Online Shopping In India

Keywords: indian consumer behaviour, online shop consumer behaviour

Online shopping is the procedure of researching and purchasing products or services online. The initial online stores proceeded to go into business in 1992, and online retailing got over a significant portion of the retail market through the first 10 years of the twenty-first century, as ownership of computers increased and proven retailers began to offer their products online.

Consumers throughout the world are progressively more swapping congested stores for one-click convenience, as online shopping becomes a safe and popular option. Online shopping has some advantages over shopping in retail stores, including the capacity to easily compare prices from a variety of merchants, usage of a wide selection of merchandise, being open up 24*7 and the capability of not having to operate a vehicle to a physical store. But even though the online shopping cannot replace the experience of shopping in a shop or the entertainment value of heading to a shopping center or market. A customer who knows precisely what he or she would like can look it up online, read and compare the info, and buy from the website that supplies the best price or service. But a shopper who is uncertain what things to look for, or who just looks forward to browsing through items on display, will choose a retail store where the items can be seen, handled and sample. The dcor, music and layout of goods in a shop creates a multi-dimensional shopping environment that cannot be duplicated online. For many people, going shopping at a mall, team store or market is a form of entertainment and a communal experience. Many folks who are currently unfamiliar with computers and don't feel comfortable utilising the web to shop are not likely to change their practices.

The Future expansion should come through improvements to the shopping process on existing Web sites; the execution of more online shopping sites by existing sellers; the coming old of a young, more technology-oriented generation; and the intro of novel goods, services and online shopping encounters. The development of online shopping in producing countries like India will happen as more people acquire computers and bank cards.

Global Arena

Online shopping, or the use of the web to gather information on products and services, has recently shown significant development globally.

The Nielsen study, the largest study of its kind on this issue of Internet shopping behaviors, was conducted from October to November 2007 and polled 26, 312 Internet users in 48 markets from European countries, Asia Pacific, the Americas and the Middle East. IF THE Nielsen Company conducted its first review into online shopping patterns two years before, only 10 percent of the world's online human population (627 million) got made a purchase online. Within two years, this amount has surged by about 40 percent - to a staggering 875 million. The burgeoning acceptance of online shopping is a global occurrence. Online shoppers are available scattered throughout the world, but the world's most enthusiastic Internet customers hail from South Korea - 99 percent of Internet users in South Korea have shopped online. German, UK and Japanese consumers come in an in depth second. US consumers are marginally more recalcitrant, clocking in at quantity eight.

Indian Scenario

While the Internet and the internet are carrying on to broaden at an instant pace, the development of electronic business has been slower. Surveys show many Indian Internet users employ the growing interactive medium to look or search for information on products and services, but a significantly smaller ratio has actually made purchases online.

The number of folks and hosts connected to the web has increased worldwide. In India too, Internet penetration has became more popular. Online shopping though a tiny proportion of the web activity is believed to increase in the approaching years. Some of the dominant factors leading the change are greater Internet penetration, street to redemption in prices of hardware, land in the price of Internet communication, development of better plus more reliable solutions, and increased awareness among the users. Some of the various ways in which online marketing is done in India are company websites, shopping portals, online auction sites, etc.

E-commerce might not have taken off in India the way it should have, yet potential clients are shiny. India is expected to be the third greatest Internet market in the world in the next five years (Source Ac Nielson). The advantages is there for both clients and sellers and this win-win situation reaches the main of its remarkable go up, as it is thought that e-commerce ventures will represent the largest revenue earner especially in the business to consumer (B2C) section in India.

Indian customers are more and more getting more comfortable with online shopping, and there's a higher acceptability for the concept. India has 25 million Internet users and more is currently embracing online shopping. There's been an influx of online shopping sites in India numerous companies hitching onto the Internet bandwagon. The earnings from online shopping are anticipated to increase enormously.

According to IAMAI, the average number of transactions monthly in India has truly gone up from 2 lakh in 2003-04 to 4. 4 lakh in 2004-05 and has doubled to 7. 95 lakh deals per month in the year 2005-06. The web sales through the festival season experienced increased quickly especially during Diwali and Ramzan which saved a sales of Rs115 crore, a 117 per cent increase from the Rs53 crore in the year 2004-05 (source IAMAI). These characters evidently show that online shopping has truly come old and consumers are keen to look on the net. Effective customer communication on products plus reduced delivery costs and well-timed delivery has helped web marketers to seize a slice of the Rs 115 crore sales. Though a miniscule amount in the global context, the Indian online consumers' human population would make its occurrence felt quite incredibly. The probable of the Indian e-market can be gauged from the actual fact that 16 percent of Indian consumers want to buy online in the next six months, rendering it the third most online-potential country after Korea (28 percent) and Australia (26 percent) (Source:IMRB). That is a sign of an evergrowing breed of Indian consumers who are not only better prepared but also more confident of the online transactions.


The consumers' attitude towards online shopping is recognized as one of the primary factors that affects e-shopping probable (Michieal, 1998). Though attitudinal issues are believed to play a substantial role in e-commerce adoption, however social-demographic factors such as the gender, income, age group, and country also have an impact on customers in purchasing. In a report of client satisfaction and repurchase tendencies, Mittal, Kamakura & Wagner (2001) divided consumer characteristics into six social-demographic factors. These were gender, years, educational backdrop, marital status, children, and living area.

A overview of empirical studies in this field shows a number of things. Many reports have found that typical online buyers have used the Web for quite some time, and because of their familiarity, they searched online for product information and purchase options (Bellmanet al. , 1999). There is also evidence that the web shopper was convenience-oriented (Donthu & Garcia, 1999; Korgaonkar & Wolin, 1999), innovative and variety-seeking (Donthu & Garcia, 1999). He or she did not appear to be brand-or price-sensitive (Donthu & Garcia, 1999). From a consumer's viewpoint, Yao (1998) who explored the purchase tendencies of online shopping in demographic parameters and behavior factors angle, found that different age ranges afflicted customer's product choice in cost. Sheth (1983) considered that consumers' purchase inclination would influence their motive.

Considering that Internet shopping, is still not at the adult stage of development, not too much is known about consumers' attitudes towards adopting this new shopping route and factors that effect their frame of mind toward (Haque et al. , 2006). That means that, through inspiration and perception, behaviour are shaped and consumers make decisions. Thus, behaviour directly effect decision making (Haque et al. , 2006). Behaviour provide as the bridge between consumers' track record characteristics and the utilization that satisfies their needs (Armstrong and Kotler, 2000; Shwu-Ing, 2003). Because attitudes are difficult to improve, to understand consumers' attitudes toward online shopping, can help marketing professionals predict the web shopping goal and measure the future expansion of online business.


The reason for this research study is to research online Indian consumer behaviour, which will provide E-marketers with a constructional construction for fine-tuning their online strategies. The aims of the research are
  • To study the behaviour and behaviour of Indian consumer regarding online shopping.
  • To evaluate the contribution of online shopping in India.
  • To understand the problems and difficulties of online shopping in India.
  • To review if the Indian online buying action is afflicted by demographics, ethnical and sociable characteristics.
  • To identify factors which determine online shopping.
  • To verify the satisfaction level of online purchases of Indian consumers.
  • To investigate the future and progress of Online Shopping in India.


Keeping at heart the above goals and in order to address the challenge in the very best manner the following hypotheses have been developed
  • There is not a significant difference between the frequency of online buying among men & females Indian consumers.
  • There is not any significant difference between the Indian consumers educational qualifications and their online purchase goal.
  • There is no significant difference between the income of regular online shopper and occasional online buyer.
  • There is not any significant difference between the convenience orientation of consumers who make recurrent online acquisitions or those who purchase once in a while.
  • There is not a factor in the dominance of utilization of shopping online between the Generation Y customers (those born after 1977) and other online purchasers, that is, people over 45 years of age.


The general reason for the analysis is to perform a descriptive research on the client attitudes and behaviours for online shopping in Indian setting up.

To this end exploratory or qualitative research tool would be utilized, which can help better understand and gain data that, shows how consumers make online shopping. Sampling designs chosen for use in this research is non-probability wisdom sampling. A non-probability test group would be used and the surveys would be mailed and sent out among the Internet users chosen. As discuss by Cavana et al. (2001), when time or other factors become critical, non-probability sampling is generally used. Employing this sampling design, no probabilities are attached to the elements in the population under research. However this research may able to collect primary information in a quick and inexpensive way. In wisdom sampling, the researcher uses his/her judgment in selecting information rich units from the population for study based on the population's parameters to answer the research question. Five hundred surveys would be conducted since it is known as to be a big sample size to serve the purpose of the research.

A combo of key and supplementary research techniques would be used to collect the info to meet the objectives. The principal research would be conducted across Delhi through organized consumer review questionnaires implemented among all individuals who use Internet through judgmental sampling. Anybody who matches the criteria would be a potential sample device for the review. Relating to Sekaran (2003), surveys type is a good and powerful method in finding answers to consumer behavior's research. To carry out the study, the questionnaire involves a blend of several types of questions.

Also the researcher will seek to examine related literatures of consumer habit on online shopping. After data collection the Statistical Offer for the Public Sciences (SPSS) would be used for data examination. Various checks would also be conducted like T Test, Z Test, Factor Examination. These procedures would help to reach a remedy and come up with results to demonstrate the findings.


Today Internet isn't just a networking mass media, but also as a means of business deal for consumers at global market. Internet utilization has grown swiftly within the last years and it has become common opportinity for delivering and trading information, services and goods (Albarq, 2006). Since online shopping keeps growing tremendously in the current business situation it is imperative to examine how consumers' make purchase decisions on the Internet. With the advancement of Internet shopping, consumers are confronted with an overwhelming amount of product offerings, and therefore have a greater degree of independence to choose among numerous alternatives. Internet shopping carries a quantity of different characteristics than traditional shopping methods.

In India the web has taken main and expanded along many fronts before decade. The research assumes relevance since marketers have endeavored to cater to this growing portion of consumers. Research performed within India on the profile of Internet customers is piecemeal and incomplete. This empirical research intends to explore into this problem, this research among the web users will help marketers to plan highly targeted online campaigns in the foreseeable future.


Keeping at heart the aim of the research, In such a research proposal, the background, context and theme of the study would be presented first; then the objectives of the study and the research assertions would be developed. Here, vital concepts, questions and assumptions will be mentioned. Finally, the scope and restriction of the analysis, methodology to be used and the significance of the study will be mentioned at length.

So, proposed desk of items for the study are as follows -

  • Acknowledgement
  • Executive Summary
  • Table Of Contents
  • List Of Tables
  • List Of Figures

Chapter 1 - Introduction

In this section the background to the study area is offered. This presentation leads to a talk of the problems within the research area which further brings about the formulation of a research question. This research question will be responded to later in this thesis. The purpose of this thesis is also presented.

Chapter 2 - Literature Review

This chapter includes a overview of relevant and supporting theories because of this research. They get started with broader ideas of segmentation and online buying behavior before two models highly relevant to the empirical review is provided.

Chapter 3 - Research Methodology

The means which were used to execute this research will be presented in this section. This consists of the methodological approach, the research strategy, approach to data collection, the sample and quality expectations. The methodology is chosen to fulfil the reason and aim of this thesis.

Chapter 4 - Examination & Findings

The results of the empirical review will be presented in this chapter. The empirical results will assist in the examination of results shown in section five.

The extent where data research done would be based upon the amount and quality of data collected through principal and secondary research. Principle aim in that process of data research would be the utilization of statistical tools wherever required that could include the use of worksheets in excel. This might involve extensive discourse with industry associates to get an accurate and valuable thoughts and opinions. Based on the analysis appropriate analysis and advice would be set.

Chapter 5 - Conclusion

The conclusion right answers the study question and presents implications for marketers. It answers whether the purpose of the research has been achieved.

Chapter 6 - Recommendations And Limitations

In this chapter the limitations of the research is shown as well as recommendations for future research in online communities


This research has referenced the next reputable options - Literature, Journals, Articles, and Websites


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