PROJECT REPORT

ON

CONSUMER SATISFACTION IN ONLINE SHOPPING

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE
DEGREE OF BACHELOR OF COMMERCE
(HONOURS) 2019-2020
UNDER THE GUIDANCE OF
Ms. AASHU AGGARWAL
ASSISTANT PROFESSOR, VIPS
SUBMITTED BY:
HARMANDEEP SINGH
ROLL NO. 03517788819
BATCH NO. BCOM (H) SEM 2nd SECTION A

Vivekananda Institute of Professional Studies

AU Block (Outer Ring Road) Pitampura
Delhi – 110034

1
 Table of Contents
PARTICULARS PAGE NO.

Student Declaration..……………………………………………………...……… 3

Certificate from Guide……….....………………………………………..……… 4

Acknowledgement……………………………………………………….………... 5

Executive Summary………….…………………………………………………… 6

Chapter Scheme

• Chapter 1: Introduction ……………………………………………………7

1. A brief………………………………………………………………. 8
2. Rationale for choosing this topic…………………………………...10
3. Research objectives………………………………………………...10
4. Research methodology of the study………………………………..11

• Chapter 2: Company Profile and About the Topic……………………….13

1. About the Company………………………………………………..14
2. About the Topic……………………………………………............18

• Chapter 3: Data Analysis and Findings……………..…………………...26

• Chapter 4: Conclusions And Suggestions………………………………..44

Bibliography………………………………………………………………………47

Questionnaire ……………………………………………………………………..48

2
 STUDENT DECLARATION

This is to certify that I have completed the Project titled “CONSUMER AWARENESS IN

ONLINE SHOPPING” under the guidance of “Ms. AASHU AGGARWAL” in partial fulfilment

of the requirement for the award of degree of Bachelor of Commerce (BCOM [H]) at

Vivekananda Institute of Professional Studies, Vivekananda School of Business Studies, New

Delhi. This is an original piece of work and has not been submitted elsewhere.

HARMANDEEP SINGH

3
 CERTIFICATE

This is to certify that the project titled “CONSUMER SATISFACTION IN ONLINE

SHOPPING” is an academic work done by “HARMANDEEP SINGH” submitted in the partial

fulfillment of the requirement for the award of the degree of Bachelor Of Commerce (BCOM

[H]) from Vivekananda Institute of Professional Studies, Vivekananda School of Business

Studies, New Delhi, under my guidance & direction. To the best of my knowledge and belief

the data & information presented by him/her in the project has not been submitted earlier.

Ms. AASHU AGGARWAL

4
 ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to Ms. AASHU AGGARWAL for giving me an opportunity

to enhance my skill in my project. I am thankful for her guidance, patience and consummate support. I

extend my heartiest thanks to her for enlightening my path. Without her sincere advice, this project has

been impossible .Moreover, I would also like to thank the various people who were involved with this

project and gave me invaluable guidance in this regard. Without their help, this project would not have

been as comprehensive and detailed as it is. I also feel grateful and elated in expressing my

indebtedness to all those who have directly or indirectly helped me in accomplishing this research.

5
 EXECUTIVE SUMMARY

This study endeavors to understand the customer satisfaction in online shopping, while
investigating the major reasons & factors which influence a customer’s decision for purchasing
online and the level of satisfaction achieved by him/her by making online purchases.

A Survey was conducted in various people by distributing questionnaires online to gather data for
this research.

MS Excel 2007 software package was used to store collected data, analyze it graphically and to
test the research.

From the findings, it was discovered that the respondents used internet to purchase products online
owing to factors like Quality of products, Speed of delivery, Low prices, difference between
expected & real products, repurchases option, after sales services, customer care services, easy
online payments, returning/replacing, special discounts/offers, recommending others to buy online
and variety of choice available

Furthermore, the result of hypotheses established that the customers were overall satisfied with
their online shopping experience.

Finally, the study remained successful presenting positive results with respect to the satisfaction
level of customers towards online shopping.

6
 CHAPTER-1

INTRODUCTION

7
 INTRODUCTION
Online shopping or e-shopping is a form of electronic commerce which allows consumers to
directly buy goods or services from a seller over the Internet using a web browser. Alternative
names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online
storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an
online retailer's mobile optimized online site or app.

An online shop evokes the physical analogy of buying products or services at a bricks-and- mortar
retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. In
the case where a business buys from another business, the process is called business-to-business
(B2B) online shopping. The largest of these online retailing corporations in India are Flipkart.com,
Amazon.com, Snapdeal.com, eBay.com, Shopclues.com, Myntra.com, Homeshop18.com,
Naaptol.com, Jabong.com etc.

E-Commerce statistics
Statistics show that in 2012, Asia-Pacific increased their international sales over 30% giving them
over $433 billion in revenue. That is a $69 billion difference between the U.S. revenue of
$364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in the year 2013
putting them ahead by more than one-third of all global ecommerce sales.

Customers
Online customers must have access to the Internet and a valid method of payment in order to
complete a transaction. Generally, higher levels of education and personal income correspond to
more favorable perceptions of shopping online. Increased exposure to technology also increases
the probability of developing favorable attitudes towards new shopping channels.

Logistics

Consumers find a product of interest by visiting the website of the retailer directly or by searching
among alternative vendors using a shopping search engine.

Once a particular product has been found on the website of the seller, most online retailers use
shopping cart software to allow the consumer to accumulate multiple items and to adjust quantities,
like filling a physical shopping cart or basket in a conventional store. A "checkout" process follows

8
(continuing the physical-store analogy) in which payment and delivery information is collected, if
necessary. Some stores allow consumers to sign up for a permanent online account so that some or all
of this information only needs to be entered once. The consumer often receives an e-mail confirmation
once the transaction is complete.

Payments

Online shoppers commonly use a debit card, credit card or a PayPal account in order to make
payments. However, some systems enable users to create accounts and pay by alternative means, such
as:
• Cash on delivery (C.O.D)
• Debit card
• Credit card
• Gift cards

Product delivery

Once a payment has been accepted, the goods or services can be delivered in the following ways:

• Downloading/Digital distribution: The method often used for digital media products such
as software, music, movies, or images.
• Drop shipping: The order is passed to the manufacturer or third-party distributor, who then
ships the item directly to the consumer, bypassing the retailer's physical location to save
time, money, and space.
• Shipping: The product is shipped to a customer-designated address.

Shopping cart systems

• Simple systems allow the off-line administration of products and categories. The shop is
then generated as HTML files and graphics that can be uploaded to a webspace. The
systems do not use an online database.
• Other solutions allow the user to register and create an online shop on a portal that hosts
multiple shops simultaneously from one back office.
• Commercial systems can also be tailored so the shop does not have to be created from
scratch.

9
 RATIONALE FOR CHOOSING THIS TOPIC

Online shopping has become a unique and easy to use way of buying all types of products online at
just one click. Internet banking, debit cards & cash on delivery have made buying online a great
experience.

In a state like Delhi, though there is an eminent presence of multi-brand retail outlets of world –
renowned brands, but still, variety & choice of products in different genres remains missing. Today’s
youth is quiet fashion conscious and wishing to experiment with all types of available choices of
brands. The unavailability of choice diverts his/her attention to online shopping where wide range of
choice is available at different prices.

The need for this study hence arose to determine the approximate level of satisfaction attained by the
people in their online shopping activity.

RESEARCH OBJECTIVES

The present research work is designed to achieve the following specific objectives:-

1. To study the level of customer satisfaction in online shopping among the people of Delhi.
2. To study the impact of online presence & buying behaviour on level of customer satisfaction.
3. To find out which e-commerce portal has highest customer base among the customers.

10
 RESEARCH METHODOLOGY

The present study has been carried out to study the level of customer satisfaction in online shopping.

SOURCES OF DATA

The study is based on both primary and secondary sources.

Primary Source
The primary study was conducted in various people. The sample of 100 youth has been randomly
selected. In order to obtain the required information, a well designed questionnaire was administered
to potential respondents through Offline & Online media. The questionnaire covered different aspects
of youth categorized in four genres namely demographic information, online presence, buying
behaviour & customer satisfaction. The information thus collected was analyzed with the help of
proficient statistical tools and techniques.

Secondary Source
The secondary data was collected after a thorough study of different research papers that have been
published on the similar topics. Various Research & educational websites, National and International
Surveys that have been conducted earlier were also used to frame the questionnaire.

SAMPLES

• Sampling Technique
Random sampling technique has been used.
• Sample Size
A sample of 100 customers has been taken for the purpose of study.

INSTRUMENTS USED

The instrument used for calculations are MS Excel 2007.

11
 LIMITATIONS

• Some of the customers were not responsive enough. Possibility of error in data collection can
be there because many of the customers may have not given actual answers of the
questionnaire.

• Some respondents were reluctant to divulge personal information which can affect the validity
of all responses. This may have affected the quality of answers.

12
 CHAPTER-2
ABOUT THE TOPIC

13
 ABOUT THE COMPANY

History

English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a
modified domestic TV to a real-time transaction processing computer via a domestic telephone
line. He believed that videotex, the modified domestic TV technology with a simple menu-driven
human–computer interface, was a new, universally applicable, participative communication
medium — the first since the invention of the telephone.' This enabled 'closed' corporate
information systems to be opened to 'outside' correspondents not just for transaction processing
but also for e-messaging and information retrieval and dissemination, later known as e-business.

During the 1980s he designed, manufactured, sold, installed, maintained and supported many
online shopping systems, using videotex technology.

The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for
commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994:
online banking, the opening of an online pizza shop by Pizza Hut, Netscape's SSL v2 encryption
standard for secure data transfer, and Intershop's first online shopping system. Immediately after,
Amazon.com launched its online shopping site in 1995 and eBay was also introduced in 1995.

Following the great success of Amazon in international market, a team of two Indian entrepreneurs
launched a similar portal Flipkart.com (5th September 2007) which is today the pioneer of Indian
online shopping industry.

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 ONLINE SHOPPING PORTALS IN INDIA

With the advent of e-commerce technology in India, Online shopping has become a most-liked
trend. People have been enjoying the convenience of having their order shipped right to their
doorstep. But people often get confused in selection of reliable sites as there are a plethora of sites,
and everyone claims to be reliable. But in actual only few are up to the mark. Thus, on the basis
of customer review, top 11 online shopping sites in India are:

Flipkart

Flipkart.com is the market leader in Online shopping in our country. Here you can buy almost
everything ranging from books, bags, toys, baby care, belts, watches, television, cell phones to
refrigerators, hard drives, motorcycles, air conditioners, and a lot of various items. Here you can get
easy discounts, coupons and many other deals which will keep you buying from Flipkart.

Ebay

The world leader in online shopping store has stamped its mark in India also. EBay is a shopping store
in which a wide variety of goods, services and products are bought and sold. EBay sells fresh new
products along with used products. It sometimes holds up auction for some products also. EBay and
Flipkart are on a neck to neck competition for becoming the best online shopping site in India.

Snapdeal

Snapdeal is one of India’s largest e-commerce website with respect to the number of transactions in a
single day. Products such as watches, hard drives, laptops, and computers can be bought at a very
cheap price. It provides some heavy discounts on its items. Operating in only a few cities but the
transaction rate is very high. It ranks amongst the top players in best online shopping sites in India.

15
Shopclues

Shopclues is an amazing online shopping store to buy products. Shopclues, famous for its Jaw
Dropping Deals, provides commodities at an extremely cheap price. It offers wide variety of goods
such as cameras, cosmetics, pendrives etc.

Myntra

Recently taken over by Flipkart, Myntra aims at redefining the fashion mantra of Indians. It offers
fashion products such as T-shirts, jeans, watches, shoes, belts and other accessories.

Naaptol

Naaptol.com allows its customers to avail various options for a particular product. This website is
amongst the most popular online shopping sites in India. The name itself means comparison before
buying any product. The details of the products are displayed to the customer, leaving behind no
confusion in the minds of its customer.

Homeshop18

This website contains a range of kitchen appliances, household products, laptops, shoes, gifts etc.
Homeshop18. Owned by Network18, a television and a media marketing company, Homeshop18 is
the first company to launch its 24 x 7 open Home shopping TV channel. This website has been awarded
the “Best Shopping Site” by PC World Magazine in 2008. Because of its advertisement, the popularity
has been rising to new peaks. It is also becoming one of the strongest contenders for best online
shopping sites in India.

Jabong

This site is gaining popularity day by day because of its efficient work process and availability of
number of branches in most parts of the country. Soon it will be in race amongst the present best online
shopping sites in India.

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Tradus

Tradus is a Europe-based online shopping store which provides variety of online products and
commodities. Shipping is done for free but only to a few parts of the country. Discounted prices
of products are available in this website.

Yebhi

Yebhi is also referred as the “Online Apparel Store of India”. This website provides a wide
collection of apparels, bags, jewelry. Yebhi is the undisputed king of Online Apparel in India.
Lucrative prices along with discounts makes the customers buy in this shopping store.

Buytheprice

Shop Online – Buy Mobile Phones, Laptops, Digital Cameras, MP3 Players, TVs and Hard Disks
+ Free Shipping. An interesting feature about this website is that the prices of the products go on
decreasing if more and more people buy them. The price of the book goes down from 400 to 300
if instead of a single person, 10 people buy it. The customers can take profitable advantage of this
option.

17
 ABOUT THE TOPIC

ONLINE SHOPPING

R. L. Kenney (1999) states Online Shopping is the conduct of business via internet which relates
to activities of information searching, information sharing, purchasing or exchanging products and
services; also maintaining customer relationship without face to face meeting unlike transaction
done in traditional way. Often online shopping is wrongfully perceived as a way of doing business
between web retailers and web end customers but rather e-commerce encompasses an entire range
on conducting online business whether it’s the interaction between business to business, business
to customer, and business to government.

According to UCLA Center for Communication Policy (2001), online shopping has become the
third most popular Internet activity, immediately following e-mail using/instant messaging and
web browsing. It is even more popular than seeking out entertainment information and news, two
commonly thought of activities when considering what Internet users do when online. Of Internet
users, 48.9 percent made online purchases in 2001, with three-quarters of purchasers indicating
that they make 1-10 purchases per year.

Liang and Lai (2000) state that online shopping possesses five steps similar to those associated
with traditional shopping behavior. In the typical online shopping process, when potential
consumers recognize a need for some merchandise or service, they go to the Internet and search
for need-related information. However, rather than searching actively, at times potential
consumers are attracted by information about products or services associated with the felt need.
They then evaluate alternatives and choose the one that best fits their criteria for meeting the felt
need. Finally, a transaction is conducted and post-sales services provided. Online shopping attitude
refers to consumer's psychological state in terms of making purchases on the Internet.

According to Kotler & Keller (2009), a buyer goes through five stages while making a decision
to purchase. These stages are best explainable when a buyer goes for buying costly items, such as

18
a house, a car, diamond jewelry etc. However, in day- to- day purchase, consumers may not go
through all these stages, since some commodes do not need information, and based on buyer’s
previous experience they will visit a store for the purchase. These stages are (Figure 1): “problem
recognition, information search, evaluation of alternatives, purchase decision, and purchase
behavior”.

CUSTOMER SATISFACTION

Tse and Wilton, (1988) & Oliver (1999) define Customer satisfaction is defined as an "Evaluation
of the perceived discrepancy between prior expectations and the actual performance of the
product".

Hennig-Thurau and Klee (1997) states Satisfaction of customers with products and services of a
company are considered as most important factor leading toward competitiveness and success.
Customer satisfaction is actually how customer evaluates the ongoing performance.
According to Kim, Park and Jeong (2004) customer satisfaction is customer’s reaction to the state
of satisfaction, and customer’s judgment of satisfaction level. Customer satisfaction is very
important in today’s business world as according to Deng et al., (2009) the ability of a service
provider to create high degree of satisfaction is crucial for product differentiation and developing
strong relationship with customers.

Customer’s involvement is also important as when buyer consider the product important and invests
time to seek information then it ultimately enhances the satisfaction level (Russell- Bennett,
McColl-Kennedy and Coote, 2007). This satisfaction may influence the concerned company by
repurchase, purchase of more products, positive word of mouth and willingness of customer to pay
more for the particular brand. Any business is likely to lose market share, customers and investors if
it fails to satisfy customers as effectively and efficiently as its competitors is doing.

19
 ADVANTAGES OF ONLINE SHOPPING

Convenience

Online stores are usually available 24 hours a day, and many consumers have Internet access both
at work and at home.

Ease of exchange

In the event of a problem with the item (e.g., the product was not what the consumer ordered, the
product was not satisfactory), consumers are concerned with the ease of returning an item in
exchange for either the correct product or a refund. Consumers may need to contact the retailer,
visit the post office and pay return shipping, and then wait for a replacement or refund.

Information and reviews

Online stores must describe products for sale with text, photos, and multimedia files, whereas in a
physical retail store, the actual product and the manufacturer's packaging will be available for
direct inspection (which might involve a test drive, fitting, or other experimentation).

Some stores even allow customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products. Reviews and even some blogs give
customers the option of shopping for cheaper purchases from all over the world without having to
depend on local retailers.

Price and selection

One advantage of shopping online is being able to quickly seek out deals for items or services
provided by many different vendors (though some local search engines do exist to help consumers
locate products for sale in nearby stores). Search engines, online price comparison services and
discovery shopping engines can be used to look up sellers of a particular product or service.

Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending
on the jurisdiction, a lack of sales tax may compensate for this.

20
 DISADVANTAGES OF ONLINE SHOPPING

Fraud and security concerns

Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of
fraud than face-to-face transactions. Merchants also risk fraudulent purchases using stolen credit
cards or fraudulent repudiation of the online purchase. However, merchants face less risk from
physical theft by using a warehouse instead of a retail storefront.

Lack of full cost disclosure

The lack of full cost disclosure may also be problematic. While it may be easy to compare the base
price of an item online, it may not be easy to see the total cost up front. Additional fees such as
shipping are often not be visible until the final step in the checkout process. The problem is
especially evident with cross-border purchases, where the cost indicated at the final checkout
screen may not include additional fees that must be paid upon delivery such as
duties and brokerage.

Privacy

Privacy of personal information is a significant issue for some consumers. Many consumers wish
to avoid spam and telemarketing which could result from supplying contact information to an
online merchant. In response, many merchants promise to not use consumer information for these
purposes.

Product suitability

Some non-digital products have been more successful than others for online stores. Products less
suitable for e-commerce include products that have a low value-to-weight ratio, products that have
a smell, taste, or touch component, products that need trial fittings—most notably clothing—and
products where colour integrity appears important. Nonetheless, some web sites have had success
delivering groceries and clothing sold through the internet is big business in the India.

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 IMPACT OF REVIEWS ON CONSUMER BEHAVIOUR

One of the great benefits of online shopping is the ability to read product reviews, written either
by experts or fellow online shoppers.

The Nielsen Company conducted a survey in March 2010 and polled more than 27,000 Internet
users in 55 markets from the Asia-Pacific, Europe, Middle East, North America, and South
America to look at questions such as "How do consumers shop online?", "What do they intend to
buy?", "How do they use various online shopping web pages?", and the impact of social media
and other factors that come into play when consumers are trying to decide how to spend their
money on which product or service. According to the research, reviews on electronics (57%) such
as DVD players, cellphones, or PlayStations, and so on, reviews on cars (45%), and reviews on
software (37%) play an important role in influencing consumers who tend to make purchases
online. Furthermore, 40% of online shoppers indicate that they would not even buy electronics
without consulting online reviews first.

In addition to online reviews, peer recommendations on online shopping pages or social media
websites play a key role for online shoppers when they are researching future purchases. 90% of
all purchases made are influenced by social media. Each day, over two million buyers are shopping
online for jewelry.

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 CUSTOMER SATISFACTION

Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported experience
with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals.”

Customer is the King

According to Business Dictionary, it is defined as “the degree of satisfaction provided by the

goods or services of a company as measured by the number of repeat customers.”

Customer satisfaction is the outcome felt by buyers who have expectation. Customers are satisfied
when their expectation are met and delighted when their expectations are exceeded. Satisfied
customers remain loyal longer, buy more, and are less sensitive and talk favorable about the
company. From this it is clear that the satisfied customer will be less sensitive towards the
fluctuating price and offensive marketing typically cost more than defensive marketing, because it
requires much effort and cost to induce satisfied customers to switch away from their current
suppliers.

We should also consider the fact that "the cost of attracting a new customer may be five times the
cost of keeping the current customer happy." Therefore the companies are intending in developing
stronger bones and loyalty with their customers.

It is seen as a key performance indicator within business and is often part of a Balanced Scorecard
Method of strategy design. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do

this, firms need reliable and representative measures of satisfaction.

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 FACTORS AFFECTING CUSTOMER SATISFACTION

Various factors affect the customer satisfaction levels in online shopping. Mentioned below are
some factors based on the Customer satisfaction model propounded by Jarvenpaa and Todd
(1996).

Quality

The quality of products plays a very important role in the level of satisfaction active by him/her
by usage of that product. If the quality of product is satisfactory, the buyer will definitely
recommend the product to others and at the same time prefer purchasing the same product to satisfy
his/her needs next time.

Delivery time

The time taken by the seller of product to deliver the product to the final customer is called the
delivery time for that product. The delivery time taken by the vendor decides the level of
satisfaction the customer will attain buying the product. Quick action approach is expected as a
part of increasing sales in online selling nowadays. Lesser is the delivery time, more is the level
of satisfaction achieved by the customer.

Low price

Price is another important factor of the strategy of marketing of a product. Price is defined as the
cost born by the customer in acquiring the product. The price of the product keeps on increasing
at every step as it passes on from the production unit to the factory warehouse to distributor to
wholesaler and finally to the retailer. Whereas in case of online shopping, the cost is low because
the product is sent directly from the manufacturer to customer.

Choice availability

There is a wide range of products available for shopping online as there is no need of stocking and
as soon as the order is received, it can be directly sent from the manufacturer to the customer.
Hence, the customer gets a wide range of choice to buy from the virtual products available online.

24
After-sales service

After-sales services are highly important to retain the customer for life long association. The better
the after sales services & customer care, better is the customer satisfaction.

Discounts/offers

Shopping online also provides eligibility to various discounts and offers on other purchases from
the same web portal. Buying a single product offers discount on the purchase of additional related
or diverse products. Come coupon codes can be used on next purchase to avail the discount. Offers
like free shipping & free product are also given to lure the customers. Such offers are not available
if the product is bought at a retail outlet.

Payment options

Availability of various payment options like Cash on Delivery provides an opportunity to buy the
product even if you don’t have cash right now as the payment is to be made once the product is
received. Some vendors also provide an opportunity to test and try the product and then make the
payment only when the customer is fully satisfied with the quality.

Expectation fulfillment

Before buying a product, the customer has some expectations which he wants the product to fulfill.
It is only if the product fulfills the expectations that it is able to satisfy the customers. Customer is
considered to be the king. Whatever he asks for; needs to be fulfilled. That’s how customer
satisfaction achieved.

25
 CHAPTER-3
DATA ANALYSIS
AND
FINDINGS

26
 DATA ANALYSIS
DEMOGRAPHIC PROFILE OF THE YOUTH
In order to collect the information to analyze the level of customer satisfaction in online shopping,
a questionnaire-based survey was conducted. The sample units were selected on the basis of
convenience and judgment sampling methods.

1. GENDER (MALE OR FEMALE)

GENDER
0

MALE
35
FEMALE
OTHER

65

2. AGE

AGE

2 3
17

Under 18 18-24

25-30 Above 30

78

27
Table-1

1. Do you have easy access to Internet?

Yes 95
No 5

Table-1 above shows the online presence of the respondents wherein 95% respondents stated that
they have very easy access to internet.

Are you aware of the Concept of Online Shopping? (N=100)

YES 97 NO 3

120

100 97%

800

60

40

200
0
3%

Yes No

Figure 1 Awareness regarding Online Shopping

The Figure 1 above clearly depicts that from amongst a sample of 100 respondents, 97% were
aware of the concept of online shopping. This simply explains the level of awareness regarding
Online shopping among people. People are very much aware of the concept and hence goes for
online shopping owing to a number of inherent advantages.

28
How often do you shop online? (N=100)

Twice a Week 2
Once a Week 9
Fortnightly 4
Monthly 39
Bi-Monthly 11
Once in Six Months 35

Frequency of Online shopping

Twice a week
39 Once a week
Fortnightly
Monthly
Bi-monthly
35
Once in six months

11

Figure 2 Frequency of Online Shopping

The Figure 2 above clearly depicts that from amongst a sample of 100, highest number of
respondents (39%) purchased online at least once in a month. This high frequency level of online
purchases makes it clear that the people are very much interested in online purchasing and hence
undertake online shopping at least once a month. The availability of vast choice and convenience
make online shopping a preferred trend amongst youth.

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Why you prefer Online Shopping over Retail Shopping? (N=100)

Convenient 21 Consumer reviews 8

Low Price 21 Guarantee/Warrantee 0
Time Saving 22 After sales services 1
Wide range of choice 27

Preference for Online Shopping

Convenient
Low Price
Time Saving
Wide range of choice
Consumer reviews

After sales services

Figure 3 Preferences for Online Shopping

The Figure 3 above clearly depicts that from amongst a sample of 100; there is a neck to neck
rating for the factors which motivate the buyers to purchase online. 27% respondents said they
prefer online shopping because of the wide range of choice available. Whereas, 22% said online
shopping is time saving followed by a rating 21% each for convenience & low price. The fashion-
freak youth prefers to choose from a wide range of choice available which is missing in normal
retail outlets. Hence, they prefer online shopping over traditional shopping. Online shopping is
time saving, convenient & available at low price. Hence, online shopping is preferred by youth
over traditional shopping.

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Which web portal do you prefer for Online Shopping? (N=100)

FlipKart.com 39
Ebay.in 7
Amazon.in 8
Snapdeal.com 16
Shopclues.com 0
Myntra.com 20
HomeShop18.com 4
Naaptol.com 0
Jabong.com 6
Tradus.in 0

Most preferred Online Shopping Portal

Flipkart
E-Bay
Amazon
39 Snapdeal
20
Shopclues
Myntra

Naaptol
16
Jabong
Tradus

Figure 4 Most Preferred Online Shopping Portal

The Figure 4 above clearly depicts that from amongst a sample of 100; maximum number of
youngsters (39%) prefers Flipkart.com to fulfill their online shopping needs followed by
Myntra.com (20%) which plays the role of market challenger. With the recent acquisition of
Myntra.com by Flipkart.com, as per this survey, the total market share of Flipkart become 59%
which makes it the undisputed market leader of Online Shopping market.

Thus, the survey helps determine that Flipkart.com is the most preferred Online Shopping
Portal among the consumers.
31
What sort of products do you prefer buying online? (N=100)

Books 12
Clothing/Footwear 50
Electronic Gadgets 28
Household Items 2
Cosmetics 1
Sports/Fitness 2
Toys 1
Furniture 0
Others 4

Products bought online

60
50
50
40
28
30
20 12
10

Figure 5 Products bought Online

The Figure 5 above clearly depicts that from amongst a sample of 100; maximum number of
youngsters (50%) prefers to buy Clothing/Footwear online followed by Electronic gadgets (28%)
& books (12%). The fashion statement of consumers is hence based on the online purchasing of
clothing/footwear as wide variety of branded products is available at comparable prices.

32
The quality of products purchased online is highly satisfactory

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 16 55 25 2 2

60
55

50

40

30
25

20 16

10

Strongly Agree Agree Neutral Disagreee Strongly

Disagree
Figure 6 Responses for Quality of Products

INFERENCE: The Figure 6 above clearly depicts that from amongst a sample of 100; maximum
number of respondents (55%) Agree with the fact that they are highly satisfied with the Quality of
products that they buy Online.

33
The speed of Delivery of products is fast

Strongly Agree Agree Neutral Disagree Strongly Disagree

12 59 24 4 1

70

59
60

50

40

30
24

20
12
10

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 7 Responses on Delivery Speed

INFERENCE: The inference drawn from Figure 7 states that with respect to the speed of delivery
of the products, 59% respondents Agree to the fact that the Speed of delivery of the products is
fast. 24% respondents are neutral to the speed of delivery of products purchased online whereas,
12% Strongly Agree to the fact that speed of delivery is fast.

34
The products available online are priced low in comparison to traditional market

Strongly Agree Agree Neutral Disagree Strongly Disagree

16 55 25 2 2

60
55

50

40

30 28

20
15

10

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 8 Responses for Low Price of Online products

INFERENCE: The inference drawn herein from Figure 9 states that taking into consideration the
cost of products purchased online, the cost is much lower as compared to the traditional market.
55% respondents Agree to the fact that the cost of products purchased online is lesser than those
purchased from retail outlet. 28% respondents are neutral to the cost of products purchased online,
whereas, 15% Strongly Agree to the fact that cost of products purchased online is low.

35
The after sales services offered by the company are highly satisfactory

Strongly Agree Agree Neutral Disagree Strongly Disagree

7 33 50 8 2

50

33

Strongly Agree Agree Neutral Disagree Strongly

Disagree

Figure 9 Responses for after sales services

INFERENCE: The inference drawn from Figure 9 states that studying the fact that the after sales
services offered by the companies are highly satisfactory. 50% respondents were Neutral to the
after sales services meaning that they were neither very much satisfied not dissatisfied with the
after sales services offered and hence after sales services do not affect the level of customer
satisfaction in online shopping. 33% respondents Agree to the fact that after sales services offered
by companies are really very satisfactory whereas 8% Disagree with the satisfaction level of after
sales services.

36
The customer care services offered are highly satisfactory

Strongly Agree Agree Neutral Disagree Strongly Disagree

10 47 34 6 3

47

34

10

Agree Neutral Disagree Strongly

Disagree

Figure 10 Responses to Satisfaction towards Customer Care service

INFERENCE: The inference drawn from Figure 10 states that studying the fact that the customer
care services offered by the companies are highly satisfactory. 47% respondents Agree to the
statement that the customer care services offered are highly satisfactory. 34% respondents were
neutral to the customer care services offered by online selling companies whereas 10% Strongly
Agree to the fact that the customer care services offered are highly satisfactory.

37
The process of making online payments is fast & easy

Strongly Agree Agree Neutral Disagree Strongly Disagree

41 46 10 3 0

41 46 10

0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Figure 11 Responses on making online payment

INFERENCE: The inference drawn from Figure 11 states that the process of making online
payment is fast & easy. 46% respondents Agree to the statement that the process of making online
payment is fast & easy. 41% respondents Strongly Agree with the fact that the process of making
online payments is fast & easy. 10% respondents were neutral to the process of making online
payments.

38
There is no difficulty in returning/replacing the product bought online

Strongly Agree Agree Neutral Disagree Strongly Disagree

7 38 33 17 5

38
40

Strongly Agree Agree Neutral Disagree Strongly

Disagree

Figure 12 Responses on returning/replacing the product bought online

INFERENCE: Figure 12 infers to the fact that there is no difficulty in returning/replacing of the
products bought online. 38% respondents Agree to the statement that there is absolutely no
difficulty in returning/replacing the products bought online. There returning policy and ease of
replacement is quiet high. 33% respondents are Neutral towards the returning/replacement of
products bought online whereas, ironically 17% Disagree with the statement meaning that there is
difficulty in returning/replacing the products bought online.

39
Online shopping, at times, provides eligibility to exciting discounts/offers

Strongly Agree Agree Neutral Disagree Strongly Disagree

25 65 8 2 0

70

60

50

40
65
30

20
25
10

Strongly Agree Agree Neutral Disagree Strongly

Disagree

Figure 13 Responses to Online Discounts/offers

INFERENCE: Figure 13 infers to the fact that online shopping also provides eligibility to online
discounts/offers. 65% respondents Agree to the statement that online shopping also provides
eligibility to various other relating discounts/offers. 25% respondents Strongly Agree with the
same fact of online discounts/offers whereas, 8% respondents are Neutral towards the eligibility
for online discounts/offers.

40
A variety of choice availability helps choosing the best in class from amongst various
brands

Strongly Agree Agree Neutral Disagree Strongly Disagree

33 58 8 1 0

58
60

50

40
33

30

20

10

Strongly Agree Agree Neutral Disagree Strongly

Disagree

Figure 14 Responses on availability of choice from amongst various brands

INFERENCE: Figure 14 infers to the fact that the respondent has a wide variety of choice
available to choose the best in class from amongst various brands available online. 58%
respondents Agree to the fact that they have a choice of choosing the best from a variety of brands.
33% respondents Strongly Agree with the same fact of availability of choice amongst various
brands to choose the best in class whereas, 8% were Neutral towards the availability of choice
from amongst various brands.

41
You are overall satisfied with your experience of shopping online

Strongly Agree Agree Neutral Disagree Strongly Disagree

22 57 18 2 1

Overall Customer Satisfaction

18 22

Strongly Agree
Agree
Neutral
Disagree
57 Strongly Disagree

Figure 15 Responses on Overall Customer Satisfaction

INFERENCE: Figure 15 infers to the fact that the respondents are overall satisfied with their
online shopping experience.

57% respondents expressed agreement with the statement that they were overall satisfied with their
online shopping experience. 22% respondents expressed strong agreement with the statement that
they were overall satisfied with their online shopping experience. Summing up the responses, 79%
respondents expressed overall satisfaction towards their online shopping experience. 18%
expressed neutral behaviour and only 3% expressed dissatisfaction.

42
 FINDINGS

As the research concluded, a number of findings were obtained. Undertaking the study on a random
sample of 100 people helped us reach some findings which clearly tell us about the demographic
interest, online presence, buying behaviour & most importantly the level of customer satisfaction
achieved by youngsters in online buying.

• 65% males responded to the questionnaire in comparison to 35% females showing the
participation of males in demographically much more active as compared to females.

• Maximum number of respondents (78%) were from the age group 18 to 24 expressing their
immediate interest in responding to a questionnaire about online shopping, their inherent interest.

• It was found that maximum number of respondents (95%) had easy access to internet.

• Majority of participants (97%) agreed that they were aware of the concept of online shopping
and undertook online shopping at least once a month (39%).

• Online shopping is preferred over tradition shopping owing to major factors like wide range of
choice (27%), time saving (22%), convenience (21%) & low price (21%).

• Flipkart.com was found to be the most preferred online shopping portal (39%) followed by
Myntra.com (20%).

• Majority online purchases were made in the genres of clothing/footwear (50%), electronic
gadgets (28%) & books (12%).

• Majority of respondents were found to be highly satisfied (71%) with the quality of products bought
online.
• Maximum respondents (71%) were found to be satisfied with speed of delivery of products purchased
online.
• Majority of respondents (83%) agreed to the fact that the products purchased online have
comparatively low prices as compared to traditional market.

• Majority of respondents (50%) were found to be neutral towards the after sales services.

• Majority of respondents (57%) were found to be satisfied with the customer care services.

43
• Maximum numbers of respondents (87%) were of the idea that making online payment
is quiet fast & easy.

• Majority of respondents (45%) agreed that they had no difficulty in returning/replacing

the products.

• Largest chunk or respondents (90%) agreed with the fact that online shopping also
provided eligibility to special discounts/offers.

• Largest chunk of respondents (91%) agreed with the fact that online shopping provided a

variety of choice to choose the best in the class from amongst various brands.

• The final and the most important finding of the study was that a majority of
respondents (79%) were found to be overall completely satisfied with online
shopping experience.

44
CHAPTER-4
CONCLUSION
AND
SUGGESTION

45
 CONCLUSION

The endeavor of this study was to determine the level of customer satisfaction in online shopping
among people. Various factors, based on previous researches, were taken into consideration and
each one was analyzed with respect to the data collected from a random sample of 100 respondents.

More number of males were found to be active in responding to the questionnaire in comparison to
females. The age group of 18 to 24 years responded to the questionnaire providing maximum
responses.

While responding to questions regarding online presence, 95% respondents agreed that they had
easy access to internet accessed.

Responding to questions regarding their buying behaviour, they agreed that they were aware of the
concept of online shopping. Clothing/footwear, electronic gadgets & books were found to be most
bought products & Flipkart.com was found to be the market leader followed by Myntra.com in
online shopping arena.

It was concluded that a 79% people were satisfied with product quality, cost, after sales services,
customer care & variety of products offered by the online shopping (e-commerce) portals.

46
 SUGGESTION
Online shopping always helps the customers to save their valuable time and it also gives the
customers a wide range of products. Additionally, they can choose their preferable products by
comparing those products with other company’s products who are the seller of the same product.
So, the organizations must need to ensure some good strategies which will help the organization
to differentiate their product from the other companies. The researcher has recommended some
points which will help the companies to enhance their uniqueness in the market. These suggestions
are:

• Offers and discounts: The organization must need to ensure good offers and discounts for their
potential customers because it will help the organization to attract more new customers which will
enable more financial benefit in the organizational context.

• Feedback system: The organization must need to understand their customer expectations and
demands as it will help the organizations to make the strategies accordingly. The organizations
also need to provide a feedback option to the customers because it will help the organization to
felicitate that the organization is giving value to their customer's views which will engage more
customers.

• Free shipping of the products: The organizations needs to provide free shipping for the products
because it will help the organization to attract more customers and the customers can save their
money which will enable more customer loyalty towards the organization.

• Social media marketing: The organization must need to invest their resources to felicitate social
media marketing because nowadays most of the customers collect reviews about a product from
the social media platforms. If an organization able to properly share their products information on
social media site, then it will help the customers to get the product detail more easily.

• Product detail information on e-commerce website: The organizations must need to provide all
the necessary detail of a product on their electronic commerce website because it will help the
customers to get all the products information under one roof which will enable more customer
satisfaction and the customers will not show their interest to get the product information from any
other medium. These are the recommendation which will help the organization to ensure more
customer satisfaction as well as financial benefit in the organizational context.

47
 BIBLIOGRAPHY

BOOKS:

Kotler, P. & Keller, L. K., “Marketing Management” 13th Ed., New Jersey: Pearson Education
Ltd.

Woodruff, Robert, “Know your Customer: New approaches to understanding customer values
& satisfaction”, John Wiley & Sons (1996)

Deshpande, Sameer & Lee, Nancy R., “Social Marketing in India” Atlantic Publishers

Hill, Nigel & Alexander, Jim, “The Handbook of Customer satisfaction & loyalty
measurement”, Gower Publishing Ltd. (2006)

Kothari C.R., “Research Methodology”, New Age International Publishers, New Delhi (2011)

WEBLINKS:

www.businessdictionary.com/definition/customer-satisfaction.html

www.iosrjournals.org/iosr-jbm/papers/Vol11-issue6/B01161320.pdf

www.cisjournal.org/journalofcomputing/archive/vol5no1/vol5no1_9.pdf

www.business.uconn.edu/users/sulin/pom-ba.pdf

www.sciencedirect.com/science/article/pii/S1877050910004229

www.aiars.org/ijmp/journals/.../PA_IJMP_20130127.pdf

48
 QUESTIONNAIRE
Customer Satisfaction in Online Shopping

➢ Please spare some time from your busy schedule to fill up this questionnaire.
➢ The information gathered will be used as data for the Research Project.
➢ Tick (√) only one option whichever is applicable/most suitable.

Name:

1. What is your Gender?

Male ( )
Female ( )
Prefer not to say
( )
2. What is your age?
Under 18 ( )
18-24 ( )
25-30 ( )
31-40 ( )
Above 40 ( )

3. What is your approx. total income per year?

Less than Rs. 50,000 ( )
Rs. 50,000 – Rs. 2,00,000 ( )
Rs. 2,00,000 – Rs. 4,00,000 ( )
Rs. 4,00,000 – Rs. 10,00,000 ( )
Greater than Rs. 10,00,000 ( )

4. Do you have easy access to Internet?

Yes ( )
No ( )

5.How often do you Shop online?

Twice a Week ( )
Once a Week ( )
Fortnightly ( )
Monthly ( )
Once in Two Months ( )
Once in Six Months ( )

49
6. Why you prefer Online Shopping over Retail Shopping?
( )
Convenient
Low Price ( )
Time Saving ( )
Wide range of choice ( )
After sales services ( )

7.Which web portal do you prefer for Online Shopping?

FlipKart.com ( )
Ebay.in ( )
Amazon.in ( )
Snapdeal.com ( )
Shopclues.com ( )
Myntra.com ( )
HomeShop18.com ( )
Naaptol.com ( )
Jabong.com ( )
Tradus.in ( )

8. What sort of products do you prefer buying online?

Books
Clothing/Footwear ( )
Electronic Gadgets ( )
Household Items ( )
Cosmetics ( )
Sports & Fitness Equipments ( )
Toys ( )
Furniture ( )
Others (Please Specify) ( )

9. The quality of products purchased Online is highly satisfactory

Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

50
10. The speed of Delivery of products is fast

( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

11. The products available online are priced low in comparison to traditional market

( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

12. The after sales services offered by the company are highly satisfactory
( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

13. The customer care services offered are highly satisfactory

Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

51
14. The process of making online payment is quiet fast & easy

Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

15. There is no difficulty in returning/replacing a product in case of

dissatisfaction

( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

16. Buying some products also gives eligibility for exciting discounts/offers
( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

17. A variety of choice available helps choosing the best in class from amongst various brands

( )
Strongly Agree
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

18. You are overall satisfied with your experience of shopping online
Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )

52