FACTORS AFFECTING ONLINE BUYING BEHAVIOUR

PROJECT REPORT SUBMITTED TO

DEPARTMENT OF MANAGEMENT

GOVT. J. THANKIMA COLLEGE

For the partial fulfillment of the requirement for the degree

of

BACHELOR OF BUSINESS ADMINISTRATION

By:

Jerry Zosangzela

1908BBA006

Under the Supervision of:

Matthew Lalremsanga

Asst. Professor

Department of Management

Government J. Thankima College

JULY - DECEMBER 2021

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Research project

on

Factors affecting online buying behaviour

For the partial fulfilment of the requirement for the award of Bachelor in Business

Administration

Submitted by: Jerry Zosangzela

Roll no: 1908BBA006

Under the Supervision of:

Matthew Lalremsanga

DEPARTMENT OF MANAGEMENT

GOVERNMENT J. THANKIMA COLLEGE

BAWNGKAWN, AIZAWL

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ACKNOWLEDGMENT

First and foremost, praises and thanks to the God, for blessing me throughout my research

work to complete my research successfully.

I would like to express my deep and sincere gratitude to my research supervisor, Mr Matthew

Lalremsanga for providing me good guidance throughout my research, his dynamism, vision

and motivation has helped me a lot during my research time, he has taught me the

methodology to carry out the research and to present the research work as clearly as possible.

It was a great privilege to work and make research under his guidance. I am grateful for the

reseach topics he had offered me, I would also liked to thank him for his friendship and

empathy.

I would also like to thank all the teaching staff at Govt J Thankima College for allowing me to

conduct research from their students during their busy times along with respondents who

took their time to answer my questionnaire and help me make the most out of my research.

All of these work would not have been possible if not for the kindness of all the respective

Lecturers who gave me their allowance for doing my research.

I also want to thank Dr. Josephine Lalrindiki (Assistant Professor and Head of the Department)

for guiding me in my topic to the right direction and giving guides and ideas for further

research study.

Lastly, I am extremely grateful to my parents for their love and support and their sacrifices for

educating and preparing me for my future.

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DECLARATION BY THE STUDENT

I, JERRY ZOSANGZELA hereby declare that the project work titled “Factors Affecting

Online Buying Behaviour Regarding Students Of Govt.J.Thankima College,” is the

original work done by me and submitted as a part of in partial fulfillment of requirements for

the award in Bachelor of Business Administrations.

It is an original work done by me under the guidance of Mr. Matthew Lalremsanga

Signature of the Student

Enrollment No:

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CONTENT

Ch. No. Title Page No.

1 Introduction 1

2 Industry profile 3

3 Review of Literature 5

4 Significance of the study 8

5 Research Methodology 10

6 Data analysis and findings 12

7 Conclusion 24

8 References 26

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LIST OF TABLES

Table No. Title Page No.

1 Table showing factor for buying online among

respondents

15

2 Table showing problems on online faced by

respondents

17

3 Table showing number of males and Females 20

4 Table showing different age groups 21

5 Table showing family size 22

6 Table showing family income 23

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LIST OF FIGURES

Fig No. Title Page No.

1 Factor for buying online among respondents 16

2 Problems on online buying faced by respondents 19

3 Number of Males and Females 20

4 Different age groups 21

5 Family size 22

6 Family income 23

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CHAPTER 1

INTRODUCTION

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Factors Affecting Online Buying Behaviour Regarding Students Of Govt.J.Thankima

College

1.INTRODUCTION

The growing use of internet in India provides a developing prospect for online shopping in

the country. According to Indian Institute of E-Commerce, the Indian grocery market is

estimated to reach US$ 18.2 billion in 2024 from US$ 1.9 billion in 2019.

India’s e-commerce orders volume increased by 36% in the last quarter of 2020, with the

personal care, beauty and wellness segment being the largest beneficiary. India’s consumer

digital economy is expected to become a US$ 800 billion market by 2030, growing from US$

537.5 billion in 2020, driven by strong adoption of online services such as e-commerce and

edtech in three country.

According to Grant Thornton, e-commerce in India is expected to be worth US$ 188 billion

by 2025 With a turnover of $ 50 billion in 2020, India became the eighth largest market for e-

commerce market. According to NASSCOM, despite COVID-19 situation.

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CHAPTER 2

INDUSTRY PROFILE

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INDUSTRY PROFILE

Amazon.com,Inc is the biggest online market service in India, it engages in the provision of

online retail shopping services. It operates through the following business segments: North

America, International, and Amazon Web Service (AWS).The North America segment

includes retail sales of consumer products and subscriptions through North America-focused

websites such as www.amazon.ca and www.amazon.com.The International segment offers

retail sales of consumer products and subscriptions through internationally-focused websites.

The Amazon Web Service segments involves in the global sales of compute, storage,

database, and AWS service offerings for start-ups, enterprises, government agencies, and

academic institutions. The company was founded by Jeffrey P.Bezos in July 1994 and is

headquartered in Seattle, WA.

Current Quarter

Earnings per Share $8.90. Sales $111.6B. Reporting Date Oct 28

Earnings per Share

Growth quarterly -41.16% Growth annually 25.73%

Sales

Growth quarterly -1.28% Growth annually 23.19%

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CHAPTER 3

REVIEW OF LITERATURE

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REVIEW OF LITERATURE

Wang et.al (2008) made exploratory research on the influencing factors of online shopping in

China. The study pointed out four major influencing factors of online shopping such as

making safe medium of payment and credit means of online shopping, preserving privacy of

online shoppers, consumer cognition, consumer’s computer and internet experience. The risk

perception of consumer became the main restrictive factors of online shopping and most of

the internet users in the country were indulging in online entertainment other than online

shopping.

Sinha and Kim (2012) attempted to identify factors affecting Indian consumers’ attitude

toward shopping online by investigating Indian consumers’ risk perceptions. The

convenience risk seemed to be the only factor significantly affecting Indian consumers’

online purchases. In terms of gender difference, perceived risk is significant for male but not

for female while attitude has been significant factor for female, innovativeness has been

significant factor for male. The concerns associated with product delivery, social and

perceived behavioural control have been found to be significant factors affecting attitude

towards using internet for shopping.

From the qualitative analysis of factors influencing online buying behavior of college

students by Jadhav and Khanna (2016), the main influencing factors for online shopping were

identified as availability, low price, promotions, comparison, convenience, customer service,

perceived ease of use, attitude, time consciousness, trust and variety seeking.

Vaghela (2017) studied factors affecting online shopping behavior in the city of Surat and

concluded that perceived ease of use, vendor's characteristics, perceived usefulness, website

design are important factors for online shopping. Further, it is found that there is no

difference in terms of gender towards factors affecting online shopping which means male

and female are giving equal importance to these factors and same is with respect to the

income group.

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Jukariya and Singhvi (2018) studied factors affecting online buying behaviour of students in

Udaipur. The students were asked about their demographic profile, which included gender,

age, qualification, income, occupation, marital status and family type and to provide various

level of agreement with respect to different factors that affect their online buying behaviour.

The finding shows that the one factor which undoubtable has great impact on their online

buying is the personal privacy and security followed by transaction security and multiple

payment options, convenience and save time. The results of the study can be utilized by

practitioners in relooking or revamping their strategies for online shopping and help many

consumers in order to understand all advantages that online shopping is offering.

Bucko et.al (2018) conducted a study to determine factors that affect the consumers’

willingness to purchase product from the online store in the condition of Slovak market. 232

university students were selected randomly as respondents for the study and exploratory

factor analysis was used to analyze the data gathered. The findings of the study showed that 7

components such as price, availability, social proof, scarcity, product details, conditions and

social media activity are the most common factors affecting online shopping behaviour and

out of which price of the product became the most important factor among the respondents.

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CHAPTER 4

SIGNIFICANCE OF THE STUDY

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SIGNIFICANCE OF THE STUDY

To deal with challenges that are prevailing in E-commerce market, online retailers have to

understand E-commerce market, buyers’ behavior and consider all those factors that affect

online shopping in order to develop better strategies to retain existing customers and attract

more potential buyers. Consumer buying behaviour is affected by many variables, ranging

from personal motivations, needs, attitudes and values, socio- economic and cultural values,

age, sex, professional status to social influences of various kinds exerted by family, friends,

colleagues and society as a whole (Solomon, 2004). Studying various factors affecting online

shopping will help online retailers to understand the association between factors and

consumer buying behavior. In this context, research is aimed to study the various factors

affecting online shopping in Meghalaya and Mizoram.

OBJECTIVES OF THE STUDY

(i) To find out and rank the factors influencing online shopping regarding the students of

Govt.J.Thankima College.

(ii) To study the problems faced in online shopping among selected college students.

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CHAPTER 5

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The study consists of both primary and secondary data. The primary data is collected from

the college students of Govt.J.Thankima College. The sample consists of 50 students, 10 each

from different courses.

For collecting the respondents, Proportionate Stratified Random Sampling has been used to

study the students as one stratum in the College and from each stratum respondents were

selected randomly. Various scaling methods has been used for data analysis. The secondary

data is collected from various research papers, articles, websites, newspapers and magazines

keeping in view the purpose of the study.

i. PRIMARY DATA:

The data were collected through questionnaires among 50 students from Govt J Thankima

College.

ii. SECONDARY DATA:

The secondary data were collected from literature, websites, journals, articles in concerned

fields.

iii. SELECTION OF SAMPLE:

The sample were selected randomly among the students of Govt J Thankima College.

iv. SAMPLE SIZE:

The sample size is 50.

v. SAMPLING TECHNIQUE:

The sampling technique is proportionate stratified random sampling.

Stratified random sampling is a method of sampling that involves division of population into

smaller groups. The strata are formed based on members, shared attributes or characteristics.

vi. TOOLS AND TECHNIQUES USED FOR ANALYSIS:

Descriptive Statistics such as percentage and tabulation were used with the help of Microsoft

Excel.

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CHAPTER 6

DATA ANALYSIS AND FINDING

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DATA ANALYSIS AND FINDINGS

When it comes to online shopping there are several factors which influence shoppers prefer to

buy it online such as convenience, easy accessibility, time saving and so on. At the same time

there are also restrictive factors such as financial risk, product risk and delivery issues.

This study attempted to identify various factors affecting online shopping and rank those

factors which will help online retailers identifying which factors influence the shoppers to opt

for online buying and which factors restrict them. The probable attributes derived from

extensive literature review were listed and respondents were asked to rank some of the top

most factors for buying and not buying online.

FINDINGS

1. The respondent’s gender consists of 50% male and 50% female.

2. It has been observed that among the entire respondents, majority (60%) of the

respondents age group belongs to 20 – 23 years.

3. The maximum respondent’s educational qualification is HSSLC among the entire

respondents.

4. It is observed from the study that all the respondents use social media.

5. It has been observed that maximum (90%) of the respondents have been using social

media more than 2 years.

6. From the study it is observed that the maximum (80%) of the respondents are

always connected to social media.

7. From the study it is observed that majority (80%) of the respondents are attracted

towards brand through social media due to promotional offers such as discounts and

coupons.

8. It is observed that depending on the brand majority (60%) of the respondents are

likely to recommend a brand to their friends.

9. From the study it is observed that majority (50%) of the respondents are using social

media to search for information about clothing and secondly for electronics products.

10. From the study (70%) make purchases online frequently.

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Demographic profile of the respondents

The study has been conducted among the students of Govt.J.Thankima College. The

sample consists of 50 respondents, 10 each from different courses being offered in the

institution. Male and female online buyers among the respondents are equal.

The online shoppers who are in the age group of 20- 23 years constituted (60%), followed by

24-27 years (10%), below 20 years (30%). Out of the respondents (60%) of the respondents

belongs to the family size of 4-6, followed by family size of 7-9 (20%), more than 9 (10%)

and 1-3 (10%), all respondents are of undergraduate.

The respondents with the family income of Rs 1lakh –Rs 4 lakhs is the highest constituting

(40%), This is followed by the family income group of less than Rs 1 lakh (20%), Rs 4 lakhs

– Rs 7 lakhs (20%), Rs 7 lakhs- Rs 10 lakhs (10%) and above Rs 10 lakhs (10%).

Factors for buying online among the respondents

From our research we get to find out five most affecting factors which influence the

buying behavior of the respondent among the selected students from various courses of the

Institution. The most five leading factors are: heavy price discounts, Wide Variety of brand

choices, Time saving, Non-availability in the local market and Convenience.

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Table 1: Factors for buying online among the respondents

Table 1 represents the rank of the factors influencing the decision to purchase online

among the respondents. The overall ranking of these factors has been derived from

calculating percentage of the ratings by our respective respondents. The ranking shows that

the most common reasons why the buyers opted to purchase online is because of the heavy

price discounts, with a score of 1.5. Usually the customer seeks maximum saving and value

for money. Price as the most influencing factor for online shopping identified in this study

is consistent with the findings of the study by Synovate’se Nation survey ( 2007), Jadhav

and Khanna (2016).

The study shows that availability of wide variety of choices among brands as the

second most important factor influencing online shopping with 1.5 ratings score. Consumers

want more choices when it comes to shopping online (Comscore, Inc., 2013) and the

platform that online stores offer for variety of choices attract more shoppers to switch to

shopping online.

Time saving came in the fifth rank among factors influencing online shopping with

0.4 ratings. The ability to obtain a required service or product without leaving one’s home

makes online shopping attractive in today’s busy world. Some other research shows that

time saving as the most important attributes that drives consumer to shop online (Makwana

et.al, 2017). But we can take into consideration on the fact that online shopping can make

certain delays on delivering, though it certainly is one of the important factors we can say

it’s not the most influencing factors from our analysis

Non- availability in local market (0.65) came as fourth most important factor

influencing online shopping. It is assumed that this factor if given more importance since

north eastern states do not have shopping market as compared to other parts of the country.

Online shopping is influenced by its simplicity, convenient payment and ability to

compare price of the same product in different online stores. Convenience (0.85) came as

third most important factors upon the surveys collected from the respondents. In most cases

the shopping in online stores is selected for its convenience and simplicity (Bauboniene and

Gulevicuite, 2015).

SI

No.

Factors A B C D E Overall

Ranking

1 Heavy price

discounts

40% 20% 30% 50% 20% 1.6

2 Wide variety of

brand choices

30% 50% 25% 15% 30% 1.5

3 Time saving 5% 10% 10% 5% 10% 0.4

4 Non-availability in

the local market

10% 10% 5% 20% 20% 0.65

5 Convenience

15% 10% 30% 10% 20% 0.85

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Figure 1. Visual representation of collected data

The above Figure 1 represents an eye view reference of the overall rank of the factors

influencing respondents to shop online. Information on various factors influencing online

shopping has been collected and respondents were asked to rank these factors till 5th rank

based on their shopping experience. Numerical Scaling Method is used to produce scores and

ranks has been calculated to derive the overall ranking of the factors as shown in the above

figure.

1.61.5

0.4

0.65

0.85

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Heavy priceDiscount

Wide Variety ofBrand Choices

Time Saving Non-avilabilityin Local Market

Convenience

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Problems on online buying faced by respondents

The research, based on the respondents’ ranking on problems, found out five most

affecting problems which causes the respondents not satisfy for buying online. The five

problems are: Inability to touch the goods, Risk of financial loss in debit/credit card

transactions, Difficulty in return and refund, Long time in delivery of productsand Loss of

goods.

Table2.

SI No.

Problems A B C D E Overall Ranking

1 Inability to touch the goods

30% 35% 20% 20% 30% 1.35

2 Risk of financial loss in Debit/Credit card

transactions

20% 10% 20% 25% 5% 0.8

3 Difficulty in return and refund

30% 30% 40% 5% 20% 1.25

4 Long time in Delivery of products

10% 20% 10% 30% 25% 0.95

5 Loss of goods 10% 5% 10% 20% 20% 0.65

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The above Table2 represents the rank of the most common problems facing by the

respondents which discourages for not buying products online among them. The overall

ranking of these problems has been derived from calculating each factor’s score. From the

table, the problem which ranked first is the inability to touch the goods (1.35) in online

shopping. According to Retail Dive Consumer Survey and Google India study (2013),

ability to see, touch and feel product ranks highest among the reasons consumers choose

to shop in stores other than online.

Risk of financial loss in debit/credit card transactions ( 0.8 ) is the fourth most

important factor that impedes respondents from online shopping. Online trust is one of the

most critical issues that affect the success or failure of online retailers (Prasad and Aryasri,

2009). Financial risk is always the number one concern of individuals who are shopping

online (Reile, 2017).

Another common reason why respondents hesitate to shop online is difficulty in

return and refund ( 1.25 ) which came in second most affecting factors. The fact that many

online stores do not provide proper return and refund policy makes shoppers hesitate to

shop online. It is suggested to buy online from well established e - commerce companies

having proper return policy.

Even though expected date of delivery is provided by the online stores, there is no

surety that the ordered product will arrive on time. Risk of delivery issue ( 0.95 ) which

came in the third rank is one of the common factors which persuade people to shop offline.

Many a times, these orders take more time than expected to be delivered. It is important for

buyers to have realistic expectations and know when they can expect their orders. Timely

delivery and other priority services are the biggest challenges for online retailers in our

country (Nair, 2015).

Another common barrier of online shopping coming in the fifth rank is the fear of

loss of goods in transit ( 0.65 ). There are some cases when the ordered products did not

reach the shoppers. This causes a problem and huge loss for the online buyers especially

when the orders are prepaid. The possibility of receiving the products other than the ordered

products is another problem being faced by the online shoppers.

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Figure 2. Overall ranking of the problems

The above Figure 2 represents overall rank of the most common problems faced by

the respondents in their online shopping. The respondents were asked to rank various

problems of online shopping till 5th rank based on their past experiences. Numerical score

of these factors has been calculated to derive the overall ranking of the problems of online

shopping as shown in the above figure.

1.35

0.8

1.25

0.95

0.65

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Inability to touch the goods

Risk of financial loss in

debit/credit transactions

Difficulty in return and

refund

Long time in delivery of products

Loss of Goods0.65

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Demographic profile of the respondents

Table 3.

Number of respondents

Business Administration

Economics English Mizo Education Total

Male 5 5 5 5 5 25

Female 5 5 5 5 5 25

- 50

Fig. 3

The above figure represents the number of Males and Females present from each of the

courses.

50%50%

NUMBER OF RESPONDENTS

Male Female

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Table 4.

Age Group Percentage

Below 20 30%

20 – 23 60%

24 – 27 10%

Total 100%

Figure 4.

The above figure represents the different age groups among the respondents.

30%

60%

10%

Age group

Below 20 20 - 23 24 - 27

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Table 5.

Family Size Percentage

1 – 3 10%

4 – 6 60%

7 – 9 20%

Above 9 10%

Total 100%

Figure 5.

The above figure represents the number of family size each respondents belong to.

10%

60%

20%

10%

Family Size

1-3

4-6

7-9

Above 9

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Table 6.

Family Income Percentage

Below 1 Lakh 20%

1 Lakh – 4 Lakh 40%

4 Lakh – 7 Lakh 20%

7 Lakh - 10 Lakh 10%

Above 10 Lakh 10%

Total 100%

Figure 6.

The above figure represents each of the respondent’s family income sizes

20%

40%

20%

10%

10%

Family Income

Below 1 lakh 1 Lakh - 4 Lakh 4 Lakh - 7 Lakh 7 Lakh - 10 Lakh Above 10 Lakhs

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CHAPTER 7

CONCLUSION

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CONCLUSION

As online shopping attracts more people, positive or negative online shopping

experiences have a huge impact on the future buying behavior. The main objective of this

paper is to determine factors that affect the consumers’ willingness to purchase or not to

purchase product from an online store. Most of the influencing factors were found to be

matching with the factors identified in earlier research studies conducted in different

geographical locations such as heavy price discounts, wide variety of brand choices, non-

availability in the local market and convenience. Inability to touch the goods, risk of

financial loss in debit/credit card transactions, difficulty in return and refund, long time in

delivery of products and loss of goods are the most common factors for not buying online.

The findings of the study will be helpful for online retailers to design marketing model and

strategies for attracting more online customers. The retail strategies can be developed

keeping in focus the various influencing factors identified in this study.

The research data consists of students from different courses in Govt.J.Thankima

College, A larger sample size with different age groups and backgrounds might provide

different results. The findings should be interpreted with caution if it comes to the

generalization of research findings of North-east Indian online customers as a whole.The

further future study also can be carried out by considering more factors affecting online

shopping intention.

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CHAPTER 8

REFERENCES

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REFERENCES

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https://www.wsj.com/market-data/quotes/AMZN/company

[4]. AMZN | Amazon.com Inc. Profile | MarketWatch

https://www.marketwatch.com/investing/stock/amzn/company

[5]. Business and Financial News - CNN Money

https://markets.money.cnn.com/research/quote/forecasts.

[6]. Factors Affecting Online Buying Behaviour of University Students in ...

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https://www.businessperspectives.org/index.php/component

[8]. (PDF) Factors Influencing Online Buying Behavior of College Students: A ...

https://www.researchgate.net/publication/290496753_Factors

[9]. A Study of Factors Affecting Online Buying Behavior of Students

https://ijcmas.com/7-1-2018/T. Jukariya and R. Singhvi.pdf

[10]. Makwana et.al (2017). What Drives Consumers to Shop Online. IOSR Journal of

Computer Engineering (IOSR-JCE) e-ISSN: 2278-0661, p-ISSN: 2278-8727 PP 42-47.

[11]. Nair, Jayakrishnan S (2015). E-retailing in India: Opportunities and Challenges.

International Journal of Research in Finance and Marketing. Vol. 5, Issue 3.

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[13]. Price most important factor for online Shoppers (2007).Retrieved from

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[14]. Reile (2017).Factors Influencing Online Shopping Behavior

of Consumers.Retrieved from

https://www.searchfit.com/2017/05/01/factors-influencing-online-

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QUESTIONAIRES ON FACTORS AFFECTING ONLINE BUYING

BEHAVIOUR REGARDING STUDENTS OF GOVT J THANKIMA

COLLEGE

I am a student of BBA 5th Semester from Govt J. Thankima College, I am

conducting a survey on the impact of social media on consumer purchasing

decision. This is a part of my curriculum to complete my dissertation report.

The information provided by you will be strictly confidential and will be used

for academic purpose only.

1. Gender of Respondent?

Male, Female, Other.

=

2. Age of Respondent?

Below 20 years

20-23years

24-27years

=

3. Do you use social media?

Yes, No

=

4. How long have you been using social media?

Less than 6 months, 6 months to 1 year,1 to 2 years, More than 2 years

=

5. On an average, how many hours per day you spend on social media?

Less than 1 hour, 1 - 2hours, 2 - 3hours, More than 3

=

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6. What attracts you towards brand through social media/networking marketing?

Promotional offers such as discounts and coupons, Brand information Facts and factoids,

Brand invitation, Loyalty towards brand, Other:

=

7. If you follow a brand on social media, are you more likely to recommend to a friend? *

Yes, depend on the brand, No, Maybe

=

8. For what kind of purchase do you use social media to search for information?

Clothes, Electronics, Household appliances, Entertainment (movies, music, concert), Health

and beauty products, Other

=

9. How frequently do you purchase products/service online?

Always, Often, Sometimes, Rarely, Never

=