are certain limitations that created obstacles while conducting the research.

TABLE OF CONTENTS

TITLE PAGE

DECLERATION

CERTIFICATE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CHAPTER I: INTRODUCTION

Introduction ……………………………………………….. 1

Objective of the study……………….………….. 2

CHAPTER II: LITERATURE REVIEW

2.1 Conceptual framework…………………………………………………………. 4

2.2 Reviews from previous research……………………………………………….. 5

CHAPTER III: RESEARCH METHODOLOGY 6-12

CHAPTER IV: DATA ANALYSIS AND INTERPETATION 13-38

CHAPTER V: CONCLUSION 39

CHAPTER VI: LIMITATION 41

REFERENCES

ANNEX

CHAPTER I

INTRODUCTION

1.1 INTRODUCTION

The numbers of internet users are increasing because of the accessibilities of technology, the availability of information, and the ability to interact through the Internet increase and evolve. The obvious capabilities of the Internet include road for gathering information, purchasing a product, or rendering a service. These advances in Internet technology allow for the expansion of shopping options beyond traditional methods that may be more time consuming. Issues with having to physically gather information with offline shopping methods are alleviated, and customers are better able to efficiently use their time. For instance, instead of having to physically visit different stores to compare prices or rely on circular pamphlets in newspapers, a consumer is able to search and retrieve needed information through the Internet. The Internet explosion has opened the doors to a new electronic world. Consumers are now able to use the Internet for a variety of purposes such as research, communication, online banking, and even shopping. With such advantages, the Internet is rapidly becoming the main method of communication and of conducting business conveniently. With a growing number of households turning towards the Internet and the world of e-commerce to shop, invest, make payments, and do online banking, new technological advancement will have to come about to make these transactions secure.

Electronic retailing or online shopping, is shopping on the internet without the consumer having to visit a physical store. With the increased use of the internet, the scope for the online shopping is growing. A In 2012, 9.6 million Australians aged over 15 years will make online shopping purchases, according to the latest research by PwC and Frost & Sullivan (2012). Over the next 12 months, 88% of online shoppers in Australia are expecting to maintain or increase their online expenditure, indicating that there is solid momentum in online shopping uptake. This continual rapid growth in Australia and offshore is driving structural changes in the traditional retail model. US online population will increase nearly 50%, from 1471.5 million in 2001 to 210.8 million by 2006 (Cumulative Annual Growth Rate of 8.2%) and online retail sales will grow from US$47.8 billion in 2002 to $130.3 billion in 2006. Similarly WIPO (2007) cited that about 10% of the world 's population in 2002 was online, representing more than 605 million users.

In India also the internet user base has grown to an impressive number from 87.1 million by December 2012 from 78.7 million users in October 2012, who accessed Internet through dongles and tablet PCs according to Internet and Mobile Association of India (IAMAI) and IMRB (Dec 2012). According to them India is expected to have close to 165 million mobile Internet users by March 2015, up from 87.1 million in December 2012 as more people are accessing the web through mobile devices and dongles.

Nearly 60% of online users in India visited a retail site in November 2011, with the number of online shoppers increasing 18% in the past year said com Score in a research report.

According to the report on visitation to the top retail and coupon sites in India, coupon sites are rapidly gaining in popularity, with 16.5% of the Indian online population visiting the category in November, led by Snapdeal.com and Mydala.com. In November, 27.2 million online users in India, aged 15 and older, accessed the retail category from a home or work computer, an increase of 18% from the previous year, as consumers continue to turn to the web to shop for and purchase items and retailers continue to increase their online visibility through active marketing campaigns. (www.moneylife.in, Feb 28th, 2013).

There are many advantages of doing online shopping like there is no geographical boundary-a consumer in Delhi can shop for something which an e-store in Punjab is offering, there is no time restrictions- the shopping is 24x7, the payment is online-there is no need to even handle the cash. Despite the advantages of online shopping all the consumers are not participating in online transaction. Many business firms are more and more businesses continue to establish an online presence, they are finding that some consumers are still reluctant to shift in that same direction. For various consumers there are still concerns with security and passing personal data over the Internet. There is a disparity between the number of consumers who visit a site and the number of actual purchases being made. Despite the millions of people who use the Internet everyday and visit various shopping sites, the number of consumers who do not abandon their shopping carts but actually complete a purchase averages to only about three percent. This leaves a large portion of the Internet population as non-participants in online transactions as compared to those who fully complete transactions online and make purchases. Instead, these non-participants may abandon the purchase completely or fulfill the transaction in an offline setting. As such, it is important for online businesses or offline businesses interested in venturing into the online market to understand their consumers ' perceptions, online and offline, and what factors influence their shopping decisions. With better understanding of what factors play into consumer decision making in making transactions online or offline, retailers and businesses can be better gear themselves to serving their customers in either of the shopping venues.

1.2 OBJECTIVES OF THE STUDY

To know the demographic profile of the customers and its impact if any on the online buying.

To know the factors affecting the perception of Indian online buyers.

CHAPTER II

LITERATURE REVIEW

This part includes the Review of previous studies, articles and conceptual framework for the related studies. More analysis is not sufficient to present real framework of the study. So review of related materials should be deal with to give the research a clear vision, past study and knowledge provides foundation to the present day. Review of literature includes the following topics:

2.1 Conceptual Framework

2.2 Reviews from Previous Studies

2.1 CONCEPTUAL FRAMEWORK

As Internet usage is increasing, so is online shopping particularly in those countries whose Marketing infrastructures are well developed. Customers can shop at anytime and have access to products not available in their geographic region. Moreover, they are now able to access the Internet, not only from their personal computers, but also from advanced electronic devices such as Palm Pilots and mobile phones. The growth of Internet technology in India has enormous potential as it reduces the costs of product and service delivery and extends geographical boundaries in bringing buyers and sellers together. Also, due to an increase in high-speed Internet access connections, lower connection costs, and increasing consumer competence, e-commerce activity will continue to grow as the availability and ease with which the Internet provides consumers the ability to handle needed tasks increasingly develops. However, not all consumers are turning to the Internet for shopping. While the number of Internet users who have made a purchase at one time is more than half in the United States, this does not explain the disparity between the number of visits websites recorded and the number of actual purchases made online.

This research mainly talks about the factors that affect the consumers ' online shopping behavior of consumer. It is not sure that all the people who visit websites do make online purchase. This will also focus on the point that what is the consumes perception towards online shopping and their intention to make purchase are not only affected by the ease of internet, usefulness and enjoyment but also affected by the also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.

The other thing that the research will focus is that do the demographic factors make any influence on the online shopping. This research will focus on the point that do these demographic factors like age, gender, income level etc really make any influence on the buying behavior of the consumers. Not only on the demographic factor that this research will focus on, will also try to find whether there is any relationship between the customers and the website quality. Do these online shopping websites quality make any influence on the buying intention of the buyers?

2.2 REVIEWS FROM PREVIOUS RESEARCH

UPADHYAY.P AND KAUR J (2006),"Analysis of Online Shopping Behaviour of Customer in Kota City". This study has focused on factors which online Indian buyers keep in mind while shopping online. The objective of the study was to create an awareness of e-commerce and make people interested in internet commerce. According to the study, they found that the most preferred product of online buying is travelling tickets and clothing remains the least preferred choice of online shoppers and most of the consumers who have experienced online shopping are very satisfied

ZIA UL HAQ (2009) in her research on "Perception towards online shopping: an empirical study of Indian consumers" said that the perception of online shoppers is independent of their age and gender but not independent of their qualification & gender and income & gender. According to the researcher consumers ' perceptions of the customer service, commitment and web security of online purchasing exhibit significant relationships with their online buying intention. Web security was the major concerning factor to influence the online shopping. They have a fear that their important documents passwords can be hacked due to online shopping, so the major concern of consumers is about the web security. She also says that Marketers need to realize that the online marketing environment affects the way consumers view and develop relationships. During her study she found that Indian consumers considered that their online purchasing will be influenced by good quality website. Thus it is believed that overall website quality does help in enhancing the consumers to buy online. Also commitment is the important factor that affects online buying and most of the consumers are concerned about on-time delivery of their products. The results of this study show that there is a significant association between commitment and online shopping.

CORPUS CHRISTI(2009) in his research on "The perception of consumer on online shopping" has provided some of glimpse about the consumers mind as what factors are perceived differently by consumers who prefer online shopping and those who prefer offline shopping. According to him there are five factors which that the two group consumers perceived differently. These factors are (1) perceived risk with online shopping, (2) past experience with online shopping, (3)perceived benefits of online shopping, (4) perceived ease of online shopping, and (5) perceived uncertainty of online shopping. Through these factors the business firms should be aware of their online consumers ' perception and of what preference for online and offline shopping avenues. Focusing on these factors the researcher thinks that the firms can don necessary work to attract and retain more and more customers. In his research after all the finding he says that Being aware of what perceptions drive consumers to pick and prefer one avenue of shopping to another allows businesses to better cater to consumers, thus helping them attract and retain customers.

RASTOGI.A.K (2010), "A study of Indian Online Consumers and their Buying Behaviour" made an attempt to study the buying behaviour of Indian online consumers in his research. According to his study about 44% students use Internet in India and overall 72% of young people access Internet on regular basis. The findings of the study shows that ratio of male consumers is very high in online shopping and most of the respondents pay in cash on delivery. This research shows that online shopping has very bright future in India. . Perception towards online shopping is getting better in India. With the use of internet, consumers can shop anywhere, anything and anytime with easy and safe payment options. Consumers can do comparison shopping between products, as well as, online stores.

VAGGELIS SAPRIKIS, ADAMANTIA CHOULIARA AND MARO VLACHOPOULOU (2010) conducted the research on "Perceptions towards Online Shopping: Analyzing the Greek University Students ' Attitude" observed the significant differences between the two groups of respondents that is online shopping adaptors and online shopping non adaptors. From their research they concluded that adopters had higher expectations from online shopping on issues relating to privacy policy and risk. Also they identified between adopters and non-adopters regarding their particular perceptions on advantages and problems of online shopping.

MEHRDAD SALEHI(JAN 2012) in her study on "Consumer Buying Behavior towards Online Shopping Stores in Malaysia" has focused on nine independent variables namely appearance, quick loading, security, sitemap, validity, promotion, attractiveness, believability, and originality that influence the buying behavior on consumers while doing online shopping. During her research she found that first five factors influence consumers towards online shopping and security is the factor that contributes most towards online shopping. According to her the last four factors (promotion, attractiveness, believability, and originality) don 't significantly influence online shopping intention which indicate that advertisement doesn 't have an important effect on online shopping. Security and validity of website were the one that influences the online consumers. Also attractiveness had the minimum influence on online shopping intention.

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KANWAL GURLEEN( MAY 2012) in his study on "Consumer Buying Behavior towards Online Shopping, the case of punjab" stated that Price consciousness, Convenience and Variety, Easy Payment options and Challenges of Online Shopping are the four major factors that have significant influence on the perception of the online consumer toward online shopping. As that of the other researchers on this topic, he also found the same problem that the consumers are not able to trust the websites as they have to give their credit card details. Some of the websites the customers don 't feel trustworthy. Also the online purchases take a longer time in shipments and deliveries. The researcher found that the psychology of an Indian consumer is still the same of checking the product physically before purchasing it, which creates a mental hurdle for online shopping.

DAHIYA RICHA (2012), from her research on "Impact of demographic factors of consumers on online shopping behavior: A study of consumers in India" found that gender impacts frequency of on-line shopping positively and Family Size impacts overall spend on on-line shopping. Her study somewhat suggested that Indian Consumers have perceived online shopping in a positive manner which suggest that online shopping in the country is growing. Despite this the frequency of online shopping is very less. She has also suggested the organizations that to formulate their plans and strategies in the country regarding the online shopping they must use relevant variables and factors which the research has identified. The organizations can prioritize the consumer implicit and explicit requirements in online shopping environment. The results can also be used by various organizations to identify their target customer segments.

MOHAMMAD HOSSEIN MOSHREF JAVADI1,HOSSEIN REZAEI DOLATABADI1, MOJTABA NOURBAKHSH1, AMIR POURSAEEDI1& AHMAD REZA ASADOLLAHI (SEPTEMBER 10, 2012) conducted the research on," An Analysis of Factors Affecting on Online Shopping Behavior of Consumers" where the examined the factors affecting on online shopping behavior of consumers. They created many hypothesis and these hypothesis testing indicated that financial risk and non-delivery risk has negative effect on the attitude towards online shopping behavior. Which suggest that e-retailers should make their websites safer and assure customers for the delivery of their products. According to them if there has been positive effect attitude toward online shopping on online shopping behavior of consumers it would indicate that considering attitude variables make a substantial contribution in online shopping. Also, subjective norms have positive effect on shopping behavior. This means the more people suggest e-buying to each other, the more this buying method will be popular among people. This makes necessary the use of word of mouth marketing for retailers. Domain specific innovativeness has positive effect on online shopping behavior. This means that marketing specialists should target this society in their marketing strategy formulation for better effectiveness of their marketing program. This means that marketing specialists should target this society in their marketing strategy formulation for better effectiveness of their marketing program.

CHAO CHAO CHUANG & DR. FU-LING HU (NOVEMBER, 2012) in their research on," An empirical analysis of the relationship between website characteristics and consumer online buying behavior" concluded that the website security, website design, website reliability and website customer service are the four main factors which affect consumer perceptions of their online purchasing experiences. Online buyers have different viewpoints of these four factors. Website design has the highest rating score, followed by website customer service. Website reliability is ranked third, and the lowest is website security. Also they suggested that with online shopping, consumers can browse the entire product-assortment with competitive prices. In order to consolidate this advantage, E-retailers should choose more famous products or brands to market online. Branded products and services are usually thought by customers as having better qualities. They said that the online shopping company should induce the regular online buyers as they shop most frequently and they should make the desired products available and the purchase transaction easy and also obtain the competitive prices in order to retain their regular customers and increase their loyalty towards the company. As trial customers are interested in browsing on the website maybe they see online shopping as enjoyment and look for the potential entertainment arising from the online shopping experience. The purchase of goods may be incidental to the experience of Internet shopping. If trial online buyers initially have pleasing online shopping experience, they are more likely to continue subsequent shopping behavior: they will browse more, make more unplanned purchasing, and look for more stimulating products. In the face of severe competition and continually increasing customer expectations, e-commerce companies must understand how to identify, help and retain their profitable existing customers. E-retailer should emphasize the enjoyable aspect of online shopping in their promotions for trial online buyers and then create the competitive advantage.

CHAPTER III

RESEARCH METHODOLOGY

The data for the study was gathered through a structured questionnaire. The questionnaire consists of two parts. The first part of the questionnaire included questions about their demographic profile like age, Education, income, living area and gender. The second part consisted of questions measuring all the variables which are used to measure the online shopping. All the questions were utilizing on a Likert scale ranging from 1= strongly disagree to 5 = strongly agree.

Research Design has been classified into the following subsections:

SAMPLE SIZE- Till the date of the submission of this interim report, about 100 questionnaires was distributed through e-mail and social networking sites

SAMPLING PROCEDURE- The respondents were selected by the random sampling.

DATA COLLECTION PROCEDURE

This _primary_ (first hand, or collected by the researcher, i.e., myself, in the present study) and data was used for the analysis. A questionnaire has been designed to collect the required information. The questionnaires were filled by the respondents through the internet (through emails and social networking sites).

[A sample of the questionnaire is showcased in Annexure]

ANALYSIS

Descriptive statistical research technique has been used in the study and statistical packages like SPSS and Microsoft Excel have been used for the analysis.

TOOLS USED:

CHI -SQUARE TEST: A chi-square test is used when you want to see if there is a relationship between two categorical variables. In SPSS, the chisq option is used on the statistics subcommand of the crosstabs command to obtain the test statistic and its associated p-value.

FACTOR ANALYSIS: FACTOR ANALYSIS: Factor analysis attempts to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction to identify a small number of factors that explain most of the variance observed in a much larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis

LIMITATIONS:

Time constraints

Limited sample size

Geographical constraints

CHAPTER IV

DATA ANALYSIS

DEMOGRAPHIC PROFILE OF THE RESPONDENTS

The following table reveals the Gender, Age, Education Occupation, Income and living area of respondents who do online shopping.

TABLE NO:1 GENDER

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

male

54

54.0

54.0

54.0

female

46

46.0

46.0

100.0

Total

100

100.0

100.0

TABLE NO:2 AGE

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

15-20

10

10.0

10.0

10.0

21-25

51

51.0

51.0

61.0

26-30

27

27.0

27.0

88.0

31-35

6

6.0

6.0

94.0

36-40

6

6.0

6.0

100.0

Total

100

100.0

100.0

TABLE NO:3 EDUCATION

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Secondary School

4

4.0

4.0

4.0

10+2

3

3.0

3.0

7.0

Bachelors

40

40.0

40.0

47.0

Masters

51

51.0

51.0

98.0

. P.HD

2

2.0

2.0

100.0

Total

100

100.0

100.0

TABLE NO:4 OCCUPATION

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Student

55

55.0

55.0

55.0

Government Employee

10

10.0

10.0

65.0

Financial Worker

9

9.0

9.0

74.0

Engineers

8

8.0

8.0

82.0

Businessmen

11

11.0

11.0

93.0

Housewife

3

3.0

3.0

96.0

Others

4

4.0

4.0

100.0

Total

100

100.0

100.0

TABLE NO: 5 MONTHLY INCOME (RS.)

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Below 10,000

39

39.0

39.8

39.8

10,000-20,000

21

21.0

21.4

61.2

20,001-29,999

13

13.0

13.3

74.5

30,000-40,000

7

7.0

7.1

81.6

Above 40,000

18

18.0

18.4

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

TABLE NO:6 LIVING AREA

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

City

86

86.0

86.0

86.0

Suburban

11

11.0

11.0

97.0

Village

3

3.0

3.0

100.0

Total

100

100.0

100.0

The above tables reveal that from the sample which we have collected, 55% are males and remaining 46% are females. As far as the age of the respondents are concerned 51% are between 21-25 years followed by 26-30 years with 27%. If we consider the educational qualifications 50% of respondents are postgraduates & 40 % graduates. As far as their monthly income is concerned 39.8% are earning below 10000 rupees followed by 21.4% with an income of 10000-20000 plus per month. As far as occupations of the respondents are concerned 55% are students followed by businessmen with 11% which is followed by government employees, financial workers, engineers, others and housewife with 10%, 9%,8%,4% and 3% respectively. As far as living area of the respondents are concerned 86% are from city area followed by sub urban area with 11% and village with 3%.

1. I THINK SHOPPING ON THE INTERNET SAVES TIME

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

3

3.0

3.0

3.0

Disagree

13

13.0

13.0

16.0

Indifferent

11

11.0

11.0

27.0

Agree

33

33.0

33.0

60.0

Strongly Agree

40

40.0

40.0

100.0

Total

100

100.0

100.0

INTERPRETATION:

From the above table, 40% respondents have strongly agreed that online shopping saves time, 33 % agreed followed by disagree, neither agree nor disagree and strongly disagree with 13%, 11% and 3% respectively. This shows that time is one of the factor that influence people from doing online shopping. The above shown bar graph shows that most of the people do agree that online shopping saves time.

2. IT IS A GREAT ADVANTAGE TO BE ABLE TO SHOP AT ANY TIME OF THE DAY ON THE INTERNET.

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

3

3.0

3.0

3.0

Disagree

6

6.0

6.0

9.0

Indifferent

10

10.0

10.0

19.0

Agree

38

38.0

38.0

57.0

Strongly Agree

43

43.0

43.0

100.0

Total

100

100.0

100.0

INTERPRETATION:

From the above graph, it shows that very few respondents ie 3% strongly disagree that it is a great advantage to be able to shop at any time of the day on the internet.while 43% respondents said they strongly agree that online shopping at any time through internet is the advantage. 38% also agreed on this point while 10% were indifferent and 6% disagreed thatonline shopping at any time through internet is a advantage

3. IT IS MORE DIFFICULT TO SHOP ON THE INTERNET

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

15

15.0

15.0

15.0

Disagree

36

36.0

36.0

51.0

Indifferent

18

18.0

18.0

69.0

Agree

20

20.0

20.0

89.0

Strongly Agree

11

11.0

11.0

100.0

Total

100

100.0

100.0

Interpretation:

From the above graph, it is clear that 36% disagreed that it is difficult to do online shopping and 15% strongly disagreed to this fact. Similarly 18% were indifferent while 20% agreed to the fact that it is difficult to do online shopping while 11% strongly agreed that it is difficult to so online shopping.

4. I PREFER TRADITIONAL/CONVENTIONAL SHOPPING TO ONLINE SHOPPING

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

12

12.0

12.1

12.1

Disagree

21

21.0

21.2

33.3

Indifferent

32

32.0

32.3

65.7

Agree

25

25.0

25.3

90.9

Strongly Agree

9

9.0

9.1

100.0

Total

99

99.0

100.0

Missing

System

1

1.0

Total

100

100.0

INTERPRETATION:

From the above bar graph it is clear that most of the respondents are indifferent. They could neither say online shopping nor the traditional.32% was indifferent. 25% prefer traditional shopping over online shopping while 21% chose online shopping over the traditional shopping.

5. SHOPPING ONLINE IS RISKY

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Disagree

23

23.0

23.2

23.2

Indifferent

22

22.0

22.2

45.5

Agree

30

30.0

30.3

75.8

Strongly agree

24

24.0

24.2

100.0

Total

99

99.0

100.0

Missing

System

1

1.0

Total

100

100.0

INTERPRETATION:

From the above graph, it is clear that 30% agreed that online shopping is risky followed by strongly agree with 24%. There were also the respondents who disagree that online shopping is risky around 23% while 22% respondents were indifferent. From above it is clear that majority of the respondents think that online shopping is risky.

6. I BELIEVE ONLINE SHOPPING WILL EVENTUALLY SUPERSEDE TRADITIONAL SHOPPING

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

11

11.0

11.2

11.2

Disagree

19

19.0

19.4

30.6

Indifferent

26

26.0

26.5

57.1

Agree

30

30.0

30.6

87.8

Strongly Agree

12

12.0

12.2

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph it is clear that 30% respondents agreed that online shopping will supersede the traditional shopping followed by 26% who were indifferent. 19% respondents disagreed that online shopping will supersede the traditional shopping, while 12 % strongly agreed on this fact and 11% respondents strongly disagree on this fact that online shopping will supersede the traditional shopping.

7.I WILL PREFER ONLINE SHOPPING ONLY IF ONLINE PRICES ARE LOWER THAN ACTUAL PRICE

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

7

7.0

7.2

7.2

Disagree

19

19.0

19.6

26.8

Indifferent

15

15.0

15.5

42.3

Agree

37

37.0

38.1

80.4

Strongly Agree

19

19.0

19.6

100.0

Total

97

97.0

100.0

Missing

System

3

3.0

Total

100

100.0

INTERPRETATION:

From the above chart, it is clear that 37% agree that they do online shopping because of the price that is lower than the actual price. It is followed by strongly agreed group and disagree group with 19%. 19% don 't do online shopping because of its price. 15% of respondents are indifferent whereas 7% strongly disagree to the fact that they do online shopping because of its price which is actually lower that its market price.

8. A LONG TIME IS REQUIRED FOR THE DELIVERY OF PRODUCTS AND SERVICES ON THE INTERNET

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

3

3.0

3.1

3.1

Disagree

19

19.0

19.6

22.7

Indifferent

23

23.0

23.7

46.4

Agree

42

42.0

43.3

89.7

Strongly Agree

10

10.0

10.3

100.0

Total

97

97.0

100.0

Missing

System

3

3.0

Total

100

100.0

INTERPRETATION:

From above it is clear that 42% agreed that it takes long lime for the delivery of product. While 23% were indifferent. 19% respondents disagreed that it takes longer time for the product to be delivered while 10% strongly agreed that it takes longer time for the delivery. 3% strongly disagreed to the fact that products purchased through online shopping takes longer time to be delivered

9. SELECTION OF GOODS AVAILABLE ON THE INTERNET IS VERY BROAD,

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

3

3.0

3.1

3.1

Disagree

17

17.0

17.5

20.6

Indifferent

28

28.0

28.9

49.5

Agree

31

31.0

32.0

81.4

Strongly Agree

18

18.0

18.6

100.0

Total

97

97.0

100.0

Missing

System

3

3.0

Total

100

100.0

INTERPRETATION:

From the graph it is clear that 31% agreed that selection of good available on the internet is very broad, while 28% were indifferent. 18% strongly agreed that goods available on internet are very broad while 17 disagreed to this fact. And very few about 3% respondents strongly disagreed to the fact that products available in the internet in very broad.

10. THE DESCRIPTION OF PRODUCTS SHOWN ON THE WEB SITES ARE VERY ACCURATE

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

11

11.0

11.2

11.2

Disagree

25

25.0

25.5

36.7

Indifferent

27

27.0

27.6

64.3

Agree

28

28.0

28.6

92.9

Strongly Agree

7

7.0

7.1

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph it is clear that 28% respondents agreed that description of products give in the internet is very accurate while 27% were indifferent and 7% strongly agreed to this fact. Similarly 25% respondents disagreed that the product description show on internet are accurate while 11% respondents strongly disagreed.

11. ONLINE SHOPPING IS AS SECURE AS TRADITIONAL SHOPPING.

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

10

10.0

10.2

10.2

Disagree

42

42.0

42.9

53.1

Indifferent

17

17.0

17.3

70.4

Agree

22

22.0

22.4

92.9

Strongly Agree

7

7.0

7.1

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph, it is clear that most of the respondents that is 42% does not agree that online shopping is as much secure as traditional shopping and 10 % strongly disagreed that online shopping is as secure as traditional shopping. 17% were indifferent while 22% agreed that online shopping as secure as traditional shopping while very few respondents that is 7% strongly agreed to this fact.

12. WHILE SHOPPING ONLINE, I HESITATE TO GIVE MY CREDIT CARD NUMBER

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

5

5.0

5.1

5.1

Disagree

17

17.0

17.3

22.4

Indifferent

13

13.0

13.3

35.7

Agree

34

34.0

34.7

70.4

Strongly Agree

29

29.0

29.6

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph, 34% respondents agreed that they hesitate to give their credit card number, followed by 28% respondents who strongly agreed that they hesitate to give their credit card number. Around 17 % disagreed that they hesitate to give the credit card number while 5% respondents strongly disagreed. And 13% respondents have indifferent view about this fact.

13. INTERNET REDUCES THE MONETARY COSTS OF TRADITIONAL SHOPPING TO A GREAT EXTENT (PARKING FEES ETC.)

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

1

1.0

1.0

1.0

Disagree

4

4.0

4.1

5.1

Indifferent

14

14.0

14.3

19.4

Agree

49

49.0

50.0

69.4

Strongly Agree

30

30.0

30.6

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph it is clear that 49% respondent s agreed that online shopping will reduce the monetary cost of traditional shopping followed by 30% respondents who strongly agree that monetary cost incurred by traditional shopping will be greatly reduced by the online shopping. Similarly 14% respondents were indifferent while 4% disagree to this fact and 1% respondents strongly disagree to this fact.

14. THE FACT THAT ONLY THOSE WITH A CREDIT CARD OR BANK ACCOUNT CAN SHOP ON THE INTERNET IS A DRAWBACK

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

8

8.0

8.2

8.2

Disagree

18

18.0

18.4

26.5

Indifferent

17

17.0

17.3

43.9

Agree

30

30.0

30.6

74.5

Strongly Agree

25

25.0

25.5

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph, we can know that 30% respondents agreed to the fact that those with credit cards or bank account can only shop online is the drawback followed by 25% respondents who strongly agreed while in this case 17% were indifferent while18% disagreed to this fact while 8% respondents strongly disagreed to this fact that only those with a credit card or bank account can shop on the internet is the drawback.

15. I WOULD BE FRUSTRATED ABOUT WHAT TO DO IF I AM DISSATISFIED WITH A PURCHASE MADE FROM THE INTERNET.

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Strongly Disagree

7

7.0

7.1

7.1

Disagree

13

13.0

13.3

20.4

Indifferent

20

20.0

20.4

40.8

Agree

35

35.0

35.7

76.5

Strongly Agree

23

23.0

23.5

100.0

Total

98

98.0

100.0

Missing

System

2

2.0

Total

100

100.0

INTERPRETATION:

From the above graph, we can see that 35% respondents agreed to the fact that they will get frustrated about what to do if they are dissatisfied with the purchase made from the internet which is followed by 23% respondents who strongly agree to this fact. Similarly, 20% respondents in this case are indifferent while 13% respondents disagreed to this fact while 7% respondents strongly disagreed that they will be frustrated if they are not satisfied with the product they purchased from the internet.

Four hypotheses were created. These hypothesis are as follows:

Perception of online shoppers is independent of his Age and Gender.

Perception of online shoppers is independent of his Educational Qualifications and Gender.

Perception of online shoppers is independent of his Income and Gender.

H1. PERCEPTION OF ONLINE SHOPPERS IS INDEPENDENT OF HIS AGE AND GENDER.

GENDER * AGE CROSSTABULATION

Age

Total

15-20

21-25

26-30

31-35

36-40

Gender

male

Count

5a

26a

18a

2a

3a

54

Expected Count

5.4

27.5

14.6

3.2

3.2

54.0

% within Gender

9.3%

48.1%

33.3%

3.7%

5.6%

100.0%

% within age

50.0%

51.0%

66.7%

33.3%

50.0%

54.0%

% of Total

5.0%

26.0%

18.0%

2.0%

3.0%

54.0%

female

Count

5a

25a

9a

4a

3a

46

Expected Count

4.6

23.5

12.4

2.8

2.8

46.0

% within Gender

10.9%

54.3%

19.6%

8.7%

6.5%

100.0%

% within age

50.0%

49.0%

33.3%

66.7%

50.0%

46.0%

% of Total

5.0%

25.0%

9.0%

4.0%

3.0%

46.0%

Total

Count

10

51

27

6

6

100

Expected Count

10.0

51.0

27.0

6.0

6.0

100.0

% within Gender

10.0%

51.0%

27.0%

6.0%

6.0%

100.0%

% within age

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

% of Total

10.0%

51.0%

27.0%

6.0%

6.0%

100.0%

Each subscript letter denotes a subset of age categories whose column proportions do not differ significantly from each other at the .05 level.

To test whether the age & gender have significant impact on internet usage for online

shopping, chi-square test is conducted.

CHI-SQUARE TESTS

Value

df

Asymp. Sig. (2-sided)

Pearson Chi-Square

3.066a

4

.547

Likelihood Ratio

3.117

4

.538

Linear-by-Linear Association

.016

1

.898

N of Valid Cases

100

a. 5 cells (50.0%) have expected count less than 5. The minimum expected count is 2.76.

The analysis reveals that the calculated value is 3.066. As the P-Value (Asymp. Sig 2 sided) is found to be 0.547. Hence hypothesis is accepted at 5% level of significance, so the perception of on-line shopping is independent to Age & Gender.

H2: PERCEPTION OF ONLINE SHOPPERS IS INDEPENDENT OF HIS EDUCATIONAL QUALIFICATIONS AND GENDER

GENDER * EDUCATION CROSSTABULATION

Education

Total

Secondary School

10+2

Bachelors

Masters

. P.HD

Gender

male

Count

2a

1a

23a

26a

2a

54

Expected Count

2.2

1.6

21.6

27.5

1.1

54.0

% within Gender

3.7%

1.9%

42.6%

48.1%

3.7%

100.0%

% within Education

50.0%

33.3%

57.5%

51.0%

100.0%

54.0%

% of Total

2.0%

1.0%

23.0%

26.0%

2.0%

54.0%

female

Count

2a

2a

17a

25a

0a

46

Expected Count

1.8

1.4

18.4

23.5

.9

46.0

% within Gender

4.3%

4.3%

37.0%

54.3%

.0%

100.0%

% within Education

50.0%

66.7%

42.5%

49.0%

.0%

46.0%

% of Total

2.0%

2.0%

17.0%

25.0%

.0%

46.0%

Total

Count

4

3

40

51

2

100

Expected Count

4.0

3.0

40.0

51.0

2.0

100.0

% within Gender

4.0%

3.0%

40.0%

51.0%

2.0%

100.0%

% within Education

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

% of Total

4.0%

3.0%

40.0%

51.0%

2.0%

100.0%

Each subscript letter denotes a subset of Education categories whose column proportions do not differ significantly from each other at the .05 level.

To test whether the educational qualification & gender have significant impact on internet

usage for online shopping, chi-square test is conducted.

CHI-SQUARE TESTS

Value

Df

Asymp. Sig. (2-sided)

Pearson Chi-Square

2.630a

4

.622

Likelihood Ratio

3.395

4

.494

Linear-by-Linear Association

.105

1

.746

N of Valid Cases

100

a. 6 cells (60.0%) have expected count less than 5. The minimum expected count is .92.

The analysis reveals that the calculated value is 2.630 As the P-Value (Asymp. Sig 2 sided)

is found to be .622. Hence hypothesis is accepted at 5% level of significance, so the perception of on-line shopping is independent to Educational qualification & Gender

H3: PERCEPTION OF ONLINE SHOPPERS IS INDEPENDENT OF HIS INCOME AND GENDER

GENDER * MONTHLY INCOME (RS.) CROSSTABULATION

Monthly Income (Rs.)

Total

Below 10,000

10,000-20,000

20,001-29,999

30,000-40,000

Above 40,000

Gender

Male

Count

26a

4b

8a, b

3a, b

12a

53

Expected Count

21.1

11.4

7.0

3.8

9.7

53.0

% within Gender

49.1%

7.5%

15.1%

5.7%

22.6%

100.0%

% within Monthly Income (Rs.)

66.7%

19.0%

61.5%

42.9%

66.7%

54.1%

% of Total

26.5%

4.1%

8.2%

3.1%

12.2%

54.1%

Female

Count

13a

17b

5a, b

4a, b

6a

45

Expected Count

17.9

9.6

6.0

3.2

8.3

45.0

% within Gender

28.9%

37.8%

11.1%

8.9%

13.3%

100.0%

% within Monthly Income (Rs.)

33.3%

81.0%

38.5%

57.1%

33.3%

45.9%

% of Total

13.3%

17.3%

5.1%

4.1%

6.1%

45.9%

Total

Count

39

21

13

7

18

98

Expected Count

39.0

21.0

13.0

7.0

18.0

98.0

% within Gender

39.8%

21.4%

13.3%

7.1%

18.4%

100.0%

% within Monthly Income (Rs.)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

% of Total

39.8%

21.4%

13.3%

7.1%

18.4%

100.0%

Each subscript letter denotes a subset of Monthly Income (Rs.) categories whose column proportions do not differ significantly from each other at the .05 level.

To test whether the income & gender have significant impact on internet usage for online shopping, chi-square test is conducted. The analysis revealed that the calculated value is 14.661 as the p value is (assump. Sig2 sided) is found to be 0.005. Hence hypotheses H3 is rejected at 5% significance which indicates the perception of online shopping is not independent of income and gender.

CHI-SQUARE TESTS

Value

Df

Asymp. Sig. (2-sided)

Pearson Chi-Square

14.661a

4

.005

Likelihood Ratio

15.306

4

.004

Linear-by-Linear Association

.029

1

.864

N of Valid Cases

98

a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is 3.21.

FACTOR ANALYSIS

Through the questionnaire it was attempted to find that which of the following factors were most significant of influencing the perception of consumer towards online shopping.

ROTATED COMPONENT MATRIXA

Component

1

2

3

4

5

1. I think shopping on the internet saves time

.842

-.156

-.020

.015

.036

2. It is a great advantage to be able to shop at any time of the day on the internet.

.885

-.043

.074

.009

.032

3. It is more difficult to shop on the internet

-.316

.731

.078

-.022

-.062

4. I prefer traditional/conventional shopping to online shopping

-.063

.707

.062

-.006

.033

5. Shopping online is risky

-.112

.598

-.331

-.040

.029

6. I believe online shopping will eventually supersede traditional shopping

-.069

-.305

.105

.139

.767

7.I will prefer online shopping only if online prices are lower than actual price

-.043

.008

.043

.773

.270

8. A long time is required for the delivery of products and services on the internet

-.241

.147

.466

.338

-.197

9. Selection of goods available on the internet is very broad,

.325

.191

.031

.037

.601

10. The description of products shown on the web sites are very accurate

.095

-.060

.864

.036

.020

11. Online shopping is as secure as traditional shopping.

.303

-.061

.726

-.145

.333

12. While shopping online, I hesitate to give my credit card number

.093

.528

.013

.192

-.214

13. Internet reduces the monetary costs of traditional shopping to a great extent (parking fees etc.)

.530

-.090

.227

.208

.134

14. The fact that only those with a credit card or bank account can shop on the internet is a drawback

.317

-.031

.063

.666

-.210

15. I would be frustrated about what to do if I am dissatisfied with a purchase made from the internet.

.041

.490

-.143

.559

.227

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

It was found after using factor analysis only 5 components were more important and hence are being evaluated into important factors which are of maximum significance.

Component 1:

Time saving

Any time shopping.

Component 2:

Difficulty in shopping

Preference

Component 3:

Accuracy

Security

Component 4

Price

Drawbacks of online shopping

Component 5

Online shopping supersedes traditional shopping.

Broad selection of goods.

These are the five components that have the most significance in the perception on consumers towards online shopping. Component 1 consists of time saving and any time shopping which the advantage of the online shopping. Component 2 consist of difficulty that the consumers face and thir preferences between online shopping and the traditional shopping. Component 3 consists of accuracy of the information available in the website and the security. Similarly component 4 consists of price factor and the drawbacks of online shopping. And last but not the least the component 5 consists of online shopping supersedes traditional shopping and the broad selection of goods available.

CHAPTER V

CONCLUSION

CONCLUSION

The result of our study shows that the perception of online shoppers is independent of their age and gender, independent of their qualification & gender but not independent of income & gender. Further the result of factor analysis shows that Time saving, Any time shopping., Difficulty in shopping, Preference, Accuracy, security, price, online shopping supersedes traditional shopping and broad selection of goods were the factors with the most significance. Consumers perceive these factors while doing the online shopping. The analytical results of our study further indicate relationships between consumers ' perceptions of the factors that influence their intention to buy through online. More specifically, consumers ' perceptions of the delivery time, customer service, commitment and web security of online purchasing exhibit significant relationships with their online buying intention. The analytical results are generally consistent with previous findings of researchers. Marketers need to realize that the online marketing environment affects the way consumers view and develop relationships. In this context, to add value to the online shopping experience and to build relationships, web security is everything. Notably, examination of the relative strengths of the associations between the individual independent variables and online buying intention clearly indicate that Customer Service, price, delivery time, Web security and Commitment can explain much of the variation in online buying intention. Furthermore, it was also found that, for online buyers, the good perception on the customer service is considered as the best predictor when compared to other constructs. This will serve as a platform that will lead to the sustained confidence of the consumers in online purchasing. Price is also one of the factors that the customers look for while making the online purchase. From the survey it is clear that most of the customers do online shopping because the products that are available in the online shopping are very cheaper than that of the products that are available in the local retail shops.

People also do online shopping because they think they get more variety of products available then in the retail shop. Thus they are encouraged to do the online shopping rather than the direct shopping. The another important factor that the consumer perceive while doing online shopping is the accuracy of the information that they provide in the website. From the research it is clear that most of the respondents think that they get the accurate information about the products that they are willing to purchase. Guarantee and warrantees are also the important factors that the consumer perceive while doing online purchase. They believe that these guarantees and warrantees are also the factors that they do consider while doing online shopping.

CHAPTER VI

LIMITATIONS

6.1 LIMITATIONS

It is necessary to recognize the limitations of the current study.

Firstly, since the survey was conducted among a group of respondents through emails and social networking sites, the results should be interpreted with caution, particularly with respect to the generalization of research findings of Indian consumers as a whole.

The sample size itself is relatively small. To accurately evaluate Indian consumers ' perceptions of online shopping, a larger sample size is desirable. Future research needs to focus on a larger cross section of Internet users and more diversified random samples to verify the findings of the current study.

Moreover, to further studies clarity of the factors influence on online shopping, Technology Acceptance Model (TAM) or behavioral model could be used. Future inquiries could also examine the causal relationships between factors and how consumers ' perceive overall online shopping.

In addition, future research needs to examine business to business purchase in the context of cross-national and cross cultural differences.

REFERENCES

BOOKS

Schiffan G. Leon (2011) Consumer Behaviour , Tenth edition, Delhi, Pearson

Weitz. Levy (2007) Retailing Management , 5th edition, New Delhi , Tata Mcgraw-Hill

Hawaldar . k . Krishna and Cavale.M. Vasant (2010) Sales & Distribution Management , 9th Edition, New Delhi, Tata Mcgraw-Hill

WEBSITES

http://www.pwc.com.au/industry/retail-consumer/publications/digital-media-research/index.htm

http://www.moneylife.in/article/online-shopping-grows-18-in-india-in-last-12-months/22363.html

http://gadgets.ndtv.com/mobiles/news/165-million-mobile-internet-users-in-india-by-march-report-312466

http://www.abhinavjournal.com/images/Commerce_&_Management/Sep12/2.pdf

http://www.ssmrae.com/admin/images/eb1bb35ed46ca5c3a8638b56236c72b8.pdf

http://www.cirworld.com/index.php/ijmit/article/view/11-MIT-15/pdf

http://ssijmar.in/vol2no1/vol2no1.5.pdf

http://www.ibimapublishing.com/journals/CIBIMA/2010/854516/854516.pdf

http://www.scienceandnature.org/IJEMS-Vol3(1)-Jan2012/IJEMS_V3(1)7.pdf

http://www.ccsenet.org/journal/index.php/ijms/article/viewFile/18487/13453

http://lilt.ilstu.edu/mpdumlerdata/a4972_shop.asp

http://www.citehr.com/178667-plz-fillout-questionnaire-online-shopping.html

ONLINE SHOPPING QUESTIONNAIRE

DEMOGRAPHIC INFORMATION

1. Gender : Male Female

2. Age 15-20 21-25 , 25-30 ,

31-35 36-40

3. Education a. Secondary School ( )

b. 10+2 ( )

c. Bachelors ( )

d. Masters ( )

e. P.HD ( )

4. Occupation a. Student ( )

b. Government Employee ( )

c. Financial Worker ( )

d. Engineers ( )

e. Businessmen ( )

f. Housewife ( )

g. Others ( )

5. Monthly Income (Rs.)

a. Below 10,000 ( )

b. 10,000-20,000 ( )

c.20,001-29,999 ( )

d.30,000-40,000 ( )

e. Above 40,000 ( )

6. Interest a. Sports ( )

b. Reading ( )

c. Music ( )

d. Internet ( )

e. Watching TV ( )

f. Travel ( )

7. Living Area a. City ( )

b. Suburban ( )

c. Village ( )

PLEASE SELECT YOUR LEVEL OF AGREEMENT TO THE FOLLOWING QUESTIONS.

STRONGLY DISAGREE

DISAGREE

INDIFFERENT

AGREE

STRONGLY AGREE

1

2

3

4

5

I think shopping on the internet saves time

It is a great advantage to be able to shop at any time of the day on the internet.

It is more difficult to shop on the internet

I prefer traditional/conventional shopping to online shopping.

Shopping online is risky

I believe online shopping will eventually supersede traditional shopping

I will prefer online shopping only if online prices are lower than actual price

A long time is required for the delivery of products and services on the internet

Selection of goods available on the internet is very broad,

The description of products shown on the web sites are very accurate

The information given about the products and services on the internet is sufficient

Online shopping is as secure as traditional shopping.

While shopping online, I hesitate to give my credit card number

Internet reduces the monetary costs of traditional shopping to a great extent (parking fees etc.)

The fact that only those with a credit card or bank account can shop on the internet is a drawback

I would be frustrated about what to do if I am dissatisfied with a purchase made from the internet.

HOW IMPORTANT ARE THE FOLLOWING FACTORS IN YOUR DECISION TO PURCHASE GOODS FROM INTERNET?

VERY UNIMPORTANT

UNIMPORTANT

NEITHER IMPORTANT NOR UNIMPORTANT

IMPORTANT

VERY IMPORTANT

1

2

3

4

5

Delivery time

Reputation of the company

Guarantees and Warrantees

Privacy of the information

Good description of goods

Security

Prices

References: Weitz. Levy (2007) Retailing Management , 5th edition, New Delhi , Tata Mcgraw-Hill Hawaldar