assignment

research paper on consumer behaviour towards online shopping in india

A Study on Consumer Behaviour towards Online Shopping In Kolkata

IOSR JOURNAL OF BUSINESS AND MANAGEMENT

12 Pages Posted: 20 Sep 2021

Dr. Supriyo Patra

St. Xavier's College (Autonomous) Kolkata

Date Written: September 17, 2021

Online shopping is the most recent phenomenon in the Indian online space. Men and women of all ages visit the e-commerce websites regularly and buy the necessaries of life. The objective of the study is to understand the consumer awareness and preferences towards various products available online, to understand the frequency of online shopping and the amount spent on a single purchase and to understand the factors affecting online purchase and the choice of payment gateway. The study is empirical in nature and cross-sectional research design was applied and the primary data was collected through a structured questionnaire. A sample size of 200 respondents was taken, who are at present living in Kolkata mainly in areas like Park street area, Russel street area and some parts of Bhawanipore area by applying judgemental and convenience sampling method. This study analyses the various factors that affect the online shopping behaviour of the consumers by using Buyer Black Box Model which is like our mind processing various stimuli’s it receives and helping it in coming to a conclusion. Here we had studied the attitude, behaviour and intentions shown by the consumers when they decide to buy products online by using Hierarchy of Effects Model. Moreover a separate gender-wise differentiation was made to know how Male and Female reacts to a particular category of product comprises of Apparels, Beauty products, Household items, Electronic Gadgets etc. A preference measurement check was made to know the perception of consumer regarding the top e-commerce website i.e. FLIPKART, AMAZON, SNAPDEAL, JABONG, SHOPCLUES and others. The major reason behind their perception was based on various discounts, easy payment facilities, easy return facility, timely and express delivery. “Reduced search cost”, “Discounts” and “Ease of purchase” were the top three aspects that generally people look upon while purchasing online, and a thorough study was made among the people in Kolkata. In future this study can be done among different demographic profile & in other cities.

Keywords: Awareness, Consumer Behaviour, Kolkata, Patterns and Preferences, Online Shopping.

Suggested Citation: Suggested Citation

Dr. Supriyo Patra (Contact Author)

St. xavier's college (autonomous) kolkata ( email ).

30, MOTHER TERESA SARANI KOLKATA, 700016 India

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Consumer Behaviour Towards Online Shopping

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Consumer buying behavior towards online shopping: An empirical study on Dhaka city, Bangladesh

1. Introduction

2. methodology, 3. literature review, 4. findings and discussion, 5. conclusion, additional information, research article.

The World Wide Web has propelled in no small extent of changes in the attitude and behavior of people all over the world. Due to this blessing, online shopping has emerged which influenced the lives of ordinary citizens. Online shopping has also been started in Bangladesh, but consumers are not much habituated yet to go online shopping frequently. This study is undertaken to understand the behavior of online shoppers through a self-constructed questionnaire of 160 respondents from Dhaka city. The survey reveals that consumers shop online to save time, and for available varieties of products and services. Both male and female both have the same type of behavior towards liking and disliking factors; they like home delivery facility and dislike inability to touch and feel the product most. They acquire online shopping information from websites especially from the social network and purchase apparels, accessories mostly through cash on delivery method of payment. The most of the consumers are concern about the security of the payment system, and their overall online shopping satisfaction is mixed.

Online shopping is the easy solution for busy life in today’s world. In the past decade, there had been a massive change in the way of customer’s shopping. Despite consumers’ continuation to buy from a physical store, the users or buyers feel very convenient to online shopping. Online shopping saves crucial time for modern people because they get so busy that they cannot or unwilling to spend much time shopping.

In the twenty-first century, trade and commerce have been so diversified that multichannel has taken place and online shopping has increased significantly throughout the world (Johnson, Gustafsson, Andreassen, Lervik, & Cha, Citation 2001 ). Globally, e-commerce constituted about 2.29 trillion dollar market (John, Citation 2018 ) and expected to reach 4 trillion dollar by 2020 (eMarketer, Citation 2016 ) due to the double-digit worldwide growth in sales (15%) and order (13%) (eMarketer, Citation 2018 ) in all sorts of e-commerce such as business-to-business (B2B), business-to-consumer (B2C) (Zuroni & Goh, Citation 2012 ).

Asia Pacific region is leading the growth of online shopping as compared to the mature market such as the US, UK, Japan and European Countries. The Asia Pacific recorded massive growth, especially in China. In 2016, Asia Pacific region made about $1 trillion in online sales and majority came from China constituting about $899 billion (eMarketer, Citation 2016 ). With more and more consumers become increasingly familiar with the Internet and its benefit, online shopping is becoming popular and getting preference among a group of consumers seeking better value proposition regarding information, convenience, cost, choice. Like other young Asian citizens, youngsters in Bangladesh are experimenting with new ways of shopping that have led to the popularity and growth of online shopping in Bangladesh.

Unlike a physical store, all the goods in online stores described through text, with photos, and with multimedia files. Many online stores will provide links for much extra information about their product. On the other hand, some online consumers are an adventurous explorer, fun seeker, shopping lover, and some are technology muddler, hate waiting for the product to ship. Consequently, online consumer behavior (user action during searching, buying, using products) became a contemporary research area for an increasing number of researchers to understand this unique nature of online shopping.

The primary goal of a business is to offer product and services that best serve their consumer needs. A business which fulfills the customer needs with satisfaction very well is more successful than its competitors as satisfied buyers tend to make a repetitive purchase. Moreover, in Bangladesh, online shopping has been evolving fast and has the potential to grow exponentially in time to come, as Internet penetration reaches far and wide across the rural areas. However, it is also true that Bangladeshi people are traditionally conservative in their approach to shopping due to modernization and fast-paced life, dependence on online shopping will increase. Thus, the purpose of this study is to understand the consumer behavior towards online shopping, their liking, disliking, and satisfaction level.

To understand the consumer behavior of newly launched online shopping in Bangladesh, we have undertaken a descriptive study through a survey by forming a self-constructed questionnaire considering the research objective. A Likert five-point scale ranging from strongly agree to strongly disagree been used to collect a quick response from the respondents.

Convenient non-probability sampling method has been adopted in this study to acquire data from respondents in Dhaka city where about 50% e-commerce customers reside (Jagonews24.com., Citation 2015 ) in Bangladesh. A convenient sampling method is easy to implement and cost-effective and more common in IS research that gets higher response rate (Eze, Manyeki, Yaw, & Har, Citation 2011 ; Ritchie, Lewis, Nicholls, McNaughton, & Ormiston, Citation 2014 ). We have targeted 200 respondents belong to different age-group, student, service holder, business person and the homemaker with various experience in online shopping for a personal interview and 179 participated in the survey resulting in 90% response rate. However, after sorting 160 useful and valid responses were used for further analysis. Accumulated data were analyzed through Microsoft Excel.

Online shopping indicates electronic commerce to buy products or services directly from the seller through the Internet. Internet-based or Click and Order business model has replaced the traditional Brick and Mortar business model. More people than before are using the web to shop for a wide variety of items, from house to shoes to airplane tickets. Now people have multiple options to choose their products and services while they are shopping through an online platform.

Online shopping has unique characteristics. Huseynov and Yıldırım ( Citation 2014 ) emphasized that the lack of physical interaction tends to be the critical impediment in online retail sales followed by the privacy of individual information and security of financial transactions over the Internet. Demangeot and Broderick ( Citation 2010 ) also revealed that perceived ease of use does not affect the behavioral pattern in this case rather influenced by security and privacy issues. No relationship is built between the customer and the online shop in the presence of perceived online risk even if a customer spent hours on the Internet (Zuroni & Goh, Citation 2012 ).

Day-by-day taste, preference and choices are varying regarding different factors such as the Internet emergence. However, this development needs some more understanding related to the consumer’s behavior. Consumer behavior research identifies a general model of buying behavior that depicts the processes used by consumers in making a purchase decision (Vrender, Citation 2016 ). Those designs are paramount to the marketer as they can explain and predict consumer purchase behavior.

Jarvenpaa, Todd, Jarvenpaa, and Todd ( Citation 1997 a) proposed a model of attitude, behavior, and shopping intention towards Internet shopping in general. The design includes several indicators classified into four broad categories like product value, quality services offered through the website, the shopping experience, and the risk perception of the online shopping. Chang, Cheung, and Lai ( Citation 2005 ) studied categories of variables, which drive online shopping activity. In their study, they divided the features into three broad categories. Perceived characteristics of the web sale channel are the first one which includes risk, online shopping experiences, advantage, service quality, trust. The second category is a website and product features which are risk reduction measures, site features, and product characteristics; and the last group is consumer characteristics. Various types of features, demographic variables, consumer shopping orientations, consumer innovativeness and psychological variables, computer, Internet knowledge, and usages drives consumer characteristics.

Consumer attitudes toward online shopping usually been determined by two factors; one is trust, and another is perceived benefits (Hoque, Ali, & Mahfuz, Citation 2015 ). Therefore, trust and perceived benefits seem to be the critical conjectures of consumer behavior toward online shopping (Al-Debei, Akroush, & Ashouri, Citation 2015 ; Hajli, Citation 2014 ). Moreover, information quality, merchandise attribute, website design, transaction capability, payment, security/privacy, delivery, self-consciousness, state of mind, the consumer’s time sense and customer service are strongly predictive of online shopping satisfaction (Katawetawaraks & Wang, Citation 2011 ; Liu, He, Gao, & Xie, Citation 2008 ; Mudambi & Schuff, Citation 2010 ; Novak, Hoffman, & Yung, Citation 2000 ; Shergill & Chen, Citation 2005 ; Sorce, Perotti, & Widrick, Citation 2005 ).

In Malaysia, information quality and purchase quality linked with the post-purchase quality are statistically significant in the case of customer satisfaction (Vegiayan, Ming, & Harun, Citation 2013 ). However, brand image and quality of products, goodwill of country of origin also influence significantly on purchase intention of online products (Haque et al., Citation 2015 ). Moreover, online data extraction about the products, services along with the historical data for individual customers is ingredient element to choose an online store or make re-purchase decision (Liao, Chu, Chen, & Chang, Citation 2012 ).

Koufaris ( Citation 2002 ) identified that both shopping enjoyment and perceived usefulness (website) strongly predict the intention to re-purchase over online. On the contrary, Lee and Lin ( Citation 2005 ) found shopping enjoyment can increase the intent of new customers but does not influence customers to return. In fact, the web store which utilizes value-added mechanisms in the search engine and providing customers a challenging experience may increase customers’ shopping enjoyment. Furthermore, if there are more often customers back to the web store, their shopping enjoyment then be determined by their involvement with the product (Marios Koufaris, Kambil, & LaBarbera, Citation 2001 )

research paper on consumer behaviour towards online shopping in india

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Table 1. previous study results of consumer behavior of online shopping, table 2. advantages of online shopping, table 3. disadvantages of online shopping, 3.1. advantages of online shopping, 3.2. disadvantages of online shopping.

Despite the success of buying through online shopping store, there are still some difficulties that most people always complain. Those are giving in the following table:

3.3. Overview of online shopping in Bangladesh

Increasing diffusion of ICTs especially the Internet forcing the global business community to move towards e-business. Online shopping gives consumers the access to the world market, enabling them to compare price across the region and various sites, find out whether price varies by order fragmentation, get awareness about alternative products (Jagonews24.com., Citation 2015 ). Consequently, the sellers ensure that they portrayed themselves in the cyber world through websites and portals. The sellers like consumers also benefit from the increase and more efficient access to the global market through the Internet.

Over the last several years, UNCTAD (United Nation Center for Trade and Development) has emphasized the importance of e-commerce, especially online shopping for developing countries (UNCTAD, Citation 2017 ). To facilitate developing countries to transition into all sectors of e-commerce, UNCTAD has special programs. UNCTAD has also developed rules and guideline for all types of a global e-commerce transaction. The private sector in Bangladesh should be well prepared to meet the requirement and expectation of the customer and also stand out in the competition against rivals from home and abroad because of increasing globalization (Khan, Citation 2014 ).

In such a scenario, businesses need to automate their internal processes with those of ICTs to become increasingly competitive and efficient in a global context. Also, businesses have to have adequate presence and participation in the cyber world. Particularly, these two issues are becoming essential for Bangladeshi corporate sector ( Dhaka Tribune , Citation 2015 ).

3.3.1. Emergences of online shopping in Bangladesh

Although e-Commerce operation first started in late 90s to deliver gifts to Bangladeshi friends and family members by NRBs (Mohiuddin, Citation 2014 ), the first real local e-commerce or m-commerce operation was launched by CellBazaar.com in 2006 through WAP service accessed only by mobile phones (Zainudeen, Samarajiva, & Sivapragasam, Citation 2011 ).

The growth rate of e-commerce was prolonged in Bangladesh from 2000 to 2008. During that period, there were some e-commerce websites, but there was no system for an online transaction (Mahmood, Citation 2015 ). Hardly few people knew about those sites for the high cost of Internet, telephone connections, few credit card holders (Hasan, Citation 2014 ) and lower penetration rate. The opening up of online payment systems, mobile payment systems, inter-banking payment gateways in the 90s by Bangladesh Bank propelled the growth of e-commerce in Bangladesh.

Table 4. Internet usages and population statistics

Table 5. the internet subscribers, table 6. gender of the respondents.

According to BTRC, the total number of Active Internet subscriber has reached 62.004 million at the end of April 2016.

There is an increasing maturity in the way Bangladeshi people use the Internet. It is a standard curve. The online user typically starts by using email, social networking gradually moves on to browsing for news, information, entertainment, and finally, graduate to do shopping and conducting business online (Khan, Citation 2014 ). In the UNCTAD ( Citation 2017 ) B2C e-commerce index report, Bangladesh achieved the rank of 103 among 144 countries studied; however, Bangladesh is also in the biggest annual index ranking changing status (more than 10%).

Today there are more than 7000 e-commerce firms are operating through the website and social media and among these most dominating are chaldal.com, ekhanei.com, bikroy.com, rokomari.com pickaboo.com and daraz.com (Islam, Citation 2017 ). Interestingly, those trends are not limited only to Dhaka, the capital city, but semi-urban and to an extent, rural areas as well ( Dhaka Tribune , Citation 2015 ). There are about 2.55 million online shoppers, who are about 2% of the total population of Bangladesh (UNCTAD, Citation 2017 ). Internet users in Bangladesh spend over Tk 7184.018 crore in online shopping each year. A Google research paper titled “Research Insight: Emerging Trend as Bangladesh goes Digital” found that 22% of the countries total Internet users shop online and spend Tk 7594.10 annually on an average ( Dhaka Tribune , Citation 2015 ).

According to the study of Kaymu.com in 2015 (Jagonews24.com., Citation 2015 ), Dhaka (35%), Chittagong (29%), and Gazipur (15%) are the primary zone for online shopping traffic of Bangladesh. Of the total traffic, new online shopping visitor stands at 49%, while returning visitor is 51%. 71% of online shoppers have used either a desktop or a laptop, followed by mobile phone and tablets. Google and Facebook are primary click-through points for online shoppers. About 69% of the online shoppers use the Windows operating system for online shopping.

Observing the popularity, foreign investors are coming to the Bangladeshi market, for example, recently Chinese giant Alibaba group bought daraz.com and bKash – a mobile payment system to operate in Bangladesh (Ovi, Citation 2018 ). However, analyzing customer behaviors is crucial especially in the case of online shoppers who do not get the touch and feel of the actual product during purchase. The findings of this research may shed light on this issue.

4.1. Demographics of the respondents

The respondents were categorized into several factors, such as gender, age, occupation, income.

4.1.1. Gender

Among the respondents, we found 62.5% were male, and 37.5% were female (see Table 6 ).

Figure 1. Age of the respondents.

research paper on consumer behaviour towards online shopping in india

4.1.3. Occupation

Figure 2. Occupation of the respondents.

research paper on consumer behaviour towards online shopping in india

4.1.4. Income

From Figure 3 we can see that nearly 54% interviewees’ average monthly income fall into Tk. 0–10,000 categories, 15.62% respondents’ monthly income was into Tk. 10,001–20,000, 14.38% earn Tk. 20,001–30,000, and 16.88% of the interviewees have more than Tk. 30,000 income per month.

4.1.5. Experiences of online shopping versus online shopping frequencies

About 41.88% of the respondents have less than 0–1 years’ experience of online shopping, 36.25% of them have 1–2 years’ experiences, 14.37% of them have 2–3 years’ experiences and 7.5% of the respondents have experiences in online shopping for more than 3 years. Among those respondents, 57.5% of them occasionally shop online, 28.75% do shop once every month, 10% of the respondents shop online fortnightly, and only 3.75% of them buy online weekly.

Figure 3. Income of the respondents.

research paper on consumer behaviour towards online shopping in india

Figure 4. Experience in online shopping versus online shopping frequencies.

research paper on consumer behaviour towards online shopping in india

4.1.6. Sources of online shopping information

Figure 5. Sources of online shopping information.

research paper on consumer behaviour towards online shopping in india

Additionally, website advertisement, friends and family members are the primary sources of online shopping information for the online consumer. This result confirms the findings of Hajli ( Citation 2014 ) and Alsubagh ( Citation 2015 ). Publicity through various websites (primarily Facebook) will be more beneficial for organizations to promote their online shopping sites and products.

4.1.7. Reasons for choosing online shopping

Both male and female respondents assured that there are specific reasons for choosing online shopping. 38.75% respondents (26.25% male, 12.5% female) mentioned saving time is their primary reason for choosing online shopping and about 29.38% of the interviewees prefer online shopping because of availability of the varieties of products. Nearly, 19% of the respondents prefer online shopping because product comparison is much easier for online shopping and 13.13% choose for a comfortable reason (see Figure 6 ).

Time-saving and available varieties of products are the main grounds for shopping online. All these four factors motivate an online shopper to buy over the Internet. Therefore, companies should design strategies and develop varieties of products to attract and retain online shopper. This findings also confirm the findings of Gong et al. ( Citation 2013 ) and Hoque et al. ( Citation 2015 ), where the respondents found to adopt e-commerce for the usefulness.

4.1.8. Preference for product/service

Figure 6. Reasons for choosing online shopping.

research paper on consumer behaviour towards online shopping in india

Figure 7. Preference for product/service for online shopping.

research paper on consumer behaviour towards online shopping in india

Apparels, accessories, and online ticketing are the main three categories that are bringing about online shopping culture among online shoppers. Online shopping tends to grow in the coming years as consumers want to buy more in the future. Merchants should bring out innovative ways so that there is a growth in other categories of goods and services.

4.1.9. Factors for liking online shopping

Figure 8. Factors for liking online shopping.

research paper on consumer behaviour towards online shopping in india

Both male and female respondents have the same attitude towards liking factor of online shopping. Both like home delivery facility factor most. However, female likes discount offers more than the male does. These findings confirm the study of Rastogi ( Citation 2010 ) and Katawetawaraks and Wang ( Citation 2011 ), where the online shoppers also preferred the online shopping for ease of use and products’ variety.

4.1.10. Factors for disliking online shopping

Figure 9. Factor for disliking online shopping.

research paper on consumer behaviour towards online shopping in india

Among the female respondents, 45% dislike online shopping for lack of inability to touch and feel factor. 23.33% dislike the high price of the products and services. 16.67% and 15% female respondents hate poor return policy and lack of after sale service factor most respectively.

Inability to touch and feel the product or trust is still the primary disliking factor about online shopping, or we can say the primary barrier to online shopping which confirms the study of Chen and Barnes ( Citation 2007 ), Heijden et al. ( Citation 2003 ) and Huseynov and Yıldırım ( Citation 2014 ). The high price of goods and services is another big issue for the consumers. Marketers need to develop better return policies, improve the products quality and after sale services and charge a reasonable price to encourage online shopping.

4.1.11. Modes of payment preference

Figure 10. Modes of payment in online shopping.

research paper on consumer behaviour towards online shopping in india

Figure 11. Payment system security.

research paper on consumer behaviour towards online shopping in india

Figure 12. Online shopping satisfaction.

research paper on consumer behaviour towards online shopping in india

4.1.12. Payment system security

From the survey it is found that (Figure 11 ) none of the respondents highly agreed to the fact that the payment system for online shopping is highly secured in Bangladesh. 15% of the interviewees agreed to the fact that online payment system is much secured where 27.5% of respondents disagreed. 51.87% of respondents remain neutral about the fact, and 5.63% profoundly disagreed.

Above all, secured payment is a significant concern in Bangladesh. Most of the consumers believe that the payment system for online shopping is not secured. Usually, they do not prefer to use their credit or debit card while shopping from online sites. Companies should introduce new improved technologies to create and gain confidence in the payment system among the consumers.

4.1.13. Online shopping satisfaction

50% of regular online shoppers are satisfied whereas 17.5% are dissatisfied. 28.12% of them are neither satisfied nor dissatisfied. Only 3.75% of regular online shoppers are highly satisfied while 0.63% is highly dissatisfied (see Figure 12 ).

Satisfaction level plays a significant role in online shopping. Satisfied consumers tend to shop more frequently online. After analyzing data, we found that half of the respondents are satisfied with their overall online shopping experience. A note should be taken that only 3.75% of the online shopper is highly satisfied which shows that there are still concerns, which hinder the consumer from using online shopping frequently. Companies should undertake measures so that dissatisfied and neutral category of online shoppers can move towards satisfied or highly satisfied category and shop online more often and it has to be done through better information quality, quality service in during purchase and post-purchase (Vegiayan et al., Citation 2013 ).

Online shopping is more and more driven by the ICT infrastructure development, online payment systems and the Internet penetration rate in Bangladesh. Earlier studies showed that unlike brick and mortar shopping behavior, online shopping behavior is influenced by net connectivity, website esthetics (Constantinides, Citation 2004 ), security, customers’ experience, age and learning curve, etc. Studying these unique characteristics of online shopping and consumer behavior of online shoppers would benefit the tech-entrepreneurs and policymakers to craft their strategies properly for the market. This study empirically reveals the consumer behavior of online shoppers in Bangladesh.

Bangladeshi online shoppers are young (mostly below 40 years) similar to other parts of the world. They do online shopping because it saves time, offers home delivery, provides ease in shopping and offers more variety of products for apparels, accessories, and ticketing than that of brick and mortar stores. They mostly rely on price and their experience as the basis of the quality judgment of items in online shopping and for payment system they prefer cash on delivery option. Most of the shoppers get the information primarily from Facebook advertisements which is pursued by friends and family by following their “word of mouth” communication. However, privacy and inability to touch and feel are the most disliking factors for online shoppers. These findings of our study have both theoretical and practical implications.

5.1. Theoretical implications

This study provides a foundation for the future researchers in studying the consumer behavior of Bangladeshi online shoppers. Further research can be possible by increasing sample size including a rural population that may reflect the entire scenario of consumer behavior of online shopping in Bangladesh. Furthermore, the variables that have been identified in this study may not be sufficient rather more variables are to be considered in future research. Researchers may also look for factors that influence the online shopping behavior, customer satisfaction, and loyalty.

5.2. Managerial implications

The findings of the paper provide managers guideline about the attributes that must be included in their products and service quality, mode of delivery channel, payment gateway, security, trustworthiness, and pricing strategy. Managers should choose the social network for advertisement. As, until now the online payment systems through credit card are not that much available, managers must maintain the cash on a delivery program to gain trust among the customers. To elevate the touch and feel concern, managers can send alternative products to the customer to choose from options and pay after they prefer one. If the managers consider these factors, they might have a competitive advantage in the market.

Source: eBay ( Citation 2013 ) and Jain ( Citation 2016 )

Source: eBay ( Citation 2013 ) and Hub pages ( Citation 2015 )

Note: GDP in US dollars.

Source: International Monetary Fund (Internetworldstats.com, Citation 2015 )

Note: Subscriber in a million.

Source: BTRC ( Citation 2018 ).

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research paper on consumer behaviour towards online shopping in india

Notes on contributors

Mohammad anisur rahman, md. aminul islam, bushra humyra esha, nahida sultana, sujan chakravorty.

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IJERT

NCIETM - 2017 (Volume 5 - Issue 11)

A study on customer perception towards online shopping.

research paper on consumer behaviour towards online shopping in india

Creative Commons License

Abstract Internet has changed the traditional way of customers shopping and buying goods and services. In this rapidly changing age and time, going digital is the new trend. Every brick and mortar shop is now trying to create its online presence to stay ahead of the competition. Consumers use the internet not only for online shopping, but also to compare prices, product features and after sale service facilities. Online shopping also known as e-shopping is a form of electronic Commerce which allows Consumers to directly buy goods or services from a seller over the Internet using a web browser. Customers are purchasing the goods and services online because it saves time, and more selection, for goods is available as compare to offline shopping. And most important thing there is no need to go anywhere one can receive goods at his / her home. The main objective of this research study is to explore & investigate consumer perception towards online shopping. The present research paper has used Quantitative method to study the consumer preferences towards online shopping. The data was collected through Questionnaires. This research also aims to find out the key factors like age, gender, and various payment method that affects the consumer behavior towards online shopping.

Index Terms Age, cash on delivery, debit card, credit card, price

INTRODUCTION

Online shopping refers to the shopping behavior of consumer in an online store or a website used for online purchasing purpose (Monsuwe et al. 2004). Online shopping is the consumers shopping behavior to shop online. The people who find it easy to use, useful and enjoyable can accept online shopping. Online shopping has experienced a rapid growth during the recent years due to its unique advantages for both consumers and retailers, such as shopping at round the clock facilities, decreasing dependence to store visits, saving travel costs, increasing market area and offering a wide range of products. Online shopping is the consumers shopping behavior to shop online. Not only in urban area but also in villages also people are loving to do shop online.

CUSTOMER PREFERENCE TOWARDS ONLINE SHOPPING

Stupendous & enormous expansion of Internet in India, the people are taking interest in online shopping. They can do online shopping while they are sitting in their homes and

work place, after getting good service response, quality of product, competitive price and on time delivery through online shopping, they always try to recommend their friends and family members for online shopping.

At present More and more customers are doing shopping online because in urban area Eg. in NCR itself mostly people are working that s why they are not having so much time to go for offline shopping, they used to prefer online shopping. The convenience of online shopping is the main attraction of customers. Unique online payment system offer easy and safe purchasing from other individuals. Various demographic factors like age, income, gender, education background also affect the customer behavior. Earlier consumer used to pay with cash but now a days number of payment options are available for like debit card, credit card, internet banking and cash on delivery also. These payment methods also makes online shopping easy.There are various online promotional tools which attract most of the customers to shop online. In the era of internet technology, wi-fi services and smart-phone gadgets provides so much facility for the consumers to do shopping from anywhere. Many retailers engage their customers in impulsebehavior through the usage of visuals and information and through the usage of colored pictures and images of the entire product and offered discount on various products. In description of the entire product and service, online promotions can serve an excellent purpose.

Advantages of online shopping:-

Online shops give us the opportunity to shop 24/7, and also reward us with a no pollution shopping experience.

Cheap dealsand better prices are available online, because products come to you direct from the manufacturer or seller without middleman being involved.

You can shop from retailers in other parts of the country, or even the world, all without being limited by geography. The choices online are amazing.

Many times, when we opt for conventional shopping, we tend to spend a lot more than planned. There are other outside expenses on things like eating out, transportation, and let's not forget impulse buys! So there are less expenditure incurred in online shopping

Comparing and researching products and their prices is so much easier online

No crowd is their when you prefer to do shop online.

Disadvantages of online shopping:-

If an item comes damaged or not as described, you will want to return the item or be refunded your money. Depending on where you purchased your item, there can be different policies for refunds and returns;

Unlike buying at retail stores, you are able to use the product instantly after you buy it, which can be satisfying. However, online shopping requires patience to wait for the item to arrive at your door step about 2 to 3 days or even longer depending on the location you've ordered it from.

Lack of touch-feel-try creates concerns over the quality of the product on offer. Online shopping is not quite suitable for clothes as the customers cannot try them on.

Customers have to be careful in revealing their personal information. Some of the e-retailers are unreliable.

LITERATURE REVIEW

Kim and Park (1991) stated that the consumers spend more time online for information search and they also found that the Internet is easily accessible Price which is a part of the marketing mix is a factor used to stimulate the consumer and is also communicator, to negotiate and a competitive weapon. The consumer can use price as a means to compare products, judge relative value for the money, and the judge quality of products. It is estimated that this factor has a considerable influence on the consumers during their online shopping Brassington & Pettitt (2000).

Wang and Emuian (2004) defined online shopping as buying stuff through the internet. The items are usually sent to the buyers door step that you have purchased online.

Sharma and Mittal (2009) said that India is showing tremendous growth in the Ecommerce, in their study Prospects of e-commerce in India. Online shopping shows unlimited potential in India with the population of millions of people. E-commerce has become an integral part of our daily life and it is a common word in Indian society with websites providing a number of goods and services. Some of these portals provide specific product along with its allied services. Solomon, 1998 in his study Consumer behavior is the study of the processes involved when an individual selects, purchases, uses or disposes of products, services, ideas, or experiences to satisfy needs and desires.

RESEARCH METHODOLOGY

The study was to examine the attitude of the 100 of people to fill questionnaire on online shopping based on various questions. Data was gathered through different population of various people from different institutions and from the general public with different professions. Questionnaires were circulated among 100 teachers & people working in MNCS AND from the general public inDelhi/NCR region. They ave been asked to give the answer. Various suggestions for the study of the conclusion of reduction in delay strategy and

consumers online decision to support the hesitation near them. It should be ensured that responses are the validity of the research.

Illustrates this survey results 70 % of male and 30 % of female respondents participated in the online shopping survey. At the same time as 25 % of the respondents in the survey plunge into the category of 0-30 years age, 60 % participants plunge into the category of 30-55 years age group, while rest of the respondents 15% plunge into the category of above 55 years age. The results of the survey reveal that investigation on online shopping attracting mostly young population age group of 30-55 years old. 90% of the respondents belonged to working class.

CHART 4 :IF YOU NEVER HAD ONLINE SHOPPING PLEASE SPECIFY THE REASON

According to the survey results chart 2 show that Price is the most important factor that affects users when they shop online as per this survey. According to the survey results about 55% of the respondent replied that they price is the important factor that attract users when they shop and 25 % people said that display and how a website used to show their product online that attract them when they shop online and 10

% people said that they used to prefer product according to brand name.

I DON KNOW ABOUT ONLINESHOPPING

RISK OF CREDIT CARD OR DEBITCARD TRANSACTION

INTERNET ILLITRACY

ANY OTHER REASON

Online shopping is growing rapidly in India. According to the survey results chart 3 show that about 65% of the respondent replied that they preferred amazon while doing online shopping and 15% and 20% respondents said that Jabong and any other company respectively.

According to the survey results chart 4 show that 29% people said that they feel it risky while doing payment in online shopping. 14% people said they don t have proper knowledge of internet. 57 % people said there is any other reason thats why they don prefer online shopping.

According to the survey results chart 5 show that 45 % people said that they prefer to pay by using debit card , 25% and 20% respondents said that prefer to pay cash on delivery and credit card respectively . 5 % respondent said they use to prefer any other mode of payment.

Online shopping is extremely convenient and has become extremely popular. Consumers have shown different buying behaviors when shopping online as compared to when they are shopping in a physical store. Online shopping is very convenient and beneficial. People who come from villages and are living in cities are prone to use online options. Service class is more interested in doing shopping online. Customersage,online transaction security, personal

privacy, convenience, price transparency, accessibility, time saving, trust etc. are several factors which doesnt remain same all the time but they cannot be ignored. Customer should be given a free orientation for how to use debit card, credit card and inter banking fund transfer so that most of people can use digital mode of payment while doing online shopping and they would not feel any risk with online transaction.

The online promotion tools are very effective in reaching out to the target audience, in the era of internet technology, wi-fi services and smart-phone gadgets as they are perceived to be effective, informative and credible. To engage the audience in an impulsive behavior online promotions have the potential. Through the usage of visuals and information the beauty of technology can be seen so the companies should use this feature of internet through the usage of colored pictures and images of the entire product. In description of the entire product and service, online promotions can serve an excellent purpose. Since all types of products and services have the potential to be promoted and to be sold over the internet, companies must ensure that they promote their products on the internet effectively.

Limitations:

It is always a matter of chance, how much true information is provided by the respondents. Their opinion may be biased by the virtue of their or their known ones perception or experience. Sometimes respondents dont really understand what specific information would infer. The study is conducted only in restricted areas. So, it might not give the exact picture of the Customer behaviour in NCR.

Respondents could be biased sometimes when information is being extracted.

Because of time constrain, a sample size of only 100 respondents was being included in the study. This number is not sufficient to reflect the exact picture.

Sharma and Mittal (2009).Prospects of ecommerce in India, Asian Journal of management and research. 3(2), 396-408

Kim and Park (1991) Research paper

Solomon (1998).A study of factors affecting online shopping behavior of consumers, International Journal of Scientific and Research Publications 3(6), 201-212

Kotler, P. and Armstrong, G. (2000). Marketing Management (5th

Ed.), Prentice-Hall: Pearson.

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