ISSN 1818–6238 Daffodil International University Journal of Business and Economics, Vol. 9, No. 2, PP. 163-170, December, 2015 163 A Study on Shoppers’ Preference for Online Shopping D Uday Kumar 1 Sheelan Misra 2 Abstract: E-commerce is buzzing word in today’s generation where a rigorous study required last one decade there is an exponential growth in e-commerce industry so the aim of the present study is to analyze the various factors that influence the shoppers to prefer online shopping. Study was undertaken at two tier cities in Andhra Pradesh i.e. Rajahmundry, Vijayawada & Tirupati cities. Exploratory Factor analysis is used as a statistical tool for the study. The data is collected primarily from a sample of 1200 from the shoppers. The findings show that there are 4 major factors with Eigen value greater than 1.0. The factors with highest scores are Economic, product, convenience and credibility that influence more on shoppers. Keywords: E-commerce, Factors, Eigen values and online shopping. Introduction Internet and e-commerce had followed, inevitably, a similar road since these concepts cannot be mutually excluded one from the other one. Innovations in the field of Internet technologies have had instant repercussions in the online business world. From a simple usage having a regional origin located in the United States of America, the phenomenon of electronic commerce has seen a rapid spread globally, according to the innovations related to Internet technologies. The projection of electronic commerce is in perfect accordance with the development stage of the real economy. Review of literature Electronic commerce (e-commerce) is the buying and selling, marketing of products and services, and providing information via computer networks (O'Brien & maracas, 2006). Many companies are now engaged in or sponsor three basic categories of e-commerce applications, i.e., e-commerce business-to-consumer, business-to-business, and consumer-to-consumer (O'Brien, 2005). Lee et al. (2011) conducted a study in Malaysia in 2010; the instrument used was questionnaire survey using seven Likert scale. Data collection method used was a snowball effect for 102 respondents. Through regression and correlation analysis, it was found that perceived value, perceived ease of use, perceived usefulness, firm's reputation, privacy, trust, reliability and functionality have a significant linear relationship to online repurchase intentions. 1 Assistant Professor, Department of Management studies, New Horizon College of Engineering, Outer Ring Road, Panathur Post, Bangalore-560103, Mobile No.9945323788, Email: dindu.uday@gmail.com 2 Professor & HOD, Department of Management studies, New Horizon College of Engineering, Outer Ring Road, Panathur Post, Bangalore-560103, Mobile No.9900911649, Email: sheelan@gmail.com