Comparative Study Of Online And Offline Shopping: A Case .
Comparative Study of Online and Offline Shopping:A Case Study of Rourkela in OdishaA Thesis Submitted for the Partial Fulfilment of Master Degree inDevelopment StudiesByPuja GuptaRoll No- 413HS1007Under the Guidance ofDr. Narayan SethiDepartment of Humanities and Social SciencesNational Institute of TechnologyRourkela – 769008, Odisha, IndiaMay 2015i
Dr. Narayan SethiAsst. Professor (Economics)Department of Humanities and Social SciencesNational Institute of TechnologyRourkela – 769008Odisha, IndiaDate :RourkelaCERTIFICATEThis is to certify that Ms. Puja Guptahas carried out the research embodied in the presentdissertation entitled “Comparative Study of Online and Offline Shopping: A Case Studyof Rourkela in Odisha”under my supervision for the award of Master Degree inDevelopment Studies at the National Institute of Technology, Rourkela. This thesis is anindependent work and does notconstitute part of any material submitted for any researchdegree or diploma here or elsewhere.Dr. Narayan Sethi(Research Supe rvisor)ii
Acknowledge mentsFirst of all I would like to express my profound veneration and deep sense of gratitude to myresearch supervisor Dr. Narayan Sethifor instilling confidence in me through hisinspirational words and providing me with invaluable comments and criticism on manyissues. I will always be indebted to his for his constantly rendering timely advice and sparingvaluable time. I will always be indebted towards you ‘sir’ for giving me moral support whichI required the most throughout my thesis work.I would also like to thank Prof. Bhaswati Patnaik, Head of the Department of Humanities andSocial Sciences, and other faculty members for their continuous support. I am also grateful toall the faculty members in the Department. I am also thankful to the office staff for theircooperation. I am proud to be a student of the department and grateful to be a student ofNational Institute of Technology, Rourkela.My heartfelt appreciation goes to my interviewees who took time out of their busy schedulesfor participating in this research.I would also like to thank my parents for their moral support and blessings to carry out thisthesis work.I have no word to thank my near and dear friends who have upholder the spirit in which theproject report was framed.Above all I would like to thank the Almighty for His blessings and my family and friends fortheir unending motivation.Puja Guptaiii
ContentsCertificateAcknowledgementLists of tables and chartAbstractPage no 1Chapter IIntroduction, Issues and Objectives of the Study1.1 Introduction1.2 Factors affecting online shopping1.3 Factors affecting offline shopping1.4 Statement of the Problem1.5 Significance of the Study1.6 Objectives of the Study1.7 Methodology of the Study1.8 Organization of the ThesisChapter IIReview of Literature2.1 Review of Related Studies2.2 ConclusionPage No.2-111-33-77-899-1010111112-2212-2222Chapter III3.1 Introduction3.2 Demographic profile of the study area3.3 Conclusion23-472323-4747Chapter IV5.1. Summary and conclusion5.2. Scope for further researchAppendix 1Bibliography48-4948495051- 53iv
List of Charts and TablesTable No. /Chart NoTitlePage No.Chart 3.1Sex ratio of the respondent24Chart 3.2Caste of the respondent25Chart 3.3Different age of the respondent26Chart 3.4Qualification of the respondent27Chart 3.5Different income group of therespondentChart 3.628Preference of the different onlineshopping site29Chart 3.7Mostly purchased goods from shopping sites30Chart 3.8Delivery of the product31Chart 3.9Respondent are availing online shoppingfor the following yearChart 3.1032Frequency of the product purchased fromonline shopping by the respondent33Chart 3.11Product available on pin code34Chart 3.12Is website provide the sufficient information?35Chart 3.13Type of advertisement mostly attractsto purchase onlineChart 3.14Preference of the product with same price both36in shop and on internetChart 3.15Preference of the respondent for the medium of36shoppingChart 3.16Preference of online shopping whenprice lower than the marketChart 3.17Does online shopping is as secure as traditionalshoppingChart 3.183737Selection of goods on internet is very broadv
as compared to the traditional market?Chart 3.19Type of advertisement mostly attract toshop offlineChart 3.2039Things you mostly prefer from onlineshopping39Chart 3.21Accessing shopping websiteTable 3.1Reason for doing online shopping accordingto the age groupsTable 3.2Preference of the age group about the items44Preference of online shopping sites according tothe delivery of the timeTable 3.643Preference of the payment process accordingto the age of the respondentTable 3.542Preference of the respondent for the shopping siteaccording to the delivery timeTable 3.44041they never purchased from the online siteTable 3.33844Preference of the shopping sites according toconsent/without consent of cancellation of theproductTable 3.745Preference of the product to see while shoppingofflineTable 3.846Preference of the respondent to buy product,when price of the good is same in online andoffline market47vi
AbstractThe study tries to recognize that, how consumer measure channels for their purchasing.Specifically, it progresses a conceptual model that addresses consumer value perception forusing the internet shopping versus the traditional shopping. Earlier study showed thatperceptions of price, product quality, service quality and threat strongly impact perceivedvalue and purchase intents in the offline and online network. Observations of online andoffline buyers can be evaluated to see how value is constructed in both channels. It is hithertoto recognize what factors influence online and offline shopping choice progression. Theobjective of this study is to provide an impression of online shopping decision process bycomparing the offline and online decision making and identifying the factors that motivatecustomers to decide whether to do online shopping or go for the offline shopping.Consumer’s shop when and where they want, where they are comfortable with the productsand the choice of shopping. The study finds that female are more into online shopping thanmale. Since last two years as population are more aware of the technology the onlineshopping increased immensely. The people from the age group 35 and above are less likely todo online shopping because they are less aware of the technology. However the respondentsaid that they will love to purchase from online shopping if only the price of the product isless than the market. They revealed that it is fairly important to go for e-shopping.Keywords: Technology, consumer,online shopping,offline shopping,internet,purchasingbehaviour1
Chapter IIntroduction, Issues and Objectives of the Study1.1. IntroductionThe increase in technology provides good opportunities to the seller to reach the customer inmuch faster, easier and in economic way. Online shopping is emerging very fast in recentyears. Now a day the internet holds the attention of retail market. Millions and millions ofpeople shop online. On the other hand the purchasing of product from traditional market iscontinuing since years. Many customers go for purchasing offline so as to examine theproduct and hold the possession of the product just after the payment for the product. In thiscontemporary world customer’s loyalty depends upon the consistent ability to deliver quality,value and satisfaction. Some go for offline shopping, some for online a nd many go for bothkind of shopping. The focus of the study is on the consumer’s choice to shop on internet andat the traditional stores at the information gaining period. However online shopping is easierfor the people and less price than the offline shopping. While making any purchase decisionconsumer should know the medium to purchase whether online shopping or the offlineshopping. Consumer should decide the channel for them which can best suit to their need andwants and which can satisfy them. In this competitive world how consumer can decide theparticular medium for their purchase of goods is very important to understand in a managerialpoint of view. (Laing and Lai, 2000) said that the internet shopping is the third best and mostpopular activity over internet after online shopping next comes the e- mail using,instantmessaging and web browsing. These are even more important than watching or gettingentertain by the internet or getting any information or news, this are the two very commonthought which comes to the people’s mind when considering the internet users do when theyare online. The behaviour of online shopping is also known as online buying behaviour andinternet shopping. Buying behaviour means the purchase of good over internet using webbrowser. Online shopping also consist the same five steps which is related to traditionalshopping behaviour. (Chiang and Dholskia, 2003; Lynch, Kent, and Srinivasan 2001) theysaid that in the typical way of online shopping when the consumer need some product orservice they go through the internet and browse or search the things they need and their2
information. But rather than searching actively, many a times potential consumers areattracted by the information about the product they want. They see many products online andchoose the best one which suits him/her. Then they purchase that product and finally thetransaction takes place and post sales service provided by the online sites. Online shoppingattitude and behaviour are related to the consumer. Previous studied have focused on why theproducts of the online shopping is different from other products. Many studies have focusedthat the high touch products that the consumer feels when they need to touch, smell or try theproduct. It requires the offline shopping at the purchasing stage because it cannot be done inthe online shopping. Even with the increase in the online shopping and the recognition thatonline shopping is more likely to impose the pressure on offline shopping or traditionalshopping. The research is very limited in this area or field. Online or e-shopping is a kind ofelectronic shopping which allow the consumer to purchase goods over the internet directlyfrom the seller using a web browser. There are some alternative names of online shoppingthose are as follow- e-web store, e-shop, e-store, internet shop, web-shop, web-store, onlinestore, online store front and virtual store. Mobile commerce or m-commerce is described aspurchasing from the online retailer by the mobile optimized online sites or application (app).(Aldrich Archive, 1982) online shopping is invented by a English entrepreneur MichealAldrich in 1979. (Palmer& Kimberly,2007) Tim Berners Lee is the one who created the firstWorld Wide Web server in 1990. It was opened for a commercial purpose. There after manytechnological innovation emerged in 1994 like the online banking, the opening of onlinepizza shop by Pizza Hut, Netscape SSL v2 encryption standard for secure data transfer, andIntershop’s first online shopping system. In 1994 the first secure transaction was over theweb either by Net market or Internet shopping. Amazon was launched in 1995, it is the firstonline shopping site of the world and after that eBay was introduced in 1995.Today manycountries are doing online shopping but still some countries are at the starting point of theexperiment of online shopping. In 1987, the merchant account was launched that helped thesoftware developers to sell their software online easily. Swreg was the name of first softwareand the oldest software that is still available. Future shop is a book for how new technologywill change the way of shopping and what the customer buy. It was published in the year1992. The book consists of the topic like what will happen in the future date of e-commerceand how the internet will take place in the society. 1994 is the mouth of year of onlinecommerce and Yahoo is launched in this year. In 1995 approx. 12000 domain names wereregistered in the internet. In 1998 Google entered the world of e-commerce and yahoo3
launched yahoo store online. The customer of online shopping should have internet and avalid method of payment in order to purchase the products from the internet. Amazon,Myntra, flipkart are some of the examples of the successful online shopping sites that use lessprice of the items and large stocks to attract the consumer.In general the population from high level of income and high level of learning are morefavourable to do online shopping. The population who are more knowledgeable and moreexplored to the internet are more into online shopping. The increase in technology increasesthe online shopping by the consumer. The increase in technology creates a favourable attitudetowards the consumer for online shopping.1.2. Factors Affecting Online ShoppingOnline shopping becomes relevant in the last decade. The kind of business online retailer aredoing is proof enough that they are providing some benefits to customer which offlineshopping does not give to the customer. These are the factors affecting online shopping:Risk: When customer buy products from online shopping they do not touch or feel theproduct in a physical sense .Hence we understand that lot of risk is involve while buying anonline product whether it will reach us on proper time or not is also a concern and a lso theremay arise a risk of product size and colour as it may differ in real view or sense. Sometimesthe product ordered is kind of damaged.Convenience : Online shopping is much more convenient than offline shopping. Instead oftaking out your vehicle and visit shop to shop you can just sit at your home and do theshopping. It is convenient to sit at one place and shop the product of our choice withoutmoving from place to place. Once you have decided on what you want to buy the paymentprocess is seamless and the order is delivered to your place. Online shopping makes thingsmore convenient. We can have a lot of choice over there in any kind of material we want todeal with that too without any fear of dealing with any dealer or distributers. Online s hoppingis convenient in its real sense as it do not carry any dealing with issues of asking for wanteditems or issues of asking for desired kind of items which helps in avoiding the part ofwaiting, asking, questioning about the product.4
Anxiety:People’s anxiety of exploring the sites and experimenting over them is also a matterof concern. Sometimes people those who are not very known to any sites like flip kart,myntra or any sites they just feel like it’s a tough kind of activity over net and itscomplicated in there sense as they are not very fond of doing online shopping as it takes atime to even understand the product about its details. This particular activity makes themirritated and anxiesious over any kind of fatal online dealing.Previous online experience: How has been a person’s experience in past as far as onlineshopping is concerned is a major story of concern. Previous experience is what mattersactually as its hamper or sometime it keep good view or mood of people. There are twoexperiences one is about good and another is about bad. Both has its own and different affectin the mind of buyers. So these factors also influence online shopping or e shopping.Pricing Policy: Online retailers gets an inherent advantage in pricing as they don’t have tobear expenses like store rent, bills etc. They can pass their price directly to customer andgenerally offer a lower price to customer than offline market. Even when shipping chargesare included than also it is better than the offline shopp ing. Hence, determines the level ofonline shopping. Lower the price- higher the mood to demand, higher the price –lower thedemand. Price of any commodity also influences the purchasing power of any specific buyer.Consumer generally prefer mild or normal price with good quality and do not want to spendor expense lot for any kind of stuff. So buying and selling both are simultaneously affectedby the price of product.Quality: The quality of product at online sites and offline stores vary a lot and then thisdetermines the frequency of online shopping. Quality also carries good affecting nature overany kind of shopping. As consumer or buyer want to have a good quality of product as theyspent their huge sum of money. In general, qualities is a primary need over any kind ofpurchasing as it somewhat secure or give a good sense of buying or kind of guarantee aboutthe product preferred.Online trust: It depends on customer perception whether they trust a particular site and itsproduct and services. Hence the frequency of online shopping also depends upon whetherthey trusta particular site or not. People are different in there nature and thoughts, somekind of people trust online dealing some kind of people are in fear of online dealing. Trust5
carry a lot of points examples- trust about the same product size quantity weight and securityetc.Tangibility of the product: At the store the customer gets to touch and feel the product theypurchase before buying which help the customer to take the decision to buy the product or notwhether the product will suit the customer need or not. Whether, we can and see feel aproduct is also a reason which determines whether a person’s wants to go for shopping or not.Tangibility of any product also determines the online shopping. Without touching thepreferred or desired substance nobody can get its security about the worthiness or quality orsense of any preferred product.Delivery time: The product ordered by the customer in online shopping takes a minimum ofsix to seven days to deliver the product to the customer. But in offline shopping thepossession of the goods is immediately transferred to the buyer. So this is a major factorwhich affects the online shopping. People want a good delivery time; they prefer to get aproduct in a desired time or in short time of duration. Duration is the second major factoraffecting the demand of product.Income: The person whose income is more, do more online shopping as compared to theperson whose income is less. Income plays a major role to purchase online products. Higherincome people prefers to purchase online more than offline as it gives them reliability andconvenient. Higher the income higher wills the purchasing of online product and vise- versa.Taste and preference: The taste and preference of the customer vary from customer tocustomerand time to time, taste and preference also a factor which influences onlineshopping. Taste and preference of age group also matters in online shopping. Old people buyor purchase product for their kind of use. Young generation or teenagers use to purchase theirtaste of product. Taste and preference move in tend of ages and choices. Every customer orbuyer choices are different in nature as per their ages.Information: The information given in the site may not be correct or may not be appropriateinformation. The full information about the quality of the product may not reach to thecustomer. Hence it will affect the online buying of the customer. Information provided by thepreferred sites may be not the same about the detail of the product. May be with the provided6
information and details customers are not very satisfied. Sometimes it happens that evenmany customers use to buy the product after their full knowledge of details as they prefers thedetail are accurate and good in sense. Information related to product may vary in its realsense when it arrives or delivered to relevant customer.Variety: The kind of variety that a customer gets online is hard to match any productpurchased offline. The online retailer’s stock products from the entire major brand and acustomer can find any product in their listing no matter how hard to find it is in the offlinestore. Online and offline both shopping provide variety of range from various brands. Varietyin i
i Comparative Study of Online and Offline Shopping: A Case Study of Rourkela in Odisha A Thesis Submitted for the Partial Fulfilment of Master Degree in
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