2 Emerging Issues and Challenges in Management2 Emerging Issues and Challenges in Management...

2 Emerging Issues and Challenges in Management

Emerging Issues andChallenges inManagement

Edited by

Dr. Pavnesh KumarAssistant Professor,

Department of Business Management,Indira Gandhi National Tribal University,

Amarkantak (M.P.).

MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

Consumer Perception Towards Online Shopping in India: An Empirical Analysis 3

© Author

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form orby any means, electronic, mechanical, photocopying, recording and/or otherwise without the priorwritten permission of the publishers.

First Edition : 2014

Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,“Ramdoot”, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004.Phone: 022-23860170/23863863, Fax: 022-23877178E-mail: [email protected]; Website: www.himpub.com

Branch Offices :New Delhi : “Pooja Apartments”, 4-B, Murari Lal Street, Ansari Road, Darya Ganj,

New Delhi - 110 002. Phone: 011-23270392, 23278631; Fax: 011-23256286Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 018.

Phone: 0712-2738731, 3296733; Telefax: 0712-2721216Bengaluru : No. 16/1 (Old 12/1), 1st Floor, Next to Hotel Highlands, Madhava Nagar,

Race Course Road, Bengaluru - 560 001.Phone: 080-22286611, 22385461, 4113 8821, 22281541

Hyderabad : No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda,Hyderabad - 500 027. Phone: 040-27560041, 27550139

Chennai : 8/2 Madley 2nd street, T. Nagar, Chennai - 600 017.Mobile: 09320490962

Pune : First Floor, "Laksha" Apartment, No. 527, Mehunpura, Shaniwarpeth(Near Prabhat Theatre), Pune - 411 030. Phone: 020-24496323/24496333;Mobile: 09370579333

Lucknow : House No 731, Shekhupura Colony, Near B.D. Convent School, Aliganj,Lucknow - 226 022. Mobile: 09307501549

Ahmedabad : 114, “SHAIL”, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura,Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847

Ernakulam : 39/176 (New No: 60/251) 1st Floor, Karikkamuri Road, Ernakulam,Kochi – 682011. Phone: 0484-2378012, 2378016; Mobile: 09387122121

Bhubaneswar : 5 Station Square, Bhubaneswar - 751 001 (Odisha).Phone: 0674-2532129, Mobile: 09338746007

Indore : Kesardeep Avenue Extension, 73, Narayan Bagh, Flat No. 302, IIIrd Floor,Near Humpty Dumpty School, Indore - 452 007 (M.P.). Mobile: 09303399304

Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank,Kolkata - 700 010, Phone: 033-32449649, Mobile: 7439040301

Guwahati : House No. 15, Behind Pragjyotish College, Near Sharma Printing Press,P.O. Bharalumukh, Guwahati - 781009, (Assam).Mobile: 09883055590, 08486355289, 7439040301

DTP by : (Nilima Jadhav)Printed at : M/s. Aditya Offset Process (I) Pvt. Ltd., Hyderabad. On behalf of HPH.


Dedicated to my Parents who bestowed on methe inspiration and strength to take up this work


PrefaceThe fast changing volatile and dynamic environment is changing the landscape of the business

and forcing the management to adopt the changes at a fast pace than before. This book discusses someof the issues and challenges and gives insight on the several emerging issues in management.

This current book entitled Emerging Issues and Challenges in Management discusses variousissues and challenges in management. The book contains 16 articles and is divided into 4 parts.

The first part is Marketing Management contains 6 chapters covering the discussion on consumerperception, impulse buying behavior, customer satisfaction and service quality and rural prosperity.

The second part of the book Information Technology contains 2 chapters covering the discussionon IT audit and control and the role of IT in the retail industry.

The third part of the book contains 4 chapters on Financial Management covering the discussionon Microfinance, amalgamation of RRBs and trends in stock markets and issues related to financialinclusion.

The fourth part of the book contains 3 chapters on General Management covering discussions onSmall-scale Industries and the impact of milk production on the state of UP and rural prosperity andglobal financial crisis.

All the chapters contained in the book are application-oriented and therefore will provide usefulguidance to the practitioners as much as thy will to the researchers.

Dr. Pavnesh Kumar


Acknowledgements

Like others, I owe much to many. I am particularly grateful to Prof Y.P. Singh and Prof. S.K.Singh (FMS-BHU) (the latter being the Ex-Professor, Delhi School of Economics) of University ofDelhi. They are my source of inspiration and strength. I am also grateful to Prof. G.S. Rathore, myResearch Supervisor, who helped me in several ways — all the time.

Editing this book has been an enriching experience in itself. I express my sincere thanks andgratitude to all those who extend a helping hand in the completion of this book. My main motivator is,of course, the publishers Himalaya Publishing House (P) Ltd.

I am also grateful to my seniors, colleagues and friends for being a continuous motivator duringediting of this book.

Coming to my home, my wife Pooja Singh have continuously helped me to meet my minorerrands. I am grateful to her.

Dr. Pavnesh Kumar


Contents

S. No. Name of the Chapter Pg. No.

Marketing Management

1 Consumer Perception towards Online Shopping in India –A Study

R.S. Chandel & Pavnesh Kumar

1 – 7

2 Demystifying Impulse Buying Behavior

Ramesh Chaturvedi

8 – 16

3 A Comparative Analysis of Customer Satisfaction in Public SectorBanks: A Demographic Study

Eliza Sharma

17 – 26

4 Measuring customer Demographic Variables in Private InsuranceCompanies

Upendra Singh Panwar, Anukool Manish Hyde & A. Dalpati

27 – 39

5 Service Quality Gap of Private Life Insurance Companies – A Studywith Reference to Sivaganga District

A. Muthusamy

40 – 51

6 ‘Rural Prosperity’ – A Chariot for Rural Marketing

R.N. Singh

52 – 60

7 Sustainable Development in Women Entrepreneurship in India withSpecial Reference to Capital Region of Uttar PradeshVivekanand Pandey

61 – 75

8 Effectiveness of CA in IT Audit and Control – A Study

Jitendra Kumar Singh & G.S. Rathore

76 – 93

9 Information Technology: A Tool for Rising Face of Indian RetailIndustry

Anuradha Agarwal & Maithili R. P. Singh

94 – 100

Financial Management


10 The Microfinance Promise in Financial Inclusion: Evidence fromVaranasi District of Uttar Pradesh

Vikas Singh

101 – 116

11 Amalgamation of Regional Rural Banks

Archana Singh & Vibhuti Khare

117 – 121

12 Changing Trends in Indian Stock Market: Linkages with FPI

Rachna Mujoo & Nazia Jamal

122 – 127

13 Financial Inclusion – A Tool for Inclusive Growth in India

Badiuddin Ahmed, S. Nayamath Basha & Shaik Abdul Mazeed

128 – 135

General Management

14 Small-scale Industries in India: Problems and Prospects

Deepak G. Kondawar & Pravin B. Jadhav

136 – 140

15 Operation Flood and its Impact on Production of Milk in the State ofUttar Pradesh

Sunil Kumar Singh

141 – 148

16 Global Financial Crisis and its Impact on Indian Economy

Atul Bansal

149 – 154


ABSTRACTThe beginning of a new century and millennium has witnessed a rapid expansion andenrichment of business activities in India. The growth of business activity via internet,telephone and other means is also increasing day by day. Beyond this, the online shopping hasincreased tremendously in urban area compared to rural area due to the enrichment of telecomservices. Most of the online shopping organizations are using modern techniques to face thechallenges posed by competition. In these online shopping organizations, the people findvarious types of brands as well as options. Shopping finds a whole new definition through thisway. According to the latest study by “Forrester” (a global research and advisory firm), theonline market is set to grow at the fastest rate within the Asia-Pacific Region at a CAGR(Compounded Annual Growth Rate) of over 57% during (2012-16). Nowadays, consumers areincreasingly looking for “anytime anywhere purchasing” and online shopping providesmobility to that users. The present study focuses on the perception towards online shopping bythe consumers of Lucknow region. This paper mainly aims to assess the consumer’s awareness,their attitude towards different online shopping websites, level of satisfaction and the problemsfaced by them. To achieve the above objective of the study, 150 randomly selected respondentsof Lucknow were chosen. From the analysis, it is observed that online shopping is closelyassociated with the demographic profile of the respondents. The study also signifies the opiniontowards the role of products as well as brand that matter to the final consumers.Keywords: Online Shopping, Consumer, Demography, Brands,Respondents, E-commerce Internet,Website, Perception.

IntroductionRapid pace in the achievement of technological breakthrough in online shopping sector has

really changed the scenario and a dream of yesterday has become reality today. The application ofinformation technology in this sector creates a new way to reach consumers. The definition of onlineshopping is “the act of purchasing products or services over the internet”. In other words, it is a formof electronic commerce which allows consumers to directly buy goods or services over the internetwithout any intermediary by using a web browser. And the whole process is called business-to-

* House No. 135, Nirala Nagar, Rae Bareli, U.P.E-mail: [email protected]

Rajeev Singh Chandel*

Chapter1

Consumer Perception TowardsOnline Shopping in India:

An Empirical Analysis


consumer (B2C) online shopping. The biggest players in this sector are eBay and Amazon.com bothbased in the United States.

Online shopping has grown in popularity over the years, mainly because people find convenientand easy way to bargain shops from the comfort of their home or office. Where in India nowadaysthe persons are more mobile and wants “anytime anywhere shopping”. And due to expansion oftelecom services, it makes it possible.

In India, E-commerce is increasing at a fast pace. The E-commerce market in India wasestimated to be ` 19,688 crores in 2009, ` 37,000 crores in 2011 and in future it is expected to growto ` 57,000 crores. There are whole bunch of shopping sites in India and many are going to launch.Mainly people use these sites to shop for things from electronic gadgets, books to fashion apparelsetc. For Indian people, it is just like a dream come true.

Growth Rate of People using InternetWith the rise in internet penetration and expansion of internet services across the country,

companies are selling products and services through websites in both the sectors urban as well asrural. In the recent study, it is found that most of the people come from urban area because urbanpeople are well educated and well aware about the internet and internet facilities. According to latestsurvey, it is found that the urban areas contributed total of 91% of total sales, in which 51% frommetros cities and 40% from Tier I, Tier II and Tier III cities, whereas the contribution of rural India isnear about 9% only. While consumers in the metros buy products and services mainly because ofconvenience, those in the non-metros buy due to non-availability of products. Big brands don’t find itviable to open shop in small towns and e-commerce is the perfect route to deliver their products tothose who can afford from non-metros.

Objective of the StudyThe objective of this paper is to explain the opportunities and challenges in online shopping

sector. The study aims to assess the perception towards online shopping by the customers ofLucknow region. An attempt is also made to find the level of satisfaction derived from the use ofinternet. Researchers have tried to explore the problems faced by consumers during online shoppingas well as after shopping.

Research MethodologyThe present study is an exploratory research study. In order to study the consumer perception

towards online shopping, both primary and secondary data were collected. In this case, the secondarydata was collected from different sources mainly Magazines, Newspapers and Internet etc. Theprimary data is also collected through questionnaire survey method. For this purpose, 155respondents were randomly selected. An attempt was made to check their level of satisfaction.Certain attributes were rated on five-point scale and the final score has been calculated by usingweighted ranking method. The data thus received was tabulated, analyzed and appropriate resultswere drawn. Univariate and bivariate data analysis techniques were used to analyze the data.

Awareness amongst the PeopleNowadays, the people are much aware about the things which are happening into their

surroundings with the help of advertising, branding and imaging, They know what is good and what isbad. In other way, the customer is more intelligent, well aware and more brand conscious.


The Following Hypothesis was Constructed for Analyzing the Data1. To know the common perception and attitude towards online shopping sites on the basis of

demographic profile.

2. To know the problems faced by consumers after purchasing from online shopping sites.

Scope of the StudyThe study represents the common perception and attitude towards online shopping on the basis

of demographic profile of Lucknow region. Due to very small sample size, the findings may not be atrue representation and it cannot be generalized but it will give a better prospect for future study andmay have a wide application in future.

Findings and Analysis

Table 1: Age Group-wise Classification of Respondents

S. No. Age Groups No. of Respondents Percentage1 Up to 25 years 25 21.68

2 25 to 40 years 75 40.96

3 40 to 50 years 28 21.10

4 Above 50 years 27 16.26

Total 155 100.00

InferenceAge analysis of respondents indicates that more than one-third of the respondents fall in the age

group of 25-40 years as it was indicated by 40.96% respondents in the sample. 21.68% respondentsbelong to the age group up to 25 years. 40 to 50 years age group contributes 21.10% in the sample. Theremaining 15.38% respondents fall in the age group of above 50 years.

Table 2: Sex-wise Classification of Respondents

S. No. Sex Groups No. of Respondents Percentage1 Male 133 82.53

2 Female 22 17.47

Total 155 100.00

InferenceThe information pertaining to sex categories reveals that 82.53% of the respondents belongs to

male and 17.47% in the female categories.


Table 3: Marital Status-wise Classification of Respondents

S. No. Marital Status No. of Respondents Percentage1 Married 117 75.32

2 Unmarried 38 24.68

Total 155 100.00

InferenceThe marital composition of the respondents indicates that 75.32% respondents belong to married

category and remaining 24.68% respondents were in unmarried categories.

Table 4: Income-wise Classification of Respondents

S. No. Income Groups No. of Respondents Percentage

1 Up to ` 15000 p.m. 80 48.80

2 ` 15000 -25000 p.m. 63 37.96

3 Above ` 25000 p.m. 12 13.24

Total 155 100.00

InferenceThe information related to income of the respondents indicates that little less than half of the

respondents fall in the income up to ` 15000 p.m. as it was indicated by 48.80% respondents in the sample.37.96% respondents belongs to the income group of ` 15000-25000 p.m. Remaining 13.24% respondentsindicated that their monthly income falls in the category of ` 25000 p.m. and above.

Table 5: Educational Qualification-wise Classification of Respondents

S. No. Level of Education No. of Respondents Percentage1 Undergraduate 21 16.27

2 Graduates 107 64.48

3 Postgraduate and Above 27 19.25

Total 155 100.00

InferenceThe information related to the educational qualifications of the respondents indicates that most of

the respondents are graduate category as it was indicated by 64.48% respondents in the sample.Undergraduate category accounts for 16.27% and 19.25% respondents have postgraduate degree andabove.


Table 6: Profession-wise Classification of Respondents

S. No. Professions No. of Respondents Percentage1 Student 25 15.062 Business 23 17.443 Service 72 45.774 Professional 21 12.655 Housewives 6 3.666 Others 8 5.42

Total 155 100.00

InferenceAn attempt was made to explore the profession of the respondents use online shopping sites. The

information pertaining to this indicated that little less than half of the respondents fall in the servicecategory as it was indicated by 45.77% respondents in the sample. 15.06% respondents belong tostudent category and 17.44% in the business category. Professional category respondents are 12.65%and 3.66% respondents indicated that they are housewives. Remaining 5.42% respondents indicatedother unclassified profession.

Table 7: Awareness about Online Shopping Facility

S. No. Awareness No. of Respondents Percentage1 Aware 143 92.322 Unaware 12 7.68

Total 155 100.00

InferenceThe information presented in the above table projects 92.32% respondents the sample are aware

with the online shopping facility. Remaining 7.68% are remain unaware about the facility provide byshopping sites.

Table 8: Classification on the Basis of Leading Online Shopping Websites

S. No. Leading Websites No. of Respondents Percentage1 E-bay.com 16 10.322 Firstcry.com 04 2.683 Home Shop-18.com 25 15.244 Snap-Deal.com 21 13.545 Flip-Kart.com 10 6.456 Yebhi.com 11 7.627 Irctc.com 39 25.628 Jabong.com 05 2.32


9 Zovi.com 06 3.8610 Bookmyshow.com 18 12.35

Total 155 100.00

InferenceThe information about the leading websites providing online shopping facilities to the end-users.

It reveals that 25.62% respondents are using IRCTC websites because it is leading travelling websitesproviding a ticket to the traveller in Railways. Whereas in the case of Homeshop18.com, they have15.24% compared to Snap-Deal.com only have 13.45%, 12.35% for Bookmyshow and 10.32% forE-bay.com and rest of the respondents respectively.

Table 9: Satisfaction Levels of Respondents

S. No. Satisfaction Levels No. of Respondents Percentage1 Satisfied 99 75.322 Unsatisfied 56 28.35

Total 155 100.00

InferenceAn attempt was made to explore whether consumer face any problem while using the online

shopping sites. This study mainly focuses on the satisfaction level regarding the services provided bythe shopping website. As the study shows that it is near the satisfactory level, so there need to focus onthis sector too.

Conclusion and SuggestionsOnline shopping sites expect that the number of orders coming in from these areas to go up

further helped by rising internet penetration, growing purchasing power and adoption of mobiledevices as well as smart phones has definitely give a push to this sector as the access is available tothe consumers on their fingertips. According to the report by Google (2011), in India, over 70% ofsearch happened in non-metros and overall 50 million people logged on to the internet from mobilephones.

Today, most of the national and international companies are using this medium to increasetheir sales and to promote their brand as well as business and make the shopping easy and user-friendly. On the basis of the study, the important suggestions drawn by the researcher are set out asunder:

● Samples are dominated by male married member in the age group of 25-40 years havingeducated up to graduation and belonging to serving category.

● Most of the respondents are aware with the facilities provided online shopping sites, howeverawareness with different brands and uses pattern of online sites depends on user by user.

● Analysis signifies that the advertisement of quality, brand, loyalty, after sales services andcustomer supports are more effective in building the awareness among the people.


● Whereas friend and family members are effective medium in influencing the person toenhance the purchase online shopping.

● Hence, online shopping companies should design marketing program accordingly.● The study indicates that there is a close relation between uses pattern of online shopping sites

with the age, gender, marital status, income and professional status of the respondents. Hence,it is suggested that while deciding the marketing strategy they must focus on demographicfactors.

● The study indicates that the opinion about role of online shopping websites in promotingbusiness is dependent on the professional status of respondents. Hence, online shoppingwebsites should target on appropriate segment to increase the effectiveness.

References1. Antonides, G. and Raaij Van, W.F. (1996), “Consumer Behaviour from a European Perspective”, John

Wiley & Sons.

2. Chandel, Rajeev Singh and et al. (2009), “Rural Telecom in India: Marketing Issues and ExperiencesFrom Other Countries”, Proceedings of Conference on Management Challenges in the Changing GlobalBusiness Scenario, GNIT, Greater Noida, pp. 152-158.

3. David Loudon and Albert J. Della Bitta (1988), “Consumer Behaviour: Concept and Cases”, 3rdEdition, McGraw-Hill Pvt. Ltd., New Delhi.

4. Dabholkar, P.A. (1996), “Consumer Evaluation in New Technology-based Service Options: AnInvestigation of Alternative Models of Service Quality”, International Journal of Research in Marketing,Vol. 13, No. 1, pp. 29-51.

5. Goldman, A. (1974), “Outreach of Consumers and the Modernization of Urban Food Retailing inDeveloping Countries”, Journal of Marketing, Vol. 38(4), pp. 8-16.

6. Gale, B.T. and Chapman, R.W. (1994), “Managing Customer Value: Creating Quality and Service thatCustomers Can See”, Free Press.

7. Henning Thuran, T., Gwinner, K. and Gremler, D. (2002), “Understanding Relationship MarketingOutcomes: An Integration of Relational Benefits and Relationship Quality”, Journal of ServiceResearch, Vol. 4, pp. 185-205.

8. Kothari, C.R. (2001), “Research Methodology”, Vishva Prakashan, New Delhi.

9. Klemperer (1987), “Markets with Consumer Switching Cost”, Quarterly Journal of Economics, Vol.102, No. 2, pp. 375-394.

10. Phillip Kotler (2001), “Marketing Management”, Millennium Edition, PHI, New Delhi.

11. Oliver, R. (1981), “Measurement and Evaluation of Satisfaction Process in Retail Setting”, Journal ofRetailing, Vol. 57, pp. 25-48.

12. Zablah, A.R., Bellenger, D.N. and Johnston, W.J. (2004), “Customer Relationship ManagementImplementation Gaps”, Journal of Personal Selling and Sales Management, Vol. XXIV, No. 4, pp. 279-95.

____

2 Emerging Issues and Challenges in Management2 Emerging Issues and Challenges in Management...

Documents

Transcript of 2 Emerging Issues and Challenges in Management2 Emerging Issues and Challenges in Management...