Internet is changing the way consumers shop and buys goods and services, and has rapidly evolved

into
a global phenomenon. Many companies have started using the Internet with the aim of cutting
marketing costs, thereby reducing the price of their products and services in order to stay ahead in
highly competitive markets. Companies also use the Internet to convey, communicate and disseminate
information, to sell the product, to take feedback and also to conduct satisfaction surveys with
customers. Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product from a
particular store. Many experts are optimistic about the prospect of online business. In addition to the
tremendous potential of the E-commerce market, the Internet provides a unique opportunity for
companies to more efficiently reach existing and potential customers. Although most of the revenue of
online transactions comes from business-to-business commerce, the practitioners of business-to-
consumer commerce should not lose confidence. It has been more than a decade since business-
toconsumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly
strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of
E-retailing, researchers continue to explain E-consumers’ behavior from different perspectives. Many of
their studies have posited new emergent factors or assumptions that are based on the traditional
models of consumer behavior, and then examine their validity in the Internet context. Online shopping
is definitely a great way to shop with everything available on the websites. From clothes, gift items,
food, home needs, medicines, and many more, this mode of shopping allows one to shop conveniently
without hassle on spending hours in a supermarket or shopping areas. The Internet with its wide array
of information nooks, allows the customer to go through various reviews of the product or service
before actually heading for purchases. These online shopping websites also have daily deals for the
customer looking for discounts and store offerings. A Study on Consumer Perception towards online
shopping

SIGNIFICANCE OF THE STUDY

In recent years, online shopping has become very popular. The growth of technology has made these a
part and parcel of everyday lifestyle. The advent of plastic money or the debit /credit card and the
smooth access to the World Wide Web has brought the shops from around the world to the desktop.
We personally have seen many of our friends surfing through various online shopping sites and
purchasing things. Student community has become so strong that even the parents seek the help and
advice of their children before conducting big purchases. This is solely because of their exposure to web
and social media. Moreover, while it comes to personal purchases, students are very particular that they
get best products available in the market and seek all the possible ways to secure the best products. This
is where the role of online shopping sites emerges. Students, who are well versed in the use of internet
and active in social media, know about online markets and have tried at least some of them. The study is
very relevant because it can give a clear picture of the future of online markets in India and the
emerging trends in this particular field. The various factors that influence online shopping habits and its
merits and demerits are also dealt with. The study also tries to have a comparison of online shopping
habits among different age group as well as income group. 1.2 Objective of the Study The objective of
this research study is to investigate online consumer behavior, which in turn provides E-marketers with
a constructional framework for fine-tuning their Businesses’ strategies. The specific objectives of this
research are: 1. To know the consumers awareness and perception about the products and services
provided on internet. 2. To know how it provides products and services and satisfies their customers. 3.
To know how it reduces the uncertainty in purchase decision process. 1.3 Scope of the Study The
theoretical scope of the study includes the popularity of online shopping, the need of virtual markets,
their role in influencing the consumption pattern and habits, merits and demerits of e-markets, major
players in online retailing etc. We can listed the scope as below : A Study on Consumer Perception
towards online shopping 4 1. The Study was conducted among the Internet users. 2. The Geographical
area covered was Sambalpur. 3. The Study was based on a Schedule of Questions. 4. The scope of
internet shopping 1.4RESEARCH OBJECTIVE 1. To analysethe consumer interest on online marketing. 2.
To determine the factors affecting online buying. 3. To evaluate the growth of online marketing. 4. To
forsee the demand of online shopping in india. 5. To study the impact of traditional retailer over the
online retailer. 6. To gather information regarding growing sector for online purchasing. 7. To
understand the barriers of online marketing. 8. To know the consumers awareness and perception
about the products and services provided on internet 9. To examine what the consumer had bought and
what they want to purchase in the near future. 1.5 LIMITATIONS OF THE STUDY Utmost care has been
taken with regard to the collection, classification and analysis of data. However, the study is subjected
to the following limitations: There were hardly any previous studies on the topic and it was a great
challenge to deal with a fresh topic. 1. Lack of environmental support for the study on the topic. 2. Less
sample size, as it is just survey with 100 respondent 3. Basically based on primary data , hence we can
not argue that the research is applicable in each condition,time& place. 4. Short time duration, with in
such short span of time it is too much difficult to analyse the topic. 5. Lack of customer support, while
asking the consumer they were behaving rudely and not responding to the questions. A Study on
Consumer Perception towards online shopping 5 CHAPTER -2 LITRETURE REVIEW A Study on Consumer
Perception towards online shopping 6 CHAPTER-2 REVIEW OF LITRETURE A literature review is a select
analysis of existing research which is relevant to your topic, showing how it relates to your investigation.
It explains and justifies how your investigation may help answer some of the questions or gaps in this
area of research. A literature review is not a straightforward summary of everything you have read on
the topic and it is not a chronological description of what was discovered in your field. 2.1 NATIONAL
REVIEW OF LITREATURE Rajeev Kamineni (2004) in his study finds that World Wide Web can change
humanbehaviour and human interactions to a very large extent. Web based shopping behaviour is one
major example to point out the trends in this direction. This study is of a very exploratory nature and it
intends to establish the differences between several web-based shoppers from different parts of the
world. Several critical factors associated with online shopping behaviour have been explored. A cross
cultural data set has been collected and an illustrative description of the shoppers has been provided. As
a final step the cross cultural differences between several shoppers explored. ArchanaShrivastava,
UjwalLanjewar, (2011) in online buying, the rate of diffusion andadoption of the online buying amongst
consumers is still relatively low in India. In view of above problem an empirical study of online buying
behavior was undertaken. Based on literature review, four predominant psychographic parameters
namely attitude, motivation, personality and trust were studied with respect to online buying. The
online buying decision process models based on all the four parameters were designed after statistical
analysis. These models were integrated with business intelligence, knowledge management and data
mining to design Behavioral Business Intelligence framework with a cohesive view of online buyer
behavior. For better understanding the factors of internet and consumer shopping behaviours towards
internet shopping, this chapter would provide academic research reviews and A Study on Consumer
Perception towards online shopping 7 relative ideas expressed in the literature that associated with this
subject. Furthermore, a number of hypotheses will be tested to answer the research questions that
mentioned already in the introduction. Due to the recent research shows that internet shopping
becomes a full and effective business model (Black, 2005), therefore there are several studies that
already investigated more or less related on internet shopping and consumer behaviour. In the following
chapter, some point of view will be taken from literatures, and needs careful review to achieve them as
the basis of the subsequent research investigation. J.SINHA 2010The number of people engaged in
various online activities is increasing every day. While the number of online shoppers is increasing, it is
not proportional to that of brick-and-mortar shoppers. Research has tried to explain the dismal
performance of online shopping as compared to the physical shopping format. Reasons for the lower
level of Internet sales have been cited as being perceived risk in carrying out an online transaction,
socio-psychological factors (Like - influence of friends and relatives) and infrastructural limitations
(Availability of Internet, computers, credit-cards, cyber laws etc.). Under the purview of aforementioned
factors this study tried understanding the online shopping behavior of Indian consumers. Socio-
psychological factors and infrastructure have been found influential factors while the perceived risk
surprisingly is not significant as a whole but at gender level there was significant difference between the
online behavior of male and female due to risk perception. Lal studied the determinants of adoption of
Information Technology (IT) in India. The study was based on 59 electrical and electronic goods
manufacturing firmssituated in NOIDA. Semi-structured questionnaire were used to collect the data. The
study examined the factors influencing the degree of IT adoption by firms. The factors included are
entrepreneur characteristics measured by entrepreneur’s qualification, importance given to market
share, R&D and quality consciousness, firm’s international orientation factors measured by import and
export intensity, work force skill and firm size. The sample firms were divided into four categories
depending on their intensity of IT. A Study on Consumer Perception towards online shopping 8 2.2
INTERNATIONAL REVIEW OF LITREATURE E-Business probably began with electronic data interchange in
the 1960s (Zwass, 1996). However, (Melao, 2008) suggests that it was only in the 1990s, primarily via
the Internet, that eBusiness has emerged as a core feature of many organizations. In his opinion, the
hope was that e-Business would revolutionize the ways in which organizations interact with customers,
employees, suppliers and partners. Some saw e- Business as part of a recipe to stay competitive in the
global economy. Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan,
MoezLimayem,(2002) The topic of online consumer behavior has been examined under variouscontexts
over the years. Although researchers from a variety of business disciplines have made significant
progress over the past few years, the scope of these studies is rather broad, the studies appear
relatively fragmented and no unifying theoretical model is found in this research area. In view of this,
provide an exhaustive review of the literature and propose a research framework with three key
building blocks (intention, adoption, and continuance) so as to analyze the online consumer behavior in
a systematic way. This proposed framework not only provides us with a cohesive view of online
consumer behavior, but also serves as a salient guideline for researchers in this area. Burke, R.R. (2002),
Trust is a key factor that determines the success of Business toConsumer (B2C) e-commerce
transactions. Previous researchers have identified several critical factors that influence trust in the
context of online shopping. This research focuses on available security measures which assure online
shopper_s safety and great sales promotions and online deals which stimulate customers to shop online.
Abel Stephen (2003) in his paper represents the findings of research studies that address e-commerce
design and associated consumer behavior. The innovation of e-commerce has affected not only the
marketplace through the facilitation of the exchange of goods and services, but also human behavior in
response to the mechanisms of online services. Researchers have identified and hypothesized on
relevant subject matters ranging from Web usability, marketing channels and other factors influencing
online buying behavior. Though researchers have focused on what appear different aspects of online
buying behavior, their studies may be shown to be interrelated and interdependent, even to the extent
of revealing constructs upon which e-commerce, in terms of future design and research, could be built.
Balasubramanian, S., Konana, P. and Menon, N.M. (2003), In this environment, sometraditional service
quality dimensions that determine customer satisfaction, such as thephysical appearance of facilities,
employees, and equipment, and employees_ responsiveness and A Study on Consumer Perception
towards online shopping 9 empathy are unobservable. In contrast, trust may play a central role here in
enhancing customer satisfaction. Model trust as an endogenously formed entity that ultimately impacts
customer satisfaction, and we elucidate the linkages between trust and other factors related to the
performance of the online service provider and to the service environment. The classic consumer
purchasing decision-making theory can be characterized as a continuum extending from routine
problem-solving behaviors, through to limited problemsolving behaviors and then towards extensive
problem-solving behaviors [Schiff man et al., 2001]. The traditional framework for analysis of the buyer
decision process is a five-step model. Given the model, the consumer progresses firstly from a state of
felt deprivation (problem recognition), to the search for information on problem solutions. The
information gathered provides the basis for the evaluation of alternatives. Finally, post-purchase
behavior is critical in the marketing perspective, as it eventually affects consumers’ perception of
satisfaction/dissatisfaction with the product/service. This classic five stage model comprises the essence
of consumer behavior under most contexts. Nevertheless, the management of marketing issues at each
stage in the virtual environment has to be resolved by individual E-marketers. Peterson et al. [1997]
commented that it is an early stage in Internet development in terms of building an appropriate
dedicated model of consumer buying behavior. Decision sequences will be influenced by the starting
point of the consumer, the relevant market structures and the characteristics of the product in question.
Consumers' attitude towards online shopping is a prominent factor affecting actual buying behavior.
(Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and NO.2, 2005) Todd [1997]
proposed a model of attitudes and shopping intention towards Internet shopping in general. The model
included several indicators, belonging to four major categories; the value of the product, the shopping
experience, the quality of service offered by the website and the risk perceptions of Internet retail
shopping. In the research conducted by Vellido et al. [2000], nine factors associated with users'
perception of online shopping were extracted. Among those factors the risk perception of users was
demonstrated to be the main discriminator between people buying online and people not buying online.
Other discriminating factors were; control over, and convenience of, the shopping process, A Study on
Consumer Perception towards online shopping 10 affordability of merchandise, customer service and
ease of use of the shopping site. In another study, Jarvenpaa et al. [2000] tested a model of consumer
attitude towards specific webbase stores, in which perceptions of the store's reputation and size were
assumed to affect consumer trust of the retailer. The level of trust was positively related to the attitude
toward the store, and inversely related to the perception of the risks involved in buying from that store.
Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected the consumer's
intention to buy from the store. Consumer risk perceptions and concerns regarding online shopping are
mainly related to aspects involving the privacy and security of personal information, the security of
online transaction systems and the uncertainty of product quality. Trust is interwoven with risk
[McAllister, 1995]. One of the consequences of trust is that it reduces the consumer’s perception of risk
associated with opportunistic behavior by the seller [Ganesan, 1994]. Lack of trust is frequently reported
as the reason for consumers not purchasing from Internet shops, as trust is regarded as an important
factor under conditions of uncertainty and risk in traditional theories. Mayer et al. [1995] developed a
model which combines traditional marketing philosophy on consumer motivation to buy and the trust
model. In this model, trust propensity; which is a personality trait possessed by buyers; is an important
antecedent of trust. In Internet shopping, there is not much information available to the buyer regarding
the seller, prior to purchase. A buyer with a high propensity to trust will more likely be a potential
customer than a buyer with a lower propensity. Purchase decisions are ultimately guided by consumers'
perceptions of the product or service. Of course, the critical nature of perceptions as they relate to
purchase behaviour has been repeatedly demonstrated in advertising and marketing research. Negative
perceptions of the product, service, brand, or company almost always translate to a lost sale or, at a
minimum, expressed lower intentions to purchase the advertised product or service. If the goal is to
increase online spending among consumers, particularly female consumers, then consumers'
perceptions of online shopping are ultimately matters the most. Presumably, the more positive
consumers perceive the online buying experience the more likely they will make online purchases. The
primary construct that we believe will have a bearing on perceptual differences between male and
female internet shoppers is emotion. Related to emotion are two additional constructs, trust and
convenience. (Robertson , Zielinski and Ward, 1984)