1420. e-retailing - growing popularity and perception of indian customers

7/29/2019 1420. E-retailing - Growing Popularity and Perception of Indian Customers

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A WINTER PROJECT REPORT

ON

E-RETAILING GROWING POPULARITY AND PERCEPTION OF

INDIAN CUSTOMERS

A report submitted to Accman Institute of Management,Greater Noida as a mandatory part of PGDM curriculum

Submitted To:Submitted by:

MS. ANJALI SHARMA AKSHAT KUMARSRIVASTAVA

Faculty Guide PGDM (Retail)(2009-11)

Roll No- 20003

ACCMAN INSTITUTE OF MANAGEMENT


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Greater Noida

ACKNOWLEDGEMENT

I am grateful to Ms. Anjali Sharma, Faculty for Retail Management, Accman

Institute of Management, Greater Noida for providing her guidance in completing

my report related to

E-RETAILING GROWING POPULARITY AND PERCEPTION OF INDIAN

CUSTOMERS.

I am also grateful to Accman Institute for providing me such a platform which

helped me in horning my research skills and I am sure that this study will help me

in my future.

AKSHAT KUMAR SRIVASTAVA


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CONTENTS

S. No. Chapter Name

1 Introduction

2 Literature Review

3 Problem Statement

4 Methodology

5 Results & Discussions

6 Suggestions & Conclusion

Annexure

References


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ABSTRACT

The usage of internet in India is only 4% of the total population. This is also getting increased day

by day as the costs of computers are decreasing and net penetration is increasing. The cost of

internet usage is also getting lower, with good competition among the providers. Wi-

Fi & Wimax is also getting tested in Bangalore and other cities in India. This will increase the

usage as it goes more on wireless internet. Indians are proving every time that they can beat the

world when it comes to figures of online shopping. More and more Indians are going to online

shopping and the frequency of Indias online buying is crossing the overall global averages.

As the Indian retail market is witnessing a revolution after 100% FDI in retail sector. The growth of

internet has changed the traditional retail format to virtual retailer and forced the existing retailers to

consider e-tailing model of retailing as well. A large number of customers use internet for shopping

purposes but there are varied reasons for this. I will try to find out the important factors that drive a

customer to purchase online and also whether there is a wide gap in the perception of customers and

reality in the e-tailing industry.


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INTRODUCTION

The growth, integration, and sophistication of information technology and communications is

changing our society and economy. Today, computers and other electronic devices increasingly

communicate and interact directly with other devices over a variety of networks, such as the Internet.

Consumers and businesses have been particularly quick to recognize the potential and realize the

benefits of adopting new computer-enabled networks. Consumers now routinely use computer

networks to identify sellers, evaluate products and services, compare prices, and exert market leverage.

Businesses use networks even more extensively to conduct and re-engineer production processes,

streamline procurement processes, reach new customers, and manage internal operations. This

electronic revolution in our economy is spurring additional investments in facilities, hardware,

software, services, and human capital. Ultimately, it may change the structure and performance of the

American economy as much as the introduction of the computer a generation ago.

While the burgeoning use of electronic devices in our economy is widely acknowledged and

discussed, it remains largely undefined and unrecognized in official economic statistics. The terms

Internet, electronic commerce, electronic business, and cyber trade are used often. However, they are

used interchangeably and with no common understanding of their scope or relationships. Establishing

terms that clearly and consistently describes our growing and dynamic networked economy is a critical

first step toward developing useful statistics about it. This paper presents definitions and concepts to

describe the electronic revolution taking place in our economy. They were developed by the Census

Bureau for discussion purposes, are based on reviews of available information and consultations with

interested professionals, and are intended to provide a frame of reference for developing useful official

statistical measures. The paper also describes Census Bureau related program plans for FY 2000

(October 1999 to September 2000) and concludes with a number of questions seeking interested

parties views and comments.


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ELECTRONIC ECONOMY IN PERSPECTIVE

Whatever definitions are used for the electronic revolution taking place in our economy, we must

recognize that these changes take place in a larger economic context. For example, global competition,

interest rates, laws and regulations, social concerns, industry traditions, and consumer preferences are

all part of the broader "environment" which can affect all business activities. Similarly, electronic and

non-electronic businesses share an infrastructure of available economic resources, including natural

resources, utilities, structures, equipment, telecommunication and other services, employees, and

workforce skills. While keeping this larger economic context in mind, the emphasis in this paper is to

describe and encourage understanding of the "electronic" portion of our overall economy.

It is useful to think of the electronic economy as having three primary components--supporting

infrastructure, electronic business processes (how business is conducted), and electronic commerce

transactions (buying and selling).. In addition, it is important to note that a common feature of both

electronic business processes and electronic commerce transactions is reliance on the use of computer-

mediated networks. It is reliance on the use of computer networks, and the benefits this can provide,

that is the "bottom line" difference between electronic and other kinds of business. This important

shared feature is also defined and discussed in following sections of this paper.

DEFINITIONS AND CONCEPTS

The three primary components of our electronic economy, and the feature shared by two of them, are

defined below. Each definition includes examples of its scope and content. The definitions are

intentionally broad to provide an inclusive framework for planning statistical measures, and to allow

flexibility to incorporate continuing changes in the electronic economy.


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E-business infrastructure is the share of total economic infrastructure used to support electronic

business processes and conduct electronic commerce transactions. It includes hardware, software,

telecommunication networks, support services, and human capital used in electronic business and

commerce. Examples of e-business infrastructure are:

Computers, routers, and other hardware

Satellite, wire, and optical communications and network channels

System and applications software

Support services, such as web site development and hosting, consulting, electronic payment,

and certification services.

Human capital, such as programmers.

Electronic business (e-business) is any process that a business organization conducts over a

computer-mediated network. Business organizations include any for-profit, governmental, or

nonprofit entity. Their processes include production-, customer-, and internal or management-focused

business processes. Examples of electronic business processes are:

Production- focused processes include procurement, ordering, automated stock replenishment,

payment processing and other electronic links with suppliers, as well as production control and

processes more directly related to the production process.

Customer-focused processes include marketing, electronic selling, processing of customers

orders and payments, and customer management and support

Internal or management-focused processes include automated employee services, training,

information sharing, video conferencing, and recruiting.

Electronic commerce (e-commerce) is any transaction completed over a computer-mediated

network that involves the transfer of ownership or rights to use goods or services. Transactions

occur within selected e-business processes (e.g., selling process) and are "completed" when agreement

is reached between the buyer and seller to transfer the ownership or rights to use goods or services.


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Completed transactions may have a zero price (e.g., a free software download). Examples of both e-

commerce and non e-commerce transactions are listed below.

Computer-mediated networks are electronically linked devices that communicate interactively

over network channels. Generally, both electronic devices will be computer-enabled, but at a

minimum at least one device must be computer-enabled as in the case of a typical telephone linking

with an computer-enabled interactive telephone system. Typically, the interactive link involves

minimal human intervention though someone activates the electronic devices, accesses the network,

and may even assist with the process or transaction. For example, many e-commerce businesses are

providing shoppers with the on-line capability of "chatting" with customer support representatives or

even speaking with them through the use of internet telephony software. Examples of devices and

networks are:

Linked electronic devices such as computers, personal digital assistants, WebTV,

Internet-enabled cellular phones and telephones linked with interactive telephone systems.

Networks such as the Internet, intranets, extranets, Electronic Data Interchange (EDI) networks,

and telecommunication networks. Networks may be either open or closed.

E-COMMERCE EXAMPLES

Examples of e-commerce transactions are:

An individual purchases a book on the Internet.

A government employee reserves a hotel room over the Internet.

A business calls a toll free number and orders a computer using the seller's interactive

telephone system.

A business buys office supplies on-line or through an electronic auction.

A retailer orders merchandise using an EDI network or a supplier's extranet.


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A manufacturing plant orders electronic components from another plant within the company

using the company's intranet.

An individual withdraws funds from an automatic teller machine (ATM).

Identifying e-commerce transactions often is not as straight forward as the previous examples may

make it appear. Some additional examples that demonstrate the complexity of implementing the

proposed definition are provided below.

A consumer visits a bookstore and inquires about the availability of an out-of-stock book. A

bookstore employee downloads a digital copy of the book and prints it along with cover. Not

an e-commerce retail transaction since agreement to purchase did not occur over an electronic

network. However, the right to access the digital archived copy is an e-commerce service

transaction.

Consumer uses Internet to research the purchase of a computer, but calls a toll free number and

places the order with an operator. Not an e-commerce transaction because agreement to

transfer ownership did not occur over computer-mediated network; neither telephone was

computer-enabled.

An individual visits a retail store and purchases merchandise not currently in stock from a

computer-enabled kiosk located inside the shop. An e-commerce transaction since agreement

occurred over computer-mediated networks. In contrast, the purchase of a pre-packaged music

CD from a computerized kiosk would not be considered an e-commerce transaction. If the

kiosk was network linked, the digital music was downloaded, and the CD was mastered within

the kiosk this would be an e-commerce transaction.


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DEFINITION ISSUES

This section of the research poses some questions associated with the proposed definitions presented

earlier. E-business is any process that a business organization conducts over a computer-mediated

network. E-commerce is any transaction completed over a computer-mediated network that involves

the transfer of ownership or rights to use goods or services. The definition includes both monetary and

non monetary transactions. Some transactions may have a zero price (for example, the download of

free software) while other transactions may be paid in-kind or through barter (portal pays for an e-

commerce consulting service by providing banner advertising).

We do not define transaction. Should we?

Since any e-commerce measure will focus on the value of transactions, not the quantity, should

we exclude free or zero priced e-commerce transactions from the definition?

Do you think barter or trade-in-kind is more prevalent in e-commerce transactions than in

traditional transactions? Is it reportable or measurable?

Do you find the e-commerce examples useful?

E-business infrastructure is the share of total economic infrastructure used to support processes

and conduct e-commerce transactions. The definition includes hardware, software,

telecommunication networks, support services, and human capital along with associated examples.

Measuring the electronic infrastructure will be a daunting task. Since we have no short term plans to

begin measuring e-business infrastructure, we have not focused much attention on it to date, but will

begin focusing on it during this coming year.

Is the e-business infrastructure separable from the broader economic infrastructure?

What are the priority components of infrastructure that we should focus on?

Do you have specific examples that would clarify what to include in each component?


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Should human capital be included in the e-business infrastructure? Is it separable?

Computer-mediated networks are electronically linked devices that communicate interactively

over network channels. Network channels include the Internet, intranets within organizations,

extranets and Electronic Data Interchange networks linking trading partners, and telecommunication

networks.

Do you agree with the decision to include open and closed networks?

Have we excluded other important examples of networks?

Electronic linked devices include computers, personal digital assistants, WebTV, Internet-enabled

phones, and interactive telephone systems. While the e-commerce examples also include a computer-

enabled kiosk and an ATM as linked electronic devices, in our definition we have chosen to go with a

short, rather than a long list of electronic devices to minimize possible reporting confusion.

Should the list of linked electronic devices include all possible devices or focus only on the

most important devices?

The definition and one of the examples considers a consumer using a telephone linked to an

interactive telephone system with no human operator to be a computer-mediated network. Do

you agree?

Fax machines, while clearly electronic devices that can link over network channels, were

excluded because they do not communicate interactively. Do you agree with their exclusion

and the rationale?

Electronic gas pumps often are linked interactively over network channels with other electronic

devices. The device, the electronic pump, can be activated in a number of different ways. The

purchaser may "swipe" a credit card, wave Speed-Pass, go to an outside station or inside the

store to pay by cash or credit card. Just as in the case of an ATM machine or a computer-


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enabled kiosk, once the device is activated the consumer can specify the transaction (regular or

premium gasoline) and complete the transaction. The electronic pumps also support a number

of E-business processes including tracking sales and gallons sold, with links to automated

inventory replenishment systems to name a few. The functionality embedded in pumps is

expected to grow. For example, BP Amoco PLC is planning to introduce even more

sophisticated pumps that will include Web browsers and Windows CE operating system that

will even permit the gas purchaser to order fast food at the pump (WSJ 8/17/99). Would you

consider the sales of gasoline through electronic pumps as an e-commerce transaction? Why?


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ELECTRONIC ECONOMY

Electronic or Internet economy as having three primary components:

Electronic Commerce (e-Commerce) as defined by the U.S. Census Bureau.

Any transaction completed over a computer-mediated network that transfers ownership of, or rights to

use, goods or services. The value of goods and services sold on-line. The term on-line includes the

use of the Internet, Intranet, and Extranet, as well as proprietary information that runs over systems

such as Electronic Data Interchanges (EDI) networks.

Electronic business supporting infrastructure

The economic infrastructure that is used to support electronic business processes and conduct

electronic commerce transactions. It includes hardware, software, telecommunication networks,

support services, and human capital used in electronic business and commerce.

Electronic business processes

Processes that a business organization conducts over a computer-mediated network. Business

organizations include any for-profit, governmental, or nonprofit entity. Examples of on-line e-business

processes include the following:

Purchasing

Selling

Vendor-managed inventory

Production management

Logistics


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Communication and Support Services such as on-line training and recruiting

Broad definition of e-business is:

The transformation of an organizations processes to deliver additional customer value through

the application of technologies, philosophies and computing paradigm of the new economy.

Electronic Business, or "E-business", may be defined broadly as any business process that relies on

an automated information system. Today, this is mostly done with Web-based technologies. The term

"e-business" was coined by Lou Gerstner, CEO of IBM.

Electronic business methods enable companies to link their internal and external data processing

systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better

satisfy the needs and expectations of their customers.

In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus

with an emphasis on the functions that occur using electronic capabilities, e-commerce to be a subset

of an overall e-business strategy. E-commerce seeks to add revenue streams using the Worldwide Web

or the Internet to build and enhance relationships with clients and partners and to improve efficiency

using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge

management systems.

E-business involves business processes spanning the entire value chain: electronic purchasing and

supply chain management, processing orders electronically, handling customer service, and

cooperating with business partners. Special technical standards for e-business facilitate the exchange

of data between companies. E-business software solutions allow the integration of intra and inter firm

business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or

some combination of these.
http://en.wikipedia.org/wiki/Automated_information_systemhttp://en.wikipedia.org/wiki/Lou_Gerstnerhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Worldwide_Webhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Empty_Vesselhttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Value_chainhttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Automated_information_systemhttp://en.wikipedia.org/wiki/Lou_Gerstnerhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Worldwide_Webhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Empty_Vesselhttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Knowledge_managementhttp://en.wikipedia.org/wiki/Value_chainhttp://en.wikipedia.org/wiki/Supply_chain_management


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E-business includes:

Applications can be divided into three categories:

1. Internal business systems:

customer relationship management

enterprise resource planning

document management systems

human resources management

2. Enterprise communication and collaboration

VoIP

content management system

e-mail

voice mail

Web conferencing

3. Electronic Commerce - Business-to-business electronic commerce or business-to-consumer

electronic commerce

internet shop

supply chain management

online marketing

E-BUSINESS MODELS

Organizations go online, they have to design which e-business models suit their business goals.

Business model is defended as the organization ofproduct, service and information flows, and the
http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Document_management_systemhttp://en.wikipedia.org/wiki/Human_resources_managementhttp://en.wikipedia.org/wiki/VoIPhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Voice_mailhttp://en.wikipedia.org/wiki/Web_conferencinghttp://en.wikipedia.org/wiki/Electronic_commercehttp://en.wikipedia.org/wiki/Business-to-business_electronic_commercehttp://en.wikipedia.org/wiki/Business-to-consumer_electronic_commercehttp://en.wikipedia.org/wiki/Business-to-consumer_electronic_commercehttp://en.wikipedia.org/wiki/Internet_shophttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Producthttp://en.wikipedia.org/wiki/Servicehttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Document_management_systemhttp://en.wikipedia.org/wiki/Human_resources_managementhttp://en.wikipedia.org/wiki/VoIPhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/E-mailhttp://en.wikipedia.org/wiki/Voice_mailhttp://en.wikipedia.org/wiki/Web_conferencinghttp://en.wikipedia.org/wiki/Electronic_commercehttp://en.wikipedia.org/wiki/Business-to-business_electronic_commercehttp://en.wikipedia.org/wiki/Business-to-consumer_electronic_commercehttp://en.wikipedia.org/wiki/Business-to-consumer_electronic_commercehttp://en.wikipedia.org/wiki/Internet_shophttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Online_marketinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Producthttp://en.wikipedia.org/wiki/Service


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sources of revenues and benefits forsuppliers and customers. The concept of E-business Model is the

same but used in the on-line presence. Currently, the most adopted e-business models is a list as

follows:

E-shops

E-procurement

E-malls

E-auctions

Virtual Communities

Collaboration Platforms

Third-party Marketplaces

Value-chain Integrators

Value-chain Service Providers

Information Brokerage

Types of Electronic business processes

Production processes

Customer-focused processes

Internal management processes

ELECTRONIC RETAILING
http://en.wikipedia.org/wiki/Suppliershttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/E-procurementhttp://en.wikipedia.org/w/index.php?title=E-malls&action=edithttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Virtual_Communitieshttp://en.wikipedia.org/wiki/Collaboration_platformhttp://en.wikipedia.org/wiki/Amazon_Marketplacehttp://en.wikipedia.org/w/index.php?title=Value-chain_Integrators&action=edithttp://en.wikipedia.org/wiki/Virtual_Value_Chainhttp://en.wikipedia.org/w/index.php?title=Information_Brokerage&action=edithttp://en.wikipedia.org/wiki/Suppliershttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/E-procurementhttp://en.wikipedia.org/w/index.php?title=E-malls&action=edithttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Virtual_Communitieshttp://en.wikipedia.org/wiki/Collaboration_platformhttp://en.wikipedia.org/wiki/Amazon_Marketplacehttp://en.wikipedia.org/w/index.php?title=Value-chain_Integrators&action=edithttp://en.wikipedia.org/wiki/Virtual_Value_Chainhttp://en.wikipedia.org/w/index.php?title=Information_Brokerage&action=edit


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E-Retailing is understood as the sale of products and/or services to consumers for their personal use

using methods that involve the use of the Internet for (parts of) the sales process.

E-Retailing Infrastructure

Computers, routers, and other hardware

Satellite, wire, and optical communications and network channels

System and applications software

Support services, such as web site development and hosting, consulting, electronic payment,

and certification services.

Human capital, such as programmers.

E-Tailing is emerging as an attractive alternative to the traditional brick-and-mortar retaining. Chances

are that they will co-exist profitably

Retailing as an attractive business was slowly emerging out of the shadows. Quite a few corporate

houses began looking at retailing as one way to corporate salvation. Notable among them are: the R P

Goenka group, the Tatas, the S Kumars, the Rajan Raheja group and the Ajay Piramal group. And

many more are still in the process of finalising their forays into retailing.

Considering the fact that the Internet is a new medium respondents shared to a relatively high degree

similar ideas regarding its development. Common themes resurface regarding how this new media

diverges from traditional communication channels and its implications. However, it may be noted that

the experts interviewed tended to emphasize different issues when answering the same questions.

Varying individual backgrounds and experiences go a long way in explaining this. But all agree that

electronic retailing has the potential to revolutionize the way both businesses and consumers interact.

The growing use of Internet in India provides a developing prospect for online shopping. If E-


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marketers know the factors affecting online Indian behaviour, and the relationships between these

factors and the type of online buyers, then they can further develop their marketing

strategies to convert potential customers into active ones, while retaining existent online

customers. This project is a part of study, and focuses on factors which online Indian buyers keep in

mind while shopping online. This research found that information, perceived usefulness, ease of

use; perceived enjoyment and security/privacy are the five dominant factors which

influence consumer perceptions of online purchasing.

We have developed a model indicating online shopping behaviour and acceptance

among customers in India. The model was tested with a survey sample (n=50). We used factor

analysis technique to classify these factors which buyers keep in mind while shopping online.

Internet is changing the way consumers shop and buy goods and services, and has rapidly

evolved into a global phenomenon. Many companies have started using the Internet with the

aim of cutting marketing costs, thereby reducing the price of their products and services in

order to stay ahead in highly competitive markets. Companies also use the

INTERNET AS A MEDIUM

Time

Sophisticati

Present

position

Internet development


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Internet to convey, communicate and disseminate information, to sell the product, to take

feed back and also to conduct satisfaction surveys with customers. Customers use the

Internet not only to buy the product online, but also to compare prices, product features and

after sale service facilities they will receive if they purchase the product from a particular

store. Many experts are optimistic about the prospect of online business. In addition to the

tremendous potential of the E-commerce market, the Internet provides a unique

opportunity for companies to more efficiently reach existing and potential customers.

Although most of the revenue of online transactions comes from business-to-

business commerce, the practitioners of business-to-consumer commerce should not lose

confidence.

It has been more than a decade since business-to-consumer E-commerce first evolved.

Scholars and practitioners of electronic commerce constantly strive to gain an improved

insight into consumer behavior in cyberspace. Along with the development of E-

retailing, researchers continue to explain E-consumers behavior from different perspectives.

Many of their studies have posited new emergent factors or assumptions which are based on

the traditional models of consumer behavior, and then examine their validity in the Internet

context.


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LITERATURE REVIEW

The current literature on consumer online purchasing decisions has mainly

concentrated on identifying the factors which affect the willingness of consumers to engage

in Internet shopping. In the domain of consumer behavior research, there are general

models of buying behavior that depict the process which consumers use in making a

purchase decision. These models are very important to marketers as they have the ability to

explain and predict consumers purchase behaviour. The classic consumer purchasing

decision-making theory can be characterized as a continuum extending from routine

problem-solving behaviours, through to limited problem- solving behaviours and then

towards extensive problem-solving behaviours [Schiffman et al., 2001].

The traditional framework for analysis of the buyer decision process is a five-step model.

Given the model, the consumer progresses firstly from a state of felt deprivation

(Problem recognition), to the search for information on problem solutions. The

information gathered provides the basis for the evaluation of alternatives. Finally, post-

purchase behaviour is critical in the marketing perspective, as it eventually affects

consumers perception of satisfaction/dissatisfaction with the product/service. This

classic five stage model comprises the essence of consumer behaviour under most

contexts. Nevertheless, the management of marketing issues at each stage in the virtual

environment has to be resolved by individual E- marketers.

Peterson et al. [1997] commented that it is an early stage in Internet development in terms

of building an appropriate dedicated model of consumer buying behaviour.

Decision sequences will be influenced by the starting point of the consumer, the relevant


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market structures and the characteristics of the product in question. Consumers' attitude

towards online shopping is a prominent factor affecting actual buying behaviour.

Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, NO.2, 2005

Todd [1997] proposed a model of attitudes and shopping intention towards Internet

shopping in general. The model included several indicators, belonging to four major

categories; the value of the product, the shopping experience, the quality of service offered

by the website and the risk perceptions of Internet retail shopping. In the research

conducted by Vellido et al. [2000], nine factors associated with users' perception of online

shopping were extracted. Among those factors the risk perception of users was

demonstrated to be the main discriminator between people buying online and people not

buying online. Other discriminating factors were; control over, and convenience of, the

shopping process, affordability of merchandise, customer service and ease of use of the

shopping site.

In another study, Jarvenpaa et al. [2000] tested a model of consumer

attitude towards specific web base stores, in which perceptions of the store's reputation and

size were assumed to affect consumer trust of the retailer. The level of trust was positively

related to the attitude toward the store, and inversely related to the perception of the risks

involved in buying from that store. Jarvenpaa et al. [2000] concluded that the attitude and

the risk perception affected the consumer's intention to buy from the store.

Consumer risk perceptions and concerns regarding online shopping are mainly related to

aspects involving the privacy and security of personal information, the security of online

transaction systems and the uncertainty of product quality. Trust is interwoven with risk

[McAllister, 1995].

One of the consequences of trust is that it reduces the consumers perception of risk

associated with opportunistic behaviour by the seller [Ganesan, 1994]. Lack of trust is

frequently reported as the reason for consumers not purchasing from Internet shops, as

trust is regarded as an important factor under conditions of uncertainty and risk in


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traditional theories.

Mayer et al. [1995] developed a model which combines traditional marketing philosophy

on consumer motivation to buy and the trust model. In this model, trust propensity; which

is a personality trait possessed by buyers; is an important antecedent of trust. In Internet

shopping, there is not much information available to the buyer regarding the seller, prior to

purchase. A buyer with a high propensity to trust will more likely be a potential customer

than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, benevolence

and integrity constitute the main elements of trustworthiness. Ability refers to skills,

competencies and characteristics that a seller has in a specific domain. In this context,

sellers need to convince buyers of the competence of their companies in the Internet

shopping business. Benevolence is the extent to which the seller is perceived by the buyer

as wanting to do good. Sellers have to convince buyers that they genuinely want to do

good things for buyers, rather than just maximize profit.


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ONLINE SHOPPING IN INDIA

It is a fact that a great online shopping revolution is expected in India in the coming years.

There is a huge purchasing power of a youth population aged 18-40 in the urban area.

Info by: IAMAI

If we observe the growth of Indian online transactions from the above graph, it is

getting doubled year by year. The usage of internet in India is only 4% of the total

population. This is also getting increased day by day as the costs of computers are

decreasing and net penetration is increasing. The cost of internet usage is also getting

lower, with good competition among the providers. Wi-Fi & Wimax is also

getting tested in Bangalore and other cities in India. This will increase the usage as it goesmore on wireless internet.

Indians are proving everytime that they can beat the world when it comes to figures of

online shopping. More and more Indians are going to online shopping and the frequency of

Indias online buying is crossing the overall global averages.


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Factors That Boost Online Shopping in India:

Rapid growth of cybercafs across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing. There are about

200 million of middle-class population good spending powers. These people

have very little time to spend for shopping. Many of them have started to depend

on internet to satisfy their shopping desires.

Few Facts About Online Shopping

The figures from IAMAI show that the internet users in India will grow to

200 million by 2010.

Around 25% of regular shoppers in India are in the 18-25 age groups, and

46% are in the 26-35- year range.

Indian online matrimonial sector is worth around $230 million.

Worldwide e-commerce is only growing at the rate of 28%, since India being a younger

market, the growth of e-commerce is expected at 51% in the coming years.

Inline with global trends finally India has also started shopping online these days. As per

the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to

$522 million in 2007 and it is expected to rise above $700 million by end March 2010.


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Indians are also Shopaholics like other Asians. There is a strong booming young adult

population in India with good levels of disposable income.


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INDIA FACTS-

Over $50 Billion and growing rapidly - Most popular online shopping products

include:

Books (45%), electronic gadgets (42%), railway tickets (38%), accessories

apparel (35%), apparel (35%), gifts (34%), computer and peripherals (32%),

airline tickets (28%), music downloads (21%), movie downloads (21%), hotel rooms

(22%), magazines (18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%),

movie ticket (15%), beauty products (12%), health and fitness products (12%), apparel gift

certificates( 11%) and sporting goods (7%). There are over 120 million people online in

India and this is expected to grow to 200 Million by the end of 2010.

CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

Malls malls springing up everywhere and yet people are e-shopping! And not in small

numbers either. E-commerce figures are going through the roof, according to Assocham

(Associated Chambers of Commerce & Industry of India). Today (2007-08) the figures are

touching Rs. 2200 crore, but are expected to increase by 150 percent by 2008-09 - to Rs

5,500 crores! And two metros - Delhi and Mumbai are driving the growth:
http://www.assocham.org/prels/shownews.php?id=1095http://www.assocham.org/prels/shownews.php?id=1095http://www.assocham.org/prels/shownews.php?id=1095


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It was never thought that Indians would go in for e-shopping in such a big way.Ticketing,

travel bookings and even books and movies seem fine to buy online. Knowing that in India

sizes vary from brand to brand and quality is inconsistent, even of some electronic items,

how is it that there are people buying these items online?

Well, Assocham says that books are the hottest selling item on the internet. In fact most

products bought and sold off online are: books, electronic gadgets and railway tickets.

However, people are also buying clothes, gifts, computer and peripherals, and a few are

buying home tools and products, home appliances, toys, jewelry, beauty products and

health and fitness products.

Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai.

Here are few reasons for this:

Convenience:

LOGGING ONTO E - SALES

CITY Share in 07-08 Projection for 08-09

Mumbai 24% 40%

Delhi 20% 30%

Chennai 7% 11-12%

Kolkata 7% 10 - 11%

Bangalore 6% 9%


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It is the major reason. Both the cities are spread out over a large area and the best

stores in both these cities are often concentrated in certain posh areas. In Mumbai

for example there are certain items you get only in Crawford market which is at the

other end of town in South Mumbai. And demographics show that the

population of Mumbai is now concentrated in the suburbs. Ofcourse, huge malls

have come up in the suburbs as well, and Indias biggest mallNirmal Lifestyle is in

far-flung Mulund but often you find a better choice of sizes and styles choice in other

malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have

transport system,few people like to travel for two hours just to get to a shop at the

other end of town. Clearly the transport systems leave much to be desired. In Delhi,

safety is also an issue for women traveling alone in the evenings.

Literacy Rate and the Cities Internet Savvy Population:

Most cities in India have a higher literacy rate as compared to the national average of

64.8 percent. In factMumbai has a highest literacy even amongst the cities (86 per

cent). Delhi too has a high literate population (81.2 per cent). Oddly, although

Bangalore has a higher literacy rate than Delhi, at 83 per cent, the citys share of e-

commerce is not very high. Kolkatta too has a literacy rate (80.8 per cent) and so

does Chennai (80.1 percent.) If one compares these rates to literacy rates of cities like

Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73

percent) its clear why its the metros which are going to continue to lead e-shopping.

Home delivery concept:

In any case, home delivery is a concept that Indians are familiar with and love. The

mall craze has started only now.Earlier it was a choice between sweating it out in

small crowded markets, or asking a friendly neighbourhood kirana (grocer) to deliver

groceries home and this system is still thriving.
http://nitawriter.wordpress.com/2007/02/16/nirmal-lifestyle-review/http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Patna#Demographicshttp://en.wikipedia.org/wiki/Jaipur#Demographicshttp://en.wikipedia.org/wiki/Indore#Demographicshttp://en.wikipedia.org/wiki/Indore#Demographicshttp://en.wikipedia.org/wiki/Warangal#Demographicshttp://nitawriter.wordpress.com/2007/02/16/nirmal-lifestyle-review/http://nitawriter.wordpress.com/2007/02/16/nirmal-lifestyle-review/http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Patna#Demographicshttp://en.wikipedia.org/wiki/Jaipur#Demographicshttp://en.wikipedia.org/wiki/Indore#Demographicshttp://en.wikipedia.org/wiki/Indore#Demographicshttp://en.wikipedia.org/wiki/Warangal#Demographicshttp://en.wikipedia.org/wiki/Warangal#Demographics


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Increase in the Internet users:

Increasing penetration of Internet connectivity and PCs has led to an

increase in the Internet users across India. The demographic segments that

have witnessed maximum growth comprise college going students and young

persons. These segments are the users of advanced applications and technologies

online and are most likely to be heavy E- Commerce users.

Increase in the number of buyers and sellers:

The success of a marketplace depends on the presence of a large number of buyers

and a large number of sellers. In addition to online buyers, many offline stores have

begun to sell their products in the online marketplace. The greater the number of

sellers and buyers, the faster the market grows.

PRODUCT PREFERENCES CITY WISE

Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies,

bookings,actually just about everthing.

Well, Kolkatta prefers to buy music and movies online

Mumbai leads in all categories, except jewellery.

Delhites seem to prefer buying jewellery online as compared to any other city

PROPOSED MODEL


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After examining various studies, I identified a total of eleven interrelated factors for which

the empirical evidences show significant relationships. These ten factors are perceived

usefulness, perceived ease of use, perceived enjoyment, information on online shopping,

security and privacy, quality of internet connection, attitude towards online shopping,

intention to shop online, online shopping decision making, online purchasing, and

consumer satisfaction. Six (perceived usefulness, perceived ease of use, perceived

enjoyment, information on online shopping, security and privacy, quality of

internet connection )are found to be ordinarily independent and five (attitude

toward online shopping, intention to shop online, decision

making, online purchasing, and consumer satisfaction) are ordinarily dependent variables.

Consumer satisfaction is considered to be a separate factor in this study. It can occur at all

possible stages depending on consumers involvement during the online shopping process.

The relationships between satisfaction, attitude, intention, decision making and online

purchasing are proposed to be two-way relationships due to the reciprocal influences of

each on the other. In addition, three of the antecedents, perceived usefulness,

perceived ease of use, perceived enjoyment , have been found to have direct impact on

consumer satisfaction.

Perceived Usefulness

Perceived usefulness is defined as the degree to which a person believes that using a

particular system would increase his or her job performance. It is an important factor

affecting acceptance of an information system, because the ultimate aim of any person is

the superior job performance.

Perceived Ease of Use


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This is an important factor that affects the acceptance of a particular information system.It

is defined as the degree to which a person believes that using a particular information

system would be free of effort. Hence an application perceived to be easier to use would

more likely be accepted by the user.


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Perceived Enjoyment

Enjoyment refers to the extent to which the activity of using a computer is perceived to be

enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a

particular application.

Amount of Information

Amount of information is defined as the information which is available for the product

which a person wants to buy through online shopping. This factor eases the

decision of the user to actually buy the product or not, or which product to

buy. This factor becomes even more important in case of High Involvement product.

Security and Privacy

Security and privacy are the main factors which hinder the growth of Online shopping. The

user is concerned about his ID and Password which can be stolen by persons with wrong

intentions and then misuse it. At the same time they are concerned that their personal

information may be sold to the third party which poses a serious threat to their privacy.

Quality of Internet Connection

Not only is the presence of internet connection necessary but also its Quality is important to

shop online. This is an important factor which determines whether the user would shop

online or not because presence of internet is a basic necessity for this mode of shopping.


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ATTITUDE TOWARDS ONLINE SHOPPING

Consumers attitudes toward online shopping have gained a great deal of

attention in the empirical literature. It is believed that consumer attitudes will affect

intention to shop online and eventually whether a transaction is made. It refers to:

1) The consumers acceptance of the Internet as a shopping channel

2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think

that shopping at this store is appealing).

INTENTION TO SHOP ONLINE

Consumers intention to shop online refers to their willingness to make purchases in an

Internet store. Commonly, this factor is measured by consumers willingness to buy and to

return for additional purchases. The latter also contributes to customer loyalty. Consumers

intention to shop online is positively associated with attitude towards Internet buying, and

influences their decision-making and purchasing behavior. In addition, there is evidence of

reciprocal influence between intention to shop online and customer satisfaction.

ONLINE SHOPPING DECISION MAKING

Online shopping decision-making includes information seeking, comparison of

alternatives, and choice making. The results bearing on this factor directly

influence consumers purchasing behavior. In addition, there appears to be

an impact on users satisfaction. Though it is important, there are only five


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studies that include it.

According to Haubl and Trifts (2000), potential consumers appear to use a two-stage

process in reaching purchase decisions. Initially, consumers typically screen a large set of

products in order to identify a subset of promising alternatives that appears to meet their

needs. They then evaluate the subset in greater depth, performing relative comparisons

across products based on some desirable attributes and make a purchase decision.

ONLINE PURCHASING

This is the most substantial step in online shopping activities, with most empirical research

using measures of frequency (or number) of purchases and value of online purchases as

measures of online purchasing; other less commonly used measures are unplanned

purchases Online purchasing is reported to be strongly associated with the

factors of personal characteristics, vendor/service/product characteristics, website

quality, attitudes toward online shopping, intention to shop online, and decision making

(Andrade 2000; Bellman et al. 1999)

CONSUMER SATISFACTION

It can be defined as the extent to which consumers perceptions of the

online shopping experience confirm their expectations. Most consumers form

expectations of the product, vendor, service, and quality of the website that

they patronize before engaging in online shopping activities. These expectations

influence their attitudes and intentions to shop at a certain Internet store, and

consequently their decision-making processes and purchasing behavior. If

expectations are met, customers achieve a high degree of satisfaction, which


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influences their online shopping attitudes, intentions, decisions, and purchasing

activity positively. In contrast, dissatisfaction is negatively associated with these four

variables (Ho and Wu 1999; Jahng et al. 2001; Kim et al. 2001).

A SURVEY REPORT

Indian E-Comm. Report Finds Heavy Spenders Driving Sales

By Devin Comiskey, August 16, 2007

A Survey by Indian research organization Juxtconsult found that more and more Indian

Internet users are opening their wallets online. While such hurdles as limited broadband

access and security concerns remain, the report finds there are currently more than 10

million shoppers online in India. While current trends point to increased e-commerce

growth in India, the online marketplace in the country of more than 1 billion people is still

relatively small. Juxtconsult's survey found that 40 percent of all urban Internet users

buy online, while 42 percent of the sales originate through just five percent of consumers.

The survey was conducted in April 2007 and sampled more than 30,000 users.

"This section of buyers spends 5,000 rupees or more per month on the net," states the

report. "It is interesting to note that two out of every three heavy spenders are also

'netholics,' those who are on the net for more than three hours per day...Of all those who

buy online, only 25 percent are spending more than 1,000 rupees per month while the

(remaining) 75 percent bill less than 1,000 rupees per month." (1,000 Indian rupees is

currently equal to approximately $23 US.). The report also found that buying and search

patterns among Indians differ between genders.

"While 43 percent of male users buy online, only 31 percent of urban
http://www.ecommerce-guide.com/feedback.php/http:/www.ecommerce-guide.com/news/trends/article.php/3527761http://www.ecommerce-guide.com/feedback.php/http:/www.ecommerce-guide.com/news/trends/article.php/3527761


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female users are consumers as well. Women tend to search more. Defying their more

common attitude towards shopping, women are more guarded when it comes to the online

market," says Juxtconsult. "Depending on the product type, nine percent to 25 percent are

buying online, whereas 33 to 47 percent are searching the net for product information," it

says.

Security Fears Persist.

Juxtconsult says the motivation for Indian users to make purchases online varies, but users

fear compromised personal information is still a great risk when it comes to e-commerce.

"The single biggest motivation for buying online for net users is saving time. Thirty-two

percent of them look to shop online with this purpose. Convenience of shopping

'24x7' and home delivery are other major incentives," says the report. "However, the

concern of possible misuse of credit car or personal information is extremely significant

among online buyers, with almost 55 percent of them voicing their concern. Clearly,

tackling and countering the issue of online safety figures as an imminent challenge for net

marketers."

Books, CDs Top the List

The products that are purchased most online in India, according to Juxtconsult, are books

and CDs - making up 25 percent of all online purchases.

"Ironically, computer hardware and software, despite having the home advantage are

among one of the least bought products online, with only 13 percent buying them," says the

report.


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"In sum, the online market in India is blossoming but is yet to take off in a considerable

way. The Internet is still being used more for searching than buying products and services.

Though a noticeable proportion of net users are also net consumers, essentially, at present

only a small tribe among them is driving online shopping momentum," says Juxtconsult.

LATEST TALK

A new trend in this space is that of Meta search engines. Ixigo and Ezeego are two

players in this space. A Meta search engine searches all the online travel sites

(including the airlines sites as well) and displays the best deals for the user.

Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online Pvt. Ltd,

are battling to win over Indias Rs16,000 crore ($400 million) religious travel market.

Opportunity in Online Travel Industry: $2billion

Online travel company MakeMyTrip (MMT) has recorded sales of Rs. 1000

crore for the financial year ending March 2008, as per a release.

BARRIERS TO GROWTH OF ONLINE MARKET

Consumer Bias

Consumers often display a bias for brands that they know well and have had a good

experience in the past. Thus products of brands with a favorable bias will score over the

products of less popular brands. A few would risk to buy expensive jewelry from an

unknown jeweler online.

Lack of Touch Feel-Try Experience

The customer is not sure of the quality of the product unless it is delivered to him and post

delivery of the product, it is sometimes a lengthy proces to get a faulty or the unsuitable


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product changed. Thus, unless the deliverables are as per the customers expectations, it is

hard to infuse more credibility in the e-Tailing market.

Mounting Competitive Pressures

To attract customers, the competing online players are adopting all means to provide

products and services at the lowest prices. This has resulted in making the consumers

choice-spoilt, who in turn surf various websites to spot the lowest price for the product.

Thus, although the number of transactions is increasing, the value of the products sold is

continuously falling owning to high competition and leaner margins.

Seasonality

eTailing Market is faced by seasonal fluctuations. As told by an Industry player, August to

February is the peak seasons for sale, while March to July is the dry seasons for sale.

During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day,

New Year, Christmas, Mothers Day, Friendship Day etc are. On these

occasions younger generations prefers buying and sending gifts online.

Credibility in Payment System

Online frauds and breach are the biggest barriers to online sales. As a result, prospectivebuyers prefer staying away from revealing their credit card and bank details.

Untimely Delivery of Products

It might take a few minutes to search, book and pay for products and services online, but

the delivery of the product may take unreasonable time.


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RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

The objective of this study is to study the growth of E-retail and synthesize the representative

existing literature on consumer online shopping attitudes and behaviour based on an analytical

literature review and also determine the customer perceptions about E retailing. In doing so,

this study attempts to provide a comprehensive picture of the status of this subfield and point

out what goes through customers minds while purchasing online and limitations of E-retailing

and areas for future research.

SIGNIFICANCE OF THE RESEARCH

When we talk about a market research regarding any topic, there should be a significance attached to it

otherwise it will not be that effective as it should be. In this case, which is to conduct a research on the

E-retailing and what customers think about it, I considered following elements which are directly or

indirectly related to this market research, and they are:

1. E-marketers

2. Customers using online services for buying products or services.

SIGNIFICANCE TO THE E-MARKETERS

This research will help E-marketers:


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1. To identify key factors influencing online shopping purchase behaviour.

2. To identify the factors that can explain the differences in online buying behaviour

among different online buyers.

SIGNIFICANCE TO THE CUSTOMERS:

i. Deciding amongst the various E- retailers - It makes easy for a consumer to decide which E-

retailer to visit and shop from a particular product or a service amongst the various options at

hand. Since it gives well defined analysis to the consumers about various servicers like

ticketing and bill submission, books, apparels, electronic items, etc. being provided by them.

ii. Awareness about the Online shopping and its advantages- Consumers can know about the

various retail portals and theh advantages and at the same time various risks associated with

online shopping.

APPROCH TO THE PROBLEM

First of all, I decided what are the things I need to collect information about and according to that I

prepared a questionnaire. Then the questionnaire was pilot tested. After pilot testing, I found some

mistakes in the questionnaire and accordingly made necessary changes in the questionnaire.

I took a sample size of about 250 people and interviewed them and collected information about

their knowledge and perception about online shopping.

TYPE OF RESEARCH DESIGN


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I used descriptive Research Methodology and in that used Survey method and secondary data

collection. In secondary research, data was collected from various magazines, research papers,

journals, business reviews, internet, etc. and in survey method used personal interview method (filling

of questionnaires) to collect primary information.

INFORMATION NEEDS

I was seeking the information to track the growth of E-retailing in India and the various attributes

considered by the customers before deciding to visit an E-retailer and then whether to purchase from it

or not.

DATA COLLECTION FROM SECONDARY SOURCES

Secondary data was collected from various magazines, internet sites, research papers, journals,

business reviews, newspaper articles, etc.

DATA COLLECTION FROM PRIMARY SOURCES

I collected the data from different people at different locations. I interviewed people at shopping malls

in Noida and Delhi, in banks and outside ATMs, Amity university,market place, and over internet.

SCALING TECHNIQUES

Scaling techniques used were:

Likert Scale

Nominal Scale


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QUESTIONNAIRE PREPARED & PRETESTING

I developed the questionnaires with the help of our respected faculty Dr. R.S. Rai and then I

pilot tested this questionnaire with a group of 15 people before going to the market for survey. During

pre-testing I found that there were some confusing questions and I rephrased those questions and also

added some more questions in the questionnaires and after this, the questionnaire was ready for the

research work.

SAMPLING TECHNIQUES

As the sample size was predetermined, i.e., 250, so I used simple convenience sampling which comes

under non probability sampling. Non-Probability sampling is the sampling in which sampling units are

selected by convenience.

FIELD WORK/DATA COLLECTION PROCESS

Field work involves selection, training and supervision of persons who collect data. Field workers

should be healthy outgoing, communicated, educated, experienced and should have pleasant

appearance. All these qualities are required as fieldwork can be strenuous and it needs effective

speaking and listening skills. Experienced interviewers are likely to do a better job in following

instructions, obtaining respondent cooperation and conducting the interview.

I, as a surveyor, went to the respondents in person and administered the questionnaire to them

and recorded their responses. At least 4 -6 minutes were spent on recording the responses of a

respondent. About 33% of respondents submitted their responses online. This research was mainly

descriptive and causal.

SAMPLING FRAME Noida - 94


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Delhi -78

Gurgaon - 29

Faridabad - 19

Bangalore - 29

SAMPLING LOCATIONS The locations to conduct survey were Amity university,

malls, ATMs of various banks, banks offices, market

place, and offices of travel agents.

SAMPLING UNITS The sampling population included those who use

Internet and corporate executives, students, etc.

SAMPLING TECHNIQUES Probability Sampling

SAMPLING SIZE 249

VALID RESPONSES - 241

ONLINE QUESTIONNAIRES FILLED - 85


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QUESTIONNAIRE ANALYSIS

Q1. How do you spend time when you are free?

a) At home b) watching movies c) shopping d) hang out with friends/family

Objective of the question:

The main objective of this question is to find out how the respondents spend time when they are free.

Response to the question:

We can see that a good mix of respondents has been targeted. Out of the total sample of 415

respondents:

6.42% spend time at home

38.15% spend time watching movies

24.89% spend time shopping

30.52% spend time hanging out with family or friends.

So we can say that a large percentage of the respondents like to spend time out of home, whether it is

shopping, watching movies or going out with family or friends.


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Q2: How much do you spend monthly on shopping?

a) Less than Rs. 2000 b) Rs. 2000 - Rs. 3000 c) Rs. 3000 - Rs. 4000 d)more than Rs.

4000

Objective of the question

The objective of this question is to find out the company respondents like to have when they are free.


Here we can see that

24.89% spend less than Rs. 2000.

32.53% spend Rs. 2000 to Rs. 3000.

28.91% spend Rs. 3000 to Rs. 5000.

13.65% spend more than Rs. 5000.


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From the responses to this question we saw that majority (61.54%)of the respondents spend

between Rs. 2000 to Rs. 5000.

Q3: How frequently do you visit retailers sites to search for products in a month?

a) Up to 5 times b) 6-10 times c) 11-15 times d) more than 15 times


Now the objective of such a question was to find out how much the customers are logging onto

the E-retailers sites so as to find their awareness about different E-retailers and what new

products or services have been added that they may buy.



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Here, we see that

36.14% of the respondents visit retailers sites upto 5 times in a month.

44.17% of the respondents visit retailers sites upto 6-10 times in a month.

17.67% of the respondents visit retailers sites upto 11-15 times in a month.

2.00% of the respondents visit retailers sites upto more than 15 times in a month.

So we can say that a fairly high percentage of the customers 61.84% of the respondents visit E-

retailers site regularly upto 15 times a month.

Q4: What are the factors that compel you to shop from an e-retailer?

a) Better prices b) convenience c) more variety d) special offers







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Here, we see that

22.08% of the respondents are influenced by better price offers

46.98% of the respondents are influenced by convenience of saving time, not going physically

to the store, etc.

26.90% of the respondents are influenced by more variety of products available and different

brands available at a single place

4.01% of the respondents are influenced by special offers that the E-retailers give on the

purchase of certain products or services.

So we can say that convenience of saving time, not going physically to the store, etc. and better prices

also play a major role in their decision to purchase from an E-retailer.

Q5: What kind of products do you buy online from e-retailers?

a) Tickets b) Electronic products c) apparels d) books e) others ______________



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Here, we see that

44.97% of the respondents visit retailers sites to buy tickets- rail, air, and movies tickets.

15.66% of the respondents visit retailers sites to buy Electronic products.

4.41% of the respondents visit retailers sites to buy apparels

18.07% of the respondents visit retailers sites to buy books, magazines, case studies, etc.


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16.86% of the respondents visit retailers sites for other purposes like mobile recharge,

etc

So we can say that tickets, electronic products and books are the products that rank highly on the

customers, priority list for online shopping among other things like buying apparels, flowers, grocery,

home appliances, etc.

Q6: Do you feel satisfied with the quality of product/service provided by e-retailers?

a) Yes b) No


Now the objective of such a question was to find out whether the customers are satisfied with the

quality of the product/service provided by e-retailers.


Here, we see that


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Majority of the customers i.e.74.69% are satisfied with the quality of the product/service provided by

e-retailers whereas 25.30% customers are not satisfied with the quality of the product/service provided

by e-retailers.

Q7: How many websites you visit before you purchase from an e-retailer?

a) 1-3 b) 3-5 c) 5-8 d) More than 8


Now the objective of such a question was to find out how many site does a customer visit before

making a decision to purchase a product from a particular e-retailer.



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Here, we see that

36.94% of the respondents visit 1-3 retailers sites before purchasing.

40.16% of the respondents visit 3-5 retailers sites before purchasing..

18.47% of the respondents visit 5-8 retailers sites before purchasing.

4.41% of the respondents visit more than 8 retailers sites before purchasing.

Q8: Does the layout or design /graphics of the website influence you to make a purchase

decision?

a) Yes b) No



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The main objective of this question is to find out how the respondents spend time when they are free.



51.8% of the respondents are influenced by the design /graphics of the website

48.19% of the respondents are not influenced by the design /graphics of the website

So we can say that there is an even number of customers who are influenced by the design /graphics of

the website and who are not.


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Q9: Which is the e-retailer you shop the most from?

a) IRCTC b) Rediff c) Amazon.com d) Future bazaar.com

e) Other __________


The main objective of this question is to find out which E-retailers are most preferred among

customers.


Here we can see that:

30.12% said they shop most from IRCTC.

24.09% said they shop most from Rediff.

4.81% said they shop most from Amazon.

16.46% said they shop most from FutureBazaar.

24.49% said they shop most from others like yatra.com, indiamart, retailsdirect, etc.

So we can say that a large percentage of the respondents like to spend time out of home, whether it is

shopping, watching movies or going out with family or friends.
http://www.futurebazaar.com/http://www.futurebazaar.com/


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Q10: Do you find all the information you require about the product on the site of the retailer?

a) Yes b) No


The main objective of this question is to find out which whether customers find all the information

about a product or a service on the retailers site.



85.54% of customers find all the information about a product or a service on the retailers site

14.45 % of customers find all the information about a product or a service on the retailers site

So we can say that a majority of respondents are satisfied with the information available on the E-

retailers sites regarding the product or the service they want to purchase.


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Q11 Do you feel safe while paying with credit card?

a) Yes b) No


The main objective of this question is to find out which whether customers find all the information

about a product or a service on the retailers site.



88.75% of customers feel that it is safe while paying with credit card

11.24% of customers feel that it is not safe while paying with credit card

So we can say that the customer perception about safety of card information is that due to payment

gateways, the chances of being cheated are less.


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Q12: Do you recommend others to buy online?

a) Yes b) No


The main objective of this question is to find out whether customers who shop online

themselves recommend others to do the same.



91.56% of customers recommend others to shop online.

8.43% of customers do not recommend others to shop online.

This shows that majority of customers are themselves satisfied with their experiences and thus

recommend others to shop online.


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Q13: What concerns you most while purchasing online?

a) Demonstration b) After sales services c) Misuse of credit card info d) Delivery time


The main objective of this question is to find out whether customers who shop online

themselves recommend others to do the same.



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Here we can see that:

30.12% said that physical demonstration of the product is their main concern while

shopping online

24.09% said that after sales services is their main concern while shopping online

4.81% said that misuse of the credit card info is their main concern while shopping

online

16.46% said that time taken for the delivery of the product is their main concern while

shopping online

So we can say that demonstration or we can say that touch- and- try feel of the product being absent

makes the customers vary about the quality of the product. After sales service and misuse of card info

also concerns them.

Q14: Now thinking about your most preferred e-retailer, please indicate your opinions about

the following statements:

Please rate the following statement:

STATEMENT 1: I prefer purchasing from this internet retailer over local offices, malls or

stores

(a) Strongly Agree

(b) Agree

(c) Neutral

(d) Disagree

(e) Strongly Disagree



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The main objective of this question is to find out whether the customers prefer purchasing

from their favorite internet retailer over local offices, malls or stores.


9.23% respondents strongly agree with the statement.

48.19% respondents Agree with the statement.

23.69% respondents neither agree nor disagree with the statement.

18.87% respondents disagree with the statement.

So we can say that more than 57% respondents prefer purchasing from this internet retailer over local

offices, malls or stores, in order to save time and to buy different brands at one place.

STATEMENT 2: This e- retailer doesn't just sell products or servicesit also entertains me.


The main objective of this question is to find out whether the find the site of the E-retailer to be

attractive enough to visit again and whether he feels good shopping from it.


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46.18% respondents agree with the statement.



So we can say that a majority of respondents 46.18%agree that E-retailing sites they visit also entertain

them.

STATEMENT 3: I consider this e- retailer as my first choice when I need to buy products or services

Online.


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The main objective of this question is to find out the loyalty of the customers towards E-

retailers, whether the give preference to a particular E-retailer every time they shop online.





0.4% (only 1) respondents disagree with the statement.

So we can say that a majority of respondents 63% agree that they prefer a particular E-retailer when

they need to buy products or services online.


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STATEMENT 4: I intend to continue to visit this Internet retailer's site in the future.


The main objective of this question is to find out whether the customers had a good experience

while shopping from an E-retailer and that he will visit again in the future.





So we can say that a majority of respondents are satisfied with their experiences while they visit E-

retailers and they intend to visit them again.


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STATEMENT 5: The products sold online are of lesser quality compared to those sold through other

means


The main objective of this question is to find out what is the perception of the customers about

the quality of the products or services they buy online.





9.63% respondents strongly disagree with the statement.

So we can say that almost three-fourths of the respondents perceive the quality to be as good as they

buy through other means.


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STATEMENT 6: I enjoy doing business with this Internet retailer.


The main objective of this question is to find out whether the customers enjoy doing business

with the E-retailer and they are happy with them.





So we can say that those customers who do online shopping are satisfied and enjoy doing business

with their preferred E-retailers.


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DEMOGRAPHIC PROFILE OF THE RESPONDENTS:

1. AGE

a) 18-22 years b) 22- 30 years c) 30-45 years d) Above 45 years

26% respondents belonged to the age group 18 22 years.

40% respondents belonged to the age group 22 - 30 years.

25% respondents belonged to the age group 30 - 45 years.

9% respondents belonged to the age group of more than 45 years.


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2. SEX

a) Male b) Female

56% of the respondents were male.

44% of the respondents were female.


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3. ANNUAL HOUSEHOLD INCOME

a)below 3 lakhs b) 3-5 lakhs c) 5-8 lakhs d) above 8 lakhs

33% of the respondents had an annual household income between Rs. 3 5 lakhs.

54% of the respondents had an annual household income between Rs. 5 8 lakhs.

13% of the respondents had an annual household income above Rs. 8 lakhs.


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4. PROFESSION

a) Executive b) Government Job c) Business d) Student e) Other

39% of the respondents were Executives.

22% of the respondents were in government jobs.

13% of the respondents were doing business.

22% of the respondents were students

4% of the respondents were housewives.


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RELATIONAL ANALYSIS

1. HOW MUCH DO YOU SPEND MONTHLY ON SHOPPING * AGE GROUPCROSSTABULATION

COUNT 18-22

YEARS

22-30

YEARS

30-45

YEARS

ABOVE 45

YEARS

How much do you spend

monthly on shopping

< Rs. 2000 15 25 18 4 62

Rs. 2000 - Rs. 3000 24 31 15 11 81

Rs. 3000 - Rs. 4000 17 30 20 5 72

>Rs. 4000 9 15 10 0 34Total 65 101 63 20 24

1420. e-retailing - growing popularity and perception of indian customers

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