PERCEIVED RISK AND THEIR INFLUENCES ON ONLINE SHOPPING

Major Project Report

Submitted for the partial fulfillment of the requirement for the award

Of

Master in Business Administration

Submitted by: Under the Guidence
Kamal Kumar Dr. Vibhuti Tripathi
2012MB35

School of Management Studies
Motilal Nehru National Institute of Technology
Allahabad – 211004

May, 2014
Introduction
Online Shopping
There are many factors that point toward the potential for rapid growth of online shopping in India. In terms of education, India annually produces 2 million college graduates including approximately 200,000 engineers and 300,000 technically qualified graduates. The government of India has been heavily promoting investment in the telecom sector in recent years with the number of telephones increasing from 55 million in 2003 to 621 million in 2010. During the same period, broadband subscribers grew from .2 million to 8.8 million. Penetration of the internet, however, is comparatively lower at 6.9 percent of the population in 2009 compared to the world average of 26.8 percent (Internet World Stats, 2010), pointing to growth potential in the Indian market. Electronic payment in India is also steadily increasing thanks to a large young population with growing disposable incomes.
There is evidence that the current economic crisis encourages online shopping as more and more Indian shoppers are motivated to compare prices among retailers (Ravichandran, 2009). Another factor leading to growth in online shopping is the joint initiative between a number of state owned banks and the Indian Railways to passengers to transact ticket purchases online. Online shopping growth also overcomes weaknesses in the country's retail supply chain (Nair, 2006). There is also evidence that online transactions are increasing in the smaller