A PROJECT REPORT ON General Management

“Internet Shopping and Buying Behavior of Students”

Submitted by
Name : Aditya Bagul
Roll no : M21137
Specialization : Finance
Batch : 2021-23
Email : [email protected]
Cell No. : 8976000474
Project Guide : Prof. Machhindra Katare

SYDENHAM INSTITUTE OF MANAGEMENT STUDIES,

RESEARCH AND ENTREPRENEURSHIP EDUCATION (SIMSREE)

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 Internet Shopping and buying behavior of Students
This project report in the area of Finance Specialization based on the in-depth
study of the project theme is submitted in May, 2023 to Sydenham
Institute of Management Studies, Research and Entrepreneurship
Education in partial fulfilment of the requirements for the award of the two
years Full Time Degree, Master in Management Studies (MMS), affiliated
to Mumbai University approved by AICTE

Submitted by

Name: Aditya Bagul

Roll No: M21137

Through

Name of the Guide: Prof. Machhindra Katare

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 Certificate
This is to certify that the project report titled – “Internet Shopping and
buying behavior of Students” is submitted in May, 2023 to Sydenham
Institute of Management Studies, Research and Entrepreneurship
Education by Aditya Bagul bearing Roll. No. M21137, batch 2021-23 in two
years Full Time Degree, Master in Management Studies (MMS), affiliated
to Mumbai University, approved by AICTE
This is a record of his work carried out under my guidance. I am satisfied with
the quality, originality and depth of the work of the above qualification.

Place: Mumbai
Date :

___________________________
Prof. Machhindra Katare

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 Acknowledgement
This is an attempt of thanks-giving by the author to those who have helped the
author during the work. It was a great experience to learn and study in a
professional environment. I also want to use this opportunity to express my
deepest gratitude and special thanks to Prof. Katare who in spite of being
extraordinarily busy with her duties, took the time to guide me and keep me on
the right path and allowed me to carry out my internship at her esteemed
organization.
I would also like to express my gratitude towards our Director Dr. Shriniwas
Dhure and the other faculties at SIMSREE, who prepared and taught me the
skills which were essential prerequisites for the finance field and which I
applied diligently in my internship. This opportunity has provided me with a
lot of insight into the world of finance and I will definitely strive to use the
skills and knowledge.
Aditya Bagul

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 EXECUTIVE SUMMARY
The project discusses internet retailing, which is one of the most promising
kinds of retailing in today's technologically driven society." Online shopping
in India has evolved from a low-profile notion to one that is now well-known.
Both marketing firms that have produced wonderful campaigns to spread the
word about this notion and the customer base who have begun shopping
extensively for products online deserve credit for this. Online buying has
evolved into a practise that is now widely accepted by individuals all around
the world. Shopping has long been a pastime in India that has been performed
with zeal unsurpassed by any other activity. Many individuals in the Indian
subcontinent have realised the benefits of foregoing stores and delving into the
internet world with their credit card data and their dreams. College students
make up a sizable portion of this population, which is becoming increasingly
interested in internet shopping. Much study has been conducted throughout the
world in order to understand the purchasing habits and patterns of this next
class, which spends 3-4 hours of their daily schedule on the internet. They
have a greater number of technology aficionados and gadget geeks. According
to recent surveys, many college students prefer to purchase online rather than
travel to the market and spend time there. Markets have evolved into more of a
social gathering place for them than a shopping destination. This research aims
to better understand how college students act when purchasing online, as well
as their attitudes regarding online shopping. The project focuses on two
objectives that must be met. The initial goal is to identify the elements that
drive and inspire students to choose online purchasing over traditional
shopping. What advantages do they see in virtual marketplaces and shopping,
which have surpassed traditional shopping methods. The second goal is to
research all of the things that college students buy online. Which are the most
common categories among them for which they are willing to purchase online,
and which products/categories do they still prefer to shop in person? The
initiative would assist companies and organisations in understanding the
behaviour of these students for whom they are waiting in the real world. Even
for enterprises who have chosen to use this channel, the initiative will assist
them in better developing their offers, as they primarily target college students
as their target clients.

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 TABLE OF CONTENTS

Sr No Particulars Page No

1 Introduction & Research Methodology 7

1.1 Introduction of the Project 7

1.2 Research Objective 8

1.3 Research Methodology 8

1.4 Limitations 8

2 Literature Review 9

3 Internet Retail Scenario in India 13

4 Analysis & Interpretation 15

4.1 Questionnaire 25

5 Findings & Recommendation 29

6 Annexure 30

7 Bibliography 31

8 Student Profile 32

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Chapter 1 – Introduction & Research Methodology
1.1 Introduction of the Project
The project focuses on two objectives that must be met. The initial goal is to
identify the elements that drive and inspire students to choose online
purchasing over traditional shopping. What advantages do they see in virtual
marketplaces and shopping, which have surpassed traditional shopping
methods. The second goal is to research all of the things that college students
buy online. Which are the most common categories among them for which
they are willing to purchase online, and which products/categories do they still
prefer to shop in person. The initiative would assist companies and
organisations in understanding the behaviour of these students for whom they
are waiting in the real world. Even for enterprises who have chosen to use this
channel, the initiative will assist them in better developing their offers, as they
primarily target college students as their target clients.
E-commerce seemed to have enabled every area of everyday living in recent
years. In a very short period of time, both individuals and organisations have
adopted internet technology to boost productivity, maximise convenience, and
increase worldwide connections. The internet has become a vital part of daily
life, from banking to shopping to leisure.
E-business is described as "the conduct of business over the internet, including
not only buying and selling but also serving customers and collaborating with
business partners."
Online Retailing
Since the early 1990s, the retail landscape in India has been marked by a
significant transition away from traditional kirana shops and towards modern
forms such as department stores, supermarkets and specialised stores in a
variety of sectors. Today, these retail formats have developed a strong presence
in prominent sites in metropolitan and mini-metro centres, and in recent years,
they have moved across countries, exposing customers in these places to
modern shopping alternatives and experiences like never before.
Even as organised retailers gain market share from conventional channels, they
play a growing role in driving consumption to new heights. According to
IMAGES F&R Research, total private consumption expenditure (in direct
retail sales) is estimated at 10,500 billion (US $233 billion), growing at a rate
of 5% per year; organised retail's estimated share is only 350 billion (US $8
billion) at the moment, growing at a rate of more than 30% per year.
In the glare of this entire retail image, there exists a less apparent, ultra-
modern, and hi-tech retail channel known as Online Shopping, with about 38.5
million customers (internet population) and total sales revenues from online
shopping of Rs.1,180 crore in 2010-11. The numbers are increasing at a rate of
over five million each year, and these customers provide marketers with a
winning mix due to their interest in and readiness to accept technology.

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1.2 Research Objective
Following are the objectives of the study
• To understand the concept of online shopping
• To understand the benefits and drawbacks of online shopping
To understand the online shopping wave in college students
• To analyze the consumer behavior of students
• To study the reasons behind various purchases

1.3 Research Methodology

The information gathered comprises both primary and secondary data. Primary
data is information gathered via the use of a questionnaire. Secondary data is
information gathered from publicly available sources such as prior corporate
reports, publications, and websites. And these sources serve as credible
secondary data sources for analysis.
1.4 Limitations of the Study
A variety of elements influence the internet customer. However, in order to
explore the influence on the online consumer, this research will aim to identify
the primary aspects influencing the online consumer and will thus try to reduce
them to a few. There are several ideas and models that identify the customer in
the subject of consumer behaviour. This study will be limited to identifying the
customer based on consumer attributes and the consumer purchasing process.
Consumer behaviour varies based on the goods or service purchased. As a
result, depending on the product or service, different characteristics are of
varying value to consumers. As a result, because this is the most commonly
purchased product on the Internet, our research will be limited to it. Given the
constraints of both time and resources, this seemed to be the best option.

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Chapter 2 : Literature Review
Online Shopping in Malaysia
Malaysians began using the internet in 1995. MIMOS and Beta Interactive
Services performed a survey research in 1995 that revealed that 2.0% of the
population has access to the internet, with statistics explaining that out of 20
million people, 20 thousand persons had access to the internet in 1995.The
percentage of internet users has increased from 2.0% in 1995 to 2.6% in 1998.
According to Salman et al., (2013), noteworthy computer sales occurred in
2000, after being low in 1998. Furthermore, the Ministry of Energy,
Communication, and Multimedia revealed that in the year 2000, total 7.0% of
the population subscribed to the internet, compared to 2.6% in previous years.
According to resent data of internet subscribers in among native discovered
72% (Salman et al., 2013), online shopping began late in Malaysia due to the
late awareness of internet in the local market as well as the tendency towards
utilising internet. In Malaysia, the internet is mostly used for pleasure and
communication; it is rarely used for business or e-commerce (John & Jacki,
2001). Furthermore, internet use is not as prevalent in Malaysia as it is in
Europe and the United States for online transactions. According to the study,
nearly all internet users enjoy visiting online shopping stores, but only a tiny
percentage of them do so. According to John and Jacki (2001), only 4.0% of
adults did online shopping in 2001, whereas a recent Nielson study stated that
Malaysia is able to place in the top ranking for online shopping, with 6 out of
10 using the internet for online shopping, a significantly high figure in the
online shopping market.(Jacki, 2001)(al, 2003).
According to the most recent Malaysian Master Card study (2012), 67.0% of
consumers did online purchasing in 2011, which is 12.0% more than the
previous year. Malaysians' confidence in internet buying has improved from
36% in 2011 to 39.0% in 2012. Malaysians' intent to purchase online is lower
when compared to other South East Asian countries. One of the most
significant advantages of the internet and online buying is that it has removed
the barrier of limited time and distance travel to go shopping. Most
organisations have moved to a single-click option from home; simply place an
order and it will be delivered to your door, which not only saves time but also
makes the goods available for a longer period of time.
The online merchant must understand customer wants in order to play a role
and compete in the market (Chen et al., 2009). Furthermore, the behaviour of
online consumers is difficult to anticipate, but by maximising advantages and
minimising hazards, online purchasers might be motivated to shop.(al C. e.,
2003)
Online Shopping and Consumers Behaviours
Kuester (2012) described consumer behaviour as the strategy used by
individuals or groups to pick any product or service, experience, or concept to
meet their requirements, as well as the long-term influence on the consumer

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and society. Until the late 1960s, the study of consumer behaviour was novel.
Consumer behaviour research was inspired by various fields such as
economics, marketing, and behavioural science. Furthermore, the notion of
extensive consumer behaviour research was developed in psychology and
social science, where individual and group studies on human nature,
behaviour, and attitude were undertaken (Smith and Rupp, 2003). As a result,
because the penetration of technology and business trends has shifted to the
internet, the behaviour must be studied. In the information age, the internet has
provided and opened a new window for the globe to use internet technology to
purchase and sell online things where physical involvement is not required.
Because there is no physical touch between them in the online purchasing
sector, it is critical to analyse consumers' behaviours towards product shopping
and payment online. In his study, Nazir et al. (2012) emphasised the need of
analysing and comprehending customer behaviours. The relationship between
online selling items and their marketing tactics and customer behaviour is
inextricably linked. Many research papers have been discussed in the past
concerning online customer behaviour and the elements that influence it.
Conversely, since individual behavior is different from others so further
research has suggested. (Rupp, 2003)(Constantinides, 2004)
Although consumer use of internet technology has increased, internet online
purchase remains well behind the targets established by many business bodies.
As a result, internet customers are becoming increasingly crucial for research
and consumer concern. Anderson and Srinivasan (2003) divided the individual
online purchasing drive into three categories: perceived risk on the web
channel, online shopping advantages and customer experience, service quality,
and trust. The second group includes risk mitigation, product and website
feathers, and consumer behaviours. Consumer buying behaviour is influenced
by demographic factors, computer and internet expertise, and psychological
factors. Kotler & Armstrong, (2010) demonstrated that the buyer’s perception
of the shopping online is influenced by several parameters among online
advertisement on web links divert his mind to do online shopping.
Factors affecting Online Shopping Consumer Behaviors
There are several factors directly or indirectly affecting the online shopping
consumer behavior each is explained below.
E-Satisfaction
According to Lin (2003), in order for organisations that manage online
administrations to be confirmed and acknowledged by their clients, they must
supply the greatest communicated esteem so customers may consider it a point
of preference and stay faithful to them. Organisations may assess this
characteristic by looking at consumer loyalty, and factors influencing this
fulfilment include consumer wants, esteem, and cost. Mostaghel (2006) claims
that shopper fulfilment is critical to improving the financial execution of
administrations in organisations, which is the second most important item for
them after gaining a benefit. Organisations perceived the rapid advancement of

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innovation as a chance to achieve client loyalty, dependability much more
easily and with lower expenses.
Trust and Online Risk
According to Gommans et al. (2001), trust is an important factor in online
purchasing behaviour and e-reliability. Security is linked to trust. Because the
buyer cannot view the goods in person when requesting it and cannot inspect
the salesman's eyes while doing so, it is critical for businesses to build trust
among their customers in order to avoid weaknesses. When everything is said
and done, consistency and brand trust can aid in overcoming and defeating
some Internet limitations. He also recognised that purchasers' fear of online
deception (Visa extortion, non-delivery of goods) is one of the major reasons
why they do not utilise e-business on a regular basis. Anderson and Srinivasan
(2003) expect that the obvious risk is associated with customers' fear of losing
a few online transactions. In any event, people also associate danger with the
chance of losing anything when purchasing or using the goods or service.
E-Loyalty
The reliability refers to a strong bond between the brand and the client. That
firm link is demonstrated by an eager connection that connects the customer's
congruity of acquisition and utilisation. According to Gommans et al. (2001),
e-reliability may be expressed as store loyalty, which means that customers
constantly go to stores and buy items from the same brand. He also defines
client loyalty as a period when customers demonstrate and rehash purchasing
behaviours that are favourable in nature and are associated with the item seller,
and they repeat this activity constantly.
E reliability is defined by excellent client service, on-time delivery, persuasive
item presentations, helpful and reasonably estimated dispatching and handling,
and clear and trustworthy security procedures. Gommans and colleagues
(2001) Reichheld and Schefter (2000) identified three e-dedication
preferences. The first, and most important and costly, is acquiring loyal
customers and keeping them loyal later on. Second, loyal customers consume
more than switchers, indicating that they would spend more money later than
the others. The final and most important point is that loyal customers
frequently suggest and advocate non-consistent purchasers to buy from a
certain business or brand, which is the case when loyal customers use verbal
correspondence.
Online Services
According to Cheung and Lee (2005) in their study, the SERVQUAL tool is
used for assessing purchasers' wishes and attention to administrations, and it
contains five measurements: tangibles, consistent quality, responsiveness,
affirmation, and compassion. Tangibles and consistent quality are related to the
data and administrative quality provided to clients. Responsiveness refers to
shop responses when customers have problems or questions about an item.
Affirmation refers to enabling customers' faith and certainty and demonstrating
that each operation inside the organisation is completed by persons who are

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experts in that sector, whilst compassion refers to making care and providing
special personalised attention to clients.
Perceived Value
Perceived Value is the primary section in relationship marketing and is mostly
the consequence of showcasing exercises. According to research, visible
quality is immediate and is strongly related to fulfilment. Clients might thus
insightfully consolidate their perspective of what they obtain (advantage) and
what they required to yield in order to achieve a different administration.
Furthermore, Hsin and Wen (2008) stated that obvious quality is the most
important indicator of procurement aim. If a purchase resulted in an
anomalous condition of worth, the customer's degree of repeat purchase would
increase. Guenzi et al. (2009) discovered, as normal swap, that item esteem
discernments promote the influence of shop natural signals and store selection
criteria on store support aims. In Malaysia, the study focused on the role of the
two concepts in data frameworks (ISs) acceptance by businesspeople, which
was shown to be effective. This investigation's usability refers to the degree to
which a customer believes that online buying would be easy.(al G. e., 2009)
Firm Reputation
According to Hsin and Wen (2008), business reputation may be defined as
consumers' judgements of how effectively a firm takes care of customers and
is really concerned about their wellbeing. Furthermore, Hsin and Wen (2008)
discovered that great reputations provide enterprises with a "buffering effect,"
shielding them from some of the negative consequences of failure. He believed
that a company's reputation diluted the link between failure severity and
satisfaction, decreased classifications of controllability and stability, and
increased repurchase intentions following service failures. Controllability and
stability were only connected to repurchase intentions; satisfaction did not
completely assist these correlations. Given past study findings, it is anticipated
that a positive corporate reputation would likewise contribute to higher online
repurchase intentions.
Privacy
Privacy refers to the extent to which an online shopping website has been
proven to be secure and protects the consumers' personal information. The
capability of new technologies in terms of information processing has
expanded, which, combined with its complexity, makes privacy a significant
matter of concern (Monsuwe et al., 2004).
Functionality
The degree to which a website provides enough information about the
products/services being marketed is referred to as functionality (Law and Bai,
2008). Ujwala and Vinay (2014) describe website functionality as offering a
timely, efficient, and effective distribution mechanism for online content. A
website may be the sole means for an online shop to communicate with its
customers.(Bai, 2014)

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Chapter 3 : Internet Retail Scenario in India
Only a few shops in the West operate in a single channel. Many brick-and-
mortar and catalogue-based companies have websites, many Internet-based
merchants have physical storefronts, and television shopping channels are
collaborating with catalogues and conventional retailers. Customers anticipate
it, and business need it.
The interaction between the Internet and trade has progressed beyond the basic
stage in India. According to the Internet and Mobile Association of India
(IAMAI), online purchasing exceeded Rs.570 crore in 2008-09 and reached
Rs.1,180 crore in 2010-11, marking a rise of 107% over the previous year.
There are three key drivers for online shopping catching up in India :-
1) The Internet and greater PC penetration, which is complemented by
dropping computer prices.
2) The Indian middle class is rising, with increasing spending power but
restricted personal time.
3) Rising credit and debit card usage, along with a growing youthful
population that spends substantial time online.
The Future Group, previously Pantaloon Retail, announced the introduction of
an e-commerce concept, www.futurebazaar.com, in May 2006, in order to tap
into the rising sector of online customers. "Online retailing could provide a
completely new dimension to retail," Kishore Biyani stated. Netizens are a
new and rapidly growing demographic of customers who spend more time in
front of their computers. We considered this prospect, which led to our entry
into the e-commerce industry. In the following year, we want to make Rs. 300
crores from this initiative. We shall deliver everything, everywhere, and at all
times to every Indian client in the most lucrative way possible."
Internet : The Better Alternative
After all of this research, why would the ordinary guy in India do internet
shopping? What is the motivation to try a new purchasing medium?
Pricing the technology, there should be compelling reasons for everyone to
attempt this new medium of purchasing. The advantages must extend beyond
simply convenience. For one thing, the customer will undoubtedly be
interested if he can acquire products cheaply on the internet.
United Television's Chief Executive Officer (New Media), who owns the
website Tsnshop.com: "Because the Internet is a new medium, we must
persuade people to use it to buy." Furthermore, K Vaitheeswaran, vice
president (marketing) of Bangalore-based Fabmart, says, "In order to convince
a customer to use this new medium, one must offer an incentive to buy on the
Internet." Otherwise, getting a consumer to purchase with you would be quite
tough.It is obvious that the reasons for purchasing over the Internet are
convenience and speed. But the issue now is "How"? One can go to a physical
shop who has 10,000 goods in his store. He may be a tenth of a percent out of

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stock. On the other side, the Internet provides millions of things with no risk of
being out of stock. Another advantage of purchasing on the Internet is the ease
with which information can be retrieved.
Product information is just a few clicks away on the Internet, and it can all be
accessible from the comfort of your own home. In sharp contrast, traditional
commerce stands out: the consumer searches frantically, dashes up and down
the aisles, and grills a badly trained store worker who is unable to assist him.
In the process, important time is wasted. Simply put, spending 15 minutes
shopping on the Internet might save you a two-hour trip to the mall.
Consumers would rather preserve this time in order to spend more time to their
professional and household commitments.

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Chapter 4 : Analysis & Interpretation
Gender
Gender was included in the survey to see whether there is a difference in
attitudes about the determinants between men and women. The distribution of
male and female respondents included in the survey is shown in the table
below.
Gender
Sex Frequency Percent
Male 24 53.33%
Female 21 46.67%
Others 0 0.00%
Male Female Others
Total 45 100.00%

Table 1 : Gender Distribution Figure 1 : Gender Distribution

Age
Age was added to see if there is a substantial link between the effects of price,
trust, and convenience on different age groups. Age is a demographic
characteristic that may also be used to clarify and elaborate on some of the
other questions used to identify groups among respondents. Instead of creating
multiple age categories from which to pick, respondents were asked to put
down their age. It was feasible to obtain the exact age and hence put up several
age groups based on the distribution.
Age Distribution
Years Frequency Percent
50 120.00%
<=20 5 11.11% 40 100.00%
21-25 20 44.44% 30 80.00%
60.00%
25-33 11 24.44% 20 40.00%
10 20.00%
34-41 7 15.56% 0 0.00%
42>= 2 4.44%
Total 45 100.00%

Table 2 : Age Distribution Figure 2 : Age Distribution

Area
The figure shows the proportion of respondent’s demographics and the
percentage of respondents who reside in rural or urban regions. The diagram
shows 76% of respondents are from urban areas and 24% are from rural areas.

Area Frequency Percent

Rural 11 24.44%
Urban 34 75.56%
Total 45 100.00%
Rural Urban

Table 3 : Area Distribution Figure 3 : Area Distribution

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 Occupation
This graph helps us to know the occupation of the respondents, which is to
know which segment of people are buying more products on the internet,
whether they are students, government employees, or professionals. The above
graph shows that 67% of students use the internet and buy online products.
Occupation Frequency Percent 30
Student 30 66.67%
60.00%
Professional 9 20.00% 20
Govt. Job 3 6.67% 40.00%
Self-Employed 2 4.44% 10
20.00%
Other 1 2.22%
Total 45 100.00% 0 0.00%

Table 4 : Occupation Distribution Figure 4 : Occupation Distribution

Internet Connection
This graph illustrates the proportion of respondents who have their own
internet connections. It indicates that 91.11% of respondents have their own
internet connections, while 8.89% do not.
Internet Frequency Total
Connection Yes
Yes 41 91.11%
No
No 4 8.89%
Total 45 100.00%

Table 5 : Internet Connection Figure 5: Internet Connection

Online Shopping
This graph displays the proportion of respondents who have done online
shopping. It reveals that 68.89% of respondents have done online shopping,
while 31.11% have not.
Online Frequency Total
Shopping
Yes
Yes 31 68.89% No
No 14 31.11%
Total 45 100.00%
Table 6 : Online Shopping Figure 6 : Online Shopping
Motivation
This graph shows us what motivates the people to buy internet.
Motivation Frequency Percent
Easy Payment 12 26.67%
No Hidden Cost 5 11.11%
Wide range of products 14 31.11%
No travel shop 14 31.11%
Total 45 100.00% Table 7 : Motivation

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Competitive Prices
This graphic indicates whether internet marketers offer competitive prices or
not, and the results reveal that most individuals believe online marketers offer
lower costs than physical retailers. According to the statistics, 64.44% of
individuals believe it offers competitive rates, while just 13.33% believe it
does not.
Competitive Frequency Percent Yes
Prices
Yes 29 64.44% No

No 10 22.22%
Cant
Can’t say 6 13.33% say
Total 45 100.00%

Table 8 : Competitive Prices Figure 7 : Competitive Prices

Products bought online
50 120.00%
45
40 100.00%
35 80.00%
30
25 60.00%
20
15 40.00%
10 20.00%
5
0 0.00%
Personal & Mobiles & Clothing Books Total
Healthcare Accessories
Frequency Percent

Figure 8 : Products bought online

Factor’s help to decide to shop online
This diagram shows us what affects people to buy products on internet and it
shows that 33.33% people came to know about shopping sites through search
engines.
20 40.00%
15 30.00%
10 20.00%
5 10.00%
0 0.00%
Tv advertising Online Special Offers Personal Search Engine
Advertising On Sites Recommedation

Frequency Percent

Figure 9 : Factor’s help to decide to shop online

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Payment Mode
The below figure shows the payment mode of the customers and we can say
that customers use cash on delivery and UPI as their payment mode.
14 30.00%
12 25.00%
10 20.00%
8
15.00%
6
4 10.00%
2 5.00%
0 0.00%
Cash on Google Paypal Internet Debit/ Credit UPI
delivery Wallet banking card

Frequency Total

Figure 10 : Mode of Payment

Frequency of Online Shopping

4%

8%
16%

70%

Once a month Twice a month Once a week Twice a week

Figure 11 : Frequency of Online Shopping

Attitudes & Beliefs
Prior Experience
This question was designed to determine the respondent's attitude towards
internet buying. The measured attitude was generated mostly from inquiries
concerning the respondent's previous experiences. This frequently influences
one's attitude towards carrying out an action, in this example, shopping online.
As a result, the question was developed to allow respondents to score their past
online buying experience.
Experience Frequency Percent
1(Negative) 1 2.22%
2 2 4.44%
3 12 26.67%
4 20 44.44%
5(Positive) 10 22.22%
Total 45 100.00%

Table 9 :- Prior Experience

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Overall, respondents had an good to very good past experience with internet
purchase. The proportion of respondents who have a highly positive attitude
towards online shopping is significant, and the distributed attitude decreases as
fewer respondents have a negative experience. Four on the scale is considered
neither a good nor a negative experience. The majority of respondents, 26.67%
in total, believe their past experience with online purchase to be neither
excellent nor poor. This question is closely connected to the next one, which
looks at respondents' future online shopping expectations.
Future expectations of online purchases
This question is part of an investigation on respondents' attitudes regarding
internet purchasing. Future expectations are heavily influenced by respondents'
previous experiences with online purchases; this will be examined more in the
results analysis.
Respondents had a very optimistic attitude about future internet purchases, as
they did in the past. The majority (51.11%) of respondents had good future
hopes for online purchasing. Without taking into account the indifferent
answers, a total 77.78% of respondents had optimistic expectations.
Experience Frequency Percent
1(Negative) 1 2.22%
2 2 4.44%
3 7 15.56%
4 12 26.67%
5(Positive) 23 51.11%
Total 45 100.00%
Table 10 : Future expectations of online purchases
Impact of Reference groups
The Influence of Reference Groups These questions were aimed to determine
which of the three Reference Groups, family, friends, and an online forum,
have an influence on the responder. Families as Reference Groups have not
been demonstrated to influence student internet purchasing. When shopping
online, the majority of 33.33% do not take into account any of their family
members' opinions or experiences.
Family Affect Frequency Percent
1(Negative) 7 15.56%
2 9 20.00%
3 15 33.33%
4 9 20.00%
5(Positive) 5 11.11%
Total 45 100.00%
Table 11 : Family Affect
Friends as Reference Groups have been proven to have a greater influence as
Reference Groups when respondents examine their online purchases. This can
be explained by the fact that friends are typically fellow students in the same

19
programme who have relevant information for the respondent. According to
the distribution of respondents, 33.33% of respondents consider the opinions
and experiences of their friends.

Friends Affect Frequency Percent

1(Negative) 5 11.11%
2 6 13.33%
3 8 17.78%
4 15 33.33%
5(Positive) 11 24.44%
Total 45 100.00%
Table 12 : Friends Affect
Online forums have little effect on the responses. The majority of respondents
(42.22%) do not value the opinions and experiences shared in online forums.
Online Forum Affect Frequency Percent
1(Negative) 4 8.89%
2 5 11.11%
3 19 42.22%
4 13 28.89%
5(Positive) 4 8.89%
Total 45 100.00%
Table 13 : Online Forums Affect
Time spent online
This question is intended to find out how much time the respondent spends
online. According to the literature, the respondent who spends more time
online has greater familiarity with the Internet, which is a cause to buy more
online. As a result, this question is directly tied to the respondents' buying
habits.

11%
34%
28%

27%

> 5 hrs 2 - 5 hrs 1 - 2 hrs < 1 hr

Figure 12 : Time Spent by customers

According to the distribution, the majority of respondents spend 30 minutes to
2 hours every day online. The two second largest categories are those who

20
spend less than 5 hours and those who spend more than 24 hours online each
day, with 34% and 27%, respectively. These findings will be utilised to
determine what distinguishes these responders and which of the characteristics
pricing trust and convenience has the most influence.
Price
When compared to in-store purchases, internet purchases save money. This is
the first aspect of the pricing factor, and it refers to respondents' attitudes
towards saving money when shopping online. We asked the responder two
questions to determine their attitude. The first question asked if the responder
agreed that shopping online saves money, and this type of inquiry investigates
the significance of this assertion. The responses to these two questions yielded
the following distribution of respondents' attitudes about this statement.
Saving Money Frequency Percent
1(Negative) 4 8.89%
2 1 2.22%
3 12 26.67%
4 15 33.33%
5(Positive) 13 28.89%
Total 45 100.00%
Table 14 : Saving Money
Table 14 shows whether respondents believe they save money when they buy
online rather than at a physical store. 28.89% of respondents said they saved
money and that it is crucial to save money while shopping online. The group is
neutral, with 26.67% of respondents saying they neither save nor do not save
money. The explanation for the high pricing might be that, despite the fact that
the Comparing prices, using several price comparison websites, before
purchasing online.
Comparing Price Frequency Percent
1(Negative) 1 2.22%
2 3 6.67%
3 11 24.44%
4 15 33.33%
5(Positive) 15 33.33%
Total 45 100.00%
Table 15 : Comparing Price
Table 15 demonstrates how respondents utilise price comparison websites like
eBay and Myntra. Almost everyone does this sort of comparison before
purchasing a, and a sizable fraction (31%) of respondents does it frequently.
This demonstrates an overall favourable attitude towards price comparison
over the Internet, despite the fact that the majority of 15 respondents (33.33%)
perceive price comparison over the Internet to be good. This is supported by
the fact that respondents may not compare costs yet believe it is important.
This translates into neither a favourable nor a negative attitude towards price

21
comparison while shopping online. The respondent may compare costs, but he
or she does not consider it significant.
Trust
It is secure to shopping online.
This question elicits the respondent's general attitude towards the first quality
indicated, which is the factor trust. This characteristic entails the respondent's
overall views regarding internet security. The responder was first asked if they
felt comfortable while buying online, and then how essential it is for them to
feel safe while shopping online.
Security Frequency Percent
1(Negative) 1 2.22%
2 8 17.78%
3 14 31.11%
4 12 26.67%
5(Positive) 10 22.22%
Total 45 100.00%
Table 16 : Security
The values in table 17 show whether respondents believe it is safe to make
online purchases and if it is crucial to feel secure when making online
purchases. The majority (31.11%) feels secure and believes it is vital to feel
neither secure nor unsafe when purchasing online. These biggest (26.67%),
with only two less responder, are slightly more positive than "neither". The
huge number might be due to individuals who do not feel secure while buying
online but believe it is vital to feel secure when they do. As a result, the
distribution of answers suggests that people are typically more favourable
about feeling secure when purchasing online.
Trust in the Internet retailer
This poll probed respondents' overall attitudes on trust in Internet retailers.
Two questions were posed: one questioned if the responder needed to trust the
Internet retailer in order to make a purchase from them, and the other asked
how crucial faith in the Internet retailer is before making a purchase from
them. The findings revealed the respondents' general attitude towards the third
and final characteristic of the element trust.
Trust Frequency Percent
1(Negative) 1 2.22%
2 4 8.89%
3 15 33.33%
4 18 40.00%
5(Positive) 7 15.56%
Total 45 100.00%
Table 17 : Trust

22
The majority feel compelled to trust the merchant while simultaneously
believing that it is critical to trust their tailor before making a purchase. Only
three responders scored in the negative range. This suggests that trust in the
Internet retailer is virtually always required for a consumer to make a purchase
from an Internet merchant.
Convenience
If online purchasing is perceived as requiring less effort than shopping in a
store, this question examines one of the attributes that comprise the factor
convenience and is included in the questionnaire to determine whether
respondents believe purchasing online requires less effort than shopping in a
store. This question is also part of the fact of convenience and the respondents'
general opinion towards the component convenience.
Convenience Frequency Percent
1(Negative) 0 0.00%
2 5 11.11%
3 8 17.78%
4 14 31.11%
5(Positive) 18 40.00%
Total 45 100.00%
Table 18 : Conveinence
The majority (40.00%) of respondents did not believe internet shopping to be
convenient, despite the fact that it required less effort. The remainder of the
respondents had a favourable opinion towards the characteristic less effort.
This is plainly demonstrated by the fact that one of the largest respondent
groups (31.11%) saw buying online as always requiring less effort than
shopping in store. As a result, respondents have a generally positive opinion
towards this feature.
Does internet shopping save time over in-store shopping?

Time Saving Frequency Percent

1(Negative) 1 2.22%
2 5 11.11%
3 10 22.22%
4 13 28.89%
5(Positive) 16 35.56%
Total 45 100.00%
Table 19 : Time Saving
The two large majority groups (35.56% and 28.89%) saw internet shopping as
either always saving time or as neither saving time nor being more time
demanding than in-store buying. The general distribution of respondents
demonstrated a favourable opinion towards the features that purchasing online
saves time over shopping in a store. This is a reasonable conclusion that can be
drawn from the fact that purchasing online from a home computer does not

23
need leaving the house, which may be considered time saving. However, some
website problems or the ability to use a computer from home might explain
why most respondents do not view buying online to be either time saving or
more time demanding than shopping in a store. This argument may also be
extended to respondents who scored low on the scale.
Primary factor
By considering all the attributes of the factors and looking at what factor each
respondent had the most positive attitude towards and labelling it as the
Primary Factor; I was able to identify the following distribution among the
respondents for the factor spruce, trust and convenience in table 20
Primary Factor Frequency Percent
Price 33 73.33%
Trust 7 15.56%
Convenience 5 11.11%
Total 45 100.00%

Table 20 : Primary Factor

24
4.1 Questionnaire
1. What is your Gender? *
o Male
o Female
o Transgender
2. Which category best describes your age? *
o <=20
o 21-25
o 25-33
o 34-41
o 42>=
3. Which area you belongs to? *
o Rural
o Urban
4. What is your occupation/ Employment status? *
o Student
o Professional
o Government Employee
o Self Employed
o Other:
5. Which category best describes your disposable income? *
o < 5000
o 5000-6999
o 7000-8999
o 9000-10999
o 11000-12999
o >= 13000
6. Do you have your own internet connection? *
o Yes
o No
7. Have you ever done online shopping *
o Yes
o No
8. What drives you to shop online? *
o Easy payment
o No hidden cost
o Wide range of products
o No travel to shop

25
9. Do you believe that online marketers provide reasonable prices? *
o Yes
o No
o Cant say
10. What things do you acquire on the internet? *
o Books
o Clothing
o Mobiles and Acessories
o Personal and Healthcare
11. Which of the following internet shops have you visited? *
o e-bay
o Amazon
o Flipkart
o letsbuy
o Myntra
o Other:
12. What elements influence your decision on which online shopping site to
use? *
o Search Engine
o Personal Recommendation
o Special Offers On Sites
o Online Advertising
o Tv advertising
13. How do you make online payments?*
o Debit/ credit card
o Internet banking
o UPI
o Paypal
o GoogleWallet
o Cash-on-Delivery
14. How often you do Online shopping? *
o once a month
o once a week
o Twice a month
o Twice a week
15. How has your past experience with online purchasing been? *

26
16. What are your future online purchasing expectations? *

17. How much influence do family have on internet purchases? *

18. How much influence do friends have on internet purchases? *

19. How much influence do internet forums have on online purchases? *

20. How much time do you spend each day online?

o < 1 hour
o 1-2 hours
o 2-5 hours
o >5 hours
21. What proportion of your internet time is spent shopping? *
o < 20%
o 20-40%
o 40-60%
o 60%
22. What is the purpose of using the Internet?

27
23. Do you save money when you buy things online? *

24. Do you use price comparison websites to compare prices? *

25. Do you feel safe making internet purchases? *

26. Do you have faith in the online retailer? *

27. Is buying online faster than buying in a store? *

28. Is it easier to buy things online than at a store? *

o 29. Do you believe that internet purchasing is superior to in-store

shopping? *
o Yes
o No
o Cant say

28
5 : Findings & Recommendation
When a buyer buys something online, he or she is influenced by a number of
things. Price, trust, and convenience have been recognised as the primary
contributing variables. The Price factor exists because prices on the Internet
are frequently lower than in traditional stores due to decreased costs.
Purchasing an online may provide significant benefits to the consumer in terms
of convenience and cost savings. It is also handy to shop from home on several
sites with varying assortments. When purchasing an item online, the consumer
must clearly reveal specific personal and financial information. These forms of
data include, for example, the entire name, delivery address, and payment card
information, making trust a key issue. It was also shown that students are the
most frequent internet purchasers, and they conduct thorough research before
purchasing any goods.
Students are an important element of the "Next Generation," and almost all
pupils utilise the Internet. More than three-quarters of the population owns a
computer. The great majority of people use an internet service provider. At
their separate schools of higher learning, everyone has access to computers
and networks. Evidence was obtained to support the claim that university-aged
students spend 8 to 12 hours per week online on average. They utilise their
computer skills for a variety of tasks when online, such as performing
research, conversing via e-mail, accessing news, seeing maps and directions,
downloading music, conducting job searches, and banking and shopping. The
anticipated rise in online customers and spending causes marketers to feel that
the opportunities for consumer value creation in the electronic commerce
industry are bigger than in the traditional marketplace. As the vitally important
worldwide university-aged student sector increases its online buying
behaviour, those marketing to these computer aware individuals must grasp the
variables that affect them at each stage of the buyer's selection process.
Marketers must recognise that the internet purchasing process begins long
before the actual transaction and continues long after the sale. To effectively
sell to university-aged students, either worldwide or locally, marketing strategy
must focus on the complete purchasing process. Some crucial things for e-
marketers to grasp about student purchasing behaviour are as follows: Students
spend a lot of time online and find items and services that interest them.
Students use the internet to find information about items and/or services that
they are interested in. Students analyse alternatives when shopping online and
arrive at a final set of options from which to purchase while shopping online. -
While online, students make final product and/or service purchasing
selections. Students create website loyalty and will make repeat purchases if
their whole purchasing experience is positive and they have faith in and trust
in the site. Students purchase more online than the overall population.
University-aged students are concerned about online security and supplying
credit card information, as well as sluggish delivery, being targeted for
repeat/future online purchases, out-of-stock products, difficulties returning
merchandise, and unhappiness with buy tracking abilities.

29
Annexure
List of Tables
Sr. No. Table Name Page No
1 Gender Distribution 15
2 Age Distribution 15
3 Area Distribution 15
4 Occupation 16
5 Internet Connection 16
6 Online Shopping 16
7 Motivation 17
8 Competitive prices 17
9 Prior Experience 18
10 Future Expectations 19
11 Family Affect 19
12 Friends Affect 20
13 Online Forums Affect 20
14 Saving Money 21
15 Comparing Price 21
16 Security 22
17 Trust 22
18 Convenience 23
19 Time Saving 23
20 Primary Factor 24
List of Figures
Sr. No. Figure Name Page No
1 Gender Distribution 15
2 Age Distribution 15
3 Area Distribution 15
4 Occupation 16
5 Internet Connection 16
6 Online Shopping 16
7 Competitive prices 17
8 Products bought online 17
9 Factor’s help to decide to shop online 17
10 Mode of Payment 18
11 Frequency of Online Shopping 18
12 Time spent by customers 20

30
Bibliography
➢ (1996). Beta Interactive Services.
➢ al, C. e. (2003).
➢ al, G. e. (2009).
➢ al, S. e. (2003).
➢ Armstrong, K. &. (2007).
➢ Bai, L. a. (2014).
➢ Constantinides. (2004).
➢ Jacki, J. &. (2001).
➢ Rupp, S. a. (2003).
➢ www.google.com
➢ www.wikipedia.com
➢ www.larsperner.com/teaching_materials.htm

31
Student’s Profile :
Name : Aditya Vasant Bagul
Program Name : MMS Finance
Qualification : Master’s of Commerce
Contact No. : 8976000474
Email Id : [email protected]

32
 ANNEXURE – E

M.M.S. – SEMESTER Ⅳ CLASS: 2021-2023

Project in the Area of specialization (Marketing/Finance/Systems/Operations/Personnel)

To,
The Director,
SIMSREE,
Mumbai – 20.
Dear Sir,
I wish to inform you that I have chosen the following focal theme for my project. The project will be
guided by Prof. Machhindra Katare. His / Her consent has also been obtained by me as below :

1. Name of Student: Aditya Bagul

2. Roll No.: M21137 3. University Exam Seat No: ___________________
4. Title and Topic of the project: Internet Shopping and buying behavior of Students
5. Area of Specialization: Finance
6. Name of the Guide: Prof. Machhindra Katare
7. Address of the Guide : Pravasi-17, Govt. Quarters, Worli, Mumbai
8. Tel. no. of the Guide: Office: 022-61510719 Residence: 9960783355
and e-mail Address: [email protected]
(please notify if any changes take place).
9. Name & Address of the organization. Where or for whom the project is being done if any
___________________________________________________________________________
Telephone No. of the Organization:______________________________________________
And E-mail ID:______________________________________________________________
Signature of the Student

To be filled by the Guide

I hereby agree to guide Mr. Aditya Bagul for the project entitled “Internet Shopping and buying
behavior of Students”.

Prof. Machhindra Katare

(Signature & Name of the Guide with Seal of the Office)
Date: 30.05.2023