CONTENT
PARTICULARS PAGE No.
DECLARATION
CERTIFICATE
EXECUTIVE SUMMARY
INTRODUCTION
COMPANY PROFILE
PROJECT OBJECTIVE
LITERATURE REVIEW
RESEARCH METHODOLOGY
DATA ANALYSIS
INTERPRETATION
RECOMMENDATIONS
CONCLUSION
Declaration
I, Mr. / Ms
Hereby declare that this field work is the record of authentic work carried out by me during the period from 2011 to 2012 and has not been submitted to any other University or Institute for the award of any degree / diploma etc.
Signature
Anirudha A. Kelkar
Name of the sutudent
CERTIFICATE
This is to certify Mr. /Ms- Anirudha Arun Kelkar of MAEER’s MIT School of Management has successfully completed the Field Work titled on “CONSUMER ONLINE SHOPPING AWARENESS AND SATISFACTION” in partial fulfillment of requirement for the completion OF MMM course as prescribed by the MAEER’s MIT School Of management.
This field work report is the record of authentic carried out by him / her during the period from 2011 to 2012. She/he has worked under my guidance.
Signature
Prof. Umesh Patwardhan
Project Guide (Internal)
Date:
Counter Signed by
Brig (Dr) R.K.Bhatia
Director: MIT School of Management
Date
EXECUTIVE SUMMERY
The objective to study Online shopping with eBay. The study is to know about CONSUMER ONLINE SHOPPING AWARENESS AND SATISFACTION .
The method of data collection used was survey method & the data collection tool used for the survey was questionnaire. The sample population consists of the people who are working professionals and students who used online shopping.
RM Adopted : Random sampling Sampling Element : local peopleSample Size : 50 people
In analysis of data section there are following items which are which are included they are:
Findings:
Conclusion:
Recommendations are:
Introduction to Field Study
This study examines consumer Awareness and Satisfaction - Online shopping in developing countries. The exponential growth of internet penetration in India and increased ecommerce activity both on consumer side as well as corporate side during last few yearsprovides the impetus to investigate this phenomenon among potential online shoppers.
Further, this channel of commerce brings a major technological shift in the way businessis conducted and raises challenges in terms of aligning the e-commerce model to thetraditional Indian socialistic psychological beliefs. The study tests a awareness and satisfaction regarding internet shopping and exploring their effects on successful adoption of Online shopping amongst working people and students.
Customer acceptance of innovations necessitates behavioral research aimed atexamining and predicting actual behavior and behavioral intentions. Due to lowpenetration of internet in India (around 4% according to Business Today, 5.2% accordingto Nasscom’s projection for 2005 and 7.1% in November 2008 according to internetWorld Stats’ usage and populations statistics) as compared to other countries (China22.4%, Taiwan 66.1%), internet shopping can be considered as an innovation for theIndian customer.
The success of internet auctioneers eBay, e-steel, Baazee and electronic retailing giantsAmazon.com etc. have demonstrated that internet medium is viable channel for both traditional as well as innovative business exchanges between retailers and their customers. Further, the e-business retail sales figures compiled and published, suggest that there is a steady growth in e-commerce activity.
Other factors such as the continuous growth in the number of internet users andBroadband subscribers, and the rapid pace of technological improvements andinnovations also hold the promise for greater acceptance of the digital medium byconsumers (Malone, 2001).
On the other side, internationally the rash of bankruptcies among internet retailers and dramatic declines in stock values of internet-related businesses few years back brought the sobering realization that along with the opportunities, electronic retailers also have challenges including the task of identifying, attracting and retaining customers. By any measure, the run-up in the price and trading in internet-related stocks between 1998 and the spring of 2000 was extraordinary.
The demise of thousands of internet businesses (like etoys) that bankedon slick websites and multi-million-rupees advertisement campaigns is a painful buteducative reminder that for all the hype, the internet is just another channel for business.Irrefutably, the digital channel offers some unique advantages over other mediaincluding interactive communications, rapid comparison shopping, lower transactioncosts, innovative arrangements for the sampling and consumption of digital products,and the elimination of time and spatial barriers.
However, this new medium of commerce has its own drawbacks such as reduced opportunities for sensory shopping, social shopping, face-to-face interactions with sales personnel, and the postponement of the consumption or enjoyment of tangible goods. The inherent limitations of the internet have been compounded by poorly designed internet storefronts, limited product selection, poor customer service, tedious checkout procedures, botched orders, tardy deliveries, security lapses, and privacy invasions.
Company Profile
Have you noticed that whenever you open a newspaper, watch the TV or have a conversation, people seem to be talking about eBay? If you've never used it and you've no idea what it's all about, then the chances are that you're starting to feel a little left out.
So What is eBay?eBay is an online auction website - and not just any auction site, but thebiggest one in the world. If you know how an auction works, then youalready roughly know how eBay works. Someone adds something theywant to sell to the site, and then buyers come along and place bids on it.The highest bid wins the item! It's that simple.eBay being an online auction makes a big difference, though. Buying and selling are not reserved for any elite. eBay accepts almost any item, no matter how small, and will then advertise it on their sites all over the world. It's a powerful combination of an auction and a slightly chaotic marketplace.
Yes, you read that correctly: 17 years. eBay was created in September1995, by a man named Pierre Omidyar, who was living in San Jose. Hewanted his site - then called 'AuctionWeb' - to be an online marketplace,and wrote the first code for it in one weekend. It was one of the firstwebsites of its kind in the world. The name 'eBay' comes from the domain Omidyar used for his site. His company's name was Echo Bay, and the 'eBay AuctionWeb' was originally just one part of Echo Bay's website at ebay.com. The first thing ever sold on the site was Omidyar's broken laser pointer, which sold for $14.
The site quickly became massively popular, as sellers came to list all sorts of odd things and buyers actually bought them. Relying on trust seemed to work remarkably well, and meant that the site could almost be left alone to run itself. The site had been designed from the start to collect a small fee on each sale, and it was this money that Omidyar used to pay for AuctionWeb's expansion. The fees quickly added up to more than hiscurrent salary, and so he decided to quit his job and work on the site fulltime. It was at this point, in 1996, that he added the feedback facilities, to let buyers and sellers rate each other and make buying and selling safer.
In 1997, Omidyar changed AuctionWeb's - and his company's - name to'eBay', which is what people had been calling the site for a long time. Hebegan to spend a lot of money on advertising, and had the eBay logodesigned. It was in this year that the one-millionth item was sold (it was atoy version of Big Bird from Sesame Street).
Then, in 1998 - the peak of the dotcom boom - eBay became big business,and the investment in Internet businesses at the time allowed it to bring in senior managers and business strategists, who took in public on the stock market. It started to encourage people to sell more than just collectibles, and quickly became a massive site where you could sell anything, large or small. Unlike other sites, though, eBay survived the end of the boom, and is still going strong today.1999 saw eBay go worldwide, launching sites in the UK, Australia andGermany. eBay bought half.com, an Amazon-like online retailer, in the year 2000 - the same year it introduced Buy it Now - and bought PayPal, an online payment service, in 2002.
Pierre Omidyar has now earned an estimated $3 billion from eBay, and still serves as Chairman of the Board. There are now literally millions of items bought and sold every day on eBay, all over the world. For every $100 spent online worldwide, it is estimated that $14 is spent on eBay - that's a lot of laser pointers.
In 1997, the company received $6.7 million in funding from the venture capital firm Benchmark Capital.
Meg Whitman was hired as eBay President and CEO in March 1998. At the time, the company had 30 employees, half a million users and revenues of $4.7 million in the United States. eBay went public on September 21, 1998, and both Omidyar and Skoll became instant billionaires. eBay's target share price of $18 was all but ignored as the price went to $53.50 on the first day of trading.
As the company expanded product categories beyond collectibles into almost any saleable item, business grew quickly. In February 2002, the company purchased IBazar, a similar European auction web site founded in 1993 and then bought on October 14, 2002.
In early 2008, the company had expanded worldwide, counted hundreds of millions of registered users, 15,000+ employees and revenues of almost $7.7 billion. After nearly ten
years at eBay, Whitman made the decision to enter politics. On January 23, 2008 the company announced that Whitman would step down on March 31, 2008 and John Donahoe was selected to become President and CEO. Whitman remained on the Board of Directors and continued to advise Donahoe through 2008. In late 2009, eBay completed the sale of Skype for $2.75 billion, but will still own 30% equity in the company.
In July 2010, eBay was sued for $3.8 billion by XPRT Ventures that accused eBay of stealing information shared in confidence by the inventors on XPRT's own patents, and incorporated it into features in its own payment systems, such as PayPal Pay Later and PayPal Buyer Credit.
On December 20, 2010, eBay announced its acquisition of a German online shopping club, brands4friends.de, for €150 million ($197 million) to strengthen the company's interests in the fashion industry in Europe. It is subject to regulatory approval and expected to close it in the 2011
www.ebay.in/www.ebay.com/en.wikipedia.org/wiki/EBay
Objectives of Study
Testing awareness about Online Shopping.
identifying shopping satisfaction among potential internet shoppers.
evaluating the effect of a consumer’s shopping orientation on his/her Perceived Usefulness for and Attitude towards using internet shopping.
Evaluating the effect of a consumer’s Knowledge about internet shopping on His/her Perceived Usefulness and Perceived Ease of Use of internet shopping.
REVIEW OF LITERATURE
Internet shopping is still in evolutionary stage in India and very few studies haveundertaken research exploring customer acceptance and diffusion of internet shoppingin India. Although there has been a dearth of internet shopping related studies in Indiancontext, theoretical exploration can be based on various international studies carried outin other countries.
As an initiative to explore the internet shopping acceptance and diffusion in India, thisStudy is relevant to predicting and explaining actual awareness andSatisfaction also intention of internet shopping.
Literature Review on Shopping Orientations
As a shopping behavior measure, shopping orientations are intended to capture themotivations of shoppers and/or the desired experiences and goals they seek whencompleting their shopping activities (Stone, 1954). For example, an in-home shoppermay be motivated by convenience, while a personalizing shopper may value theinteraction experience with a known sales clerk. Shopping orientations have alsoemerged as reliable discriminators for classifying different types of shoppers based ontheir approach to shopping activities (Gehrt and Carter, 1992; Lumpkin and Burnett,1991-92).
Researchers have tapped into shopper orientations to study patronagebehavior among elderly consumers, catalog shoppers, outshoppers, and mall shoppers(Bloch et al., 1994; Evans et al., 1996; Gehrt and Shim, 1998; Korgaonkar, 1984;Lumpkin, 1985; Lumpkin et al., 1986; Shim and Mahoney, 1992).It is becoming increasingly clear that in order to survive and more importantly tosucceed, online merchants should embrace and actively pursue fundamental principlesof good retailing that apply to any medium. One of these principles is knowledge aboutexisting and potential customers and their preferences and behaviors.
Shopping orientations have been shown to be reliable predictors of customer patronage behavior35 in other retail formats such as catalog and mall shopping. Therefore, it is expected thatthe study of shopping orientations can also help electronic retailers identify andunderstand those consumers who prefer to shop online and the reasons why.
RESEARCH METHODOLOGY
This chapter discusses the research methodology adopted in separate sections. The first part discusses the scales used for developing the instrument (questionnaire) for theresearch.
Next comes the data collection method including sampling and tools of datacollection. Last topic of the chapter outlines the descriptive characteristics of thecollected data.
Scales Used and the Instrument
A two-page questionnaire was used as the research instrument. Attribute level scaleswere a combination of scales earlier used in similar other research. The full questionnaire was first pre-tested in an iterative manner among a convenience sampleof colleagues and friends drawn from the general public. The 50 respondents in this testsample were asked to provide comments on the relevance and wording of thequestionnaire items, length of the survey, and time taken to complete it.
Based on the feedback received, the questionnaire layout was modified, and the wording of some of the questions was changed to improve clarity.
Data Collection and Sample
Following is a summary of the data collection strategy and the sample created out of that
Sampling Element: Individual employees (Controlled for education, marital status, age group, gender, household income, the product shopped-internet Shopping)
Geographical extent: Five areas of Pune city (Kothrud , Karvenagar , Sinhagad Road, Bhusari Colony, Varaje , Deccan etc.). These areas are representative of the target universe of this research
Time: 5 Days
Sampling Technique: Non-probability sampling technique (Convenience sampling)
Sample size: 57 Respondents, 7 responses were discarded due to incompleteinformation or visibly manipulative data.
Data Collection Instrument: The questionnaire developed from the scales was used as the instrument. The questionnaire covered the constructsproposed in the model and standard (and reliable) scales available were used formeasuring each construct. Separate statements covering the control variables wereadded towards the end of the questionnaire.
Data collection process: The respondents were explained the purpose of the study inbrief and handed over the questionnaire for the duration of 2 days. The purposeof giving them the questionnaire for 2 days was to give them enough time tounderstand the questions and respond properly. At the end of this time, thequestionnaires were collected back.
Data Analysis
Percentage of people who know about Online Shopping-eBay
Statistics
Q1
N Valid 50
Missing 0
Mean 1.06
Median 1.00
Mode 1
Sum 53
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 1.00
80 1.00
90 1.00
Q1
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 47 94.0 94.0 94.0
No 3 6.0 6.0 100.0
Total 50 100.0 100.0
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Frequencies- Information received about eBay from various sources.
Statistics
Q2
N Valid 50
Missing 0
Q2
Frequency Percent Valid Percent Cumulative Percent
Valid 3 6.0 6.0 6.0
Freinds or Relarives 19 38.0 38.0 44.0
Banner Ad 2 4.0 4.0 48.0
2,4 1 2.0 2.0 50.0
Magazine 4 8.0 8.0 58.0
TV Ad 6 12.0 12.0 70.0
Other 15 30.0 30.0 100.0
Total 50 100.0 100.0
----------------------------------------------------------------------------------------------------------------
Frequencies - MAIN Reason to Visit eBay
Statistics
Q3
N Valid 50
Missing 0
Q3
Frequency Percent Valid Percent Cumulative Percent
Valid 3 6.0 6.0 6.0
Browsing 17 34.0 34.0 40.0
1,2 1 2.0 2.0 42.0
Particular Item 8 16.0 16.0 58.0
Comparison of Prices 18 36.0 36.0 94.0
Other 3 6.0 6.0 100.0
Total 50 100.0 100.0
Frequencies / Easiness of the web site.
Statistics
Q4
N Valid 50
Missing 0
Mean 1.02
Median 1.00
Mode 1
Sum 51
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 1.00
80 1.00
90 1.00
Q4
Frequency Percent Valid Percent Cumulative Percent
Valid not applicable 3 6.0 6.0 6.0
Easy 43 86.0 86.0 92.0
Difficult 4 8.0 8.0 100.0
Total 50 100.0 100.0
Frequencies / Difficulty level in Searching items on the Website.
Statistics
Q5
N Valid 50
Missing 0
Mean 1.88
Median 2.00
Mode 2
Sum 94
Percentiles 10 1.00
20 2.00
25 2.00
30 2.00
40 2.00
50 2.00
60 2.00
70 2.00
75 2.00
80 2.00
90 3.00
Q5
Frequency Percent Valid Percent Cumulative Percent
Valid 0 3 6.0 6.0 6.0
Very Easy 6 12.0 12.0 18.0
Easy 35 70.0 70.0 88.0
Difficult 6 12.0 12.0 100.0
Total 50 100.0 100.0
Frequencies / Rating for eBay inventory
Statistics
Q6
N Valid 50
Missing 0
Mean 2.38
Median 2.00
Mode 2
Sum 119
Percentiles 10 2.00
20 2.00
25 2.00
30 2.00
40 2.00
50 2.00
60 2.00
70 3.00
75 3.00
80 3.00
90 4.00
Q6
Frequency Percent Valid Percent Cumulative Percent
Valid not applicable 3 6.0 6.0 6.0
Insufficient 1 2.0 2.0 8.0
Average 27 54.0 54.0 62.0
Adequate 12 24.0 24.0 86.0
Mmore than sufficient 7 14.0 14.0 100.0
Total 50 100.0 100.0
----------------------------------------------------------------------------------------------------------------Purpose of Purchase Online
Statistics
Q7
N Valid 50
Missing 0
Q7
Frequency Percent Valid Percent Cumulative Percent
Valid Not applicable 3 6.0 6.0 6.0
Personal 24 48.0 48.0 54.0
1,2 3 6.0 6.0 60.0
Gift 13 26.0 26.0 86.0
Other 7 14.0 14.0 100.0
Total 50 100.0 100.0
Frequencies/ Method of Payment
Statistics
Q8
N Valid 50
Missing 0
Q8
Frequency Percent Valid Percent Cumulative Percent
Valid Not applicable 3 6.0 6.0 6.0
Credit Card 12 24.0 24.0 30.0
1,2 1 2.0 2.0 32.0
Debit Card 21 42.0 42.0 74.0
2,4 1 2.0 2.0 76.0
Cheque 1 2.0 2.0 78.0
Net Banking 6 12.0 12.0 90.0
Other 5 10.0 10.0 100.0
Total 50 100.0 100.0
Frequencies/ Shipping satisfaction
Statistics
Q9
N Valid 50
Missing 0
Mean 1.30
Median 1.00
Mode 1
Sum 65
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 2.00
80 2.00
90 2.90
Q9
Frequency Percent Valid Percent Cumulative Percent
Valid Not applicable 3 6.0 6.0 6.0
Satisfy 34 68.0 68.0 74.0
Very Satisfy 8 16.0 16.0 90.0
Dissatisfied 5 10.0 10.0 100.0
Total 50 100.0 100.0
Frequencies/ Order completion
Statistics
Q10
N Valid 50
Missing 0
Mean 1.04
Median 1.00
Mode 1
Sum 52
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 1.00
80 1.00
90 1.90
Q10
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
Valid Not
Applicable3 6.0 6.0 6.0
Yes 42 84.0 84.0 90.0
No 5 10.0 10.0 100.0
Total 50 100.0 100.0
Frequencies / Percentage of return order because of any reason
Statistics
Q11
Frequency Percent Valid Percent
Cumulative
Percent
Valid Not applicable 3 6.0 6.0 6.0
Yes 9 18.0 18.0 24.0
No 38 76.0 76.0 100.0
Total 50 100.0 100.0
Frequencies / Reason for returning order
Statistics
Q12
N Valid 50
Missing 0
Mean .70
Median .00
Mode 0
Sum 35
Percentiles 10 .00
20 .00
25 .00
30 .00
40 .00
50 .00
60 .00
70 .00
75 .00
80 .80
90 4.00
Q12
Frequency Percent Valid Percent Cumulative Percent
Valid Not Applicable 40 80.0 80.0 80.0
Wrong Size 2 4.0 4.0 84.0
Wrong Color 1 2.0 2.0 86.0
Not What I Ordered 1 2.0 2.0 88.0
Damaged 3 6.0 6.0 94.0
Not Satisfied with Item 2 4.0 4.0 98.0
Other 1 2.0 2.0 100.0
Total 50 100.0 100.0
-------------------------------------------------------------------------------------------------------------------------------------
Frequencies / Satisfaction after return process
Statistics
Q13
N Valid 50
Missing 0
Mean .60
Median .00
Mode 0
Sum 30
Percentiles 10 .00
20 .00
25 .00
30 .00
40 .00
50 .00
60 .00
70 .00
75 .00
80 .80
90 3.90
Q13
Frequency Percent Valid Percent Cumulative Percent
Valid Not applicable 40 80.0 80.0 80.0
Very Satisfied 2 4.0 4.0 84.0
Somewhat Satisfied 2 4.0 4.0 88.0
Satisfied 1 2.0 2.0 90.0
Somewhat Dissatisfied 4 8.0 8.0 98.0
5 1 2.0 2.0 100.0
Total 50 100.0 100.0
--------------------------------------------------------------------------------------------------------------------------------------
Frequencies/ Online store preference reason
Statistics
Q14
N Valid 50
Missing 0
Q14
Frequency Percent Valid Percent Cumulative Percent
Valid Not Applicable 3 6.0 6.0 6.0
Price 8 16.0 16.0 22.0
1,2 1 2.0 2.0 24.0
1,4 1 2.0 2.0 26.0
Availability of Item 7 14.0 14.0 40.0
Selection 11 22.0 22.0 62.0
Ease of Comparison 10 20.0 20.0 82.0
4,5 1 2.0 2.0 84.0
Payment Options 6 12.0 12.0 96.0
5,2 1 2.0 2.0 98.0
Other 1 2.0 2.0 100.0
Total 50 100.0 100.0
Frequencies / Overall Experience
Statistics
Q15
N Valid 50
Missing 0
Mean 2.34
Median 2.00
Mode 2
Sum 117
Percentiles 10 1.10
20 2.00
25 2.00
30 2.00
40 2.00
50 2.00
60 3.00
70 3.00
75 3.00
80 3.00
90 3.00
Q15
Frequency Percent Valid Percent Cumulative Percent
Valid Not Applicable 3 6.0 6.0 6.0
Disappointing 2 4.0 4.0 10.0
Average 22 44.0 44.0 54.0
Good 21 42.0 42.0 96.0
Delightful 2 4.0 4.0 100.0
Total 50 100.0 100.0
Frequencies / People Willing to continue online shopping
Statistics
Q16
N Valid 50
Missing 0
Mean 1.02
Median 1.00
Mode 1
Sum 51
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 1.00
80 1.00
90 1.00
Q16
Frequency Percent Valid Percent Cumulative Percent
Not Applicable 3 6.0 6.0 6.0
Yes 43 86.0 86.0 92.0
No 4 8.0 8.0 100.0
Total 50 100.0 100.0
--------------------------------------------------------------------------------------------------------------------------------------
Frequencies / Percentage of recommendation online shopping to others
Statistics
Q17
N Valid 50
Missing 0
Mean 1.02
Median 1.00
Mode 1
Sum 51
Percentiles 10 1.00
20 1.00
25 1.00
30 1.00
40 1.00
50 1.00
60 1.00
70 1.00
75 1.00
80 1.00
90 1.00
Q17
Frequency Percent Valid Percent Cumulative Percent
Valid Not Applicable 3 6.0 6.0 6.0
Yes 43 86.0 86.0 92.0
No 4 8.0 8.0 100.0
Total 50 100.0 100.0
