AGRAND PROJECT REPORT

ON

“A study on Consumer Awareness Perception &“A study on Consumer Awareness, Perception & Preference towards E‐commerce with special reference to  

Ahmedabad Market”Ahmedabad Market

SUBMITTED BY:

Hetal Raval [Roll No: 14]

PGDBMBatch: 2010‐2013

Somlalit Institute of Management Studies

Table of Contents

1. Introduction2. Rationale Of Study3. Objective4. Research Design5. Research Methodology6. Limitation of Study7. Questionnaire8. Scope of the study 

Introduction• Internet is changing the way consumers shop and buy goods and

services, and has rapidly evolved into a global phenomenon.• Electronic commerce means buying and selling of product ory g g p

service over electronic systems such as the Internet and othercomputer network.

• E‐Commerce includes electronic funds transfer, supply chain, pp ymanagement, Online Buying & Selling, Internet marketing, onlinetransaction processing, electronic data interchange (EDI), inventorymanagement systems, and automated data collection systems.

• In 1979, Michael Aldrich invented online shopping to enable onlinetransaction processing between consumers and businesses nowknown as E‐Commerce.

• Consumers can easily search through a large database of productsand services. They can see actual prices. Customers can compareprices with a click of the mouse and buy the selected product atbest prices. conti…

• E‐Commerce has provided a fresh platform for business that haschanged the way businesses and consumers think about buying andselling.

• buyers and sellers are turning to their computers to buy and sellproducts using such websites as eBay. EBay is the world’s onlinemarket place enabling trade on a local national and internationalmarket place enabling trade on a local, national and internationalbasis.

• Market of Ahmedabad and its Customers are Tech Savy. So scope of E‐Commerce is very high. Specially online shopping & selling isbecoming very much popular. [ Surveying awareness for the samewith special reference to ebay and recommending strategies to ebayto grow with Ahmedabad market ] conti..

• Ecommerce became possible in 1991 when the Internet was d t i l h N ti l S i F d ti lift dopened to commercial use when National Science Foundation lifted 

a ban.

• Through E‐commerce Indian market had sell of $ 2.5 Billion in 2009.

T d I di h 10 illi li h ith th th t f• Today India has 10 million online shoppers with the growth rate of30%.

• Indian Ecommerce market is expected to grow $675 Billion by 2016 and $850 Billion by 2020

Changing Attitude towards Online ShoppingChanging Attitude towards Online Shopping

Consumer’s Point Of View• Literacy rate has increased and consumers have become Internet

savvy• Increasing number of Internet usersIncreasing number of Internet users• Using the internet to shop online has become one of the primary

reasons to use the internet combined with searching for products andfinding the information about themfinding the information about them.

• People like home delivery concept. It saves Time, Energy andMoney

• Comparison between prices, product features and after sale servicefacilities becomes easy

Company’s Point Of Viewp y

• The company use this medium of Online selling for cutting• The company use this medium of Online selling for cuttingmarketing costs, thereby reducing the price of their productsand services in order to stay ahead in highly competitive

kmarkets.• To take feedback and also to conduct satisfaction surveys with

customers.

• The  growth  of  Internet  Subscribers  it  is  getting doubled  

Factors That Boost Online Shopping in Indiag g g

year  by  year.• The  cost  of  internet  usage  is  also  getting  lower,  with  

d i i h idgood competition among the providers.• Wi‐Fi & Wimax [Worldwide Interoperability for Microwave 

Access] system has also started in India. This will increase theAccess] system has also started in India. This will increase the usage as it goes more on wireless internet

• Access to Information • The increase in number of computer users • Reach to net services through broadband 

Middl l l ti ith di i i• Middle‐class population with spending power is growing. • People today have very less time to roam into different shops 

for buyingfor buying• One can save time by buying a product/service sitting on one 

chair at any point of time

Facts about Online Shopping • The figures from IAMAI (Internet and Mobile Association in

India ) show that the internet users in India will grow to 200illi b 2011 A d 25% f l h i I dimillion by 2011. Around 25% of regular shoppers in India are

in the 18‐25 age groups, and 46% are in the 26‐35 year range.

• Worldwide E‐commerce is growing at the rate of 28%, sinceIndia being a younger market, the growth of e‐commerce is

d 51% i h iexpected at 51% in the coming years.• Inline with global trends finally India has also started shopping

online these days. As per the study by IAMAI online shoppingonline these days. As per the study by IAMAI online shoppingin India has rose from $11million in 1999‐2000 to $522 millionin 2007 and it is expected to rise above $900 million by endMarch 2013March 2013.

Literature Review • Petrovic Dejan (2006) in his study on Analysis of consumer behavior

online explained that the most relevant behavioral characteristicsof online consumers and examine the ways they find, compare andevaluate product information.

• The purpose of this report is to translate these findings into a set ofp p p gimplementation activities on strategic and technological level.

Sh &Y ji (2006) i th i t d h d th t th d t• Shun &Yunjie (2006) in their study showed that there are producttypes, which are more likely to be sold online such as software,books, electronics and music. ), there are four separate consumer

i h diff i i d i igroups with different intentions and motivations:ExplorationEntertainmentShoppingInformation

• Study Anders Hasslinger: Selma Hodzic : Claudio Opazo (2008)h d h h d h d l din their study they showed that developed into a new

distribution channel and online transactions are rapidlyincreasing. This has created a need to understand how theconsumer perceives online purchases. The purpose of this thesiswas to examine if there are any particular factors that influencethe online shopping.pp g

• Harris Interactive(2009) in their study of online customerexperience. The survey found that online customer experiencereached an inflection point in 2009. consumers who havepexperienced problems when conducting transactions onlineshowed its first substantial decrease in five years ‐‐ fromapproximately 87% in all previous Tealeaf surveys to 80% inapproximately 87% in all previous Tealeaf surveys to 80% in2009.

TravelFoods 

Online AvailableProducts Consumer 

Electronicand  

Drinks

Products& Service

Major Products Health & 

Computer Hardware  Products 

Online Beauty & Software

Jewelry and  

WatchesClothing

Books, CDs and DVDs Clothing 

and Accessories 

Rationale Of StudyRationale Of Study• To understand whether the consumers of Ahmedabad market are 

aware of such new technology or notaware of such new technology or not

• To understand What are the perceptions in the consumers minds’ in Ahmedabad towards E‐commerce i.e. Online shopping

• To understand the preference of the consumers towards Online• To understand the preference of the consumers towards Online shopping in Ahmedabad market, that whether they prefer traditional shopping or Online shopping and Why? 

• To identify key factors influencing online shopping purchase behavior

ObjectiveObjective

• To Study the Consumer Awareness, Perception & Preference y , ptowards E‐commerce  with special reference to Ahmedabad market

Research Design• Descriptive Research

Th i l f l ti thi h i t d ib th– The main goal for selecting this research is to describe the data and characteristics about what is being studied

– Descriptive research is mainly done when a researcher p ywants to gain a better understanding of a topic

– E.g. We know online shopping is becoming very popular d b t d ’t k H th fnow a days but we don’t know How the consumers of 

Ahmedabad are taking this new concept? Do they opt for this? What is their experience? What are their preferences? To understand this phenomenon we have to go for Descriptive researchDescriptive research is the exploration of the existing– Descriptive research is the exploration of the existing phenomenon

Research MethodologyResearch Methodology

• Collection of DataCollection of Data 

– Primary Data : Through Questionnaire ‐ Customers wouldbe interviewed at different places such as Malls,supermarkets, college campuses, public places etc. inAhmedabad cityAhmedabad city

– Secondary Data : Internet, periodical, Journals etcy p

Tools & TechniqueTools & Technique

• Necessary Tools & TechniquesNecessary Tools & Techniques 

Limitation Of StudyLimitation Of Study

• Ahmedabad Cityy• Age Group will be above 15 years• If the customer’s response towards Questionnaire is not 

accurate the data can be manipulated. • The data can be incomplete if the customer shows their 

unwillingness towards the providing the responseunwillingness towards the providing the response.

QuestionnaireQuestionnaire1. On an average how often do you use Internet?

– Daily– Twice a week– Once a week – Once a fortnight– Once a fortnight – Once a month– Rarely

2. Do you do Online Shopping?

– YesN– No

If Yes, Please attempt Question Number 3 to 14If No Please attempt Question Number 15 & 16If No, Please attempt Question Number 15 & 16

3. Please select the website(s) you use for Online Shopping?

– www.Your preferred Website.com– www.amazon.com– www.jabong.com– www.homeshop18.com

fli k t– www.flipkart.com– Other 

Please specify __________________________________4. How did you know about Your preferred Website?4. How did you know about Your preferred Website?

– Friends or Relatives– TV– Web search engine– Magazines or Newspapers– Don’t Remember

5 How often do you buy from Your preferred Website?5. How often do you buy from Your preferred Website?

– Daily– Once a week– Once a fortnight– Once a month– Once a year

6. Which of the following items do you often buy from Your preferred Website?

– Books & MagazinesBooks & Magazines– Electronic Goods– Clothes, Shoes & Lifestyle Accessories– Car Accessories– Art & Painting– Baby Products– Music CDs & DVDs – Flowers & ChocolatesFlowers & Chocolates– Ticket & Travel– Other

Please specify __________________________________

7. Do you need help while shopping on Internet?

Yes I always need help– Yes, I always need help– Yes, Sometimes I need help– Yes, For the first time I need help– No, I never need help

8. Do you compare prices between websites prior to making your purchase decision?

– Yes– NoNo

9. Which of the following do you care about the more when choosing which Internet provider to purchase from?Internet provider to purchase from?

– Low Price– Brand Name

10. Do you get delivery of the product on time purchased from Your preferred Website?

– Yeses– No

11. Do you find wide range of options available on Your preferred Website for the product you want to buy?p y y

– YesNo– No

– In some products only

12. How do you find payment option on Your preferred Website?

– Very easyy y– Difficult

13 Are you satisfied with Your preferred Website?13. Are you satisfied with Your preferred Website?

– Yes– No

14. Would you recommend Your preferred Website to your friends, Relatives or Colleagues?g

– YesNo– No

15. Likert Scale Question16. Likert Scale Question

17. Name 

18 Gender18.  Gender 

• Male • Female 

19.  Please indicate your approximate age.

• 15 – 25• 26 ‐35• 36‐45• 46‐55• 56 or older 

20.  Please indicate your monthly income.

• 10000 to 2000021000 t 25000• 21000 to 25000

• 26000 to 30000• 31000 to 45000

Scope Of ResearchScope Of Research

• All the consumers doing online shopping are potential for companies

• Through this research, Company will be able to understand what the consumer wants and needs.the consumer wants and needs.

• It will be crucial for online retailers to know the importance of analyzing and identifying factors that influence th h h h d id t h ththe consumer when he or she decides to purchase on the Internet.

ThankThankYou