Document Sample


To study the consumer perception about on-line
shopping in MUMBAI.


1) To find out the factors which consumer consider
  before shopping
2) To find out what are the advantages and

  disadvantages of online shopping.

                     LITERATURE REVIEW


Perception is the process by which we receive and interpret information
from the world around us. The world around us consists of various kinds
and levels of physical energy. Our knowledge of the world comes through
our sense organs, which react to these energies. Certain wavelengths of
electromagnetic radiation stimulate our eyes. Our ears sense certain kinds
of mechanical vibrations in the air. Our noses and tongues are sensitive to
certain chemical stimuli. Sense organs in our skin respond to pressure,
temperature changes, and various stimuli related to pain. Sense organs in
our joints, tendons, and muscles are sensitive to body movement and

The sense organs change the various environmental energies into nervous
impulses, which go to the brain. Through the psychological process of
perception, the patterns of energies become known as objects, events,
people, and other aspects of the world.

The process of perception does not reveal objects and events of the world.
We see light and colour, but there is no light or colour in the
electromagnetic waves that stimulate the eyes. In the same way, there is no
music or noise in the vibrations that stimulate the ear. The brain organizes
and interprets nervous impulses from the eyes as light and colour, and
impulses from the ears as sound. Together, the sense organs and the brain

transform physical energy from environmental stimuli into information
about the events around us.

When looking at the illustration on this page, one may first see only a
complicated pattern of dark and light areas. As one studies the pattern,
one’s first perception may change, particularly if you are told that a bearded
man is in the picture. After one have seen the man, it will be almost
impossible not to see him when one look at the picture again.

This picture emphasizes two important points about perception. First,
stimulation of the sense organs alone does not determine the nature of what
is perceived. Second, perception is a dynamic process of "working on"
sensory data to produce perceptual objects and events. The "work" involves
many physical, physiological, and psychological factors.

History of the study of perception

The subjective nature of perception, and hence of cognition, has

attracted the attention of philosophers since antiquity, for example in

the qualia which have been known since the Sufi thinkers, or in the

extreme idealism of George Berkeley.

Perception is one of the oldest fields within scientific psychology,

and there are correspondingly many theories about its underlying

processes. The oldest quantitative law in psychology is the Weber-

Fechner Law, which quantifies the relationship between the intensity

of physical stimuli and their perceptual effects. It was the study of

perception that gave rise to the Gestalt school of psychology, with its

emphasis on holistic approaches.

Perception and reality

Many cognitive psychologists hold that, as we move about in the

world, we create a model of how the world works. That is, we sense

the objective world, but our sensations map to percepts, and these

percepts are provisional, in the same sense that scientific

hypotheses are provisional (cf. in the scientific method). As we

acquire new information, our percepts shift. Abraham Pais'

biography refers to the 'esemplastic' nature of imagination. In the

case of visual perception, some people can actually see the percept

shift in their mind's eye. Others who are not picture thinkers, may not

necessarily perceive the 'shape-shifting' as their world changes. The

'esemplastic' nature has been shown by experiment: an ambiguous

image has multiple interpretations on the perceptual level. Just as

one object can give rise to multiple percepts, so an object may fail to

give rise to any percept at all: if the percept has no grounding in a

person's experience, the person may literally not perceive it.

This confusing ambiguity of perception is exploited in human

technologies such as camouflage, and also in biological mimicry, for

example by Peacock butterflies, whose wings bear eye markings

that birds respond to as though they were the eyes of a dangerous


Cognitive theories of perception assume there is a poverty of

stimulus. This (with reference to perception) is the claim that

sensations are, by themselves, unable to provide a unique

description of the world. Sensations require 'enriching', which is the

role of the mental model. A different type of theory is the ecological

approach of James J. Gibson. Gibson rejected the assumption of a

poverty of stimulus by rejecting the notion that perception is based in

sensations. Instead, he investigated what information is actually

presented to the perceptual systems. He (and the psychologists who

work within this paradigm) detailed how the world could be specified

to a mobile, exploring organism via the lawful projection of

information about the world into energy arrays. Specification is a 1:1

mapping of some aspect of the world into a perceptual array; given

such a mapping, no enrichment is required and perception is direct.

Factors affecting perception

Various factors influence what and how we perceive. Our

perceptions are influenced by the ways our bodies are structured

to receive and process stimuli from the environment. Our

perceptions also reflect our emotions, needs, expectations, and


Receptors. Each sensory system, such as vision, hearing, or

touch, has its own specialized body parts. These parts are called

receptors, and they change energies from the environment into

nervous impulses. The human eye, for example, has two major

kinds of receptors in the retina (the light-sensitive part of the eye).

These receptors are called rods and cones. The rods respond to

the intensity of light, but not to different frequencies of light

(different colours). The cones do respond to different frequencies

of light, and are called colour receptors. The rods allow us to see

in dim light, and the cones enable us to see colours and sharp

detail in bright light. Thus, the particular ways that receptors are

structured and function help determine the perceptual effects

related to them.

The brain. Certain physical and functional features of the brain

also determine some aspects of perception. The part of the brain

that serves vision has different kinds of cells that respond only

under certain conditions of stimulation. Some of these cells

respond only when a light goes off. Others respond when a light

comes on, but they stop responding if the light stays on. Such

cells also are arranged in special ways in the brain, and this fact is

related to how we perceive. For example, some cells are arranged

in columns or in clusters. Such arrangements are related to how

we perceive edges and forms. Experiments suggest that some

cells in the brain allow us to perceive movement. Thus, the

structure of the brain is an important element in perception.

Learning, emotion, and motivation.

Much evidence points to the conclusion that early experience,

learning, emotion, and motivation are important in defining what

and how we perceive. Part of this accumulating evidence comes

from experiments that compare how people in different cultures

perceive things. The perception of such things as form, colour,

pain, and touch may differ from culture to culture, depending on

habits and customs, and training of children.

A simple example of how learning can affect perception is

provided by reading the phrases inside the two triangles in the

illustration on the next page. Most people do, and some continue

to do so even with many repeated readings. In learning to

perceive words and sentences, we learn not to perceive each

letter and word separately. Instead, we become able to scan the

overall pattern and "fill in" the remainder. A poor reader is more

likely than a good reader to see the duplicate word in each


Some illusions are related to learning and past experience. An

illusion is not a false perception, as many people believe, but one

that is inconsistent with another perception. Since perception

does not literally reveal the environment, no sensory system is

closer to some absolute truth than any other. We tend to check

visual illusions against touch, but touch can involve illusory

effects, too. Look at the two triangular patches of grey containing

black and white detail in the illustration on this page. If one see

the patches as being different shades of grey, they are

experiencing an illusion. The patches are the same shade of


Emotions and motivation can have an important effect on

perception. Sometimes a severe emotional disturbance can

prevent perception completely, as when emotional shock causes

individuals to lose their hearing temporarily. We are more likely to

perceive those aspects of our environment that are related to our

motives. For example, motivation can affect the perceived

characteristics of objects. To hungry people, food may appear

larger or more colourful than usual.

Understanding perception

Types of perception.

Perception has three levels of complexity: (1) detection, (2)

recognition, and (3) discrimination. Detection refers to whether

people can sense that they are being stimulated by some form of

energy. For example, a light may be so dim they can barely detect

its presence. Recognition means being able to identify as well as

detect a particular pattern of stimulation. Discrimination means

being able to perceive one pattern of stimulation as different from

another. For example, a person may hear slight differences

between two similar musical tones.

The field of study that deals with levels of perception is called

psychophysics. Experimental psychologists investigate the

relationships between the physical properties of stimulus patterns

and the perceived effects of the stimuli. For example, they may

study the relationship between sound frequency and the

perceived pitch of sound.

Perception Theories

  Classical conditioning. Pavlov’s early work on dogs was known as

 classical conditioning. Pavlov discovered that when dogs were fed
 meat powder they salivated. Pavlov then discovered that if a bell were
 rung before the dogs were fed, the dogs would begin salivating in
 anticipation of being fed (this was efficient, since they could then
 begin digesting the meat powder immediately). Pavlov then found that
 after the meat had been "paired" with the meat powder enough times,
 Pavlov could ring the bell without feeding the dogs and they would still

 In the jargon of classical conditioning, the meat powder was an
 unconditioned stimulus (US) and the salivation was, when preceded by
 the meat powder, an unconditioned response (UR). That is, it is a
 biologically "hard-wired" response to salivate when they are fed. By
 pairing the bell with the unconditioned stimulus, the bell became a
 conditioned stimulus (CS) and salivation in response to the bell (with
 no meat powder) became a conditioned response (CR).

 Many modern day advertisers use classical conditioning in some way.
 Consider this sequence:

Beautiful woman (US) ---> emotional arousal (UR) in males

Beautiful woman (US) + automobile (not yet CS) ---> arousal (US)
[repeated many times]

Automobile (CS) ---> arousal (CR)

(For the exam, you should be able to diagram an example given).

Operant conditioning. Instrumental, or operant, conditioning, involves
a different series of events, and this what we usually think of as
learning. The general pattern is:

Behavior ---> consequences ---> behavior is more or less likely to be

There are three major forms of operant learning. In positive
reinforcement, an individual does something and is rewarded. He or
she is then more likely to repeat the behavior. For example, you eat a
candy bar (behavior), it tastes good (consequence), and you are thus
more likely to eat a similar candy bar in the future (behavioral

Punishment is the opposite. You eat what looks like a piece of candy
(behavior), only to discover that it is a piece of soap with a foul taste
(consequences), and subsequently you are less likely to eat anything
that looks remotely like that thing ever again (changed behavior).

It should be noted that negative reinforcement is very different from
punishment. An example of negative reinforcement is an obnoxious
sales person who calls you up on the phone, pressuring you into buying
something you don’t want to do (aversive stimulus). You eventually
agree to buy it (changed behavior), and the sales person leaves you

alone (the aversive stimulus is terminated as a result of consequences
of your behavior).

Please note the examples of reinforcement, punishment, and negative
reinforcement on the notes handout.

In general, marketers usually have relatively little power to use
punishment or negative reinforcement. However, parking meters are
often used to discourage consumers from taking up valuable parking
space, and manufacturers may void warranties if the consumers take
their product to non-authorized repair facilities.

Several factors influence the effectiveness of operant learning. In
general, the closer in time the consequences are to the behavior, the
more effective the learning. That is, electric utilities would be more
likely to influence consumers to use less electricity at peak hours if the
consumers actually had to pay when they used electricity (e.g.,
through a coin-slot) rather than at the end of the month. Learning is
also more likely to occur when the individual can understand a
relationship between behavior and consequences (but learning may
occur even if this relationship is not understood consciously).

Another issue is schedules of reinforcement and extinction. Extinction
occurs when behavior stops having consequences and the behavior then
eventually stops occurring. For example, if a passenger learns that
yelling at check-in personnel no longer gets her upgraded to first class,
she will probably stop that behavior. Sometimes, an individual is
rewarded every time a behavior is performed (e.g., a consumer gets a
soft drink every time coins are put into a vending machine). However,
it is not necessary to reward a behavior every time for learning to
occur. Even if a behavior is only rewarded some of the time, the

behavior may be learned. Several different schedules of reinforcement
are possible:

          o     Fixed interval: The consumer is given a free dessert on
                every Tuesday when he or she eats in a particular
          o     Fixed ratio: Behavior is rewarded (or punished) on every
                nth occasion that it is performed. (E.g., every tenth time
                a frequent shopper card is presented, a free product is
          o     Variable ratio: Every time an action is performed, there
                is a certain percentage chance that a reward will be
                given. For example, every time the consumer enters the
                store, he or she is given a lottery ticket. With each
                ticket, there is a 20% chance of getting a free hamburger.
                The consumer may get a free hamburger twice in a row,
                or he or she may go ten times without getting a
                hamburger even once.

\Variable ratio reinforcement is least vulnerable to extinction.

Sometimes, shaping may be necessary to teach the consumer the
desired behavior. That is, it may be impossible to teach the consumer
to directly perform the desired behavior. For example, a consumer
may first get a good product for free (the product itself, if good, is a
reward), then buy it with a large cents off coupon, and finally buy it at
full price. Thus, we reinforce approximations of the desired behavior.
Rather than introducing Coca Cola directly in Indonesia, fruit flavored
soft drinks were first introduced, since these were more similar to
beverages already consumed.

Vicarious learning. The consumer does not always need to go through
the learning process himself or herself—sometimes it is possible to
learn from observing the consequences of others. For example, stores
may make a big deal out of prosecuting shop lifters not so much
because they want to stop that behavior in the those caught, but
rather to deter the behavior in others. Similarly, viewers may
empathize with characters in advertisements who experience (usually
positive) results from using a product. The Head ‘n’ Shoulders
advertisement, where a poor man is rejected by women until he treats
his dandruff with an effective cure, is a good example of vicarious

Memory. There are two kinds of memory. When you see an ad on TV
for a mail order product you might like to buy, you only keep the
phone number in memory until you have dialed it. This is known as
short term memory. In order for something to enter into long term
memory, which is more permanent, you must usually "rehearse" it
several times. For example, when you move and get a new phone
number, you will probably repeat it to yourself many times.
Alternatively, you get to learn your driver’s license or social security
numbers with time, not because you deliberately memorize them, but
instead because you encounter them numerous times as you look them

A special issue in memory are so called "scripts," or procedures we
remember for doing things. Scripts involve a series of steps for doing
various things (e.g., how to send a package). In general, it is useful for
firms to have their brand names incorporated into scripts (e.g., to have
the consumer reflexively ask the pharmacist for Bayer rather than an
unspecified brand of aspirin).

Consumer Perception Theory

Consumer - Cultural Filters - Perceived Needs - Active Experience

- Perfect Timing - Positive Perception - Fits Needs

         CPT Model


      no perceived        perceived
          need              need

                no/inactive            active advertising
                experience,                experience
                bad timing
                          negative                            positive
                        perception,                         perception,
                         doesn’t fit                         fits needs
                           needs                no purchase               purchase

Consumer Perception Theory (CPT) illustrates and explains one method

through which advertising is effective. There are two basic concepts that

need to be accepted in order for CPT to be understood: cultural filtration,

perceptual reality.

Cultural filtration is simply the reason that people perceive day to day life
differently from one another. Each person is unique and has had a unique set of
life events that shape the way they experience. An easy way of understanding

cultural filtration is by comparing the cultural filter to a pair of sunglasses. When
we wear tinted glasses we view the world as being the color of the lens, the same
applies with our cultural filters. We gather our experiences on a wide variety of
topics (politics, education, experience, vocabulary, travel, geographic location,
cultural knowledge, tradition, family, heritage, race, ethnicity, sexuality, habits,
etc) and form our own unique cultural filter. It is through this unique filter that we
experience everything, including advertising. In the model above the pink tinted
rectangle represents the cultural filter.

  With cultural filtration in place, we can proceed through the steps of the model
which define the theory. The process of CPT starts with the consumer: an
individual toward which the message is directed. The consumer must first have a
perceived need or want, then actively experience an advertisement in the product
category where the need or want exists. It is a catalyst for the model if this
advertisement occurs at strategic timing in the process. After exposure, the
consumer forms an opinion about the product. This perception becomes the reality
of that product to the consumer. It is possible that this truth could change with
exposure to competitive messages from a wide variety of sources (other media,
friends, advice columns etc). If, however, the product is perceived, and therefore
assigned the truth, of being positive it is then evaluated as to whether or not it fills
the need or want. If it does indeed fit the need, it is likely that the consumer will
proceed to the purchase stage of the model. In the purchase stage the consumer
decides to purchase or not to purchase the product. Again, there are a number of
variables surrounding this decision, as surround each step and decision in the

Consumer Behavior

The study of consumers helps firms and organizations improve their

marketing strategies by understanding issues such as how

       The psychology of how consumers think, feel, reason, and select
       between different alternatives (e.g., brands, products);
      The the psychology of how the consumer is influenced by his or her
       environment (e.g., culture, family, signs, media);
      The behavior of consumers while shopping or making other marketing
      Limitations in consumer knowledge or information processing abilities
       influence decisions and marketing outcome;
      How consumer motivation and decision strategies differ between products
       that differ in their level of importance or interest that they entail for the

Understanding these issues helps us adapt our strategies by taking the

consumer into consideration. For example, by understanding that a

number of different messages compete for our potential customers’

attention, we learn that to be effective, advertisements must usually be

repeated extensively. We also learn that consumers will sometimes be

persuaded more by logical arguments, but at other times will be

persuaded more by emotional or symbolic appeals. By understanding the

 consumer, we will be able to make a more informed decision as to which

 strategy to employ.

The Buy-Learning Process

Questions in the Customer's Head:

  1. Change
     What change is occurring?
  2. Discontent
     How serious is my problem?
  3. Research
     What will fix my problem?
  4. Comparison
     Who offers the best solution?
  5. Fear
     What are the risks of buying?
  6. Commitment
     Can we come to terms?
  7. Expectations
     Where are my results?
  8. Satisfaction
     Am I satisfied?

      Getting Into Your Customer's Head is the high level executive sales

  approach that will maximize sales results with the new generation of

  decision-makers. It's the most effective selling system for meeting your

customers' needs at each step of their buying process. When you

implement this approach, you'll take your sales effectiveness to the next

level - while your competitors wonder what they're doing wrong.

Online Shopping

One of the biggest roadblocks for portals trying to grow online shopping in
India is the payment system. Rediff pioneered COD a year ago and that now
accounts for 72% of its sales. Yet, the portal admits that the experience is not
too good. For one, companies like Gati and Skypak are the only couriers in the
country that do COD and charge a premium for the service (Blue Dart refuses
because it claims its system is not geared to handle cash). Krishnamurti admits:
"It takes the cost of delivery up by 15% but, more importantly, it takes an
average of three months for the cash to get back. It's a nightmare to handle."

That is why portals would rather encourage payment methods like credit cards
and online banking. The problem with online banking is that only the private
banks offer the option while most nationalised banks don't. Sanjay Savla, an
online electronic gadget seller, says: "It would make my life a lot easier if State
Bank of India started online banking."

Credit cards have their own problems. From the merchant's perspective, the
cost of setting up an online store can be prohibitive since gateways like ICICI
and Citibank don't come cheap. To encourage credit card payments, Baazee
started a gateway service called Paisa Pay for its sellers three months ago. It
offers it to its sellers at a minimal charge and incurs the costs of running it.

Of course, gateway service providers like CC Avenue, that charge a fraction of

what ICICI and Citibank do, came up a year ago and that helped to a certain
extent. This allowed T.V. Maanoj from Tirupur to set up his online shop,, something he would have never been able to do earlier. Maanoj's
attitude-laden T-shirts ("I was intelligent till education ruined me," says one)
sold like hot cakes on Rediff. He sold 75,000 pieces, priced between Rs 199
and Rs 259, over six months. Enthused, he set up the online shop which now
delivers 100 T-shirts a day. He offers COD as well but admits that he has Rs
1.7 lakh pending with his courier company.

The odds are high. The consumer is still a little wary of putting a credit card
number online. And the merchant is afraid of charge-backs - if the customer
refuses to honour the charge, the issuing bank makes the merchant pay up.
Since there is no charge slip, there is no legal proof of the transaction. Online
merchants worldwide have been telling the credit card companies to make it
safer for consumers to transact online. In an effort to combat this, Visa
International has come up with a 'Verified by Visa' platform. A personal
identification number (PIN) issued to every cardholder will have to be entered
before an online transaction is cleared. Uttam Nayak, deputy country manager,
Visa International (South Asia), says: "Legally, it shifts the liability from the
merchant to the consumer." Amitabh Pandey, group general manager, Indian
Railways Catering Tourist Corporation, agrees. He says: "This would be a
huge assurance factor."

Since Visa is ready with this technology platform, Mastercard has bought into
it. The problem is that the cost of implementing this needs to be borne by the
issuing bank and that cost can be significant. That is exactly why Indian banks
are hesitant. Visa is rolling this out globally by April 2003 although it won't
kick off in India by then. Meanwhile, it is a steady roll for B2C in India.

Touch-and-feel. It's an innate part of an Indian consumer’s purchase that can
be experienced on the Internet — in an Arthur C. Clarke novel, of course! It is
a futile exercise for Indian companies to retail consumers using the Net as an
independent medium.

Sr. No.   Name of book                  Author
1         Marketing in the new          M. J. Xavier

2         Organisation Behavior         Stephen P Robbins
3         Organisation Behavior         Fred Luthans

Sr. No    Name of Magazine

1         Business Weekly- Express Computer

2         IT – Information Technology


1. Sampling Design

1.1 Target Population

The universe selected for this research is the male and female population
residing in Mumbai for more than one year.

1.2 Sampling Frame

The sampling frame includes the people residing in the suburbs of
Goregaon, Mulund, Thane, Borivali and Mira Road.

1.3 Sampling Method

The method used is simple random sampling which is a type of probability
sampling in which each member of the population has an equal probability
of being selected.

1.4 Determine the sample size

As we have chosen probabilistic methodology we will use the permissible
standard deviation (δ) and mean to determine sample size:

                              N= (Z²δ²)/E²

Here we consider a mean that 30 out of every 100 people are willing to
and Error is 10% of the mean. Therefore Error = 0.1*30 = 3.
At Confidence level of 95.4% Z = 2, and we consider standard deviation of
12 people we get by calculation N = 64.

1.5 Sampling unit

Males and females from the suburbs including, professionals and non-
professionals within the age group of 15 years to 50 years.

2. Research Design

The research group will use the DESCREPTIVE research design
where the main contact technique will be a survey method. This
method will be used because it will help us to get the required
responses from the individuals having various parameters such as
age, sex, occupation, etc.

3. Data Collection

Using self-administered questionnaire carried out the collection of data. The
questions were presented mostly close-ended style with well-structured questions.
The questionnaires were distributed to the respondents chosen at random at various
locations such as cyber cafes, higher learning institutions' labs, and shopping malls.
Survey was conducted with 64 respondents using cluster sampling. This sample
consisted of people of different occupations like service ,student, business
profession and others.

3.1 Questionnaire

Following the literature review, questionnaires were developed to determine the
extent of Internet users' motivation and concern factors when browsing or purchasing
through the Internet. A sample of questionnaire has been provided in the Appendices
of the report.

3.1.1 Reliability And Validity Of Survey Questions

The validity of the questionnaire was tested with a pilot study among five
management students of NLDIMSR. These sample groups known as computer
literate, highly knowledgeable in areas pertaining to Electronic Commerce and more
likely to conduct online shopping.
The pilot study was conducted in order:
(i) to check for the relevance of the variables selected,
(ii) to check for face validity of the questionnaire, and
(iii) to see the reliability of the questionnaire.

Sets of preliminary questionnaire were distributed to the respondents and their
responses on the Internet usage, and any motivation and concern factors when
browsing or purchasing through the Internet, were taken into contention. It was
conducted to determine the content validity, i.e. the sampling adequacy of the content
of a measuring instrument.

In addition, suggestions from the project guide Prof. Dr. Vijay Wagh, Fauclty-
Research Methodology has confirmed the content validity of the questionnaire items.
Thus, the instrument provides adequate coverage of the topics included in the study.
The suggestions from the Guide and the colleagues were useful in generating and
constructing the final questionnaire that appeared to have no significant ambiguities
or problems, which were then distributed to target respondents.

4. Data Analysis

4.1 Statistical Techniques Used
Data in this study were analysed using Statistical Package for Social Science (SPSS)
and Microsoft Excel. Correlation and regression techniques was applied to survey
findings. These techniques were used in order to analyse interrelationships among
Internet users' motivation and concern factors when browsing or purchasing through
the Internet in terms of their common underlying dimensions (factors) through
condensing the survey items into a smaller set of dimensions (factors) with a
minimum loss of information.

In the end Hypothesis testing was done to check the truthfulness of the findings.

Since the variables were numerous and highly subjective, efforts have been made to
convert and evaluate the data objectively to the extent possible. The technique of
factor analysis was used in order to identify the underlying factors and a smaller set
of important variables relevant to Internet users' perception. Due weightage factor
was assigned to each variable so that the most important variable can be identified
scientifically to the maximum extent possible. The necessary suggestions were also
taken from the expert faculty in Statistics.

5. Limitations of Study
1. Time Constraint
 2. Budget Constraint
 3. Sample Size Constraint

    6. Survey findings:

 I. The survey findings indicated that about 87.5 % people like

    shopping i.e.(56 out of 64) and number of people who shop weekly

    is maximum during weekends i.e. 32% (22 out of 64 ) .It was found

    that out of surveyed people 45% people opted for online shopping.

 II. The survey findings indicated that about 87.5 % people like

    shopping i.e.(56 out of 64) and number of people who shop weekly

    is maximum during weekends i.e. 32% (22 out of 64 ) .It is found

    that out of surveyed people 45% people go for online shopping .

III. It was found that super markets is the most preferred place for shopping of the
    respondents and retail shops ,departmental stores ,strip malls followed by retail
    shops respectively and online shopping is the least preferred by the respondents.

IV. 50% of the respondents perceive that online shopping is convenient. The main
    purpose for the respondents to go for online shopping is for a gift.

V. Most respondents preferred to buy online the items such as CDs , tickets ,art
    forms like paintings and portraits and the least preferred are watches and
    electronic items.

VI. Most respondents spend less than 1000 Rs. (per month ) around 60 % (18 out of

VII. Most preferred sites of the respondents for online shopping are, ,, and almost 66% respondents
     go for planned shopping (20 out of 30).

     6.1 Summary of Findings:

     T 1)

        service                                                        18
        student                                                        24
        profession                                                      5
        business                                                       12
        others                                                          5

                           occupation distribution

                          8%            service
                  business               28%


  do you like shopping?

  YES                                                 58
  NO                                                   8

                  Do you like shopping?(Q1)




Out of 64 respondents 88% respondents like shopping


   how frequently do you shop?

   daily                                               8
   weekly                                             22
   fortnightly                                         9
   monthly                                            14
   quarterly                                          11

             Shopping Frequency (Q2)

            quarterly        daily
              17%            13%

                                     weekly    monthly


the shopping frequency graph shows that 34%respondents do
weekly shopping and 22% respondents do monthly shopping.


   Do you shop online?

   YES                                                 30
   NO                                                  34

                         Do you shop online? (Q3)

                    no                       47%


Q4) where do you prefer to shop(mark your order of preference) 1,2,3,4,5
where 1 is most preferred and 5 is least preferred
                 Rank 1        2      3      4     5
                 Points 5      4      3      2     1

                  retail Super Strip Department
            ranks shop market malls    store    Online
              1    18      17   11       13       3
              2    16      16   10       19       8
              3    14      19    9        9       10
              4     9      10   29        9       8
              5     7      2     5       14       35
            TOTAL 221     228  185      200      128

                       Preferrence for different shopping destinations (Q4)

                                              retail shop
                                                 23%                          retail shop
                                                                              super markets
                    department stores
                          21%                                                 strip malls
                                                                              department stores
                                               super markets
                                                   24%                        online
                                strip malls


53% respondents do online shopping

            Do you find online shopping convenient?
            YES                                                         16
            NO                                                          48

      Is online shopping convinient?(Q5)



      Online shopping is done for ?
      self consumption                7
      gift                            11
      both                            12

         You do online shopping for? (Q6)

      both                                 self consumption
      40%                                  gift


      What type of product do you buy online?
      books                                                  18
      medicines                                               4
      cds                                                    17
      watches                                                 3
      apparels                                                8
      tickets                                                17
      elctronics                                              3
      art forms                                              17

                 Products Purchased (Q7)

                     art forms              books
                       20%                   20%

              elctronics                              medicines
                  3%                                    5%

                 tickets                            cds
                   20%                              20%
                            apparels        watches
                              9%              3%

Tickets ,cds,arts are most popular items purchased online


   Q8) what benefit do you think in online shopping (mark your order of
importance) 1,2,3,4,5,6 where 1 is most important and 6 is least important

                                      1       2 3 4     5                 6        Total
           time saving                29      19 8 4    1                 3        318
       discount purchase              4       5 8 16    10               21        170
       variety of products            8       7 10 7    23                9        199
       any time shopping              6       14 13 7   9                15        212
         shop from one
              place                   2        9        13 15   11       14        190
         home delivery                17       8        14 13   11       10        209
              Total                                                                1298

              Order of Incentives stimulating online purchase (Q8)

                  home delivery
                                      time saving
                     16%                                             time saving
                                                                     discount purchase
        shop from one place                                          variety of products
                                        discount purchase            any time shopping
                                              13%                    shop from one place
            any time shopping
                                  variety of products                home delivery


Q9) what problems do you think in shopping online(mark your order of
importance) 1,2,3,4,5,6,7 where 1 is most important and 7 is least important

                                   1    2    3      4          5        6      7       TS
 internet access is not easily
             available            6     6    16    6           6      8      16       232
         items are costly         5     6    2     16          9      16     10       214
     not assured of quality      20     7    7     3           9      7      11       281
     long product delivery
             duration             6    7 8         9          15      14     5        238
      payment difficulties       14    16 6        12          3      2      11       296
    complicated procedure         5    17 15       4          14      5      4        284
   difficulty in returning the
              goods                9    5    11    11         10      10       8      250
Total                                                                                  1795

        Disadvantages of Online shopping(Q9)            easy internet

                      14%        13%
                                                        not assured of quality

                                       12%              long product delivery
                                                        payment difficulties
                                                        complicated procedure
                                                        difficulty in returning the


what amount do you spend on online shopping ?

<1000                                                                      18
1000-3000                                                                   8
3000-5000                                                                   2
5000<                                                                       3

                                       Spending Limits (Q10)
            Amt. spent in Rs.

                                   5000<      3
              (Per Month)

                                3000-5000   2
                                1000-3000         7
                                   <1000                         18
                                            number of shoppers


   Have yopu come across any situation where on line shopping has
   been a problem ?
   YES                                                                12
   NO                                                                 38

                problems trackers (Q11)





        Do you go for online shopping ?
        Planned                              20
        spontaneous                           4
        both                                  6

                  Buying Impulses (Q13)

       spontaneou                          spontaneous
            s                   Planned    both
          13%                     64%


    The most beneficial factor according to respondents was “it is time

    saving” and least important was “ability to shop from one place”.

    The perceived advantages are arranged in order of their
    importance as follows:

  I. Time Saving

    Because online shopping is so convenient, consumers don't
    have to tolerate the stress of sitting in traffic jams and waiting
    at the queue lines. Online shopping allows people to relax in
    the comfort of their own home or office to research their
    products, whenever they want, and can purchase whenever
    they want. It's a time saver!

 II. Variety of products

   Online shopping offers innumerable amounts of goods and
   services right to the consumer's home, office, school, library
   etc. This allows consumers to deal with different businesses
   and companies from all around the world. In addition, this
   allows consumers to obtain access to a vast arrangement of
   goods and services. Therefore choices for each kind of product
   are largely increased which benefits the consumers because
   they have a greater choice and variety than they would locally
   through conventional shops which only offer limited brands and

III. Discount purchase, Lower and Best Prices

  Because there are so many businesses and companies online
  which offer great amounts of goods and services, there are
  likely to be vast amounts of a particular good or service
  consumers are looking for. Due to this increasing competition,
  consumers are offered attractive discounts.

  Since today's conventional shopping stores only offer a limited
  amount of information, brands and prices for a particular good
  or service, consumers don't get the opportunity to compare a
  wide range of goods to obtain a low price. They may only
  receive the standard price for a particular good.

  Shopping through the Internet offers consumers the chance of
  getting a low price for a certain good or service and if they are
  lucky, they could obtain the product they are after directly from
  the distributor or manufacturer, saving them money from sales

IV. Anytime shopping

  Consumers are finding shopping online easily accessible
  because it's open 7 days per week, 24 hours per day. So
  virtually, consumers can shop any time they need to, and if they
  get interrupted during their online shopping period, they are
  able to continue later. This is why people are finding online
  shopping handy because it's available at any time whereas
  conventional shopping centres today don't have that kind of

 V. Home Delivery and Ability To Shop From One Place

   Shopping online has allowed consumers access to items they
   would not normally come into contact with and considering the
   Internet's powerful capability to search effectively and quickly,
   consumers are able to pursue all the best brands of a certain
   good or service with a click of a button rather than through
   conventional procedures where the consumer has to physically
   walk into the store and ask for directions.

VI. Access to information about the products
   Easy access to an abundance of current and detailed information on
   products and services facilitates comparison shopping, aid in product
   selection and enables consumers to make more informed decisions.

VII. Low Pressure

   Shopping on the Internet will save consumers from being annoyed by
   a salesperson persuading them to purchase a specific item. Electronic
   Commerce also enhances flexibility and convenience. Consumers can
   enjoy window-shopping on the Internet without the pressure to
   purchase, unlike the traditional shopping environment. Consumers are
   able to initiate and control non-linear searches, due to the interactive
   nature of the Internet and the hypertext environment.

   However, advertisements and presentations on the Internet
   doesn't mean it won't be influential or persuasive.

  Nevertheless, shopping online gives consumers the opportunity
  to read through information about a certain product and think
  cautiously about purchasing the product and fortunately, won't
  be cornered by a salesperson.


  Despite all the advantages and positive points associated with

  shopping online, it is considered that there are just as many risks and

  dangers involved with e-commerce that has jeopardised the

  development of Online shopping in India. The perceived advantages

  are arranged in order of their importance as follows:

     I. Non availability of Internet access

    II. Items are costly

   III. Not assured of quality Products that are sold online can be

        seriously deceitful because they're not shown to scale. In

        some sites, e-shoppers may only be offered information about

        the description of a specific product and be given no picture to

        represent that information

    IV. Long product delivery duration

     V. Payment difficulties.For E-shopping holding a credit card is an

        essential. Credit cards are not that popular in India yet.

 VI. Complicated procedure.

    Indian consumer is not comfortable with the use of the credit

    card and making online payments.

 VII. Difficulty in returning the goods .

    If online consumers purchase products from overseas and
    receive a faulty product from them, the online shopper may
    find great difficulty in finding an organisation in their country
    to assist them.

VIII. Loss of Privacy

    In some cases , the privacy of online consumers could be
    violated. Whilst shopping online, consumer's personal
    information such as their credit card number and home
    address must be provided to purchase goods and/or
    services. If online consumers don't read the store's privacy
    policy cautiously, their personal information could be
    hacked into and their private details may be sold over the

 IX. Security issues

   There is also a great concern, among the Internet users, regarding the security
   of financial information transmitted over the Internet i.e. vendor reliability of
   promise not misuse users' personal and credit card information.
 X. The Hidden Costs

   E-shoppers must be alert when it comes to all the extra
   charges that could be established on the product they're
   purchasing such as sales tax, customs duty, shipping,
   handling charges and even the charge concerned with the
   convenience of shopping at home. Sometimes, e-
   shoppers are unaware about the final and total cost of their
   goods and/or services. E-shoppers must pay attention to
   all the extra payments (usually written in fine print) for the
   goods and/or services they intend to purchase or they'll
   end up with a bill they weren't prepared for.

XI. The Scams and Frauds

   Sometimes, online consumers are unsure of the store
   they're purchasing from online and end up buying from
   dishonest frauds rather than from authorised

6.4 Common annoyances of the consumers

While shopping on the internet, although not directly,
consumers are exposed to a number of scams and need to
take precautions to avoid being 'ripped-off'. Here are some
common scams to look out for while surfing the world wide

 I. Junk e-mail - Junk e-mail or bulk e-mail messages swamp
    the internet each day, ending up on computers everywhere.
    Although many of these messages are from law-abiding
    organization, some are from fraudulent traders making false
    promises they do not intend to keep.
 II. False and Misleading Advertising - An advertisement can
    be deceptive in various ways including where, for example, it:
    contains a false statement of fact - this may be possible prove
    or disprove by evidence; conceals or leaves out important
    facts; promises to do something but there is no intention of
    carrying it out; creates a false impression, even if everything
    stated in it may be literally true.
III. Hidden expenses - Be wary of advertisements promising 'no
    start up costs' and then asking for a one-off fee.
IV. Vague references - 'Thousands of satisfied customers!' While
    such references sound impressive, you're rarely given enough
    information to check them out.
 V. Hidden addresses – There are traders who try to sell goods
    or services using an anonymous e-mail address or a post
    office box number and make it hard for you to find their actual
VI. Promises of instant wealth - If incredible returns are being
    offered, ask yourself who is going to be able to provide these
    and how.
VII. Trading schemes and Placement services- They have the
    principal purpose of making money through the recruitment of
    new participants. These schemes usually induce people to join
    by promises of receiving payments for introducing further
    people either directly or through others.

VIII. Unbelievable claims - Be wary of promise like 'These
     products can change your life forever!!' 'You will feel better
     than you've ever felt before'.
 IX. Buying abroad - Standards and systems vary between
     countries. Make certain that electrical equipment, for example
     video games or software, will work in Australia. When
     deciding, take into account the cost of converting currency or
     sending money abroad. Some goods may be cheaper abroad,
     but additional costs such as customs duties can make the final
     price more expensive.

 7. Conclusion:

     To most consumers, the issue of security and privacy over the Internet is
     the most overwhelming barrier facing the adoption of Electronic Commerce
     that caused them not to make any purchase on the Internet. Widely
     publicized security lapses on the Internet, where hackers have accessed
     personal financial information being sent electronically, have done little to
     boost consumer confidence in the Internet as a conduit for commerce.

     At present, offline payment modes like demand draft, cheque and payment-
     on- delivery are more popular than online modes like credit cards and debit
     cards; this is the experience of a majority of e-commerce players with a few
     exceptions. Risk averseness is the main reason why most users prefer the
     cash-on-delivery (CoD) mode, followed by credit card payments.

     To most consumers, the issue of security and privacy over the Internet is
     the most overwhelming barrier facing the adoption of Electronic Commerce

that caused them not to make any purchase on the Internet. Widely
publicised security lapses on the Internet, where hackers have accessed
personal financial information being sent electronically, have done little to
boost consumer confidence in the Internet as a conduit for commerce.

The key factors which are bringing the transformation in the Indian
consumer’s perception can be summed up as better availability of IT and
telecom infrastructure to the average Indian middle class consumer; higher
awareness levels; and most importantly, increased comfort levels and
confidence in buying online.

As Internet penetration grows beyond the metros, it will bring with it more
users with disposable incomes. As the use of technology becomes more
widespread it is natural that relevant segments of consumers will migrate to
buying and selling on the Internet

Apart from infrastructure development, the growing maturity of the average
Indian Internet user has also spurred the growth of the B2C e-commerce
market. While infrastructure development is happening and will continue to
happen, players have been striving to create awareness and increase
comfort levels to move consumers up the IT value curve.
Still, as far as Indian market is concerned, the day is still far off when
online purchasing will become as common as offline, and when e-
commerce players will become additional distribution channels and points
of contact for marketers across brands and categories. The barriers to online
purchasing are ignorance and misconceptions. And its at this level where
the fight is currently on….

8. Recommendations:

One of the big barriers in the way of e-commerce has been the skepticism
surrounding security aspects of e-commerce, which lowered confidence
levels. Online sellers are now concentrating on factors which help in
transforming the skeptical Mumbai consumer into someone who
experiments with buying online. These include not only creating more
payment options and payment gateways, but also strengthening transaction
security to gradually build up confidence in online payment as well.

Banks should arrange a stronger security and authentication systems.

Players are working to create newer options for consumers. Companies
should provide its users the option to pay either by cash-on-delivery, money
transfer, cheques or demand drafts.

The companies can also launch an end-to-end payment method wherein the
buyer can choose to directly pay the seller online using a third party. This is
a service like PayPal (in the US) which is extremely popular among users
of sites like eBay and Amazon.

The companies can also invite users/ buyers to walk into its offices and pay
for the goods, to initial trust and confidence with the seller.

The companies can also target smaller towns and cities which are expected
to become big contributors to online shopping since purchasing power is
increasing at a far higher rate than ease of access to the latest products. In
metros, the need for convenience (owing to rapid changes in lifestyles)

clubbed with easier access to the Internet will help the development of
online shopping.

Further, communication programme should be more customised with
segments addressed according to their particular needs. There should be a
move to a holistic approach to catch the consumer (online, offline), greater
focus on the consumer’s real needs, profiling of the consumer database for
better interaction, and focused interaction.

9. Contributions And Direction For Further Study

 Major contribution of this study could be the list of perception factors with respect to
 shopping online. The list is comprehensive and may prove useful for further
 theoretical development with either the Mumbai population or a cross-cultural
 population of India.

 This could also be a useful paper for online marketers who are interested in exploring
 the Mumbai market; thereby they can win the confidence of the consumers and also
 understand potential buyers’ behaviours.

 Secondly, the information derived from this research may enable offline retailers,
 especially local manufacturers, to diversify and offer their products and services
 through the Internet and not stay in the local traditional "brick and mortar"
 environment. Finally, online consumers may also benefited through this study. They
 are becoming "techno-savvy" and collect as much information as possible before
 making the purchases and thereby, they choose right product at an economical price.
 They are becoming smarter day by day.

 Beside that, Maharashtra Government should also play an active role by giving much
 priority in terms of increasing the computer literacy rate among Mumbai population
 for the creation of knowledge-driven and IT-savvy society. This measure could be
 exercised through the provision of short courses, seminars, workshops, and
 conferences on issues of Internet and computer related technologies. Government of
 Maharashtra has certainly taken the initiative in this direction. This public education
 could help build up Mumbai consumers' confidence to shops online as well as
 increase the volume of sales in the Electronic Commerce sector.


 Research Proposal
 Questionnaire
 Question Hierarchy


Sr. No.   Name of book                  Author
  1       Marketing in the new          M. J. Xavier

  2       Organisation Behavior         Stephen P Robbins
  3       Organisation Behavior         Fred Luthans

Sr. No    Name of Magazine
  1       Business Weekly- Express Computer

  2       IT – Information Technology


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