Consumer behaviour in online shopping and comparison

i
VISION COLLEGE
OF
MANAGEMENT
MAHARAJPUR, KANPUR
SUBMITTED BY:- SUBMITTED TO:-
AMIT KUMAR SINGH MS. NIKITA CHAKRAVARTY
BBA 2ND
YEAR
( 4TH
SEM )

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A
PROJECT REPORT
On
CONSUMER BEHAVIOUR
IN
ONLINE SHOPPING AND COMPARISON
BETWEEN
TWO TOP ONLINE RETAIL
MARKETERS
By
Amit kumar singh
0204555
In partial fulfilment of the requirement for the award of the
Degree of
Bachelors Of Business Administration

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ACKNOWLEDGEMENT
I express my sincere gratitude and extend whole-hearted thanks to my respected guide, Ms. Nikita
Chakravarty who helped me in completion of this project. Without her guidance this project would
not have been possible. She provided me the necessary information about the report and I would
also like to thanks my friends who helped me in all possible ways.
Lastly, I would like to bestow my regards to the Vision College of Management, which provided me
this opportunity to undertake the Project study on Consumer Behaviour in Online Shopping And
Comparison Between Two Top online Retail Marketers.

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ABSTRACT
The Internet has developed into a new distribution channel and online transactions are rapidly increasing.
This has created a need to understand how the consumer perceives online purchases.
The purpose of this dissertation was to examine if there are any particular factors that influence the online
consumer. Primary data was collected through a survey that was conducted on students and Employees from
different part of India.
Price, Trust and Convenience were identified as important factors. Price was considered to be the most
important factor for a majority of the Customers.
Furthermore, three segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments I found a variation of the different factors importance and established implications for online stores.

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Table of Contents
1 Introduction........................................................................................................................................................1
1.1 Background...............................................................................................................................................1
1.2 Problem.....................................................................................................................................................1
1.3 ResearchPurpose.....................................................................................................................................2
1.4 ResearchQuestions..................................................................................................................................2
1.5 Limitations...............................................................................................................................................2
1.6 Summary..................................................................................................................................................2
2 Method................................................................................................................................................................3
2.1 Choice of Methodology..........................................................................................................................3
2.2 Research Approach.................................................................................................................................3
2.3 Research Philosophy...............................................................................................................................3
2.4 Research Strategy...................................................................................................................................3
2.4.1 Secondary Data.................................................................................................................................4
2.4.2 Primary Data.....................................................................................................................................4
2.5 Summary..................................................................................................................................................4
3 Theory.................................................................................................................................................................4
3.1 Introduction.............................................................................................................................................4
3.2 Customer Behaviour..............................................................................................................................5
3.2.1 Consumer Characteristics...............................................................................................................5
3.2.2 Online Consumer Characteristics.................................................................................................7
3.3 Specific Consumer Traits and Online................................................................................................9
3.4 Important Influencing Factors...........................................................................................................10
3.4.1 Identified Factors affecting Online Consumer Behaviour...................................................... 10
3.5 Summary................................................................................................................................................ 13
4 Empirical Research Method..........................................................................................................................16
4.1 Segments................................................................................................................................................16
4.2 Sample....................................................................................................................................................16
4.3 Non Probability, Convenience Sampling..........................................................................................16
4.4 TheQuestionnaire.................................................................................................................................16
4.5 Reliability................................................................................................................................................ 17
4.6 Validity.................................................................................................................................................... 17
4.7 Generalizability......................................................................................................................................17
5 Results............................................................................................................................................................... 19
5.1 Introduction...........................................................................................................................................19
5.2 Questionnaire–Collected data............................................................................................................19
5.2.1 Online Consumer Traits............................................................................................................... 19
5.2.2................................................................................................................................................................................. 28
5.2.3 Online Consumer Behaviour........................................................................................................31
5.2.4................................................................................................................................................................................ 32

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5.3 Identified Attributes............................................................................................................................ 33
5.3.1 Primary Factor...............................................................................................................................36
6 Analysis............................................................................................................................................................ 37
6.1 TheFactors............................................................................................................................................. 37
6.2 Two Step Cluster.................................................................................................................................37
6.2.1 Significance of the factors within the segments..................................................................... 38
6.3 Segments............................................................................................................................................... 38
6.3.1 DescriptionofSegmentOne:HighSpenders................................................................................. 39
6.3.2 Description of Segment Two: Price Easers.............................................................................. 40
6.3.3 Description of Segment Three: Bargain Seekers......................................................................41
6.4 Summary............................................................................................................................................... 42
7 Conclusions..................................................................................................................................................... 43
7.1 Future research....................................................................................................................................43
8 Comparison between Two Top online Retail Marketers……………………….....49
8.1 Introduction To Industries…………………………………..…………….. 50
8.1.1 Flipkart……………………………………………………………………..54
8.1.2 Amazon……………………………………………………………………..57
8.1.3 Recent development in the Online Retail Industries……….………. 59
8.1.4 Government Laws and Regulation on Online Retail ………………... 61
8.2 Literature Review …………………………………………………..…………63
8.3 Theories of Study…………………………………………………………….. 66
8.3.1 Consumer Behaviour……………………………………………………. 66
8.3.2 Consumer Decision……………………………………………………... 66
8.3.3 AIDA Principles in Online Marketing…………………………………. 68
8.3.4 Marketing Mix of Online Shopping……………………………………. 69
8.4 Research Methodology ………………………………………………………70
8.4.1 Research Objective ………………………………………………………..70
8.4.2 Data Collection Method………………………………………………….. 70
8.4.3 Sample Design…………………………………………………………….. 71
8.5 Data Analysis …………………………………………………………………..72
8.6 Findings………………………………………….…………………………………84
8.7 Suggestion & Conclusion ……………………………………………………….85
8.7.1 Suggestions…………………………………………………………….. 85
8.7.2 Conclusions…………………………………………………………….. 86
9 References…………………………………………………………………………….. 87

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9.1 Bibliography……………………………………………………………………… 88
9.2 Appendix…………………………………………………………………………..89
10 Summary………………………………………………………………………………..93

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INTRODUCTION
The introduction chapter will be explaining the purpose of my research. There search questions, limitations
and a background will be presented.
BACKGROUND
The invention of the Internet has created paradigm shift of the traditional way people shop. A consumer is no
longer bound to opening times or specific locations; he can become active at virtually anytime and place and
purchase products or services. The Internet is a relatively new medium for communication and information
exchange that has become present in our everyday life. The number of Internet users is constantly increasing
which also signifies that online purchasing is increasing(Joineset,Scherer&Scheufele,2003).The rapid increase
is explained by the growth in the use of broadband technology combined with a change in consumer
behaviour(Oppenheim&Ward,2006).
The Internet is considered a mass medium that provides the consumer with purchase characteristics as no
other medium. Certain characteristics are making it more convenient for the consumer, compared to the
traditional way of shopping, such as the ability to at anytime view and purchase products, visualise their
needs with products, and discuss products with other consumers (Joinetal.2003).Oppenheim and Ward
(2006) explain that the current primary reason people shop over the Internet is the convenience. They also
recognize that the previous primary reason for shopping online was price, which has now changed to
convenience.
Online shopping is the process consumers go through when they decide to shop on the Internet. The Internet
has developed into a “new” distribution channel (Hollensen,2004) and the evolution of this channel ,e-
commerce ,has been identified by Smith and Rupp(2003) to be the most significant contribution of the
information revolution. Using the Internet to shop online has become one of the primary reasons to use the
Internet, combined with searching for products and finding information about them (Joinesetal.,2003).Smith
and Rupp(2003) also state that the consumers have never had access to so many suppliers and
product/service opinions. Therefore, the Internet has developed to a highly competitive market, where the
competition over the consumer is fierce. In order to have an impact on and retain consumers, in a
competitive market, Constantinides (2004) stated that the first step is to identify certain influencing aspects
when purchasing online, these can be regarded as factors.
PROBLEM
At any given time there are millions of people online and each of them is a potential customer for a company
providing online sales. Due to the rapid development of the technologies surrounding the Internet, accompany
that is interested in selling products from its website will constantly have to search for an edge in the fierce
competition. Since there are so many potential consumers, it is of the out most importance to be able to
understand what the consumer wants and needs.
The importance of analysing and identifying factors that influence the consumer when he or she decides to
purchase on the Internet is vital. Since the Internet is a new medium for there have been new demands set by
the consumer. That is why it is crucial for the online retailers to know what influences the online consumer.
Analysing consumer behaviour is not a new phenomenon. The renowned marketing expert Philip Kotler has
published several works on the topic of consumer behaviour theories. These theories have been used for many
years not only to understand the consumer, but also create a marketing strategy that will attract the
consumer efficiently. Hence, understanding and identifying the consumer is closely related to the directions a
company will take with their marketing strategy. These theories can also be applied to identify the online
consumer and to create certain consumer segments. However, some distinctions must still be made when
considering traditional consumer behaviour and online consumer behaviour.
Since online retailing is a new retailing medium and online consumer behaviour is diverse from traditional
consumer behaviour, one must identify what influences the online consumer. Analysing the process that the

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online consumer goes through when deciding and making a purchase over the Internet, shows some factors
that consumers consider. These factors need to be identified and taken into account by online retailers in
order to satisfy consumer demands and compete in the online market. To further understand how these
factors influence different types of consumers, I must identify segments which will enable us to make
comparisons.
RESEARCH PURPOSE
The purpose of this research is primarily to identify and get insight in to what main factors the online
consumer takes into consideration when purchasing online. Further, I will investigate if any segments can be
established by identifying the consumers and how these segments relate to the identified factors. The findings
of this research will be outlined a simplications for online retailers in order to enhance their consumer
knowledge and increase their online marketing strategy effectiveness.
RESEARCH QUESTIONS
 What main factors affect the online consumer when considering and making a purchase over
the Internet?
 How do these factors influence the consumer when purchasing online?
 What kind of segments can be found within the identified consumers when purchasing
online?
 What is the connection with the identified factors and consumer segment groups?
LIMITATIONS
There are a number of factors influencing the online consumer. However, this research will try to identify the
main factors influencing the online consumer and will, therefore, try to limit these to a few in order to be
able to investigate the effect on the online consumer. Within the field of consumer behaviour there are many
theories and models that identify the consumer. This research will limit itself to identifying the consumer
through his/her consumer characteristics and the consumer buying process. Consumer behaviour differs
depending on what product or service is bought. Hence, different factors are of difpferent importance to
consumers depending on the product or service. Therefore this research will limit itself to since this is the
product that is most widely bought on the Internet. This seemed to be the most appropriate choice
considering the limitations in both time and resources.
SUMMARY
Since the rapid development of the Internet online shopping has become a new and widely used medium for
retailing. In order to understand the consumer the retailers need to know what influences the consumer. That
is what I want to accomplish with my research.

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METHOD
CHOICE OF METHODOLOGY
I will attempt to find the main factors that influence the online consumer when making an online purchase.
In order to broaden my own understanding of the subject I conducted my initial research in literature on
consumer behaviour and e-commerce. I reviewed studies that had similar aims and paid particular attention
to their results.
For my own research I decided that the most appropriate approach would be a questionnaire that would be
filled out by students and employees.
This study started out as an exploratory study but developed into an explanatory study since I started out
with first gaining knowledge about consumer behaviour to further being able to gain knowledge about online
consumer behaviour. Having this knowledge I continue to identify specific factors that are of importance
when the online consumer is making online purchases. This information is then used in order to find
relationships and correlations between these variables.
RESEARCH APPROACH
There are two most commonly used research approaches, the inductive and the deductive method. The
inductive research method attempts to setup a theory by using collected data, while the deductive research
approach attempts to find the theory first and then test it to the observed data. I chose a deductive research
approach for my study as I would move from the more general to the specific. I will present the theoretical
findings on consumer behaviour in the next chapter, after which I will present my questionnaire in chapter
four where I present my collected primary data.
RESEARCH PHILOSOPHY
When starting a study there must be an understanding of in which way the study will be approached. The
established research philosophy explains this approach when collecting and analysing data. The research
process has three main focuses: positivism, realism, and interpretive (Saunders,Lewis&Thornhill,2007).
Positivisms the approach where the researcher does not want to be affected by nor affect the subject of the
research. The researcher believes that the collected and analysed data can be simplified to allow like
generalization using existing theories to develop hypotheses from these. In the realistic approach, there is a
reality existing independent of the mind. Like the positivistic approach it assumes a scientific approach to the
development of knowledge. The interpretive way of approaching the subject of the research does not agree
with the fact that law-like generalizations can be made. Instead it stress that the human mind and the social
world are too complex in order to be generalized (Saundersetal.,2007)
My research will be conducted with a positivistic approach, since I will try to affect and interfere with the
collected data as little as possible
.
RESEARCH STRATEGY
When collecting data to approach the purpose of a research there are two ways in which the data can be
collected. In order to acquire a general knowledge about the topic, secondary data is primarily used and is
one of the ways by which data can be collected. These Conway to collect data is the primary data collection.
Usually when a study is conducted, secondary data is not sufficient enough and needs to be completed with
primary data which is collected by the researcher (Christensen,2001).

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SECONDARY DATA
Secondary data can be classified into three different subgroups: documentary, multiple source, and
survey. Documentary second and data comes in both written and non-written form. It is the data
that can be collected from sources such as journals, databases, transcripts etc. This form of data is
dependent on the access the researcher has to it. Survey based secondary data is the data that is
collected through the survey and is available as data table forms. Multiple source secondary data is
data that has been compiled into documentary or survey form; the main characteristics of this type
of data is that it has been changed into a different form before there searcher is assessing the data
(Saundersetal.,2007).
I have mainly used documentary secondary data combined with multiple source data. Documentary
secondary data has been the data collected through different types of research conducted within the
topic, articles, and that are written on consumer behaviour and e-commerce. This type of data has
been the fundamental source for gaining knowledge within the topic in order for us to be able
approach the research problem. The secondary data that I used for our research his data that has
also lead to the conclusion of which factors that will be examined. The multiple source data that I
have used has been in order to choose which product I would use for our research in order to be
able to find the product that is most widely bought over the Internet.
PRIMARY DATA
Primary data for our research was collected through questionnaires. When collecting primary data
one can choose to do interviews, observations, experiments, and questionnaires. Due to the purpose
of our research, only the questionnaire method would be able to approach the topic and be able to
collect the answers in a satisfactory manner. In our research the primary data is mainly concerned
with analysing the respondent in order to later on classify the respondent. Further on, the primary
data will be used to analyse the factors and how these are related to the respondent. The primary
data is conducted in a manner to be able to approach our research and solve our research questions.
The questionnaire will be explained in more detail in chapter5, theEmpiricalmethodology.
SUMMARY
In order to find the factors that influence the online consumer, as I have set out to do, this study will go from
an exploratory to explanatory study. This also explains the deductive approach that I chose, as I first turn to
the literature in order to gain knowledge. I do not want to affect the respondents’ answers and I, therefore,
perform a positivistic approach to the study. By using secondary data I attempt to find the influencing
consumer factors and then continue with primary data in order investigate the influence of the factors
THEORY
INTRODUCTION
This dissertation aims at finding factors that affect the online consumer’s buying behaviour. By reading
literature concerning consumer characteristics and online consumer characteristics I believe to find
implications for certain factors that are of importance for the online consumer.
The Internet is a worldwide accessible series of computer networks that transmit data by packet switching
using the standard I Internet Protocol. It is a "network of networks “that consists of millions of smaller
domestic, academic, business, and government networks, which together carry various information and
services, such a select, file transfer, the interlinked WebPages and other documents of the World Wide Web.
Originally the Internet was mainly used by academics, research scientists and students; however that scenario
has changed as commercial organizations have moved to incorporate the World Wide Web into their
promotional campaigns, and by offering the facility of online purchasing (Jobber&Fahy,2003). The Internet has
evolved into a worldwide accessible marketplace for information exchange and e-commerce. The strategic

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importance to be available for consumers on the World Wide Web, with information and services has become
particularly relevant to firms.
According to Vesterby and Chabert (2001) the Internet can make it easier for companies to have information
about their products or services available to their customers or potential customers. A company can satisfy
the consumers’ individual need of information at a low cost in comparison to sending out product brochures
for example. As the user can choose information from websites, which implies that the information provider
can achieve better understanding of the user’s needs and wants by collecting data. On the other hand, the
Internet is a place with hardly any structure or rules: therefore, large efforts are needed in order to show the
consumer where a specific site is located, and what services are available on that site. Vesterby and Chabert
(2001) claim that companies with no physical presence must market themselves considerably, both online and
offline, for the consumer to remember their name.
Whether it is the traditional market or the online market, the marketer must understand the consumer and
how he makes his decisions and purchasing choices(Hollensen,2004), because the consumer is under a
constant flow of stimuli from the marketers advertisements. The marketer has the possibility to decide and to
control the output that will be forwarded to the consumers, but when the advertisement reaches the
consumer that control ends. The consumer then interprets the information that has been sent out in his own
way based on specific factors for every consumer. Therefore marketers have developed different theories that
can explain why consumers interpret information in a certain way, and there by understand certain
behaviours (Kotler&Armstrong,2007). Several articles have set out to identify the characteristics of the online
consumer. Allred, Smith and Swinyard (2006) identify the online consumer to have the following
characteristics: younger, wealthier, better educated, having a higher “computer literacy” and are bigger retail
spenders.
Donuthouand Garicia (1999) identify the online consumeras: older, make more money, convenience seeker,
innovative, impulsive, variety seeker, less risk aware, less brand and price conscious, and with a more positive
attitude towards advertising and direct marketing. Some of these characteristics are similar, while others are
the opposite.
Trying to identify the online consumer is difficult since the rapid development of e-commerce has also led to
an increase of both technologies and different types of consumers. It is also known that the type of product
has a significant influence on the online consumer behaviour which makes it more difficult to identify
consumer characteristics (Christopher&Huarng,2003). There are still some characteristics that can be
identified to specify the online consumer and the following text will try to do so.
CUSTOMER BEHAVIOUR
Donal Rogan (2007) explains the relationship between consumer behaviour and marketing strategy. He states
that “strategy is about increasing the probability and frequency of buyer behaviour. Requirements for
succeeding in doing this are to know the customer and understand the consumer’s needs and wants.”
Chisnall (1995) points out that human needs and motives are inextricably linked and that the relationship
between them is so very close that it becomes difficult to identify the precise difference which may
characterize them. People may buy new coats because it protects them against the weather, but the irreal
underlying dominant need may be to follow the latest fashion trend. Buyers’ characteristics are important
theories from Kotler and Armstrong (2007) and it explains the way that the consumer interprets and receives
stimuli from advertisements. The decisions of consumers are influenced by a number of individual
characteristics that are linked to the consumer’s specific needs (Kotler & Armstrong, 2007).
CONSUMER CHARACTERISTICS
Consumer characteristics are explained by: Cultural characteristics, Social characteristics, Personal
characteristics, and Psychological Characteristics. These characteristics are identified, by the marketer, in
order to identify the consumer and to be able to decide on the strategy to what kind of consumer to target.
Hence, these characteristics are used in order to segment the market and target specific consumer groups.

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CULTURAL CHARACTERISTICS
The Cultural Characteristics are recognized as the main influencer of consumer behaviour. These
characteristics are developed by three features under pinning consumer behaviour: Culture, Subculture, and
SocialClass.
Culture is mentioned as the most basic cause of a person’s wants and needs. Kotler and Armstrong (2007)
argues that human behaviour is mostly learned and that I are exposed to different sets of values and beliefs
from a young age, and that these values influence our behaviour and decision making. Hence, these
characteristics are interesting for marketers and important indicators of certain consumer behaviour and
taste.
Subcultures are small group formations with a certain number of people that share values and beliefs such as
nationalities, religions or geographic regions. An identified subculture can serve as an important and effective
market segment which can be targeted.
Social class is recognized by Kotler and Armstrong (2007) as a class structure, consisting of a combination of
factors which gather different types of members. Some identified factors are income, age, education, and
wealth
SOCIAL CHARACTERISTICS
THE SOCIAL CHARACTERISTICS ARE DIVIDED INTO THREE DIFFERENT CATEGORIES, NAMELY REFERENCE
GROUPS, FAMILY AND SOCIAL ROLE AND STATUS.
REFERENCE GROUPS–ACCORDING TO KOTLER AND ARMSTRONG (2007) THE EFFECTS OF THE REFERENCE
GROUPS IS MAINLY BASED ON THE BELIEF THAT A PERSON’S BEHAVIOUR IS INFLUENCED BY MANY SMALL
GROUPS. WHEN A GROUP HAS A DIRECT INFLUENCE IT IS CALLED A MEMBERSHIP GROUP, FOR EXAMPLE:
FAMILY, NEIGHBOURS AND CO-WORKERS. REFERENCE GROUPS ARE THE GROUPS TO WHICH THE PERSON
OFTEN WANTS TO BE LONG TO AND TO BE APART OF BUT IS NOT. THESE GROUPS INDIRECTLY AND
DIRECTLY FORM A PERSON’S BEHAVIOUR AND ATTITUDES. THERE ARE THREE DIFFERENT WAYS BY
WHICH THESE GROUPS INFLUENCE A PERSON’S BEHAVIOUR; THEY MAY EXPOSE A PERSON TO NEW
BEHAVIOURS AND LIFESTYLES, INFLUENCE A PERSON’S ATTITUDES AND SELF-CONCEPTS AND ALSO
CREATE A PRESSURE OF CONFIRMATION BY REFERENCE GROUPS. ANOTHER INFLUENCE OF IMPORTANCE
IS THE OPINION LEADER . AN OPINION LEADER IS A PERSON THAT INFLUENCES OTHERS TO FOLLOW HIS
BELIEVES AND ATTITUDES TOWARDS CERTAIN ISSUES, PRODUCTS OR AREAS (KOTLER&
ARMSTRONG,2007).
FAMILY–FAMILY MEMBERS HAVE A GREAT INFLUENCE ON THE BUYING BEHAVIOUR. THE INVOLVEMENT
AND INFLUENCE BY DIFFERENT FAMILY MEMBERS VARIES, BOTH TO WHICH DEGREE BUT ALSO IN WHAT
WAY. THEREFORE, IT IS IMPORTANT FOR MARKETERS TO UNDERSTAND WHICH ROLE IS PLAYED BY
WHOM IN THE FAMILY AND DIRECT THE ADVERTISEMENT TOWARDS THE MAIN INFLUENCING PART OF
THE FAMILY.
ROLES AND STATUS–EACH PERSON BELONGS TO DIFFERENT TYPES OF GROUPS AND ALSO PLAYS
DIFFERENT ROLES WHILST HAVING DIFFERENT POSITIONS IN THE VARIOUS GROUPS. ROLES ARE
IDENTIFIED BY KOTLER AND ARMSTRONG (2007) AS WHAT ACTIVITIES PEOPLE ARE EXPECTED TO
PERFORM FROM OTHER MEMBERS OF THE GROUP.
PERSONAL CHARACTERISTICS
THESE PERSONAL CHARACTERISTICS ARE CATEGORIZED INTO: AGE AND LIFE-CYCLESTAGE, OCCUPATION,
ECONOMIC SITUATION, LIFESTYLE, PERSONALITY AND SELF-CONCEPT.
THE AGE AND LIFE-CYCLE STAGE THESE STAGES EXPLAIN DIFFERENT PERIODS IN LIFE THAT THE
CONSUMER EXPERIENCES AS HE GOES THROUGH LIFE. THESE DIFFERENT STAGES ALSO REPRESENT
DIFFERENT CHANGES THAT THE CONSUMER MAY EXPERIENCE WHEN REACHING A NEW STAGE.
ACCORDING TO KOTLER AND ARMSTRONG (2007) MARKETERS, THEREFORE, DEFINE THEIR TARGET
MARKETS INTERMS OF THE DIFFERENT STAGES IN ORDER TO DEVELOP APPROPRIATE MARKETING PLANS.
OCCUPATION–THE OCCUPATION TENDS TO HAVE AN EFFECT ON THE PRODUCTS AND SERVICES
BOUGHT BY THE CONSUMERS. THIS LEADS TO THE POSSIBILITY OF DEVELOPING DIFFERENT TYPES OF

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PRODUCTS OR SERVICES THAT SUITS INTERESTS IDENTIFIED TO BE ABOVE AVERAGE WITHIN AN
OCCUPATION.
THE ECONOMIC SITUATION–WEALTH WILL AFFECT A CONSUMER’S PRODUCT CHOICE. A CONSUMER MAY
BE PRICE- SENSITIVE OR NOT DEPENDING ON THE LEVEL OF INCOME, LEVEL OF SAVINGS, LEVEL OF
INTEREST RATES, AND ALSO THE PRODUCT OR SERVICE ITSELF.
LIFESTYLE–THIS IS IDENTIFIED TO BE A PERSON’S WAY OF LIVING WHICH IS RECOGNIZED BY THE
ACTIVITIES, INTEREST, OR OPINION SHE OR SHE HAS AND IT ALSO EXPLAINS THE WAY A CONSUMER
INTERACTS IN THE WORLD.
PERSONALITY–THIS IS MAINLY EXPLAINED BY THE TERMS SELF-CONFIDENCE, DOMINANCE, SOCIABILITY,
AUTONOMY, DEFENSIVENESS, ADAPTABILITY AND AGGRESSIVENESS. THESE PSYCHOLOGICAL FACTORS
ARE A RESULT OF ONE’S ENVIRONMENT. PERSONALITY CAN BE DEFINED AS A DYNAMIC AND ORGANIZED
SET OF CHARACTERISTICS POSSESSED BY A PERSON THAT UNIQUELY INFLUENCES HIS OR HER
MOTIVATIONS, AND BEHAVIOURS INVARIOUS SITUATIONS (RYCKMAN,2004).
SELF-CONCEPT OR SELF IMAGE–IS THE CONCEPTUAL UNDERSTANDING THAT PEOPLE’S POSSESSIONS
REFLECT THEIR PERSONALITIES. THIS CONCEPT DOES BRING SOME CONFLICTS IN CASE PEOPLE MAY
HAVE AN IMAGE THAT SATISFIES WHO THEY ARE BUT DOES NOT AGREE WITH WHO THEY WANT TO BE
(THE IDEAL SELF-CONCEPT),THE QUESTION THEN ARISES WHICH ONE I WOULD WANT TO SATISFY.
PSYCHOLOGICAL CHARACTERISTICS
THE PSYCHOLOGICAL CHARACTERISTICS ARE DIVIDED INTO THE FOLLOWING CONCEPTS: MOTIVATION,
PERCEPTION, LEARNING, AND BELIEFS AND ATTITUDES.
MOTIVATION–MOTIVATION REFERS TO A PERSON NEEDS THAT MUST BE SATISFIED. THESE NEEDS ARE
OF DIFFERENT KIND; SOME ARE BIOLOGICAL, SUCH AS HUNGER, THIRST AND DISCOMFORT ,AND SOME
ARE PSYCHOLOGICAL SUCH AS THE NEED FOR RECOGNITION, ESTEEM AND BELONGING. NEEDS ARE NOT
SATISFIED UNTIL THEY REACH A CERTAIN POINT OF INTENSITY AND BECOME A MOTIVE FOR THE
CONSUMER TO SATISFY THEM. KOTLER AND ARMSTRONG (2007) DISCUSS SEVERAL MOTIVATION
THEORIES, AMONG THEM ARE FREUD’S AND MASLOW’S THEORIES OF MOTIVATION. FREUD ARGUED
THAT A PERSON DOES NOT REALLY AND FULLY UNDERSTAND HIS OR HER MOTIVATIONS. MASLOW ON
THE OTHER HAND WANTED TO UNDERSTAND WHY SOME PEOPLE SET OUT TO SATISFY SOME NEEDS
BEFORE OTHERS.
He then came to the conclusion that human needs are arranged in a hierarchy from the most pressing to the
least pressing, as Kotler and Armstrong (2007) explains it. These needs are listed as psychological needs,
safety needs, socialneeds, esteem needs, and self-actualization needs. When one need has been satisfied, a
person moves on to satisfy the next.
Perception-This characteristicis based on the understanding of how differently I perceive the same situation or
the same stimuli. Kotler and Armstrong (2007) explains perception as the process by which people select,
organize, and interpret information. There are three different processes that decide how I interpret certain
information. These are Selective Attention, Selective Distortion, and Selective Retention.
Learning–Learning is, according to Kotler and Armstrong (2007), an act that changes people’s behaviour
because of their experience. It occurs through drives: strong internal wants that call for action, stimuli: object
that drives for certain action, cues: small stimuli that determinate when, where and how the person will
respond and reinforcement: when the response and stimuli towards an object is experienced more than once.
Beliefs and Attitudes–These are acquired by people through learning and experiencing. They influence the
buying behaviour by making up brands and product images in the consumer’s heads. A belief is explained by
Kotler and Armstrong (2007) as a descriptive thought about something and is based on real knowledge,
opinions or faith. Beliefs can also be emotionally charged. Attitudes are described as a person’s evaluations,
feelings, and tendencies towards something, but also determinations of people such as like and dislikes.
ONLINE CONSUMER CHARACTERISTICS

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More specific identifications of the online consumer need to be made in order to understand the
online purchase behaviour. The identified characteristics are some key characteristics in regard to the
online consumer. These key characteristics were made in order to identify online consumers and to
be able to segment them.
CULTURAL ONLINE CHARACTERISTICS
Smith and Rupp (2003) identify that the difference in social class creates a difference in purchasing
Online Behaviour. Consumers from a higher social class generally purchase more and have a higher
intention to purchase online because there is a higher probability that they possess a computer and
also have greater access to the Internet. Consumers from lower social classes would not have the
same properties. The authors also point out that consumers with lower social class, and there by not
having the same properties, would not have the needed computer literacy to be able to leverage a
computer.
SOCIAL ONLINE CHARACTERISTICS
The social influence on the online consumer comes from new Reference Groups compared to the
tradition always. For the online consumer new Reference Groups were identified as virtual
communities, consisting of discussion groups on a website. The consumer can read about other
people’s experiences and opinions which have shown to have the effect of Reference Groups
(Christopher &Huarng, 2003). Other Reference Groups, which are identified by Christopher and
Huarng (2003), are links to product related websites, which encourages product selection and
contact information.
PERSONAL ONLINE CHARACTERISTICS
Monsuwé, Dellaert and Ruyter (2004) explored the personal online consumer characteristics and
concluded that income has a vital role for online purchasing behaviour. The authors discussed
Lohseetal .(2000) who pointed out that consumers with higher house hold income would have a
more positive attitude towards online shopping. This conclusion was explained by the fact that house
holds with higher income would have a positive correlation with the possession of a computer,
Internet access, and higher education.
Smith and Rupp (2003) also identified the age factor as a determinant for online purchase
intentions. They argued that older people who had no frequent interactions with the Internet and the
computer would not use the Internet as a medium for purchases, while young adults would. This
was concluded by that the young adults used the Internet and computers more frequently. Younger
people were also identified to have more technical knowledge. Monsuwéetal. (2004) also supported
this judgement by concluding that younger adults usually have greater interest in using new
technologies to browse for information and evaluate alternatives.
PSYCHOLOGICAL ONLINE CHARACTERISTICS
Smith and Rupp (2003) identified the psychological characteristics of consumer behaviour as
questions the online consumer would ask himself before making a purchase online.
Motivation–The consumers is reasoning for incentives to engage in a particular behaviour. He may
ask himself questions like: should I look around for better price? If online shopping saves me time,
should I shop online more often? How much do I really need this product?
Perception- The consumer is interpreting acquired information by classing it. Questions such as the
following may come about: I feel that this site seems pretty secure. It seems that this site has a good
product but how can I be sure?
Personality- The consumer is adapting to influences of his cognitions. He may ask himself, what
types of Web sites are best suited for his personal buying preferences.

9
Attitude- The consumer is working out what his likes and dislikes are in respect to a particular
situation. He may ask himself: I am pretty unsure about extra costs, should I really be buying items
from the Internet? If I do not buy the item online, how else can I get it?
Emotions-The consumer is without conscious effort detecting how he is being affected by his
cognitive choice. He may ask himself: The last time I ordered from the Internet I had a really bad
experience .Should I try buying online again? What is the future of buying online? If Websites get
better should I invest more time in buying online?
SPECIFIC CONSUMER TRAITS AND ONLINE
Behaviour The online consumer’s characteristics that I have identified to be the most important ones to have
an effect on the online consumer, will be referred to as specific Consumer Traits and how the consumer uses
the Internet will be referred to as Online Behaviour.
The online consumer characteristics such as personal, social, and psychological characteristics need to be
identified in order to understand what is important for the online consumer. These characteristics reveal the
consumers’ lifestyle and identify who the consumer is and what attitudes he has towards online shopping.
Therefore, I will be using the following characteristics to segment the online consumer, by analysing:
 The consumer’s demographics, as Bergmanetal.(2005).
 Life patterns concerning Online Behaviour, such as how much the consumer uses the Internet,
Webographics, as Bergmanetal.(2005).
 For what purposes, Internet Usage, also as Bergmanetal.(2005).
 How much the online consumer shops online, Online Shopping Patterns, can be used in order to find
out what impact certain factors have on different type of consumers (Bergmanetal.2004).
 Prior experiences have also been identified to be relevant for what Beliefs and Attitudes the
consumer has towards online shopping and are therefore also important for there
search(Monsuwéetal.2004).
 Social influences have an effect on the consumer in the early decision making stage and these were
referred to as Reference Groups (Christopher&Huarng2003).
These are the consumer characteristics that are relevant for this research and need to be identified in order
to find out who the online consumer is and what affects him when shopping online. These I will be referred
to as Consumer Traits and Online Behaviour.
To summarise the prior text and to answer the question what identifies an Online Consumer, one can draw
the conclusion that for this research the important consumer characteristics that need to be identified are:
 ConsumerTraits
 Demographics
 AttitudeandBeliefs
 ImpactofReferenceGroups
 OnlineBehaviour
 Webographics
 OnlineShoppingPatterns
 InternetUsage

10
FIGURE0-1THEONLINECONSUMERSEGMENTSUBDIVISIONS
IMPORTANT INFLUENCING FACTORS
When processing the previous literature in order to find what Specific Consumer Traits and Online Behaviour
that needs to be identified, I gained knowledge of which factors that were highly important for the online
consumer.
Brengman, Geuenes, Weijters, Smith and Swinyard (2005) segment online consumers through first identifying
the Internet usage lifestyle of every consumer; they believe that the Internet experience is highly relevant for
the identification of the online consumer. Lifestyle is, as presented above, a describing group of consumers’
personal characteristics and is expressed as a person’s demographics. These living patterns show what
opinions and interests a consumer has for certain products, for what reasons and which interest they have in
the Internet, the Internet usage. The study came to the conclusion that four segment groups could be
conceptualized and these would categorise the online consumers according to their shopping behaviour. The
different attributes, that explain these segments, show that the factors Price, Trust and Convenience are
highly relevant influencers on the online consumer shopping behaviour (Brengmanetal.,2005).
Monsuwéetal. (2004) created a framework through their study that would help the understanding of
consumer’s attitudes towards online shopping . Attitudes and beliefs are separated from consumer’s
psychological characteristics and mainly determined by learning and prior experiences. Further, Bellenger
pointsout that the ability to conduct price comparisons has been cited as a major reason why consumers use
the Internet (Wallace, 1995). Price sensitives hoppers are essentially concerned with buying products at the
lowest price or getting the best value for the money they spend (Bellenger,1980).
There have been many attempts to identify and segment the online consumer through various studies. By
reading different studies I have identified certain factors that were constantly present in the literature. There
are many factors that have an impact on the online purchase behaviour, but I have identified Price, Trust and
Convenience to be very important and will put our attention to these three factors.
IDENTIFIED FACTORS AFFECTING ONLINE CONSUMER BEHAVIOUR
Online Consumer
Segments
Online Consumer
Traits
Demographics
Gender, Age,
Income
Attitude and Belifs
Previous and
Future Experience
Impact of reference
groups
Family, Friends and
Online forum
Online Behaviour
Webographics Time spent online
Online Shopping
Patterns
Expenditure
Internet Usage
Fun, Work, Emails,
Information,
Shopping

11
Price which is a part of the marketing mix is a factor used in order to stimulate the consumer and is also a
communicator, bargain tool, and a competitive weapon. The consumer can use price as a mean of comparing
products, judge relative value for money, and judge product quality (Brassington&Pettitt,2000).
The factor Trust is considered to be a concern on the emotional basis in the minds of the consumers. The
consumers have a focus on their safety needs and want to satisfy them before making a
purchase(Brassington&Pettitt,2000).
The factor Convenience is considered to be a benefit in the eyes of the consumer and a quality derived from
purchasing over the Internet. It is therefore considered to be amotivator and a benefit to
consumers.(Constantinides,2004)
We believe that these factors have a significant influence on the consumer when purchasing online. To further
analyse the factors, I study underlying attributes that represent what way the factors affect the consumers.
THE FACTOR PRICE
The Internet has become a global market place on which consumers can gather and compare information
such as product information and prices. The technologies and innovative business ideas of the Internet allow
sellers to discriminate between buyers and buyers to discriminate between vendors. Historically, however,
prices have been set by negotiations after having examined the product (Kotler & Keller, 2006). The Internet
facilitates the scenario that comparisons can be achieved with ease, overlooking several digital attributes
(which can be communicated through the web) and possibilities with several different vendors
simultaneously. On the Internet it is after all the price comparison prospect that interests price sensitive
consumers, whilst another category of consumers focuses on finding unique products with specialized
features that might be difficult to find offline and who, therefore, perhaps even consider the price as
secondary.
However, when online, only digital attributes can be evaluated by the consumer, while offline non-digital
attributes (for which physical inspection of the product is necessary) can be tested (Lal & Sarvary,1999). This
could even influence impulsive shoppers to become more cautious about the product as it can only be
inspected digitally. Furthermore, when buying online, additional costs such as freight charges, customs or
prolonged delivery times can influence the online consumer’s decision to reconsider the transaction even
though the price is low. Table3.1 clarifies the fact that the factor price has two attributes, saving money and
price comparison.
TABLE0-1THEFACTORPRICEANDITSATTRIBUTES
Factor Attributes
Price
SavingMoney
ComparingPrice
THE FACTOR TRUST
Monsuwéetal.(2004) conclude that because the Internet is a relatively new way of shopping, it is challenging
for the consumers and therefore perceived by the consumer as risky. They further identify the sales person to
be a silent source of trust for the consumer, and that the consumer is dependent on the sales persons’
expertise. But since the salesperson has been removed in online shopping, the authors argue that the basis of
consumer trust has disappeared. They further explain that the consumer is not able to check the quality of an
item, nor is he able to monitor the safety of the security when revealing personal data. The authors, therefore,
conclude that if a high level of security and privacy is communicated to the consumer the result would have a
positive effect on consumer trust and the intention to buy online.
According to Luhmann (1979) who has a sociological point of view on the theory of trust, there are three
modes of maintaining expectations about the future, familiarity, confidence and trust.To experience trust,
familiarity and confidence must have been established. However, trust is only necessary when there is a high
perceive drisk, such as during a purchase transaction or a similar action.

12
The consumer’s previous experience and trust in the computerized medium is likely to affect his amount of
trust in online shopping (Lee & Turban,2001). According to Lee and Moray (as cited in Lee & Turban, 2001)
human trust in computerised systems depends on three factors:
 The perceived technical competence of the system-The systems apparent ability to perform assigned
tasks.
 The perceived performance level of the system-How fast and reliable it appears to bea ble to finish
the tasks.
 The human operators understand of the underlying characteristics and processes governing the
system’s behaviour.
Previous knowledge also affects trust. Luhmann (1993) states that ," Practical experience tends to teach us the
opposite: the more I know, the better I know what I do not know, and the more elaborate our risk awareness
becomes” (p.28).
Turbanetal.(2001) constructed a model that highlights what trust is constituted from when purchasing on the
Internet. According to figure3.2 which is a scaled version based on “A Trust Model for Consumer Internet
Shopping ”by Lee, Matthew K.O, and Efraim Turban (2001), trust is dependent on the six variables
FIGURE0-2TRUSTINELECTRONICCOMMERCE
Acompanymustshowtheconsumerthatitiscompetentinmanaginginformationandsupportingtheconsumerafterapur
chaseisdone.Ifthatcanbeachieved,theconsumerismorelikelyto"engageintrust-
relatedInternetbehaviourslikepurchasing,cooperating,andsharinginformation"(McKnight&Chervany,2001-
2002).Table3.2showsthefactorTrustanditsattributes.
TABLE0-2THEFACTORTRUSTANDITSATTRIBUTES
Factor Attributes
Trust
Perceptionofsafety
TrustintheInternetRetailer
TrustintheInternetasretailshopping
Ec Trust
Trust in Internet
Seller
Competency
Benevolence
Trust in internet as
Shopping channel
Reliability
Understandability
Security and
Payment

13
THE FACTOR CONVENIENCE
Convenience is anything that is intended to save time and frustration according to the Swedish National
Encyclopaedia. Further definitions of the concept of convenience are:
 The quality of being suitable to ones comfort, purpose or needs
 Personal comfort or advantage
 Something that increases comfort or saves work at a suitable or agreeable time(Lexico Publishing
Group[LLC],2007)
Online shopping as a new medium for retailing creates a number of different advantages. One of these is that
it is considered to be more convenient to shop online compared to the traditional way of shopping. The
convenience attributes that online shopping provides are:
 Less effort:
 Being able to shop at home
 Time saving
 Being able to shop at anytime of the day
Azjen (as cited in Kim&Park, 1991) claims that online shopping provides convenience for consumers such as
time savings and search convenience if compared to the traditional way of shopping.
Kim and Park(1991) also argue that if online shopping is to be perceived as convenient for the consumer, the
consumer must perceive a certain amount of easines s with accessing the Internet and also with carrying out
the behaviour with shopping online.The less complexity the consumer perceives with accessing the Internet
the more attention the consumer has to enter the Internet and search for information.
The characteristics of convenience with online shopping can be summarized as follows:
Consumers can shop from their homes meaning they do not have to take certain aspects, needed when
shopping in the traditional way, into consideration. Online shopping is, therefore, considered to require less
effort. It is also considered to be time saving, the consumer can search for products and prices easy through
the developed search engines. Through tracking devices a consumer can at anytime check where their package
is. Another time aspect of online shopping is that it allows
The consumer to shop at any time of the day, the consumer does not need to consider if the stores are open
or not.Table3.3 shows the factor Convenience and its attributes.
TABLE0-3THEFACTORCONVENIENCEWITHATTRIBUTES
Factor Attributes
Convenience
SavingTime
LessEffort
Shoppingatanytime
SUMMARY
By first examining consumer behaviour theories I have investigated what identifies the consumer and the
processes that the consumer goes through before making a purchase. This has been applied to gain

14
understanding of the online consumer buying behaviour and has then been used in order to find which
characteristics that are relevant to identify and segment the online consumer.These have been identified as
Consumer Traits and Online Behaviour and are listed below along with the respective subsegments:
ConsumerTraits:
 Demographics
 AttitudeandBeliefs
 ImpactofReferenceGroups
OnlineBehaviour:
 Webographics
 OnlineShoppingPatterns
 InternetUsage
Furthermore,I have pointed out certain factors that I believe are important for the online consumer when
shopping online through the literature overview. These factors have been identified as Price, Trust and
Convenience through the literature. In order to comprehend how the identified factors influence the online
consumer I must first identify the online consumer. This identification needs to be done mainly through the
relevant Consumer Traits and online consumer behaviour that have been identified earlier.
Online
Consumer
Segments
Consumer
Traits
Online
Behaviour
Webographics
Online Shopping
Patterns
Internet Usage
Demographics
Attitudeand Belief
Impact of
Reference
Price Convenience Trust
Implications for Online Retail Store
FIGURE 0-3 THE INFLUENCING FACTOR'S EFFECT ON ONLINE CONSUMER
SEGMENTS

15
We can then understand the relevance and impact of the factors for the all the respondents. By gaining
understanding and being able to segment online consumers I can see the relevance and impact of certain
factors for specific groups. Figure3.3 explains that Online Consumer Segments will be developed through how
the respondents answered questions that involved Consumer Traits and Online Behaviour. The defined
segments will be compared according to how the respondents in each segment answers the questions
involving Price, Trust and Convenience. Finally, implications for online stores will be drawn from these
results.

16
EMPIRICAL RESEARCH METHOD
Since our research is of deductive character our primary intention was to collect secondary data and analyse
it. By doing so I found the factors Price, Trust and Convenience. I then collected primary data through a
survey. The main purpose of the survey was to collect data about Online Consumer Behaviour and the
significance of the established factors, Price, Trust, and Convenience.
In order to be able to find and establish Online Consumer Segments, Consumer Traits and Online Behaviour
had to be identified. The segments were used in order to further identify what impact the factors Price, Trust,
and Convenience have on Online Consumer Segments.
SEGMENTS
A segment is a subgroup of people that share the one or more characteristics and these segments have
similarities such as that they share behavioural features or have similar needs. These similarities make a
specific segment homogenous in their needs and attitudes. Different types of variables can be used in order to
segment a market and one of the requirements was that it needed to be measurable. I will be using the
identified Consumer Traits and Online Behaviour variables to segment the online consumers.
SAMPLE
The factors that I intended to examine can be applied to and investigate data population that uses the
Internet and buys online. Since there are time and resource restraints, a specific population had to be
identified in order to generalise and create relevant segments. I decided that the sample size should contain
over 100respondents and I collected answers from 103respondents.
NON PROBABILITY, CONVENIENCE SAMPLING
The population for this research are Students and employees, India. The Sample was chosen on a convenience
basis. Convenience sampling involves using samples that are the easiest to obtain and is continued until the
sampling size that need is reached. The bias with the convenience sampling is that it is hard to generalize to
the wanted population (Saundersetal.,2007).
We will attempt to collect as many respondents as possible but since I will be studying students I assume that
there will be little variation in the population making it more approved to generalize the response rates. The
sampling method for students took also place on a convenience basis since the students that agree to answer
the questionnaire are those that were chosen.
THEQUESTIONNAIRE
In order to create the questionnaire I started out by deciding on the main variables that needed to be
investigated. These were: Demographics, Webographics, OnlineShopping Patterns,and Attitude towards Online
Shopping, Social Characteristics, Reference Groups, and the identified factors Price, Trust, and Convenience.
For the questionnaire, which was self- administrated, I used the Delivery and collection questionnaire method.
This method was mainly used because of the limitations in time and available resources. Different types of
questions were set in order to be able to collect the information that was needed concerning the different
topics. The examined variables were of different types. They were opinions, behaviour, and attributes.
Opinions are used to understand how a respondent feels about something ,behaviour attributes are used to
record what the respondent does, and attributes shows what the respondent possesses (Saundersetal.,2007).In

17
order to collect the correct data, I needed to ask questions with suited alternatives that we read jested to the
type of the variable that needed to be examined. In our questionnaire I were only using closed questions that
were of the list, category, ranking, quantity, and ratingtype.
All rating questions used a seven-point Likers style rating scale. In order to determine the underlying
attitudes for Price, Trust, and Convenience I used the bipolar semantic differential rating, on a seven
pointscale.The values of the semantic differential rating scale are described by opposite adjectives designed to
anchor the respondent’s attitudes towards trust. These mantic differential rating scale was later translated
from1-7 to set a new value range of-3to +3for our analysis. The obtained values were then being multiplied to
obtain one final overall value, ranging from-9to+9,for each question by using these mantic differential rating
system.
The first questions (1.1to1.5) of the research were primarily used to explain the Demographics of the
respondent and were designed as background questions. These questions acted as category with one quantity
question. The quantity question (1.2) allowed the respondent to list their age. The category questions
(1.1,1.3,and1.4) were used to categorize the respondents after their: gender, semester, and income respectively.
The category questions gave us the ability to form different segments of the respondents.
RELIABILITY
Reliability is the extent to which data collection techniques yield consistent findings, similar observations
would be made by other researchers and if there is transparency in how sense was made from raw data
(Saundersetal.,2007). Reliability implies the ability of a survey to resist random errors. According to Robson
(ascitedinSaundersetal.,2007)there may be four threat store liability:
 Subject/ Participant error: This can occur when the respondent is on a “high”, for example prior to
the weekend. The opinions transmitted during this period could be overly positive, and vice versa if
it is a Monday morning, when the respondent is likely to be ona“low”.
 Subject/Participantbias:This occurs for example when the respondent is answering as they think their
boss would want them to answer, instead of answering with their own mindset, fearing any
consequences that might fall upon them if they fail to answer correctly according to their boss.
 Observererror:This is when the observer is not collecting data as intended, and thus errors in the
final research are likely.
 Observerbias: When the observer is interpreting an answer with the help of his own beliefs and
values, the registered answer will be biased, and thus not represent the true answer given from the
respondent.
These threats can however be reduced. A highly structured questionnaire will make the observer error almost
non-existent. Guaranteeing anonymity will make a respondent more inclined to answer truthfully, since he will
not be held accountable for any answer, thus minimizing the bias. Finally, the subject and participant terror
can be reduced simply by choosing a neutral day to conduct the survey, such as a Tuesday for example.
VALIDITY
Validity is the extent to which the data collection method or methods accurately measure what they were
intended to measure (Saundersetal.,2007). When a quantitative research results in a measured value that
corresponds with the real value, then there search is considered to be completely valid. In that case one has
measured what was intended with perfect precision(Christensenetal.,2001).The biggest task is to create clear
and non-ambiguous questions that can be interpreted indisputable and provide us with the right information
for our purpose. However, there is no guarantee that the respondents interpret the questions definitely, yet I
have to assume they will and do consider the benefit of doubt.
GENERALIZABILITY

18
This term refers to how generalizable the results of our search are, and whether the findings can be
applicable too there research settings (Saundersetal.,2007). Due to our decision to focus on students, and
since this group only represents a small part of the Indian population, the results would only be
generalizable,if generalizable at all, to students.

19
RESULTS
INTRODUCTION
The questionnaire was designed to collect primary data in order to find first-hand information on how the
respondents value the importance of price, trust, and convenience when making purchases over the Internet.
The questionnaire was designed to, first, collect data that would be used to find segments among the
respondents, and second, to collect data about the factors price, trust, and convenience. The questions in the
questionnaire were based on the findings from the literature. Questions which were designed to collect data
to find respondent segments were derived from the findings within consumer behaviour. Questions about the
factors price, trust, and convenience were derived from the literature found about the factors when
purchasing online. I Emailed questioner link to all the respondents through the mail and collected emails in
order to make sure not to collect data from the same respondent more than once. I decided that the sample
size should be over200respondents and I collected 226 respondents. In order to analyse the collected data I
used the software program SPSS. The following will present and discuss the results from the questionnaire.
QUESTIONNAIRE–COLLECTED DATA
ONLINE CONSUMER TRAITS
DEMOGRAPHICS
Questions1.1,1.2,1.3,and1.4
These questions were used inorder to establish the consumer demographics. They were used to find out the
respondents gender, age, semester at the University, and income.
GENDER
Gender was included in the survey in order to find out if there is a difference between men and
women concerning the beliefs towards the factors. The following table will show the distribution of
the male and female respondents that were included in the survey.
TABLE0-1Q1.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“GENDER”
Sex Frequency Percent CumulativePercent
Male 58 56.31% 56.31%
Female 44 42.72% 99.03%
Others 1 0.97% 100.00%
Total 103 100.00%
The distribution of male and female respondents shows a majority of male respondents (57%),
compared to the female respondents (42%).

20
AGE
Age was included to find out if there is a significant relationship to what impact the factors price,
trust, and convenience have on different age groups. Age is a demographic value that can also be
used in order to further explain and elaborate on some of the other questions that are used to find
segments among the respondents. The respondents were asked to write how old they were, instead
of setting up different age groups to choose form. In this way I were able to get the exact ageand
there by setup different age groups according to the distribution.
AREA
The above diagram is showing the percentage of demography of respondents and what is the
percentage of respondents who lives in rural or urban region, the below diagram is showing that
77% of the respondents are from urban areas and 23% of the respondents are from urban area.
Male
57%
Female
42%
Others
1%
Gender
Male
Female
Others
0 20 40 60 80
<= 20
21 – 25
25 - 33
34 - 41
42 >=
Age
Age
TABLE0-2Q1.2DISTRIBUTIONACCORDINGTOTHEVARIABLE“AGE”
Years Frequency Percent CumulativePercent
<=20 17 16.50% 16.50%
21–25 77 74.76% 91.26%
25-33 5 4.85% 96.12%
34-41 1 0.97% 97.09%
42>= 3 2.91% 100.00%
Total 103 100.00%

21
TABLE0-3Q1.3DISTRIBUTIONACCORDINGTOTHEVARIABLE“AREA”
Area Frequency Percent CumulativePercent
Rural 25 24.27% 24.27%
Urban 78 75.73% 100.00%
Total 103 100.00%
OCCUPATION
This graph help us to know the occupation of the respondents, this is to know that which segment
of people are buying more products on the internet whether they are the segment of students or
government employees or professional, the above graph shows that the segment of the students
i.e.90% of the students are using internet and use to buy online products.
TABLE0-4Q1.4DISTRIBUTIONACCORDINGTOTHEVARIABLE“OCCUPATION”
DISPOSABLEINCOME
Rural
23%
Urban
77%
Geographical Distribution
Rural
Urban
Student
69%
Professional
24%
Govt.
Employee
3%
Self
Employed
3%
Other
1%
Occupution
Student
Professional
Govt. Employee
Self Employed
Other
Student 70 67.96% 67.96%
Professional 24 23.30% 91.26%
Govt.Employee 5 4.85% 96.12%
SelfEmployed 3 2.91% 99.03%
Other 1 0.97% 100.00%
Total 103 100.00%

22
Income was used in the questionnaire mainly to find if the respondents that have a higher income
spend more money online or not. This variable is also used in order to find the correlation to the
factors price, trust, and convenience. The distribution of the variable income is highly connected with
the fact that the respondents are students and, therefore, have a lower income.
This explains the fact that the majority of respondents have the lowest income (52.48%).
TABLE0-5Q1.5DISTRIBUTIONACCORDINGTOTHEVARIABLE“DISPOSABLEINCOME”
INTERNET CONNECTION
This graph shows us the percentage of respondents who have their own internet connections, its
shows that 87.13% of respondents have their own internet connections and 35% people don’t have
their internet connection.
InternetConnection Frequency Percent CumulativePercent
Yes 88 85.44% 85.44%
No 15 14.56% 100.00%
Total 103 100.00%
0 20 40 60
< 5000
5001 – 6999
7000 – 8999
9000 – 10999
11000 - 12999
>= 13000
Disposable Income
Disposable Income
<5000 53 51.46% 51.46%
5001–6999 15 14.56% 66.02%
7000–8999 4 3.88% 69.90%
9000–10999 5 4.85% 74.76%
11000-12999 5 4.85% 79.61%
>=13000 21 20.39% 100.00%
Total 103 100.00%

23
ONLINE SHOPPING
This graph shows us the percentage of respondents who have done Online Shopping, its shows that
68.93% of respondents have done Online Shopping and 31.7%people haven’t done do Online
Shopping
OnlineShopping Frequency Percent CumulativePercent
Yes 71 68.93% 68.93%
No 32 31.07% 100.00%
Total 103 100.00%
MOTIVATION
Thisgraphshowsuswhatmotivatesthepeopletobuyinternet,asfromaboveresultIfoundoutthatnotraveltosho
pisthemainthingwhichmotivatesthepeopletobuyproductsonline.
TABLE0-6Q2.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“MOTIVATION”
Yes
87%
No
13%
Internet Connection
Yes
No
Yes
69%
No
31%
Online Shopping
Yes
No
Motivation Frequency Percent CumulativePercent
EasyPayment 21 29.58% 29.58%
NoHiddencost 6 8.45% 38.03%
Widerangeofproducts 22 30.99% 69.01%
Notraveltoshop 22 30.99% 100.00%

24
COMPETITIVE PRICES
This diagram shows us that whether online marketers are giving competitive price or not and result
which is came is that most of the people thought that online marketers are providing competitive
prices than physical stores. And results 74.65% of people say that it provides competitive prices and
only 14.08% people says no.
TABLE0-7Q2.2DISTRIBUTIONACCORDINGTOTHEVARIABLE“COMPETITIVEPRICES”
CompetitivePrices Frequency Percent CumulativePercent
Yes 53 74.65% 74.65%
No 10 14.08% 88.73%
Can’tsay 8 11.27% 100.00%
Total 71 100.00%
PRODUCTS BUY ONLINE
Easy Payment
30%
No Hidden
cost
7%
Wide range
of products
32%
No travel to
shop
31%
Motivation
Easy Payment
No Hidden cost
Wide range of products
No travel to shop
Yes
76%
No
14%
Can’t say
10%
Competitive Prices
Yes
No
Can’t say
Total 71 100.00%

25
The above graphs gives result that most of the time people use to buy 36% but the margin with
other things is very less as musicCd’ save percentage of 15 and Personal and Healthcare15% S
FREQUENTLYVISITEDONLINESTORE’S
Thisgraphshowsthat57%peopleusetovisitFlipkartforonlineshopping,31%usetogoatEbay,17%peopledoatA
mazonandforotherpeopleusetovisitatBestBuyandothers.
FACTORSHELPTODECIDETOSHOPONLINE
Thisdiagramshowsuswhataffectspeopletobuyproductsoninternetanditshowsthat21%peoplecametoknowa
boutshoppingsitesthroughsearchengines.Andtheyattractedtowardsitandstartgettingproductsfromthere.
And20%peopledecisionisaffectedbyspecialoffersbytheoffersandthediscountsgivenbythesites.
36
15
21
34
15
0 10 20 30 40
Books
Music CD's
Clothing
Mobiles and Acessories
Personal and Healthcare
Products buy Online
Products buy Online
31
17
57
6
13
7
0 10 20 30 40 50 60
e-bay
Amazon
Flipkart
letsbuy
Myntra
Other
Online stores
Online stores

26
WAYOFPAYMENT
Thisdiagramshowsthatmostlypeopleusescreditcardtopaytheirpayments42%peopleusetopaybycredit/debi
tcardand14%throughCashondeliveryand11%throughInternetBankingand3frompaypal.
FREQUENCYOFONLINESHOPPING
21
14
20
12
4
0 5 10 15 20 25
Search Engine
Personal
Recommendation
Special Offers On Sites
Online Advertising
Tv advertising
Factors help to decide which
site to shop online
Factors help to decide
which site to shop
online
42
11
3
1
14
0 10 20 30 40 50
Debit/ credit card
Internet banking
Paypal
GoogleWallet
Cash-on-Delivery
Way of payment
Way of payment

27
ATTITUDES AND BELIEFS
Questions4.1and4.2
PRIOR EXPERIENCE
This question was used in order to see what attitude the respondent had about shopping online. The
measured attitude was mainly derived through questions about the respondent’s prior experiences.
This usually also affects the attitude towards performing an action, in this case the action was to
shop online. The question was, therefore designed to let the respondent rate their prior experience
for shopping online.
TABLE0-8Q4.1DISTRIBUTIONACCORDINGTOTHEVARIABLE”PREVIOUSEXPERIENCEWITHONLINEPURCHASES”
once a month
72%
once a
week
8%
Twice a month
16%
Twice
a
week
4%
Frequency of Online shopping
once a month
once a week
Twice a month
Twice a week
Experience Frequency Percent CumulativePercent
1(VeryBad) 0 0.00% 0.00%
2 1 1.41% 1.41%
3 24 33.80% 35.21%
4 33 46.48% 81.69%
5(VeryGood) 13 18.31% 100.00%
Total 71 100.00%

28
Overall the respondents showed a good to very good prior experience with purchasing online. The
number of respondents with a very good attitude towards online shopping is high and the
distributed attitude declines as less respondents think of it as a bad experience. Rating number four
on the scale is considered as neither a good nor bad experience. The majority of respondents,overall
35.87%, do consider their prior experience with online purchasing as neither good nor bad. This
question is closely related to the following question which investigates the respondents’ future
expectations of online purchasing.
FUTURE EXPECTATIONS OF ONLINE PURCHASES
This question is a part of analysing the respondents’ attitude towards online purchases. Future
expectations are highly dependent on respondents’ prior experiences of online purchases; this will be
further discussed in the analysis of the results.
As with prior experiences the respondents have a highly positive attitude towards future online
purchases. The majority (41.38%), of the respondents have rated future expectations with online
purchases to be positive. Not considering the neutral respondents; an overall 80.9% of the
respondents had positive expectations.
TABLE0-9Q4.1DISTRIBUTIONACCORDINGTOTHEVARIABLE”FUTUREEXPERIENCEWITHONLINEPURCHASES”
0
1
24
33
13
0
10
20
30
40
1 (Very Bad)
2
34
5(Very Good)
Prior Experience
Prior Experience
Experience Frequency Percent CumulativePercent
1(VeryBad) 0 0.00% 0.00%
2 1 1.41% 1.41%
3 11 15.49% 16.90%
4 24 33.80% 50.70%
5(VeryGood) 35 49.30% 100.00%
Total 71 100.00%

29
IMPACT OF REFERENCE GROUPS
Questions5.1,5.2,and5.3
The impact of Reference Groups These questions were designed to find out which of the three
Reference Groups, family, friends, and online forum, that have an impact on the respondent. Families
as Reference Groups have not shown to have an impact on online purchases among students. A
majority of 32.39% do not consider any of their families’ opinions and experiences at all when
purchasing online.
TABLE0-10Q5.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“HOWMUCHDOESFAMILYAFFECTONLINEPURCHASE”
0
1
11
24
35
0
10
20
30
40
1 (Very Bad)
2
34
5(Very
Good)
Future Expectations
Future Expectations
11
15
23
13
9
0
5
10
15
20
25
1 (Not at all)
2
34
5(Very Much)
Family affect
Family affect
Familyaffect Frequency Percent CumulativePercent
1(Notatall) 11 15.49% 15.49%
2 15 21.13% 36.62%
3 23 32.39% 69.01%
4 13 18.31% 87.32%
5(VeryMuch) 9 12.68% 100.00%
Total 71 100.00%

30
Friends as a Reference Groups have shown to have a bigger impact as a Reference Groups when
respondents consider their purchases online. This can be explained by the fact that friends often are
fellow students that attend the same program and have relevant information that is of use to the
respondent. The distribution of the respondents shows that the majority of the respondents, 33.8%,
take the opinions and experiences of their friends into consideration.
TABLE0-11Q5.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“HOWMUCHDOESFRIENDSAFFECTONLINEPURCHASE”
Online forums do not have any impact on the respondents. A majority of 40.85% of the respondents do not
consider the opinions and experiences discussed on online forums at all.
TABLE0-12Q5.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“HOWMUCHDOESONLINEFORUMSAFFECTONLINEPURC
HASE”
8
10
13
24
16
0
5
10
15
20
25
1 (Not at all)
2
34
5(Very Much)
Friends affect
Friends affect
Friendsaffect Frequency Percent CumulativePercent
1(Notatall) 8 11.27% 11.27%
2 10 14.08% 25.35%
3 13 18.31% 43.66%
4 24 33.80% 77.46%
5(VeryMuch) 16 22.54% 100.00%
Total 71 100.00%
OnlineForumsaffect Frequency Percent CumulativePercent
1(Notatall) 7 9.86% 9.86%
2 9 12.68% 22.54%
3 29 40.85% 63.38%
4 18 25.35% 88.73%
5(VeryMuch) 8 11.27% 100.00%
Total 71 100.01%

31
ONLINE CONSUMER BEHAVIOUR
WEBOGRAPHICS
Question2.1
Time spent online
Thisquestionisusedinordertoinvestigatehowmuchtimetherespondentspendsonline.Therespondentthatsp
endsmoretimeonlinehasahigherexperiencewiththeInternetwhichaccordingtotheliteratureisareasontobuy
moreonline.Hence,thisquestioniscloselyrelatedtotherespondentsshoppingpatterns.Thiswillbefurtherdisc
ussedintheanalysisoftheresults.
TABLE0-13Q2.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“TIMESPENTONLINE”
7
9
29
18
8
0
5
10
15
20
25
30
1 (Not at all)
2
34
5(Very
Much)
Online Forums affect
Online Forums affect
Timespentonline Frequency Percent CumulativePercent
<30 8 11.27% 11.27%
1-2 20 28.17% 39.44%
2-5 19 26.76% 66.20%
>5 24 33.80% 100.00%
Total 71 100.00%

32
Thedistributionshowsthatthemajorityoftherespondentsspendsomewherebetween30minto2hoursonlinee
achday.Thetwosecondmajorgroupsarerespondentsthatspend5hoursandrespondentsthatspendgreatertha
n2-
4hoursonlineeachday,34%respectively27%.Theseresultswillbeusedinordertofindwhatdiffersbetweenthes
erespondentsandwhichofthefactorsprice,trustandconveniencehasthelargestamountofimpact.
TABLE0-14Q2.1DISTRIBUTIONACCORDINGTOTHEVARIABLE“TIMESPENTSHOPPINGONLINE”
INTERNETUSAGE
ThisquestionwasincludedtoinvestigateforwhatreasontherespondentsmainlyusedtheInternet.Therespond
entsweregiven5alternativesfromwhichtheyhadtorank3bytheprimary,secondary,andtertiarychoiceofusage
.
TABLE0-15Q2.2DISTRIBUTIONACCORDINGTOTHEVARIABLES“PRIMARYUSE,SECONDARYUSE,ANDTERTIARYUSE”
Accordingtothetable5.15therespondentsastheprimarymostpopularuselistedthealternativesWork(29.58%
),Information(29.58%)andEmail(22.54%),accordingly.Thesecondaryoverallmostpopularchoiceswerethea
lternativesE-
mail(40.84.54%),Work(22.54%)andInformation(18.30%).ThetertiarymostpopularchoiceswereShopping
(28.17%),Information(22.54%)andFun(19.71%).AccordingtothedistributionthealternativesFun,E-
mailandInformationwerethemostpopularalternatives,withtheexceptionofFunastertiaryusewherethatalter
nativewasreplacedwithwork.
< 30
11%
1 - 2 hours
28%
2 - 5 hours
27%
> 5
34%
Time spent
< 30
1 - 2 hours
2 - 5 hours
> 5
Percentageoftimespentonshopping Frequency Percent CumulativePercent
<20% 40 56.34% 56.34%
20–40% 23 32.39% 88.73%
40–60% 2 2.82% 91.55%
>60% 6 8.45% 100.00%
Total 71 100.00%
InternetUsage PrimaryUsage SecondaryUsage TertioryUsage
Fun 11(15.49%) 9(12.67%) 14(19.71%)
Work 21(29.58%) 16(22.54%) 9(12.67%)
Information 21(29.58%) 13(18.30%) 16(22.54%)
E-Mail 16(22.54%) 29(40.84%) 12(16.90%)
Shopping 2(2.82%) 4(5.63%) 20(28.17%)
Total 71 71 71

33
IDENTIFIED ATTRIBUTES
PRICE
Questions6.2and6.3
Saving money when purchasing online compared to purchasing at store this is the first attribute of the factor
price and involves the respondents’ attitude towards saving money when purchasing online. The respondent
was asked two questions in order for us to establish their attitude. The first question examined if the
respondent agrees with the fact that purchasing online saves money and these cond question examines the
importance of this statement. The results from these two questions gave us the following distribution of what
the respondents’ attitude towards this statementis.
TABLE0-16Q6.2DISTRIBUTIONACCORDINGTOTHEATTRIBUTE“SAVINGMONEYWHENPURCHASINGONLINE”
The table 5.17 illustrates whether the respondents feel that they are saving money when they purchase online
compared to a regular store.40.7% of the respondents felt that they saved money and that it is important to
save money when they purchase online. These condlargest category is a neutralone, with 23.5% where the
respondent felt that they neither save money nor do not save money . The reason for the values being so high
can be that even though the Comparing prices, through different price comparison websites, before
purchasing online.
6
2
2022
21
0
5
10
15
20
25
1 (Not at all)
2
34
5(Always)
Saving Money
Saving Money
SavingMoney Frequency Percent CumulativePercent
1(Notatall) 6 8.45% 8.45%
2 2 2.82% 11.27%
3 20 28.17% 39.44%
4 22 30.99% 70.42%
5(Always) 21 29.58% 100.00%
Total 71 100.01%
ComparingPrice Frequency Percent CumulativePercent
1(Negative) 1 1.41% 1.41%
2 4 5.63% 7.04%
3 18 25.35% 32.39%
4 24 33.80% 66.20%
5(Positive) 24 33.80% 100.00%
Total 71 100.00%

34
Table 5.18 shows how the respondents use price comparison sites such as Ebayor Myntra. Almost everyone
uses this type of comparison prior to purchasing a, more or less often, and a large group (31.9%) of the
respondents does so very often. This displays an overall positive attitude towards comparing price over the
Internet even though the largest group of 24 respondents (33.80%)consider comparing price over the
Internet as positive. This can be concluded by the fact that the respondents might not compare prices but
think that it is important. This then translates into neither a positive nor a negative attitude towards
comparing prices when purchasing online. The respondent might also compare prices but does not find it
important.
TRUST
Questions7.1,7.2
It is secure to shopping online
This question investigates what the respondents overall attitude is towards the first attribute I identified that
constitutes the factor trust. This attribute involves the respondent over all attitudes towards security when
shopping online. The respondent was first asked to answer whether they felt secure when shopping online
and then how important it is for them to feel safe when Shopping online.
TABLE0-17Q7.1DISTRIBUTIONACCORDINGTOTHEATTRIBUTE“SECURITYWHENSHOPPINGONLINE”
The values in table5.18 explain whether the respondents feel that it is safe to purchase online, and if it is
important to feel secure when purchasing online. The largest category (32.39%) feels secure and also thinks it
is important to feel neither secure nor not secure when shopping online. These condlargest (26.76%), with
just one respondent less, is the category slightly more positive than “neither”. The large number could come
from respondents that not feel secure when they shopping online, but never the less feels that it is important
to feel secure when they do. Hence, the distribution of the respondents reveals that they generally have a
more positive attitude towards feeling secure when shopping online.
1
4
18
24
24
0
5
10
15
20
25
1 (Negative)
2
34
5(Positive)
Comparing Price
Comparing Price
1(Negative) 1 1.41% 1.41%
2 12 16.90% 18.31%
3 23 32.39% 50.70%
4 19 26.76% 77.46%
5(Positive) 16 22.54% 100.00%
Total 71 100.00%

35
TRUST IN THE INTERNET RETAILER
This question investigated the respondents overall attitude towards the trust in the Internet retailer. Two
questions were asked, one asked if the respondent has to trust the Internet retailer in order to make a
purchase from them, and these condquestion asked how important it is to have trust in the Internet retailer
before making a purchase from them. The results showed the respondents overall attitude towards the third
and last attribute constituting the factor trust.
TABLE0-18Q7.2DISTRIBUTIONACCORDINGTOTHEATTRIBUTE“TRUSTINTHEINTERNETRETAILER”
The majority feel a need to trust the retailer, while also feeling that it is important to trust there tailer when
proceeding with a purchase. Only three respondents fell into the negative part of the scale. This indicates that
trust in the Internet retailer, to some degree, is almost always needed for the consumer to make a purchase
from an Internet retailer.
CONVENIENCE
Questions8.1,8.2,and8.3
If online purchasing is perceived as involving less effort compared to shopping at a store This question
examines one of the attributes that constitutes the factor convenience and is included in the questionnaire in
order to find out if the respondents perceive that purchasing online involves less effort than compared to
shopping in a store. This question is also a part of the fact or convenience and the overall attitude the
respondents have towards the factor convenience.
TABLE0-19Q8.1DISTRIBUTIONACCORDINGTHEATTRIBUTE“SHOPPINGONLINEINVOLVESLESSEFFORTCOMPAREDTOS
HOPPINGATPHYSICALSTORE”
The majority (40.85%) of the respondents did not find shopping online is convenient when it involved the
attribute less effort. The further distribution of all the respondents had a positive attitude towards the
attribute less effort. This is clearly shown by that one of the largest respondent groups (30.99%) is the group
with the highest value that perceived shopping online as always involving less effort compared to shopping in
store. Hence, there is an overall a positive attitude towards this attribute among the respondents.
Does online purchasing save time compared to purchasing at a store?
1(Negative) 2 2.82% 2.82%
2 7 9.86% 12.68%
3 24 33.80% 46.48%
4 28 39.44% 85.92%
5(Positive) 10 14.08% 100.00%
Total 71 100.00%
1(Negative) 0 0.00% 0.00%
2 8 11.27% 11.27%
3 12 16.90% 28.17%
4 22 30.99% 59.15%
5(Positive) 29 40.85% 100.00%
Total 71 100.00%

36
TABLE0-20Q8.2DISTRIBUTIONACCORDINGTHEATTRIBUTE“PURCHASING ONLINE SAVES TIME COMPARED TO
PURCHASING AT A STORE”
The two big majority groups (33.90% respectively 30.99%) found shopping online either as always time
saving or that neither it saves time nor is more time consuming than shopping at store.The overall
distribution of the respondents had showed a positive attitude towards the attributes hopping online saves
time compared to shopping at a store. This is a logical conclusion that can be derived from the fact that
when shopping online from a computer at home does not involve having to leave the home, which can be
considered as time saving. But some complications at the website or being able to use a computer from
home, can explain the why the majority of respondents do considers shopping online neither as time saving
nor is more time consuming than shopping at store. This explanation can also be applied to the respondents
on the negative side of the scale.
PRIMARY FACTOR
By considering all the attributes of the factors and looking at what factor each respondent had the most
positive attitude towards and labelling it as the Primary Factor, I were able to identify the following
distribution among the respondents for the factor sprice, trust and convenience in table 5.25:
Distribution according to the“Primary Factor”
PrimaryFactor Frequency Percent CumulativePercent
Price 53 75.71% 75.71%
Trust 10 14.29% 90.00%
Convenince 7 10.00% 100.00%
Total 70 100.00%
1(Negative) 2 2.82% 2.82%
2 8 11.27% 14.08%
3 15 21.13% 35.21%
4 22 30.99% 66.20%
5(Positive) 24 33.80% 100.00%
Total 71 100.00%

37
ANALYSIS
THEFACTORS
In order to gain an initial understanding of how the respondent feels towards
Price, Trust and Convenience, they were asked to rank these in the questionnaire accordingly. I have then
investigated the different attributes of the factors.
When the respondent was asked to just rank the different factors, the results showed that 73.9% considered
price as the primary concern when purchasing online. When the respondent was put in front of the three
factors, I could see that most of them chose price.However, if compared to the Primary Factor, where the
different attributes to the factors were used to find the overall attitude and importance; the results did not
match. The distributions for the Primary Fact or were Price: 41.6%, Trust:30.1% and Convenience: 28.3%. This
showed that the respondent generally thought that Price was the most important to him or her, but at the
same time one of the other factors could actually be the most important to a respondent, since the
distribution shifted between the two ways of evaluating, with the Primary Factor being the most accurate
since it offers an overall attitude measurement. This answers the questions one and two in our research.
TWO STEP CLUSTER
The two step cluster analysis was used to segment the respondents. This type of analysis grouped data so that
records within a group were similar. It could be applied to data that described customer buying habits,
gender, age, income etc. It created segments containing groups that had the most in common and this
method was selected due to the amount of variables that needed to be taken into consideration when creating
the segments.
By analysing the collected data, for the various variables that I intended to segment by, I decided to exclude
some variables. There as on was that some of the variables did not show a significant variation which would
have enhanced the homogeneity of the segments. Segments need to be homogenous and diverse from the
whole population in order for them to be targeted. The variables that I did not use would instead be applied
to give an additional explanation to the formed segments. With the two step cluster analysis I found three
segments in our sample, based on the variables that I chose to segment by, which were: Expenditure on an
average each month, Previous experience with purchasing online, Future expectations with purchasing online,
The impact of the reference group: family, The impact of the reference group: friends, and The impact of the
reference group: online forums. In this research the variables are categorized into the following variables
shown by Figure6.1.

38
 ConsumerTraits:ImpactofReferenceGroups(Family,Friends,and,Onlineforums),andAttitudeandBeliefs(Pr
eviousexperienceandFutureexpectations)
FIGURE0-1SEGMENTVARIABLES
SIGNIFICANCE OF THE FACTORS WITHIN THE SEGMENTS
InordertoshowthattheresultsandconclusionswhicharetobepresentedbelowaresignificantIconductedaKruskalWallis
test.ThistestalsopresentedthatthenumberofcollectedrespondentswassufficientfortheanalysisthatIhadconducted.T
heKruskalWallistestisthesametestasthepriorOneWayANOVAexpectfromthefactthatKruskalWallisteststwovariable
satthesametimeforsignificance.
TwoStepClusterNumber N MeanRank
PriceFishbein 1 15 127,61
2 22 118,29
3 34 100,61
Total 71
TrustFishbein 1 13 151,37
2 27 112,26
3 31 94,15
Total 71
ConvenienceFishbein 1 21 121,40
2 12 124,27
3 38 97,53
Total 71
WhenIconductedthetestIfoundthatthefactorsPrice,Trust,andConvenienceshowedasignificantvariancewithintheseg
mentsandthattheresultspresentedbelowconcurwiththeconclusionsthatIhaddrawn.Table6.7showedthatallthreefact
orswerehighlysignificant,especiallythefactorTrusttowhichtherespondentshadansweredwithhighvariances(,000).
SEGMENTS
Online
Consumer
Segments
Consumer
Traits
Attitude and
Belifs
Impact of
reference
Groups
Online
Behaviour
Online
Shopping
patterns

39
Thetwo-
stepclustercreatedthreesegmentsoutoftheselectedvariables.AccordingtotheTable6.1thedistributionoftheresponde
ntstothethreesegmentsis:SegmentOnewith47respondents,SegmentTwowith93respondentsandSegmentThreewit
h86respondents.
Segments Frequency Percent CumulativePercent
Segment1 15 21.13% 21.13%
Segment2 22 30.99% 52.11%
Segment3 34 47.89% 100.00%
Total 71 100.00%
DESCRIPTIONOFSEGMENTONE:HIGHSPENDERS
Segmentoneheld20.8%ofalltherespondents.Theconsumersinthissegmentmainlyspenteachbetween400-
799SEKoneachmonthduringasemester.Hence,theyarethesegmentthatcanbeconsideredtospendmosteachmonth.Th
eentiresegment(100%)hashadverygoodpreviousexperienceswithpurchasingonlineandveryhighexpectationsforthen
exttimetheywillpurchaseonline.TheexperienceandopinionsoftheirfamilyandfriendsasReferenceGroupsdidnotmatte
rtothemwhentheypurchasedonline,neitherweretheexperiencesandopinionsdiscussedinonlineforumstakenintocons
ideration.
Asaconclusionthissegmentisthesmallestofthethreeandconsistedofconsumersthathadspentthemostmoneyonshoppi
ng.Theyhadveryhighconfidenceinpurchasingonline,mainlyduetoverygoodpreviousexperiences.Theydidnotregardt
heexperienceandopinionsofanyofthenamedReferenceGroups.
ByfurtherprofilingtheconsumersinthissegmentthatwerestudyingattheirfirstorsecondsemesterattheUniversity,had
anageintervalbetween18to24years.Theyhadadisposableincomewithahighvariationbetween5.000SEKto11.000SEK.T
hissegmentgroupspentmainlysomewherebetween1to2hourseachdayonline,however,keepinginmindthatsomerespo
ndentswithinthissegmentonlyspentbetweenhalfanhourto1houronline.ThissegmentprimarilyusedtheInternetforfun
andthesecondmostimportantasE-
mail,andthethirdasinformation.Becauseoftheidentifiedcharacteristicsofthissegment,IchosetolabelthemasHighSpen
ders
PrimaryFactorofConcernforHighSpenders
ThedistributionamongtherespondentsaccordingtothefactorsPrice,Trust,andConvenienceshowedthatthefactorTru
stwasthemainconcernoftheHighSpenderswith46.67%,closelyfollowedbyPrice(33.33%).ThethirdconcernofSegmen
tOnewasidentifiedasConvenience(25.5%).
Frequency Percent CumulativePercent
Price 5 33.33% 33.33%
Trust 7 46.67% 80.00%
Convenience 3 20.00% 100.00%
Total 15 100.00%
Accordingtotable6.1theprimaryfactorofconcernfortheHighSpenderswasTrust.Here,Trusthadanaboveaveragedistri
butionwhichloweredthedistributionofthefactorsPriceandConvenience.ThisindicatedthattherespondentsofthisSeg
mentOneweremoreaffectedbytheTrustattributeswhentheypurchasingonline.
ByfurtherexploringthevariableTrustforthissegmentIfoundthattherespondentsweremainlyconcernedwithfeelingsec
urewhenpurchasingonline.ThisalsoincludedtrustingtheInternetretailer.Therespondentshadaveryhighpositiveattit
udebothinagreeingtothestatementsandalsobyshowingtheirconsentthatthestatementswereofhighimportance.Thet
hirdattributeofthefactorTrust,“trustingtheInternetasdistributionchannel”,didnotshowthesameoverallpositiveattit
udeasthefirsttwo.Eventhoughthatamajorityoftherespondentswereonthepositivesideofthescaletherewasagroupof23
.4%thatbelievedthisattributetobeneutralforthem.
InthissegmentIalsochosetoanalysethequestionconcerningwhethertherespondentboughtfromthesameonlineretailer
.Thissegmentwashighlyconcernedwithtrustingtheretailer,whichisanattributetothefactorTrustandinfact,therespon
dentsinthissegmentalsopurchasedfromthesameonlineretailermorefrequentlythantherespondentsinSegmentTwoo
rSegmentThree.

40
Byaskingtherespondentstolistwhattheythoughtastheirprimaryconcernofthethreefactorswhenpurchasingonline,Ifo
undthattheydidnotcorrespondwiththeresultswhenapplyingtheFishbeinmodel.TherespondentsinSegmentOnehadli
stedthefactorPricetheirprimaryconcern,thefactorConvenienceassecondaryconcern,andlastthefactorTrustastertiar
yconcern.ButwhenexaminingtheoverallattitudetowardsthesefactorsbydividingthedifferentattributesIfoundslightly
differentresults,whichwerepresentedintable6.3.Accordingtotable6.3,theprimaryconcernwasTrust,followedbyPrice
andConvenience.
Theconclusionthatcanbeendrawnfromtheresults,isthatthereareconsumerswithahighlypositiveattitudetowardspur
chasingonlinewhichisformedbythehighlypositiveattitudetowardsthefactorTrust.Sodidtheattributesoffeelingsecure
whenpurchasingonlineandhavingtrustintheInternetretailer.Sincethesewerealsotheconsumersthatspentthelargesta
mountofmoneyonpurchasingonline,therebytheyweregivingimportantimplicationstowardsthefactorTrust.
DESCRIPTION OF SEGMENT TWO: PRICE EASERS
SegmentTwoconsistedof22respondentsandwasthelargestsegmentgroupwith41.2%oftheoverallsample.Theiraverag
eexpenditureonpermonthwasbetween200-
599SEK.Theconsumersinthissegmenthadaslightlylesspositivethanverygoodwhenitcametotheironlinepurchasingex
perience.Theirfutureexpectationsweresimilartothepreviousexperiences,andtheconsumerexpectedanyfutureonline
purchasetobeslightlylesspositivethanverygood.Mostoftheconsumershadagoodtoverygoodattitudetowardspurchasi
ngonline.Generally,theconsumersinthissegmentdidnotconsidertheexperiencesandopinionsoftheirfamilies,butonth
eotherhand,theydidconsideritmorecomparedthananyoftheothertwosegments.Theirfriend’sexperiencesandopinion
swould,however,affecttheirpurchasetosomedegree.Minorconsiderationswerealsotakentotheexperiencesandopinio
nsdiscussedinonlineforumsbythissegment.Generally,therespondentstooktheexperienceandopinionsofthedifferent
ReferenceGroupsintomostconsiderationcomparedtotheothersegments,andtheywereespeciallyaffectedbytheRefere
nceGroupfriends.
ThefurtherprofileofthissegmentgroupissomewhatsimilartothatofSegmentOne.Therespondentsinthissegmentwere
intheagebetween18to24years.Theyweremainlystudyingtheirfirstorsecondsemesterattheuniversityandhadaincome
ofvarioussize,themajority(43.0%),hadadisposableincomeofbelow5.000SEK,butaanothergroup(26.9%),hadadispos
ableincomeofbetween7.000-
8.999SEK.TheyprimarilyusedtheInternetforfun,andlisttheirsecondaryuseoftheInternetforinformationpurposesan
dtheirtertiaryuseasE-
mail.Becauseoftheidentifiedcharacteristicsofthissegment,IchosetolabelthemasPriceEasers,sincetheyhadalowdispos
ableincome,butweremoreinactivewhenlookingforthelowestpricesastheywouldrelyontheirfriends’opinions.
PRIMARY FACTOR OF CONCERN FOR PRICE EASERS
ThedistributionaccordingtotheprimaryfactorofconcerninthissegmentshowedthefactorPricewith45.45%tobethem
aininfluencerwhenpurchasingonline.ThePricefactorwascloselyfollowedbythefactorConveniencewith36.36%ofther
espondents.InthissegmenttherespondentsconsideredthefactorTrusttheleastimportantwith18.18%.
Price 10 45.45% 45.45%
Trust 4 18.18% 63.64%
Convenience 8 36.36% 100.00%
Total 22 100.00%
Asillustratedintable6.2,themajorityoftherespondentsinSegmentTwobelievedthatPricewastheirmostimportantconc
ern,followedbyConvenienceandTrust.ThisshowsthatthePriceattributesaffecttheconsumerthemostwhenpurchasin
gonline.ItshouldalsobenoticedthattheConveniencefactorinthissegmentisveryhighwhencomparedtotheoveralldistri
butionofthefactortotheentirepopulationsample.Thesefactorshadanoverallhigherdistributionwhichreducedthedistr
ibutionofthefactorTrust.
WhencloserexaminingtheattributesofthefactorPriceIfoundthataccordingtoSegmentOne,themajorityoftheresponde
nts(52.7%),listedthattheydidagreewiththestatementthat“purchasingonlinesavedthemmoney”andthemajority(62.4

41
%)listedthat“savingmoneyishighlyimportant”.ThesecondattributeofthefactorPrice,“comparingpricesthroughdiffer
entpricecomparisonwebsitesbeforepurchasingonline”,wasshowntohaveanevendistribution.Therespondentswerea
lsoevenlydistributedbetweenthegroups,andthemajorityfeltthatthiswasimportant.
SincethefactorConveniencehasahighdistributioninthissegment,thereneedstobefurtherexaminationofthedifferentv
ariablesinordertowhollyunderstandtheconsumersinthissegment.Ifoundthattheoverallattitudewaspositiveandcame
fromtheattributes“savingtime”and“lesseffort”.TheconsumersagreedwiththefactthatpurchasingovertheInternetinv
olvedlesseffortcomparedtopurchasingoffline.Yettheydidnotlistitasimportant.Thesamedistributioncanbefoundfort
heattributesavingtime,wheretheconsumersagreedtothefactthatitsavedthemtimebuttheydidnotfinditasimportantas
timesaving.Comparedtothepreviousattributetheyfound“savingtimewhenpurchasingonline”tobeofgreaterimportan
cethanwhenitinvolvedlesseffort.ThelastattributeofthefactorConveniencewas“beingabletopurchaseonlineatanytime
”wheretheconsumersdidnotshowasmuchofapositiveattitudeastothepriorattributes.Acloserexaminationshowsthatt
herespondentagreedwiththestatementbutdidnotfindithighlyimportant.OverallIcanconcludethattherespondentsag
reedwiththeattributesbutdidnotperceivethemasimportant.
Whenaskedtoranktheimportanceofthethreefactors,therespondentsinSegmentTwolistedthefactorPriceastheprimar
yconcern,TrustasthesecondaryandConvenienceasthetertiaryconcern.Heretheprimaryconcerndidagreewiththeover
allattitudetowardsthefactors,whilethesecondaryandtertiaryconcerndidnot.Theresultsshowedthattheconsumersint
hissegmentweremoreConvenienceorientedthancomparedtoTrust.
InconclusionthePriceEasersweregenerallypricesensitiveandatthesametimeveryconvenienceoriented.Thiswassuppo
rtedbythefactthattherespondentstookconsiderationoftheReferenceGroupsandmostlytooktheopinionsoftheirfriend
sintoconsideration.Inthissensetheywereveryconvenienceoriented.Therespondentsalsoconnectedtothefactthatthey
wantedtosavemoneybutdidnotfinditasimportantascomparingpricesbeforepurchasing.Instead,theyturnedtotheadvi
ceandopinionsfromtheirfriends.Thefactthattherespondentsinthissegmentwerepricesensitivecanalsobeconcludedb
ythatthemajorityoftherespondentshadthelowestdisposableincomeoftheoverallsample.BecauseofthePriceandConve
nienceorientation,theconsumerdidnottakemuchconsiderationtothefactorTrust.EventhoughPriceEasersspentlessm
oneyonpurchasing,comparedtotheprevioussegment,theywerestillthelargestsegmentgroupandbecauseofthatimpor
tant.
DESCRIPTION OF SEGMENT THREE: BARGAIN SEEKERS
SegmentThreewasasegmentwith86respondentsand38.0%oftheoverallsample.Theseconsumersspentaboutasmuch
astheconsumersinSegmentTwo,between200to599SEKoneachmonth.Theyhadeitherslightlygoodorneithergoodnor
badpreviousexperiences.Futureexpectationsforpurchasingonlinewerewithinasimilarsamerange.Overalltheconsum
ersinthissegmenthadtheleastpositiveattitudetowardspurchasingonlinecomparedtotheothertwosegments.Withinth
issegmentamajorityof61.6%didnotconsidertheexperiencesandopinionsoftheirfamilyatall,whiletheyshowedamorep
ositiveattitudetowardstheexperienceandopinionsoftheirfriends.TheimpactoftheReferenceGrouponlineforumswasi
nlinewiththeReferenceGroupfamily,whereamajorityof66.3%didnotconsidertheexperienceandopinionsthatweredis
cussed.TosummarizethevariableofReferenceGrouponecanfindthattheexperienceandopinionsoffamilyandonlinefor
mswerenotaffectingtheconsumeratallwhiletheexperienceandopinionsoftheirfriendsweretakenintosomeminorconsi
deration.
OthervariablessuchasDemographicsandTimeSpentOnlinewereverysimilartotheothersegmentsandparticularlytoSe
gmentTwo.Almostnodifferencecouldbefound.Whatmightseparatetheminthesevariableswasthatthissegmentspents
lightlymoretimeonline.TherespondentsinthissegmentlistthattheymainlyusedtheInternetforfunandthereafterforinf
ormationasbothsecondaryandtertiaryuse.Becauseoftheidentifiedcharacteristicsofthissegment,IchosetolabelthemB
argainSeekers.
PRIMARYFACTOROFCONCERNFORBARGAINSEEKERS
InthissegmentthepreferablefactorofconcernwasPricewith47.06%oftherespondentsagreeingtoit.Thedistributionwa
sclearlymadeontheexpenseofboththefactorsTrustandConvenience.Thedistributionsofthefactorstrustwere29.41%,a
ndconveniencewas23.53%.

42
Price 16 47.06% 47.06%
Trust 10 29.41% 76.47%
Convenience 8 23.53% 100.00%
Total 34 100.00%
WefoundtheBargainSeekerstobehighlypricesensitiveandthattheydidnotgivemuchconsiderationtothefactorConveni
ence.
Afterhavinginvestigatedtheattributesfurther,thatconstitutedthefactorPrice,Ifoundthattherespondentshadamorep
ositiveattitudetowardscomparingpricesthantheyhadtowardsthefeelingofsavingmoneywhentheypurchasedonline.T
hisindicatedthatcomparingpriceswasmoreimportantconcernfortherespondentsofthesegmentandsincetherespond
entwerecomparingpricestheywouldautomaticallybelookingforthebestbuy.Bylookingforlowerpricesoneisconsequen
tlytryingtobesavingmoney.Iwerelinkingthisbehaviourtothefirstattribute,thefeelingofthattheyweresavingmoney.By
closerlookingattheattribute“comparingprices”itshowedthattheconsumersdidfrequentlycomparepricebeforepurch
asingandalsothatitwasimportantforthemtobedoingso.WhenlookingatthesecondvariableIseethattheconsumerdidag
reethatpurchasingonlinesavedmoney.However,theydidnotfeelthatitwasasimportantascomparingprices.Overallther
espondentswerehighlypositivetothefactorPriceandthereforetookconsiderationtoitwhenpurchasingonline.
Theprimaryconcernfortherespondentsinthissegmentshowedthattherespondentswerepriceoriented,fortheseconda
ryconcerntheystatedthattheywereTrustorientedandastertiaryconcerntheylistedConvenience.Theseresultsmatched
withthedistributionthatIacquiredaccordingtotheFishbeinmodel.TheBargainSeekershashadalowincomewhichmade
thempricesensitive.Theywere,however,notConvenienceoriented;insteadtheytooktheirtimetocomparethepricesonli
newhichwasshownbythedifferentattributestothefactorPrice.Itshouldalsobenotedthattheyspentalittlemoretimeonli
nethantheothersegments.Theyconsideredtheexperiencesandopinionsoftheirfriendswhichalsoshowedthattheywere
activelyseekingthelowestpricesandthatitwasimportantforthemtodoso.Thatbehaviourexplainsthefactthattherespon
dentsfoundcomparingpricestobemoreimportantthanactuallysavingmoney,butasexplainedbefore,constantlysearchi
ngforthelowestpriceswillautomaticallyresultinthewanttobesavingmoney.
SUMMARY
The three segments that were found show a significant difference in the primary factor of concern. The
general distribution showed that the factor Price was the primary factor for the entire population sample, and
that these cond factor was Trust which was closely followed by Convenience.
When segmenting the respondents through the different variables I found that Segment One was mainly trust
oriented and the respondents had a high positive attitude towards purchasing online. As they-did spend the
most money, in comparison to the other segments I chose to label them High Spenders.
Segment Two were mainly Price and Convenience oriented and therefore took the most consideration to the
opinions and experiences of the Reference Groups. As they low disposable incomes and were some what
convenience orientated when acquiring information about low prices, I chose to label them Price Easers.
Segment Three were highly Price oriented and there fore actively involved in searches for the lowest prices
online. They considered the experiences and opinions of their friends to some extent before purchasing online
while, and were actively searching for the lowest prices. Hence, I chose to label them Bargain Seekers.

43
CONCLUSIONS
When a consumer purchases a online, he or she is affected by various factors. The main influencing factors
have been identified as Price, Trust ,and Convenience. The Price factor exists because prices are often lower
on Internet stores compared to physical stores due to lower costs. Purchasing a online can greatly benefit the
consumer in terms of convenience and saving money. It is also convenient to shop on various sites with
different assortments, from the home. Trust is evidently needed since the consumer must share detailed
personal and financial information when purchasing a online. These types of data include the full name,
delivery address and credit card number for example, which makes Trust an important factor.
FUTURE RESEARCH
After having conducted our research and considering the limitations in time and resources that we had been
facing, it would be of interest to examine our research topic further as well as more profoundly. Below, we
have listed a few deductions for possible future research:
It would be interesting to conduct a survey at another university. If this would be done and similar results
were discovered, one could apply generalizability to the results
Conduct a survey on a larger sample, also including people that are not students and segmenting according to
that. This could find new segments, with new analytical possibilities.
This research was conducted from the consumers point of view, and if could also be conducted with greater
focus towards the online retailer.
We found that Price, Trust and Convenience were factors that are important when a consumer decides to
purchase online, but it would be interesting to see whether the concepts of these factors are perceived equally
between all consumers or if there were any discrepancies.
Furthermore, it would be of interesting to see if the factors were the same for other good that are traded
online. In general, this research could be conducted with a greater range of goods and with greater detail
towards the specific factors.

44
Comparison
Between
Two Top Online Retail
Marketers

45
8.1 Introduction To Industries
“Consumer is the sole end and purpose of all production; and the interest of the producer ought to
be attended to only so far as it may be necessary for promoting that of the consumer."
- Adam Smith
The growing interdependence of the world economy and international character of many business
practices have contributed to the development of universal emphasis on consumer. Modern
technological developments have no doubt made a great impact on the quality, availability and safety
of goods and services. A consumer person who purchases or ultimately consumes goods and
services. Growing practice of electronic transactions includes both e-commerce and e-consumers.
Internet is changing the way consumers shop and buys goods and services, and has rapidly evolved into a
global phenomenon. Many companies have started using the Internet with the aim of cutting marketing
costs, thereby reducing the price of their products and services in order to stay ahead in highly
competitive markets. Even Government institutions have started replacing their paper work. Companies
also use the Internet to convey, communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices, product
features and after sale service facilities they will receive if they purchase the product from a
particular store. Many experts are optimistic about the prospect of online business.
Online shopping is definitely a great way to shop with everything available on the websites from
clothes, gift items, food, home needs, medicines, and many more, this mode of shopping allows one
to shop conveniently without hassle on spending hours in a supermarket or shopping areas. The
Internet with its wide array of information nooks, allows the customer to go through various reviews

46
of the product or service before actually heading for purchases. These online shopping websites also
have daily deals for the customer looking for discounts and store offerings.
Profits and growth can be sustained only by adopting ethical methods of doing business. Most of the
products or services which consumers buy or pay for, are durables and services. Rather than earning
short term profit, the focus should be more on achieving long term goals.
Consumer behaviour is said to be an applied discipline as some decisions are significantly affected by
their behaviour or expected actions. The online purchasing behaviour of online shoppers and factor
influencing online shopping behaviour and its future perspective. Customers use the Internet not
only to buy the product online, but also to compare prices, product features and after sale service
facilities the will receive if they purchase the product from a particular store. Many experts are
optimistic about the prospect of online business.
A consumer before buying any product online, he will check the authenticity of the online shopping
website as how much the site is trustworthy and reliable as in online shopping the consumer or buyer is
not able to see the seller and cannot check the product until it has been delivered to him.

47
Process of shopping at an online store

48
8.1.1
Flipkart is an electronic commerce company headquartered in Bangalore, Karnataka. Flipkart was
founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of
Technology Delhi. They worked for Amazon.com, and left to create their new company incorporated
in October 2007 as Flipkart Online Services Pvt. Ltd. The first product they sold was the book
Leaving Microsoft To Change The World to a customer from Hyderabad. Flipkart now employs more
than 33,000 people.
After the failure of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion Sale.[17] where it
is reported that they saw a business turnover of $300 million in gross merchandise
volume.Flipkart.com ranks #502 in world according to Alexa traffic rankings. In Google page it ranks
#6. It receives 2.2 million page views in a day and generates $6,574 in advertising revenue every day.
Moreover it has certain losses 0.60% in traffic ranking. Loading time of an average page is 2.1 sec as
it is much faster than 29% of sites around the world. The mode of payments include Credit card,
Debit card, Net-banking, e-gift vouchers, cash on delivery.
Market Trend Analysis
 Current size of e-commerce market in India is $11.2 billion.

 360 e-commerce portal offering services in India (tripled since 2010)

49

 Internet users in India is expected to grow to 376 million by 2015
SWOT Analysis of Flipkart
Strengths:
 Industry condition: Established brand

 Established investor’s relations

 Services and warehousing

 Payment options

Weakness:
 Customers are not comfortable with online payment

 Not profitable operationally

 Middle management retention issues
Opportunities
 Development of m-commerce in the e-market

 Increasing internet penetration

 Target social media to reach young
population Threats.

 High competition from major online retailers

 Capture of alternative market by competitors

Their success is largely due to their obsession with providing customers a memorable online
shopping experience. Be it Cash on Delivery, a 30-day replacement policy, EMI options, free shipping
- and of course the great prices that they offer. Then there's dedicated Flipkart delivery team that

50
works round the clock to personally make sure packages reach on time. For now they're present in
27 lucky cities, but don't worry, plans are underway to spread to many others.
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
8.1.2
The International giant e-commerce retailer recently stepped into India with an Indian version site
www.amazon.in, since the launch, amazon.in has seen a nice growth in the number of customers.
Amazon.com too had a huge number of Indian customers even before it launched store in India. The

51
store hosts wide range of products like Electronics, Mobiles, Laptops, Books, Fashion, Jewellery,
Kitchenware and more.
It is an American electronic commerce company with headquarters in Seattle, Washington. It is the
largest internet based retailer in the United States. It started as an online book store, but soon
diversified selling DVD’s, Blue-rays, CD’s, Videos’ downloading, MP3 downloading, Software,
videogames, electronics, apparel, furniture, food, toys and jewellery. It was separate retail websites
for the United States, United Kingdom and Ireland, France, Canada, Germany, Italy, Spain,
Netherland, Australia, Brazil, Japan, China, India, Mexico. Amazon also offers international shipping
to certain countries for some of its products. In 2011 it had professed an intention to launch its
website in Poland and Sweden.
Amazon’s Business Strategy
Amazon is basing its business strategy on 3 pillars:
 Vast selection

 Low cost

 Fast delivery
SWOT Analysis of Amazon
Strengths:
 Brand well known along with a strong customer base in many parts of the world.

 Diverse product offerings

 Free home delivery above a minimum purchase

 Working with minimum profit and gaining from economies of scale

 Strong business relationships with publishing houses, major electronic companies etc.

52

 Experience of almost a decade in online shopping industry
Weakness:
 Operates at very low margin

 Criticism for its working conditions

 ‘KINDLE’ is not up to the mark of its competitors
Opportunities:
 Acquiring more small business enterprises, enabling them to expand

 Opening physical stores so as to give the customers a feel of touch and experience

 Indian retail industry is estimated to be $450 Billion
Expand into more product segments
 Tie ups with major players of untapped market
Threats:
 Online security threats

 Regional low-cost retailers

 Strong online presence of Indian competitors like Flipkart and Myntra

 Flexible rules against FDI enabling other major players like Wal-Mart etc. to enter
8.1.3 RECENT DEVELOPMENTS IN THE ONLINE RETAIL INDUSTRY
India in the recent years has been experiencing an exponential growth in e- commerce and there are
new companies springing up at a rapid rate. E-commerce had a standout year in 2015, when it grew
in size from $5 Billion to $8 Billion and pervaded every aspect of our lives. In 2016, it grew further.

53
The industry is set to become more ‘m’, or mobile, than ‘e’ commerce. M-commerce has been and
will be the inevitable trend of modern times. That means more users. No doubt, more users will
help companies build scale, but they will embrace a few changes themselves.
Companies will go after profitable growth rather than wooing customers with deep discounts (in
other words, running on losses). A bigger user base will just be the cue for companies to reduce
discounts and focus on profitable growth
“Building scale won’t be a challenge for the large players,” says Sandeep Aggarwal, founder,
Shopclues. Six of the largest e-commerce players- Flipkart, Amazon India, Snapdeal, eBay.in and
Shopclues- together have about 85-90% of the e-commerce business in India.
Cash on Delivery (COD), a preferred mode of payment for many customers, will decline as more
and more people familiarize themselves with using payment wallets to shop and pay bills.
Companies will have their hands full as more users come on board, but they will be up to the task
of serving the needs of customers. That will lead to the emergence of new categories of services–
like delivering even milk and water – which Paytm founder Vijay Shekhar Sharma believes “will
replace the neighbourhood store.” “You won’t need to step out to shop.”
Brick-and-mortar will not disappear, but “there’ll be more fusion between online and offline
services,” he adds. Here is a tantalizing possibility of how this and then walk down to the store to
pick up the product selected.
“Self-logistics will be an option,” says Sharma. Shopclues’ Aggarwal says the ecosystem is healthier
and is maturing. “There will be higher adoption of m-commerce and mobile wallets.”E-commerce
will make inroads into rural areas. Traditional business houses such as Reliance Industries and
Tata Group will enter the business more aggressively. One key challenge will be logistics as there
is no large-scale player that covers the whole country cost effectively

54
8.1.4 GOVERNMENT LAWS & REGULATIONS ON ONLINE RETAIL
In a boost to retailers and grocery start-ups such as Bigbasket and Grofers, the government on
Monday allowed 100% FDI in food retail, including through e-commerce, provided such items are
produced, processed or manufactured in the country.
This will allow multi-brand retail giants such as Walmart to look at their food business here closely
and perhaps even foray into B2C food retail. Currently, the US giant operates a B2B business here
since FDI in multi-brand retail is not allowed. The US retailer has built a strong backend
infrastructure in food. Similarly, the move will help Indian hyper-local grocery start-ups raise funds
more easily.
"The decision by the government to allow up to 100% foreign direct investment (FDI) through FIPB
in marketing of food products produced or manufactured in India, including through e-commerce,
is very progressive and will help in reducing wastage, helping farm diversification and encourage
industry to produce locally within the country. This far-reaching reform will benefit farmers, give
impetus to food processing industry and create vast employment opportunities. We will study the
policy document when government finalises and issues it," said a Walmart India spokesperson.
The decision comes without any riders, department of industrial policy and promotion secretary
Ramesh Abhishek said. The food processing ministry wanted the food retailers to mandatorily
invest in back-end infrastructure besides being allowed to sell some non-food goods.
DIPP said that the e-commerce marketplace may provide support services to sellers in
warehousing and logistics.
However, such entities will not exercise ownership over the inventory. “Such an ownership over the
inventory will render the business into inventory-based model,” it said in a press note.
As per the norms, an e-commerce firm will not be permitted to sell more than 25 per cent of total
sales from one vendor or its group companies. “E-commerce entities providing marketplace will not

55
directly or indirectly influence the sale price of goods or services and shall maintain level playing
field,” it added.
This may require some of the existing players to alter their structures. “The cap of 25% on sales by
a vendor on marketplace will ensure a broad basing of vendors for a true marketplace. This may
require some of the operators to go back to the drawing board to ensure compliance,” Mr. Gupt
added.

56
8.2 Literature Review
REVIEW OF LITRATURE
It has been universally acknowledged that no work can be meaningfully conceived and soundly
accomplished without critically studying what already exists in relation to it. It is the study of
already established knowledge pertaining to the area that enable us to perceive clearly what is
already lighted up in that area and what still remained enveloped in darkness. Once we come to
know about that what is already researched and what portioned is left out, then we can proceed
logically and purposefully. There are very few direct studies available on this subject. In fact, in
India, studies has not been conducted related to the topic so far.
A research involves an in depth knowledge of the key factors which are important to the study.
Various libraries and institutes in the region were visited. The available related literature in these
libraries and institutes was studied which proved to be very useful in getting an insight into the
main objectives of the study and in finalizing the methodology.
The online consumer market place is growing at an exponential rate. At the same time, technology
has enhanced the capacity of online companies to collect, store, maintains, transfer and analyse vast
amount of data from and about the consumer who visit their web sites. This increase in the
collection and use of data has raised public awareness and consumer concern about online privacy.
Number of studies has been done in this field some of which are discussed below:
Subba Rao, Truong, Senecal and Le, (2007) conducted the study on ―How Buyers‘
Expected Benefits, Perceived Risks, and E-Business.
Marketplace Usage and claims that buyer‘s E-business readiness moderated the relationship
between expected benefits and usage of electronic marketplaces

57
Prasad and Aryasri (2009) have explored the determinants of shopping behaviour such as
convenience, customer service, trust, web store environment and web shopping enjoyment and
examine the effect of these factors towards online buying behaviour.
Dr. Durmaz(2011) in the study entitled ―impact of cultural factors on online shopping
behaviour and the study found that while buying goods and services, culture, beliefs and
traditions take an important position, while the environment, friends and social groups stated
48.6% .In this case the impact of cultural factors means a lot.
Wells et al. (2011) in his study entitled ―online impulse buying: understanding the interplay
between consumer impulsiveness and website quality‖ focused on the direct relationships
between the website and online impulse buying. The study found and proposed the model
considered the direct influence of website quality on the urge to buy impulsively.
Dahiya Richa (2012) in the study entitled ―Impact of demographic factors of consumers
on online shopping behaviour: a study of consumers in India‖ and the study found that
On-line shopping is a recent phenomenon in the field of E-Business and is definitely
going to be the future of shopping in the world. Most of the companies are running
their on-line portals to sell their products/services on-line.
Though online shopping is very common outside India, its growth in Indian Market, which is a
large and strategic consumer market, is still not in line with the global market. The potential
growth of on-line shopping has triggered the idea of conducting a study on on-line shopping in
India. The results of study reveal that on-line shopping in India is significantly affected by various
Demographic actors like age, gender, marital status, family size and income. The results of the

58
study could be further used by the researchers and practitioners for conducting future studies in
the similar area.
Realizing the importance of E-commerce, companies would like to discover more business
opportunities and to bring back more customers. As such, it is very important to understand
consumers’ E-commerce adoption behaviour and their online shopping behaviour. This is believed
to be different from their behaviour in the traditional shopping environment. Thus, there is a need
for the theory of consumer online shopping behaviour.

59
8.3 Theories Of The Study
8.3.1 CONSUMER BEHAVIOUR
Consumer behaviour refers to the mental and emotional process and the observable behaviour of
consumers during searching, purchasing and post consumption of a product or service Consumer
behaviour involves study of how people buy, what they buy, when they buy and why they buy. It
blends the elements from psychology, sociology, socio psychology, anthropology and economics. It
also tries to assess the influence on the consumer from groups such as family, friends, reference
groups and society in general .Buyer behaviour has two aspects: the final purchase activity visible to
any observer and the detailed or short decision process that may involve the interplay of a number
of complex variables not visible to anyone.
8.3.2 Consumer Decision making process:
8.3.3 AIDA PRINCIPLE IN ONLINE MARKETING:

60
1. ATTENTION – Initial point where your brand and/or business is recognised and
acknowledged.
2. INTEREST – Generating thoughts and discussion about your brand.
3. DESIRE – Communicate your message through the use of social media and email marketing.
4. ACTION – The stage where the conversion is complete and back to the ‘Interest’ stage to
retain them. Your website is responsible for this page.
8.3.4 MARKETING MIX OF ONLINE SHOPPING:

61
The 7Ps of marketing is being applied in the online marketing industry. The effect of marketing mix
is being explained below diagram:

62
8.4 Research Methodology
8.4.1 Research Objective
To know and understand the consumer’s preference of shopping from Flipkart & Amazon. This will
help to know the preference of consumers towards online store and what are the factors which
shape the consumer’s preferences towards that online store. Also what are key concerns from the
point of view of consumer while online shopping?
8.4.2 DATA COLLECTION METHOD
Primary Data
It is original primary data, for specific purpose of research project. For this project, I have to use the
common research instrument or tool- Questionnaire.
Secondary Data
It will be collected to add the value to the primary data. This may be used to collect necessary data
and records by different websites, magazines, annual reports, journals, reference books, and
newspapers, etc.
8.4.3 SAMPLE DESIGN

63
Sample Unit
For studying consumer preference towards on online shopping platforms, samples were randomly
selected from Kanpur.
Sample Media
Questionnaire in the form of google forms.
Sampling Methods
 Random sampling

 Convenient sampling
Sample size - 100
Research place - Kanpur

64
8.5 Data Analysis
DATA ANALYSIS
The objectives of the research were studied with respect to a regular online shopper who shopped
more than once because they would be the right respondent to give an insight about the online
shopping. Therefore it is firstly important to understand who is a regular online shopper. In the
survey the respondents were asked the following questions which helped to know about a regular
shopper.
1. What age-group do you fall into?

65
 As per the data collected, 80% of the respondents fall into 10 – 20 & 20 – 30 age
groups which indicates that the majority of the online shoppers are young
generation.

3. What do you do currently ?
 As per the survey, majority of the respondents are students & servicemen who fall
in the above mentioned age groups who are the powerful internet users in the
country.









3. Are you a frequent online shopper?

66
As per the data collected, 57% of the people are regular online customers, these are mainly
working people who do not have time to go to shop and make purchase and also the
younger generation are depended on online purchase as they seek variety of alternatives
for the same product.
 43% of the people are not regular online customers because the quality of the products
cannot be known and some people are not flexible to shop online
4. Which platform do you prefer for your online shopping?

67
 The data indicates that most people find it convenient to shop with mobile
application rather than the official website version.
5. What is your most preferred mode of payment while you purchase from
online?

68
 As per the survey, the most preferred mode of payment is CoD

 Other preferences like Debit/Credit card payment & Net banking is slowly gaining
momentum.
6. What is your most preferred online shopping site?
 As per the data collected, vast majority of respondents prefer Amazon to do their
online shopping.
7. Which online store has a better & effective mobile app layout for your ease
of shopping?

69
 As per the survey, 86% of the respondents prefer the Flipkart mobile app over

Amazon’s because it eases the shopping experience of the customers.





8. When do you mostly shop from your preferred online store?

70
 As per the survey, online shopping is most preferred by the customers at the
time of availability of ‘offers and discounts’.

 A very few percentage shop regularly







9. Which is the most frequently purchased product from your preferred online
store?

71
 Clothing: As per the research conducted, 34% of the people purchase clothes from
Flipkart because of their good quality & 24% of the people purchase clothes from
Amazon.


Footwear: The study shows that 20% of the people prefer Flipkart to purchase foot wears as
fashionable footwear’s are available for both men and women & just 10% -14% of the people
choose Amazon to have trendy & stylish foot wears
 Electronics: As per the survey conducted, 30%-16% of the people choose Flipkart to
purchase electronic items as good discounts are provided. And, only 8% people
purchase electronics from Amazon.

 Kitchen and home appliances: As per the information collected, 8%-6% of the
people purchase kitchen and home appliances from online and it may only include
those products which are not easily available in shops and also the other reason may
be that the online price is less than ordinary shopping price. Overall only 22%
people purchase kitchen and home appliances through online. One reason will be
that they are addicted to purchase these products through shops.

 Accessories and cosmetics: As per the research, 10%-8% people prefer Amazon to
purchase these products may be due to the fashionable trend provided by them.
And only 6%-2% of the people choose other sites to purchase these products, as
they do not provide branded items in this sector. Overall only 34% people prefer
online sites to purchase accessories and cosmetics. Because these products are easily
available on the near-by shops and more over people do not have patience to wait
for these products until they are delivered to them.

10. Which online store has products at a lower price as compared to the
other?

72
 As per the survey, majority of the respondents prefer Amazon over Flipkart for
giving best bang for their buck & helps them to save a bit extra on purchases.


11. Which online store has a better product display & description?
 As per survey, the Both Flipkart & Amazon have good product visibility &
detailed description (like price, discount & offers, pictures, feel, specifications,

73
dimensions, contents of package, etc.) But, Flipkart has a slight edge over
Amazon.
12. Which online store has a variety of product choices in-terms of sorting
& filtering as per individual requirements & seller ratings?
As per the data collected, Amazon stands out to be the provider of a variety of product choices
which allows shoppers to sort & filter out products according their requirements (like gender, age,
price, availability, size, features, colour, etc.) & seller ratings given by other customers
13. Which online store gives you a better customer feedback, rating &
reviewing system?

74
 As per the survey, 63% respondents indicate that Flipkart has better customer
feedback, rating & reviewing system over Amazon.

14. Which online store has a better ‘After-sales service’?
 As per the survey, 62% of the respondents express that Flipkart has a better ‘After-
sales service’ over Amazon.

15. Which online store has a better customer-friendly ‘exchange/ return/
replacement and/or refund policy’?

75
 76% respondents find Flipkart’s ‘Exchange/Return/Replacement & Refund policy’
more convenient & customer-friendly in comparison to 24% respondents who feel
otherwise.


16. Which online store has a swift delivery system?

 As per the survey, vast majority of respondents prefer Amazon’s swift product
delivery system over Flipkart.

76
8.6 Findings
As per the survey data, my findings as follows:
 Majority of the online shoppers are students & servicemen who between 10 years to 30 years of
age who are powerful internet users in the country.

 People prefer to shop with Mobile application rather than logging into the official website
solely due to the shopping experience.

 The most preferred mode of payment while purchasing online is Cash on Delivery & Card
transactions

 Amazon is more preferred by the people over Flipkart for online shopping due to various factors

 People prefer to shop with Flipkart over Amazon because of the ease of shopping experience
through its official website & mobile application

 Online shopping is most preferred by the customers at the time of availability of ‘offers and
discounts’

 Majorly selling product categories are clothing, footwear & electronics

 Amazon has the edge over Flipkart in-terms of lower product cost, product choices & swift
product delivery

Flipkart has a better Product description & display, Customer feedback & Rating system,
Exchange/Return/Replacement & Refund policy & after-sales service.
8.7 Suggestions & Conclusion

77
8.7.1 SUGGESTIONS

Amazon needs to improve its mobile application for improving the shopping experience of
their customers & to attract more customers.


EMI facility can be implemented at the time ‘sale’ to increase the tendency of shopping.



Amazon has wide range of products but it should work on improving its after-sales service by
tweaking some of its customer relations policies & by better training of their customer agents.



Amazon should improve the product visibility, description & display to make the shopping
experience more intuitive.



Flipkart has good service quality but should work on lowering its product cost to be more
competitive.



Flipkart should focus on increasing the variety of products available for all social & demographic
groups.

78
8.7.2 CONCLUSION
This research shows that online shopping is having very bright future 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. Online
shopping even after gaining popularity won’t completely eliminate traditional shopping. There are
still areas where we prefer to go into a shop and select items. The advent of plastic money and the
tremendous usage of debit and credit cards have brought shops from around the world to the tip of
customers’ finger or to the website. But there’s no going back, and online shopping will become an
even more crucial part of our lives, growing more sophisticated with each passing year. Over all the
factors from the internet that influenced or prevented online consumer behaviour and attitude need
to be carefully concerned by the online retailers, who can utilize the appropriate marketing
communications to support the customers purchase decision making process and improve their
performance.

79
9. REFERENCES
LITERATURE:
 Brassington, F. and Pettitt, S. (2000),Principles of Marketing,(2nd edn),Edinburgh Gate, Pearson
Education Limited.
 Chisnall, M. P. (1994)Consumer Behaviour,(3rd edn), Maidenhead, McGrawHill Companies.
 Christensen, L., Engdahl, N., Grääs, C. and Haglund, L. (2001)Marknadsundersökning – en handbok,
(2nd edn), Lund, Studentlitteratur.
 Hollensen S. (2004)Global marketing – A Decision Oriented Approach, (3rdedn), Edinburgh Gate,
Pearson Higher Education.
 Jobber, D. and Fahy J. (2006)Foundations of Marketing,(2nd edn),Maidenhead, McGraw-Hill
Education.
 Kotler, P. and Armstrong, G. (2007)Principales of Marketing,(12th edn),Upper Saddle River, Prentice
Hall.
 Kotler, P. and Keller, L. K. (2006),Markating Management,(12th edn), UpperSaddle River, Prentice
Hall.
 Luhmann, N., (1979),Trust and Power, New York, Wiley.
 Luhmann, N., (1993),Risk : a sociological theory,New York, de Gruyter cop.
 Saunders, M., Lewis, P. and Thornhill, A. (2007)Research Methods forBusiness Students,(4th edn),
Edinburgh Gate, Pearson Higher Education.
 Vesterby, T. and Chabert, M. (2001)E-marketing,Viby J, Jyllands-PostenErhvervsbogklubb.
ARTICLES AND REPORTS:
 Allred, R. C., Smith M. S. and Swinyard, R. W(2006), ‘E-shopping loversand fearful conservatives: a
market segmentation analysis’,InternationalJournalof Retail & Distribution Management34: 4/5, 308-
333.
 Brengman, M., Geuenes, M., Weijters, B., Smith, M. S. and Swinyard R. W.(2005), ‘Segmenting
Internet shoppers based in their Web-usage-relatedlifestyle: across cultural validation’,Journal of
Business Research58, 79 – 88.
 Constantinides, E. (2004) ‘Influencing the online consumer’s behavior: theWeb experience’,Internet
Research14: 2, 111-126.
 Goldsmith, E. R. and Flynn, R. L. (2004) ‘Psychological and behaviouraldrivers of online clothing
purchase’,Journal of Fashion Marketing andManagement,8:1, 84-95.
9.1 BIBLOGRAPHY
 Google.com

80

 Wikipedia

www.flipkart.com/slideshare
www.amazon.in/slidshare
http://www.thehindu.com/business/Industry/govt-permits-100-per-cent-fdi-in-online-
market-places/article8409495.ece
 Literature review on online retail – pdf file
www.slideshare.com/consumer_behaviour_in_online_shopping
www.slideshare.com/consuer_behaviour_towards_two_online_retail_marketers
9.2 APPENDIX
The Questionnaire
1. What is your Gender? *
Male
Female

81
Transgender
2. Which category best describes your age? *
<=20
21-25
25-33
34-41
42>=
3. Which area you belongs to? *
Rural
Urban
4. What is your occupation/ Employment status? *
Student
Professional
Government Employee
Self Employed
Other:
5. Which category best describes your disposable income? *
< 5000
5000-6999
7000-8999
9000-10999
11000-12999
>= 13000
6. Do you have your own internet connection? *
Yes
No
7. Have you ever done online shopping *
Yes

82
No
8. What motivates you to buy Online? *
Easy payment
No hidden cost
Wide range of products
No travel to shop
9. Do you feel that the online marketers are providing competitive prices? *
Yes
No
Cant say
10. What products you buy on internet? *
Books
Music CD's
Clothing
Mobiles and Acessories
Personal and Healthcare
11. Which of the following stores have you visited online? *
e-bay
Amazon
Flipkart
letsbuy
Myntra
Other:
12. What factors help you to decide which site to use for online shopping? *
Amazon
Flipkart
Other _____________________
13. How do you make your payments on internet ? *

83
Debit/ credit card
Internet banking
Paypal
GoogleWallet
Cash-on-Delivery
14. How is your experience with your chosen site? *
1 2 3 4 5
Very Bad Very Good
15. What is your future expectations with the site? *
1 2 3 4 5
Very Bad Very Good
16. How much time do you spend online daily? *
< 30 min
1-2 hours
2-5 hours
> 5 hours
17. How much percentage of your online time consists of online shopping? *
< 20%
20-40%
40-60%
> 60%
18. Are you saving money while purchasing items online? *
1 2 3 4 5
Not at all Always
19. Do you compare price through different price comparison websites? *
1 2 3 4 5

84
Negative Positive
20. Do you find it secure to purchase things online? *
1 2 3 4 5
Negative Positive
21. Do you trust the internet retailer? *
1 2 3 4 5
Negative Positive
22. Is purchasing online saves time compared to purchasing items on a store? *
1 2 3 4 5
Negative Positive
23. Is purchasing online involves less effort compared to purchasing items at a store? *
1 2 3 4 5
Negative Positive
24. Do you feel that online shopping is better than shopping at brick and mortar store? *
Yes
No
Cant say
25. How you often you think we can improve our site?

85
10. SUMMARY
This Project report is based on the Secondary Data which have been merged by the two
reports, to make a new project report which fits with the topic chosen i.e., “Consumer
Behaviour In Online Shopping And Comparison Between Two Top Online Retail Marketers.”
In this there is firstly the Introduction about online marketing, and how the consumer prefer
to use online markets, for their shopping. There is the Analysis about how much percentage
of percentage, whether they are teenagers, adult, child, businessman, household prefer the
online shopping, and what perception does the consumer puts upon the online shopping
market.
To make the topic more interesting there is also the comparison between the two top
‘Online Retail Marketer’ i.e. “Flipkart And Amazon”. In which there is the Introduction of
both the industries, and what is there distribution channel. As in this study there is also
described that which industry is more suitable with the need of the consumer, And towards
the which Industry the Consumer are most likely to purchase. As in study both the
Industries are having good results, but the consumer mostly prefer the Flipkart than
Amazon, as Flipkart has some better credentials that matches the consumers wants.

Consumer behaviour in online shopping and comparison

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