A

Project Report On

A study on consumer attitude towards e-commerce with special reference

to risks.

A Report Submitted to

SDJ International College, Vesu

Affiliated to: Veer Narmad South Gujarat University, Surat

For,

Partial requirement for the fulfillment of the Degree of

Bachelor of Business Administration (BBA)

Submitted by:

Varshil khokhar

Roll No.: 078

Under the Guidance of

Dr. Heta Desai

SDJ International College,
(BBA PROGRAM)
Veer Narmad South Gujarat University,Surat
March-2023
 DECLARATION

I, Mr. varshil khokhar, hereby declare that the project report entitled “A study on consumer

attitude towards e-commerce with special reference to risks” is the original piece of

research work carried out by me under the guidance and supervision of Dr. Heta Desai,

Assistant Professor, SDJ International College, affiliated to Veer Narmad South Gujarat

University, Surat. I further declare that all the data and information collected through

secondary sources are duly acknowledged in the report.

-------------------
Date: varshil khokhar
Place: Surat Roll No.: 078
SDJ International College,
Vesu
 Acknowledgements
At this point, when I am about to finish my project work, it is my privileged opportunity to
thank all those people for their contribution provided to this research work.

Firstly I would like to thank our honourable director Mr. Deepak Vaidya, who always work
and think in the direction of betterment of the students and institute as well as supporting us
with all the necessary resources to finish our three golden years of graduation.

Next, I wish my heartfelt thank to coordinator of this college Ms. Aditi Bhatt, who always
motivate us to fulfil our dreams and lead us in the direction of growth. She has given her
valuable inputs for effective completion of this project.

I cannot forget the contribution of my project guide Dr. Heta Desai, without the support of
whom I would have never completed this report. Her constant help, guidance and continuous
teaching has given me so many inputs on academic as well as non-academic front.

I would also like to thank Mr. Sanjay Bhatt, Librarian, with the effort of whom, we couldget the
insights and learning from past years reports.

Lastly, I would thank all my friends, respondents and other persons directly or indirectly,
who have supported me in completing this report.

March-2023 varshil khokhar

Surat
 Table of content

No. Topic no. Particular Page no.

Declaration
Acknowledgements
1 Introduction 1

1.1 Introduction 2
1.2 Top 5 e-commerce company 3
1.3 E-commerce industry 4
1.4 History 6
1.5 Future of e-commerce in India 8
1.6 Company profile 9
1.7 Types of e-commerce model 10
1.8 Perceived risk 11
1.9 Types of risk 12
2 Review of literature 15
3 Research Methodology 25
3.1 Research problem 26
3.2 Objectives of study 26
3.3 Importance of study 26
3.4 Nature of study 27
3.5 Types of research design 28
3.6 Scope of research 29
3.7 Data collection 29
3.8 Data analysis techniques and tools 30
3.9 Limitation of study 30
4 Data analysis and interpretation 31
5 Findings 56
6 Conclusion 59
7 Bibliography 61
8 Annexure 65
8.1 Questionnaire 66
8.2 Codebook 72
Table Title Page no.
no.
4.1 Frequency of purchase 32
4.2 Website preference 33
4.3 Product preference 34
4.4 Personal information 35
4.5 Risky product 36
4.6 Concerns 37
4.7 Encountered problem 39
4.8 Return policy 41
4.9 Steps to avoid risks 42
4.10 Steps to avoid fraud 44
4.11 Additional security 46
4.12 Risk associated 47
4.13 Negative experience 49
4.14 Types of negative experience 50
4.15 Gender 52
4.16 Age 53
4.17 Education 54
4.18 Occupation 55
Figure Title Page no.
no.
4.1 Frequency of purchase 32
4.2 Website preference 33
4.3 Product preference 34
4.4 Personal information 35
4.5 Risky product 36
4.6 Concerns 37
4.7 Encountered problem 40
4.8 Return policy 41
4.9 Steps to avoid risks 42
4.10 Steps to avoid fraud 44
4.11 Additional security 46
4.12 Risk associated 48
4.13 Negative experience 49
4.14 Types of negative experience 50
4.15 Gender 52
4.16 Age 53
4.17 Education 54
4.18 Occupation 55
 CHAPTER 1
INTRODUCTION

Page 1 of 74
1.1 Introduction:

This study focuses on a number of potential variables that may affect people's intentions to
shop on social networking sites. Through various websites, social networking, which includes
Friendster, Myspace, YouTube, Facebook, Twitter, and others, connects people all over the
world. Online shopping carries greater risks than traditional in-person shopping because
customers cannot physically touch the goods or services they intend to buy. Due to the
incomplete web interaction compared to face-to-face interactions, customers cannot accurately
estimate the trust cues of the e-vendor in online contexts.

This research is going to analyse consumer attitude towards e-commerce with special reference
to risk. The perception of risk is crucial for online shoppers. In general, buyers aren't familiar
with the seller. Customers have negative feelings about the product as a result of perceived
risk. The offline context was used to examine perceived risk first. Five dimensions of risk are
initially perceived, including psychological, physical, social, performance, and financial risk.
After some time, the concept of time risk was added. Security risk, privacy risk, and source
risk are three additional dimensions of the perceived risk that have been added to online
shopping. Studies show that the perception of risk has a significant negative impact on online
shopping.

Study consumer attitude towards e-commerce with special reference to risk

Nowadays, it's very common to shop online. People love shopping online because of how
convenient it is in today's busy world. I personally prefer online shopping to traditional retail
since I can make any purchases while relaxing in bed. We all understand that while online
shopping has a lot of benefits, there are also risks involved. Regular online shoppers may have
a habit of saving their credit card information on e-commerce sites for later purchases, but
doing so carries a high risk of financial fraud. More than 7000 e-commerce websites have been
infected with malware that steals data, according to recent reports. You might be surprised to
learn that cardholders who hadn't saved their card information online for later purchases were
still at risk. The malware steals data such as usernames, passwords, credit card numbers, and
other private information. Due to the fact that hackers frequently have access to vast quantities
of customer data, e-commerce websites have become targets for them.

Page 2 of 74
1.2 India’s top 5 E-commerce companies:

1} AMAZON

2}FLIPKART

3} MYNTRA

4}AJIO

5}SNAPDEAL

Page 3 of 74
1.3 E-commerce Industry:
When we think about shopping today, we immediately think of the Internet. How did e-
commerce get to be the future of buying and selling? How did we go from buying: basic
electronics to purchasing nearly every product imaginable via the Internet? Well, e-commerce
offers a variety of solutions for both buyers and sellers that physical stores just simply can't. E-
commerce offers a buying experience that is unrivaled by traditional brick-and-mortar
shopping, with traditional shopping, we get dressed, go to the store, peruse the aisles and make
a purchase (regardless of whether it's the lowest price). The Internet gives us a much more
powerful alternative to brick and mortar.

Over the last decade, the Internet has changed the way people buy and sell goods and services.
Online retail or e-commerce is transforming the shopping experience of customers. The sector
has seen unprecedented growth, especially in the last two years. The adoption of technology is
enabling the e-commerce sector to be more reachable and efficient. Devices like smartphones,
tablets, and technologies like 3G, 4G, WI-FI, and high-speed broadband are helping to increase
the number of online customers. Banks and other players in the e-commerce ecosystem are
providing a secure online platform to pay effortlessly via payment gateways. The homegrown
players have shown tremendous growth and attracted some big investors. The entry of global
biggies like Amazon and Alibaba has taken the competition to a new level. E-tailers are
differentiating themselves by providing innovative service offerings like one-day delivery, 30-
day replacement warranty, cash on delivery, cashback offers, mobile wallets, etc. The supply
chain has improved significantly, and e-tailers are even leveraging the services of Indian Post
for greater reach across the country.

The Internet has also become a virtual small business incubator, where millions of
entrepreneurs can set up their online shops and reach customers all over the globe. Prior to the
advent of e-commerce, small businesses all over the world could only operate in their
immediate geographical areas with smaller customer bases. Today, there are approximately 24
million e-commerce sites that allow the little guys to compete with the big box stores on a
global scale.

Page 4 of 74
E-commerce personalizes the entire shopping experience for both buyers and sellers. E-
commerce has been a boon for sellers, who can programmatically display specific
advertisements and products that directly appeal to an individual customer. Using data on what
sellers have viewed or put into their online carts, sellers can then gently remind buyers to
purchase their recently viewed items. This type of information has streamlined the selling
process and has enabled online retailers to grow their profits.

The personalization aspect of e-commerce enables buyers to see exactly what they want and
when they want it. Have you ever come across an ad for a pair of shoes you were just looking
at 5 minutes prior? What about hotel deals in a city you were just doing some research on?
Personalization refines our choices, introduces us to products we most likely want, and helps
us to make the most well-informed purchases. The data gathered by e-commerce stores bring
the right product for us, saving us the time (and sometimes money) that we normally would
spend walking aimlessly around department stores.

Social media platforms are shaping the way people shop across the globe. Social media
channels are no longer just advertising channels. Since social media shopping has never been
more convenient, online shoppers are gradually switching from native apps to social media
shopping. Brands that have embraced social selling are already reaping the benefits. Social
media giants like Instagram, Facebook, Twitter, Pinterest, and YouTube have enhanced their
social selling features with the aim to reduce the time and effort needed to make a purchase on
social media, The future of E-Commerce is already Jooks bright for the shopper.

Page 5 of 74
1.4 History:

 1969 CompuServe, the first e-Commerce company is founded by Dr John R. Goltz and
Jersey Wilkins by using a dial-up connection. This is the first time e-Commerce was
introduced.
 1979 Michael Aldrich (also considered as the founder or inventor of E-Commerce)
invented electronic shopping. This was achieved by connecting a transaction-
processing system via a telephone link to a changed TV. That was done for secure data
transmission.
 1982 Continued technology development, especially in electronics, has led to Boston
Computer Exchange launching its first eCommerce platforms.
 1992 Charles M. Stack launched Book Stacks Unlimited as an online bookstore in
1992-three full years before the launch of Amazon by Jeff Bezos.
 1994 Marc Andreessen and Jim Clark co-created Netscape Navigator as a web
browsing tool, and formally announced its release.
 1995 Jeff Bezos launched Amazon mainly as a book-selling e-commerce site. Pierre
Omidyar launched Auction Web that same year which would later become what we
know as eBay today.
 1995 Amazon and eBay launch. Amazon launches as an online bookseller. Arguably
the online market maker, it leads the way for online shopping. 1995 also sees the launch
of eBay, creating a platform that eventually introduces the auction mechanism into
mainstream retailing.
 1996 Email, other web, and Hotmail launch opened the world of online
communications. The service was purchased by Microsoft in 1997.
 1997 both sides of the pond. The USA dominates internet usage, but more users are
coming online in Europe. For the second year in a row. global Internet usage has
doubled, with 1.7%, of the world population now online. The term weblog is coined,
later becoming simply blog.
 1998 Just Google.it, Google incorporates and launched, later becoming the most used
search engine in the world. It gives shoppers almost everywhere a fast and reliable
source of pre-perchance information.
 1999 Alibaba Online launched as an online marketplace in 1999 with funding of more
than $25 million.

Page 6 of 74
 2000 Google AdWords was launched as a way for e-commerce companies to advertise
to users using the Google search tool.
 2005 Amazon introduces membership on Amazon Prime. Customers get free shipping
for an annual fee. Etsy is launched. It allows craftsmen and smaller sellers to sell online
goods.
 2009 Square was created by Jack Dorsey and Jim McKelvey in 2009. Eddie Mahealani
and Mitchell Harper co-founded BigCommerce and introduced it as a 100 percent
bootstrapped storefront e-commerce site that year.
 2011 Google Wallet was launched as a digital method of payment. Facebook started
to roll out early advertising opportunities via sponsored stories to Business Page
owners. Stripe payment processing company launched.
 2014 Apple introduced Apple Pay as a mobile payment and digital wallet tool which
allowed users to pay with an Apple device for products or services. Jet.com was
founded in 2014.
 2017 Instagram Shopping was launched with e-commerce partner Big commerce in
2017.

Page 7 of 74
1.5 Future of e-commerce in India:

India is developing rapidly towards e-commerce market trends day by day. The internet
user base in India might still be a mere 300 million which is much less as compared to
the other developed countries but it’s surely expanding day by day. India has the third
largest internet population after US & China, Indian internet population was 205 million
in 2013 projected to be the second largest by 2016 with 330-370 million users. As per
the last three years, there is a rapid change in the scenario of e-commerce in India. More
than 200 million users have been added during the last three years. The growth of
internet users is increasing very rapidly in India.

Page 8 of 74
1.6 Company profile:
E-commerce, also known as electronic commerce or internet commerce, refers to the
buying and selling of goods or services using the internet, and the transfer of money
and data to execute these transactions. E-commerce is often used to refer to the sale of
physical products online, but it can also describe any kind of commercial transaction
that is facilitated through the internet.
The history of e-commerce begins with the first ever online sale: on August 11, 1994,
a man sold a CD by the band Sting to his friend through his website Net Market, an
American retail platform. This is the first example of a consumer purchasing a product
from a business through the World Wide Web or "e-commerce" as we commonly know
it today.
Since then, e-commerce has evolved to make products easier to discover and purchase
through online retailers and marketplaces. Independent freelancers, small businesses,
and large corporations have all benefited from e-commerce, which enables them to sell
their goods and services at a scale that was not possible with traditional offline retail.
Global retail e-commerce sales are projected to reach $27 trillion by 2020.

Page 9 of 74
1.7 Types of E-commerce model:
There are four main types of e-commerce models that can describe almost every
transaction that takes place between consumers and businesses.

1} Business to Consumer [B2c]:

When a business sells a good or service to an individual consumer (e.g., you buy
a pair of shoes from an online retailer).
2} Business to Business[B2B]:
When a business sells a good or service to another business (e.g., A business
sells software as a service for other businesses to use).
3} Consumer to Consumer [C2C]:
When a consumer sells a good or service to another consumer (e.g., You sell
your old furniture on eBay to another consumer).
4} Consumer to Business [C2B]:
When a consumer sells their own products or services to a business or
organization (e.g., An influencer offers exposure to their online audience in exchange
for a fee, or a photographer licenses their photo for a business to use).

Page 10 of 74
1.8 Perceived risk:
According to Arrow (1950), Humphreys and Kenderdine (1979) (1975). Perceived risk
"represents an uncertain, probabilistic potential future outlay". In simple terms,
perceived risk is the ambiguity that consumers have before purchasing any product or
service. a term that is used in Marketing and sales, Perceived Risk refers to the
customer's risks associated with any purchase and perception of associated with
products that are expensive such as houses or cars or is mostly products that are
complex and have many features such as Computers or laptops. This kind of risk occurs
when a consumer perceives that the purchase decision might cause a postritual hazard
or chance of loss, It does not matter whether the perceived risk exists or not. Perceived
risk is always subjective in nature and differs from person to person. It might also vary
from time to time. When buying products that have a higher perceived risk, Consumers
often consult experts, family, or friends about the product and then make their decision.
A common observation is that for products with high perceived risks, most consumers
tend to favour the market -which already has a good review.
Research has shown that online shopping poses something of a threat to consumers.
Numerous sources highlight the fact that consumers continue to perceive that using the
internet for purchasing is risky. It seems that the uncertainty associated with online
shopping makes it a risky endeavor for consumers, Risk refers to the likelihood that
actual results was differ from Mitchell (1999) proposal that Chalise consumers are more
often motivated to avoid losses than to maximize utility in purchasing, perceived risk
is powerful in explaining consumers' behavior. Perceived risk refers to the nature and
amount of risk perceived by a consumer in contemplating a particular purchase. Bauer
(1960) introduced the concept of perceived risk to marketing literature (Dowling and
Staelin, 1994). His work was expanded upon in risk-taking and information-handling
in consumer behavior by Cox (1967), This EARLY work was then followed by several
conceptual models of consumer risk perception and information handling.

Page 11 of 74
1.9 Types of Risk:

1.9.1 Functional Risk:

Functional Risk refers to the risks associated with the functioning of the product. For
example, a consumer who loves to bake cakes for his family and friends might think
"Was the oven sufficient to bake multiple batches of cakes?" The functional perceived
risk is associated with the product's features, functioning, and perceived benefits and
includes concerns regarding the quality of the product.
Since it is related to the features of the product, this kind of risk can be easy addresses
by the parent firm of the product. Providing adequate product information and
addressing every query of the consumer goes a long way in helping alleviate such kinds
of perceived risk.

Page 12 of 74
1.9.2 Physical Risk:
Doubts about the safe usage of the product come under Physical risks. A consumer
might be confused about how safe it is to use a particular product or service and thus
thinks multiple times before making the purchase.
This kind of perceived risk too is easy to address by the parent firm as they can easily
alleviate the customer's fears by providing them with information about the safety of
the product. A simple example in this regard would be the customer's doubt about
cooking in the microwave oven. With multiple kinds of research pointing to the harmful
effect of radiation inside the microwave, it is quite natural for consumers to worry
whether cooking in the microwave is safe or not. To put this fear to rest, the
manufacturing firm can explain how the food is safe when cooked in a particular
material.

1.9.3 Financial Risk:

Financial perceived risk arises when the consumer thinks about their Return on
Investment. Assessing whether the product they intend to purchase is worth its price
and whether the benefits of the products outweigh the investment they make come
under Financial perceived risk. When a consumer worries that an impulse buy might
strip him of valuable cash, it also comes under financial risk. An apt example here
would be a customer thinking if the dishwasher, costing USD 525, he intends to
purchase is worth the investment. This kind of risk too can be addressed by the
manufacturing firm by providing information such as life about the product.

1.9.4 Social/Psychological Risk:

It is a known fact that brand works extremely hard at creating an identity and image
that their customers can identify with.
Customers too start relating to a particular brand and thus hesitate to get associated with
a newer or lesser-priced brand. Such perceived risks can be classified as social risk. An
example would be a consumer's reluctance to wear a certain brand of clothes because it
affects their social status. Another example of perceived social risk can be a customer
worrying whether a particular high-priced dress would get his/her parent's approval or
even worrying whether a particular brand of crockery would complement his/her classy
and expensive dining table.

Page 13 of 74
1.9.5 Time Risk:
This kind of risk refers to the consumer's worry about time consumption when
purchasing a new product. The consumer here worries about how much of his time as
well as the effort the new product would consume. A common example here is when
firms switch from existing software to a new one. If using complex new software, the
firm would have to train their resources in the new software and thus have to invest
their time and effort when making the switch. Companies, therefore, address this kind
of concern by pitching their products as time-saving.
Since Perceived risks affect the consumer buying pattern, Marketers across industries
try to address the concerns of the consumer in various ways. Some common methods
of addressing perceived risks are providing a warranty or guarantee for their product,
including detailed information of every little detail about their product or even taking
the help of well-known celebrities to address the perceived risks associated with their
product and thus encourage consumers to buy their products.

Page 14 of 74
 CHAPTER 2
Review of literature

Page 15 of 74
(Daroch, Nagrath, & Gupta, 2021) As per the results total of six factors came out from the
study that restrains consumers to buy from online sites – fear of bank transactions and faith,
traditional shopping more convenient than online shopping, reputation and services provided,
experience, insecurity, and insufficient product information and lack of trust. This study is
beneficial for e-tailers involved in e-commerce activities that may be customer-to-customer or
business-to-business. The result showed that most of the respondents have both positive and
negative experiences while shopping online.

(Jain, Goswami, & Bhutani, 2014) The main objective of this research is to study the impact
of Perceived Risk, Perceived enjoyment, Perceived usefulness, and Perceived ease of use
factors on online shopping behavior of consumers in Delhi. The research findings revealed that
perceived risk negatively impact consumer’s attitude towards online shopping while perceived
usefulness, perceived ease of use, and perceived enjoyment has no impact on consumers’
attitude towards online shopping, and Out of the four, Perceived Risk is the most significant
factor that may affect online shopping behavior of consumers in Delhi. Perceived risk indicates
the lack of trust among consumers and many other reasons like that a chance of being cheated,
inferior quality of products, non-returnable policy, etc.

(Durmus, Ulusu, & Akgun, 2017) Perceived risk of consumers has been considered as a
fundamental concern of the decision-making process during online shopping. The study aimed
to examine the effect of perceived risks on Online Purchase Intention through WOM and Trust
issues. Data was collected from 635 online shoppers among consumers who previously
purchased online. Information Risk, Financial Risk, Product Risk, and WOM Intensity have an
effect on Trust and Trust has an impact on purchase intent. This study provides marketers with
important insight to adopt adequate risk-reduction strategies in the internet shopping
environment. It is based on the results and findings supported by the literature and previous
research on this subject. The study identifies the following managerial implications.

Page 16 of 74
(Rodrigo, Wijesekara , & Bandara, 2020) Online shopping gives a great example of the
business revolution and development. This study shows positive results through the research,
most of the shopping companies will tend to adopt online purchasing practices. Research
papers were categorized under internet knowledge, website quality, perceived risk, and
advantage in online shopping. For marketers, online shopping is one of the most valuable
platforms because marketing activities can be implemented effectively when they have the
right knowledge and understanding of consumer attitudes. For the organization's implication
on social media and other online strategies that can be helped to elevate the organization's
revenue.

(Almousa, 2014) The study investigates the influence of Saudi Arabian consumers’ perceived
risk in online shopping on the process of e-commerce adoption. Six types of perceived risk
dimensions were investigated including; financial, social, performance, time, psychological,
and privacy risks. Consumers perceived privacy and psychological risks as the most significant
risk factors affecting internet shopping, followed closely by performance and financial risks.
For marketers, awareness of the attributes of risk perception is important because consumers’
perceived risk level becomes a crucial factor in Internet purchasing. Upon the results of this
study, marketers can customize risk-reduction strategies associated with the Internet shopping
environment.

(Vijth & Parvathy, 2019) Research indicates that the buying behavior towards online shopping
is positive due to reasons like convenience, time-saving, varied choice and availability, 24x7
availability, etc. People are still averse to online shopping due to major reasons like no
bargaining facility, online frauds, nonavailability of try and buy facility, difficulty in returning
faulty products, lack of awareness, etc. The survey conducted revealed a positive attitude and
behavior toward online shopping even by those consumers who still like traditional stores. The
rapid growth of e-commerce has resulted in an E-transformation in the global retail
infrastructure. Youngers do prefer more online shopping because they are risk takers and know
the procedure of online shopping whereas old age persons are risk averse and likes physical
shopping.

Page 17 of 74
(Burman & Aggrawal, 2015) Buying behavior of consumers in India is changing and education,
age, income, economic scenario, media, and technology are playing a predominant role in
shaping the way people shop. According to a report, rapid urbanization and lifestyle changes
have increased time-starved consumers exponentially and the segment that values convenience
has grown. The growth of categories such as grocery retailing can be attributed to a mix of
increasing comfort with trying new 'non-traditional' categories coupled with improved value.
The urban segment has consumers adopting newer channels of purchase to overcome inherent
purchase barriers. The study is designed to understand the factors affecting buying behavior of
e-commerce customers and the role of branding of e-commerce sites in obtaining large sales
volumes.

(Zuroni & Goh, 2012) The main purpose of this study is to determine the factors influencing
consumers’ attitude towards e-commerce purchases through online shopping. The study also
investigates how socio-demographic (age, income, and occupation), a pattern of online buying
(types of goods, e-commerce experience, and hours use on the internet) and purchase
perception (product perception, customers’ service, and consumers’ risk) affect consumers’
attitude towards online shopping. The research has only examined three factors that influence
consumers‟ attitude towards online shopping. The findings revealed that there is no significant
difference in attitude towards online shopping among the age group but there is a significant
difference in attitude towards online shopping among income group.

(Ruhani, 2020) As per the analysis, it could be concluded that Perceived Risk has a negative
influence on Trust and Online Shopping Behaviour. Also, trust has a positive influence on
Online Shopping Behaviour. The objective and purpose of this paper is to understand and
evaluate the impact of perceived risk and trust on online buying behavior from an Indian
perspective. According to previous studies, Perceived Risk and Trust are the two major
variables that affect consumers’ behavior while shopping online in addition to the other
variables. The brand implies a guarantee made by the organization to the customers, brand
loyalty implies that this guarantee is satisfied.

Page 18 of 74
(Arora & Manmohan, 2018) This research study is to examine the key components of perceived
risk (security risk, privacy risk, product risk, and non-delivery risk) in e-commerce and the
impact of perceived risk on online shopping attitudes among online women shoppers in India.
The study also confirms the three elements of perceived risk, namely, security risk, privacy
risk, product risk, and non-delivery risk. The risk associated with non-delivery of mere
importance as online tracking systems of the shipment is accessible to the consumer which
makes it very convenient to check the exact location of the product. The results of the study
demonstrate that perceived risk is not a significant factor influencing attitude of women
shoppers in India.

(Yadav & Shrivastava, 2020) This paper tries to find out the factors that Indian consumers take
into account while shopping online. After this research study, it was found that cognition,
sensitivity, the convenience of use, saving money, enjoyment and security are the six
components, which can affect consumer perceptions when shopping online. Internet is not only
used by consumers for online purchases but through this, they compare the price of the product
as well as the type and features of the product. It is observed that the major hurdle behind the
development of online shopping is customer awareness. The majority of customers are not
aware about various pre and post-services rendered by these online shopping companies.

(Javadi, Dolatabadi, Nourbakhsh, Poursaeedi, & Asadollahi, An Analysis of Factors Affecting

on Online Shopping Behavior of Consumers, 2012) The purpose of this study is to analyze
factors affecting on online shopping behavior of consumers that might be one of the most
important issues of the e-commerce and marketing field. The study identified that financial
risks and non-delivery risks negatively affected attitudes toward online shopping, also Results
indicated that domain-specific innovativeness and subjective norms positively affect online
shopping behavior. In this study, we examined some factors affecting on online shopping
behavior of consumers. Results of hypotheses testing indicated that financial and non-delivery
risks negatively affect attitudes toward online shopping behavior.

Page 19 of 74
(Hong, Zulkiffli, & Hamsani, 2016) This study shows the impact of perceived risks on
customers’ attitudes toward online shopping also it aims to identify the elements of perceived
risks and the most influential types of perceived risks toward customers’ attitudes toward online
shopping. The findings showed that product risk, financial risk, and non-delivery risk are a
positively significant relationship with customers’ attitudes in online shopping while
psychological risk is a negative significant relationship with customers’ attitudes in online
shopping. Three of the perceived risks (product risk, financial risk, and non-delivery risk) have
positively related to customers’ attitudes toward online shopping. While psychological risk is
negatively related to customers’ attitudes toward online shopping. This research concludes that
four perceived risks have related to customers’ attitudes toward online shopping.

(mathur, 2015) In this research paper, an effort has been made to find out the perceived risks
of Indian customers concerning online shopping. These studies have all made important
contributions to our understanding of the dynamics of the online shopping field. There are
several factors affecting Indian consumers’ online buying behavior. The risk in online shopping
is mainly concerned with the misuse of credit cards, leakage of personal information, product
risk, and risk of convenience. The research also proved that people are still facing risks in the
electronic form of retail. It is evident from analysis that there is increasing rapid awareness
among Indians about online shopping.

(Bhatnagar, Mishra, & Rao, 2000) The likelihood of purchasing on the internet decreases with
increases in product risk. Moreover, the likelihood of purchasing on the internet doesn’t
decrease with age. the risk is associated with the internet as a purchasing medium purse, rather
than the consequences of purchasing particular goods. The likelihood of purchasing on the
Internet increases as the consumer’s experience on the internet increases. The results of the
analysis show some interesting results. Two categories had a positive preference for the internet
as a channel for purchasing goods. The effect of financial risk varied across product categories
conditional on the category being perceived as a viable transaction type. Their analysis also
shows there is a basis for segmentation based on gender, marital status, and age.

Page 20 of 74
(Sharma & Kurien, 2017) The research paper tries to identify possible perceived risks that
customers feel while buying from e-commerce websites. The study reveals that of the seven
identified risks, the impact of performance and financial risk were significant among e-users
in India. System-related perceived risk was found to be negligible among Indian consumers. It
was also found that approximately all risks are perceived equally by different
occupation/professional group segments. Perceived risk has various facets like performance
risk, financial risk, time risk, sociological, psychological, privacy, and system risk. The
research concludes that female e-shoppers are more risk-averse than male e-shoppers. It was
also found that approximately all risks are equally perceived by different occupation/profession
group segments.

(Salamat & Elian, 2021) This study comes to determine the threats limiting E-commerce in
Jordan. The results show that perceived ease of use, perceived usefulness, and perceived risk
with products/services are the main effective factors for predicting transaction loss, while delay
time is significantly affected by perceived ease of use and perceived risk with product/service.
The number of online transactions in Jordan is very small because of the existence of some
threats and risks associated with these transactions, so this study is an attempt to explore the
risks that limit online transactions. The results show that the perceived ease of use, the
perceived usefulness, and the perceived risk with products/services are the main effective
factors for predicting transaction loss, while the delay time is significantly affected by the
perceived ease of use and the perceived risk with products/services.

(Aldaej, 2019) This study seeks to explore the factors influencing the adoption of online
shopping by females with Saudi e-shops. This study adopted a qualitative methodology, as data
were collected by conducting thirty semi-structured interviews with Saudi females and
analyzed by applying the Thematic Analysis method using a software tool. As a result, the
study reported thirteen factors influencing Saudi females to adopt online shopping with Saudi
e-shops. Those factors were classified under six main themes: products-related factors,
logistics-related factors, customer service-related factors, payment-related factors, technology-
related factors, and culture-related factors. This study’s findings could help to enrich the IS
literature, particularly in the e-commerce field, with the essential factors influencing the
adoption of online shopping by females in Saudi e-shops.

Page 21 of 74
(Aminu & Olawore, 2019) This paper examined the perceived risks that constitute barriers to
Internet shopping for a large number of shoppers in Lagos State, Nigeria. The results of the
multiple regression analysis supported all three hypotheses of the paper, suggesting that
perceived product risk, perceived time risk, and perceived delivery risk negatively affected
Internet shopping for their sample. They highlighted the implications of the findings for e-
vendors operating in Lagos State and other states of the federation and made suggestions for
future research direction. They conclude that the perception of risks by shoppers constitutes an
important barrier to the growth of Internet shopping in Lagos State.

(Quazi & Kriz, 2009) This paper examines the effect of financial risk on perceptions of service
quality and relationship marketing quality in the online retail environment, also this study adds
to an enhanced understanding of how risk perceptions influence the assessment of service
quality and relationship-marketing quality. Based on the multivariate component of the
MANOVA, they can see that, while financial risk did account for variation in the levels of
service quality perceptions, this change did not vary significantly across retailers. Their
findings suggest that, in the absence of experience, consumers use Website-related features as
the main indicator of financial risk in new “trial-buy” purchasing situations.

(Popli & Mishra, 2015) This result is for an understanding of perceived risk is the key to
success for electronic commerce. Health risk involves the potential risk to one’s health while
browsing online for a long time. There are eleven types of risk in online shopping - financial
risk, privacy risk, time risk, product risk, performance risk, online transaction risk, health risk,
delivery risk, after-sale risk, and quality risk. Consumer risk perceptions block the growth of
e-commerce, and perceived risk refers to the nature and amount of risk perceived by a consumer
in contemplating a particular purchase decision. This is a conceptual study that mainly aims at
drawing out variables that affect the purchase decision of consumers in an online purchase
setting.

Page 22 of 74
(Tsai & Yeh, 2018) This study looked into the relationship between perceived risk of
information security and privacy, website quality specifically, product quality information,
efficiency service quality, website design style, transaction and delivery capabilities and buy
intention. A key factor in purchasing decisions is the confidentiality and privacy of customer
information when shopping online. This study demonstrates that website attributes have an
impact on purchase intention by positively influencing perceived risk related to information
security and privacy. In order to improve website management, it is necessary to first upgrade
e-commerce technology's network security and then create online security management
systems. Integrity management must be strengthened to allow customers to make secure online
purchases. The findings demonstrate that customers who buy environmentally friendly
products are concerned about the websites from which they make their purchases, particularly
if the sellers would uphold information security.

(Geetha, Chin, & Kong, 2021) The goal of this study is to examine how customers' perceptions
of risk affect their decision to make an online transaction in East Malaysia. To accomplish the
study's goals, the researchers used the Theory of Planned Behavior (TPB) in conjunction with
the dependent variable (consumers' intention to make an online purchase) and the independent
variables (financial risk, product risk, security risk, time risk, social risk, and psychological
risk). The researchers used convenience sampling in this instance, which involves choosing
samples based on the volunteers' openness and willingness to participate in the survey. The
researchers can only gather 140 respondents for the primary data due to time constraints. These
facts are from a Google Form survey of East Malaysian residents who had done internet
purchasing. In this research, the researchers do not apply any moderate variable or mediator
variable to test the study.

(Bhatti, Khan, Basit, & Jahangir, 2019) This study aims to investigate the effects of the
product, privacy, and financial risks on consumers' online shopping decisions. On the basis of
the theoretical foundation, the current study model was created. 280 questionnaires were
looked at using Smart PLS-SEM in this process. In this study, convenience sampling was
employed. Although the majority of earlier studies found a negative correlation between risks
and online shopping behaviour, this study also shows that negative influence. The study
provides further explanations on how risks can be reduced while online shopping behavior can
be increased, which can be used to enhance the plan.

Page 23 of 74
(Bhatti, Saad, & Salimon, The Influence of Risks on Online Shopping Behaviour in Pakistan,
2019) The current study offers a framework for assessing the risks associated with online
shopping, including those related to money, products, privacy, and convenience. Through the
distribution of questionnaires, a total of 323 online shoppers were asked to provide the
information. The framework's constructs were measured during analysis using the PLS-SEM.
The results of this study clearly show that risks have a direct impact on consumers' online
shopping behavior. So, lowering these risks could encourage more consumers’ online
shopping. This study's primary goal is to investigate how risks to financial stability,
convenience, privacy, and products affect consumers' online shopping decisions. The findings,
which are consistent with other findings, show that convenience risk has a significant negative
impact on online shopping behaviour.

Page 24 of 74
 CHAPTER 3
RESEARCH METHODOLOGY

Page 25 of 74
3.1 RESEARCH PROBLEM:
“A research problem is a statement about an area of concern, a condition to be improved, a
difficulty to be eliminated, or a troubling questions that exists in scholarly literature, in theory,
or in practice that points to the need of meaningful understanding and deliberate investigation.”

India is a growing economy. With increasing internet penetration day by day, there is also a
continuous growth in online purchase of products and services from e-commerce companies.
But, this also has a drawback that sometimes there is risk associated with online shopping.

The purpose of this study was to identify the problems which are faced by customers and to
investigate the attitude of consumers towards e-commerce with special reference to risk.

3.2 OBJECTIVE OF STUDY:

1. To examine the consumer attitude towards e-commerce with special reference to risk.
2. To study about consumers’ perceived risk in online shopping.
3. To identify factors affecting perceived risk involved in online shopping.
4. To know the opinion regarding various ways to avoid certain risks associated with e-
commerce.

3.3 IMPORTANCE OF STUDY:

1. This project will help the consumers to know about the risk associated with e-
commerce.
2. This report will identify the problem of consumers while purchasing products online.
3. This study will analyze the attitude of the consumer toward e-commerce.
4. This Project will help consumers to purchase products safely from e-commerce.

Page 26 of 74
3.4 NATURE OF RESEARCH:
There are two types in nature of research:

1. Basic Research

2. Applied Research

1. Basic Research: Basic research, also called pure research or fundamental research, has
the scientific research aim to improve scientific theories for improved understanding or
prediction of natural or other phenomena. Basic research fuels applied science's
innovations. The two aims are often coordinated in research and development.
Basic research generates new ideas, principles, and theories, which may not be
immediately utilized but nonetheless, form the basis of progress and development in
different fields. Today's computers, for example, could not exist without research in
pure mathematics conducted over a century ago, for which there was no known
practical application at the time. Basic research rarely helps practitioners directly with
their everyday concerns; nevertheless, it stimulates new ways of thinking that have the
potential to revolutionize and dramatically improve how practitioners deal with a
problem in the future.
2. Applied Research: “Applied research aims at finding a solution for an immediate
problem facing a society, or an industrial/business organisation, whereas fundamental
research is mainly concerned with generalisations and with the formulation of a theory”.
Applied research is considered to be non-systematic inquiry and it is usually launched
by a company, agency or an individual in order to address a specific problem.

“In this study, the nature of research was applied research as this was aimed to study the
consumer attitude towards e-commerce with special reference to risk.”

Page 27 of 74
3.5 TYPES OF RESEARCH DESIGN:
There are three types of Research designs:

1. Exploratory Research Design.

2. Descriptive Research Design.

3. Causal Research design

1. EXPLORATORY RESEARCH: Exploratory research is research conducted for a

problem that has not been studied more clearly, intended to establish priorities, develop
operational definitions and improve the final research design. Exploratory research helps
determine the best research design, data-collection method and selection of subjects. It
should draw definitive conclusions only with extreme caution.
2. DESCRIPTIVE RESEARCH: Descriptive research is used to describe characteristics of
a population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses the "what" question (what
are the characteristics of the population or situation being studied?) The characteristics used
to describe the situation or population are usually some kind of categorical scheme also
known as descriptive categories. For example, the periodic table categorizes the elements.
Scientists use knowledge about the nature of electrons, protons and neutrons to devise this
categorical scheme. We now take for granted the periodic table, yet it took descriptive
research to devise it. Descriptive research generally precedes explanatory research.
3. CAUSAL RESEARCH: Causal research, also called explanatory research, is the
investigation of (research into) cause-and-effect relationships. To determine causality, it is
important to observe variation in the variable assumed to cause the change in the other
variable(s), and then measure the changes in the other variable(s). Other confounding
influences must be controlled for so they don't distort the results, either by holding them
constant in the experimental creation of data, or by using statistical methods. This type of
research is very complex and the researcher can never be completely certain that there are
no other factors influencing the causal relationship, especially when dealing with people’s
attitudes and motivations. There are often much deeper psychological considerations that
even the respondent may not be aware of.

Page 28 of 74
 In this project descriptive type of project design had been used which comes under
conclusive research design. It describes data and characteristics about the population
being studied. Further in descriptive, a single cross sectional research design was used
in this project.

3.6 SCOPE OF RESEARCH:

1. This project will deal with knowing the elements which will measure the risk of online
purchase.
2. This project can be used to know the attitude of consumers towards e-commerce with
special reference to risk.
3. This project will help consumers to know the risk associated with online shopping.

3.7 DATA COLLECTIONS:

a) Sampling Size:

Total number of elements studied is known as sample size.

In this project the sample size was 150.

b) Sampling Method:

There are two types of sampling method, probability and non-probability method.

c) Sampling Frame:

It is a list or map or other specifications of a unit which continue the available information
relating to the population designed for a particular sampling scheme.

Here the sampling frame was SURAT city.

d) Sampling Element:

The elements which are available for selection in a sample such as a store, product, or person
are known as sampling elements.

The sampling element in this project was the online purchasers.

Page 29 of 74
e) Survey Method:

There are various methods through which survey can be conducted like online, telephonic,
mails, face to face, etc.

This survey was conducted using internet survey method. Specifically, google form method.

f) Survey Tool:

In this project, Structured Questionnaires was used as a survey tool.

3.8 DATA ANALYSIS TECHNIQUES AND TOOLS:

In this report collected data will be analysed with the help of ;

1. Tables

2. Charts

3. Graphs

3.9 LIMITATION OF STUDY:

The only limited area has been selected for the research.
The sampling size has been as per the idea and knowledge of the researcher.
Respondents may not provide the right information because of a lack of knowledge about
the risk.
Sometimes respondents have been not ready or able to give responses.

Page 30 of 74
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

Page 31 of 74
How often do you make purchases from online?
4.1 Table: Frequency of purchase
particular frequency percentage
Once in a month 96 64%
Twice in a month 21 14%
Multiple time in a month 33 22%
Total 150 100%

responses
multiple time in a
month
22%

twice in a month
14%
once in a month
64%

once in a month twice in a month multiple time in a month

Figure 4.1: Frequency of purchase

The above pie chart 4.1 show the information regarding how often respondents are making
purchase online. It shows that 64% of respondent are doing shopping only one time in a month.
14% respondent are doing shopping twice in a month, but 22% respondents are so regular, they
purchase product from online by multiple time. In explaining this result, it can be stated that
most of the respondents are purchasing from online in once in a month.

Page 32 of 74
Which website do you like to use to shop online?
Table 4.2: website preference
particular frequency percentage
Flipkart 87 58%
Ajio 56 37.3%
Amazon 98 65.3%
Meesho 29 19.3%
Myntra 48 32%
Total 318 211.9%

responses

100
90
80
70
60
50
40
30
20
10
0
Flipkart Ajio Amazon Meesho Myntra

responses

Figure 4.2: website preference

The above chart 4.2 shows the information about website that respondents are like to use for
shopping online. It shows that out of 150 respondents 65.3% (98) respondents are like to use
Amazon for shopping, and 58% (87) respondents are like to use Flipkart. Moreover, 37.3%
(56) respondents are like to use Ajio, and 32% (48) respondents are using Myntra for their
online shopping, but only 19.3% (29) respondents are like to use Meesho for online shopping.
In explaining this result, it can be stated that most of the respondents are like to use Amazon to
do shopping.

Page 33 of 74
Which types of products do you usually buy from an e-commerce website?
Table 4.3: product preference
particular Frequency Percentage Frequency Percentage Total Total
(Yes) (Yes) (No) (No) (Frequency) (percentage)
Clothing 133 88.67% 17 11.33% 150 100%
Electronic 83 55.33% 67 44.67% 150 100%
Footwear 97 64.67% 53 35.33% 150 100%
Cosmetic 62 41.33% 88 58.67% 150 100%
s

140 133

120

97
100
88
83
80
67
62
60 53

40

17
20

0
Clothing Electronic Footwear Cosmetics

Yes No

Figure 4.3: product preference

The above chart 4.3 shows the information about types of products that respondents usually
buy from online. It shows that out of 150 respondents 88.67% (133) respondents are buying
cloths from online, 64.67% (97) respondents are buying footwear from online, also 55.33%
(83) respondents are usually buy electronic items, but only 41.33% (62) respondents are buying
cosmetics items from online. In explaining this result, it can be stated that most of the people
are buying cloths from online.

Page 34 of 74
Do you agree with providing personal information during online transactions?
Table 4.4: personal information
Particular frequency percentage
Highly agree 34 22.7%
Agree 54 36%
Neutral 37 24.7%
Disagree 18 12%
Highly disagree 7 4.7%
Total 150 100%

Responses
Highly disagree
5%
Disagree Highly agree
12% 23%

Neutral
24%

Agree
36%

Highly agree Agree Neutral Disagree Highly disagree

Figure 4.4: personal information

The above graph 4.4 shows the information about proving personal information during online
transactions. It shows that out of 150 respondents 36% (54) respondents are agree, and 24.7%
(37) respondents are neutral, 22.7% (34) respondents are highly agree with the statement, but
on the other side only 12% (18) respondents are disagree, and 4.7% (7) respondents are highly
disagree with the statement. In explaining this result, it can be stated that most of the
respondents are agree with providing personal information during online transaction.

Page 35 of 74
Do you think purchasing online product is risky?
Table 4.5: Risky product
particular frequency percentage
Yes 93 62%
No 57 38%
Total 150 100%

Responses

No
38%

Yes
62%

Yes No

Figure 4.5: Risky product

The above pie chart 4.5 shows information about purchasing online product is risky or not. It
shows that out of 150 respondents 62% (93) respondents are thinking that purchasing online
product is risky, but on the other hand 38% (57) respondents are thinking that purchasing online
product is not risky. In explaining this result, it can be stated that most of the respondents are
thinking that online shopping is risky.

Page 36 of 74
What concerns do you have when shopping online?
Table 4.6 Concerns

Particular Frequency Percentage Frequency Percentage

(Yes) (Yes) (No) (No)
Security of personal information 121 80.67% 29 19.33%

Possibility of fraud or scam 115 76.67% 35 23.33%

Quality of product 125 83.33% 25 16.67%

Shipping and delivery times 93 62% 57 38%

Difficulty in returning product 100 66.67% 50 33.33%

Total 554 196

160

140 25
29 35
57 50
120

100

80

60

40

20

0
security of personal possibility of fraud or Quality of product Shipping and deliveryDifficulty in returning
information scam times product

Yes No

Figure 4.6 Concerns

Page 37 of 74
The above table 4.6 shows the information about concerns that respondents having when they
shopping online. It shows that out of 150 respondents 83.33% (125) respondents who have
concerns regarding quality of product, and 80.67% (121) respondents who have concerns
related to security of personal information. Moreover, 76.67% (115) respondents have concerns
about possibility of fraud or scam, also some respondents 66.67% (100) having a concern about
difficulty in returning product, but 62% (93) respondents have concerns regarding shipping and
delivery times. In explaining this result, it can be stated most of the respondents have a concern
about quality of product in online shopping.

Page 38 of 74
What types of problem have you encountered when shopping online?

Table 4.7: Encountered problem

particular Highly agree Neutral disagree Highly Total Mean
agree disagree
Delayed 51 57 26 10 6 150 3.9133
delivery
Wrong 28 65 33 16 8 150 3.5933
product
delivery
Product 33 44 55 14 4 150 3.5867
received
in poor
condition
Difficulty 31 39 44 28 8 150 3.3800
in
returning
product
Damaged 39 39 42 20 10 150 3.5133
product

Page 39 of 74
 10
20
Damaged product 42
39
39
8
28
Difficulty in returning product 44
39
31
4
14
Product received in poor condition 55
44
33
8
16
Wrong product delivery 33
65
28
6
10
Delayed delivery 26
57
51

0 10 20 30 40 50 60 70

Highly disagree2 Disagree Neutral Agree Highly agree

Figure 4.7: Encountered problem

In the above table 4.7 respondents were asked to rate which features they agree while
purchasing product, with 5 being ‘Highly agree’ and 1 being ‘Highly disagree’. From the above
figure 4.7 the ‘Highly agree’ feature is delayed delivery with the score of 3.9133, while Wrong
product and difficulty in returning product with a mean score of 3.5933, and 3.3800. Many
respondents also encountered problem of damaged product and product receive in poor
condition with a mean score 3.5133, and 3.5867. In explaining this result, it can be stated that
most of the respondents are highly agree with the delayed delivery.

Page 40 of 74
How important is it to you to have a clear, and easy-to-understand return policy when shopping
online?
Table 4.8 return policy
Particular frequency Percentage
Very important 97 64.7%
Somewhat important 41 27.3%
Not very important 8 5.3%
Not at all 4 2.7%
Total 150 100%

RESPONSES
very important Somewhat important Not very important Not at all
Not very important Not at all
5% 3%

Somewhat important
27%

very important
65%

Figure 4.8: return policy

The above pie chart 4.8 shows the information about how important is it for respondents to
having a clear, and easy to understand return policy when shopping online. It shows that the
out of 150 respondents 64.7% (97) respondents are thinking that it is very important, also
27.3% (41) respondents are thinking that it is somewhat important, but only few respondents
5.3% (8) are thinking that it is not very important, also almost 2.7% (4) respondents believe
that it is not necessary to have a clear and easy to understand return policy. In explaining this
result, it can be stated that most of the respondents believe that it is very important to have a
clear and easy to understand return policy.

Page 41 of 74
Which of the following steps do you take to avoid risks when shopping online?

Table 4.9: steps to avoid risks

particular frequency Percentage

Using reputable websites 69 46%
Only shopping on secure 87 58%
network
Using two-factor 62 41.3%
authentification
Using VPN 17 11.3%
total 235

Using VPN 17

Using two-factor authentificaton 62

Only shopping on secure network 87

Using reputable websites 69

0 10 20 30 40 50 60 70 80 90 100

responses

Figure 4.9: steps to avoid risks

Page 42 of 74
The above chart 4.9 shows information about steps that respondents take to avoid risks when
shopping online. It shows that out of 150 respondents 58% (87) respondents are doing shopping
on secure network, and 46% (69) respondents are using reputable websites. Moreover, 41.3%
(62) respondents are using two-factor authentification to secure their information, but few
respondents 11.3% (17) are using virtual private network (VPN). In explaining this result, it
can be stated the majority of respondents are doing shopping on secure network.

Page 43 of 74
Which of the following steps do you take to avoid fraud risk?

Table 4.10: steps to avoid fraud

particular Frequency Percentage Frequency (No) Percentage (No)

(Yes) (Yes)
Checking 139 92.67% 11 7.33%
reviews of
product or seller
Only shopping 98 65.33% 52 34.67%
with a reputable
seller
Checking the 129 86% 21 14%
refund policy
Using a trusted 118 78.67% 32 21.33%
payment
method
Total 484 116

Yes No
139
140 129
118
120
98
100

80

60 52

40 32
21
20 11

0
Checking reviews of Only shopping with a Checking the refund Using a trusted
product or seller reputable seller policy payment method

Figure 4.10: steps to avoid fraud

Page 44 of 74
The above chart number 4.10 shows the information about steps that respondents are taking to
avoid fraud risk. It shows that out of 150 respondents 92.67% (139) respondents are checking
reviews of product or seller, and 65.33% (98) respondents are doing shopping with a reputable
seller. Moreover, 86% (129) respondents are checking the refund policy, and 78.67% (118)
respondents are using trusted payment method to avoid fraud risk. In explaining this result, it
can be stated that most of the respondents are more like to check reviews of product or seller
to avoid fraud risk.

Page 45 of 74
Which of the following types of additional security and fraud protection services would you be
most likely to use?

Table 4.11: additional security

particular frequency Percentage

Identity theft 89 59.3%
protection
Fraud alert 89 59.3%
Password manager 42 28%
Total 220

Responses
Password manager
19%

Identity theft
protection
41% Identity theft protection
Fraud alert
Password manager

Fraud alert
40%

Figure 4.11: additional security

The above table 4.11 shows information about the types of additional security and fraud
protection services that respondents are most likely to use. It shows that the 59.3% (89)
respondents are more likely to use identity theft protection, these respondents are also like to
use fraud alert, but only 28% (42) respondents are like to use password manager as a additional
security and fraud protection. In explaining this result, it can be stated that most of the
respondents are more likely to use identity theft protection, and fraud alert.

Page 46 of 74
What types of risks that associated with online shopping?

Table 4.12 Risk associated

Particular Strongly Agree Neutral Disagree Highly Total Mean

agree disagree
The 67 65 14 3 1 150 4.2933
product
purchased
from
website
may not
receive as
expected
Online 36 62 43 8 1 150 3.8267
website
may misuse
personal
financial or
non-
financial
information
Possibility 43 56 45 5 1 150 3.9000
to receive
defective
product
Company 33 54 33 21 9 150 3.5400
may charge
more than
the amount
Delayed in 32 62 35 11 10 150 3.6333
delivery

Page 47 of 74
 10
11
Delayed in delivery 35
62
32
9
21
Company may charge more than the amount 33
54
33
1
5
Possibility to receive defective product 45
56
43
1
Online website may misuse personal financial or non- 8
43
financial information 62
36
1
The product purchased from website may not receive 3
14
as expected 65
67

0 10 20 30 40 50 60 70

Highly disagree Disagree Neutral Agree Strongly agree

Figure 4.12: Risk associated

In the above table 4.12 respondents were asked to rate which features they agree while
purchasing product, with 5 being ‘Strongly agree’ and 1 being ‘Strongly disagree’. From the
above figure 4.7 the ‘strongly agree’ feature is the product purchased from website may not
receive as expected with the score of 4.2933, while Possibility to receive defective product and
Online website may misuse personal financial or non-financial information with a mean score
of 3.9000, and 3.8267. Many respondents also think that delayed in delivery and company may
charge more than the amount is risk in online shopping with a mean score 3.6333, and 3.5400.
In explaining this result, it can be stated that most of the respondents are thinking that the
product purchased from website may not receive as expected is a risk.

Page 48 of 74
Have you ever had a negative experience as a result of shopping online?

Table 4.13: negative experience

Particular Frequency Percentage

Yes 116 77.3%
No 34 22.7%
Total 150 100%

RESPONSES

NO, 34

Yes, 116

Figure 4.13: negative experience

The given pie chart 4.13 shows the information about the respondents are having negative
experience or not. It shows that out of 150 respondents 77.3% (116) respondents are had a
negative experience while shopping from online, and on the other side. Apart from that 22.7%
(34) respondents are not had any negative experience from online shopping. In explaining this
result, it can be stated that most of the people have had negative experience while shopping
online.

Page 49 of 74
If yes, then what types of negative experience you had?

Table 4.14: types of negative experience

particular frequency percentage

Delayed delivery 61 52.6%
Got product in poor 49 42.2%
condition
Got wrong product 53 45.7%
Got damaged 45 38.8%
product
Not received product 23 19.8%
Payment issues 36 31%
Technical issues in 15 12.9%
website
Total 282

Responses

Technical issues in website 15

Payment issues 36

Not received product 23

Got damaged product 45

Got wrong product 53

Got product in poor condition 49

Delayed in delivery 61

0 10 20 30 40 50 60 70

Responses

Figure 4.14: types of negative experience

Page 50 of 74
The above chart 4.14 shows the information about respondents who have had a negative
experience. It shows that out of 150 respondents 52.6% (61) respondents who got delayed
delivery, also 45.7% (53) respondents who hot wrong product. Moreover, 42.2% (49)
respondents who got their product in poor condition, and 38.8% (45) respondents who got
damaged product, also 31% (36) respondents who had a payment-issues while shopping. In
addition, 19.8% (23) respondents who did not get any product, and 12.9% (15) respondents
who got a technical-issues in website. In explaining this result, it can be stated that most of the
respondents got negative experience like delayed delivery.

Page 51 of 74
Gender

Table 4.15: Gender

Particular frequency percentage

Male 114 76%
Female 36 24%
Total 150 100%

Responses
Female
24%

Male
76%

Male Female

Figure 4.15: Gender

The above table 4.15 shows that information about gender of respondents. It shows that out of
150 respondents 114 are male and 36 respondents are female. It shows that 76% of respondents
are male and 24% respondents are female. Male respondents are higher than the female
respondents that who prefer online shopping.

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Age

Table 4.16: Age

Particular Frequency Percentage

18 to 30 years 133 88.7%
31 to 40 years 8 5.3%
41 to 50 years 7 4.7%
51 or above 2 1.3%
Total 150 100%

Responses
51 or above
41 to 50 years
31 to 40 years 5% 1%
5%

18 to 30 years
89%
18 to 30 years 31 to 40 years 41 to 50 years 51 or above

Figure 4.16: Age

The above pie chart 4.16 shows that information about age. It shows that out of 150 respondent
133 (88.7%) of people are in the age group of 18 to 30 years, while 5.3% (8) of respondent are
in the age group of 31 to 40 years. Moreover, 4.7% (7) respondents are in the age group of 41
to 50 years, and 1.3% (2) respondents are above 51 years. 18 to 30 years age group people are
more likely to use online shopping.

Page 53 of 74
Highest education

Table 4.17: Education

Particular Frequency Percentage

Graduate 49 32.7%
Undergraduate 74 49.3%
Postgraduate 20 13.3%
Professional 6 4%
12th pass 1 0.7%
Total 150 100%

RESPONSES
Professional,12th
6 pass, 1
Postgraduate, 20
Graduate, 49

Undergraduate, 74

Figure 4.17: Education

The above pie chart 4.17 shows information about education. It shows that the out of 150
respondents 49.3% (74) respondents are persuing their undergraduate degree. Moreover, 32.7%
(49) respondents done their graduate degree, and 13.2% (20) respondents are doing their
postgraduate degree. In addition, 4% (6) respondents are done their professional degree, and
0.7% (1) respondent is doing his 12th. In explaining this result, it can be stated that
undergraduate students are most likely to shop from online.

Page 54 of 74
Your occupation

Table 4.18: Occupation

Particular frequency percentage

Student 111 74%
Business 11 7.3%
Employed 22 14.7%
Unemployed 2 1.3%
Housewife 3 2%
Retired 1 0.7%
total 150 100%

Responses
Retired
Housewife
Unemployed
1% 2% 1%
Employed
15%

Business
7%

Student
74%

Student Business Employed Unemployed Housewife Retired

Figure 4.18: Occupation

The above table 4.18 provides occupational information of the respondents. It shows that out
of 150 respondents 74% (111) are students, and 7.3% (11) respondents are doing their business.
Moreover, 14.7% (22) respondents are employed and on the other side 1.3% (2) respondents
are unemployed. In addition, 2% (3) respondents are housewife, and 0.7% (1) respondent is
retired. We can make an interpretation that students are more likely to use online shopping
rather than others.

Page 55 of 74
Findings

Page 56 of 74
Findings
Objectives Question number Findings
1. To examine the Q-1 How often do you make Most of the respondents are
consumer attitude purchases from online?
purchasing from online in
towards e-commerce
with special once in a month.
reference to risk
Q-2 Which website do you Majority of the respondents
like to use to shop online? are like to use Amazon to do
shopping.
Q-3 Which types of products Most of the people are
do you usually buy from an buying cloths from online.
e-commerce website?

Q-4 Do you agree with Most of the respondents are

providing personal agree with providing
information during online personal information during
transaction? online transaction.

Q-5 Do you think purchasing Most of the respondents are

online product is risky? thinking that online shopping
is risky.
Q-6 What concerns do you Most of the respondents have
have when shopping online? a concern about quality of
product in online shopping.
2. To study about Most of the respondents are
consumers’ Q-7 What types of problems highly agree with the delayed
perceived risk in have you encountered when delivery.
online shopping. shopping online?

Q-13 Have you ever had a Most of the people have had
negative experience as a negative experience while
result of shopping online? shopping online.

Q-14 If yes, then what types Most of the respondents got

of negative experience you negative experience like
had? delayed delivery.

3. To identify factors Most of the respondents

affecting perceived Q-8 How important is it to believe that it is very
risk involved in you to have a clear and easy- important to have a clear and
online shopping. to-understand return policy easy to understand return
when shopping online? policy.

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 Q-12 What types of risks that Most of the respondents are
associated with online thinking that the product
shopping? purchased from website may
not receive as expected is a
risk.
4. To know the opinion The majority of respondents
regarding various Q-9 Which of the following are doing shopping on secure
ways to avoid certain steps do you take to avoid network to avoid risk.
risks associated with risks when shopping online?
e-commerce.
Q-10 Which of the following Most of the respondents are
steps do you take to avoid more like to check reviews of
fraud risk? product or seller to avoid
fraud risk.
Q-11 Which of the following Most of the respondents are
types of additional security more likely to use identity
and fraud protection services theft protection and fraud
would you be most likely to alert.
use?

Q-15 Gender Male respondents are higher

than female respondents who
prefer online shopping.
Q-16 Age 18 to 30 years age group
people are most likely to buy
products from online.
Q-17 Highest education Undergraduate students are
most likely to shop from
online.
Q-18 Occupation Students are more likely to
use online shopping.

Page 58 of 74
conclusion

Page 59 of 74
The research study about consumer attitude towards e-commerce with special reference to risk,
also include preference of shopping. In online shopping there are many risks that affect the
consumer. The study found that major six types of perceived risk involved in online shopping
like functional risk, physical risk, financial risk, social risk, time risk. In this study, I found
that majority of respondents purchase product from online by once in a month but, also, they
had a negative experience with online shopping. The study found that perceived risk affects
the customers while buying from unfamiliar website. If customer purchase product with a
secure network and using reputable website, also they may check reviews of product or seller,
then they may not face fraud or risk. Online purchases need to use theft protection, and fraud
alert for their security.

Page 60 of 74
BIBLIOGRAPHY

Page 61 of 74
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Page 64 of 74
ANNEXURE

Page 65 of 74
questionnaire
A study on consumer attitude towards e-commerce with special
reference to risk.
Hello, myself Varshil Khokhar, a TYBBA student at SDJ International college.
I'm conducting a survey on "A study on consumer attitude towards e-commerce with special
reference to risk".
It would be great if you spare some time and complete this survey.
I assure you that the information given will be kept strictly confidential and will be used for
academic purposes only.

Thank you so much for your time and efforts😊.

1. How often do you make purchases from online?

o Once in a month
o Twice in a month
o Multiple times in a month
2. Which website do you like to use to shop online?
 Flipkart
 Ajio
 Amazon
 Meesho
 Myntra

3. Which type of product do you usually buy from an e-commerce website?

Yes No

Clothing o o
Electronic o o
Footwear o o
Cosmetics o o
Page 66 of 74
4. Do you agree with providing personal information during online transaction?

o Highly agree
o Agree
o Neutral
o Disagree
o Highly disagree
5. Do you think purchasing online products is risky?

o Yes
o No
6. What concerns do you have when shopping online?

Yes No

o o
Security of personal
information

o o
Possibility of fraud or
scam

o o
Quality of product

o o
Shipping and delivery
times

o o
Difficulty in
returning product

Page 67 of 74
7. What types of problems have you encountered when shopping online?

Highly Agree Neutral Disagree Highly

agree disagree

o o o o o
Delayed
delivery

o o o o o
Wrong
product
delivery

o o o o o
Product
received in
poor
condition

o o o o o
Difficulty
in returning
product

o o o o o
Damaged
product

8. How important is it to you to have a clear and easy-to-understand return policy when
shopping online?

o Very important
o Somewhat important
o Not very important
o Not at all
9. Which of the following steps do you take to avoid risks when shopping online?
 Using reputable websites
 Only shopping on secure network
 Using two-factor authentification
 Using a virtual private network (VPN)

Page 68 of 74
10. Which of the following steps do you take to avoid fraud risk?

Yes No

o o
Checking reviews of
products or sellers

o o
Only shopping with a
reputable seller

o o
Checking the refund policy

o o
Using a trusted payment
method

11. Which of the following types of additional security and fraud protection services would
you be most likely to use?
 Identity theft protection
 Fraud alert
 Password manager

Page 69 of 74
12. What types of risks that associated with online shopping?
Strongly agree Neutral disagree Strongly
agree disagree

o o o o o
The product
purchased
from website
may not
receive as
expected

o o o o o
Online
website may
misuse
personal
financial or
non-
financial
information

o o o o o
Possibility to
receive
defective
product

o o o o o
Company
may charge
more than
the amount

o o o o o
Delayed in
delivery

13. Have you ever had a negative experience as a result of shopping online?

o Yes
o No
14. If yes, then what types of negative experience you had?
 Delayed delivery
 Got product in poor condition
 Got wrong product
 Got damaged product
 Not received product
 Payment issues

Page 70 of 74
15. What is your gender?

o Male
o Female

16. Age:

o 18 to 30 years
o 31 to 40 years
o 41 to 50 years
o 51 or above
17. Education:

o Graduate
o Undergraduate
o Postgraduate
o Professional
o Other________
18. Occupation:

o Student
o Business
o Employed
o Unemployed
o Housewife
o Retired

Page 71 of 74
Code book
Number Variable name Question Coding instruction
number
1 Frequency of purchase 1 1= once in a month
2= twice in a month
3= multiple times in a month
2 Website Preference 2 1= Flipkart
2= Ajio
3= Amazon
4= Meesho
5= Myntra
3 Product preference 3 1= Yes
2= No
4 personal information 4 1= Highly disagree
2= Disagree
3= Neutral
4= Agree
5= Highly agree
5 Online product is risky 5 1= Yes
2= No
6 Concerns 6 1= Yes
2= No
7 Encountered problem 7
1.Delayed delivery 1= Highly disagree
2= Disagree
3= Neutral
4= Agree
5= Highly agree
2. Wrong product 1= Highly disagree
2= disagree
3= Neutral
4= Agree
5= Highly agree
3. poor condition 1= Highly disagree
2= Disagree
3= Neutral
4= Agree
5= Highly agree
4. difficulty in return 1= Highly disagree
2= Disagree
3= Neutral
4= Agree
5= Highly agree
5. damaged product 1= Highly disagree
2= Disagree
3= Neutral
4= Agree

Page 72 of 74
 5= Highly agree

8 Clear and easy-to- 8 1= Not at all

understand return
policy
2= not very important
3= Somewhat important
4= very important
9 Steps to avoid risk 9 1= Using reputable websites
2= Only shopping on secure
network
3= Using two-factor
authentification
4= Using a virtual private network
(VPN)
10 Steps to avoid fraud 10 1= Yes
risk
2= No
11 Additional security 11 1= Identity theft protection
and fraud protection
2= Fraud alert
3= Password manager
12 Risks associated with 12 1= Strongly disagree
online shopping
2= Disagree
3= Neutral
4= Agree
5= Strongly agree
13 Negative experience 13 1= Yes
2=No
14 Types of negative 14 1= Delayed delivery
experience
2= Got product in poor condition

3= Got a wrong product

4= Got a damaged product

5= Not received product

6= Payment issues
7= Technical issues in the website

15 Gender 15 1= Male
2= Female
16 Age 16 1= 18 to 30 years
2= 31 to 40 years
3= 41 to 50 years
4= 51 or above
17 Education 17 1= Graduate

Page 73 of 74
 2= Undergraduate
3= Postgraduate
4= professional
5= 12th pass
18 Occupation 18 1= Student
2= Business
3= Employed
4= Unemployed
5= Housewife
6= Retired

Page 74 of 74