Professional Documents
Culture Documents
Digital Marketing
1. Introduction 1
2. Literature Review 3
4. Research Design 6
5. Sampling Design 7
6. Formulation of Hypothesis 7
7. Analysis of Data 14
9. Benefits of Study 20
10. Limitations 21
11. References 21
12. Annexure 22
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INTRODUCTION
What is E-Commerce?
Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as mobile applications,
E-mail.
E-Commerce purchases includes mobile phones, apparels & accessories, electronic appliances,
Desktops & Laptops, etc.
There are several different types of E-commerce, the most common are B2B (business-to-
business), B2C (business-to-consumer) and C2C (consumer-to-consumer) e-commerce
1. Online retailing
2. Electric markets
3. Online auctions.
Development of E-Commerce
In the year 1971 or 1972, the ARPANET was used to arrange a cannabis sale between students
at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of
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Technology, later described as "the seminal act of e-commerce" in John Markoff's book “What
the Dormouse Said”.
In 1995, Jeff Bezos launches Amazon.com (US) and the first commercial-free 24-hour.
In India, the Information Technology Act 2000 governs the basic applicability of e-commerce.
Amid 2007, Flipkart (India) was founded by Bansal brothers which is currently owned by
Walmart (77% stake).
Features
24x7 Service availability − E-commerce automates the business of enterprises and the
way they provide services to their customers. It is available anytime, anywhere.
Improved Sales − Using e-commerce, orders for the products can be generated
anytime, anywhere without any human intervention. It gives a big boost to existing
sales volumes.
Forms
The first category is business based on types of goods sold (involves everything from ordering
"digital" content for immediate online consumption, to ordering conventional goods and
services, to "meta" services to facilitate other types of electronic commerce).
1. Direct Traffic
2. Comparison Shopping Engines (CSEs)
3. Marketplaces
4. Mobile
5. Social
Major E-Commerce players in INDIA.
LITERATURE REVIEW
The following studies are reviewed in the following section.
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 behaviour. 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 behaviour.
A Commerce Net/Nielson Media Research Survey(1999) found out that 73% users used
the Net to window shop,53% used the Net to make purchase decision, but only 15% bought
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online. According to a NFO Interactive (1999) study released in May 1999 by online market
research firm NFO Interactive, 24.1% of online consumers believe that their internet/online
shopping use will decrease the amount they spend on products and services at walk-in type
neighbou45rhood or regional retail stores, by the end of 1999.The survey also found that 23.8
% of online shoppers said their internet/online purchasing has increased to the total amount of
money they have typically spent in a year or products & services.
Benedict et al (2001) study reveals that perceptions toward online shopping and intention to
shop online are not only affected by ease of use, usefulness, and enjoyment, but also by
exogenous factors like consumer traits, situational factors, product characteristics, previous
online shopping experiences, and trust in online shopping.
An OFT Market Study (2007) study establishes the scale and growth of internet shopping is
impressive. In 2005, the most recent year for which reliable figures are available, sales to
households were over £21bn – a fourfold increase during the previous three years. It is
benefiting millions of people and thousands of businesses. Over 20 million UK adults
shopped online in 2005, with 56 per cent of internet shoppers we surveyed having spent over
£500 each during the year. In the same year, an estimated 62,000 UK businesses were selling
online to households. Retailers sell online to reach more customers, to sell around the clock
and in reaction to competition from rivals.
Isaac J. Gabriel (2007) studied online consumers’ risk perceptions and will reveal a
“cognitive map” of their attitudes and perceptions to online risks. It was accomplished by
composing a master list of online hazards and activities, measuring current level of perceived
risk, desired level of risk, and desired level of regulation associated with them, composing a
master list of online risk characteristics, determining online risk dimensions, and revealing
position of each online hazard or activity in the factor space diagram.
Gudas Van Noord, M.A., Peter Kirchhoff, Ph.D. and Bob M. Fennis, Ph.D. (2007) in
two experiments, the impact of shopping context on consumers’ risk perceptions and
regulatory focus was examined. They predicted that individuals perceive an online (vs.
conventional) shopping environment’s riskier and that an online shopping environment, by its
risky nature, primes a prevention focus. The findings in Study 1 demonstrate these effects by
using self-report measures for risk perception and prevention focus. In Study 2, replicated
these findings and demonstrated that the effect of an online shopping environment carries
over to behavior in a domain unrelated to shopping.
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Yu-Je Lee, Chin-Lin Huang, Ching-Yaw Chen(2009) The purpose of this study is to use
structural equation modeling (SEM) to explore the influence of online bookstore consumers’
perception on their purchase intention. Through literature review, four constructs were used
to establish a causal relationship between perception of online shopping and consumers’
purchase intention. Results of this study show that product perception, shopping experience,
and service quality have positive and significant influence on consumers’ purchase intention,
but perceived risk has negative influence on consumers’ purchase intention, and shopping
experience is most important.
Soonyong Bae, Taesik Lee (2010) they investigates the effect of online consumer reviews on
consumer’s purchase intention. In particular, they examine whether there are gender
differences in responding to online consumer reviews. The results show that the effect of
online consumer reviews on purchase intention is stronger for females than males. The
negativity effect, that consumers are influenced by a negative review more than by a positive
review, is also found to be more evident for females. These findings have practical
implications for online sellers to guide them to effectively use online consumer reviews to
engage females in online shopping.
Sayed Rajab Nikhashem, Farzana Yasmin, Ahsanul Haque. (2011) Studied that
investigated peoples‟ perception of online buying tickets (e-ticketing) as well as why some
people use this facility while some who do not use it stick to the traditional way to fulfill their
needs. The outcome of this research showed a comprehensively integrated framework that
can be utilized by policy makers and business enterprises to understand the dynamic
relationships among dimensions of perceived risk, user trustworthiness, usefulness,
familiarity and confidence. Also, this study considered how price perception and internet
security can be utilized to understand the consumers‟ perception.
perception of 13 items, and three factors, “convenience, anxiety regarding security, and “poor
navigation”, were extracted. A model was created reflecting the direct influence of these
three “perception”-related factors on behavior or their indirect influence through consumers’
attitudes.
Susan Rose, Neil Hair and Moira Clark (2011) identified online purchase in particular
continues to rise, as adoption and penetration levels of Internet technology continuously
increase. By 2007, European Internet penetration stood at 43% of the population with a 231%
usage growth year on year. In North America, penetration was at 71% of the population with
120% growth (Internet World Stats 2007). This is also evidenced by increasing levels of
online sales, which in the US reached US$128.1bn in 2007 and were projected to reach
US$165.9bn by 2009 (source: US Census Bureau 2009).
RESEARCH DESIGN
Here in our research we are have used the descriptive study to show the consumer perception
and buying behaviour with respect to online shopping.
The data was collected through structured questionnaire and a sample size of about 111
respondents which was judgemental were considered and the study took around 10 days. For
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the analysis of data various tools like tabulation, chi-square test, frequency distribution, cross
tabs, and charts were used with help of SPSS software.
SAMPLING DESIGN
A random sample of 111 respondents residing in Mumbai was taken and would cover people
of different age groups, occupations and gender. They are lot of questions in the survey to find
the best result and the sample will be taken by judgemental sampling which is also called as
non- random sampling method.
FORMULATION OF HYPOTHESIS
1). Ho: - There is no direct relationship between the gender and responses to having a physical
store for online shopping.
H1:- There is a significant relationship between the gender and responses to having a
physical store for online shopping.
Chi-Square Tests
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.04.
Correlations
N 111 111
Since the significance value is > 0.05, we accept Ho and conclude that there is no
relation between gender and responses to having a physical store for online shopping.
2). Ho: - There is no direct relationship between the age and responses to having a physical
store for online shopping.
H1:- There is a significant relationship between the age and responses to having a physical
store for online shopping.
Age Group * Do you prefer online shopping instead of offline shopping.? Crosstabulation
Do you prefer online shopping instead of offline
shopping.?
Yes, Most of the No,not at
Always time Sometimes all Total
Age 0-15 Count 1 1 2 0 4
Group Expected .5 1.4 2.0 .0 4.0
Count
16-30 Count 8 32 44 0 84
Expected 10.6 30.3 42.4 .8 84.0
Count
30-45 Count 5 6 8 1 20
Expected 2.5 7.2 10.1 .2 20.0
Count
45-60 Count 0 1 2 0 3
Expected .4 1.1 1.5 .0 3.0
Count
Total Count 14 40 56 1 111
Expected 14.0 40.0 56.0 1.0 111.0
Count
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Chi-Square Tests
a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .35.
Since the significance value is > 0.05, we accept Ho and conclude that there is no relation
between age and responses to having a physical store for online shopping.
3). Ho: - There is no direct relationship between the gender and people preferring online
shopping versus offline shopping.
H1:- There is a significant relationship between the gender and people preferring online
shopping versus offline shopping.
Crosstab
Count
Male 9 32 27 0 68
Gender
Female 5 8 29 1 43
Total 14 40 56 1 111
Chi-Square Tests
a. 2 cells (25.0%) have expected count less than 5. The minimum expected count is .39.
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Since the significance value is < 0.05, we reject Ho and conclude that there is relation between
gender and people preferring online shopping versus offline shopping.
4). Ho: - There is no direct relationship between the age and people preferring online shopping
versus offline shopping.
H1:- There is a significant relationship between the age and people preferring online
shopping versus offline shopping.
Crosstab
Count
0-15 1 1 2 0 4
16-30 8 32 44 0 84
Age Group
30-45 5 6 8 1 20
45-60 0 1 2 0 3
Total 14 40 56 1 111
Chi-Square Tests
a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .03.
Since the significance value is > 0.05, we accept Ho and conclude that there is no relation
between age and people preferring online shopping versus offline shopping.
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5). Ho: - There is no direct relationship between the age and frequency of online shopping.
H1:- There is a significant relationship between the age and frequency of online shopping.
Once
Once a 2-3 times Once a every 3
week a month month months Other
Age 0-15 Count 0 1 1 1 1 4
Group
Expected .1 .8 .9 1.8 .4 4.0
Count
16-30 Count 1 15 22 39 7 84
Expected 3.0 15.9 19.7 37.8 7.6 84.0
Count
30-45 Count 3 5 3 7 2 20
Expected .7 3.8 4.7 9.0 1.8 20.0
Count
45-60 Count 0 0 0 3 0 3
Expected .1 .6 .7 1.4 .3 3.0
Count
Total Count 4 21 26 50 10 111
Chi-Square Tests
a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .11.
Since the significance value is > 0.05, we accept Ho and conclude that there is no relation
between age and frequency of online shopping.
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6). Ho: - There is no direct relationship between the gender and frequency of online shopping.
H1:- There is a significant relationship between the gender and frequency of online
shopping.
Correlations
N 111 111
N 111 111
Correlations
N 111 111
Spearman's rho
Correlation Coefficient .124 1.000
How often do you shop
Sig. (2-tailed) .194 .
online?
N 111 111
From the above table, we see that the Karl Pearson coefficient of correlation r=0.094
which indicate a very weak positive correlation between age and frequency of online shopping.
Also the significance value is 0.325 which is greater than 0.05 hence we accept H0 and
conclude that there is no significant correlation between age and frequency of online shopping.
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7). Ho: - There is no direct relationship between the gender and frequency of online shopping.
H1:- There is a significant relationship between the gender and frequency of online
shopping.
Age Group * Do you prefer online shopping instead of offline shopping.? Crosstabulation
Do you prefer online shopping instead of offline
shopping.?
Yes, Most of the No,not at
Always time Sometimes all Total
Age 0-15 Count 1 1 2 0 4
Group Expected .5 1.4 2.0 .0 4.0
Count
16-30 Count 8 32 44 0 84
Expected 10.6 30.3 42.4 .8 84.0
Count
30-45 Count 5 6 8 1 20
Expected 2.5 7.2 10.1 .2 20.0
Count
45-60 Count 0 1 2 0 3
Expected .4 1.1 1.5 .0 3.0
Count
Total Count 14 40 56 1 111
Expected 14.0 40.0 56.0 1.0 111.0
Count
Chi-Square Tests
a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .03.
Since the significance value is > 0.05, we accept Ho and conclude that there is no relation
between age and frequency of online shopping.
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ANALYSIS OF DATA
Online shopping is more convenient than offline shopping?
Crosstab
Count
0-15 1 2 1 0 0 4
16-30 11 38 29 6 0 84
Age Group
30-45 5 6 5 3 1 20
45-60 0 1 2 0 0 3
Total 17 47 37 9 1 111
Crosstab
Count
Male 12 34 19 3 0 68
Gender
Female 5 13 18 6 1 43
Total 17 47 37 9 1 111
From the above charts, it is clearly seen that the people feel that the online shopping is more
convenient than offline shopping.
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Crosstab
Count
0-15 3 1 0 0 4
16-30 44 29 3 8 84
Age Group
30-45 11 6 1 2 20
45-60 0 3 0 0 3
Total 58 39 4 10 111
Crosstab
Count
Male 33 24 3 8 68
Gender
Female 25 15 1 2 43
Total 58 39 4 10 111
Chart Title
70
60
50
40
30
20
10
0
Male Female Total
We can see the effect of Digital India, where nearly 50% of the people shop digitally and
others still use cash as mode of transaction.
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Crosstab
Count
0-15 0 1 1 1 1 4
16-30 1 15 22 39 7 84
Age Group
30-45 3 5 3 7 2 20
45-60 0 0 0 3 0 3
Total 4 21 26 50 10 111
Crosstab
Count
Male 2 14 21 24 7 68
Gender
Female 2 7 5 26 3 43
Total 4 21 26 50 10 111
Chart Title
120
100
80
60
40
20
0
Once a week 2-3 times a month Once a month Once every 3 Other Total
months
Here we can see that, people tend to shop once in every three months.
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Do you think, User Interface of the website plays a role in online shopping?
Crosstab
Count
Do you think, User Interface of the website plays a role in online Total
shopping..?
0-15 2 0 0 2 4
16-30 8 22 37 17 84
Age Group
30-45 8 7 4 1 20
45-60 0 2 0 1 3
Total 18 31 41 21 111
Crosstab
Count
Do you think, User Interface of the website plays a role in online Total
shopping..?
Male 11 18 25 14 68
Gender
Female 7 13 16 7 43
Total 18 31 41 21 111
It seems to that people feel that UI plays an important role in the shopping process, but it
doesn’t effect much since around 44% feels that UI doesn’t play a major role in shopping
experience.
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How much the timely delivery of product affect your shopping experience?
Crosstab
Count
How much the timely delivery of products affect your shopping experience? Total
0-15 0 0 1 2 1 4
16-30 3 20 16 39 6 84
Age Group
30-45 1 4 5 9 1 20
45-60 0 0 0 2 1 3
Total 4 24 22 52 9 111
Crosstab
Count
How much the timely delivery of products affect your shopping experience? Total
Male 3 16 11 32 6 68
Gender
Female 1 8 11 20 3 43
Total 4 24 22 52 9 111
Chart Title
60
50
40
30
20
10
0
Very Less Less No Effect Very Much To a Large Extent
Timely delivery of the product in online shopping plays a major role, with above 54%
stating that delivery timely delivery matters a lot.
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Crosstab
Count
0-15 1 1 2 0 4
16-30 8 32 44 0 84
Age Group
30-45 5 6 8 1 20
45-60 0 1 2 0 3
Total 14 40 56 1 111
Crosstab
Count
Male 9 32 27 0 68
Gender
Female 5 8 29 1 43
Total 14 40 56 1 111
With Internet available & 24*7 service available, people are shopping nowadays from
ecommerce website. Our research shows that nearly 86% shop for sometimes and most of
the time from the ecommerce store.
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Nearly 50% of the people shop digitally and others still use cash as mode of
transaction.
People tend to shop once in every three months.
People feel that UI plays an important role in the shopping process, but it doesn’t
effect much since around 44% feels that UI doesn’t play a major role in shopping
experience.
With above 54% stating that delivery timely delivery matters a lot.
Nearly 86% shop for sometimes and most of the time from the e-commerce store.
There is no relation between gender and responses to having a physical store for
online shopping.
There is no relation between age and responses to having a physical store for online
shopping.
There is relation between gender and people preferring online shopping versus offline
shopping.
There is no relation between age and people preferring online shopping versus offline
shopping.
There is no significant correlation between age and frequency of online shopping.
There is no relation between age and frequency of online shopping.
There is no significant correlation between age and frequency of online shopping.
There is no relation between age and frequency of online shopping.
At last, Online shopping is more convenient than offline shopping.
BENEFITS OF STUDY
It will help understand the changing perception of people towards online shopping.
It will provide statistically backed data regarding variations in consumer buying behavior due
to different variable factors like gender, age and occupation.
It attempts to establish the scale and growth of online shopping and preference of consumers
towards online shopping over traditional offline shopping
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It will help entrepreneurs understand the opportunities and scope for venturing in new online
payment or shopping portals.
It can help existing online shopping portals to understand and work on the inconvenience
faced by their customers due to any factors like delivery time, user interface etc.
It will help brick and mortar sellers to understand the benefit of selling online in this day and
age.
LIMITATIONS
The study is limited to Nerul and nearby region only. The scope of research can be made
wider by covering more places.
The sample size does not give clear representation of global scale as the size of sample taken
for study is small. The size of sample can be increased to get more accurate results.
Time constraint was also one of the limitations of the research. So if sufficient time is taken
to conduct the research, better results can be obtained.
The numbers of variables selected for the present study are few in number.
REFERENCES
Ali, Pervaiz; Sankaran, Sudha, “Online Shopping Customer Satisfaction and Loyalty in
Norway”, Published by LAP Lambert Academic Publishing (2011)
Chatter, M. (2009). Overview of the Technology Acceptance Model: Origins,
Developments and Future Directions. Sprouts: Working Papers on Information Systems,
09-37.
Chen, Q., Clifford, S.J. and Wells, W., “Attitude Toward the Site: New Information”,
Journal of Advertising Research, Vol. 42, No. 2: 33-45, 2000.
Chuleeporn Changchit, “Consumer Perceptions Of Online Shopping”, Issues in
Information Systems, Volume VII, No. 2, 2006 pp.177-181.
DNA. (2014, 09 20). Retrieved from DNA web site:
http://www.dnaindia.com/scitech/report-india-s-e-commerce-industry-may-reach-70-
billion-by-2020-1960504 retrieved on 20-09-2014
Economictimes. (2014, 09 20). Retrieved from Economic times website:
http://articles.economictimes.indiatimes.com/2013-12-30/news/45711192_1_e-
commerce-market-online-shoppers-survey retrieved on 20/09/2014
Gudas van noort, peter, bob, and (2007). “Online versus conventional shopping
consumer’s risk perception and regulatory focus.” Cyber psychology and behavior.
Volume 10.
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Guo Jun,Noor Ismawati Jaafar, “A study on consumers Attitude towards Online Shopping
in Electronic Commerce Research,Vol. 8 No 1,2007,pp 19
Gurinder S Shergill, Zhaobin Chen, “Web based Shopping: Consumers’ Attitudes
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Indiasocial. (2014, 09 20). Retrieved from Indiasocial web site:
http://www.indiasocial.in/nielsen-global-online-shopping-report/ retrieved on 20-09-2014
Kotler, P. (2012). Marketing Management. US: Pearson. Isaac j. Gabriel (2007),
“towards understanding risk perception of online consumer” proceedings of the 2007
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Kotler Philip ‘Winning on the Web’, Web Metrics paper, 2002
Peterson, R.A., Balasubramanian, S. and Bronnenberg, B. J., “Exploring the implications
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Soonyong bae, taesik lee (2011) “Gender difference in consumer’s perception of online
consumer reviews” electron comer res.
ANNEXURE
Data Collection
Gender
->Male
->Female
Occupation
->Student
->Homemaker
->Entrepreneur
->Employee
->Other
Do you think, User Interface of the website plays a role in online shopping?
-> > 25%
-> <25 - 50%>
-> <50%-75%>
-> <75%