LOVELY MBA Dessertation

A
Research Report
Titled
Comparatative assessment of Naaptol and
Homeshop18 based on
consumer
response
For the partial fulfillment of the award of degree of MBA
Subject : Research Project (IMS 1002)
Under the Supervision of
Dr. Rajan Sharma
Asistant Professor
Submitted to:
Submitted by:
The
Director
Lovely Kumar Verma

MBA 10th Sem.
Roll. No.- 20
Regn. No. 11-UD-3043
INSTITUTE OF MANAGEMENT STUDIES

KURUKSHETRA UNIVERSITY KURUKSHETRA
April 2016
DECLARATION
I LOVELY KUMAR VERMA, here by declare that the research entitled

Comparatative Assessment on
Naaptol and Homeshop18 based on
consumer response is the result of original work done by me in the Institute

of Managememt Studies, Kurukshetra University Kurukshetra.
This study has not been submitted to any other institute or university for the
award of any degree or for any purpose.
DATE:
LOVELY KUMAR VERMA
PLACE : KURUKSHETRA
IMS, KUK
ACKNOWLEGEMENT
I would like to acknowledege and extend my heartfelt gratitude to the following
persons who have made thge completion of this project possible. I hope I can
give something back by writing this and a little relief by maintaining
documentation for what they have taught.
I am really indebted to my department Institute of management Studies

kurukshetra University kurukshetra for providing me such an opportunity to
undergo training. I am also thankful to the worthy teachers for help and
inspiration they extended.
In other words, huge thanks to everyone for helping me out when I have
problems and questions.
LOVELY KUMAR VERMA
IMS, KUK
CONTENTS
CHAPTER
1
CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
PAGE NO.
1
Introduction
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________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
1.0 INTRODUCTION
Internet is changing the way consumers shop and buys 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 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 that are based on the
traditional models of consumer behavior, and then examine their validity in the Internet
context.
1.1 ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. E-commerce in
India has come a long way from a timid beginning in the 1999-2000 to a period where one
can sell and find all sorts of stuff from a high end product to a meager peanut online. Most
corporations are using Internet to represent their product range and services so that it is
accessible to the global market and to reach out to a larger range of their audience.
Computers and the Internet have completely changed the way one handles day-to-day
transactions; online shopping is one of them. The Internet has brought about sweeping
changes in the purchasing habits of the people. In the comfort of one's home, office or cyber
cafe or anywhere across the globe, one can log on and buy just about anything from apparel,
books, music and diamond jewellery to digital cameras, mobile phones, MP3 players, video
games, movie tickets, rail and air tickets. Ease, simplicity, convenience and security are the
key factors turning the users to buy online.
E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year 201516, growing at 95 per cent over 2014-15(Source: Internet and Mobile Association of India,
IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be too early to do
a comparison with the e-commerce scenes in countries such as the US where billions of
dollars are spent online but the business in India is growing exponentially every year, albeit
from a smaller base, the total revenues have reached a respectful size.
1.2 Background of the Study
Online shopping is also recognised as electronic shopping or internet shopping, described as
the shopping procedure where customers acquire services or goods from any company via
online (Keen, 2004). Moreover, online shopping also described as assessing, searching, and
browsing internet for shopping any service or product.
Because of the technological development and enhancing the number of internet

users,consumers from India are focused to do online shopping. There is still considerable
study gap exist to recognise the essential aspects to motivate onlineshopping behaviour
among consumers in India. Earlier studies defined supposed usefulness and considered ease
of use are affected considerably to implement any technology related trade. In was also
observed that considered usefulness and supposed simplicity of use impact customers to
perform online shopping. In earlier literatures under particular sample, it was observed that
supposed hazard is connected with customer trust on technology related dealings. It is true
that some other factors are also there that might be affected customers onli ne shopping
behaviour, for example subjective value, customer technology applying skill, race, gender so
on so forth which could be recommended for additional study (Chen, 2005). As whole this
study attempts to reply what are the important factors are influencing online shopping
behaviour among India consumers. As a consequence, the aim of this research is to
investigate the factors that are influencing customers onli ne shopping behaviour under
customers perception.
1.3 Research Background

E-commerce defined the selling and shopping of services, products via electronic network.
Online shopping was one of the most considerable activities of E-commerce. Online
shopping activity was widely described, contained getting online products and retailers,
looking for product knowledge, deciding payment styles, communicating with other
customers, and shopping services or products . Different online retail companies established a
considerable attempt to reach customers, but most of them have experienced loss and have
detracted their investment due to inadequate consumer base. So, the online shopping
behaviour of British customers required to observe. The usage of the Internet for selling and
shopping activity has transformed the path to the buyer-sellers association. Earlier literatures
were concentrated on established nations of their consumers online shopping behaviour and
influencing factors. The online shopping behaviour and aim of different nations customers
would be the focused problem to solve. British consumers online shopping behaviour can
participate to current studies of online shopping behaviour.
1.4 Organization Background
Introduction
Naaptol registered as Naaptol Online Shopping Pvt Ltd, headquartered in Mumbai,
Maharashtra is an ecommerce portal based in India. Founded in 2008 by Manu Agarwal.
Naaptol started its operation as product research and price comparison engine in initial stage
with a seed capital of Rs.50 lakhs. Later in 2009 it was expended as an online market place
and started offering products to purchase online in categories like mobiles, tablets, cameras,
home appliances and a variety of other products. In this journey Naaptol shot up its turnover
to Rs. 10 Crore in 2009- 2010 which was Rs. 1 Crore in 2008-2009 and facilitating
transactions worth Rs 1.5 Crore every single day.
In 2010, Naaptol started investing in print media and increased its print media market share
by 0.3% with top 3 positions for two consecutive years. Naaptol has raised funding from New
Enterprise Associates (NEA), Canaan Partners and Silicon Valley Bank during its journey
since 2008 and launched a site Naaptol Club and forayed into television.
Business model
Advertisements on Naaptol
Offline Lead Revenues
Online selling partnership
Micro sites for Sellers
Naaptol makes money by charging sellers for the leads it generates for them. Also it charges
brands from advertising on the site. 60% of their business today comes from reaching out to
the consumers, through the print advertisements. 30% of our business comes in from reaching
out to consumers through TV advertisements. And about 10% of our business comes from the
retail space. Margin with the dealers: Depending on the category, the margins in this sector is
between 15% to 30%.
Revenue Model
Naaptol.com is an aggregator of many brands. Its business model is based on procuring
current season merchandise from various brands and making them available on the portal at
the same time as in respective retail brand outlets. All these products are offered to customers
on MRP. It is a Business to Customer (B to C) revenue model.
What is unique about the Naaptol?

Naaptol is essentially a comparison based social shopping portal. It gives products complete
with their specifications and reviews to help users make informed decisions. And it helps
both sellers and buyers together. With the growth of the Indian economy and the changing
standards of living there is a sudden upsurge of brands and stores, both online and offline,
that claim to sell the best of the products at the most reasonable prices. But what is the
guarantee that the price offered to them is the best?
Products Available on Naaptol.com
Payment Options
We know how cash is not always the convenient mode of payment considering times are
rough, and some of us don't have credit cards. But that urge to buy doesn't listen to your
circumstance, does it? Put a stopper to restlessness. Shop easy with us with our convenient,
easy to use payment options that lets you pay both on and offline.
Offline Payment Modes
Cash on Delivery:
Cash on Delivery (COD) is available in most of the cities and towns across India. The Cash
on delivery payment option is available on orders that ship to a single shipping address only.
Hand over the cash to courier only when products are delivered at your doorstep. Easy peasy?
Cheque/Demand Draft:
You can pay either by Cheque or Demand Draft of the required amount in the favor of
"NAAPTOL ONLINE SHOPPING PRIVATE LTD" to the following address
Naaptol Online Shopping Private Limited,
11, Conopus, Kabra Galaxy Star-I CHS,
Brahmand, Azad Nagar,
Thane West- 400 607.
Online Payment Modes
Credit Card/Debit Card:
You can now shop at Naaptol with your credit/Debit cards (Maestro, MasterCard, Visa,
Diners club, American Express) over secure mediums.
Internet Banking:
Convenient shopping is in. Use internet banking to pay through yourbank's interface by the
help of a simplified step-by-step process.
PayMate:
Your mobile is now your wallet! Make payments via PayMate's mobile banking service that
has the highest secure standard.
EMI Usage Terms and Condition
Shopping is more affordable when you can pay in easy monthly installments. Naaptol allows
you to pay EMI with Axis Bank, Standard Chartered Bank, Kotak Mahindra Bank or ICICI
Bank credit cards, stretched over a period of 3 to 9 months with nominal processing free.
Like we say, shop right, shop more.
Naaptol shopping Private Limited offers 3,6 & 9 easy installments on your Axis Bank,
Standard Chartered Bank, Kotak Mahindra Bank or ICICI Bank credit cards,
Pay in easy 3/6/9 month installments
Available for minimum transaction value of Rs. 2000 for 3 Months EMI options, Rs.5000
for 6 months and Rs. 7000 for 9 months EMI options
No additional charges for the 3 months EMI option
Shipment of Product
Once you have completed a successful online transaction, your order is processed at the
earliest.
In case of offline transaction (such as Cash on Delivery) your order is processed after you've
attended the verification call from our customer support. If you are making payments via
Cheque/ Demand Draft, payments are verified before processing your order.
After the order processing is completed, your products are dispatched at the earliest, the
status for which and the intermediate steps will be constantly updated via emails and text
messages, using information provided by you during completion of your order. You can also
check the status of your order through courier website. Naaptol have collaborated with
industry best logistics to deliver your order accurately, in good condition, and always on time.
All successfully processed orders are assigned AWB (Air Way Bill) number of the partnered
logistic vendor. You can click on the following courier link and paste your AWB no to track
your Order:
Courier terms simplified. (When the courier status reads the following, this is what you
decipher)
In Transit: The consignment is on route to the destination.
Delivered: The consignment is delivered.
Returned to Origin: Delivery had been attempted, however due to reasons mentioned
below, the consignment is returned back to the Naaptol.(Consignee Refuse to
accept/Consignee not available at Home/Payment not Ready/Address/Contact number
irrelevant/insufficient.)
Once your order has been dispatched, it should reach to you within a time frame of 7 working
days, unless otherwise in which case your order shall be returned to origin.
Terms and Conditions
1. Payment and Returns
Naaptol accepts return as per the following policy
Only defective/damaged products will be accepted for returns/refunds.
Customer need to raise an alert with us within 2 working days from the date of delivery for
being eligible for the return.
Only those products will be eligible for return policies which are received by us within 10
working days of the date of delivery.
Naaptol retains the rights to examine whether the product returned is defective/damaged and
based on the verification Naaptol will either reship/replace the product to the customer.
In case product is defective or damaged then the Naaptol team will replace and reship the
product to the same shipping address of the customer subject to the availability of the stock of
the product.
In case the returned product is not defective/damaged then the customer will be informed
about the same and the same product will be reship to the shipping address of the order.
Customer will have to bear the shipment charges for the replaced/reshipped product.
If the product stock is unavailable then a request for the refund will be initiated and the
same shall be informed to the customer through registered email.
2. Cancellation Policies
Naaptol Cancellation policies
The amount will not be transferred to the respected retailer until the user receives the
product he orders and changes his status to 'Delivered' on naaptol.com. If the delivery fails
within the specified deadline, the order will be cancelled and the amount will be refunded to
the user.
If the user places the order and due to some reason (unexpected lack of inventory or any
other reason) the retailer is not able to ship the product, the order will be cancelled and the
amount will be refunded.
If the seller reports order as shipped and delivered from their side and the user does not raise
an alert within 2 days the money would be transferred to the seller.
3. Refunds
Naaptol refund policies are as following
Only those products which are returned from the customers as per the acceptable return
policy and for which the replacement is not possible will be eligible for refunds.
In the event that a product is listed at an incorrect price or with incorrect information due to
an error in pricing or product information, Naaptol may, at its discretion, either contact the
customer for instructions or cancel the order and notify customer of such cancellation. In
such cases Naaptol will refund the charged amount to the customer (only for which the
payment is already received).
For Online Refunds
In case the payment mode of the refunded order is Online (Credit Card/Net Banking) the
amount will be refunded to the customer Card Account.
Refund will be done within 2 working days from the date of request of refund.
For online refund the transaction might take 3-5 working days to reflect into your account.
For Offline Refunds
In case the payment mode of the refunded order is offline (COD/Cheque/DD/any other
offline payment mode) the mode of refund will be through Cheque.
HomeShop18 is an integrated technology platform that enables sellers to showcase,

demonstrate and market their products to customers across India. As a pioneer in this space,
the company changed the way Indians shop by launching Indias first 24 hours Home
Shopping television channel, HomeShop18 in 2008. In 2011, the company launched its
website www.homeshop18.com and in 2013 it launched its mobile site m.homeshop18.com.
This was followed by being available through mobile applications on iOS, Android and
Windows. Today, it operates in a multimedia environment including Internet, TV and via

mobile.
HomeShop18 is a part of the Network18 Media & Investments Limited which is owned and
operated by Reliance Industries. Network 18 FinCap is the holding company for several
media entities in India such as Television Eighteen India Ltd (TV18), HomeShop18, CNNIBN, First Post, IBN 18 Broadcast Ltd, Web 18, Studio 18, Shop 18, Infomedia 18, and
Viacom 18.
HomeShop18 television shopping channel is available on all leading DTH providers-TataSky,
Airtel, Dish TV and others. It reaches over 100 million households across India.
HomeShop18 TV channel showcases product features through their Expert Anchors, similar
to HSN or QVC in USA. They also provide live streaming and video demonstrations of the
products showcased on HomeShop18s various digital platforms-TV channel, Mobile app and
Website. The company headquarted out of Nodia has recently appointed Mr. Sanjeev Agrawal
as CEO, and has 6 state-of-the-art studios with 10 real time shows everyday, on an average.
HomeShop18 was ranked the 4th most preferred online shopping destination this festive
season according to Global Reseach Firm, Ipsos.
Today, HomeShop18 reaches a strong customer base with a diverse portfolio of over 14
million SKU's across multiple categories and a logistical reach of over 3000 locations across
India. HomeShop18 offers a complete product range across all major categories; including
digital, fashion & lifestyle, beauty products, jewellery, kitchen essentials, home &
furnishings, kids gear, books and many more.
Today, HomeShop18 reaches a strong loyal customer base across all regions and territories of
India. Through our integrated technology platform, sellers showcase an impressive portfolio
of over 14 million SKU's across multiple categories like digital, fashion & lifestyle, beauty
products, jewellery, kitchen essentials, home furnishings, kids wear, food and many more.
The company through its delivery partners have a logistical reach of over 3000 locations
across India.
Homeshop18 has divided in Categories and Sub-Categories with
further sub-division some of them categories are as follows Electronics & Computing
Cameras & Mobiles
Kids & Toys

Jewellery
Watches
Fashion & Accessories
Health & beauty
Home & Kitchen
House Hold Appliances
Books
Movies & Music
What are the top selling products at Homeshop18?

These are the broad categories that are top selling:
Consumer Electronics: Camera [Homeshop18 claims that 5% of camera sold in India are
through HS18 channel.
Mobile Phone and Microwave Ovens.
Home Appliances
Jewellery
Key statistics of Homeshop18 business:
51% of the business comes from TV channel ; Internet constitutes only15%

35% of buyers are from the metros; 65% Tier II and Tier III cities
60% of buyers are males ; 40% females
2750 Brands; 20,000 SKUs (Stock keeping units)
2 Million Customers
18% are repeat customers.
New transaction every 06 seconds.
Run-rate of Rs. 1 Crore a day.
Some Facts about HOME SHOP 18

1. Theres difference between Tele shopping & Homeshop18 Tele shopping is very product
specific; Homeshop18 is a virtual mall (instead of a shelf, theres TV)
Tele shopping works on getting ad slots on TV channels; Homeshop18 is a TV channel (No
need for any slots)
2. Home shop displays the products better than any other retail format
3. In 2 years, Home shop has crossed 2Mn. customers; 1 customer is added every 6 seconds
4. Home shop accounts for 5% of all digital cameras sold in India; Its is the largest retailer
for Reebok.
5. Home shop has 800 people team managing 5oo brands across every conceivable product
category
6. A TV channel like Homeshop18 converts eyeballs into transactions; Viewer ship into
customers
7. The revenue of Homeshop18 is not from advertisement but from transactions.
8. The major challenge is to build confidence. Therefore, the focus is on selling branded
products
9. Internet is not as interactive as TV; it works as a catalogue for whats on TV.
10. Customers prefer to use the internet more to spread the message that they have purchased
a product via a TV channel and find similar people who can validate that it is OK to do that.
11. Theres a lot of scope to sell various products via a TV channel; Homeshop18 is already
selling Jewellery and insurance products and plan to get into Real Estate.
12. Payment mechanisms have and will evolve with time. Homeshop18 is one of the 1st ones
to introduce Cash-on-delivery model which is not without its challenges (Customer may
change his/her mind; courier boys may run away with the money, etc). These challenges are
being taken care of in their unique ways
13. TV is a very strong medium and would continue to grow as we move ahead and internet
would form a great support system and would evolve with time.
2
Literature review
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2.0 LITERATURE REVIEW

The purpose of this literature review is to explore the online shopping experience
and evaluate why consumers are opting to shop online as opposed to traditional shopping.
Research and findings- Previous research conducted indicates that convenience and time are
the major factors affecting the decision to shop online. It was also found that young
consumers are more likely to make online purchases. Implications- Marketers can implement
their knowledge of online shopping behaviour to come up with compelling marketing
strategies. Future research- Further research can be conducted on how to successfully use
online retailing and predict how the growing use of internet will affect future consumers and
their shopping behaviour.
1. Introduction
Monsuw (2004) Online shopping has become a growing trend in the retail world
today, particularly in developed nations. Statistics show that the amount of shoppers
purchasing online are rising and the quantity of their purchases is also increasing rapidly.
This change began in the 1990s when e-commerce blew up and significantly transformed the
landscape of the retail environment
Chen & Chang (2003) Consumers are using the internet not just to buy goods and
services, but also to browse online shops or to attain knowledge about potential purchases.
The atmosphere in online shops is also becoming an important factor to consider for
marketers when looking for ways to satisfy the consumers.
2. Theoretical Background
Kim & Park(2005) Online stores are a form of multi-channel retailing which can
now be used to gain access to a wider market.
Doherty & Ellis-Chadwick(2006) Opening up online shops brings about great
advantages as many consumers are leaning towards online shopping. It provides a very
flexible way to sell products and services People are finding it more convenient to do their
shopping online instead of going out and doing it physically. They can buy almost any
products or services they desire just by clicking on their computers or phones .
Kau (2003) However, online retailing does have certain downsides which should
also be taken into consideration. Moreover, similar to offline retailing, online shops also have
both hedonic and utilitarian aspects and individual consumers perceive the concept of online
shopping differently.
2.1 Why Shop Online
Grewal (2002), online shopping is more efficient in meeting the consumers needs
and wants. It allows the consumers to easily attain knowledge about the brands product
quality, availability, product specifications and prices, and compare that with those of another
brand. This means they can now make more intelligent purchasing decisions in a way which
is not possible through traditional shopping.
Brown and Reid (1997) observed that routine tasks like shopping for groceries
have become easier for customers who do not like crowds and driving the trolley around the
store . It seems that people nowadays, especially young adults, are becoming more conscious
about personal image and fashion. For these types of consumers, shopping is an entertaining,
pleasure-filled activity that is like an escape. It is important to note that such shoppers are
looking for good service standards too. In terms of online shopping, the consumer satisfaction
will be high if, for instance, the company has a user-friendly website which makes shopping
through it seem like a stimulating experience (Strategic Direction, 2012). Online retail shops
often market themselves through low price. For example, Amazon.com uses this tactic to
attract consumers away from traditional bookstores. These low price online retail shops are
causing a great consumer surplus.
Haubl and Trifts (2000) also mentioned that when shopping online, consumers
can compare prices and look at alternative options. Websites such as Yahoo Shopping aid in
making this comparison with just a few clicks. Furthermore, on online shopping websites,
consumers have access to other customers reviews which can guide their purchasing decision
Wolfinbarger and Gilly (2001) concluded that the reason most shoppers like to
make online purchases is due to high accessibility and great convenience. Shopping from
home saves them the effort of travelling because it allows them to shop right from their
house. This is especially good for people who have long working hours and not much spare
time to shop, as the internet allows consumers to shop at any time during the 24 hours in a
day. Therefore, one of the key situational factors is the time limitation.
Avery (1996), another factor is immobility; this is found in consumers who are
unable to go out shopping to stores due to problems such as an illness or a physical disability.
The third situational factor is geographical as it is related to the distance consumers often
need to travel for the stores which have the items they need. Consequently, online shopping
helps them overcome this burden. For instance, many people residing in busy cities may not
have the appropriate transportation to travel to more affordable shops. They may be forced to
shop at the costly town centres if it was not for the option to shop online.
Dennis(2007). The next factor relates to situations when a specific good is
needed to be purchased and it is not available in traditional shops. An example of this is plussized clothes or shoes, thus online shopping is an easy option to obtain such goods. How
appealing alternatives are is the last situational factor. This means that if a store in the
consumers area is selling the same good as an online store, the consumer may find the brickand-mortar approach to shopping more attractive
Gehrt (2012) shoppers can be saved from spending time going to crowded malls.
The fact that online shoppers can gain access to a vast amount of information on goods and
services they are interested in also relates to convenience. E-retailers can use this to their
advantage and create loyalty amongst customers
Li & Zhang (2002) online shoppers are more acquainted with convenience rather than
experience. For them, convenience is the most significant aspect when making purchases as
they have limited time and are not as bothered by the idea of purchasing goods without
physically touching them
2.2. Online vs. Offline Shopping
Sherman (1997) In traditional shopping, features of the atmosphere are a key factor
influencing the consumers perception. These features also affect whether the consumer is
finding the shopping experience pleasurable or not, as stated by On the contrary, the
environment in online shopping includes a much narrower range of experiences and certain
technological abilities are needed to function in such a setting. All the senses cannot be used
to perceive online shopping experiences.
Lunt (2000) expressed that the key explanation for consumers not shopping online is
because of the limited experience factors involved However,claimed that online shopping
does have several merits and interactions which can bring about interesting experiences Even
though online shopping has many benefits, there are still consumers who have
reasons to avoid it.
Lee and Turban (2001) pointed out that navigating websites can prove to be tricky for
consumers who are not familiar with shopping this way and they do not trust the internet as a
safe source for transactions . Such users frequently complain on factors such as: refunds,
return policies, billing problems, exchange policies and faulty products.
Dellaert and Kahn (1999) observed that if consumers face problems while shopping
online, they only wait eight seconds to receive any response from the companys system
before giving up the purchase. Still, in contrast to the traditional shopping brick-andmortar
retail environment, marketers of online shopping sites generally put forward more detailed
product information. This does give them an edge as these days consumers want to know
everything about a product before spending money on it.
Rowley (1998) mentioned the uncertainty surrounding online transactions and pointed
out that organisations have to guard themselves when it comes to data authenticity and
reliability. And also stated that there is insufficient legal material for online retailing which
could prove risky if something goes wrong during the online purchase .
Whysall (2000) have also discussed a way to measure the e-shoppers trust towards
online retail businesses by exploring: the security level for credit cards, private details of
shopper, and the safety and trustworthiness of the website. These risks, especially securityrelated, do cause online businesses to lose potential customers. Additionally, in order to
perform online shopping the consumer must have stable internet access and they must be
comfortable with using the internet. This may be an issue for the older generation who are not
as confident with their technical abilities .
2.3. Online Shopping Experience
Tauber (1972) experiences are an important part of consuming and shopping.
Shoppers are not always simply looking to buy products, but also want to get pleasure from
the shopping activity. This experience is affected by the customers shopping goals, what they
expect, and what their motivations are for shopping online is an important factor to consider
when analysing the shopping experience.
Holbrook and Hirschman (1982) established that it is highly important to create
hedonic significance through good experiences in order to toughen up the relationships with
consumers. Customer experience involves engaging several of the customers aptitudes to
satisfy and create value while he interacts with the organisation, its products and its other
customers. Similarly, an online retailers role is to establish an appropriate environment to
help customers in gaining a positive experience while shopping online.
Huang (2003) stated that the online shopping environment is highly interactive.
Content of the website is a critical aspect in terms of how accurate and relevant it is. The
website design is also very important if the company wants conduct a successful e-retailing
business. The website visuals include: colour themes, font usage, photos, logos, graphic
qualities and so on. These visuals capture the consumers attention by communicating a
distinct image of the organisation and its products and services. Factors such as low prices,
good customer service, easy navigation, and also plainly stated return and exchange policies,
are a part of the online shopping experience.
Xu & Paulins (2005) It is possible to improve the experience of online shoppers by
responding to the problems they may face, particularly safety concerns. The best way
organisations can handle this issue is through communication. They should let the consumers
know that their website is secure and that privacy protection is a priority for the organisation
(Strategic Direction, 2012). Companies should strive to constantly improve their online
services for consumers. A sound service delivery will have great positive impacts on the
experience of an e-shopper .
Ahmad (2002) A study into online service quality showed that trust is a critical factor
which influenced the consumer's contentment. Thus, online shops have to work towards
becoming more reliable in terms of delivering products on time, giving proper information,
and most importantly, making sure that shopping on their website is completely safe and
secure.
2.4. Hedonic vs. Utilitarian
Demangeot & Broderick (2006)Consumers are motivated to shop on the internet for
either utilitarian or hedonic elements. Consumers in the utilitarian environment are simply
looking for a certain good or service, shopping is similar to a chore for them. They just want
to fulfil their shopping needs quickly and efficiently. However, most online shoppers look for
hedonic value through their experiences. Consumers view shopping as a pleasure-filled
activity and find it entertaining.
Holbrook (1994), some people do not value the actual purchase as much as they value
the contentment they gain from shopping online.Clothing products are seen as hedonic and
young adults are getting consistently more into browsing through online clothing shops
(Strategic Direction, 2012). They do not only care about the quality of the clothes and their
prices, but also the websites visual interactive aspects.\
Sherry (1999) adds that their actual motivation may not be to buy something when
they visit the online retail website, but through positive experiences, they may decide to make
a purchase. In comparison to this, utilitarian shoppers are more logical. Their shopping is not
spontaneous; it is a result of wanting to fulfil their needs and they buy after thorough research
of product information.
2.5. Perception of Online Shopping
Chen & Chang (2003) The consumer's perception of their experience while
shopping online is also a factor to consider. When the consumers experience exceeds their
expectations, there is a high chance they will become loyal towards that particular online
shop. This satisfaction is based on a number of features such as: how fulfilling the experience
was, how smooth the transaction was and the ease of interaction .The shoppers perception
will also vary depending on what kind of product they are looking to purchase.
Klein (1998) said that products which require searching before purchase (such as
books) will be different from products that are purchased through experiences (such as
clothes).
Zhou et al (2007) also stated that the online shoppers perception will vary depending
on the type of product because the risk factors are different for each.
Liu & Forsythe (2010) Some consumers do not shop online because they perceive
traditional shopping as being soothing and fun. It improves their mood and turns into a social
activity which they can do with their friends.
Liu (2013). Other factors which may affect the perception of online shoppers are: how
exposed they are to the market, market ambiguity and the position of competitors in the
market.
Gong (2013). Comparatively, generation Y is very attached to online shopping and
spends their time looking into and fantasising about online products. They are attentive
towards sales promotions and are influenced by celebrities when it comes to fashion. A recent
research found that almost half of the respondents were spending a minimum of one hour
every day on online retail websites. It was also found then mens fashion has led more men to
participate in online shopping. Overall, consumers are now freely accepting the concept of
online shopping and this phenomenon is continuously growing. However, it should also be
noted that traditional shopping is still equally relevant to the retailing business
3. Previous Research Findings
Coral (1999) this first came about due to consumers leading busier lives with both
parents going out to work. Convenience is important for grocery shopping; claimed that it is
the activity consumers hate the most besides going to the dentist. In a research it was found
that convenience and time-saving were the main reasons for them to opt for online grocery
shopping. Mothers particularly showed interest because they could avoid their childrens
pleads to buy extra things such as candy. Other such online consumers included handicapped
people who found it convenient to shop online for their groceries.
Morganosky & Cude (2000) A similar study looked into whether situational factors
such as charges for delivery and time constraints affect a consumers decision to shop online
for groceries. It was found that, on average, consumers cared more about the travelling time
to go to the shop than they did about paying fees for online grocery shop delivery.
Huang & Oppewal (2006) A study on consumers in Greece looked into the existing
differences between online and offline shoppers. It was found that Greek consumers are
highly concerned with using their time efficiently, being able to shop any time of the day, and
avoiding long queues. Therefore these factors lead them to shopping online.
Karayanni (2003) Relatively, another research found that online shoppers are also
influenced by the actual website, if it appeals to them and puts them in the mood to shop.
Emotions are a critical aspect because respondents showed preference for websites with a
hedonic value
Demangeot & Broderick (2006) Another study carried out in 2005 evaluated how
college students approach online clothes shopping. 17 percent of the students said they do not
like shopping online, 28 percent were unsure and 55 percent said they like shopping online.
This shows that the younger generation is growing a preference for online shopping. Many
years have passed since this research was conducted in 2005, so with the rising importance of
the internet in our lives today, the preference for online shopping has increased.
4. Marketing Implications
Brown (2003) Retailers should adopt a holistic means to come up with a marketing
strategy. They should recognize that there are different types of online shoppers and
understand that these different groups have their own motives for choosing online shopping.
Thus they can then implement their strategy to fulfil the needs of all of the shoppers. This
marketing strategy must focus on the advantages of shopping online .
Trabold (2006). The marketing strategy should cause consumers to become familiar
with the companys name, make it convenient for them to make purchases, and be well
designed to attract the consumers attention. They should also put effort into the visuals on
their website, making sure it is easy to navigate and use. It is suggested for marketers to look
at online shopping not competitively, but as a complement to offline shopping.
Strauss and Frost (1999) A major benefit of online retailing is the ability to attain
consumers over many geographical locations, in a very short amount of time. So marketers
should take advantage of this by using various promotional methods to increase sales all over
the world. They can also market themselves by positive word-of-mouth through creating
loyal customers. The internet can be used to create customer loyalty by providing consistent
promotions through not only their website, but also social media sites. Lastly, marketers
should maintain a system to provide sufficient and easily attainable product information to
guide online transactions.
5. Conclusion and Future Research
Pyle (1996) has stated, the internet has given rise to great potential for businesses
through connecting globally.
Forsythe and Shi (2003) also said that shopping online has become the number one
area with growing internet use.
Doherty & Ellis-Chadwick(2006) However, there is surely room for further research
into the environment and experience of online shopping. Currently there is inadequate
research based on ways to be successful in the business of online retailing. Therefore, in the
future there is potential for further studies looking into methodology for online retail
business.
3
Research
Methodology
__________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
This chapter describes the problem statement and research objectives. It

covers the scope and significance of the research work. It further discusses the research
design in detail.
3.1
Problem Statement and Formulation

In view of the tremendous exponential growth taking place in the Indian E-
Retail sector, the old playing field is not very relevant and old marketing practices are
becoming out of context. In the highly competitive and dynamic conditions, the rules of the
game are changing rapidly. Further, the pace of new products being offered to customer in the
E-Retail segment is mind boggling. The consumer choice was very simple and easy when
only few options were available to customers. With the new options and new players,
customers expectations and value system brings changes in the entire segment. It has again a
boomerang impact on the E-Retail players.
In terms of the product mix, E-Retail market is having enormous choices for
customers. In the E-Retail sector, the right degree and right time of launching key
technological innovations is very important and crucial to the success of product in the
market. Thus, a study is essential to assess marketing practices of selected E-Retail players.
In view of the above, the present study titled, Seven Ps of Selected E-Retailers has been
conducted.
3.2
Objectives of the Study

The present study has been conducted to achieve the following objectives:
To analyse the perception of consumer regarding to online website.
To evaluating the marketing mix variables through consumer perception.
3.3
Hypotheses
There is no significant difference in the consumer perception in context of various
marketing mix variables.
3.4
Scope of the study

The study covers marketing practices of the e-retailers. The selection of
customer was confined state of Haryana and schedule was collected from two cities of
Haryana.
The study is confined to two E-Retailers dealing in various products. The
selection criterion is their financial performance and market presence. The study deals with
the marketing practices of the following E-Retailers:
NAAPTOL
HOMESHOP18
3.5
Research methodology
3.5.1
Sampling: The sample of the study is based upon the initial pilot study. The
E-Retailers are selected on the basis of their . The analysis is based on the responses of a
sample of 100 customers .Sampling technique is purposive. The study has utilized a sample
of 100 customers. Customer segment is represented by two city of Haryana, i.e. Kurukshetra
& Pehowa. These Two cities are taken as representative of the E-Retailer users population of
the state as they cover metropolitan, urban and semi-urban customers. Each city chosen has
25 customers of each E-Retailer segment.
3.5.2
Research design: The study is descriptive& analytical in nature.
3.5.3
Data Collection:
Both primary and secondary data are gathered to accomplish the objectives of
the study. The field data has been collected through the structured schedule addressed to the
customers of the selected E-Retailers.
The first schedule was addressed to their customers. For assessing the
effectiveness of the marketing practices 100 customers [50 of each company consisting
Naaptol & Homeshop18] have given response with the help of schedule. The secondary data
has been collected from the annual reports of the respective companies, newsletters; research
publications and various others published and unpublished sources.Various sources of
secondary data include the following:
Annual reports of the selected companies.

Journals : Journal of Marketing Management, Journal of Marketing, European Journal
of Marketing, Journal of Consumer Research, Journal of Strategic Marketing, Journal
of Consumer Marketing, Journal of General Management, Journal of Marketing
Research, Management Review, Journal of Product and Brand Management, Journal
of Advertising Research, California Management Review, Indian Journal of
Marketing.
3.5.4
Tools and Methods of Data Analysis

The data have been analyzed with the help of Statistical Packages for Social
Sciences using various statistical techniques like Mean, Standard deviation and Independent
T test and presented through tables, charts etc. The actual rating of various parameters has
been depicted by mean scores which have varied between 1 to 5. Standard deviation has been
used to detect the difference in the opinion of the respondents, while Analysis of Variance has
been used to see whether the marketing practices of selected organizations differ significantly
from each other.
3.6
Significance of the Study

Marketing is the key element of any organisation to bring in the profitability
and benefits of maximum marketing share to the organisation by satisfying and delighting
customers. These days due to advancements in the technology and innovation the competitive
scenarios is really very challenging and demanding. Performance of any company is
dependent on the corporate marketing practices associated with the product offerings to
existing as well as prospective customers in relation to the competitors. Indian E-commerce
industry is increasingly becoming a part of the global Integrated hub for the different ERetailers,who are expanding in a fast pace due to the imperatives of large volume of trade
facilitated by the economical and technological progress.
The study will help in better understanding of the existing marketing practices
followed by organisation and their relative degree, depth and efficacy. The study would be
useful for selected E-Retail companies, as to how successful they have been in marketing of
their products offerings through their marketing effort. Some of the suggestion given in the
study may go a long way in brining decisive changes in the marketing practices of Indian ERetailer.
3.7
Limitations of the Study

With its utmost theoretical & practical significance, the following points can
be broadly stated as the limitations of the present research work:

(i)
Since obtaining the opinion of customers was the objective of the study, the
sample size was kept limited to 100 (50 customers of each) in case of customers.
Hence, the findings cannot be generalized.
(ii)
It is difficult to make the customers understand the logic behind the question at
times.
(iii)
The accuracy of the results is limited to the reliability of the methods of

investigations, measurements and data analysis technique used in the study.
QUESTIONARE
NAME- _______________________PROFESSION______________
AGE- ________ CONTACT NO-_____________
ANNUAL FAMILY INCOME_______________
Please mention which website you prefer. ______________________
Please give your scores in relation to the website used by you and on the basis of your
agreement or disagreement with the statement e.g. if you strongly agree with the
statement then your answer would be 5.
STATEMENTS
A)
1.
2.
3.
4.
5.
B)
6.
7.
8.
9.
10.
C)
11.
12.
13.
14.
D)
15.
16.
PRODUCT
Website have product variety
Website provide quality product
It deals in various known brands
Filter and selection for customer is
easy.
It lists lot of products which are not
available in market
PRICING
It provide products at competitive
price
It provide discount facility
It introduce seasonable offers
It gives various financing schemes
It provide excellent
replacement/refund system
PLACE
It uses multi channel strategy.
The delievery system is fast.
Is product is delievered at promised
date.
The companys service set up is very
responsive and fast in resolving the
concerns of the customers.
PEOPLE
Were they prompt in their action.
Company employee are well trained
Strongl
Agre
Neutra
Disagre
Strongly
y Agree
5
Disagree
1
17.
E)
18.
19.
20.
F)
21.
22.
23.
and having knowledge of product.

Does they provide loyality benefits.
PROMOTION
Company has effective sales
promotion.
Companys advertisements are
persuasive
Company has effective direct
marketing.
PROCESS
Website provide cash on delievery.
Website has debit and credit card
transaction.
Website is easy in product selection.
24. Easy in payment processing.

25. Website is easy in browsing .
G
PHYSICAL EVIDENCE
)
26. Detail information is available while
shopping online
27. Website appealing visually.
28. Website has interactive element
29. Packaging is good and safe.
Thanks for giving your valuable time and response.
4
Data Analysis,
Results and Discussion
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Analysis of Marketing Practices

It is a well accepted fact that customer is the barometer of any organizations
effectiveness. It is the only bioscope through which many of the International organizations
could see their success, and many other to see through their deficiencies in order to overcome
them. These days organizations aim not only to satisfy customers but to delight them. All the
marketing practices adopted by major online shopping websites would be ultimately
culminating into the increased consumer satisfaction. In turn, same would be reflected in
customers perceptions about the organizations products.
In this chapter an attempt has been made to gain insights into the consumer
behavior of the customers regarding their ratings related to marketing practices of the two
online shopping websites . Two websites have been chosen to assess the impact and efficacy
of marketing practices of online shopping websites . The segmentation of these two websites
is done on the basis of their product, price, promotion , place, people, process and physical
evidence . The chosen online shopping websites in segment are as follows:
Naaptol
Homeshop18
This chapter covers responses from customers of selected organizations. 100

customers of the two online shopping websites (50 each of websites) have been taken in the
sample to gauge the perceptions of the websites customers of their respective website being
used. Statistical techniques namely arithmetic mean, standard deviation and Independent T
test have been used to extract the output. The impact of marketing practices (marketing
inputs) has been described with the help of mean scores and standard deviation. The
interpretation of the mean score is done on a score chart ranging from very poor performance
to very good performance. Mean score range of one to less than two is taken as very poor
performance. Mean score range from two to less than three is taken as poor performance. A
score of three is taken as average performance. Mean score in the range of three to less than
four is taken as good performance. Mean score in the range of four to less than or equal to
five is taken as very good performance.
A) PRODUCT MIX
Following section of table is assessing the companys product mix efficacy as
viewed by the customers. In order to sustain long term profitably, the right product mix is
very important. The core of any organizations success depends upon the selection of right
kind of product. The section analyses the perception of customers on websites product
variety, product quality, filter and selection style,brands etc.
Table: 4.2.1
consumer Perception on the basis of product variety
Website
variables
Naaptol
Var002
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.52
.505
4.60
.495
9.12
1.000
Sig.
1.806
.182
seen from table 4.2.1 on the basis of var002, Homeshop18 has highest mean score 4.60 which
is slightly higher than mean score of Naaptol i.e. 4.52. which shows that homeshop18 has
product variety of products. As the value of F(1.806) is significant at .182 level. The null
hypothesis is accepted and there exists no significant difference in consumer perception on
variety of products in both websites.
Table: 4.2.2
consumer Perception on the basis of product quality
Website
variables
Naaptol
Var003
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.02
.141
4.36
.485
8.38
.626
Sig.
241.084
.000
seen from table 4.2.2 on the basis of var003, Homeshop18 has highest mean score 4.36 which
is slightly higher than mean score of Naaptol i.e. 4.02. which shows that homeshop18 has
provide quality products. As the value of F(241.084) is significant at .000 level. The null
hypothesis is rejected and there exists significant difference in consumer perception on

websites product quality.
Table: 4.2.3
consumer Perception on the basis of various known brand
Website
variables
Naaptol
Var004
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.52
.505
4.60
.495
9.12
1.000
Sig.
1.806
.182
As seen from table 4.2.3 on the basis of var004, Homeshop18 has highest
mean score 4.60 which is slightly higher than mean score of Naaptol i.e. 4.52. which shows
that homeshop18 in various known brands. As the value of F(1.806) is significant at .182
level. The null hypothesis is accepted and there exists no significant difference in consumer
perception that both websites deals in various known brand.
Table: 4.2.4
consumer Perception on the basis of filter and selection of product
Website
variables
Naaptol
Var005
50
Homeshop18
50
Total
100
Mean
4.44
4.42
8.86
Std.Deviation
.884
Sig.
6.919
.010
.673
1.557
mean score 5.00 which is similar to mean score of Naaptol i.e. also 5.00. which shows that
both websites has easy filter and selection of products for consumer. As the value of F(6.919)
is significant at .010 level. The null hypothesis is accepted and there exists no significant
difference in consumer perception on both websites.
Table: 4.2.5
consumer Perception on the basis of list of products available on website
Website
variables
Naaptol
Var006
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.52
.505
4.60
.495
9.12
Sig.
1.806
.182
1.000
mean score 4.60 which is slightly higher than mean score of Naaptol i.e. 4.52. which shows
that homeshop18 has better list of products which are not available in market. As the value of
F(241.084) is significant at .000 level. The null hypothesis is accepted and there exists no
significant difference in consumer perception on both websites.
B) PRICING MIX
Pricing is the only marketing mix elements which generates revenue for the
organization as compared to other marketing mix elements i.e. place, promotion & product
people, process and physical evidence. In the following section the consumers perception is
gauged to ascertain the efficacy of pricing practices of selected organizations. Various
statements related to price competitiveness, discount facility, seasonable offers, financing
schemes and replacement system assessed the efficacy of companys marketing mix as
viewed by customers.
Table: 4.2.6
consumer Perception on the basis of competitive price
Website
variables
Naaptol
Var007
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.02
.141
4.36
.485
8.38
.626
Sig.
241.084
.000
As seen from table 4.2.6 on the basis of products at competitive price,

Homeshop18 has highest mean score 4.36 which is slightly higher than mean score of
Naaptol i.e. 4.02. which shows that homeshop18 rpovide products at competitive price. As
the value of F(241.084) is significant at .000 level. The null hypothesis is rejected and there
exists significant difference in consumer perception on both websites.
Table: 4.2.7
consumer Perception on the basis of discounting facility
Website
variables
Naaptol
Var008
N
50
Homeshop18
50
Total
100
Mean
4.52
Std.Deviation
.505
4.60
.495
9.12
1.000
Sig.
1.806
.182
As seen from table 4.2.7 on the basis of discounting facility, Homeshop18 has
highest mean score 4.60 which is slightly higher than mean score of Naaptol i.e. 4.52. which
shows that homeshop18 provide better discounting facility. As the value of F(1.806) is
significant at .182 level. The null hypothesis is accepted and there exists no significant
Table: 4.2.8
consumer Perception on the basis of seasonable offer
Website
variables
Naaptol
Var009
50
Homeshop18
50
Total
100
Mean
4.50
4.72
9.22
Std.Deviation
.505
Sig.
8.986
.003
.495
1.000
As seen from table 4.2.8 on the basis of this parameter, Homeshop18 has
shows that homeshop18 provide good seasonable offer. As the value of
F(8.986) is
significant at .003 level. The null hypothesis is rejected and there exists significant difference
in consumer perception on both websites.
Table: 4.2.9 consumer Perception on the basis of various financing schemes
Website
variables
Naaptol
Var010
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.18
.388
5.00
.000
9.18
Sig.
70.629
.000
.388
As seen from table 4.2.9 on the basis above parameter, Homeshop18 has
highest mean score 5.00 which is higher than mean score of Naaptol i.e. 4.18. which shows
that homeshop18 provide various financing schemes as comparison to Naaptol. As the value
of F(70.629) is significant at .000 level. The null hypothesis is rejected and there exists
Table: 4.2.10 consumer Perception on the basis of excellent replacement and refund
system
Website
variables
Naaptol
Var011
50
Homeshop18
50
Total
100
Mean
2.54
2.96
5.50
Std.Deviation
.542
.880
1.422
Sig.
16.217
.000
As seen from table 4.2.10 on the basis of this parameter, Homeshop18 has highest mean score
2.96 which is slightly higher than mean score of Naaptol i.e. 2.54. which shows that
homeshop18 has better excellent replacement and refund system. As the value of F(16.217)
is significant at .000 level. The null hypothesis is rejected and there exists significant
C) Place Mix Decisions
An organizations Endeavour on how to reach the customer is a very crucial
decision. It involved identifying distribution channels, making the products easily accessible
to the customers. In order to assess the efficacy of place mix of the select organisations, a
thorough review of the delivery system and company service setup, policy & procedures have
been done in the following section from consumers responses.
Table: 4.2.11 consumer Perception on the basis of uses of multi channel strategy
Website
variables
Naaptol
Var012
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.02
.141
4.36
.485
8.38
Sig.
241.084
.000
.626
highest mean score 4.36 which is slightly higher than mean score of Naaptol i.e.4.02 . which
shows that homeshop18 uses different multi channel strategy . As the value of F(241.084) is
Table: 4.2.12 consumer Perception on the basis of fast delievery system

Website
variables
Naaptol
Var013
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.50
.505
4.24
.431
Sig.
18.160
.000
8.74
As seen from table 4.2.12 on the basis of this parameter, Naaptol has highest
mean score 4.50 which is slightly higher than mean score of Homeshop18 i.e. 4.24. which
shows that Naaptol provide fast delievery system. As the value of F(18.16) is significant at .
000 level. The null hypothesis is rejected and there exists significant difference in consumer
perception on both websites.
Table: 4.2.13 consumer Perception on the basis of product is delievered at promised
date
Website
variables
Naaptol
Var014
50
Homeshop18
50
Total
100
Mean
4.56
4.46
9.02
Std.Deviation
.501
Sig.
18.742
.000
.828
1.329
As seen from table 4.2.13 on the basis of this parameter Naaptol has highest mean score 4.56
which is slightly higher than mean score of Homeshop18 i.e. 4.46. which shows that naaptol
product is delievered at promised date. As the value of F(18.742) is significant at .000 level.
The null hypothesis is rejected and there exists significant difference in consumer perception
on both websites.
Table: 4.2.14 consumer Perception on the basis of company service setup is responsive
and fast
Website
variables
Naaptol
Var015
50
Homeshop18
50
Total
100
Mean
3.04
3.20
6.24
Std.Deviation
1.009
Sig.
1.806
.182
.990
1.999
shows that homeshop18 has service setup is responsive and fast in resolving the concerns of
the customers . As the value of F(1.806) is significant at .182 level. The null hypothesis is
accepted and there exists no significant difference in consumer perception on both websites
D) People Mix
The function of people is to affect the customer behaviour in order to provide
knowledge to their customer and also describe that company were prompt in their action by
understanding the customers need. This following section include employee motivation,
employee knowledge, loyality benefits, employee interaction toward customer etc.
Table: 4.2.15 consumer Perception on the basis of employee prompt in their action
Website
variables
Naaptol
Var016
50
Homeshop18
50
Total
100
Mean
4.52
Std.Deviation
.505
4.60
.495
9.12
1.000
Sig.
1.806
.182
shows that homeshop18 were more prompt in their action. As the value of F(1.806) is
significant at .182 level. The null hypothesis is accepted and there exists no significant
Table: 4.2.16 consumer Perception on the basis of company employee are well trained
and having knowledge of product.
Website
variables
Naaptol
Var017
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.52
.505
4.60
.431
9.12
.936
Sig.
1.806
.182
As seen from table 4.2.16 on the basis of of this parameter, Homeshop18 has highest mean
score 4.60 which is slightly higher than mean score of Naaptol i.e. 4.52. which shows that
homeshop18 employee are well trained and having knowledge of product. As the value of
Table: 4.2.17 consumer Perception on the basis of loyality benefits
Website
variables
Naaptol
Var018
50
Homeshop18
50
Total
100
Mean
Std.Deviation
1.54
.613
2.48
1.216
4.02
1.829
Sig.
45.820
.000
seen from table 4.2.17 on the basis of of this parameter, Homeshop18 has highest mean score
homeshop18 provide loyality benefits. As the value of F(45.820) is significant at .000 level.
on both websites.
E) Promotion Mix
The function of promotion is to affect the customer behaviour in order to close a

sale. Advertising, public relations and so on are included in promotion and integrated well
with the 4 Ps. Promotion must be consistent with the buying process described in the
consumer analysis. This following section include various promotional activities includes
mainly advertisement, public relations, and sales promotions & direct marketing.
Table: 4.2.18
consumer Perception on the basis of company has effective sales
promotion
Website
variables
Naaptol
Var019
50
Homeshop18
50
Total
100
Mean
4.52
Std.Deviation
.506
4.60
.495
9.12
1.000
Sig.
1.806
.182
homeshop18 has effective sales promotion. As the value of F(1.806) is significant at .182
level. The null hypothesis is accepted and there exists no significant difference in consumer
Table: 4.2.19
consumer Perception on the basis of company advertisement are
persuasive
Website
variables
Naaptol
Var020
50
Homeshop18
50
Total
100
Mean
Std.Deviation
3.06
.613
3.56
1.216
6.62
1.829
Sig.
11.320
.001
homeshop18 advertisement are persuasive. As the value of F(11.320) is significant at .001
level. The null hypothesis is rejected and there exists significant difference in consumer
Table: 4.2.20
consumer Perception on the basis of company has effective direct
marketing
Website
variables
Naaptol
Var021
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.02
.141
4.36
.485
8.36
.626
Sig.
241.064
.000
As seen from table 4.2.20 on the basis of of this parameter, Homeshop18 has
shows that homeshop18 effective direct marketing. As the value of F(241.064) is significant
at .000 level. The null hypothesis is rejected and there exists significant difference in
consumer perception on both websites.
F) Process Mix
The function of process is to affect the customer behaviour in order to provide
website easiness in product selction to their customer and also describe that company provide
various delievery and payment option in their action by understanding the customers need.
This following section include cash on delievery, debit and credit card transactions, product
selection, browsing and payment processing etc.
Table: 4.2.21 consumer Perception on the basis of website provide cash on delievery
Website
variables
Naaptol
Var022
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.80
.404
4.70
.463
9.50
.867
Sig.
5.373
.023
4.70 which is slightly lower than mean score of Naaptol i.e. 4.80. which shows that Naaptol
provide cash on delivery. As the value of F(5.373) is significant at .023 level. The null
hypothesis is accepted and there exists no significant difference in consumer perception on
both websites.
Table: 4.2.22 consumer Perception on the basis of website has debit and credit card
transaction
Website
variables
Naaptol
Var023
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.78
.418
4.84
.370
9.62
.788
Sig.
2.339
.121
homeshop18 provide debit and credit card transaction on their every product. As the value of
Table: 4.2.23 consumer Perception on the basis of website is easy in product selection
Website
variables
Naaptol
Var024
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.70
.463
4.82
.388
9.52
.851
Sig.
8.114
.005
homeshop18 is easy product selection. As the value of F(8.114) is significant at .005 level.
on both websites.
Table: 4.2.24 consumer Perception on the basis of easy in payment processing
Website
variables
Naaptol
Var025
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.02
.141
4.36
.485
8.36
.626
Sig.
241.064
.000
homeshop18 provide easy payment processing system. As the value of
F(241.064) is
Table: 4.2.25 consumer Perception on the basis of website is easy in browsing
Website
variables
Naaptol
Var026
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.70
.463
4.90
.303
9.60
.766
Sig.
30.947
.000
homeshop18 easy in browsing as comparison to naaptol. As the value of F(30.947) is
G) Physical Evidence Mix

Following section of table is assessing the companys physical evidence mix
efficacy as viewed by the customers. In order to sustain the detail information and website
appealing is very important. The core of any online website success depends upon interactive
elements. The section analyses the perception of customers on websites appealing, detail
information, packaging style etc.
Table: 4.2.26 consumer Perception on the basis of detail information is available while
shopping online
Website
variables
Naaptol
Var027
50
Homeshop18
50
Total
100
Mean
Std.Deviation
4.50
.505
4.24
.431
8.74
.936
Sig.
18.160
.000
4.24 which is slightly lower than mean score of Naaptol i.e. 4.50. which shows that naaptol
provide detail information of product while shopping online. As the value of F(18.160) is
Table: 4.2.27 consumer Perception on the basis of website appealing visually
Website
variables
Naaptol
Var028
50
Homeshop18
50
Total
100
Mean
Std.Deviation
2.06
.424
3.08
1.455
5.14
1.879
Sig.
241.084
.000
3.08 which is higher than mean score of Naaptol i.e. 2.06. which shows that homeshop18
appealing visually is much better
as comparison to naaptol. As the value of F(241.084) is
Table: 4.2.28 consumer Perception on the basis of website has interactive element
Website
variables
Naaptol
Var029
50
Homeshop18
50
Total
100
Mean
3.00
3.52
6.52
Std.Deviation
1.010
Sig.
18.160
.000
.863
1.873
homeshop18 has much more attractive elements as comparison to naaptol. As the value of
F(18.160) is significant at .000 level. The null hypothesis is rejected and there exists
Table: 4.2.29 consumer Perception on the basis of packaging is good and safe
Website
variables
Naaptol
Var030
50
Homeshop18
50
Total
100
Mean
Std.Deviation
3.88
1.350
3.64
1.562
7.52
2.912
Sig.
3.401
.068
3.64 which is slightly lower than mean score of Naaptol i.e. 3.88. which shows that naaptol
provide good and safe packaging. As the value of F(3.401) is significant at .068 level. The
null hypothesis is accepted and there exists no significant difference in consumer perception
on both websites.
5
Conclusions, Implications and
Recommendations
__________________________________________________________________________________
5.1
INTRODUCTION
It is plain and palpable that company can only progress when adopt a customer focus. It is the
general recognition that the satisfied customers are the major determinants of organizational
performance and effectiveness. Therefore, just as it is with other organisations, concentrating
on the customers - the most important stakeholder of a company - and carrying out studies
related to exploring their satisfaction have become essential. With this broad objective in
mind, this study was conducted. This final chapter concludes the findings of the study,
presents the implications of the study, and the recommendations as well.
5.2
FINDINGS
Customers of e-retail users shown fair bit of satisfaction with the product
features and related benefits derived from their respective organization, barring few
exceptions. In this naaptol has failed in meeting the expectations of its customers on the
parameters of product variety and quality, filter and selection style and availability of various
known brands. Homeshop18 has also failed miserably is satisfying its customers on
availability of stocks of products as they rapidly get out of stock due to high sales. They
however, have got decent ratings on the parameter such as offering deals in various known
brands. The main reason for the success of homeshop18 has been their vast product variety.
The pricing objectives of both selected organisations have been found to be
more similar. Through their pricing, all of these make an attempt to maximize their sales,
attain high market penetration and show superior product quality. Homeshop18 intend to
show their superiority through technological advancement or persuasive financial schemes.
The organisations, like in case of pricing objectives have a lot in common
when it comes to choosing a pricing method for price fixation as well. Interestingly, in the
modern day scenario where customers consent to price being charged is so important, none
of the selected e-retailer have been found to be giving due importance to customers while
fixing their prices.
Homeshop18 found to be highly inclined towards giving various kinds of
discounts to their prospective customers. This is quite obvious as modern day customers have
multiple choices and they have become deal-prone. Comparatively speaking, the seasonal
offers are the most favoured discounting practices amongst the selected E-retailers. Still, the
fact remains that all the e-retail companies rely heavily on offering discounts to influence the
buying decisions.
Both companies have got good rating on the parameters of price
competitiveness, value for money and transparent billing system.
Both E-retail organisations have been found to be relying heavily on various
promotional tools to influence their customers. Comparatively speaking advertising and sales
promotion have emerged as the most popular promotional tools amongst all of them. The
selected organisations also look towards maintaining relationship with their customers, press
media and government officials to enhance their credibility in their eyes. Direct Marketing
and Personal Selling, to a lesser extent; also find some favour from the selected organisations
to influence their customers. Preference for media has also remained more or less same with
the selected organisations. All of them make use of television, newspapers, magazines and
internet to influence their customers.
Only Homeshop18 has been able to get the nod of its customers when it comes
to influencing them by direct marketing endeavours. The direct marketing efforts of Naaptol
have virtually been rejected by their customers. None of the selected companies have been
able to make a sizable impact on their customers through celebrity endorsements.
The Homeshop18 service set up is very responsive and effective and fast in
resolving the concern of the customers as compared to naaptol. The delievery system of
Homeshop18 is faster than Naaptol because in case of naaptol there are number of customer
who are unsatisfied with delivery system of naaptol as product is not delivered on promised
date.
Both e-retailer provide cash on delivery facility but in case of Homeshop18 as

it has tieup with banks to provide interactive schemes on using their debit card or credit card
as the mode of payment for their purchasing, Naaptol is also lack behind in this strategy.
The human resource of homeshop18 is well trained and having knowledge of
their products as compared to naaptol. It is also found that Homeshop18 provide loyality
benefits to their certified customer on their every purchase.
The website of Homeshop18 is much appealing as compare to naaptol because
of their colours and visual graphics and having interactive elements regarding to their
products like their videos, images with good resolution which provide depth information.
5.3 CONCLUSION
After analyzing the above questionnaire, it can be easily referred that
Homeshop18 has wiped out to a certain, the market share of online shopping. And it has
marked a good brand image in just 2 years, Home shop 18- the channel of Network 18 is also
a brand. But as is evident from the above datas it is evident that its not the brand name which
has fetched Homeshop18 success, but its their good marketing strategies adopted by them for
conducting their shows. The competitive marketing strategies of Homeshop18 which were
being used by them for the Success of their channel are as follows:
1. Homeshop 18 is the Pioneer in this industry.
2. It has created a NASCENT industry.
3. In their latest initiative to become the market leader, HOMESHOP18 has undertaken
innovative promotions targeting Hindi speaking.
4. These marketing strategies seem to be quite aggressive and innovative.
Whereas Naaptol is still going on with its traditional mode of marketing, they are as
follows:
Promotion in the shows of its own channel.
Promotion via its Co-Channels
TV as a media of promotion is sometimes being used by them.
It also promotes itself through the Newspapers.
It has putted hoarding over the road and several other places to be in the eyes of the
public.
Proceeding further we need to also to consider the factors that are influencing the competition
between Homeshop18 and Naaptol they can be listed down as given below:
Viewers were in search of new, fresh, juicy and spicy Products. They wanted a broad
variety of Products which can cater to the large segment of population at the same time.
In the era of marketing company concept Naaptol was still sticking to the product eras
concept.
In the age of 21st century everyone aspires for the continuous innovation, which was
never going to be done by Naaptol.
In this age, its not only the females who are the viewers of the shows. Thus family as a
whole should be the target segment.
Monotonous daily shows created boredom among the viewers.
5. The awareness of Homeshop18 is not 100 %, which can be a big threat to the organisation.
6. A company is not concentrating on their advertisement.
7. The maximum portion of our country approx 62 % of peoples lives in rural area but home
shop 18 is completely missing out that segment. An organization should be more focused on
this portion if they want to be the Market leader.
8. To create programs to reach out to a wider audience through the new general entertainment
channel (GEC) Colors.
9. The products and value propositions would be based on the profile of viewers of that
particular channel. The purpose is to convert viewers into customers for the entire network,
After reading the above listed points one can easily identify that Naaptol is on the lower hold.
The reasons elucidated above needs to be converted into the success of this channel. This will
be done by doing its reorientation. It just needs to reform its product and market them
aggressively. Homeshop18 has just lost its somewhat share to Naaptol but still is not on the
lower ends. It is still giving stiff competition to the company which are into the online
shopping.
5.4
RECOMMENDATIONS
The last topic of the report talks about the convertibility of unfavourable factors into
the success of the channels. As it is evident from the whole study it can be easily referred that
Naaptol is at the lower ends whereas Homeshop18 is currently holding the top position in
online shopping. In order to sustain its position, Homeshop18 needs to be innovative in
approach with its continuous efforts. It has to walk in accordance with the customers choice
and preferences... Hence the following are the general suggestions by which Home Shop 18
can have the convertibility of unfavorable factors into the success of their channel.
1. Consumers choice must be evaluated timely and properly so as they will not become
product centric.
2. If they are being product centric, then the expertise must be there so that the targeted
segment can never ignore their particular product.
3. Wide variety should be offered so that each and every colors of the sparkle can be made
available to the viewers.
4. They should constantly design the competitive intelligence system: There are four main
steps in designing a competitive intelligence system:
Setting up the system
Collecting the data
Evaluating and analyzing the data
Disseminating information and responding to queries
5. Constant market watch should be there so as to be in trend.
6. Proper marketing should be done as today it is the era of marketing company.
7. Target segment should be focused in such a manner which could address maximum
population.
8. Competitors and customers should be focused simultaneously, which was not done by
Naaptol.
9. Proper telecast timings should be set so as to grab more market share.
10. Lastly, Change should always be felt as a necessary component of the Competitive
marketing strategies.
REFERENCES
Kothari C.R.; Research Methodology, New Age, New Delhi, 2007.
Ramaswamy V.S., Namakumari S.; Marketing Management, Macmillan India Ltd,

2003.
Principles of Marketing, Philip Kotler and Gary Armstrong, Part 4: Extending

Market, Chapter 17: Creating Competitive Edge, 11th Edition, Prentice Hall of India
Pvt. Ltd., New Delhi, 2006.
Marketing Management, Philip Kotler, Part 2: Analysing Marketing Opportunities,

Chapter 9: Dealing with the Competition, 11th Edition, Prentice Hall of India Pvt.
Ltd., New Delhi, 2003.
Russakov Evgenii, Online shopping through consumers eyes, Am Navigator, 2008.
Price Lisa, The best of Online Shopping, Ballantine Books, 2001
Simpson Paul, Online Shopping: The rough Guide,3rd edition, 2000
Lillian Clark and Peter Wright, A review of Common Approaches to understanding

Online Consumer Behaviour, PP- 5.87- 5.122
Tonita Perea Monsuwe, Benedict G. C. Dellaut and KodeRuyter, What Drives

Consumers to shop Online? A literature review, PP- 765-789.
Donthu, Naveen and Adriana Garcia (1999), The Internet Shopper, Journal of
Advertising Research, V39 (3), 52-58.
Research report By: IAMAI
Emerald, Framework for consumers intentions to shop online, research report

Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and NO.2, 2005
http://en.wikipedia.org/wiki/online_shopping
www.iaciis.org/iis/2006_iis/PDFs/Changchit.pdf
http://www.ibimapublishing.com/journals/CIBIMA/2010/854516/854516.pdf
www.Naaptol.com
www.Homeshop18.com
http://www.i itstories.com/2011/08/02/naaptol-onlineshopping- portal
http://www.naaptol.com/termsconditions/ paymentReturns.html
http://www.naaptol.com/help/paymentOptions.html
http://www.naaptol.com/termsconditions/privacypolicy.html
http://www.naaptol.com/terms-conditions/refunds.html
http://www.naaptol.com/help/shippingOptions.html
http://wiki.answers.com/Q/What_is_naaptol_all_about

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Lovely Kumar Verma

INSTITUTE OF MANAGEMENT STUDIES

I LOVELY KUMAR VERMA, here by declare that the research entitled

Naaptol and Homeshop18 based on

consumer response is the result of original work done by me in the Institute

I am really indebted to my department Institute of management Studies

LOVELY KUMAR VERMA

1.1 ONLINE SHOPPING IN INDIA

Because of the technological development and enhancing the number of internet

1.3 Research Background

What is unique about the Naaptol?

Products Available on Naaptol.com

HomeShop18 is an integrated technology platform that enables sellers to showcase,

Windows. Today, it operates in a multimedia environment including Internet, TV and via

Kids & Toys

What are the top selling products at Homeshop18?

Key statistics of Homeshop18 business:

51% of the business comes from TV channel ; Internet constitutes only15%

Some Facts about HOME SHOP 18

2.0 LITERATURE REVIEW

This chapter describes the problem statement and research objectives. It

Problem Statement and Formulation

Objectives of the Study

Scope of the study

Research design: The study is descriptive& analytical in nature.

Annual reports of the selected companies.

Tools and Methods of Data Analysis

Significance of the Study

Limitations of the Study

be broadly stated as the limitations of the present research work:

The accuracy of the results is limited to the reliability of the methods of

and having knowledge of product.

24. Easy in payment processing.

Analysis of Marketing Practices

This chapter covers responses from customers of selected organizations. 100

consumer Perception on the basis of product variety

consumer Perception on the basis of product quality

hypothesis is rejected and there exists significant difference in consumer perception on

consumer Perception on the basis of various known brand

consumer Perception on the basis of filter and selection of product

consumer Perception on the basis of list of products available on website

consumer Perception on the basis of competitive price

As seen from table 4.2.6 on the basis of products at competitive price,

consumer Perception on the basis of discounting facility

consumer Perception on the basis of seasonable offer

Table: 4.2.12 consumer Perception on the basis of fast delievery system

The function of promotion is to affect the customer behaviour in order to close a

consumer Perception on the basis of company has effective sales

consumer Perception on the basis of company advertisement are

consumer Perception on the basis of company has effective direct

G) Physical Evidence Mix

appealing visually is much better

as comparison to naaptol. As the value of F(241.084) is

Both e-retailer provide cash on delivery facility but in case of Homeshop18 as

Kothari C.R.; Research Methodology, New Age, New Delhi, 2007.

Ramaswamy V.S., Namakumari S.; Marketing Management, Macmillan India Ltd,

Principles of Marketing, Philip Kotler and Gary Armstrong, Part 4: Extending

Marketing Management, Philip Kotler, Part 2: Analysing Marketing Opportunities,

Russakov Evgenii, Online shopping through consumers eyes, Am Navigator, 2008.

Price Lisa, The best of Online Shopping, Ballantine Books, 2001

Simpson Paul, Online Shopping: The rough Guide,3rd edition, 2000

Lillian Clark and Peter Wright, A review of Common Approaches to understanding

Tonita Perea Monsuwe, Benedict G. C. Dellaut and KodeRuyter, What Drives