Rise of Internet in India and Worldwide

8/3/2019 Rise of Internet in India and Worldwide

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YEAR B2C (Amount in crore)

1998-99 12

1999-2000 15

2000-01 100

2001-02 110

2002-03 130

2003-04 255

2004-05 570

2005-06 1180

2006-07 7080

2007-08 9210*Sources: IAMI Note: *Estimated


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Websites % use on

preferred

bases(2007)

Increase over

2006 (%)

Ebay 34% -4%

Rediff 25% -4%

Google 8% 5%

Yahoo 7% -0.50%

Indiatimes 7% -4%

Futurebazaar 6% 6%

Sify 2% 0.6%

Shopping 2% 0.40%

Amazon 1% -0.1%

India plaza 1% 0.6 %


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y DemographicCharacteristics

y Product Type

y Familiarity and Confidencey Consumer Attitude

towards E-shopping

y E-shopping Environmental

Characteristics


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y Rapid growth of cybercafs across India

y Access to Information

y The increase in number of computer users

y Reach to net services through broadband


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y Shop any time of the dayy Shop abroady Save timey Easy to do comparison shopping between products, as well as, online

storesy More easily you can find a product compared to brick-and-mortal

storesy Have more options compared to brick-and-mortal stores

y Easy to find real bargainsy Provided products are cheaper compared to brick-and-mortal storey

The whole buying procedure is more easily compared to brick-and-mortal storesy Consumers can find products that there are not in brick-and-mortal

stores

y Have much more time to evaluate and select a product


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y Online stores promise more than they can practicallyoffer

y Consumers can not completely trust them

y Online stores are not always official representatives oftheir offered products

y Consumers find it difficult to confirm the reliability ofthe provided products

y It is possible to have your credit card data interceptedy It is possible to buy a product that it would not value as

much as you pay for it


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Internal

Strengths Weaknesses

Global reach of businessLow cost to maintain and enhance the site, notrestricted by foot printStock is recognized brandsPurchase price can be less than off line shopsStrong competition for warehousing anddistribution keeps costs downEasy to remain in touch and build relationshipswith customers (Email, SMS, e'zine)Use existing distribution networks (Postage)

No shop front to accept returnsPeople need to find our site, there is no othermarketingLack of shop brand recognitionHard to scale up to respond to peaks and troughsin demandLimited financial capital to fund web siteoptimizationLarger or heavy toys have high delivery costdiminishing the online price advantage.Low web development skills in house we arereliant on outsourcing

External

Opportunities Threats

Established traffic and high number of repeat

customers may enable increased sales through theaddition of complimentary product lines

Increased use of the internet for shopping with the18 to 35 age group suggests that additional salesmay come from stocking toys for this age group

Improve organic search ranking to reduceadvertising costs

The internet has no barriers to entry which means a

better financed business or an established retailbusiness may seek to compete in this niche.

eBay and other online auction sites have tradersselling similar products

Buyer reluctance to shop over the net (Diminishing) Quality issues from overseas suppliers damaging the

reputation of brands we sell Lager business with greater buying power may

undercut our prices to gain online market share


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Title of the study:

y Consumer Perception toward Online Shopping in Ahmedabad city

Statement of the Problem:

y Many times we heard that Indian people have touch and feelkind of behavior before purchase the any goods and services. Hence this research is tostudy the perception of Indian people during online shopping. And find out reason

behind to go through online shopping and vise a versa. Hence, through our projectConsumer Perception toward Online Shopping in Ahmedabad city (Drive inroad, Gurukul, Vastrapur) we will find out same.

Objective of the Study:

y 1 To study the risk of online shopping,

y 2. To study the past experience with online shopping,

y 3. To study the benefits of online shopping,

y 4. To study the ease of online shopping, and

y 5. To study the level of uncertainty of online shopping.

y 6. To study reasons for using online shopping (adopters only)


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y Population: Citizens of Ahmedabad cityy Sampling Area: Taken from Vastrapur, Gurukul area, Drive in

Roady Sample Size : 203 Consumers= Approx. 200 consumers

Here, consumers refer any person who ever done shopping whetherfrom internet or brick and mortal store.= (.95)*(.05)*(1.96)^2/(.03)^2

Where p= probability of respondents 95%=0.95q= probability of non- respondents 5%= 0.05E= 0.03=p^-p=error of estimation

Z=98% confidence level value is= 1.96(from the Z-table)y Sampling Technique: Non probabilistic sampling and

Convenience Sampling


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y Research Design: Descriptive study

y Age Group: 18 and above

Statistical techniques

y Bar Diagramsy Pie-Chart

Data collection:

y

Primary datay Secondary data

Limitations of the study:


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y

Age


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2%

12%

46%

40%

No.ofRespondent

No Formal Education High School

Graduate Post Graduate


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20.5%

79.5%

No. ofRespondents

Yes No


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y Majority of the young people are at least graduate, so education in todays scenario is

increases very rapidly.y Todays era is internet era; in our survey we find that all people are aware about internet.

y We find that majorityof people are aware about online shopping.

y Wide variety of product, time saving, lower price, quicker delivery, full productinformation are the main reasons Which attracts consumer to do online shopping

y Almost people buy online only1 or 2 times in quarter.

y Travelling tickets, CD AND DVDS, computer software and hardware, and books are mostselling items in online shopping.

y Majority people feel that security and trust, poor site design, price differentiation,difference between ordered quantities are the biggest reason which resists them to repeatpurchase.

y Majority of the people shops by debit card .

y Non-adopters of online company feel that security and trust, touch and feel experience,prefer from brick and mortal store are crucial reason for not doing online shopping.

y Around 60% people ready to keep shopping.


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y Majority of the people of not doing online shopping just

because of security and trust problem so, company has toensure them (consumers) authentication of system(website) from they are purchasing or planning topurchase.

y Almost male people are doing online shopping, female areless interested in online shopping, so company has to dopromotional activity which attracts more female to doonline shopping

y As we know majority of people are simply graduate, socompany has to provide language options to make easyonline shopping

y Time saving, quicker delivery & wide variety of goods arevery crucial in online shopping, so company has to improvetheir site design so consumer do not get confuse. Andimprove the distribution network to reduce delivery time


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y To sustain in competitive market increase the frequency rate of onlineShopping.

y Company has to increase traffic on his website by providing salespromotion, various discount offers, promotional activities, rebate etc.

y

Many of the consumers complaint that delivered quantity are differentfrom the ordered quantity. So company has to take care of it.

y 30% of people do not recommend to others to do online shopping, socompany has to satisfy them so they can increase positive word ofmouth.

y

If possible for online website than they provide proper video for theproducts regarding how to use the product, what are the feature of theproduct so consumer feel some touch and feel kind of experience.

y The retailers must make sure that their website is out of malwares andvirus attacks.


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y Todays era is internet era, majority of the people areaware about internet as well as online shopping. Butvery few people are doing online shopping becauseIndian typical mentality to touch and feel kind ofexperience before purchase. Indian people are verydifferent from other country people they believe infirst buy product and then pay. Time saving is the mostimportant factor which leads to do online shopping.

Security is also crucial factor which resist doing onlineshopping

y


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Philip Kotler, Keller, Koshy, Jha, Marketing Management, 13th edition

Schiffman and Kanuk, ConsumerBehavior, IX edition

Naresh Malhotra and Dash S., Marketing Research, V edition

www.emarketer.com

www.iamai.in Bhatnagar, A., Misra, S. and Rao, H. R. (2000) On risk, convenience, and

internet shopping behaviour - why some consumers are online shoppers whileothers are not, Communications of the ACM, 43 (11), 98-105.

Baker, C. R. (1999) An analysis of fraud on the Internet, Internet Research:Electronic Networking Applications and Policy, 9 (5), 348-359.

Alba, J., Lynch, J., Weitz, B., Janizszewski, C., Lutz, R., Sawyer, A. and Wood, S.(1997) Interactive home shopping: consumer, retailer, andmanufacturerincentives to participate in electronic marketplaces, Journal of Marketing, 61(3), 38-53.


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y Choi, J. and Lee, K. H. (2003) Risk perception and e-shopping: a cross-cultural study, Journal of Fashion Marketing and Management, 7 (1),49-64.

y Ernst and Young (2000), Global Online Retailing, [Online], [RetrievedJanuary 27, 2003], http://www.ey.com

y Cronin, J.J, J.r & S.A Taylor factors to be considered in onlineshopping Main source Journal of Applied Business Research FourthQuarter 2006 Volume 22, Number 4

y Wolfinbarger, Mary and MaryGilly, (2001). Shopping Online forfreedom control and fun, Vol. 43 (2): 34-55

y Parasuraman, A., Zeithaml, V. A. and Malhotra, A. (2005) E-S-Qual: amultipleitem scale for assessing electronic service quality, Journal ofService Research, 7 (3), 213-233.

y Retail Merchandiser (2003) Online spending jumps 18 per cent, RetailMerchandiser. [Online], [Retrieved December 22, 2003],

http://web.lexisnexis.com/universe/documenty Dellaert, B., Monsuw, T.P., & Ruyter, K. (2004). What drives

consumers to shop online? A literature review. International Journal ofService Industry Management, 15(1), 102-121.


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y Gefen, D(2000) E-commerce: the role of familiarity andtrust, Available:http://portal.acm.org/citation.cfm?id=569910

y Belanger, F., Van Slyke, C., & Comunale, C. (2002). Gender

differences in perceptions of web-based shopping.Communication of the ACM, 45, 82-86.

y Dr. A. Sajeevan Rao, Mokhalles Mohd. Mehdi, Onlineuser behavior in Delhi-a factor analysis (2007), Indianjournal of marketing, July, 2010

y Dr. Muthamizh Vendan Murugavel, E-Tailing marketscenario in India (2008), Indian journal of marketing,August, 2010


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y Age

18-25 years 26-30 years 31-35 years 36-40 years >40 years

y Marital Status

y Single / Married

y Gender

y Male / Femaley What is your education level?

No Formal Education High School Graduate Post Graduate

y Profession ____________

y Q.1 Are you familiar with internet?

Ans. Yes No

y Q.2 Do you have internet availability?

Ans. . Yes No

y Q.3 Are you aware about online shopping?

Ans. Yes No


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Q.4 Have you done ever online shopping? Ans. . Yes No(If your answer is 'No', please jump to question 13.)

Q.5 facts regarding online purchase.

Reasons Strongly

Agree

Slightly

Agree

neither Slightly disagree Strongly disagree

Wide variety of products

Easy buying procedure

Time savings

Lower prices

various mode of

payments

After sales service

Quicker delivery

Qualitative product

Good Satisfaction level

Desire to keep shopping


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Q.6 Nos. of online purchase per quarter (3 month)?Ans. 1 time 2 times 3 times more than 3 timesQ.7 Which kinds of product do you buy through online shopping? Ans. Computer hard ware and software travelling tickets CDs and DVDs Consumerelectronics books Any others than specify..

Q.8 which are the most effective drivers which resist you to repeat purchase?

Most effective drivers Strongly

agree

Slightly

Agree

neither Slightly disagree Strongly disagree

Security and trust problem

poor site design

price differentiation

Inadequate information

regarding product

Shipping delays

Difference between orderedquantity and delivered

quantity

Difference between ordered

quality and delivered quality

Any other reason..


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Q.9 which instruments you use to buy? Ans. Debit card credit cardQ.10 Buying patterns of online shopping?Ans. Search online but buy & pay at stores

Search and buy online but pay in cash on deliveryS

earch, buy and pay onlineQ.11 You Recommendations to non online buyers for online shopping?Recommend Not Recommend

Only for non-adoptersReason for not using online buying.

Strongly

agree

Slightly

Agree

neither Slightly

disagree

Strongly

disagree

Touch and feel kind of experience

Not having any credit card or debit card

Promotion and advertisement

Customers review availability

Unaware of buying procedure through internet

Prefer to buy from brick and mortal stores

Security and trust problem

Sign of respondent


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Rise of Internet in India and Worldwide

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