SUMMER TRAINING PROJECT REPORT

On

“A Detail Analysis of Traditional Marketing Vs Digital

Marketing”

Towards partial fulfillment of

Master of Business Administration (MBA)

(BBD University, Lucknow)

Submitted to: Submitted by:

Ms. Harleen Kaur Priya Mishra

(Assistant Professor) Roll No. 1170672092

Session 2018-2019

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.)

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ii
 DECLARATION
I do hereby declare that all the work presented in the research report entitled

“A Detail Analysis of Traditional Marketing Vs Digital Marketing” is carried out

and being submitted at the school of management for the award of Master of

Business Administration, is an authentic record of Priya Mishra. The work is

carried out under the guidance of Ms. Harleen Kaur (faculty guide). It hasn’t been

submitted at any other place for any other academic purpose.

Priya Mishra

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 ACKNOWLEDGEMENT

Achievement is finding out what you would be then doing, what you have to do. The

higher the summit, the harder is the climb. The goal was fixed and we began with a

determined resolved and put in ceaseless sustained hard work. Greater challenge,

greater was our effort to overcome it.

This Research project work, which is my first step in the field of professionalization,

has been successfully accomplished only because of my timely support of my guide. I

would like to pay my sincere regards and thanks to those, who directed me at every

step in my Research project work.

I take this opportunity to extend my sincere gratitude and profound obligation towards

my Project report guide Ms. Harleen Kaur for giving me valuable suggestions &

guidance rendered to me throughout the Research project without their

encouragement and continuing support, this Research project would not have been

possible.

I am highly thankful to other faculty members whose able guidance in this project

makes my way simple & easy.

Priya Mishra

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 PREFACE
Research Report is an important part of the Management studies. It bears immense

important in the field of Business Management. It offers the student to explore the

valuable treasure of experience and an exposure to real work culture followed by the

industries and thereby helping the students to bridge gap between the theories

explained in the book and their practical implementations.

Research plays an important role in future building of an individual so that

we can understand the real world in which he has to work in future. The theories

greatly enhance our knowledge and provide opportunities to blend theoretical with the

practical knowledge where researcher gets familiar with certain aspect of research. I

feel proud to get myself to do research at topic “A Detail Analysis of Traditional

Marketing Vs Digital Marketing”.

(Priya Mishra)

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

marketers know the factors affecting online Indian behavior, 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 existing 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.

Consumer behavior is said to be an applied discipline as some decisions are significantly

affected by their behavior or expected actions. The two perspectives that seek application of its

knowledge are micro and societal perspectives.

The online purchasing behavior of online shoppers and factor influencing online shopping

behavior and its future perspective. 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 to convey, communicate and disseminate information, to sell

the product, to take feedback 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.

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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 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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 TABLE OF CONTENT

1. Certificate ii

2. Declaration iii

3. Acknowledgement iv

4. Preface v

5. Introduction 1

6. Literature Review 18

7. Company Profile 32

8. Research Objectives 60

9. Research Methodology 62

10. Data Analysis 64

11. Findings 78

12. Conclusion 80

13. Suggestions 82

14. Limitation 84

15. Bibliography 86

16. Annexure 88

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Introduction

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 Introduction
TRADITIONAL MARKET, HOW ARE YOU TODAY ?

BUSINESS ESTABLISHMENT IN RETAIL

There has been tough competition in the retail sector since modern retailers started to

play a part in the Indonesian retail industry. small retailers are marginalized from the

market because they cannot compete with larger modern retailers. Many factors have

contributed to the rapid growth of the retail industry. Among them was the retail

liberalization policy which removed the retail industry from the list of industries

closed to foreign investment. This policy was encapsulated in Presidential Decree No.

96/2000 on Business Fields that are Closed to Investments and Business Fields that

are Conditionally Open for Investment, and in Presidential Decree No. 118/2000 on

the Amendments to Presidential Decree No. 96/2000. These regulations regulate the

trading services sectors and the supporting sectors that are closed to investment from

companies supported by foreign capital or foreign legal bodies. The decrees exempt

large-scale retail trade (malls, supermarkets, department stores, and shopping centers)

The retail industry holds a strategic position in Indonesia’s economy, and is part of

the backbone of the national economy. In 2003, retail business potential reached

Rp600 trillion and it contributed 20% to gross domestic product. The rapid growth of

the modern retail industry is currently causing a shift in the retail market share, where

modern retail is eating more and more into the traditional retail share. Slowly but

surely, modern retail is controlling retail market share.

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On one hand, sharp competition in the retail industry can be positive for consumers as

it results in increased choices for consumers. Retailers with large amounts of capital

behind them can easily provide consumers with a variety of products with different

prices and quality, safety,comfort, and cleanliness. They have a virtually unlimited

capacity for value creation, which gives them more power in the retail industry. On

the other hand, a negative impact of this can be the marginalization of traditional and

small-scale retailers. Without any assistance from the government, small-scale

retailers with their limited financial and management capacity will suffer.

PRESENCE OF MODERN MARKET VS EXISTENCE OF TRADITIONAL

MARKET

The impact of modern market on the existence of traditional markets has recently

become a topic of public debate. The Indonesian Economic Recovery has brought the

positive sentiment for growth in retail business. With the mushrooming of foreign

supermarkets in many cities, many parties have expressed the opinion that the

traditional market is the main victim of competition between traditional and modern

markets.

That opinion didn’t wrong but not absolutely true either. On the one hand, modern

markets are managed in a professional way and have excellent facilities, while on the

other hand, traditional markets still struggle with the classic problems of

unprofessional management and inconvenience for shoppers. Modern and traditional

markets compete in the retail sector. Almost all products sold in traditional markets

are also available in modern markets, especially hypermarkets. So that the presence of

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the modern market have been signs that the traditional market experiencing a drastic

decline in income and profit.

Nevertheless, the opinion that the presence of modern markets is the main cause of

the decline of traditional markets is not entirely correct. Almost all traditional markets

in Indonesia are still struggling with internal problems such as poor management,

very limited facilities and infrastructure, the constant increase in the

number of street vendors that reduces the number of customers buying from market

traders, and the minimum amount of capital assistance available for traditional

traders. Surely, this situation indirectly benefits modern markets.

The superiority of modern over traditional markets lies in the fact that the former can

sell the same products at lower prices, in addition to the comfort and different

payment options they offer shoppers. Furthermore, the supermarkets and

hypermarkets establish business links with large suppliers, usually for an extended

period of time. This enables them to operate efficiently, benefitting from the

economies of scale.

THE IMPACT OF MODERN MARKET ON TRADITIONAL MARKET

The main reasons why traditional markets can not compete with supermarkets are

their weak management and inferior infrastructure, not because of the presence of

supermarkets alone. Supermarkets actually gain advantages from the unfavorable

conditions that prevail in traditional markets. The main steps that must be taken to

ensure the survival of traditional markets are the improvements of market facilities

and infrastructure, finding a solution to the problem of street vendors around the

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markets, and the improvement of management systems, both in the offices of market

management and in the traditional markets themselves.

Despite their unfavorable situation, some traditional markets have been able to

survive because they are well managed and attention is given to such aspects as

cleanliness, comfort, and security for shoppers. The advantages of traditional markets

lie in specific features that modern markets do not have, such as a buying and selling

process that allows bargaining over prices and an environment that enable sellers and

buyers to become acquainted.

PROBLEMS OF THE TRADITIONAL MARKET

a. Poor Condition of Tradtional Market

A major problem for a large number of traditional markets in big cities is that the

markets are in poor condition. They are narrow, dirty, muddy, musty and foul-

smelling, and their access roads are congested. These markets have generally been in

operation for decades and have undergone several renovations. The poor state of

these markets has pushed the regional governments to modernize and renovate market

buildings, transforming them into multi-story buildings, which use land more

efficiently and can therefore house more sellers and provide more space for shoppers.

The transformation of traditional markets into multi-story markets creates a number

of problems. The current multi-story structures reduce the security and comfort of

both traders and buyers. Problems include stairways that are steep and difficult to

climb, narrow trading stalls, and a lack of trash facilities, clean water, adequate

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guttering, ventilation, and parking space. The steep stairways and high stairs in the

market also make buyers reluctant to shop on the top floor of the market. Because

it is difficult for buyers to carry their goods up and down the stairs with such

stairways. It is also difficult for the market traders to carry their stock via such

stairways. As a result, many traders from the top floors have moved to lower floors or

have become street vendors.

Multi-story markets disadvantage not only traders on the top floor, but also those

trading on the lower floors. Those trading in the basement, which is accessible via a

stairway from the ground level, complain about the mustiness and foul smell caused

by inadequate ventilation. Air in the basement cannot circulate properly because it is

built below the ground. Those shopping in the basement find it to be hot, humid, and

foul-smelling, and so do not shop for very long. This situation is worsened when there

are piles of garbage scattered around.

a. Regulation of Retribusi Payment

Retribusi is defined as a government (at all local levels) levy that is collected as a

payment in return for a service. This wording would suggest that the government

provides and maintains adequate service infrastructure in return for the payment of

retribusi from service users. Using this logic, the payment of retribusi should be a sign

that service users rights have been fulfilled by the government. .

In fact, there were still many local regulations that do not regulate retribusi in a

detailed or comprehensive manner. Furthermore, the amount of retribusi charged does

not officially differ between traders who own one stall or traders who own a number

of stalls. The amount of retribusi paid should be based strictly on the number

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of stalls owned. In addition to these retribusi payments, market traders are also

required to pay a “voluntary” annual Lebaran fee of between Rp5,000 and Rp10,000

intended as a holiday bonus for the cleaning and security staff at the market.

In the return for the retribusi payment, all traders in traditional market would expect

something that is, comfortable trading facilites and a clean market environment.

However, many traders explain that the markets still do not provide a comfortable

shopping environment and that the lack of cleanliness is still a serious problem,

muddy state of the markets. This current situation may be caused by the minimal

retribusi funds that must be allocated for improving market services standards.

b. Street Vendors

The increased number of street vendors setting up outside market buildings is one of

the many major problems faced by traditional markets. The presence of street vendors

makes the market seem dirty and disorganised, which is a common sight in traditional

markets. Their presence also threatens the business of traders renting stalls inside the

market. The growing number of street vendors near markets is closely linked to

problems of market management, therefore, efforts to overcome the effects of the

presence of street vendors at markets must come from good market management.

The Presence of Street vendors trade around the market forming a “rival market”.

Street vendors are often spread along the street, right to the sidewalks, and often cause

traffic jams and general disorder, adding to the general unpleasentness of shopping at

traditional market. The public transport routes are also being affected by the presence

of street vendors. Public transport drivers are often forced to take alternative routes or

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set passengers down a fair distance from the market. As a result of these access

difficulties, more and more people are disinclined to shop in the market. The problem

is actually linked to the management of the individual market because, in reality, the

presence of street vendors has increased the amount of retribusi collected.

Another factor that explains the lack of development among traditional markets is the

minimum of support offered to traditional traders. Characteristically, their planning

strategies are poor, their access to capital is limited because they do not have

sufficient collateral, there is no networking with large suppliers, and their

management is poor. The method of market management, which is oriented towards

reaching retribusi targets, can only make matters worse for traditional markets.

Therefore, apart from paying retribusi collection, the comfort and orderliness of the

market for both shoppers and traders must not be disregarded. The realization of these

goals and support from all stakeholders will ensure the sustainability of traditional

markets.

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 In its original context a traditional market is defined as a physical place where

buyers and sellers meet in order to make exchanges

As children of the 80‟s, the Internet and consequently had the chance not only to

experience the traditional way of commerce, but also ecommerce and its development

over the last years. For this reason, and as academics within the field of business

administration, the authors have found it very interesting to investigate what actual

factors that consumers consider when they chose to go either to the traditional and

physical marketplace or the Web-based marketplace on the Internet. In short, the

authors would like to understand why people chose either one or the other option.

The Internet, as a mean for both firms and individuals to conduct business, is

nowadays one of the most widely used non-store formats.With popular trends and

demands the concept of the Internet as the way forward to increase profit margins,

companies new and old are creating websites here and there. The significance for

retailers to having a web site is that a web site is informational and transactional in

nature, as the web site can be used for advertising and direct marketing; sales;

customer support and public relations.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.

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 to convey, communicate and disseminate

information, to sell the product, to take feedback and also to conduct satisfaction

9
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.

A brand is the idea or image of a specific product or service that consumers connect

with, by identifying the name, logo, slogan, or design of the company who owns the

idea or image. Branding is when that idea or image is marketed so that it is

recognizable by more and more people, and identified with a certain service or

product when there are many other companies offering the same service or product.

Advertising professionals work on branding not only to build brand recognition, but

also to build good reputations and a set of standards to which the company should

strive to maintain or surpass. Branding is an important part of Internet commerce, as

branding allows companies to build their reputations as well as expand beyond the

original product and service, and add to the revenue generated by the original brand.

Initially, Branding was adopted to differentiate one person's cattle from another's by

means of a distinctive symbol burned into the animal's skin with a hot iron stamp, and

was subsequently used in business, marketing and advertising.

Customer perception is a marketing concept that encompasses a customer's

impression, awareness and/or consciousness about a company or its offerings.

Customer perception is typically affected by advertising, reviews, public relations,

social media, personal experiences and other channels.

Consumer behavior is the study of individuals, groups, or organizations and the

processes they use to select, secure, and dispose of products, services, experiences, or

ideas to satisfy needs and the impacts that these processes have on the consumer and

society. It blends elements from psychology, sociology, social anthropology and

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economics. It attempts to understand the decision-making processes of buyers, both

individually and in groups. It studies characteristics of individual consumers such as

demographics and behavioral variables in an attempt to understand people's wants. It

also tries to assess influences on the consumer from groups such as family, friends,

reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer

playing the three distinct roles of user, payer and buyer. Research has shown that

consumer behavior is difficult to predict, even for experts in the field. Relationship

marketing is an influential asset for customer behaviour analysis as it has a keen

interest in the re-discovery of the true meaning of marketing through the re-

affirmation of the importance of the customer or buyer. A greater importance is also

placed on consumer retention, customer relationship management, personalization,

customization and one-to-one marketing. Social functions can be categorized into

social choice and welfare functions.

The ultimate goal of most businesses is to increase sales and income. Ideally, you

want to attract new customers to your products and encourage repeat purchases.

Brand awareness refers to how aware customers and potential customers are of your

business and its products. Brand Awareness is the extent to which a brand is

recognized by potential customers, and is correctly associated with a particular

product. Expressed usually as a percentage of target market, brand awareness is the

primary goal of advertising in the early months or years of a product's introduction.

Brand awareness is the extent to which the consumer associates the brand with the

product he desires to buy. It is the brand recall and the brand recognition of the

company to the consumers. Brand recall is the ability of the consumer to recollect the

brand with reference to the product whereas brand recognition is the potential of the

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consumer to retrieve the past knowledge of the brand when enquired about the brand

or shown an image of the brand logo. Brand awareness is an essential part of brand

development which helps the brand to stand out from the others in this

monopolistically competitive market.

Digital marketing involves the promotion of products and services using digital

distribution channels that reach consumers in a timely, relevant, personal, and cost

effective manner. At a high level, digital channels can have many categories, such as

the internet, mobile, digital outdoors, and any form of interactive digital media. Each

category has multiple digital tools/ sub-channels that can support digital marketing.

These include:

 Internet- Email banner ads, dedicated websites, pop-up ads, sponsored content,

paid keyword search, podcasts, etc… Newer channels comprise social

networks, blogs, wikis, widgets, virtual words, online gaming etc…

 Mobile- SMS,MMS, mobile Web, mobile application and mobile video

 Digital outdoors – Stills,/ video digital display, interactive kiosks

 Interactive digital medium – interactive television channels

Any combination of the above channels can be used to gain maximum visibility

with utmost impact among targeted customers, thereby enabling more business at a

reasonable cost. While digital channels empower marketers with a tremendous

advantage in terms of their extensive reach, leveraging their potential requires

effective management of multiple channels with complex variables to realize optimal

value.

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INTERNET USAGE IN INDIA

Internet in India report says that India’s internet user base has gone well above 100

million – that’s just fewer than 10% of the population. India’s internet user base was

growth was very sluggish until 2007-08, but has picked up rapidly thereafter.

At about 150 million Internet users, India now has 3rd largest Internet population in

the world after China (at 575m) and the US (at 275m). At 150 million total Internet

users, the Internet penetration in India remains at 12 per cent vs. 43 per cent in China

and 80 per cent in the US. However, the low penetration means that India presents

unmatchable growth opportunity for the Internet sector in coming years. In our view,

India will likely see golden period of the Internet sector between 2013 to 2018 with

incredible growth opportunity and secular growth adoption for E-Commerce, Internet

advertising, social media, search, online content, and services relating to E-Commerce

and Internet advertising.

Here is the India Internet outlook for 2013, the first year for this golden period.

 Internet penetration will reach 15%. Expect India to add 30 million new

Internet users in 2013 and total Internet population to touch 180mm. This

implies a 20% growth in the Internet population.

 Time spend online will rise and directionally become comparable to US and

China. As per research estimates, an Internet user in India on average is

spending 13 hour per week and this number will likely reach 16 hours per

week. The incremental time spend online will largely be spent on social

media, photo/video sharing, E-Commerce, and utilities/banking/bill payments.

 Mobile Internet users to touch 100M. India has nearly 950 million mobile

subscribers and close to 50 million or fewer than 6 per cent of these mobile

subscribers access Internet via mobile handsets. And estimate that in 2013 the

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 mobile Internet penetration will go up from close to 6 per cent to 10 per cent

and India could double its mobile Internet population in 2013 at 100 million

estimated mobile Internet users by end of 2013.

 Internet usage will likely grow faster for female and from home. So far India

Internet usage is heavily screwed towards male gender and from work and

educational establishments. In 2013, Internet usage will grow much faster for

female and from home access. This acceleration will likely happen due to

overall Internet adoption moving to masses.

 E-Commerce will likely touch $900M in 2013. As per the estimates, in 2012

India E-Commerce reached $550 million in gross revenue and we expect E-

Commerce to touch $900 million in gross revenue by end of 2013.

 Majority of E-Commerce growth will come from emerging cities. While, top

8 cities in India may remain at 45 per cent to 65 per cent of total E-Commerce

for various E-Commerce companies, we believe that higher growth delta for

E-Commerce in 2013 will come from emerging cities. We define emerging

cities as the cities other than Top-40 cities in India e.g. Bhatinda in Punjab or

Kota in Rajasthan.

 Internet advertising will be the fastest growing sub-sector of the India Internet.

As per the estimates, India Internet advertising generated $300 million in

revenue in 2012 and can double in 2013 to reach $600 million. Also believe

that lots of Internet advertising growth will come due to the rise in social

media, mobile Internet, and non-search and content driven online ad formats

such as lead generation, affiliate marketing, and email marketing etc.

 Funding environment for the Internet start-ups to remain challenging in 2013.

Funding environment for the Internet start-ups to remain challenging in 2013

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 in India. In last 17 years, India has created less than $5 billion in Internet

market capitalization vs. $600 billion by US Internet sector and $250 billion

by Chinese Internet sector. Lot many Internet companies have to become a lot

bigger for the funding environment to ease off.

 E-Commerce will likely see emergence of disruptive business models and

consolidation. E-Commerce companies that are focusing on fundamental

issues will likely disrupt the E-Commerce industry in 2013. On one hand, the

fundamental issues are the issues that matter for improving customer

experiences and the state of the ecosystem, on other hand focusing on

fundamentals of business vs. throwing money at the problem will become

absolutely imperative. Majority of the inventory led E-Commerce business

models will likely either merge with each other or take a niche vertical

position.

 Start-up culture and ecosystem to become more widespread. In our view, the

start-up culture and start up ecosystem are becoming more widespread. The

seed and angel rounds are no longer limited to Mumbai, Delhi or Bangalore

and emergence of start-up is no longer limited to IITs or big cities. While,

India has long way to go vs. having a true Silicon Valley start-up culture,

ecosystem and support system, India is headed in that direction. Founding a

start-up immediately after graduation or leaving a rewarding corporate job to

join a start-up, or find or become an angel investor is no longer uncommon.

While, the 2013 Internet funding environment will likely be challenging, the

overall Internet start-up ecosystem will become stronger and more ubiquitous.

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RETAILING

Retailing is selling of merchandise and certain services to the consumer. Retailing

began several thousand years ago. The activities involved in the selling of goods to

ultimate consumers for personal or household consumption. It is extremely

competitive, and the failure rate of retail establishments is relatively high. Price is the

most important arena of competition, but other factors include convenience of

location, selection and display of merchandise, attractiveness of the establishment,

and reputation. The diversity of retailing is evident in the many forms it now takes,

including vending machines, door-to-door and telephone sales, direct-mail marketing,

the Internet, discount houses, specialty stores, department stores, supermarkets, and

consumer cooperatives.

Whatever form it takes, however, the essence of good retailing remains the same:

attractive, appropriate merchandise offered for sale in an attractive, eye-catching

manner at a reasonable price at a convenient location.

It ordinarily involves the selling of individual units or small lots to large numbers

of customers by a business set up for that specific purpose. In the broadest sense,

retailing can be said to have begun the first time one item of value was bartered for

another. In the more restricted sense of a specialized, full-time commercial activity,

retailing began several thousand years ago when peddlers first began hawking their

wares and when the first marketplaces were formed.

As with most other business activities, retailing is extremely competitive, and the

mortality rate of retail establishments is relatively high. The basic competition is price

competition, but this is moderated somewhat by such non-price forms of competition

as convenience of location, selection and display of merchandise, attractiveness of the

retail establishment itself, and intangible factors such as reputation in the community.

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Competition for sales has led to a blurring of traditional product lines in retailing, and

many establishments offer a much wider variety of merchandise than their basic

classification would indicate (e.g., drugstores may carry food, clothing, office

supplies, hardware, etc.).

Convenience

Convenience factor refers that it is easy to browse or search the information

through online is easier than the traditional retail shopping. Through online,

consumers can easily search product catalogue but if the consumer look generally for

the same product or item in a traditional store manually it is difficult to visit

physically and time consuming also. Convenience has always been a prime factor for

consumers to shop online. According to the Robinson, Riley, Rettie and Wilsonz

(2007) the major motivation for online purchasing is convince in terms of shop at any

time and having bundles of items delivered at door step.

Rohm and Swaminathan’s (2004) claims in “typology of online shoppers into”:

Convenience shoppers, balanced buyers, variety seekers and store-oriented shoppers,

based upon their present shopping motivation. Through online purchase consumers

can easily compare the price than the traditional purchase. So price comparison is also

another convenience factor of online shopping.

Time saving

Time savings is one of most influencing factors of online shopping. Browse or

search an online catalogue can save time and patience. People can save time and can

reduce effort by shopping online. One possible explanation that online shopping saves

time during the purchasing of goods and it can eliminate the traveling time required to

17
go to the traditional store. On the other side, some respondent think that it is also time

taken for delivery of goods or services over online shopping.

Unexpectedly time saving is not the motivating factor for the consumers to shop

online (Corbett, 2001) because it takes time receiving goods or delivery. But time

saving factor can be seen through different dimensions i.e. “person living in Florida

can shop at Harod’s in London (through the web) in less time than it takes to visit the

local Burdines department store”. So the importance of the time saving factor cannot

be neglected as motivation behind online purchasing.

INTRODUCTION TO TRADITIONAL MARKET

A market, or marketplace, is a location where people regularly gather for the

purchase and sale of provisions, livestock, and other goods.[1] In different parts of the

world, a market place may be described as a souk (from the Arabic), bazaar (from

the Persian), a fixed Spanish, or Mexico, or Philippines. Some markets operate on

most days; others may be held once a week, or on less frequent specified days.

There are many markets in India many are small, many are big and some are malls

.Where is a mall in the city there is only people and people small markets have low

prices and in malls there are very high prices for only small things. There are many

people that shop only online , just the sit in their house and the product is delivered to

you. So you can prefer small markets in India for lower prices.

HISTORY

Markets have existed since ancient times. Open air, public markets were known in

ancient Babylonia and Assyria. These markets were typically situated in the town's

centre where they were surrounded by alleyways occupied by skilled artisans, such as

18
metal-workers and leather workers. These artisans may have sold wares directly from

their premises, but also prepared goods for sale on market days. In ancient

Greece markets operated within the agora (open space).

In the Roman world, the central market primarily served the local peasantry. They

would sell small surpluses from their individual farming activities, purchase minor

farm equipment and a few luxuries for their homes. Major producers such as the great

estates were sufficiently attractive for merchants to call directly at their farm-gates,

obviating the producers' need to attend local markets. The very wealthy landowners

managed their own distribution, which may have involved exporting. The nature of

export markets in antiquity is well documented in ancient sources and archaeological

case studies.

At Pompeii multiple markets served the population of approximately 12,000.

Produce markets were located in the vicinity of the Forum, while livestock markets

were situated on the city's perimeter, near the amphitheatre. A long narrow building at

the north-west corner of the Forum was some type of market, possibly a cereal

market. On the opposite corner stood the macellum, thought to have been a meat and

fish market. Market stall-holders paid a market tax for the right to trade on market

days. Some archaeological evidence suggests that markets and street vendors were

controlled by local government. A graffito on the outside of a large shop documents a

seven-day cycle of markets; "Saturn’s day at Pompeii and Nuceria, Sun’s day at

Atella and Nola, Moon’s day at Cumae ... etc." The presence of an official

commercial calendar suggests something of the market's importance to community

life and trade. Markets were also important centres of social life.

In early Western Europe, markets developed close to monasteries, castles or royal

residences. Priories and aristocratic manorial households created considerable demand

19
for goods and services - both luxuries and necessities. These centres of trade attracted

sellers and would stimulate the growth of the town. A charter would protect trading

privileges in return for an annual fee. From the 11th and 12th century, the number of

markets and fairs burgeoned. Fairs, which were usually held annually, traded in high

value goods while regular weekly or bi-weekly markets primarily traded in

necessities. As the number of markets increased, market towns situated themselves

sufficiently far apart so as to avoid competition, but close enough to permit local

producers a round trip within one day (about 10 Km).

Braudel and Reynold have made a systematic study of these European market

towns between the thirteenth and fifteenth century. Their investigation shows that in

regional districts markets were held once or twice a week while daily markets were

common in larger cities. Gradually over time, permanent shops that opened daily

began to supplant the periodic markets and peddlers or itinerant sellers filled in the

gaps in distribution. The physical market was characterised by transactional exchange.

Shops had higher overhead costs, but were able to offer regular trading hours and a

relationship with customers. The economy was characterised by local trading in which

goods were traded across relatively short distances. Braudel reports that, in 1600,

grain moved just 5-10 miles; cattle 40-70 miles; wool and wollen cloth 20-40 miles.

However, following the European age of discovery, goods were imported from afar -

calico cloth from India, porcelain, silk and tea from China, spices from India and

South-East Asia and tobacco, sugar, rum and coffee from the New World.

English market towns were regulated from a relatively early period by a system of

charters. The English monarchs awarded a charter to local Lords to create markets

and fairs for a town or village. This charter would grant the lords the right to take tolls

and also afford some protection from rival markets. For example, once a chartered

20
market was granted for specific market days, a nearby rival market could not open on

the same days. Across the of England, a network of chartered markets sprang up

between the 12th and 16th centuries, giving consumers reasonable choice in the

markets they preferred to patronise. However, as the number of charters granted

increased, competition between market towns also increased. In response to

competitive pressures, towns invested in a reputation for quality produce, efficient

market regulation and good amenities for visitors such as covered accommodation. By

the thirteenth century, counties with important textile industries were investing in

purpose built halls for the sale of cloth. A sixteenth century commentator, John

Leland, described particular markets as “celebrate,” “very good and quik,” and,

conversely, as “poore,” “meane,” and “of no price." Gradually, over time, some

products became associated with particular places, providing customers with valuable

information about the types of goods, their quality and their region of origin. In this

way, markets helped to provide an early form of product branding. Gradually,

individual market towns earned a reputation for providing quality produce. Today,

traders and showmen jealously guard.

INTRODUCTION TO ONLINE MARKET

Online market, commonly known as ecommerce, is a type of industry where buying

and selling of product or service is conducted over electronic systems such as the

Internet and other computer networks. Electronic commerce draws on technologies

such as mobile commerce, electronic funds transfer, supply chain management,

Internet marketing, online transaction processing, electronic data interchange (EDI),

inventory management systems, and automated data collection systems. Modern

electronic commerce typically uses the World Wide Web at least at one point in the

21
transaction's life-cycle, although it may encompass a wider range of technologies such

as e-mail, mobile devices social media, and telephones as well.

Electronic commerce is generally considered to be the sales aspect of e-business. It

also consists of the exchange of data to facilitate the financing and payment aspects of

business transactions.

E-commerce can be divided into:

 E-tailing or "virtual storefronts" on websites with online catalogues,

sometimes gathered into a "virtual mall"

 The gathering and use of demographic data through Web contacts and social

media

 Electronic Data Interchange (EDI), the business-to-business exchange of data

 E-mail and fax and their use as media for reaching prospective and established

customers (for example, with newsletters)

 Business-to-business/ Business-to-Customer buying and selling

 The security of business transactions etc…

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Growth and progression of E-commerce in India

The e-commerce market in India has grown by 34% in the last seven years, was

about USD 600 million in 2011-12 and is expected to touch USD 9 billion by 2016

and USD 70 billion by 2020. According to Forrester, the Indian e-commerce market is

expected to grow at a CAGR of over 57% between 2012 and 2016, which is the

fastest within Asia-Pacific region.

The key factors that are driving this growth are the rise of Internet usage (growing

at 20%) & 3G penetration, and increasing smartphone users with availability of

Internet on mobile phones. It is estimated that currently there are 27 million mobile

Internet users in India out of which 4% are buying products on mobile. This figure is

expected to increase to 20% mobile shoppers in the next four years. These factors

accompanied by busy lifestyles, traffic congestion, lack of offline shopping time,

great deals and discounts offered online, and use of innovative e-commerce models

such as group buying and second-hand sales have led to more and more consumers

switch to online shopping. With the rising middle class incomes, global exposure and

changing demographics (close to 50% of the population is less than 25 years of age),

this trend also holds true for the Tier II & III cities.

Online travel (76 percent) and financial services (10 percent) form the biggest

component of online shopping followed by e-tailing (8 percent). While services such

as travel tickets, movie tickets, restaurant discount vouchers, hotel bookings, utility

payments, insurance policies, and premium payments lead the wallet share of the

amount spent online, product categories such as computers & accessories, cameras &

mobiles, electronic durables, and books are picking up. But, product categories such

as apparel, jewellery and footwear (require high touch and feel), which offer

23
maximum potential in terms of market size, faces challenges such as high return rate

and negative cash cycles due to COD (cash on delivery).

However, the e-commerce industry today faces certain challenges. Firstly, there is a

very low penetration of credit/debit cards in India, which restricts the online

purchasing power. Even though strategies such as cash on delivery have been

introduced, they have their own nuances and pose high working capital issues to the

companies. Secondly, high volume items such as refrigerators require high freight &

shipping costs and because the e-commerce model in India is based on free shipping

concept, sale of such items online could suffer a setback. Finally, the distribution &

logistics in India is not very well organized and prone to fraud. Hence, buying of high

value items such as jewellery, electronic goods (LCDs), which require travel

insurance adding up to the total costs may not be one of the bestsellers in the digital

space.

The key to success in this segment is delivering high quality user experience which

includes differentiated and detailed product catalogue, order fulfillment, website

performance, different modes of transaction(credit cards, payment gateways, cash on

delivery etc.), and simple and sensible checkout. Furthermore, with the increase in

competition in this segment, the e-commerce players need to invest in research and

development of differentiated product catalogues, innovative service and customer

engagement concepts, and cost effective supply chain and logistics models.

Traditional market verses online market

Online market is very much like traditional commerce. It also involves and exchange

of goods. But the exchange of goods is conducted online. Technologies such as email,

electronic data interchange and electronic fund transfer are used to track transactions

24
and receive payments. Some of the differences between electronic commerce and

traditional commerce are explained briefly below.

1. Cost effective

E-commerce is very cost effective when compared to traditional commerce. In

traditional commerce, cost has to be incurred for the role of middlemen to sell the

company’s product. The cost incurred on middlemen is eliminated in e-commerce as

there is a direct link between the business and the customer. The total overhead

cost required to run e-business is comparatively less, compared to traditional business.

For example, in running an e-business, only a head office is required. Whereas in

traditional method, a head office with several branches are required to cater to the

needs of customers situated in different places. The cost incurred on labour,

maintenance, office rent can be substituted by hosting a website in e-business method.

2. Time saving

It takes a lot of time to complete a transaction in traditional commerce. E-commerce

saves a lot of valuable time for both the consumers and business. A product can be

ordered and the transaction can be completed in few minutes through internet.

3. Convenience

E-commerce provides convenience to both the customers and the business. Customers

can browse through a whole directories of catalogues, compare prices between

products and choose a desired product any time and anywhere in the world without

any necessity to move away from their home or work place.

E-commerce provides better connectivity for its prospective and potential customers

as the organization’s website can be accessed virtually from anywhere, any time

through internet. It is not necessary to move away from their work place or home to

locate and purchase a desired product.

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4. Geographical accessibility

In traditional commerce, it may be easy to expand the size of the market from regional

to national level. Business organizations have to incur a lot of expenses on investment

to enter international market. In e-commerce it is easy to expand the size of the

market from regional to international level.

By hosting a website, by placing advertisements on the internet and satisfying certain

legal norms, a business can penetrate into global market. It is quite easy to attract

customers from global markets at a marginal cost.

5. Introduction of new products

In traditional commerce, it takes a lot of time and money to introduce a new product

and analyze the response of the customers. Initially, cost has to be incurred to carry

out pilot surveys to understand the taste of the customers.

In e-commerce, it is easy to introduce a product on the website and get the immediate

feedback of the customers. Based on the response, the products can be redefined and

modified for a successful launch.

6. Profit

E-commerce helps to increase the sales of the organization. It helps the organization

to enjoy greater profits by increasing sales, cutting cost and streamlining operating

processes.

The cost incurred on the middlemen, overhead, inventory and limited sales pulls down

the profit of the organization in traditional commerce.

7. Physical inspection

E-commerce does not allow physical inspection of goods. In purchasing goods in e-

commerce, customers have to rely on electronic images whereas in traditional

commerce, it is possible to physically inspect the goods before the purchase.

26
8. Time accessibility

Business is open only for a limited time in traditional commerce. Round the clock (24

x 7) service is available in e-commerce.

9. Product suitability

E-commerce is not suitable for perishable goods and high valuable items such as

jewellery and antiques. It is mostly suitable for purchasing tickets, books, music and

software. Traditional commerce is suitable for perishables and touch and feel items.

Purchasing software, music in traditional commerce may appear expensive,

10. Human resource

To operate in electronic environment, an organization requires technically qualified

staff with an aptitude to update themselves in the ever changing world. E-business has

difficulty in recruiting and retaining talented people.

Traditional commerce does not have such problems associated with human resource

in non electronic environment.

11. Customer interaction

In traditional commerce, the interaction between the business and the consumer is a

“face-to-face”.

In electronic commerce, the interaction between the business and the consumer is

“screen-to-face”. Since there is no personal touch in e-business, companies need to

have intimate relationship with customers to win over their loyalty.

12. Process

There is an automated processing of business transactions in electronic commerce. It

helps to minimize the clerical errors.

There is manual processing of business transactions in traditional commerce. There

are chances of clerical errors to occur as human intervention takes place.

27
13. Business relationship

The business relationship in traditional commerce is vertical or linear, whereas in

electronic commerce the business relationship is characterized by end-to-end.

14. Fraud

Lot of cyber frauds take place in electronic commerce transactions. People generally

fear to give credit card information. Lack of physical presence in markets and unclear

legal issues give loopholes for frauds to take place in e-business transactions.

Fraud in traditional commerce is comparatively less as there is personal interaction

between the buyer and the seller.

28
 Literature Review

Petrovic Dejan (2006) in his study on Analysis of consumer behavior online

explained that the most relevant behavioral characteristics of online consumers and

examine the ways they find, compare and evaluate product information. Comparison

of the newly collected survey data with the existing consumer behavior theory

resulted in detection of a number of issues related to a specific consumer group. The

purpose of this report is to translate these findings into a set of implementation

activities on strategic and technological level. Execution of these recommendations

will result in better conversion of visitors into customers and encourage customer

loyalty and referrals. The focus group of this study will be young adults aged between

eighteen and thirty-four interested in buying a mobile phone or a related product

Shun & Yunjie (2006) in their study showed that there are product types, which are

more likely to be sold online such as software, books, electronics and music. Reason

for this is that when purchasing these types of products, one does not require personal

inspection and most, if not all features, can be outlined in the product description and

images. Most products in the mobile phone family belong to this category. According

to the recent research on consumer behavior on the Internet users (Cotte, Chowdhury,

Ratenshwar& Ricci, 2006), there are four distinct consumer groups with different

intentions and motivations:

 Exploration

 Entertainment

 Shopping

 Information

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Music Videos, Lyrics - Daily updated collection of music videos and lyrics.

Majority of young adults interviewed for purpose of this research tend to be active

information seekers. A high level of technological confidence within this group tends

to be an encouraging factor when it comes to product information research online.

The following analysis presents both, focus group results and behavioral theory in a

parallel fashion divided into two main research topics:

Information Retrieval and Search Patterns

Perception of Product Information Online These two areas is mutually dependent and

particularly important in a market where consumers have the power to choose the

right product from a number of competing suppliers. Well-structured product

information that cannot be found easily online is as much of a problem as is having

easily accessible information that does not meet the consumer's expectations

Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in their study

they showed that developed into a new distribution channel and online transactions

are rapidly increasing. This has created a need to understand how the consumer

perceives online purchases. The purpose of this dissertation was to examine if there

are any particular factors that influence the online consumer. Primary data was

collected through a survey that was conducted on students at the University of

Kristianstad. Price, Trust and Convenience were identified as important factors. Price

was considered to be the most important factor for a majority of the students.

Furthermore, three segments were identified, High Spenders, Price Easers and

Bargain Seekers. Through these segments we found a variation of the different factors

importance and established implications for online book stores.

30
Harris Interactive (2009) in their study of online customer experience. The survey

found that online customer experience reached an inflection point in 2009. The

percent of consumers who have experienced problems when conducting transactions

online showed its first substantial decrease in five years -- from approximately 87% in

all previous Tealeaf surveys to 80% in 2009. While the percent of consumers

experiencing online transaction problems, at 80%, remains high (the potential online

shopping dollars impacted by transaction problems rings up at $47.6 billion), this

improvement points to a growing business focus on delivering better customer

experiences. The survey sheds light on forces driving this accelerated online customer

experience focus, including the down economy and increased consumer power due to

experience-sharing via social media. It also examines consumer behavior when

transacting online, call center behavior related to online issues and mobile commerce.

Verticals represented in the findings include retail, insurance, travel and financial

services.

31
San Francisco, CA – 6th October 2009 - the leader in online

Customer Experience Management software (CEM), today announced the results of

the 5th annual survey of online consumer behavior, commissioned by Tealeaf and

conducted by Harris Interactive® [results available at www.tealeaf.com/Harris]. The

survey found that 48% of U.S. online adults say that they are now conducting more

online transactions than they did in the past given the current economic climate.

However, 80% of adults who have conducted an online transaction in the past year

experience problems when doing so in 2009. Previous Tealeaf surveys have

consistently shown that approximately 87% were affected. This improvement over

prior years may be attributed to a growing business focus on delivering better online

customer experiences. While this reported decline in online transaction issues is good

news, online customer experience is still very much a work in progress. The

percentage of consumers affected by issues such as error messages (38%), endless

loops (19%) and login problems (28%) is still extremely high. 1 Further; the resulting

business impact is significant, as 32% of those who experience issues when

conducting transactions online.

Bikramjit Rishi (2010) in their study on online shopping is an innovative option of

distribution available in the hands of marketers. It is innovative and creative because

marketers can experiment with it in form, content, visibility and availability. In India

online shopping is considered as a relevant alternative channel for retailing and it is

now an important part of the retail experience. This research study is an empirical

study to find out the motivators and decisional influencers of online shopping. The

sample has been selected from the youth population as this group of people actually

use internet to buy online. The study highlights that reliability; accessibility and

32
convenience are the major motivator factors which motivate the Indian consumer to

buy online. Similarly, reluctance and preference are the two decisional factors which

influence the decision.

Kamali and Loker (2002), in their study Internet retail sales represent a new and

increasingly vital commercial milieu. E-commerce or electronic commerce saw sales

revenues grow 12.1 percent in 2001 to $31.4 billion a figure expected to reach $81.1

billion by 2006 (Kamali & Loker, 2002). While it is clear that many more consumers

are electing to shop online than in the past a shift in behavior that may be due to the

sense that online shopping is safer and more secure than it was initially and to the

adoption of alternative shopping avenues. This essay will examine these issues,

arguing that browsers become buyers in cyberspace as perception of safety, product

quality, and retailer reliability increase an idea also advanced by Li, Luo,

Lepkowaska-White and Russell .

Atanasov (2001) in their study it is anticipated that the worldwide market for

business-to-business and business-to-consumer e-commerce will total $3.1 trillion in

2004 as compared to $350.4 billion in fiscal 2000-2001. Among the most profitable

products and services sold online are consumer goods such as books, videos, music,

computers and other tech products, and travel (Schmerken, 2001). Other profitable

sectors include investment transactions, which Schmerken (2001) considers to have

generated a wave of corporate spending on e-commerce. The Internet and its myriad

e-commerce or marketing sites, represents what researchers believe to be the security

concerns of online shoppers and potential shoppers. These researchers and others

reported that online buyers are also concerned about security issues when making

33
online purchases. Though many consumer concerns regarding the inherent safety of

financial transactions online have been resolved through the development of

sophisticated encryption programs, many consumers require additional assurance that

their financial data will be held in confidence. Other security issues that were

identified by Mauldin and Arunachalam (2002) focus on retailer disclosures,

information risk, product risk, and familiarity with the retailer and the product.

Generally, Mauldin and Arunachalam (2002) found that intent to purchase rather than

merely browsing online increases in direct association with a sense of security and

comfort. Retailers who offer their products online are therefore advised to emphasize

product disclosure and retailer disclosure and reduced information risk in their e-

commerce sites. Though most online retailers do provide clear descriptions of security

procedures, some Internet shoppers still avoid using credit cards online. Overcoming

resistance to this fear is one of the key tasks that must be under taken.

Ogenyi Ejye Omar, Alan Hirst (2006) in their study they evaluates women's

attitude as an overall inclination towards apparel shopping online via e-mail

questionnaire. Its findings suggest that women generally show positive attitudes

towards shopping online for apparel. Women who shop for apparel online are aware

of some of the discouraging features of online shopping, but these features do not

deter them from buying online. The implication for online retailers is that they should

focus on making the experience of online shopping more accommodating and more

user -friendly. This is important because the positive features of online shopping

('convenience', 'usefulness', 'ease of use', and 'efficiency') appear to be more important

than the negative features ('lack of security', 'privacy of information' and 'online

fraud').

34
Ruiliang Yan, John Wang (2009) in their research it provides a useful framework to

help business marketers identify the effect of consumer online purchase costs on firm

performances in online and traditional channel competition. A game theory model is

developed to determine the optimal strategies for online and traditional retailers. We

demonstrate that consumer online purchase costs always have a valuable impact on

firm profits, and further show that consumer online purchase costs always have a

much more valuable impact on firm profits whenever the traditional retail transaction

costs and the product web-fit change. We also find that consumer online purchase

costs have a greater impact on the retailer's profits in a Stackel berg competitive

system than in a Bertrand competitive system. Based on our results, managerial

implications are discussed and probable paths of future research are identified.

Scott M. Smith, Chad R. Allred, William R. Swinyard (2008) in their

research paper they discusses online shopping in context of diffusion of innovation

theory. It proposes that online shopping is a discontinuous innovation whose adoption

rate is influenced by several of Rogers' (2004) diffusion deterrents. A new 12 -item

'Computer Competence Index' (CCI) is proposed and tested using data from an

internet - administered US probability study of 1800 online users. EShoppers are

profiled using a tertile split of the CCI. Each tertile's demographics, computer

activities, computer - oriented lifestyles, and online purchase activities are reported.

Evidence is presented that concepts related to the diffusion of innovation may explain

resistance in the growth of online shopping.

35
A.M. Sakkthivel (2009) in their research paper aims to identify the impact of

demographics on consumer buying behavior towards online purchase of different

products based on the involvement and investment (High, Medium and Low). It

attempts to unearth the impact of the demographics on online purchase which is at

present relatively limited. It would help the marketers to identify the demographic

profile of consumers which is otherwise not known due to the intangible nature of

internet. The findings would help the marketers to design their offerings based on the

demographic profile of online consumers and would help the online marketers to

identify and segment the online consumers which will enhance their focus and

eventually leads to financial growth.

Jianwei Hou, Cesar Rego (2007) in their study in traditional auctions, it is often

assumed that bidders are a homogenous group. However, since most online bidders

are average consumers instead of professional bidders, we suspect that online bidders

are a heterogeneous group. The purpose of this paper is to explore the types of online

bidders based on their real bidding behaviour in the context of consumer-to-consumer

online auction market. A cluster analysis is employed and four types of online bidders

are finally identified in a private value auction, namely, goal-driven bidders,

experiential bidders, focused bidders, and opportunistic bidders. The profile and

performance of each group are also discussed.

Tomomi Hanai, Takashi Oguchi (2009) in their study to investigate what kind of

information contributes to trust formation in online shopping. Twenty-seven female

undergraduate students were recruited and asked to evaluate the trustworthiness of 20

online shopping websites. All the online shopping websites dealt with branded

36
products where there is greater emphasis on the trustworthiness of online shops or

products. The results show that information described on the websites was classified

into two categories, firstly, information about the shop and its procedures and

services. Secondly, the concrete information necessary for the consumption process,

such as payment information and return information, which heightens the reliability of

these shops.The term “brand” originally refers to a “description or trademark which

indicates a type of product made by a particular company.” However, in modern

Japanese society it refers to those branded products that are perceived to have a higher

quality than other similar products. Thus, the term “brand” authenticates that its

products belong to a high-class, and the people who possess these branded

products are regarded as “exclusive people” through the “basking-in-reflected

glory process” (Cialdini, Borden, Thorne, Walker, Freeman, & Sloan, 1976). The

branded products interest female young people and recently they have been more

inclined to purchase them via online shopping. However, they tend to refrain from

purchasing these products via online shopping due to their distrust of it.

Consequently, it becomes more and more important to analyse what kind of

information contributes to trust formation in online shopping. Female Undergraduat

Students‟ Attitudes toward Branded Products First, we introduce several surveys for

determining the attitude towards, and ownership of, branded products among female

young people, especially female undergraduate students in Japan, who are the target

group of this study. Infoplant (2007) showed that nearly half of all people are

interested in some branded products. Although branded products generally attract the

attention of various kinds of people, young females are especially interested in

branded products. Infoplant (2007) revealed that more than 60% of females under 20

years of age and nearly 80% of females in their twenties have purchased some

37
branded products. Furthermore, the percentage of people who usually buy new

branded products is about 20% among females under 20 years of age and more than

10% in females in their twenties.

David Anderson (02 .02 .2006) in their research carried out by a consumer behaviour

researcher at Henley Management College has investigated what drives people to

search online. The findings reveal that convenience, time-efficiency and personal

control are the key drivers for consumers to search online, rather than cost. It also

shows that the relationship between traditional and online retailing outlets needs to be

more unified E-shopping has changed the face of retail, and surfers are now looking

for spring sale bargains. This is following a bumper e-Christmas, where Internet

shopping soared almost 50% during the 10- week run-up to Christmas 2005 (IMRG).

However, the new findings reveal that convenience and personal control are the key

drivers for consumers to search online. Dr Susan Rose, from Henley Management

College, said: “What motivates online shoppers is the ability to shop, where,

when and how they like. Nowadays people can shop over their Shreddies in the

morning. The research, that analyses data from 304 electrical goods Internet shoppers,

provides businesses with a guide to getting the information highway buzzing with

potential customers. Big-ticket items such as digital TVs, cameras, or iPods now

feature on our e-shopping list. The Internet provides a rich source of information

about brands and retail channels that enable us to search and find information to help

us with our final purchase decision. For businesses there are some steps to help them

embrace the Internet revolution with success. A key factor driving Internet use for

„online window shopping‟ is its usefulness in our personal lives. The Internet frees

time and makes the information search process, Research suggests that people search

38
online for some goods, yet buy from a traditional high street retailer, or look around

for goods in shops, then take their search online. In turn, it is essential for retailers

who operate both on and off line to ensure that they embrace a joined up process that

appears seamless to the customer. Some retailers have still to successfully unite the

two retailing methods - this is key to contemporary customer service. Factors such as

how much the medium challenges us mentally and our confidence to navigate and

understand the technology can turn us on or off the idea of browsing online for

products. A clear divide is appearing between the occasional online shopper and the

regular experienced user. Concerns about how easy the system is to use have almost

disappeared for online shopping enthusiasts, but for occasional users e-tailing sites

need to be easy to navigate. Websites must be accessible and operate efficiently. The

research found that the expectation of getting a good financial deal is still a strong

motivator to seek out products online, but this is secondary to the importance but,

many people steer clear of electronic buying because of security worries. Only once

online retailers can reassure customers about fraud and privacy will the online

shopping curve really take off. Worries about the risk involved, in terms of

financial transaction and privacy remain. A move from „big brands‟ to

„bargains‟ may only take place once.

Rajeev Kamineni (JAN 1999) in their study The World Wide Web can

changehuman behavior and human interactions to a very large extent. Web based

shopping behavior is one major example to point out the trends in this direction. This

study is of a very exploratory nature and it intends to establish the differences

between several web - based shoppers from different parts of the world. Several

critical factors associated with online shopping behavior will be explored. A cross

39
cultural data set will be collected and an illustrative description of the shoppers will

be provided. As a final step the cross cultural differences between several shoppers

will be explored. One question which will run as a theme throughout the course of this

paper is, “Will the traditional consumer behavior theory and research be altered by the

advent of web based shopping?”

There is a huge difference between a physical store and its electronic counterpart. A

help button on the home page of the web-shopping site replaces the sales clerks‟

friendly advice and service. The familiar layout of the physical store becomes a maze

of pull down menus, product indices and search features. Now more than ever, the

promise of electronic commerce and online shopping will depend to a great extent

upon the interface and how people interact with the computer. At the same time, there

are some inherent difficulties in maintaining an online inventory. In a regular store,

the managers can pull out a product from the shelf if they feel that it is not fast

moving or has no demand. This is a privilege that cannot be extended to the online

retail store.

Anita desai (2003) in her sudy E-tailing is the practice of selling retail goods on the

internet. It is the abbreviated version of “electronic retailing” which essentially

constitutes business to consumer transaction. While the concept of online retailing or

e-tailing is no longer in its nascent stage; it continues to evolve, as advanced e-

commerce applications act as a potent catalyst in the development of e-tailing.

The idea of online retailing or e-tailing which almost every net-savvy individual is

familiar with; offers a convenient mode of shopping online and the consumer gets to

choose from a diverse range of products and services as opposed to the analogous

physical shopping experience. Furthermore, online retailers or e-tailers get to expose

40
and sell their products to a global audience through their e-stores.

The E-commerce industry plays a vital role in its growth and development. The

consumer or buyer is usually provided with detailed information and description of

the product which helps them make a judicious choice before making an online

purchase. For consumers who face a paucity of time or want a diverse range of

products to choose from, e-tailing proves to be an ideal option. Every e-tailer wants

his/her share of domain amidst the vast World Wide Web galaxy. Due to the intense

competitory quotient involved, every e-tailer out there wants to offer their

customer/buyer a smooth and pleasant shopping experience. Therefore, e-tailing is

just not restricted to putting up products for sale for consumers to buy. As consumers

today are well-informed, it is understood that they would make a well informed

decision as well. This involves a fair amount of product research, price comparison

and checking the credibility of the e-store.

41
Company Profile

42
 COMPANY PROFILE
 The company is incorporated to execute passive and active infrastructure to various

mobile operators all over India & Abroad.

 The company is working in telecom domain as an equipment supplier and

infrastructure provider.

 The company provides its services to mobile service providers & consultancy

services to other vendors in the field of

 The company also provides Training & Consultancy services in Telecom Service

provisioning, Installation, Testing, A/T & Commissioning

Established in 2007, we are a company having full-time working partners in

Lucknow, Kanpur & Meerut. In addition to this, we have our associate offices at

Lucknow, Bhopal, and Chandigarh etc.

SamInfratech Private Limited was established as a Telecom Implementation and

Software Development Company, leading its way towards progress. Now it is a one

of the India's leading IT & Telecom Companies and among the top Telecom /

Software Development & training companies. We provide complete end-to-end

outsourcing solutions for various industries. It has a comprehensive set of solutions in

Telecom & IT Companies.

SamInfratech (P) Ltd. has worked with over 550 + Clients worldwide, Including –

Northern Railway , Rural Postal Life Insurance (RPLI,PLI), Reliance

Communication, Radical Security,Aircel, Airtel, Vodafone, BSNL, ESSAR Telecom,

GTL, WTTIL (TATA, Quippo Telecom, Webtech, Mach Well Tools, S.D

Engineers,Etc. and Many More....

43
  Dedicated team of more than 250 technically qualified engineers and

technicians who handles technical support services for entire range of IT &

other Industries.

 Leading Telecom Implementation & Software Development Company

working with leading telecom Original Equipment Manufacturers &

Development

 Started its own Premier Education & Training Division SIPL.

 Associated with Reliance Communication, Aircel, Airtel, Vodafone, BSNL

and Tata Tele Services across 25 states in 28 Telecom circles.

Working on Tower Infrastructure, Network Implementation. BTS installation and

Commissioning. Site Acceptance and Ready for RFI. Installation of Wi-Fi

equipments. Operation & Maintenance Business and Training Business.

The Group operates in Eight Segments:

1. IT Enabled Services

2. Infra & Maintenance

3. Software Development

4. Business Process Management

5. Telecom Enabled Services

6. Outsourcing

7. Event Management

8. Education and Training

44
Basic Information

Nature of Business Service Provider

 Manufacturer

 Retailer

 Buyer-Company

 Buyer-Individual
Additional Business  Association

 Supplier

 Distributor

Company CEO Pushpendra Gaharwar

Total Number of Employees51 to 100 People

Year of Establishment 2007

Legal Status of Firm Private Limited Company

Annual Turnover Rs. 50 Lakh - 1 Crore

45
Objective

 Our objective is to fulfill customer expectation

 Committed to provide best services

 To provide quality and reliable fixed telecom service to our customer and

thereby increase customer confidence

 To provide mobile telephone infrastructure of high quality in GSM/CDMA

area of operations

 To provide point of interconnection to other service providers promptly as per

their requirement

Vision

Our Vision is to segregate all consumer centric services under one roof. In coming

years SIPL would like to be the leading market player in B2C domain.

Values

SamInfratech – The Meaning of Time and Quality! Organizational values are the

foundation stones on which the organization image is built. These values are intended

to infuse an infectious energy, professionalism and a sense of true empowerment to

the workplace.

Our values drive us towards our goals of expansion, diversification and excellence.

These values define our philosophy of operations, guide our important decisions and

determine our commitment and achievement.

The values personified by SamInfratech:

Courage

To encourage the ability that meets opposition with skill, competence and fortitude.

46
Responsibility

Be accountable for results in line with the company’s objectives, strategies and

values.

Empowerment

Support our people and give them the freedom to perform and to provide our readers

with information to influence their environment.

Continuous Self Renewal

Determination to constantly re-examine and re-invent ourselves for further innovation

and creativity.

People Centric

People are our greatest asset. We invest in them expect a lot and know that the rest

will follow.

Mission

Our mission is to accomplish loyalty and appreciation of Channel Partners/Business

Partners. We further intend to develop a business friendly environment with our

clients which will help them to increase their earning potential.

Terms

By accessing this web site, you are agreeing to be bound by these web site Terms and

47
Conditions of Use, all applicable laws and regulations, and agree that you are

responsible for compliance with any applicable local laws. If you do not agree with

any of these terms, you are prohibited from using or accessing this site. The materials

contained in this web site are protected by applicable copyright and trade mark law.

Governing Law

Any claim relating to SamInfratech Private Limited's web site shall be governed by

the laws of the State of Uttar Pradesh without regard to its conflict of law provisions.

General Terms and Conditions applicable to Use of a Web Site.

Privacy Policy

Your privacy is very important to us. Accordingly, we have developed this Policy in

order for you to understand how we collect, use, communicate and disclose and make

use of personal information. The following outlines our privacy policy.

 Before or at the time of collecting personal information, we will identify the

purposes for which information is being collected.

 We will collect and use of personal information solely with the objective of

fulfilling those purposes specified by us and for other compatible purposes,

unless we obtain the consent of the individual concerned or as required by law.

 We will only retain personal information as long as necessary for the

fulfillment of those purposes.

 We will collect personal information by lawful and fair means and, where

appropriate, with the knowledge or consent of the individual concerned.

 Personal data should be relevant to the purposes for which it is to be used, and,

to the extent necessary for those purposes, should be accurate, complete, and

up-to-date.

48
  We will protect personal information by reasonable security safeguards

against loss or theft, as well as unauthorized access, disclosure, copying, use

or modification.

 We will make readily available to customers information about our policies

and practices relating to the management of personal information.

We are committed to conducting our business in accordance with these principles in

order to ensure that the confidentiality of personal information is protected and

maintained.

Organization Chart

Survey &
Acquisition

Project Planning

Infrastructure
MANAGEMANT
Development

TELECOM
Transmission
INFRATECH

SIPL
SOFTWARE Network
DEVELOPMENT Implementation

Commissioning
PLACEMENT &
Integration

Maintenance

49
What do we use your information for?

Any of the information we collect from you may be used in one of the following

ways:

To improve customer service

(your information helps us to more effectively respond to your customer service

requests and support needs)

How do we protect your information?

We implement a variety of security measures to maintain the safety of your personal

information when you enter, submit, or access your personal information.

We offer the use of a secure server. All supplied sensitive/credit information is

transmitted via Secure Socket Layer (SSL) technology and then encrypted into our

Payment gateway providers database only to be accessible by those authorized with

special access rights to such systems, and are required to?keep the information

confidential.

After a transaction, your private information (credit cards, social security numbers,

financials, etc.) will not be kept on file for more than 60 days.

Do we use cookies?

Yes (Cookies are small files that a site or its service provider transfers to your

computer’s hard drive through your Web browser (if you allow) that enables the sites

50
or service providers systems to recognize your browser and capture and remember

certain information

We use cookies to keep track of advertisements.

Do we disclose any information to outside parties?

We do not sell, trade, or otherwise transfer to outside parties your personally

identifiable information. This does not include trusted third parties who assist us in

operating our website, conducting our business, or servicing you, so long as those

parties agree to keep this information confidential. We may also release your

information when we believe release is appropriate to comply with the law, enforce

our site policies, or protect ours or others rights, property, or safety. However, non-

personally identifiable visitor information may be provided to other parties for

marketing, advertising, or other uses.

Third party links

Occasionally, at our discretion, we may include or offer third party products or

services on our website. These third party sites have separate and independent privacy

policies. We therefore have no responsibility or liability for the content and activities

of these linked sites. Nonetheless, we seek to protect the integrity of our site and

welcome any feedback about these sites.

51
IT Enabled Services

SamInfraTech offers an ample range of IT and Telecom services and solutions for

clients in India and abroad.

In the IT services SamInfraTech provides end-to-end Web Solutions, Quality Web

Hosting, Web Designing & Development, Graphic Designing, Search Engine

Optimization (SEO) and Software Development services at reasonable cost across the

Globe.

We believe in producing effective and dynamic websites that comprises superior

design, appropriate edifice progression and strong search engine rankings. We

construct a competitive analytical research.

Our Telecom solutions domain expertise's in Project Management in Telecom

Infrastructure. We help our clients in Site Survey, Site Acquisition, Civil Work,

Tower Supply, RF Survey & Telecom Implementation.

Seeing the current huge demand of skilled manpower we provide Training to

candidates and groom them for IT and Telecom sector. At SIPL, it means achieving

real business results that allow you to transform, and not just maintain, your

operations.

We deal in Non Voice BPO, working for MNCs, Educational and media sectors.

Our IT and telecom services and solutions bring you a level of certainty that no other

competitor can match. You'll experience requirements that are met on-time, within

budget, and with high quality, greater efficiency and responsiveness to your business

and the ability to shift investment to strategic initiatives rather than tactical functions.

52
IT Enabled Services

SamInfraTech offers an ample range of IT and Telecom services and solutions for

clients in India and abroad.

In the IT services SamInfraTech provides end-to-end Web Solutions, Quality Web

Hosting, Web Designing & Development, Graphic Designing, Search Engine

Optimization (SEO) and Software Development services at reasonable cost across the

Globe.

We believe in producing effective and dynamic websites that comprises superior

design, appropriate edifice progression and strong search engine rankings. We

construct a competitive analytical research.

Our Telecom solutions domain expertise's in Project Management in Telecom

Infrastructure. We help our clients in Site Survey, Site Acquisition, Civil Work,

Tower Supply, RF Survey & Telecom Implementation.

Seeing the current huge demand of skilled manpower we provide Training to

candidates and groom them for IT and Telecom sector. At SIPL, it means achieving

real business results that allow you to transform, and not just maintain, your

operations.

We deal in Non Voice BPO, working for MNCs, Educational and media sectors.

Our IT and telecom services and solutions bring you a level of certainty that no other

competitor can match. You'll experience requirements that are met on-time, within

budget, and with high quality, greater efficiency and responsiveness to your business

and the ability to shift investment to strategic initiatives rather than tactical functions.

53
Culture

We’re a local business everywhere and we operate in the country’s geography or

across borders. We are committed to demonstrating the highest standards of our work

respect and passion as we cultivate genuine, trusting relationships and turn them into

partnerships.

Some great practices that make us proud are:-

A Strong Performance Culture

Each employee is responsible for setting SMART objectives and working with his/her

leader for his/her own achievements & development. Mid-year and year-end

assessments ensure continuous focus on performance and improvement.

Capability Building

Our vision is to create a world class learning organization, focused on building people

and careers, through unmatched opportunities for continuous personal and

professional development for employees.

We Celebrate

Success and challenges all are reasons to come together. From employee days to

festivals to anniversary parties to launches and promos to break out groups and more

informal get together you find it all. You could find people on a treadmill discussing

circulation numbers and in one of the informal cafeterias or coffee lounges the next

BIG idea for a client could be taking birth.

All of these make us Unique.

Growth

Empower people to people leaders. Performance facilitating development and growth

are reflected in lateral and upward movements. A dedicated Capability Building Team

ensures that these objectives are met by focusing on Induction.

54
Telecommunication Training Programs,

Software Development Training Programs,

GATE / PSUs Preparation Program. The company also runs cadre building programs

like the Management Trainee Program, Engineer Trainee Program, and Marketing

Trainee Programs. All key processes are supported by Employee and Manager

55
Objective of the
Study

56
 OBJECTIVE OF THE STUDY

 To Study In Marketing Practices (Online and Traditional adopted By SIPL).

 To study the factors that influences the type of marketing policy to be adopted.

 To examine whether people prefer digital marketing over traditional marketing.

57
 Research
Methodology

58
 RESEARCH METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field

of study. ... Typically, it encompasses concepts such as paradigm, theoretical model,

phases and quantitative or qualitative techniques. A methodology does not set out to

provide solutions - it is, therefore, not the same as a method.

Research design -The research design refers to the overall strategy that you choose

to integrate the different components of the study in a coherent and logical way,

thereby, ensuring you will effectively address the research problem; it constitutes the

blueprint for the collection, measurement, and analysis of data.

Descriptive research is a study designed to depict the participants in an accurate

way. More simply put, descriptive research is all about describing people who take

part in the study.

Universe- Lucknow

Sample Area – Chinhat and BBD Campus, Lucknow

Sample Size- 100

Sample Design: A sample design is made up of two elements. Sampling method.

Sampling method refers to the rules and procedures by which some elements of the

population are included in the sample. Some common sampling methods are simple

random sampling, stratified sampling, and cluster sampling.

Judgmental Sampling Design: Judgmental sampling design is usually used when a

limited number of individuals possess the trait of interest. It is the only viable

sampling technique in obtaining information from a very specific group of people. It

is also possible to use judgmental sampling if the researcher knows a reliable

professional or authority that he thinks is capable of assembling a representative

sample.

59
Sample Unit: Individuals

Data source- Primary data & Secondary Data

The two main sources of data for the present study have been primary data and

secondary data.

1. Primary Data:

Primary data consists of original information collected for specific purpose.

The primary data for this research study was collected through a direct survey with

the viewers guided by a structured questionnaire. The questions were structured and

direct as to make viewers understand easily.

2. Secondary Data:

Secondary data consists of information that already exists somewhere,

having been collected for specific purpose in the study. The secondary data for this

study collected from various books, company websites, and from company

brochures.

Data Collection Tools: Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. Although they are

often designed for statistical analysis of the responses, this is not always the case.

60
Data Analysis

61
 Data Analysis
1. The age of the respondents.

Age %of respondents

15-20 32
20-25 48
25-30 14
30& above 6
Total 100

Respondents
Respondent %

60

50
48

40
32
30

20 14
10 6
0
15-20 20-25 25-30 30& above

INTERPRETATION

The above diagram shows us the percentage in the age of respondents. As it shows that
from age 15-20 the number of respondents are32 % and from age of 20 -25 it is 48 %
and from 25-30 it is 14% this is the above data which is shown by the this pie chart.

62
 2. The gender of the respondent

Gender %of Respondents

Female 86
Male 14
Total 100

Respondents

14%

Female
Male
86%

INTERPRETATION

As our respondents are mostly from the students and professional in Lucknow city who
uses cards. I use to get more data from males as they were ready to give their
experiences, it this graph itself is showing more percentage of males rather than
females, the percentage of male respondents is 86% and percentage of female
respondents is only 14%.

63
 3. THE DEMOGRAPHY WHETER RESPONDENT LIVE IN RURAL OR
URBAN AREA.

Address %of Respondents

Rural 24
Urban 76
Total 100

Respondents
40

35

30

25

20
Respondents
15

10

0
Rural Urban

INTERPRETATION

The above diagram is showing the percentage of demography of respondents and what
is the percentage of respondents who lives in rural or urban region, the above diagram is
showing that 76% of the respondents are from urban areas and 24% of the respondents
are from rural area.

64
4. THE OCCUPATION OF THE RESPONDENTS

Occupation %of Respondents

Student 80
Professional 8
Govt. employee 0
Self employed 8
Others 4
Total 100

No of respondents
50
45
40
35
30
25
No of respondents
20
15
10
5
0
Student Professional Self employed Others

INTERPRETATION

This graph help us to know the occupation of the respondents, this is to know that
which segment of people are buying more products on the internet whether they are the
segment of students, government employees or professional, the above graph shows that
the segment of the students i.e. 80% of the students are using internet and use to buy
online products.

65
 5. THE MONTHLY INCOME OF THE REPONDENTS

Income %of respondents

Less than 5000 60
5000-10000 22
10000-15000 14
15000-40000 4
40000 & above 0
total 100

respondents
35

30

25

20
respondents
15

10

0
Less than 5000 5000-10000 10000-15000 15000-40000

INTERPRETATION

This above graph shows the percentage of monthly income of the different
respondents, and it show that less than 10000 income respondents have buy more
online products because most of them are students and they use to buy gadgets,
mobiles and laptops.

66
 6. MOTIVATES PEOPLE TO DO ONLINE SHOPPING.

What motivates you to Buy online % of Respondents

Easy payment 36
No hidden cost 6
Wide range of products 10
No travel to shop 48
Total 100

Respondents

Easy payment
No hidden cost
Wide range of products
No travel to shop

INTERPRETATION

This graph shows us what motivates the people to buy internet, as from above result we
found out that no travel to shop is the main thing which motivates the people to buy
products online.

67
 7. THE CONSUMERS ARE GETTING COMPETITIVE PRICE.

Do you feel that the online marketers Respondents

Are providing competitive prices than %
traditional marketer.

Yes 66
No 34
Total 100

respondent %
70

60

50

40

30
respondent %
20

10

0
Are providing Yes No
competitive
prices

INTERPRETATION

This diagram shows us that whether online marketers are giving competitive price or
not and result which is came is that most of the people thought that online marketers are
providing competitive prices than physical stores. And result shows 66% of people say
that it provides competitive prices and only 34% people says no.

68
 8. Products do you buy online.

What products you buy on internet Respondents

%
Cloths 72

Mobile 14
computer and accessories 4
Others 3
Total 100

Respondents
40

35

30

25

20
Respondents
15

10

0
Cloths Mobile computer and Others
accessories

INTERPRETATION

The above graphs gives result that most of time people use to buy cloths 72%.

69
 9. DO YOU FEEL THAT ONLINE SHOPPING IS BETTER THAN
SHOPPING AT PHYSICAL STORE?

Do you feel that online shopping is Respondents

better than shopping at physical brick %
mortar store
Yes 60
No 40
Total 100

Respondents %

Yes
No

INTERPRETATION

After analyzing the above graph shows that the people are in favour of that online
shopping is better than physical store, the percentage of people who says online
shopping is better is 60% and the people who say it not good is 40 %.

70
 10. WHICH OF THE FOLLOWING STORES HAVE YOU VISITED.

Which of the following stores have you Respondents

visited online %

Flipkart 40
Snapdeal 34
Amazon 12
Myntra 6
Others 8
Total 100

Respondents
25

20

15

Respondents
10

0
Flipkart Snapdeal Amazon Myntra Others

INTERPRETATION

This graph shows that 40% people use to visit Flipkart for online shopping,34% use to
go at snapdeal because % of people who buys cloths is more than any other products so
people mostly visits Flipkart, 12 % people do at Amazon shopping and for other people
use to visit at Best Buy and others.

71
 11. FACTORS HELP YOU TO DECIDE WHICH SITE TO USE FOR
ONLINE SHOPPING.

What factors help you to decide which Respondents %

site is use for online shopping
Search engine 18
Personal recommendations 10
Special offers on sites 20
Online advertising 32
TV advertising 16
Others 4
Total 100

respondents

Search engine
Personal recomdations
Special offers on sites
Online advertising
TV advertising
Others

INTERPRETATION

This diagram shows us what affects people to buy products on internet and it shows that
32% people came to know about shopping sites through online advertisements. And
they attracted towards it and start getting products from there. And 20% people decision
is affected by special offers by the offers and the discounts given by the sites.

72
 12. HOW YOU MAKE YOUR PAYMETS ON THE INTERNET

How do you make your payments Respondents

online %
Credit card/ debit card 20
Bank transfer 10
COD 60
Other 10
Total 100

respondents
35

30

25

20

15 respondents

10

0
Credit card/ debit Bank transfer COD Other
card

INTERPRETATION

This diagram shows that mostly people uses COD to pay their payments 60% people,
10% through bank transfer and 20% through Credit Card.

73
 13. HAVE YOU FACE ANY PROBLEMS WHILE SHOPPING ONLINE

Have you any problems while shopping online Respondents

%
Yes 48
No 52
Total 100

respondents %

Yes
NO

INTERPRETATION

This graph shows that whether people faces any problem while doing online shopping
or not and the result shows that 48% people says that they have faced problem while
buying online and 52% people says that they don’t face any problem.

74
Findings

75
 Findings

 Researcher found that most of the time youngster who are from the age of 20-

25 shops a lot on the net rather than other age limits. People used to do online

shopping because of its convenience.

 The three factors that were found show a significant in influencing online

shoppers and consumers. The general distribution showed that the price was

the primary factor for the entire sample population, and that second factor was

trust was closely followed by convenience.

 Researcher segments the respondents through different variables found that

segments were mainly trust oriented and the respondents had a high positive

attitude towards purchasing cloths online.

 Other was mainly price and convenience oriented therefore took the most

consideration to the opinions and experiences of the Reference groups. As

they low disposable income and were somewhat convenience oriented when

acquiring information about low prices, chose to label them price easers.

 The main thing which is very common in the most of the people about online

shopping is its risk of privacy i.e. hacking of account number getting

passwords and all.

76
Recommendation

77
 RECOMMENDATION

 As came to know after researching on this topic researcher recommend that,

the online sellers have to make their payment transparent, and as people are

coming on their sites and they are buying their products.

 Retailers have to give more discounts to their customers so that they can visit

again and again to their site and it also helps to make people more aware about

the low rick shopping of the net.

 Transaction of money is very slow they have to make it fast so that customer

don’t have to face much problem to pay for the product, if customer is going

to face some problem he is not going to visit our site and buy products.

 The online advertisement must make for products in other website must have

direct link for purchasing site.

 The retailers must make sure that their website is out of malwares and virus

attacks.

Following implications should be followed

 Discount price

 A transfer and reliable retailer

 Fast transactions

 Focus on customer satisfaction

78
Conclusion

79
 CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high levels of

Net savings see more and more Indians shopping online. But at the same time the

companies need to reduce the risks related to consumer incompetence by tactics such

as making purchase websites easier to navigate, and introducing Internet kiosk,

computers and other aids in stores. The goal is not to convert all shoppers to online

purchasing, but to show them its an option. In addition to above, efforts need to be

taken to educate the online buyers on the steps that need to be undertaken while

making an online purchase. Moreover, the feedback of an online buyer should be

captured to identify flaws in service delivery. This can be done through online

communities and blogs that serve as advertising and marketing tools and a source of

feedback for enterprises. I found that it is a challenge for E-marketers to convert low

frequency online buyers into regular buyers through successful website design and by

addressing concerns about reliable performance. Thus, the online retailing raises more

issues than the benefits it currently offers. The quality of products offered online and

procedures for service delivery are yet to be standardized. Till the same is done, the

buyer is at a higher risk of frauds.

80
Limitations of the
study

81
 LIMITATIONS OF THE STUDY

a) In this study it is not possible to collect the opinion of all the customers

owing to personal constraints. So the assumptions are drawn on the basis

of the information given by the respondents.

b) The study needs to be completed within a specified time of one month and

in certain restricted areas. So the findings cannot be generalized for the

company as a whole.

c) This study covers only a limited area. So this study will not be applicable

for those areas.

82
Bibliography

83
 Bibliography
Books
 Kotler, P (2002),”Marketing Management”, Millennium Edition, Tenth

Edition, Prentice Hall, Inc, A Pearson Education Company, Upper Saddle

River, New Jersey ,pp.

 Hair, Joseph, F., Anderson, Rolph, E. and Tatham Ronald, L. (1987),

Multivariate Data Analysis, New 'fork: MacMillan Publishing Company.

 Helen Woodniff (1997), "Financial Services Marketing", Services Marketing,

Mac million, Delhi.

 Hill, N., (1996), Handbook of Customer Satisfaction Measurement, Gower

Press, Alder shot, UK.

Websites:
1) http://analogik.com/article_analysis_of_consumer_behaviour_online.asp [27april
2010].

2) http://www.essays.se/essay/e1fb0c636f/ [13april 2010].

3) http://www.tealeaf.com/Harris/[12april].

4)http://inderscience.metapress.com/app/home/contribution.asp?referrer=parent&bac
kto=is. sue,2,6;journal,15,40;linkingpublicationresults,1:110844,1[11april 2010].

5)http://www.inderscience.com/search/index.php?action=record&rec_id=32383&pre
vQuer y=&ps=10&m=or1m[12 may 2010].

84
Annexure

85
 QUESTIONNAIRE

1. Age : _____________________
2. Gender: ______________________
3. Place of residence (urban or rural) :_____________________
4. Occupation
a) Student
b) Professional
c) Govt. employee
d) Self employed
e) Others

5. Monthly Income
a) Less than 5000
b) 5000-10000
c) 10000-15000
d) 15000-40000
e) 40000 & above

6. What motivates you to buy online?

a) Easy Payment
b) No Hidden Cost
c) Wide Range of products
d) No travel to shop

7. Do you feel that the online marketers are providing competitive prices then
traditional marketers to consumer?

a) Yes
b) No

86
8. What products do you buy online?

a) Books
b) Music
c) Cloths
d) Mobile
e) Computer & Accessories

9. Do you feel that online shopping is better than shopping at physical

store?

a) Yes
b) No

10. Which of the Following Stores Have You Visited?

a) Flipkart
b) Snapdeal
c) Amazon
d) Myntra
e) Others

11. What factors help you to decide which site to use for online shopping?

a) Search engine
b) Personal recommendations
c) Special offers on sites
d) Online advertising
e) TV advertising
f) Others

87
12. How You Make Your Payments on the Internet?
a) Credit card/ debit card
b) Bank transfer
c) COD
d) Other

13. Have You Face Any Problems While Shopping Online?

a) Yes
b) No

88