A

Report
of

“A STUDY ON CUSTOMER SATISFACTION IN ONLINE SHOPPING”

Project Based Learning-IInd SEM
Submitted to
SAGE University, Bhopal
For the partial fulfilment of
Bachelors of Business Administration
Semester – IIND (2023-26)

Submitted By: - Guided by: -

 ARYAN KUMAR DR. Swati Dayal Lalchandani
 ADITYA RAI
Senior Faculty SUNSTONE
 PALAK KAUSHIK
School Of Management

School of Management, SAGE University, Bhopal

Sahara Bypass Road Katara Hills, Extension, Bhopal, Madhya Pradesh, 462022
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 Declaration

 I ARYAN KUMAR, ADITYA RAI, PALAK KAUSHIK student of School of

Management, SAGE University, Bhopal (M.P.) do hereby declare that Project Based
Learning –II entitled “A STUDY ON CUSTOMER SATISFACTION IN ONLINE
SHOPPING” is an original work and has not been submitted anywhere in the quest of any
degree.

Date: ………………… Submitted By: -

Place: ………………...
 ARYAN KUMAR
 ADITYA RAI
 PALAK KAUSHIK

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 Certificate

This is to certify that I ARYAN KUMAR, ADITYA RAI, PALAK KAUSHIK, are the students
of BBA SUNSTONE IInd SEM. They have prepared Project Based Learning – II under my
guidance entitled “A STUDY ON CUSTOMER SATISFACTION IN ONLINE SHOPPING”

Name of Supervisors: -
DR. Swati Dayal Lalchandani

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 Acknowledgements

We express our sincere thanks to our project guide DR. Swati Dayal Lalchandani for guiding us
right for the inception till the successful completion of the project. We sincerely acknowledge her
for extending her valuable guidance, critical review of the project report and above all the moral
support she had provided us in all the stages of this project.

We would also like to thank our family and friends for supporting and providing us the good
environment for preparing this Report.

Date: …………………
Submitted by
Place: ………………...
 ARYAN KUMAR
 ADITYA RAI
 PALAK KAUSHIK

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 Table of Contents

S.NO CONTENTS PAGE NO.

1 Title 1

2 Introduction 6

3 Literature Review 7

4 Objective of Study 8

5 Research Methodology 9

6 Conclusion 11

7 References 12

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 INTRODUCTION

Customer satisfaction in online shopping is a fundamental aspect of the modern retail

experience. It revolves around ensuring that customers feel happy, fulfilled, and valued
throughout their online shopping journey. Firstly, convenience plays a pivotal role in customer
satisfaction. Online shopping offers the convenience of browsing and purchasing products from
the comfort of one's home or on-the-go, eliminating the need to visit physical stores and saving
valuable time. Variety and selection are also significant contributors to customer satisfaction.
Online platforms provide a vast array of products from diverse categories, catering to the varied
tastes and preferences of customers. This extensive selection allows shoppers to find precisely
what they’re looking for, contributing to a positive shopping experience. Moreover, the quality
of products and the accuracy of product descriptions are crucial factors influencing customer
satisfaction. Customers expect the products they receive to match the descriptions provided
online and to meet their quality standards. Clear and detailed product information, including
images and specifications, helps customers make informed purchasing decisions and reduces the
likelihood of dissatisfaction. Timely delivery and reliable shipping are essential components of
the online shopping experience. Customers anticipate prompt delivery of their orders within the
specified timeframe. Delays or issues with delivery can lead to frustration and negatively impact
customer satisfaction. In conclusion, customer satisfaction in online shopping is achieved through
a combination of convenience, variety, product quality, timely delivery, and excellent customer
service.

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 Literature Review

In the literature review, several studies were examined to understand different aspects of
online shopping and customer satisfaction.

 Pervaiz Ali et al. (2010) analyzed customer satisfaction and loyalty in Norway. They
found that most Norwegians are satisfied with online shopping, but less than half stay loyal
to specific sellers. They emphasized that customer loyalty is achieved through satisfaction,
which can be enhanced by providing detailed product information, superior customer
service, and timely delivery.

 Mustafa (2011) explored factors influencing customer satisfaction with online shopping,
highlighting user interface quality, information quality, perceived quality, and privacy as
major influencers.

 Muruganantham S et. Al (2017) analyzed customer satisfaction towards online

shopping in Coimbatore city, finding offers, best prices, good products, and ease of
shopping as major influencers.

 Sathiya Bama et al. (2016) associated customer satisfaction with online shopping with
area of residence, age, gender, occupation, and recent purchase cost.

 Ganapathi S. (2018) examined customers’ satisfaction towards electronic shopping in the

Tiruchirappalli district, concluding that age, gender, and educational qualification
significantly associate with satisfaction, with 24-hour service being a key factor.

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 OBJECTIVES OF THE STUDY

 To investigate the preferred product categories of online shoppers.

 To identify the factors affecting customer satisfaction during shopping online.

 To identify the problems faced by customers when shopping online.

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 OBJECTIVES
1. To investigate the preferred product categories of online shoppers.

Understanding what online shoppers like to buy is crucial for online stores to offer the right
products and improve their sales. These days, the most popular categories among online buyers are
electronics, fashion, home goods, health and beauty products, and subscription services. Each of these
categories has unique reasons for its popularity, influenced by technology, social trends, and lifestyle
changes. Electronics are a top choice for many online shoppers. Items like smartphones, laptops,
tablets, and smart home devices are in high demand. People love the latest gadgets and enjoy the
convenience of shopping for them online. They can easily compare prices, read reviews, and find the
best deals without leaving their homes. The rapid pace of technological advancements means there's
always a new product to catch the consumer's eye, making electronics a consistently popular
category. Fashion is another favorite among online shoppers. Clothing, shoes, and accessories are
bought frequently, driven by the vast selection available on the internet. Online stores offer a wide
range of styles and brands, catering to different tastes and budgets. Social media also plays a
significant role, with influencers and celebrities showcasing the latest trends, encouraging people to
shop online. Additionally, the ease of returning items if they don’t fit or meet expectations makes
online fashion shopping even more appealing. Home goods have seen a significant rise in popularity,
especially after the global pandemic. As people spend more time at home, they are more interested in
making their living spaces comfortable and stylish. Furniture, kitchen tools, and decorative items are
highly sought after. Online shopping for home goods is convenient as it allows people to browse
through various options and find pieces that fit their style and needs without the hassle of visiting
multiple physical stores. Health and beauty products are also very popular online. From skincare and
makeup to vitamins and fitness equipment, people are increasingly focusing on their health and well-
being. Online shopping provides access to a vast array of products that might not be available locally.
It also offers the convenience of home delivery and the ability to read reviews and watch tutorials on
how to use the products effectively. Subscription services are another growing trend. These include
meal kits, streaming services, beauty boxes, and even curated book deliveries. They offer
convenience, personalization, and a surprise element that many consumers find exciting.
Subscriptions often come with the benefit of discovering new products or content that shoppers might
not have picked out themselves. For online stores, understanding these trends is essential. It helps
them stock the right products, improve the shopping experience, and create effective marketing
strategies to attract more customers. By staying in tune with what online shoppers prefer, stores can
better meet customer needs and continue to grow in the competitive world of online retail.

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2. To identify the factors affecting customer satisfaction during shopping online.

Identifying the factors that affect customer satisfaction during online shopping is crucial for
businesses to ensure a positive shopping experience and foster customer loyalty. Various factors
contribute to how satisfied customers feel when they shop online, including website usability,
product variety and quality, pricing, delivery and returns, customer service, and security. First, the
usability of the website plays a significant role in customer satisfaction. A website that is easy to
navigate, visually appealing, and responsive can make the shopping process enjoyable. Clear product
categories, detailed descriptions, high-quality images, and an efficient search function help
customers find what they are looking for quickly and easily. A smooth and straightforward checkout
process, with multiple payment options, also enhances satisfaction, as it reduces the chances of
frustration during the final steps of purchasing. Product variety and quality are also essential.
Customers are more likely to be satisfied if they can find a wide range of products to choose from,
meeting various preferences and budgets. High-quality products that match the descriptions and
images provided on the website build trust and confidence in the online store. Detailed customer
reviews and ratings can further aid in decision-making, allowing shoppers to feel more confident
about their purchases. Pricing is another crucial factor. Competitive prices, special discounts, and
promotions can attract and retain customers. Clear pricing without hidden fees ensures transparency,
which customers appreciate. Additionally, loyalty programs and rewards can enhance customer
satisfaction by making shoppers feel valued and encouraging repeat purchases. The delivery and
return process significantly impacts customer satisfaction. Fast, reliable, and cost-effective shipping
options are highly valued. Customers appreciate being able to track their orders and receive updates
on the delivery status. Easy and hassle-free return policies are equally important, as they provide
reassurance that customers can return or exchange products if they are not satisfied. Clear
instructions and prompt refunds or replacements contribute to a positive experience. Customer
service is a critical factor in shaping customer satisfaction. Responsive, helpful, and friendly
customer support can resolve issues quickly and efficiently, enhancing the overall shopping
experience. In summary, several factors influence customer satisfaction during online shopping. An
easy-to-use website, diverse and high-quality products, competitive pricing, efficient delivery and
return processes, excellent customer service, and strong security measures all contribute to a positive
shopping experience. Online stores that focus on these aspects are more likely to meet and exceed
customer expectations, leading to higher satisfaction and increased loyalty. By understanding and
addressing these factors, businesses can create a shopping environment that not only attracts
customers but also encourages them to return for future purchases.

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3. To identify the problems faced by customers when shopping online.

Understanding the problems faced by customers when shopping online is crucial for businesses to
improve their services and enhance the overall shopping experience. Several common issues can
frustrate online shoppers, including website usability, product quality and representation, payment
security, delivery issues, return difficulties, and customer service challenges. First, website usability
can be a significant problem. If a website is difficult to navigate, loads slowly, or is not mobile-
friendly, customers can become frustrated and may abandon their shopping carts. Poorly designed
websites with confusing layouts, broken links, and incomplete product information make it hard for
customers to find and buy what they want. Another common problem is the discrepancy between
product quality and representation. Customers often rely on images and descriptions to make their
purchasing decisions. When products arrive and do not match the online descriptions or images, it
leads to disappointment and distrust. Inaccurate product descriptions, low-quality images, and lack
of detailed information can mislead customers, resulting in dissatisfaction. Payment security is also a
major concern for online shoppers. Fear of fraud and data breaches can make customers hesitant to
enter their credit card information on a website. If a site does not have clear security measures, such
as SSL certificates or secure payment gateways, customers may feel unsafe. Even minor glitches
during the payment process, like errors or timeouts, can cause significant anxiety and lead to
abandoned carts. Delivery issues are another major problem. Delayed deliveries, lost packages, and
high shipping costs can all negatively impact the online shopping experience. Customers expect
timely and reliable delivery services. When there are delays, or if packages arrive damaged, it leads
to frustration. Additionally, high shipping costs or lack of international shipping options can deter
customers from completing their purchases. Returning products can be a significant hassle for online
shoppers. Complicated return policies, high return shipping costs, and slow refund processes can
discourage customers from making future purchases. When issues arise, such as wrong or defective
products, customers expect quick and effective resolution. These problems can disrupt the shopping
experience and cause customers to lose patience, leading them to abandon their carts and shop
elsewhere. In conclusion, several problems can affect customer satisfaction when shopping online.
Issues with website usability, product quality, payment security, delivery, returns, and customer
service can all create a frustrating shopping experience. By understanding and addressing these
common problems, online businesses can improve their services, build trust with their customers,
and ensure a smoother, more enjoyable shopping experience. Addressing these issues proactively
can lead to increased customer satisfaction and loyalty, helping businesses thrive in the competitive
online market.

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 Research Methodology

SECONDARY SOURCE
▶ Secondary research is a research method that uses data that was collected by someone
else. In other words, whenever you conduct research using data that already exists, you are
conducting secondary research.

• Secondary research can be qualitative or quantitative in nature. It often uses data

gathered from published peer-reviewed papers, meta-analyses, or government or private
sector databases and datasets.

 Types of secondary research

▶ Secondary research can take many forms, but the most common types are: -
• Statistical analysis
• Literature reviews
• Case studies
• Content analysis

 Statistical analysis
 There is ample data available online from a variety of sources, often in the form of datasets.
These datasets are often open-source or downloadable at a low cost, and are ideal for
conducting statistical analyses such as hypothesis testing or regression analysis.

 Literature reviews
 A literature review is a survey of preexisting scholarly sources on your topic. It provides
an overview of current knowledge, allowing you to identify relevant themes, debates, and
gaps in the research you analyze. You can later apply these to your own work, or use them
as a jumping-off point to conduct primary research of your own.

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  Structured much like a regular academic paper (with a clear introduction, body, and
conclusion), a literature review is a great way to evaluate the current state of research and
demonstrate your knowledge of the scholarly debates around your topic.

 Case study: -

 A case study is a detailed study of a specific subject. It =36is usually qualitative in nature
and can focus on a person, group, place, event, organization, or phenomenon. A case study
is a great way to utilize existing research to gain concrete, contextual, and in-depth
knowledge about your real-world subject.

 Content analysis: -

 Content analysis is a research method that studies patterns in recorded communication by

utilizing existing texts. It can be either quantitative or qualitative in nature, depending on
whether you choose to analyze countable or measurable patterns, or more interpretive ones.

RESEARCH BASED ON SECONDARY RESEARCH:-

1- GOOGLE

2- QUESTIONPRO

3- ARTICLES

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 Conclusion

customer satisfaction in online shopping is the cornerstone of success for e-commerce businesses.
It's not merely about completing transactions but about creating positive and memorable
experiences that keep customers coming back. customer satisfaction in online shopping is not a
destination but a journey. By prioritizing customer needs, fostering trust, delivering exceptional
service, and embracing innovation, online retailers can cultivate lasting relationships with their
customers and thrive in the competitive e-commerce landscape.

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 References

 Pervaiz Ali, Sudha Sankaran, and Peter Stevin. Online shopping customer satisfaction and loyalty
in Norway. MBA dissertation. Blekinge: Tekniska Hogslola BTH. (2010).

 Mustafa I. Eid. Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi
Arabia, Journal of electronic commerce research 12(1), 2011, (78-93.)

 Muruganantham S, Nandhini S, Nivetha B and Nandhini A. A study of consumer satisfaction

towards online shopping with special reference to Coimbatore City International Journal of
Applied Research, 3(12), 2017, 171-174

 Sathiya Bama, Ragaprabha. Satisfaction on Online Shopping A Study with Special Reference to
Pollachi Taluk, International Journal of Multidisciplinary Research and Modern Education, 2 (1),
2016, 90-94.

 Ganapathi, S. Customer Satisfaction towards Electronic Shopping with Reference to

Tiruchirappalli District. International Journal of Management and Social Sciences (IJMSS), 8(1.1),
2018, 23-26.

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