A Study on Consumer Behavior Towards Online Shopping in Valsad City

This MBA summer internship project, conducted by Mr. Akhil Nair at S.R. Luthra Institute of Management, explores consumer behavior towards online shopping in Valsad City. The research investigates various aspects, including the current scenario of online shopping, consumer preferences, and the influence of different factors on online buying behavior. The project includes an introduction to e-commerce, the evolution of online shopping, and its advantages. The methodology involves a descriptive research design, a sample size of 150 potential online shoppers, and the use of statistical tools like frequency analysis, Kruskal Wallis, Mann Whitney, and Chi-square tests to analyze the data. The report covers literature review, research methodology, findings, conclusions, and recommendations, providing a comprehensive analysis of consumer behavior in the context of online shopping in Valsad City. The study aims to understand the dynamics of the online market and consumer decision-making processes.

A SUMMER INTERNSHIP PROJECT
ON
“A STUDY ON CONSUMER BEHAVIOUR TOWARDS
ONLINE SHOPPING IN VALSAD CITY”
UNDER THE GUIDANCE OF
Mr. Riddhish Joshi
Assistant Professor
Submitted By
Mr. Akhil Nair [Batch: 2020-22, Enrolment No:
207500592118]
MBA SEMESTER - 2
S.R LUTHRA INSTITUTE OF MANAGEMENT - 750
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
October, 2021

PREFACE
As we know that in today competitive markets only theoretical knowledge can’t work
anymore. Today in every sector, research is needed to understand the ongoing scenario,
changing situation and to go to the depth of the problems so that adequate knowledge about
that area can be developed. Research work is finding the new easy of adding value to that
area and giving contribution to that particular area. Further research work enhances depth
knowledge of particular area. And it helps to researcher in developing models and also helps
to society at large. The main focus and study were on "A STUDY OF CONSUMER
BEHAVIOUR TOWARDS ONLINE SHOPPING IN SURAT CITY" I have put up my
best efforts and enumerated possible information after observing the activities carried over
there, to make this report a satisfactory report.

STUDENTS’ DECLARATION
I hereby declare that the Summer Internship Project Report titled “A STUDY ON THE
CONSUMER BEHAVIOR TOWARDS ONLINE SHOPPING IN VALSAD CITY” is a
result of my own work and my indebtedness to other work publications, references, if any,
have been duly acknowledged. If I am found guilty of copying from any other report or
published information and showing as my original work, or extending plagiarism limit, I
understand that I shall be liable and punishable by the university, which may include Failing
me in examination or any other punishment that university may deem fit.
Enrolment No Student Name Signature
207500592118 Mr. Akhil Nair
Place Date
Valsad

ACKNOWLEDGMENT
On the very outset of this project, we would like to extend our sincere and heartfelt
obligation towards all the personages who have helped us to give our big shot. Without
their active guidance, help, cooperation and encouragement, we would not have made
progress in the project.
We would like to thank Gujarat Technological University for adding Continuous
Evaluation Component in our curriculum activity.
We extend our gratitude to S.R. Luthra Institute of Management and Dr. Jimmy M.
Kapadia, Director, S. R. Luthra Institute of Management, for giving us this opportunity.
We are extremely thankful and pay our gratitude to our faculty Mr. Riddhish Joshi for his
valuable guidance and support on completion of this project.
We also endorse with a deep sense of respect, towards our parents and family, who has
always supported us morally as well as economically.
Last but not the least, gratitude goes to all our friends who directly or indirectly helped us
to complete this project report.
Any forgetfulness in the brief acknowledgement doesn’t mean lack of gratitude.

EXECUTIVE SUMMARY
The study entitles "A STUDY ON CONSUMER BEHAVIOUR TOWARDS ONLINE
SHOPPING IN SURAT CITY" Research always starts with question or any problem and
finds answer of problem by using scientific method. Literature review of past studies by
different researchers done on this study area is also covered.
The first chapter of research presents an introduction on consumer behaviour and its current
scenario. In further chapter it gives an overview of the online shopping and Websites from
which customers are doing online shopping. And also deals with the research work done in
the field of the different constructs identified for the present study.
The second chapter of the report consist of detailed description of the Online Shopping
industry. It also consists of the introductory part in which it covers the market scenario at
global, national and state level, PESTEL analysis which identified factors like corruption,
political stability, social trend and preferences, Major offerings and major players were
briefly explained.
The third chapter of the report describes the literature review searched on topics like
behaviour, preference, perception, awareness, and factors affecting consumer buying towards
online shopping.
The fourth chapter of the report describes the most vital element of the study i.e. research
methodology. In this descriptive research design is selected to survey the customers. Here
researcher has selected sample size of 150 potential customers of doing online shopping
through questionnaire. In this research non-probability convenience sampling method has

been used. The study uses various statistical tools such as frequency, statistical tests like
Kruskal Wallis, Mann Whitney and Reliability test, Chi square Test.
It describes the data analysis. It was done using Krushkal Wallis test, Mann Whitney test,
Reliability test, Normality Test, Chi Square Test.
The fifth chapter describes the findings to the study of factors affecting of consumer buying
behaviour while online shopping
The sixth chapter describes the findings of study.
The seventh chapter describes the findings of study
TABLE OF CONTENT
Chapter Chapter Name Page No
1 Introduction
2 Literature Review
3 Research Methodology
3.1 Problem Statement
3.2 Research Objectives
3.3Tabular and Graphical representation of data
with statistical analysis and interpretation
3.4Research Design
3.4.1 Types of Design
3.4.2 Sampling
3.4.3 Data Collection Tool
3.4.4 Tools for Analysis
3.4.5Benefits of the study
3.4.6 Limitations
4 Findings

5 Conclusion
6 Recommendation
 Annexure
 Bibliography
Chapter 1 - INTRODUCTION
Innovation assumes a significant part inside the development and improvement of an
economy. Web based advertising assumes a significant part inside the extension of business.
Presently organizations have more freedom to extend their business by disconnected or store-
based promoting or by online i.e., non-store-based configurations. Presently business
associations don't need putting away their item; they will sell their item on hand. Essentially,
shoppers additionally will get the new chances to get the product by having the opportunity to
shop or they will buy their ideal things on the web. Presently – a – days, web based shopping
is the most sizzling for shopping. There are different explicit sites like Amazon, Flipkart,
Home shop 18, first cry, Myntra, Paytm and Jabong and so forth from where clients can
purchase products and services. For buying products and services on the web, it's simple for
the client since they don't need to head outside and whenever, they will make a deal.
Moreover to the present, clients get more limits on internet shopping and have huge loads of
sorts. Furthermore, it's additionally useful for the business houses, since they don't need to
enlist salesmen for the promotion of their items and services. They will offer their item and
services by planning a webpage which might be dealt with by a couple of people. It brings
about abatement inside the expense of business houses. There are no geological limits. This
benefit is regularly utilized for additional industrialization which brings about a further
developed economy. By this E-trade business houses can get many advantages by expanding
their store network and may grow their business from public to international.

INTRODUCTION TO E-COMMERCE
The web has been grown quickly since the most recent 20 years, and with the significant
advanced economy that is driven by data innovation likewise being created around the world.
After a drawn out advancement of the web, which quickly expanded web clients and
exceptionally speed web association, and a couple of new advances even have been created
and utilized for web creating, those reason firms which will advance and improve pictures of
item and administrations through web locales.
The Internet has changed the manner in which shoppers execute for their day by day needs -
be it requesting food, booking film tickets or possibly reserving a taxi. Web based shopping
is one class which has seen remarkable development inside the most recent two years.
Absence of MasterCard entrance, helpless framework, and so on for quite a while blocked the
extension of this classification. Likewise, as opposed to putting resources into working in
house conveyance groups, brands are performing tie-ups with supermarkets, to broaden their
conveyance reach. There are all the more such examples of development and client centricity
which is driving accomplishment for online shopping destinations and applications.
As the new investigations have demonstrated that, online shopping especially in business to
consumer (B2C) has risen and internet shopping has become more famous to a few group.
For instance, the Dell PC organization arrived at 18 million dollars in deals through the web
during the essential quarter of 1999. Accordingly, about 30% of its 5.5 billion dollars all out
deals were accomplished through the web. Thus, understanding online shopping and
consumer behaviour could assist organizations with utilizing it.
EVOLUTION OF E-COMMERCE
1969: CompuServe, the essential critical online business organization, was set up by Dr John
R. Goltz and Jeffrey Wilkins by using a dial-up association. This is regularly the essential
time online business was presented.
1979: Michael Aldrich created electronic shopping (he is also considered as originator or
designer of web based business). This was finished by interfacing an exchange handling PC
with a changed TV through a phone association. This was finished transmission of secure
information.

1982: Then preceded with development of innovation, especially in hardware prompted the
dispatch of the essential web based business stages by Boston Computer Exchange.
1992: The 90s took the online business to a resulting level by presenting Book Stacks
Unlimited as a book shop by Charles M. Stack. It had been one among the essential web
based shopping locales made by then.
1994: Browser device presented by Netscape Navigator by Marc Andreessen and Jim Clark.
It had been utilized on the Windows stage.
1995: The year denoted the dependable improvement inside the historical backdrop of
internet business as Amazon and eBay were dispatched. Amazon was begun by Jeff Bezos,
while Pierre Omidyar dispatched eBay.
1998: PayPal dispatched the essential online business instalment framework as an apparatus
to shape cash moves.
1999: Alibaba began its internet shopping stage in 1999 with very $25 million as capital.
Continuously it dressed to be an online business monster.
2000: Google dispatched the essential internet publicizing device named Google Ad Words
as how to help retailers to use the compensation per-click (PPC) setting.
2005: Amazon Prime enrolment was dispatched by Amazon to help client's get free two-day
transporting at a yearly expense.
2005: Square, Inc. as an application based help is dispatched
2005: Eddie Machaalani and Mitchell Harper dispatched Big Commerce as a web customer
facing facade stage.
2011: Google dispatches its online wallet instalment application
2011: one among the soonest moves by Face book to dispatch supported stories for ads
2014: Apple dispatched Apple Pay, a web instalment application
2014: Jet.com was dispatched in 2014 as a web shopping entrance.
2017: Instagram acquaints shoppable labels empowering individuals will sell
straightforwardly from the web-based media stage
INTRODUCTION TO ONLINE SHOPPING

There are many purposes behind a particularly quick improvement of web shopping,
predominantly on account of the benefits that the web gives. As a matter of first importance,
the web offers various kinds of comfort to purchasers. Clearly, shoppers don't need to leave
attempting to discover item data in light of the fact that the web can assist them with looking
from online locales, and it additionally assesses between each website to encourage the most
practical cost for procurement. Moreover, the web can improve purchasers' utilization of
items more productively and successfully than different channels to fulfil their requirements.
Through the different web indexes, purchasers save time to get to the utilization related data,
and information with a blend of pictures, sound, and truly definite text depiction to help
shopper learning and choosing the first appropriate item.
ADVANTAGES OF ONLINE SHOPPING
Online stores do not have space constraints and a wide variety of products can be displayed
on websites. It helps the analytical buyers to purchase a product after a good search.
1. Convenience of online shopping
Customers can purchase items from the comfort of their own homes or work place. Shopping
is made easier and convenient for the customer through the internet. It is also easy to cancel
the transactions.
2. No pressure shopping
Generally, in physical stores, the sales representatives try to influence the buyers to buy the
product. There can be some kind of pressure, whereas the customers are not pressurized in
any way in online stores.
3. Online shopping saves time
Customers do not have to stand in queues in cash counters to pay for the products that have
been purchased by them. They can shop from their home or work place and do not have to
spend time travelling. The customers can also look for the products that are required by them
by entering the key words or using search engines.
4. Comparisons
Companies display the whole range of products offered by them to attract customers with
different tastes and needs. This enables the buyers to choose from a variety of models after

comparing the finish, features and price of the products on display, Sometimes, price
comparisons are also available online.
5. Availability of online shops
The mall is open on 365 x 24 x 7. So, time does not act as a barrier, wherever the vendor and
buyers are.
6. Online tracking
Online consumers can track the order status and delivery status tracking of shipping is also
available.
7. Online shopping saves money
To attract customers to shop online, e-tailors and marketers offer discounts to the customers.
Due to elimination of maintenance, real-estate costs, the retailers are able to sell the products
with attractive discounts online. Sometimes, large online shopping sites offer store
comparisons.
DISADVANTAGES OF ONLINE SHOPPING
Ease of use is the prime reason that drives the success of e-commerce. Though the internet
provides a quick and easy way to purchase a product, some people prefer to use this
technology only in a limited way. They regard the internet as a means for gathering more
information about a product before buying it in a shop. Some people also fear that they might
get addicted to online shopping.
The major disadvantages of online shopping are as follows.
1. Delay in delivery
Long duration and lack of proper inventory management result in delays in shipment.
Though the duration of selecting, buying and paying for an online product may not take more
than 15 minutes; the delivery of the product to the customer’s doorstep takes about 1-3
weeks. This frustrates the customer and prevents them from shopping online.
2. Lack of significant discounts in online shops

Physical stores offer discounts to customers and attract them so this makes it difficult for e-
tailors to compete with the offline platforms.
3. Lack of touch and feel of merchandise in online shopping
Lack of touch-feel-try creates concerns over the quality of the product on offer. Online
shopping is not quite suitable for clothes as the customers cannot try them on.
4. Lack of interactivity in online shopping
Physical stores allow price negotiations between buyers and the seller. The showroom sales
attendant representatives provide personal attention to customers and help them in purchasing
goods. Certain online shopping mart offers a service to talk to a sales representative.
5. Lack of shopping experience
The traditional shopping exercise provides a lot of fun in the form of a showroom
atmosphere, smart sales attendants, scent and sounds that cannot be experienced through a
website. Indians generally enjoy shopping. Consumers look forward to it as an opportunity to
go out and shop.
6. Lack of close examination in online shopping
A customer has to buy a product without actually seeing how it looks. Customers may click
and buy some product that is not really required by them. The electronic images of a product
are sometimes misleading. The colour, appearance in real life may not match with the
electronic images. People like to visit physical stores and prefer to have a close examination
of goods, though it consumes time. The electronic images vary from physical appearance
when people buy goods based on electronic images.
7. Frauds in online shopping
Sometimes, there is disappearance of the shopping site itself. In addition to above, the online
payments are not much secured. So, it is essential for e-marketers and retailers to pay
attention to this issue to boost the growth of e-commerce. The rate of cybercrimes has been
increasing and customers’ credit card details and bank details have been misused which raise
privacy issues.
ONLINE SHOPPING IN INDIA