Minor Research Project ON “Present Scenario of E-Shopping; A Study on Youth of Indore Region” [pic] (2012-2014) Prestige Institute of Management and Research GUIDED BY:SUBMITTED BY: Prof. DEEPAK JAROLIYADivya Mathankar Monica Sharma Naina Rawat Nida Khan Piyush Soni MBA(FT) Semester II Batch 2012 – 2014 INTRODUCTION
Online shopping is the process of buying products through internet without going to store or shop’s location physically. Here people use their credit/debit or other bank card for payment. The Internet has undoubtedly changed how people go about their daily lives, but perhaps the most dramatic change has come in how we shop for goods and services. Sure, it’s fun to go into a store to browse and try things on, but you have to admit that nothing can beat the convenience of shopping from home The younger generation seems to have recognized the perks of online shopping and has picked up this new and cool form of retail therapy.
Generally speaking the trend of e-shopping has been increased rapidly in the recent years with the development of internet and due to the easy accessibility of internet usage. Easy access to internet has driven consumers to shop online in fact according to the University of California, Los Angeles (UCLA) communication policy (2001), online shopping is third most popular activity on the internet after email using and web browsing. Globally more than 627 million people have done online shopping so far, World’s biggest online shoppers include Germans and British.
Books, airline tickets/reservations, clothing/shoes videos/games and other electronic products are the most popular items purchased on the internet. (ACNielsen Report on Global Consumer Attitudes towards Online Shopping, 2007). Through e-shopping business firms are coordinating different marketing activities such as market research, product development, inform customers about product features, promotion, customer services, customer feedback and so on.
Online shopping is used as a medium for communication and electronic commerce, it is to increase or improve in value, quality and attractiveness of delivering customer benefits and better satisfaction, that is why online shopping is more convenience and day by day increasing its popularity. Not only benefits but also risk is associated with online shopping. Generally speaking internet users avert online shopping because of credit-card fraud, lack of privacy, non-delivery risk, lack of guarantee of quality of goods and services.
Concerned authorities are devising policies to minimize the risk involved in e-business. In Liao and Cheung (2000) words:”Fraud- free electronic shopping” was introduced by UK in the early 1995 and after two years Europe and Singapore introduced secured electronic transaction (SET). On the other hand E- commerce has been grown very fast because of many advantages associated with buying on internet because of lower transaction and search cost as compared to other types of shopping.
Through online shopping consumers can buy faster, more alternatives and can order product and services with comparative lowest price. (Cuneyt and Gautam 2004). Therefore Marketers have carefully analyzed the consumers’ attitude and behavior towards the online shopping and spend billions of dollars to facilitate all the demographics of online shoppers. Consumer’s attitude towards online shopping refers to their psychological state in terms of making purchases over the Internet. Online buying behavior process refers to the products purchased online.
The process of online buying behavior consists of five steps and it is similar to traditional shopping behavior (Liang and Lai 2000). For instance, consumer recognize the need for buying some product (book), they refers to the internet to buy online and start to search for the information and look for all the alternatives and finally make a purchase which best fits to their needs. Before making final purchase consumers are bombarded by several factors which limits or influence consumers for the final decision.
The main theme of the study is to know the factors that influence the consumer’s attitudes and behaviors towards online shopping. Researchers will also focus on how consumers form such attitudes with the help of models and who are truly the online shoppers. According to the online survey within few American students, Case, Burns, and Dick, (2001, p. 873) concluded that “Internet knowledge, income, and education level are especially powerful predictors of Internet purchases among university Students”.
Our problem area that is Consumers attitude towards online shopping will determine the attractive factors that influence consumers to shop online and those factors will help marketers to formulate their strategies towards online marketing respectively. As our area of research will be on Sweden and specifically on Gotland so our research thesis will not only be helpful for the marketers in general but specifically will be helpful for the marketers in Sweden.
Researchers will precede this work with primary data which will help them in covering the subject area in more diversified way. REVIEW OF LITERATURE Benedict et al (2001) in his study on perceptions towards online shopping 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
Dabholkar and Bagozzi et al, (2002) O’Cass and Fenech, (2002); Childers et al. , (2001); Davis, (1993). Their study reveals that if more attractive online stores were developed. This raises the issue of examining what factors affect consumers to shop online. Therefore, a framework is needed to structure the complex system of effects of these different factors, and develop an in-depth understanding of consumers’ perceptions toward Internet shopping and their intentions to shop online. Burke et al. (2002); Relevant exogenous factors in this context are “consumer traits” “situational factors” “product characteristics” “previous online shopping experiences” and “trust in online shopping” By incorporating these exogenous factors next to the basic determinants of consumers’ perception and intention to use a technology, the framework is applicable in the online shopping context. Together, these effects and influences on consumers’ perception toward online shopping provide a framework for understanding consumers’ intentions to shop on the Internet.
Menon and Kahn (2002). Whereas “arousal” is the degree to which a person feels stimulated, active or alert during the online shopping experience. A pleasant or arousing experience will have carry-over effects on the next experience encountered If consumers are exposed initially to pleasing and arousing stimuli during their Internet shopping experience, they are then more likely to engage in subsequent shopping behavior: they will browse more, engage in more unplanned purchasing, and seek out more stimulating products and categories.
Childers et al (2001) concluded that “enjoyment” results from the fun and playfulness of the online shopping experience, rather than from shopping task completion. The purchase of goods may be incidental to the experience of online shopping. Thus, “enjoyment” reflects consumers’ perceptions regarding the potential entertainment of Internet shopping found “enjoyment” to be a consistent and strong predictor of attitude toward online shopping. Davis (1993) in his study reveals that we build up such a framework based on previous research on consumer adoption of new self-service technologies and Internet shopping systems.
The research suggests that consumers’ perception toward Internet shopping first depends on the direct effects of relevant online shopping features. Venkatesh (2000) online shopping “Computer playfulness” is the degree of cognitive spontaneity in computer interactions. Playful individuals may tend to underestimate the difficulty of the means or process of online shopping, because they quite simply enjoy the process and do not perceive it as being effortful compared to those who are less playful “Computer anxiety” is defined as an individual’s apprehension or even fear when she/he is faced with the possibility of using computers.
This influences consumers’ perceptions regarding the “ease of use” of the Internet as a shopping medium in a negative way, since using a computer is one of the necessary requirements for online shopping RATIONALE BEHIND STUDY For better understanding the factors of internet and youth shopping behavior towards e-shopping, this study would provide academic research reviews and relative ideas expressed in the literature that associated with this subject. Furthermore, a number of hypotheses will be tested for getting results of the study.
Due to the recent researches, shows that e-shopping becomes a full and effective business model, therefore there are several studies that already investigated more or less related on internet shopping and consumer behavior. In the following study, some point of view will be taken from literatures, and needs careful review to achieve them as the basis of the subsequent research investigation. OBJECTIVES OF RESEARCH • To study the recent status related to e-shopping of youth in Indore region To study the factors affecting youth towards e-shopping • To study the current scenario of e-shopping by analyzing the collected data in Indore region. REASEARCH METHODOLOGY The study will be conducted with the objective of finding out the present scenario of e-shopping in Indore region The population for the study consists of online purchasers of Indore region For the purpose of testing hypothesis, Z – test will be used to test the hypothesis. Additionally, percentage analysis will be used to analyze the sub objectives.
RESEARCH DESIGN: – This Study is Descriptive one and for exploring the result Survey is to be conducted. SAMPLE DESIGN:- Sampling Unit:- Data will be collected from youth e-shopping users from Indore Region 1) Sample Size:- A sample of around 50 youths from Indore Region 2) Sampling Procedure:- Convinient sampling TOOLS FOR DATA COLLECTION:- Data collection is an important tool. It should be collect very carefully because all the analysis & out comes depends on it. It was collected by following method.
Field procedure for gathering primary data included the structured questionnaires were filed by the respondents. Data Source:- The present study is based on primary data. Primary data:- Primary data is that which is collected for the first time and thus happen to be originated in character. Questionnaire survey: In the studies a questionnaire is prepared. The questionnaire consists of different close ended questions. Secondary data:- Secondary data refer to the data that has been already collected . he secondary data, which has been use to carry out this study, are as follow: Books, journals, magazines, newspapers, industry Reports Company’s internet site other relevant studies material and Website. Research Instrument:- Questionnaire. TOOLS FOR DATA ANALYSIS:- For the purpose of study, we will make use of SPSS software and also the Z – test will be used for analysis. REFERENCES Webliography 1. http://www. freepatentsonline. com/article/International-Journal-Business-Research/178900254. html 2. http://www. abhinavjournal. com 3. http://www. thejakartapost. com 4. http://www. apecdoc. org