PROJECT REPORT ON

FACTORS AFFECTING CONSUMER BEHAVIOR IN ONLINE APPAREL SHOPPING

By Sachin Kumar
ROLL No. 2000520700040

Batch of (2021-2023) under the guidance of

Dr. Harshmit kaur Saluja

In partial fulfillment of the requirement for the award of the

Degree of
Master of Business Administration
Submitted at

DEPARTMENT OF BUSINESS ADMINISTRATION

INSTITITUTE OF ENGINEERING AND TECHNOLOGY JANKIPURAM

LUCKNOW, UP-226021
 CERTIFICATE FROM INSTITUTION

This is to certify that Mr Sachin Kumar, 4th semester student of Master of

Business Administration, Institute of Engineering & Technology, Sitapur Road,
Lucknow has completed the project report entitled A STUDY FACTORS
AFFECTING CONSUMER BEHAVIOR IN ONLINE APPAREL SHOPPING partial
fulfilment of the requirements for the award of the Degree of Master of Business
Administration.

Date:

Place:

Dr. Durgawati Kushwaha

Co- Convener
Department of MBA
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that Ms. Sachin Kumar, 4th semester student of Master of Business

Administration, Institute of Engineering & Technology, Sitapur Road, Lucknow has

completed the project report entitled FACTORS AFFECTING CONSUMER BEHAVIOR

IN ONLINE APPAREL SHOPPING towards partial fulfillment of the requirement for

the award of the Degree of Master of Business Administration under my supervision.

Date:

Place:

Dr. Harshmit kaur Saluja

Assistant Professor
 STUDENT DECLARATION

I undersigned, hereby declare that the project titled FACTORS AFFECTING

CONSUMER BEHAVIOR IN ONLINE APPAREL SHOPPING submitted in partial

fulfillment for the award of Degree of Master of Business Administration is a

bonafide record of work done by me under the guidance of Dr. . Harshmit kaur

Saluja. This report has not previously formed the basis for the award of any

degree, diploma, or similar title of any University.

Place :

Date :

Sachin Kumar
2000520700040
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any work would be
incomplete unless we mention the name of the persons, who made it possible, whose
constant guidance and encouragement served as a beckon of light and crowned my
effort with success. I consider it a privilege to express through the pages of this
report, a few words of gratitude and respect to those who guided and inspired me in
the completion ofthis project. It is difficult to overstate my gratitude to my supervisor
Dr. . Harshmit kaur Saluja. This dissertation could not have taken shape without the
able Guidance and encouragement given by him. Throughout my dissertation writing
period, he provided sound advices, good teachings and lots of good ideas. I wish to
extend my sincere thanks for his whole hearted co-operation.
Last, but not the least, my grateful appreciation is also extended to my parents,
faculty members, for helping me out right throughout the project and being my
constant source of support and keeping me motivated right throughout, especially
when I felt a bit low in confidence and was not in a good frame of mind to complete
this project.

Sachin Kuamr
 PREFACE

The purpose of this project report is to examine the various factors that influence

consumer behavior in the context of online apparel shopping. Understanding

these factors is crucial for online retailers to tailor their strategies and offerings to

meet the needs and preferences of their target customers. By analyzing aspects

such as convenience, product assortment, price competitiveness, trust-building

measures, social influence, website usability, and the role of promotions and

compensation, this report aims to provide valuable insights into optimizing the

online shopping experience for consumers. Through comprehensive research and

analysis, this project report aims to contribute to the knowledge and

understanding of the dynamic consumer behavior landscape in the online apparel

shopping industry.

.
 EXECUTIVE SUMMARY

 INTRODUCTION OF RESEARCH
This executive summary provides an overview of the key findings and implications of a
study on the factors influencing consumer behavior in online apparel shopping. The
research aimed to identify the key factors that drive consumers' decision-making process
when purchasing clothing online and understand their impact on consumer behavior. By
understanding these factors, online retailers can tailor their strategies to meet customer
expectations and enhance their overall shopping experience. The study employed a
mixed-methods approach, combining qualitative interviews and quantitative surveys to
gather data from online apparel shoppers. The research focused on various factors such
as convenience, product assortment, price, trust, social influence, and website usability.
Key Findings Convenience: Convenience emerged as a significant factor influencing
online apparel shopping behavior. Consumers appreciate the 24/7 availability of online
stores, the ability to shop from anywhere, and the time-saving aspect of online shopping
compared to physical stores. Product Assortment: A wide range of apparel options was
found to be important to consumers. They appreciate the variety of styles, sizes, and
brands available online, allowing them to find unique or niche items that may not be
easily accessible in physical stores. Price: Competitive pricing was identified as a critical
factor affecting online apparel shopping behavior. Consumers actively compare prices
across different online retailers and seek out discounts, promotions, and free shipping
options. Trust: Building trust with online shoppers is crucial. Consumers rely on factors
such as positive reviews, ratings, and testimonials from other customers, as well as
secure payment options and reliable return policies, to establish trust and confidence in
the online retailer. Social Influence: Consumer behavior in online apparel shopping is
influenced by social factors, including recommendations from friends, family, and
influencers, as well as the engagement with online communities and social media
platforms. Positive social interactions and recommendations significantly impact
purchasing decisions. Website Usability: Consumers value websites that are user-
friendly, intuitive, and provide detailed product information, high-quality images, and
accurate sizing guides. A seamless and efficient shopping experience contributes to
consumer satisfaction and repeat purchases. Implications: Online retailers should
prioritize convenience by ensuring their websites are accessible and responsive on
different devices, offering flexible payment and delivery options, and providing efficient
customer service.

Providing a wide range of apparel options is crucial for attracting and retaining
customers. Online retailers should continuously update and diversify their product
assortment to cater to different consumer preferences. Competitively pricing products
and offering discounts and promotions can incentivize consumers to choose online
apparel shopping over physical stores. Regularly evaluating and adjusting pricing
strategies is essential to remain competitive. Building trust is fundamental for successful
online apparel shopping. Online retailers should focus on providing secure payment
options, reliable customer support, and transparent return policies to instill trust and
confidence in consumers. Leveraging social influence through influencer marketing,
user-generated content, and social media engagement can positively impact consumer
behavior and increase brand awareness and loyalty. User-friendly website design,
intuitive navigation, and comprehensive product information are critical for enhancing
the online shopping experience. Online retailers should invest in website optimization
and regularly gather feedback from customers to improve usability. By understanding
and addressing these factors, online retailers can improve customer satisfaction, drive
repeat purchases, and stay competitive in the ever-evolving landscape of online apparel
shopping. The insights from this study contribute to a better understanding of consumer
behavior in the context of online apparel shopping and offer practical implications for
online retailers seeking to optimize their strategies and offerings.
 TABLE OF CONTENT

S. No. Topic Page No.

Student Declaration ii

Certificate from Institute iii

Certificate from Faculty Guide iv

Acknowledgement v

Executive Summary vi

1. Introduction 10

2. Major Online Shopping Companies 20

3. Objective & Need of the study 32

4. Review Of Literature 34

5. Research Methodology 48

6. Analysis of Data 50

7. Findings And Recommendations 56

8. Conclusion 61

9. References 63

10. Annexure 65
 INTRODUCTION

Consumers in India are increasingly drawn to arranged and online retail. The widely
network of brand different retailers has fueled organised retail. In the next few years, the
number of brands will keep going up. power of brands in stores and on high-end
property investment will exacerbate these customer preferences. Some of these stores
are called "Large Format Stores," like Lifestyle, Shoppers Stop and Reliance Trends. are
leading retail locations across the country, offering merchandise and store experiences
that inspire many people to embrace the structured physical experience.

Surprisingly, customers of developing cities have benefited from this transition, as

investor-backed value formats such as VMart, V-2 , and 1 IndiaMart have brought high
class fashion to India's young generation. Due to the availability of numerous major
Indian and international brands, a sizable segment of clients has also embraced online
channels. Certain global companies are only available online As an impact of their
partnerships with online channels, providing another reason for customers to switch to
Online shopping channels.

Consumers are basically attracted to cloths through web stores, where they are able to
buy both established brands and retail private brands. Private brands labels have
increased fashion accessibility for the general public, and these price reductions have
attracted additional customers to platforms such as Myntra, Jabong, Ajio, and Limeroad.
These channels appeal to customers for a variety of reasons, including convenience and
variety. Another thing that has been very appealing to people is how online retailers
advertise their events. efforts, that offer clients eye catching discounts in festivals and
another events.

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Market Size
Online Fashion Retail business capital in our nation is estimated to increase by USD
22.97 billion 2021 to 2025, and the market growth will accelerate at a CAGR of
18.83%. The growing acceptability of digital payment systems, as well as the rise in
internet and smartphone usage, are some of the significant market factors. However,
concerns such as the difficulties of sustaining online client loyalty will pose a hurdle to
market expansion.

While the COVID-19 has impacted as a negative economic on the country, India's online
fashion market continues to grow in terms of volume and value. Unicommerce, an
ecommerce-based supply chain technology platform, confirmed in a study that the
virtual fashion business continues to increase.in sequence of quantity increase of 51%
and GMV increases of 46% in Financial year 21, in comparison to 2020.

"With the highest order volume, the fashion area is one of the most important
contributors to India's ecommerce economy." Websites are driving fashion growth,
according to the report, and the expanding use of D2C among fashion firms has resulted
in developing a unbreakable connection with customers, resulting to increased growth.

Unicommerce revealed that brand websites reported a 66 percent increase in order

volume and a 77 percent increase in gross merchandise value (GMV) in financial year
21, in comparison to the previous FY. In comparison to webstores, business resulted a
45% increase in order volume and a 33 percent increase in gross merchandise value
(GMV) for FY-2021. The expansion of Tier-II to Tier-III areas has been a positive
development. According to the Unicommerce survey, volume in Tier-II regions
increased by 118 percent, while volume in Tier-III and beyond options increased by
192%. It is most likely due to the cloth and wearable industry's history of early
technology adoption, which enabled it to stay away of the movement. As an impact,
online business is gaining traction. According to the survey, organisations are now
fulfilling 20-25% of their maximum purchases in-store, demonstrating that
omnichannel adoption has risen across the board.

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Women's wear has a majority stack of the online fashion business, with around half
share of market share in financial year 21, and has resulted a 30% increase in order
volume over the previous financial year.

Developments
Fashion is not just a massive industry; it is the king of all industries. With a worldwide
trade price of around $769.5 bn in 21, outfit, wearable, and footwears are the nation's
biggest online sector. In upcoming 5 years, ecommerce clothing business will grow at
an annual growth rate ( cagr of 7.18%, valuing the biz at +$1.0 trillion.

This expansion is being fueled by two factors: permeation rate increases (characterised
as "the equity of active needing to pay customers") and ecommerce's start sharing of the
fashion retail market. As according estimates, digital commerce penetration will increase
to 61% by 24, from 47 in 22. Appropriate for 3 significant fashion categories:

 Apparel: 12.71%
 Footwear: 11.61%
 Wearable: 8.49%

This shows that a total market stack increases from 21.13% in 2020 changes to 23.56%
in 2023.

Global Expansion Continues East, But ARPU (Average revenue per unit) Rules the
West. Geographically, uses moving rapidly inclined to China; its $274.3 billion in 20
sales stating the upcoming 4 countries adding toghether:

1. China: $274.31B
2. United States: $136.51B
3. United Kingdom : $32.51B
4. Japan : $23.91B
5. Germany: $22.46B

Indian ecommerce fashion industry grows 51% in financial year 21.

Amidst the pandemic, India's online fashion sector continued to expand at a 51 percent

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clip on various brand websites, breaking previous online shopping records. According to
Unicommerce's 'Fashion online shopping Report,' Tier 3 towns and others saw the

greatest increase in order volume growth of 192%, while kid's wear saw the greatest
increase in order volume increase of more than 200% online.
The growing use of D2C (direct-to-consumer) marketing by fashion brands has aided
them in developing a more personal relationship with their customers, resulting in
increased growth."
The fashion segment, with the highest order volume, is a significant contributor to
India's online shopping economy."
Online shopping has radically altered the international business landscape over the last
decade, most lately bolstered by the near-complete rise in online shoppers during the
Covid-19 epidemic. Despite the reality that many retail companies, even well brands like
Zara, saw income decrease, digitalisation and changes in customer ensured a substantial
market rebound. Despite the pandemic's economic impact, a Unicommerce report found
that India's online fashion company having grown by 45 percent from April 1, 2020 to
March 31, 2021.

Government initiatives

Numerous initiatives undertaken by the BJP-led government of Narendra Modi are

speeding up the growth of India's online shopping sector. While Indian online shopping
is accelerating its growth to become the world's fastest increasing business industry,
applications such

Increased internet penetration and quality, advances in payments and shopping on

mobile platforms, lerading in consumer behaviour and buying habits, the accessibility of
goods at affordable prices on online shopping platforms all resulted in the enhancement
of Indian ecommerce. According to CARE Ratings research, "online shopping is
undoubtedly driving the most significant transformation in the retail industry, and this
trend continues in the coming years."
For all firms operating as online shopping marketplaces, the government has changed its

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FDI (Foreign Direct Investment) policy in online shopping. The policy revisions, which
took effect on February 1, 2019, clarify and enhance the regulatory regime governing

FDI in India's online business marketplace businesses, while also levelling the playing
field for online and offline sellers. Traditional merchants have accused online shopping
firms of market distortion through predatory pricing and unethical business practises.
The stricter regulations are expected to have a major impact on India's online industry.

Electronics & apparel account for the lion's share of online shopping sales in India,
taking total of more than 40% of all sales. Lifestyle and apparel are another popular
product category, accounting for more than a quarter of total sales. According to the
survey, home and living sales comprise 5%, food and daily needs sales comprise 2-3%,
and other products sales comprise 19%-31%. Amazon, founded by Jeff Bezos, and
Walmart, which recently acquired Flipkart, currently dominate India's online shopping
sector.

Michael Porter’s Analysis of the Indian Online shopping Industry

Five forces A model is a technique for analysing business culture and deciding the
prospective profit of the business strategy. Knowledge of this will be advancement
because it empowers business group to just be cautious in response to different factors
affecting profitability. Power of buyers, power of suppliers, the threat of new entry, the
availability of new, and the threat of rivals are the five forces. Often, the dangers posed
by competing companies are taken account. The very next study will examine these
components in the context of the online shopping market sector.

Shopper Power Factor (Strong Force) :

The e - commerce market had exploded in following years. Recognizable influences

have become the expansion of global economics and the advancement of technology.
Two of these issues have an effect in increase of the online market industry. The online
industry has seen the emergence of numerous small and large brands. As an impact,

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clients pay relatively little to transfer providers. In current society, consumers are

concerned. They have access to the highest whereabouts about the services and products
offered by online retailers. People who shop on online shopping websites can find things
easier now because of this, alternative online retail services is harmed. Additionally,
several stable businesses have entered the online web space. In addition of real markets,
additional pressure has been created. Wal-foray Mart's into ecommerce in order to
compete with Amazon is an example of this. Because of this, buyers have a lot of power
when they negotiate. in the ecommerce industry. Brand image, brand quality, and cost
are all factors that can affect the bargaining power of a brand.

Supplier Power (Moderate Force):

Online shopping online industry, stable businesses have different advantage, while
others has to struggle.' bargaining option is very limited. Only a few suppliers, most
notably Amazon, are ready to address the requirements of internet purchases businesses.
Those who succeed in this endeavour will cement their position as a dominant power in
the online shopping sector. For instance, changes in the price levels of devices from a
major suppliers could have a direct impact on the retail operating costs of an online
shopping company. On the other hand, due to their lack of control over the sale of their
products to busines, confined forward assimilation limits providers' actual influence. As
an impacgt, many online markets are be careful to your supplier. . Frequently, shops
create a rules of behavior that deals with issues such as quality, labour, wages, and
sustainable development. Regarding the industry's growth, suppliers face fewer chances
and are therefore constrained by brand-imposed restrictions. Due to their small size, the
majority of manufacturers and distributors, on the other hand, have a negligible impact
on online shopping businesses.

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Threat of New Entrants (Moderate Force):

In the online shopping market, brands have the upper hand, while suppliers have limited
bargaining leverage. There are only a handful of vendors who can meet the needs
requirements of online shopping companies, most notably Amazon. Those who are
successful in doing so will reposition themselves as a dominant in the online industry. i.e
changes in the cost of equipment with a few large suppliers could have a direct impact
on the retail running costs of an online shopping company. On the other hand, due to
their lack of control over the sale of their products to businessesn real effect on online
shopping labels is limited. It impacted, numerous web stores must takes precaution when
establishing venders relationships. Frequently, labels will code of ethics should be made.
solves problems such as product, labor, wage disparities, occurrence. Regardless the
increasing number of players in industry, venderss is constrained by brand-imposed
restrictions. However, due to their relative insignificance, the majority of manufacturers
and venderss have a limited impact on online shopping enterprises.

Threat From Substitutes (Strong Force) :

Consumers may easily change companies because switching costs are low. For instance,
clients can simply purchase from Walmart or other retail companies rather than Amazo.
The widespread availabiity of alternative solutions and low product cost amplify the
negative impact of substitutes on the business.

Threat From Competitors/ Rivals (Strong Force):

Retail online shopping businesses are well-known for their aggressiveness and fierce
competition. There is a great deal of competition in the market as an impact of the large
number of contenders. The ecommerce sector saw an increase in the number of domestic
and international labels, resulting in growing competition. This is shown in Amazon's
ongoing battle with Walmart, which is rapidly expanding its online shopping presence.
Substitutes are a regular threat due to their widespread availability. Walmart and other

16
cinder block retailers are attempting to emulate the online retail capabilities of Amazon.
Additionally, the switching cost makes it simple for customers to switch from one
retailer to another. As an impact, new firms and adversaries pose a serious threat.
Finally, in order to sustain my company's long-term competence, strategic focus must be
placed on competitive rivalry within the online shopping retail market. To of
commercial barriers in the retail market, retail stores must consider the significant
bargaining power of purchasers. Due to the vast number and threat of competing
companies, it is critical to emphasize ongoing popularity strategies in the online market.

PESTLE Analysis of “The Online Fashion Industry”

Fashion is an artistic expression that includes makeup, garments, footwear, wearable,

hairdos, and way of life. Fashion is transient, typically lasting as little as a season.
Fashion, as regarding Pierre Bourdieu, is "something distinctive or contemporary." It is
ever-changing. On either side, style has a longer life span and can be worn throughout
the year.. In the nearly nineteenth century, the cloths industry appeared out. However, it
has matured into a global industry in which makers generate garments in one nation,
manufacturers fabricate them, and labels sell them in a different of markets worldwide.
In summary, fashion industry is divided into the following categories: Cloths, fur, shoe
materials, fibres, and cotton are all examples of raw materials.

1. Manufacturing, designing, or the contracting

2. Trader shop sales
3. TV advertising, and promotion

Each component of the above said level is unique, but they are all linked. The objective
is to provide end consumers with superior products that meet their needs, whether that is
accomplished through the purchasing of high-quality raw materials, competent designers
and manufacturers, finished product sales, or advertising.

Now is the time to discuss how political, financial, social, technical, legal, and
environmental factors influence the fashion industry, and how new trends emerge and

17
the sector evolves over time. Here's a look at fashion's pestle analysis.:

Political Factors:
If the cost of imported goods increases As an impact of increased taxes or tariffs at the
border. Typically, the government wants civilians to purchase clothing from individual
designers and small businusses in these instances. Rather than offshoring clothing and
other goods, some organisations, including such PETA, have made a point of refusing to
do trading with business owners that use animal skin. Whether a businesses . for
example or a global corporation, the objective is the same: to prevent animal torture.

Economic Factors:

Economically speaking, we see the world throughout two extreme values: elevated
nation‘s people can buy elegant apparel and shoes, baltic states. Food and liquid survival
are even more critical in low-income countries to high levels of unemployment, where
fashion is an unaffordable luxury. Middle class individuals with captioned financial
resources prefer to have dress code or informal clothing and jewelers. As, the cloths
industry is weather dependent and always changing. If you regularly acquire such
fashion items, you would have to pay for additional storage space. As an impact, these
rental clothing facilities are a lot cheaper than regular ones, it suit your requirements
without charging more.

Social Factors:

To get noticeable, musicians, vocalists, creative types look and dress accordingly. The
purpose of this attire just distinguishes from the throng of people such that fans and the
media personnel can easily identify you. After capturing the public notices you, you're
centre of attraction. Later on, garments and wearable become tied to a specific figure as
well as brand emblem. Consider Michael Jackson's LED gloves, depressing light or
shredded celebrity pants, or a ornament. For the musicians and artists who wear them,
thry did not become special. They however, have a meaningful impact on crowd, as they
can be identified by those product lines. Fashion often does not necessitate you to look

18
unique; it can be abstinent and light depending on the circumstances. Consider the
following scenario: a person attends a question and answer session and dresses
appropriately. Ordinary staff members dress in a semi-formal or casual manner, with
comfy shoes; this is also referred to as casual light fashion. However, the majority of
people are dismissive of it or hesitant to start embracing it as a pattern.

Technological Factors:

Certain consumers prefer online shopping because it enables them to rapidly compare
products from multiple retailers. They'd add them to their cart as well as place their
order if any of them piqued their interest. They avoid shopping malls and stores as they
consider travel and wandering to be strenuous exercises. The Internet has made it easier
than ever to establish an online store. Sophia Duo started collecting vintage clothing in
the last few years before opening an online store and profitably selling her collection on
eBay. In 2018, investments had a combined wealth of much more than $300 million.

We've seen runway television shows in which experts and designers decide the
implications of the fashion industry while showcasing one‗s designs and goods. There
are biz shows where early buyers and young, bright fashion companies discuss their
future prospects. Technology is helpful in terms of aiding designers and clients in
achieving their goals. Designers are constantly inventing new ways to earn money.

Legal Factors:

Whenever it indicates to adhering to the law, the apparel sector is no exclusion. It must
follow the similar rules regarding excise taxes, rise in price, and labor regulations, and
exports and imports restrictions as the U.S. As a organisation or a fashion company
outsources collaborate to other Asian nations to seek of cheaper labor, the company's
logo and the nation's laws are altered. International outsourcing robs the local market
and individuals of employment opportunities and investment. As an impact, some

19
consumers refuse to purchase products manufactured by companies that outsource
manufacturing to other countries.

Environmental Factors:

The fashion industry's product lines have a variety of negative environmental

consequences. To begin, consider manufacturing, where companies emit chemical fumes
while chemically treating cloth to create jeans. Trucks and motorcars emit vapours and
aprons into the atmosphere throughout the shipment process, resulting in air pollution..
If the shipping is made by sea, oil will leak into the water. After being used by
customers, it degrades into garbage. Recent research indicates that the average American
discards nearly 80 pounds of clothing every year. Waste has increased by 60% in the last
15 years. When the totals are added up on a global scale, it becomes clear how much
cloth has been wasted. Due to the fact that each season brings new clothes as well as
new style, the fashion business contributes significantly to clothing waste. While some
sectors have begun recycling used clothing, the practise is still in its infancy. This is a
step that every industry and nation should take to assist in environmental cleanup.

MAJOR ONLINE SHOPPING COMPANIES

AMAZON

Introduction

Amazon is the retail giant, and its achievement has prompted other brick-and-mortar
businesses to follow consequences. Due to its presence allover and aggressive pricing
strategies, it is commonly termed as Wal-online Mart's counterpart. Amazon can seize
numerous emerging market opportunities and make sure that its supply process chain of
interconnected warehouses gives significant share for both the company and its

20
stakeholders. Additionally, Amazon's business map of operating at near-zero margins
must be reconsidered, and that states it has not earned a profit in last five years suggests
that is still room for development.

SWOT Analysis

Strengths

 Cost ownership, distinctions, and focus are three of the three main strategic areas
that Amazon has focused on in order to be the world's biggest online trader and
be the best at what it does. This strategy has helped the company, and its
shareholders have also been helped. Online shopping and That too (IT) are two
of the ways Amazon has a big advantage over its competitors. This allows the
company to keep up with its rivals and stay ahead of them. One of the most
important things about Amazon is that it's always at the top of people's minds,
which has helped it get into new markets that other online retailers couldn't
reach.
 Amazon has an edge over its competitors due to its superior logistics distribution
capabilities.

Weaknesses

 This is how it has been "going to spread itself somewhat thin" in the last few
days: As a result of its huge strategy, it has been able to shift its focus aside from
the main thing that online readers do best, which is to buy things online, and
toward new things. However, Amazon needs to be aware that as it moves away
from the core competency, its strategic advantage could be wiped out. Because
Amazon gives its customers free shipping, it may lose money and may not be
able to get the best possible outcome. As a result of this plan.
 Amazon is just mainly an online trader, its exclusive concentrate on internet
buying may "obstruct" its growth ambitions, particularly in emerging business.

21
  According to traders and business experts, the company's primary flaws is its
reliance on near-zero profitability business models, which has severely harmed
its growth. Despite its enormous volume and revenue, It has been not able to
generate a growth.

Opportunities

 It has a significant opportunity to gain profit through the launch of its online
payment, given customer concerns about web shopping in terms of data security
among their top issues. Additionally, it would grow the profit margins of the
business by convincing it to realize the rewards of needing its own payment
system.
 Amazon might also result in growth it wants to sell by its own label, rather than
keep running as a world market for third-party goods all over the world, like it
does now. In other words, instead of trying to sell and stocking products made by
other people, it can build its own brand.
 •Amazon could expand its business selection by supplying more goods than it
does now. This means that corporate in a stronger and so more secure position
because more money can be turned into more money, which would provide the
company with a significant compeitive advantage in the hyper-competitive
online retail segment.

Threats

 When people start to worry about buying things online, it could be bad for
Amazon's business. As a result of losing your identity and being hacked, which
gives your personal information to other people? As a result, Amazon needs to
act quickly to make sure customers are satisfied with its site and defend their
online privacy and safety.
 Content providers and other businesses in the retail sector have filed suit because
of its high prices. Amazon has gotten into a lot of trouble because it is very strict

22
 about how much money it spends. Competitors are angry that Amazon is taking
their business.
 On the conclusions, Amazon has a large number of competitors from small
online sellers who can move faster and more quickly than Amazon. This appears
to mean that while the company needs to focus on its strategic vision, it can't
forget about its local farmers market at all. 

FLIPKART

Introduction

Flipkart is an Indian company that sells things online. It is based in Bengaluru, India,
Asia. A privately owned company was formed in Singapore when it began. Initially, the
company focused on selling books on amazon. It then moved on to other types of
products like consumer devices, home furnishings, groceries, and fashion clothes.

The service's main rivals are Amazon's Indian subsidiary and Snapdeal, a well-known
company in the United States. If you want to buy something on the internet, Flipkart had
a 39.5 percent market share in March 2017. Flipkart is the leader in the clothing market,
thanks to the acquisition of Myntra. It has been compared to Amazon in the sale of
gadgets and phones. There is also a mobile payment service called PhonePe that Flipkart
owns. This service is based on the National Payment Interaction (UPI).

SWOT Analysis

Strengths

 Promoters: The founders of Flipkart, Sachin and Binny Bansal, are ex-Amazon
employees. Their experience in online shopping has aided the pioneers in
strategizing and distinguishes their especially in a professional competitive
industry.

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  Acquisitions: The company has expanded into the online shopping industry
through purchases such as Letsbuy.co, adding more information, weread.com,
Mine360, and the most recent acquisition of Myntra.

 Brand recall is high: Flipkart has become known internet shopping company in
India thanks to tv ads, online labels, and a strong social media following. As a
result, the company's brand recall went up a lot thanks to things like "Big Billion
Day."

 Own payment gateway and logistics arm: E-kart, it‘s delivery arm, and Payzippy,
a payment service, have helped the organisation keep costs under control. In a
result, the advantages are moved on to the consumers.

 Exclusive & wide product range: Exclusive to launch certain items, such as
Google Pixels and Google Buds, as well as other personal designer sectors in the
fashion area, have allowed the corporation differentiate and generalise its
offering.

 Brand portfolio: Flipkart has amassed a substantial brand portfolio. This is

supported by Flipkart's SWOT analysis. When it comes to introducing new
product lines, this company's brand portfolio might be incredibly valuable.

Weaknesses

 Limited Distribution: Although Flipkart's channel reach is restricted, the logistics

department has kept expenses low. Because of the company's limited reach, this
is a vulnerability. Outsourcing allows global behemoths, Amazon and competitor
eBay to transport their goods to any section of the country. Flipkart retails, on the
other side, is having trouble with this.
 Cost of Acquisitio: Flipkart's purchase price is high due to intense market
competition and low retaining customers, as it recruits a huge amount of
customers through internet ads. The ordinary gaining a new consumer, according
to Flipkart, is Rs. 400.

24
  Buyers have the power: Due to the vast number of participants in this market,
purchasers have a wide range of possibilities from which to choose. Customers
save money on switching charges by transferring from one online store to
another with ease. Multiple online retail websites provide the same products.
Because there is little product differentiation, the competition is purely based on
price.

Opportunities

 Change in Interest: There are numerous potential in this market as more

customers become familiar with the growth of online commerce and the
popularity of the internet in India.
 Supply Chain System: They can compete with the other companies and manage
sales loss owing to product availability due to supply shortages by optimising
their supply chain.
 Global Markets: Flipkart, like Amazon, may gradually expand its operations
outside of India and do business in other nations, which will assist to increase
revenue.
 Consumer Behaviour: Flipkart will be able to take advantage of new customer
behaviour trends. This is a fantastic opportunity for the organisation to diversify
into new product categories and increase revenue sources.

Threats

 Intense competition: Big player‘s eBay Amazon, as well as local players like
Snapdeal, , and Tolexo, are constantly vying for market share.
 Government regulations: The growth of India's online shopping industry has
been impeded by government prohibitions on problems foreign direct investment
(FDI) in multi-brand retail, for example.

25
MYNTRA

Introduction
Myntra is one shop for clothing and lifestyle products. With the widest picking of trades
and products on its website, Myntra, India's biggest online shopping platform for
lifestyle and fashion products, strives to provide a hardship and enjoyable buying
experience to customers across the country.

SWOT Analysis

Strengths

 Its strength have increased As an impact of the merger with Flipkart.

 Maintaining independence.
 Provide more than 1.5 lakh items from more than 1000 labels.
 It is able to serve more than 90,000 locations due to an efficient supply chain and
performance is achieved.
 "End of Season Sale" — a big success, with goods worth Rs.90 crore sold.
 Excellent marketing and advertising efforts on t.v, the internet, and in print.

Weaknesses

 Intense competition means limited market share growth.

Opportunities

 Selling private labels allows them to boost their profit margins.

 Bollywood celebrities can improve their stylish appeal by collaborating with star
designers.
 Bridal collection to leverage India's large wedding market
 Expansion into international markets can help a company grow.

Threats
 Global competitors such as Amazon are slowly moving inroads.
 The cloth industry is growing in rapidly, resulting in more contenders.
26
  Adverse government laws and changes in the economy
 Its app-only business strategy adds to its specialised proposition, and removing
the website may prevent it from capturing the increasing online area.

AJIO

Introduction

AJIO, Reliance Retail's online sales venture, is a lifestyle and fashion brand that serves
as the true fashion location for carefully curated, on-trend bits at the best prices
available.

Ajio is constantly on the lookout for new, contemporary, and available ways to bring a
fresh, contemporary, and accessible perspective to individual style. Ajio's states and
actions all things to one fundamental truth: a certain inclusion and acknowledgement are
the only ways to improve the human condition in our society. And a little extra
fashionable along the way, whether that's through canister collection that simplify the
process of putting together great looks, bringing together newly international labels in
one location, reviving India's rich textile legacy through the Independent music
collection, or producing excellent style more accessible through in-house brand AJIO
Own.

By combining JIO's superior broadband network with Reliance Retail's extreme physical
retail business, the company is trying to establish a differentiated online shopping
prototype for India through AJIO. This will entail the complete connection of online and
offline business models, as well as improved customer experience, delivery companies,
and billing ecosystem innovation.

27
SWOT Analysis
Strengths
 Hypermarket with 95000 markets for tailoring, shoes, and watches, among other
things.
 It is the owner of a number of private label labels.
 It has a well-developed distribution network.
 The parent company's strong support

Weaknesses

 There are numerous products available, but due to insufficient back-end

architectural style, there are fewer SKUs. (Stock keeping Unit).
 Inventory management issues at some locations are a concern.

Opportunities

 Using the brand name to enter the Reliance saloon or other such areas.
 Significant potential for cost savings in cities by the use of a robust supply
network.

Threats

 Strong competition from websites such as myntra.com, nykaafashion.com,

bewakoof.com, and nike.com, among others.
 The operating costs are excessive.
 In terms of supplying and backward integration, Walmart is by far the most
significant competitor.

SNAPDEAL
Introduction

Snapdeal is a company that sells things online. It is based in New Delhi. Rohit Bansal
and Kunal Bahl started the company in February 2010. They both went to the Wharton
School and the Indian Institute of Technology, Delhi, where they studied business.
Snapdeal's website has a wide range of high-quality, low-priced goods. Snapdeal's goal

28
is to bring the joy of shopping to people in Bharat through reliable, cost-effective
shopping. Snapdeal has made it easier for value-conscious customers to buy things by
highlighting the most important products that meet their needs and are long-lasting.
They do this by giving them a personalised, multilingual interface and cutting-edge new
technology.

Snapdeal's vendors work in a well-structured way that allows them to deliver the best
products at the best prices because of the rules and regulations that govern superior
service standards. Snapdeal's logistics networks, which are run by third-party logistics,
cover more than 96% of India's pin codes, which means that orders can be delivered to
more than 2500 towns and cities. The network is growing because most of the people
who are value-conscious, center-oriented, and price-conscious live outside of the big
cities.

Snapdeal wants to be India's best omni-channel value lifestyle retailer. To build a

complete ecosystem around value commerce, they are looking forward to following.
This will allow them to serve 'Bharat' customers as they move between buying things at
a store and buying things online.

SWOT Analysis

Strengths

 Constant new ideas and a brand image.

 A nationwide network of retailers.
 Excellent service is provided through simple steps.
 A diverse choice of transactions and offers to pick from.
 Numerous honours and accolades, such as top startups, ecommerce, and so on.

Weaknesses

 Not all cities have the same services.

 Only relying on the internet

29
Opportunities

 The markets that aren't connected to the internet.

 Customers who are hesitant to shop online can be encouraged to do so.
 Collaborations with larger corporations to offer in bulk.

Threats

 It is possible to be a victim of a scam.

 Possibility of becoming involved in the sale of illicit entities.
 Competitive internet shopping platforms that are only becoming started.

30
 OBJECTIVES OF THE STUDY

We are currently living in the most opportune time period in human history. Online
shopping has transformed the retail industry, making it easier than ever to shop for
clothing. With a wide range of applications as well as websites to choose from, you
could indeed shop for clothing from the convenience of your own home in a matter of
clicks. The Internet has altered the way we shop. Due to the increased benefits, many
people nowadays prefer buying goods online rather than in-store. When shopping online,
you have a large selection of items from which to choose. The internet is changing the
way people buy for and obtain goods and services at a breakneck pace, and it has grown
into a global phenomenon. Numerous businesses have begun to leverage the internet to
cut marketing costs and thus lower the price of its products and assistance, and to
interact and disseminate, sell a product, solicit feedback, and conduct consumer
satisfaction surveys. Customers use the internet to compare prices, product attributes,
and after-sales service that they will receive from a particular retailer. Numerous
specialists believe online commerce will thrive in the future. The purpose of this study is
to ascertain whether customers who are using the web and are familiar with online
buying have an interest in online clothing shopping and what factors influence their
purchasing decisions. The goal is to understand the behavior of the customers on the
web and to know what factors affect their purchasing decision.

Below are the main objectives of this study:

1. To find out the frequency of use of Ecommerce websites for buying clothes
online.
2. To find out the most preferred website for shopping clothes online.
3. To find the problems faced by customers while buying clothes online.
4. To know the biggest challenge consumers face while shopping clothes online.
5. To find out reason which prompts consumers to shop clothes online.
6. To know the preferred timing of consumers to shop clothes online.

31
 NEED OF THE STUDY

At any given time, there are huge numbers of people online, and each one of people
represents an important consumer for an internet sales organization. Due to the rapid
evolution of the technology that surrounds the Internet, a business that wishes to sell
products via its website must constantly seek a competitive edge. Due to the large
number of potential customers, it is critical to understand their wants and needs. The
critical nature of comprehending the factors that influence an user's decision to purchase
garments online cannot be overstated. Due to the fact that the Internet is indeed a
different medium, consumers have developed new expectations. The rapid growth is
attributed to increased adoption of broadband technology in conjunction with a change
in consumer behaviour. The Internet is viewed as a form of mass that provides
customers with purchasing capabilities unmatched by any channel. Certain features, like
the ability to browse as well as purchase items at any time, visualise their desires
through products, and engage in product debates with other customers, make the process
easier for the user than conventional stores. Blumberg and Ward (2006) assert that the
primary reason consumers shop online at the moment is convenience. Additionally, they
admit that the primary driver of online shopping used be price, but has since shifted to
comfort. Previously, only food, clothing, and sanctuary were considered basic needs;
however, the "internet" has indeed been added to a list. As an impact of the telecoms
revolution, the internet has changed the way people who shop for and buy goods and
services. In order to stay competitive, businesses both inside and outside the United
States and around the world are using the Internet to cut costs and lower prices.
Businesses also use Communication to connect with customers, share information, sell
products, get feedback, and do customer satisfaction surveys. To buy goods online,
customers use the Internet to look at prices, features of the goods they want, and ways to
get help after the sale. It's not just Online shopping that has a lot of potential. Businesses
can use the Internet to communicate more effectively with both current and potential
customers. The study's main goal is to find and look at the things that make people
decide to buy clothes online. The goal of this study is to find out what makes people
decide to buy clothes online. Three variables will be looked at: how often, which

32
website is the most popular, and which gender prefers it. As important as it is to know
why people buy things, it's also important to know how people think about and act on
things they buy online. This is because how people think about and act on things they
buy online is a big factor in what they do.

33
 LITERATURE REVIEW

It is called "electronic commerce" when you buy something from a seller on the Internet.
There is now a new strategy called the "click and order" or "internet-based" business
model that is replacing the old physical retail business model. More folks than before are
online shopping for a wide variety of items, from homes to footwear to plane tickets, all
at once. Individuals now have a lot of options when they shop online for things and
services.

Clothes shopping online have its own set of characteristics. According to Huseynov and
Yldrm (2014), the most significant barrier to online retail purchases is the lack of
physical interaction, followed by the privacy of personal information and the security of
online financial transactions. Demangeot and Broderick (2010) also discovered that in
this scenario, perceived ease of use has no effect on the behavioral pattern, which is
shaped by security and privacy concerns. Numerous factors, like the introduction of
internet, have an effect on daily taste, personal taste, and selection. However, this
advancement requires a more complete understanding of the customer behaviour.
Consumer behaviour research has established an unifying framework of purchasing
behaviour that illustrates the steps consumers take when making a purchase decision
(Vrender, 2016). Marketing companies value these designs even though they can be
used to explain and predict customer purchasing behaviour.

Jarvenpaa, Todd, Jarvenpaa, and Todd (1997a) developed a model of general Internet
shopping attitudes, behaviours, and intentions. The design incorporates a number of
indicators, which are classified into four categories: Product value, the quality of
services provided through the website, the shopping experience, and the risk perception
associated with online purchasing are all factors to consider. Chang, Cheung, and Lai
(2005) examined a variety of factors influencing online shopping behaviour. They
classified the qualities in their research into three broad categories. The first is the
perceived characteristics of the web sale channel, which include risk, online shopping
experiences, added benefit, quality of service, and trust. The second category includes
risk mitigation measures, characteristics of the site, and product attributes; the third

34
category includes consumer attributes. Consumer characteristics are influenced by a
variety of factors, including demographic variables, consumer purchasing preferences,
consumer innovativeness and psychosocial factors, computer and Internet proficiency,
and usages.

Consumer perceptions of online shopping are frequently shaped by two factors: trust and
purported value (Hoque, Ali, & Mahfuz, 2015). As an impact, consumer behaviour
forward into online purchases appears to be influenced by perceived benefits and trust
(Al-Debei, Akroush, & Ashouri, 2015; Hajli, 2014). Additionally, the quality of
information, merchandise attributes, website design, transaction capability, payment,
security/privacy, and delivery, as well as the consumer's self-consciousness, state of
mind, and sense of time, all contribute significantly to online shopping gratification
(Katawetawaraks & Wang, 2011; Liu, He, Gao, & Xie, 2008; Mudambi & Schuff, 2010;
Novak, Hoffman, & Yung, 2000; Shergill & Chen, 2005; Sorce, Perotti, & Widrick,
2005).

The image of the brand and the quality of the product, as well as the reputation of the
country of origin, all have a significant impact on online product purchase intent (Haque
et al., 2015). Additionally, online data extraction about products, services, and historical
data for specific customers is critical when deciding on an online retailer or making a
buyback decision (Liao, Chu, Chen, & Chang, 2012).

Koufaris (2002) asserts that both shopping pleasure and perceived utility (of a website)
are significantly predictive of online repurchase intent. However, Lee and Lin (2005)
discovered that, while shopping delight can increase new customer intent, it has no
effect on customer retention. Indeed, a web store that employs value-added search
engine methods and provides a demanding experience for customers may increase their
purchasing satisfaction. Additionally, if customers return to the web store on a regular
basis, their purchasing pleasure will be determined by their interaction with the products
(Marios Koufaris, Kambil, & LaBarbera, 2001). Additionally, demographic factors such
as age, gender, and income level facilitate online purchasing by influencing customer
perception and behaviour (Kim, Zhao, & Yang, 2008; Laforet & Li, 2005; Sabbir
Rahman, 2012).

35
Study of models

Consumers make purchasing decisions by becoming cognizant of and identifying their

wants, gathering information about the best ways to meet those wants, weighing various
available options, making a buying decision, and evaluating their purchase.

While it is critical for any organisation to understand the consumer decision-making

process, online sellers have a distinct advantage in this area. Because online shoppers
generate significantly more data than in brick-and-mortar locations, online merchants
can use that data to develop conversion techniques for each stage of the process.

The 5 Stages of the Consumer Decision Making Process

It is critical to keep in mind that the terms "purchaser journey,""purchasing

cycle,""purchaser cannula," and "consumers ‘ purchase decision procedure" all
allude to the consumers to compare process. However, all of these factors point to
the same thing: this same person's journey through the buying process. Thus, the
following is a collapse of what occurs in each step:

 Need recognition (awareness): Need recognition occurs when a consumer

precisely determines their own needs. Consumers may feel as though they are
missing out on something, and this is a problem that must be addressed in order
to close the gap. Businesses can maximise their advertising if they can predict
when their target audience starts to form these demands or desires.
 The term "need recognition" refers to the process by which a consumer
accurately defines their requirements. Consumers may feel as though they are
lacking out on something, and this issue must be recognized in order to bridge
the divide. Companies can maximise their advertising opportunities if they can
predict when their target audience develops these needs or desires.
 Search for information (research): As consumers demand increasing amounts
of data about products that suit their needs, the information seeking stage of the
buyer decision process is likely to evolve over time. Additionally, information
can be gathered through product recommendations from individuals who have

36
 used the product previously. At this stage, consumers are more likely to consider
risk management and compile a list of a brand's characteristics. This is done to
ensure that the majority of consumers are not disappointed with their purchase.
There are numerous locations where you can obtain information about products
and services, including:
 Commercial sources include advertisements, promotional campaigns,
salespeople, and product packaging.
 Personal sources: The specifications were discussed with family and friends, who
made product recommendations.
 Public sources include radio, newspapers, and magazines.
 Experiential sources: A customer's personal interaction with a brand..

 Evaluation of alternatives (consideration): This stage incorporates weighing

the upsides and downsides of various market choices, as well as the product's
anticipated lifespan. After determining which option best meets their needs, the
customer would then start searching again for best possible alternative. This
assessment might be based on a variety of factors, such as quality of product,
pricing, or other factor that is significant to customers. They can compare the
prices and read reviews to ascertain that what product is the best perfect match
for their particular criteria.

 Purchasing decision (conversion): After completing all of the preceding phases,

the customer has finally chosen to make a purchase decision. At this point, the
consumer has weighed all of the available information and arrived at a logical
conclusion based on the marketing efforts, emotional ties, previous anecdotes, or
a combination of the two.

 Post-purchase evaluation (re-purchase): Relating to the purchase of a product,

post-purchase evaluation is performed to determine whether the product had
been beneficial to the customer. If indeed the product meets the customers ‘
expectation, they becomes a spokesperson, influencing other potential customers

37
 and thereby increasing the customer base of the business. Negative experiences
are similar; however, they can deter potential customers from purchasing the
product.

Evaluation Post-
information of Purchasing purchase
Need recognition
search alternatives decision evaluation

Figure: Consumer Buying Behavior Model

Internet shopping and its impact on consumer behavior

The internet is growing at an incredible rate over the last two decades, thanks to
computer technology that made a lot of things digital. It was because of the internet's
long-term growth, which meant more people were online, as well as because of the use
of trying to cut technology for web development, that businesses were able to promote
and improve their products and services' images through web sites. As a result, people
are moving away from the traditional shoppers and toward shopping online because of
good product information and customer service. On the other hand, more and more
businesses are realising that people's behaviour is going to change and have changed
their marketing strategies as a result. Studies say that people now prefer to shop online,
especially when it comes to business to consumer (B2C) commerce, which has become
more popular. Many factors are behind the rapid growth of online shopping, but the
most important one is the fact that the internet has a lot of benefits. To start with, the
internet has a lot of advantages for people who use it. Consumers no longer have to go
outside to look for information about products, because the internet can help them
browse websites and compare prices to find the best deal. In addition, the internet has
the ability to get more people to use a product more quickly and effectively than
traditional channels. It takes time to learn about and choose the right product, but clients

38
can save time by using search engines that combine images, sound, and very detailed
written descriptions to make it easier for them to communicate. On either side, people
who shop online face risks, such as those related to online payments and customer
service after the sale. Because of new technology, web payment has become a popular
way to buy things on the internet. Due to the fact that internet payments are virtual, they
make it easier to use them, but they also make it less safe to use them.

Source: Research Gate

External and internal factors frequently influence consumer behaviour. Typically,

internal factors are deduced from the consumer's feelings, whereas external factors are
deduced from the surroundings. Numerous factors can influence consumer behaviour.
External influences can be classified into five categories, according to Warner:
demographic groups, socio - economics, new tech, and policy making; culture;
subculture; reference groups; and advertising. Among other psychological processes,
internal factors include attitudes, learning, perception, motivation, self-image, and
semiotics (Malcolm). Additionally, Sheth (1983) proposed that buyers are There are two
distinct motivational styles: functional and non-functional. The produce various are
concerned primarily with time, shopping location, and customer needs, including one-
stop shopping to save time, the shoppers location's environment, including parking fees,
lower product prices, and the ability to choose between a diverse product selection. Non-
functional variables, like the store's brand name, have a stronger connection to culture or
socially constructed ideals. Historically, shopping has been entirely focused on the buyer
obtaining what they require. This behaviour will be influenced by the seller's marketing

39
and advertising efforts, which will encourage buyers to visit the store and make
purchases, with a portion of the newly items purchased being taken home and used.

Internet Shopping

 While traditional buying groceries and Internet shopping share many similarities,
they also have some distinctions. For instance, Internet shopping can offer
convenience and service on the basis (Jarvanpaa and Todd, 1997), whereas
shopping experience can offer a more comfortable retail experience and high-
quality goods (Lee and Chung, 2000). Traditional shopping malls provide more
parking spaces, more counters, and are located nearer to residential areas to
improve service and convenience; Internet shopping malls improve product
display through the use of virtual reality (Lee, 2001) and 3D technology (Miller,
2000)

 Convenience: The fundamental reason for shopping online has been agreed
upon by the majority of researchers and consumers: the internet provides
shoppers with a great deal of convenience (Wolhandler, 1999). Customers can
shop online at any time and from any place, which means they can browse and
shop 24 hours a day, seven days a week from their homes and offices, which
attracts some time-pressed shoppers to the Internet in order to save time
searching for a product in physical stores. Additionally, the Internet offers
numerous opportunities for money and time savings. For example, shoppers
avoid the need to visit a physical store, saving on transportation costs. Customers
shopping online do not have to wait in line, and while some buyers have
disclosed feeling pressured by salespeople at times, they have discovered that
shopping online is more enjoyable.

 Technology The ease with which one can use the Internet is determined largely
by technological advancements, which have been instrumental in the growth of
online shopping. In the last decade, organisations have recognised the potential
for new technology to have a significant impact on online shopping, and As an

40
 impact, numerous critical technologies including such virtual reality and 3D
techniques have been utilized to meet strong competitive advantage (Clark,
1989). The Internet, a form of information technology, has improved the
performance of product details, assisting customers in making purchasing
decisions (White, 1997). According to a variety of surveys, the Internet's growth
and usage have been accelerating in the last decade. According to BMRB
International (2004) and GVU's WWW 9th User Surveys (1998), the percentage
of Internet users in the United Kingdom has increased to 22.7 million,
accounting for 48.4 percent of the adult population, and approximately 53% of
Internet users say they use the Internet primarily for shopping. CNNIC (China
Internet Network Information Centre) published a statistical study on the
Internet's development in China in July 2006. According to this questionnaire, 30
million people make regular purchases online, accounting for more than a quarter
of any and all Internet users. Both surveys indicate that an increasing number of
Online prefer to pay for purchases online, and As an impact, the security of
online payment would then undoubtedly become a significant factor influencing
Internet purchasing.

 Consumer Confidence in Online Shopping

Mayer, Davis, and Schoorman (1995) defined trust as "the willingness of one
party to be vulnerable to the acts of another based on the expectation that the
other will perform a specific activity significant to the trustor, regardless of the
trustor's ability to monitor or control the other party" (p.712) Lee and Cheung
(2006; Cheung and Lee, 2006). This is the most frequently cited and widely
accepted definition (Rousseau, Sitkin, Burt, & Camerer,).

 Individuals buy goods and services on the basis of their trust in both the product
or service and the seller, whether in a physical store or online. Establishing a
relationship with customers is contingent upon the presence of an element of
online trust. According to a recent study (Cassell and Bickmore, 2000), online
trust is lower than trust in physical stores, and Cheung and Lee (2006)

41
 discovered that both the trustworthiness of Web merchants (perceived integrity,
self efficacy, and perceived system security) and the physical factors (third-party
acknowledgement and legal framework) have a significant effect on consumer
trust in Internet shopping (see figure 1). A website's credibility is determined by
the level of privacy security provided. For instance, a high level of technical
competence can play a role in determining trustworthiness (Singh and
Sirdeshmukh, 2000). As previously stated, an online merchant can provide third-
party verification for an Online shopping web site, and when these privacy and
security measures are implemented, clients will believe their Online shopping
exchanges over the Internet are secure, and the site will gain their trust. Apart
from that, if the Ecommerce web site includes information about customer
service, an office location, a contact phone number, and a help button, clients
will become more likely to trust the online retailer because they will believe the
retailer exists (Lohse and Spiller, 1998).

 The Model of Technology Acceptance (TAM)

The technology acceptance model (TAM) is a computer science theory that
describes how people consume and use technology. The point at which humans
make use of technology is at the point of system utilisation. One factor that
influences people's decision to use technology is their theory of planned
behaviour. The attitude (A), or overall impression of the technology, has an
effect on the behavioural intention (BI). When consumers are presented with new
technology, the pattern suggests that a number of factors influence their decision
about how and when to use it, including the following:Perceived
usefulness (PU) – Fred Davis defined perceived usefulness (PU) as "the degree
to which a person believes that employing a certain system would improve their
job performance." It refers to whether or not someone considers a piece of
technology to be beneficial for the task at hand.

 Perceived ease-of-use (PEOU) – Davis defined ease (PEOU) as "the extent to

which an individual believes that utilising a particular system would be

42
 effortless" (Davis 1989). The barriers will be conquer if the innovation is simple
to use. Nobody likes something that is difficult to use or has a contrived
interface.

External factors, such as social influence, have a significant impact on attitude

formation. Once all these objects (TAM) are in place, people will develop an
attitude and desire to use technology. However, because each person is unique,
perceptions may vary according to age and gender.

Source: Semantic Scholar

Theory of reasoned action

The theory of rational action (TRA or ToRA) aims to explain how attitudes and
behaviours interact in human action. It is primarily used to forecast future behaviour

43
based on an individual's prior beliefs and continuance intention. An individual's decision
to engage in a behavior is conditional on the outcomes he or she predicts as a
consequence of doing so. In 1967, Martin Fishbein and Icek Ajzen posited the
hypothesis, which was based on prior psychology research, persuasive communication
models, and attitude theories. Fishbein asserts that there is a correlation between attitude
and behaviour (the A-B relationship). On either hand, critics contended that mindset
theories had failed to demonstrate their predictive utility for human behaviour. Since
then, the two theorists have refined and expanded the TRA to address discrepancies in
the A-B connection between the planned behavior (TPB) and the reasoned action
technique (RAA). Additionally, the theory is used in communication discourse as a
theory of comprehension.

The primary goal of the TRA is to develop a better knowledge of an individual's

proactive behavior by analysing the underlying fundamental motivation for acting.
According to TRA, the primary factor deciding whether or not an inquiry learning in a
behaviour is their purpose to do so. Likewise, the norms (i.e., the social norms that
surround the act) influences whether or not the individual engages in the activity.
According to the concept, the purpose to engage in a behavior precedes the current
behaviour. This is known as behavioural intention, and it is motivated by the conviction
that engaging in the behaviour will result in the desired outcome. The concept
emphasises the significance of behaviour intent, which is "influentially impacted by
attitudes toward actions and subjective norms." Stronger intentions, according to TRA,
result in higher exertion to bring out the activity, which makes it more likely that the
action will be carried out.

44
Source: Research gate

The theory of planned behaviour

The theory of planned behaviour (TPB) is a psychological concept that describes the
relationship between thoughts and actions. According to the theory, three fundamental
components shape an individual's behavioural intentions: attitude, subjective norms, and
perceived behaviour control. According to TPB, the most proximal predictor of human
social behaviour is behavioural intention.

Icek Ajzen came up with the concept in order to boost the predictive ability of the theory
of reasoned action (TRA). Ajzen's concept was to incorporate perceived behavioural
control into TPB. TRA lacked a component devoted to perceived behaviour control.
TPB has been used to examine the relationships between beliefs, attitudes, behavioural
intentions, and behaviour patterns in a variety of human domains. These disciplines
include adverts, media affairs, ad campaigns, healthcare, sport management, and
sustainability.

45
According to TPB intentions are determined by three variables:

 Personal attitudes - These are our feelings about a particular act. When we
evaluate behaviour, we take into account all of our knowledge, attitudes, and
prejudices, both positive and negative. Tobacco, for example, is calming and
makes me feel good, but it causes me to cough in the morning, is expensive, and
smells awful.

 Subjective norms - This is how we interpret other people's attitudes toward a

particular routine, such as cigarettes. This could be a result of family, mates, and
coworkers' smoking behaviours. It is less about what other people want to
believe than it is about how we perceive their beliefs.

 Perceived behavioural control- It makes reference to our faith in our capacity

for self-control. This is dependent upon our conceptions of both internal and
external factors, of that kind as our own ability and persistence, as well as help
and support obtainable to us. Our current knowledge of planned behaviour has
two implications, according to the theory: It has an impact on our intentions to
act a certain way, i.e. the greater our intention to act a certain way, more the
authority we assume we have over our actions. Likewise, it has a direct impact
on our behaviour; if we truly believe we have a significant level of control,
people will work much harder to achieve our goals.

46
Source: Research Gate

47
 RESEARCH METHODOLOGY

Research Model

Clothes shopping online are a choice that each person makes on their own. Behavioral
theorists like the planned behaviour model can help explain this choice (TPB). Genes,
personality, behavioral patterns, attitudes, intentions and behaviour are just some of the
things that make up an individual. It also includes things that really are straight related to
environmental in which the person is living . It isn't just easier to make things in the TPB
model, but this hypothesis has a lot of evidence from information systems and other
fields, too.

The inclusion of innovativeness broadens our theoretical awareness of the effect of

personality traits on innovation adoption. Indeed, identifying those who can purchase
online could be extremely beneficial for cause of marketing such as targeted retail
segmentation. Personal innovativeness has an effect on technology acceptance intentions
in both a direct and indirect manner, which is mediated by attitude. The indirect effect
implies that inventive individuals are more optimistic about shopping online, which
benefits their online purchasing intentions. Petrof highlights the crucial role o f
personality characteristics in the context of consumer attitudes. Thus, as a personality
trait, personal innovativeness should foster of a favourable attitude toward innovative
behaviours including such online shopping. Feaster, who views innovative behavior as a
good outlook toward change, and Roehrich, who views it as a critical attitude factor,
both contribute to the proof for this association. On either side, the direct connection
between innovative behavior and aspirations aims to grasp potential impacts those are
not wholly made by society's reaction Additionally, personal inventiveness has an effect
on online purchase behaviour in both a direct and indirect manner, which is mediated by
intention.

A person's behaviour is determined by the probability that a specific move will result in
a particular outcome. This concept was included to aid in the comprehension of the end
results of shopping online that drive people to engage in this behaviour. The TPB and

48
TRA assert that attitudes completely mediate beliefs about perceived outcomes.On either
side, Traindis viewed intents as a direct cause of observed consequences.While an
inventive person may appreciate online shopping, he or she will not accept it if
significant negative consequences are identified. This perspective is consistent with the
technical acceptance paradigm, which maintains that perceived utility precedes both
attitude and intention.

Methodology

Google forms were used to collect the data. Consumers were randomly selected and
invited to take part in this study by distributing the questionnaire's google form link
across social media platforms. Although 119 respondents' data were collected, only 110
respondents' views were considered for the study. Due consideration was given to the
way the queries are phrased in a serious but not routine manner. This is an empirical
study that utilises both primary and secondary sources of data. The methodology, which
includes sample design and data analysis, is detailed below.

Sample Design

The current study is a cross-sectional sample study using empirical data. The study
employs a survey methodology. The study collected data from individuals who regularly
use the internet and have a working knowledge of online shopping. Primary data were
collected from 119 individuals; however, only 110 individuals were considered for
analysis because they were comprehensive and accessible in all respects.

49
 ANALYSIS OF DATA

Tools such as percentages, charts, averages are used for analysis of the data. The frequency
of consumers buying clothes online.

Once in a week, fortnight, once in a month and more slots are used to find the frequency
of shopping clothes online. From Table 1 it is understood that more than half i.e. 50.9
percent respondents prefer online shopping once in a month.

Table 1: The frequency of consumers buying clothes online.

Frequency Percentage

Once in a week 9 8.18

Fortnight 29 26.36
Once in a month 56 50.9
More 16 14.54
Total 110 100
Source: Own analysis

Frequency of uses
Once in a week Fortnight Once in a month More

8%
15%

27%

50%

50
1. Website preference for consumers.

Websites like Amazon, Flipkart, Myntra, Ajio and Snapdeal were taken to find the
preference of website to buy clothes online. From Table 2 it is understood that about
32.72 percent respondents prefer online cloths shopping through myntra.

Table 2: Website Preference

Frequency Percentage

Amazon 28 25.45
Flipkart 30 27.27
Myntra 36 32.72

Ajio 9 8.18

Snapdeal 7 6.36

Total 110 100

Source: Own analysis

Website preference percentage

35

30

25

20

15

10

0
Amazon Flipkart Myntra Ajio Snapdeal

51
2. Consumers biggest challenge with online shopping.

The purpose of this study was to determine the general problems faced by the costumers
while online shopping of cloths, data is obtained from the online survey through google
forms and then analysis is done.

Table 3: Problem faced by customers while buying clothes online.

Frequency Percentage

Slow checkout time 21 19.09

Lack of products I want 69 62.72
Slow webpage response time 20 18.18
Others 0 0
Total 110 100
Source: Own analysis

Problem faced
Slow checkout timer Lack of products I want Slow webpage response time Others

0%
18% 19%

63%

52
3. Consumers biggest concerns about online shopping.

The purpose of this study was to determine the biggest concerns faced by the costumers
while online shopping of cloths, data is obtained from the online survey through google
forms and then analysis is done.

Table 4: Biggest concern about online shopping.

Frequency Percentage

Breach of personal information 46 41.81

Breach of payment details 42 38.18
Poor internet connection 22 18.18
Total 110 100
Source: Own analysis

Concerns
45

40 41.81

35 38.18

30

25

20

15 18.18

10

0
Breach of personal information Breach of payment details Poor internet connection

53
4. To find out reason which prompts consumers to shop clothes online.

The purpose of this study was to determine that what prompts customers to shop clothes
online, data is obtained from the online survey through google forms and then analysis is
done.

Table 5: Inspirations to shop clothes online.

Frequency Percentage

Brand 12 10.90
Price 46 41.81
Quality 35 31.81
Service 17 15.45
Others 0 0
Total 110 100
Source: Own analysis

Inspirations to shop 0%
Brand Price Quality Service Others

11%
15%

32% 42%

54
5. Consumers preferred timing to shop online.

The purpose of this study was to determine that when customer desires to shop clothes
online, data is obtained from the online survey through google forms and then analysis is
done.

Table 6: Shopping desires.

Frequency Percentage

At leisure 18 16.36
During offers/promotion 47 42.72
On need 31 28.18
Mood/desire 14 12.72
Total 110 100
Source: Own analysis

Shopping Desires

13% 16%

At leisure
During offers/promotion

28% On need
Mood/desire

43%

55
 FINDINGS AND RECOMMENDATIONS

The findings emphasise the critical nature of assessing the construct of personal
innovativeness in the context of online shopping. For example, the findings indicate that
both intentions and behavioural intention have an equivalent impact on online shopping
behaviour. Similarly, assuming that only intentions determine behaviour may be
deceptive. This study demonstrates that perceived behavioural control (such as self-
efficacy and enabling situations) plays an equal role in determining online clothing
buying behaviour as intentions do.

Additionally, the findings indicate that attitudes forward into online purchasing have the
greatest influence on having plans to buy online. As an impact, it occurs as critical to
investigate the aspects that influence attitude. This research examines the origins of
attitudes toward online shopping.

Personal inventiveness was found to have an effect on both direct and indirect online
shopping intention, which are arbitrated by attitude. As an impact, progressive shoppers
are more likely to prefer online shopping.

These customers are critical for a variety of reasons, and so many marketers should aim
and target them.

1. For starters, sales to early online buyers generate positive cash flow for a
company looking to swiftly recoup its online selling costs.In many product
fields, early adopters are likely to be heavy users.
2. It could also make it more difficult for other competitors to get into the same
cyber market if innovators make a lot of money from their sales.
3. Third, think ahead. Online customers can give useful information to the company
about the whole online purchase they have, pointing out flaws or making
suggestions about how to improve it.
4. Finally, inventive online buyers can aid in the promotion of the website to other
Internet users. Many online shoppers are already linking their favourite online
shops to their personal websites.

56
Perceived consequences, such as personal inventiveness, were found to significantly
influence internet shopping attitude and behavioral intention. Online shopping appears to
result in lower prices. As an impact, business owners should pass along the savings
associated with electronic commerce to their customers. Additionally, discounts,
promotions, and other enticing offers should be available.

Additionally, the findings indicate that security flaws are still viewed as a significant
disadvantage of online shopping. Despite the fact that Online security is increasingly a
psychological issue rather than an economic as well as technological one, concerned
online consumers require assurances regarding security of their transactions.

The people who make the market and websites should incorporate stability features
shown as encryption, (SSL), and safe payment options. Additionally, they shall make
their security protocols accessible to prospective online shoppers. For example, going to
add the phrase "Secure Server" to a website can increase client trust. Additionally, one
of the most significant perceived benefits of online shopping is the "chance of saving
time."

According to Bellman et al., the amount of free available time to shoppers is a

significant predictor of online purchasing. Customers may become irate if the checkout
process is more complicated than necessary, resulting in lost sales. As an impact, web
developers should make it simple and rapid for shoppers to evaluate and vacant their
shopping carts in full or in part. It is strongly recommended to use coherent menus to
enable online customers to view and modify their shopping basket contents from any
page of the site.

A significant perceived benefit of online shopping was discovered to be enhanced

customer service. Customer service and support should cover all aspects of the purchase
process, including pre- and post-purchase interactions. According to Rhee and Riggins,
people who have bought things online think that web-based businesses help with all
three stages. On either side, people who are looking for information about products and
services don't think that internet businesses can help them. Jarvenpaa and Todd found
that 80% of people have had a bad experience with online customer service. Guarantees

57
and warranties are a great way to improve customer service for online purchases while
also increasing the number of people who use them.

According to Lohse and Spiller, adding a common questions (FAQ) segment about the
company's products resulted in higher cyberstore traffic and sales. Comparison shopping
is a significant perceived outcome. This corroborates Rowley's assertion that the
majority of buyers expect to be able to compare available products as well as pricing
across multiple online merchants. As an impact, web designers must make it simple for
online shoppers to compare the characteristics of a business's products to those of
competitors. Rego & Dholakia claims which emphasizing the special benefits of a
company's goods is a critical indicator of how good the data is contained on commercial
websites.

A strong correlation existed between planned behavior and internet shopping behaviour.
As measured by a formative measure of internet / intranet competence, self-efficacy has
been found to be significant. This was a virtual certainty, as online shopping is only
available to those with internet access. Additionally, there were a number of favourable
circumstances. To begin, site accessibility was critical in making online shopping more
convenient. This study corroborates Lohse and Spiller's research results that advertising
on websites increased traffic and revenue.

Additionally, they discovered that increasing the number of "shop entrances" increased
the number of website visitors and resulted in growth in sales. Additionally, When Rego
& Dholakia looked at the number of links, they found that it went up from other
websites to the commercial website was linked to the amount of links from other
websites to the commercial home page. Marketers can promote their business websites
by linking to them from other cybermalls, arranging circuit contains with other
commercial websites, and sending them to search engines. A fast loading website is
critical. These findings corroborated the study's findings. Georgia Tech's Graphics,
Visualization, and Functionality (GVU) Center conducted numerous surveys. According
to research, slow loading speeds are one of the most common user complaints.
According to Gehrke and Turban, web designers should keep graphics simple and

58
meaningful, avoid unwanted animation and multimedia connection needs, use thumbnail
images, provide a "text-only" option, monitor the server database ant online activities
constantly, also allows text should load first, then graphics.. "Excellent product
description" was another critical enabler. According to Lohse and Spiller, improved
product records had a significant impact on sales. They recommend supplementing these
listings with product images.

Additionally, Ho and Wu discovered that useful and accurate product information result
in increased customer satisfaction among online shoppers. Obtaining accurate goods
knowledge effectively says the buyers to act. Web designers and marketers are
primarily responsible for providing and managing such information through the use of
clear and concise text and appropriate visuals. "Transaction efficiency" was another
formative metric that played a significant role in facilitating the process. This study
corroborates the findings of Ho and Wu, who discovered that the value of rational
assistance given to clients during online purchases is linked to more satisfied customers.
It's not just how easy it is to get information or make a payment that makes it easy.,
critical feature and marketers must not overlook the delivery component of the
transaction. The speed in which items are delivered has an effect on online customers'
perceptions. The efficiency of navigation was found to be the final enabling condition
that was established to be critical. This is a point that numerous authors make.

Lohse and Spiller, for instance, told web designers to think very carefully about the
layout of their online store in order to make navigation easier. There was a lot of money
and visitors made by using the product list to find what you want.. They illustrate the
importance of quick navigation by quoting dissatisfied customers, such as "this is not for
computer uneducated individuals" and "I had regions I wanted to visit but couldn't figure
out how." Hyperlinks simplify the process of locating critical information and, if
necessary, delving deeper into specifics. These hyperlinks must be prominently
displayed a accurate (not manipulated). A commercial website having a large number of
given links should include a data site and a usable search engine. The significant
relationship between subjective norms and online shopping intentions is the ultimate
result worth addressing. According to Kraut et al., single person uses the Web more if

59
they are living in a socially acceptable environment that includes Internet-using friends
and relatives. What makes this study unique is that, in addition to family influence, the
media emerged as a significant social factor influencing internet shopping intentions. As
an impact, online businesses should advertise on tv and radio, as well as in newspaper
articles and trade publications.

60
 CONCLUSION

In conclusion, this research report has shed light on the factors that significantly influence
consumer behavior in online apparel shopping. The findings provide valuable insights for
online retailers seeking to understand and cater to the preferences and needs of their target
consumers.

Convenience emerged as a primary driver, with consumers valuing the 24/7 availability of
online stores, the ability to shop from anywhere, and the time-saving aspect of online
shopping. The convenience factor highlights the importance of providing seamless and user-
friendly online platforms that enable shoppers to easily navigate through product assortments
and make purchases.

Product assortment plays a crucial role, as consumers appreciate the wide range of options
available online. The ability to find unique styles, sizes, and brands that may not be easily
accessible in physical stores enhances the appeal of online apparel shopping. Online retailers
should continuously update and diversify their product offerings to meet the varied
preferences of consumers.

Price competitiveness is a key consideration for consumers, who actively compare prices
across different online retailers and seek out discounts, promotions, and free shipping options.
Online retailers should regularly evaluate their pricing strategies to remain competitive in the
market.

Building trust is paramount in online apparel shopping, as consumers rely on factors such as
positive customer reviews, secure payment options, reliable return policies, and transparent
communication to establish confidence in online retailers. Trust-building measures should be
prioritized to enhance customer loyalty and repeat purchases.

Social influence emerged as a significant factor, with recommendations from friends, family,
and influencers, as well as engagement with online communities and social media platforms,

61
impacting consumer behavior. Online retailers should leverage influencer marketing, user-
generated content, and social media engagement to amplify their brand presence and attract
potential customers.

Website usability and design are critical for ensuring a positive online shopping experience.
Intuitive navigation, comprehensive product information, high-quality images, and accurate
sizing guides contribute to customer satisfaction and repeat purchases. Online retailers should
invest in optimizing their websites to provide a seamless and user-friendly interface.

While this research provides valuable insights, it is important to acknowledge that consumer
behavior in online apparel shopping may vary across different demographic groups, cultures,
and regions. Therefore, further research and analysis specific to these factors are
recommended to gain a more comprehensive understanding of consumer behavior in online
apparel shopping.

By understanding and addressing these factors, online retailers can effectively tailor their
strategies and offerings to meet the expectations and preferences of consumers, leading to
increased customer satisfaction, loyalty, and business growth in the competitive online
apparel market.

62
 REFERENCES

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11. U. M. Dholakia and L. L. Rego, ―What makes commercial web pages popular{?} An
empirical investigation of web page effectiveness,‖ Eur. J. Marketing, vol. 32, no. 7/8,
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 ANNEXURE

Factors Affecting Consumer Behavior in Online Apparel Shopping.

1. What factors are most important to you when considering purchasing apparel
online?

o Product quality (e.g., fabric, construction, fit)

o Price
o Brand reputation
o Ease of return
o Availability of size and color options
o Free shipping
o Personalization (e.g., recommendations based on past purchases)
o Social media (e.g., seeing what my friends are buying)

2. How often do you shop for apparel online?

o Never o Often
o Rarely o Very often
o Sometimes

3. What are your favorite online retailers for apparel?

o Amazon o Gap
o Walmart o ASOS
o Target o Zara
o Old Navy

4. What are the most common reasons why you have returned apparel that you
have purchased online?

o The item did not fit o The item arrived damaged

o The item was not as described o I changed my mind

65
5. What are your thoughts on the importance of product reviews when shopping
for apparel online?

o Very important o Not important

o Somewhat important

6. What are your thoughts on the importance of free shipping when shopping for
apparel online?

o Very important o Not important

o Somewhat important

7. What are your thoughts on the importance of easy returns when shopping for
apparel online?

o Very important
o Somewhat important
o Not important

8. What are your thoughts on the importance of social media when shopping for
apparel online?

o Very important
o Somewhat important
o Not important

9. What are your thoughts on the importance of personalization when shopping for
apparel online?

o Very important
o Somewhat important
o Not important

10. What is the primary factor that influences consumers to shop for clothing
online?
o Convenience o Product assortment
o Price o Trust and security

66
67