Volume XVI December 2016 - Hinduja Journal
Transcript of Volume XVI December 2016 - Hinduja Journal
Volume XVI
December 2016
ISSN 0975-1211
REVELATION
The Research Journal
of
K.P.B. Hinduja College
Volume XVI
December 2016
K.P.B. Hinduja College of Commerce
315, New Charni Road, Mumbai 400 004.
ISSN 0975-1211December 2016
Editorial Board
Chief Editor: Dr. (Ms.) Minu Madlani
Executive Editor: Dr. (Ms.) Rajeshwary G.
Advisors:
1. Dr. J.F.Patil
2. Dr. S.K.G. Sundaram
3. Dr. L. M. Dani
4. Dr. G.M.Talhar
5. Dr. R.R.Khan
6. Prof. Balvinder Singh
7. Prof. Rajendra Shah
Place of Publication: K.P.B. Hinduja College of Commerce
315, New Charni Road,
Mumbai 400004.
Views expressed in the articles are those of the authors and do not necessarily represent
those of the Editor of the Journal. All rights are reserved. No part of this publication may be
reproduced or copied in any form by any means without prior written permission.
ISSN 0975-1211
Vol. No. 16 December 2016
Contents
Sr. No. Subjects Page No.
1 Foreword from the Chief Editor v
2. From the Executive Editor’s Desk vi
3. A Study on Attitude of Commerce Students towards TraditionalLearning & E-Learning
Ms. Shehnaaz Nazkani
1
4 Consumer Behavior towards Organized Retail Outlet, a Case Study
of Big Bazaar with Special Reference to Nasik City
Principal Dr. (Ms.) Chitra NatrajanMs. Vanshika Vanjani
13
5 Online Shopping: A Study on Factors Influencing Consumer’sPerception towards Online Purchase
Ms. Samira Sayed
22
6 Marketing Strategies and Consumer Behaviour of Patanjali in the
Fast Moving Consumer Goods and Ayurveda Segments
Prof. Savina Shenoy
34
7 Compensation Management in Unorganised Sector- A Study of
Stone Crushing Industries in Mandya District
Dr. Nagaraju C.
50
8 A Study on Consumer Preferences towards Ola/ Uber Services with
Special Reference to Mumbai
Ms. Jyoti Singh
65
From the Editor’s Desk
The Research Journal Revelation is being brought out by K.P.B. Hinduja College of
Commerce with a view to assist academicians, professionals and researchers to share
information on topics related to Growth and Development of Business in India. The aim of this
Journal is to encourage researchers to contribute research articles based on Industry
Studies or on the Findings of Research Projects that have been executed. Issues relevant to
the growth and development of Indian Economy, in the streams of Arts, Science, Social
Sciences, Economics, Commerce and Management are also welcome.
Original research articles based on an up to date review of literature and supportive
primary/secondary data are invited.
Frequency of Publication: Biannual
Contact Address:
K.P.B. Hinduja College of Commerce, 315, New Charni Road, Mumbai.400 004.
Phone 022 4098 9000 Fax : 2385 93 97.
Email : [email protected]
Executive Editor’s E mail address: [email protected]
Foreword from the Chief Editor
Today, with urban planning taking a virtual backseat, Indian cities have become highly
congested and chaotic. Good city planning necessitates various critical elements such as the
provision of clean water for citizens, sewage treatment, robust road infrastructure and
efficient transport networks.
India faces a wide range of urban challenges ranging from serious air pollution and poor
local governance to badly planned cities and a lack of decent housing. India’s Smart Cities
Challenge, which has selected certain cities that will receive funding could go a long way in
addressing these issues.
Urbanization in India has become the victim of systemic inefficiencies and a paralysis of
policy. Less emphasis is laid on modern methods of town planning which would ensure
better health for their residents; facilitate better time management and save natural resources,
besides making more land available for productive usage. A paradigm shift from the old-
fashioned and conservative approach to a broadminded and modern approach to urban
planning is the need of the hour.
Over the past few decades, without any futuristic planning, several Indian cities have
expanded haphazardly mainly on account of the rapidly growing population. The
government’s recent announcement of 100 Smart Cities and AMRUT (Atal Mission for
Rejuvenation and Urban Transformation) of 500 cities are a ray of hope for urban
development in the coming years.
According to the Prime Minister, Shri. Narendra Modi, the five key instruments of a ‘Smart
City’ are the use of clean technology; the use of information and communications technology
(ICT); private sector involvement; citizen participation and smart governance.
Strong emphasis and focus needs to be given to urban planning. Efficient utilization of space,
resources and the health of residents will go a long way in laying the roadmap of future cities
in India. An analysis of the planning and layout patterns of existing modern global cities
could give a good perspective on modern planning.
Density is the key to a make public transit work and also to ensure safety. Dense pedestrian-
focused cities prevent crimes unlike cities spread on vast lands. Dense cities that have street
front stores have taken a big step in creating an automatic safety measure.
A pedestrian-focused city has a lot more advantages, such as improved health of citizens.
More people on the streets will also mean opportunities for social interaction, thus facilitating
a socially inclusive community.
Smart Cities are crucial for India to be competitive and productive. With the ‘Make in India’
campaign in full flow, India has become a preferred destination for setting up facilities which
means greater need for land, escalating traffic, more people on the streets, etc. Dense, mixed
use and pedestrian-focused planning will help make our cities economic engines, job
creators, safe, healthy and equitable.
Dr. Minu Madlani
Chief Editor
From the Executive Editor’s Desk…
As expanding metros swamp villages on their way, the solution to a crisis waiting to explode
perhaps lies in designing cities explicitly for the rural areas. Half the world’s population lives
in cities. Of the three billion urban dwellers, one billion live in slums. In India, three out of
five people live in slums. An increasing migration from the villages will make that four out
of five within 10 years.
The new census figures on urbanization have suddenly revived the age-old migration debate
that has existed since the rejection of the Gandhian view that village life could be filled with
dignity and virtue. Sadly, the argument of making a life in the village today can only be
tinged with hollow laughter: derelict, teacher less schools, abandoned health centres, parched
lands and a continuing social divide – all make the city slum and footpath an attractive
option. The old hopes of government largesse lie tattered in the complete demise of public
rural programmes, undone by years of ineptness and corruption.
In the last 50 years, however, public action related to the influx into towns has only
accommodated trends, leading either to increasing densities or to the widening of city
boundaries. Indian cities have neither really endorsed particular urban values, nor have they
had the will to govern. There are daily wars on water supply, roads, electricity, school
admissions and government departments. With no restrictions on cars, no congestion tax,
uncertainty about mixed use living, changing and changeable building norms, thoughtless
codes on historic preservation, the city is little more than a modern day trading outpost – a
marketplace to extract favours, exchange goods and earn a livelihood.
If the cities are to provide better basic services to their growing populations, three linked
steps are needed: cities must be given full autonomy; they must adopt modern management
systems and strong measures must be taken to improve governance. The autonomy for cities
should encompass functional autonomy, financial autonomy and administrative autonomy.
There is also a need to overhaul the land use planning process which lacks any economic
rationale and is subject to frequent litigation and court intervention. Modern management
practices should include a commercial orientation in service delivery. Water and sewage are
invariably mismanaged by municipal bureaucracies. Hence, they must be run by corporate
bodies responsible and answerable to the city government. Qualified staff, selected
transparently and competitively at all levels, specifically for management positions should be
encouraged. The main element of good governance should include a municipal law that sets
out the functions and responsibilities of the city government, the way in which it should
perform the functions and its accountability to the citizens. Besides, the appointment of an
inspector- general with the power to investigate citizen complaints and the monitoring of the
performance of the city government by citizen organizations that act as watchdogs against
malfeasance will also go a long way in the success of the endeavor.
Autonomy for city governments would diminish and redirect the state government’s power.
State bureaucrats are likely to resist changes to their turf, and state politicians are likely to
want to maintain their control over municipal resources and their opportunities for patronage
and aggrandizement, particularly in municipal appointments, transfer and land use
regulations. The only prospect for reform along the lines proposed is if an enlightened State
Chief Minister decides to place personal and party interests behind the interest of people.
Whether this will happen is difficult to say, but some States do show signs of such a change
in the political climate and this offers a ray of hope for a better future for overcrowded and
underdeveloped cities.
Dr. (Ms.) Rajeshwary
Executive Editor
1
A Study on Attitude of Commerce Students towards Traditional Learning & E-
LearningMs. Shehnaaz Nazkani
Abstract
The technological revolution has created a new dimension in total education development.
The concept of E-learning is very comprehensive. It covers a broad range of electronic media
like Internet, Intranets, Extranets, satellite broadcast, audio/video tape, interactive TV and
CD-ROM to make the learning procedure more elastic and operator friendly. The demand
among the users is growing day by day for e-learning due to its flexible nature. This initiative
has linked people around the globe and has helped in overcoming the hurdles related to age,
gender, location and time. The researcher aims to study the attitude of commerce students
towards traditional learning and E-Learning based on their gender and qualification.
Key Words- E-learning, traditional learning, attitude.
1. Introduction
Technology has dominated all domains of life. It has created high impact on all the fields
including education sector. In the last few years, the process of education has undergone
radical change in the way it imparts knowledge to its users. Nowadays, a great emphasis is
laid on the concept of digitalization and automation. Earlier the internet access was limited,
however now it is available to users at their place of work as well as home. Information is the
key to success in all the fields.
Concept of Traditional Learning
Traditional learning programs utilize the long-established technique of on-campus classroom
meetings for delivering course information and facilitating student conversation and debate.
Students meet at an assigned time and place to partake in class lectures, labs, study groups
and exams. Traditional learning environments are more structured than distance learning
programs and provide face-to-face contact with fellow students and professors. The
traditional learning comes in basic four forms: Classroom sessions, The Lab sessions, Library
sessions and Collaborative Learning.
∗ Asst. Professor, K.P.B. Hinduja College of Commerce, Mumbai.
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Concept of E-learning
The term E-learning means Electronic Learning and it is basically the online delivery of
information communication, training and learning. E-learning involves the use of computers
and Internet to aid in the learning process. There are four types of E-learning: Self Study
sessions, Asynchronous Learning, Synchronous Learning and V-Lab Sessions.
2. Review of Literature
1. Aggarwal Deepshikha (2009) stated in her study that e-Learning can be scrutinized at two
levels. The first one is education and another one is training. For education can be used at
both fundamental and advanced levels. In training it can be used by organizations to train and
upgrade their personnel. Knowledge and information is transmitted to users at a faster pace.
However in India there is a need to focus more on content development and availability of
multi lingual coursework.
2. Snehi Neeru (2009) indicates transformation of higher education in the country in terms of
access, equity and quality due to usage of ICT in education.
3. Shaikh Farhat Fatma, (2013), emphasized in her study that the major challenge related to
the concept of e-learning is to involve the major part of the India’s population leaving in the
rural areas. Other issues are related to lack of infrastructure in terms of connectivity,
availability of internet.
4. Rakesh H M (2014) highlighted that information and communication technologies (ICTs)
have vast potential in education sector. However, the enlargement, usage and change
management of E-Learning happens with a particular context.
3. Objective of the Study
The principal objective of the paper is to study the attitude of commerce students’ towards
traditional learning and E-Learning based on their gender and qualification.
4. Research Methodology of the Study
The research design for the study is descriptive in nature. The data has been collected from
primary as well as secondary sources. The researcher largely depended on primary data. The
required data were collected from the commerce students of South Mumbai colleges. Using
convenient sampling technique a sample size of 130 commerce students was taken into
consideration. The respondents were distributed well designed questionnaire to collect the
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responses from them. The secondary data have been gathered from published material in
various books, journals, newspaper, business magazines and various websites. The relevant
data so collected was analysed using simple percentage, Chi-square test and T-test
5. Analysis and Interpretation
Distribution of the respondents based on their gender and level of education is given in the
table below.
Table 1
Personal Profile of the Respondents
Variable Category Frequency Percent
Gender Of Students
Male 45 34.6
Female 85 65.4
Total 130 100.0
Level Of
Education
Undergraduate 61 46.9
Graduate 56 43.1
Post Graduate 13 10.0
Total 130 100.0
Source: Primary Data
The above table indicates that out of the total 130 respondents 34.6 per cent are male and
65.4 per cent are female. It also indicates that 46.9 per cent are undergraduate, 43.1 per cent
are graduate and only 10 per cent are post graduate.
Table 2
Respondent’s Frequency of Access to Computer at Home for College Work
Response Frequency Percent
Always 66 50.8
Sometimes 56 43.0
Never 8 6.2
Total 130 100
Source: Primary Data
4
The above table indicates that 50.8 per cent of students have always access, 43 per cent have
sometimes access and 6.2 per cent do not have access to computer at home to do their college
work.
Table 3
Respondent’s Frequency for Purpose of Using E-mail
Response Frequency Percent
For Communication 89 68.5
For Entertainment 4 3.1
For Sharing Study Material 30 23.1
Other 7 5.4
Total 130 100.0
Source: Primary Data
The above table indicates that 68.5 per cent of the respondents use their email for
communication purpose, 3.1 per cent for entertainment purpose, 23.1 per cent for sharing
study material and 5.4 per cent use it for other purpose.
Table 4
Respondent’s Frequency of Using Internet for Playing Games Based on Their Gender
Hour/week1 Hour/
Week
2 Hours/
Week
3
Hours/Week
More Than 3
Hours/Week
Gender of
Students Cou
nt % of
Total Cou
nt % of
Total Cou
nt % of
Total Cou
nt % of
Total Cou
nt % of
Total
Male 24 18.5% 7 5.4% 4 3.1% 10 7.7% 45 34.6%
Female 64 49.2% 4 3.1% 5 3.8% 12 9.2% 85 65.4%
Total 88 67.7% 11 8.5% 9 6.9% 22 16.9% 130 100.0%
Source: Primary Data
Inference:
It is inferred that 7.7 % of male students and 9.2 per cent of female students use internet for
playing games for more than 3 hours /week. Out of the total respondents, 16.9 per cent use
internet for playing games for more than 3 hours /week, 6.9 per cent use for 3 hours /week,
8.5 per cent use for 2 hours /week and 67.7 per cent use for 1 hour/week. Also, it is revealed
that, the percentages of female students are more than the percentage of male students who
use Internet for playing games at least one hour /week.
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Table 5
Respondent’s Frequency of Using Internet for Learning Based on Their Gender
Hour/Week 1
Hour/Week
2 Hours/
Week
3
Hours/Week
More Than
3
Hours/Week
Total
Gender Of
Students 1
Hour/Week
% of
Total Cou
nt % of
Total Cou
nt % of
Total Cou
nt % of
Total Cou
nt % of
Total
Male 12 9.2% 10 7.7% 6 4.6% 17 13.1% 45 34.6%
Female 33 25.4% 18 13.8% 10 7.7% 24 18.5% 85 65.4%
Total 45 34.6% 28 21.5% 16 12.3% 41 31.5% 130 100.0%
Source: Primary Data.
Inference:
It is inferred that 13.1 per cent of male students and 18.5 per cent of female students use
internet for learning for more than 3 hours /week. Out of the total respondent’s 31.5 per cent
use internet for learning purpose for more than 3 hours/week, 12.3 per cent use for 3
hrs./week, 21.5 per cent use for 2 hour /week and 34.6 per cent use for 1 hour./week. It is also
revealed that, the percentage of total students both Male and Female (34.6 per cent) who use
Internet for learning at least one hour/week is more than other responses.
Null Hypothesis: There is no significant association between the respondent’s frequency of
using internet for learning and their Gender.
Alternate Hypothesis: There is significant association between respondent’s frequency of
using internet for learning and their Gender.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.179a 3 .536
Likelihood Ratio 2.211 3 .530
Linear-by-Linear Association 2.009 1 .156
N of Valid Cases 130
Source: Primary Data. a0 cells (0.0%) have expected count less than 5.The minimum expected count is 5.54.Calculated value of Pearson Chi-square is 2.179.
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At the degree of freedom 3 and 5 per cent level significance the tabulated value of χ2 is 7.81.
As calculated value is lesser than the tabulated value null hypothesis is retained.
Result: Chi-square test statistics of 2.179 (sig value > 0.05) indicates that there is no
significant association between the two variables.
Table 6
Respondent’s Frequency of Using Internet for Learning Based on Their Qualification
Level of Education Hour/
Week
1
Hours/Week
2
Hours/Week
3
Hours/Week
More Than
3
Hours/Week Total
Undergraduate Count 24 10 8 19 61
% of Total 18.5% 7.7% 6.2% 14.6% 46.9%
Graduate Count 18 16 5 17 56
% of Total 13.8% 12.3% 3.8% 13.1% 43.1%
Post Graduate Count 3 2 3 5 13
% of Total 2.3% 1.5% 2.3% 3.8% 10.0%
Total Count 45 28 16 41 130
% of Total 34.6% 21.5% 12.3% 31.5% 100.0%
Source: Primary Data
Inference:
It is inferred that 14.6 per cent undergraduate students, 13.1 per cent graduate students and
3.8 per cent post-graduate students use internet for learning for more than 3 hours /week.
Whereas 18.5 per cent undergraduate students, 13.8 per cent graduate students and 2.3 per
cent post-graduate students use internet for learning for 1 hour /week.
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Table 7
Respondent’s Frequency for Searching Books to Find Information for a College
Project than Searching Website
Response Frequency PercentExpected
N
Obs
Chi-
Square
Table
Chi-
square
DF
Significanc
e at 0.05
level
Strongly
Disagree
8 6.2 26.0
56.077a 9.49 4 Significant
Disagree 30 23.1 26.0
Undecided 20 15.4 26.0
Agree 57 43.8 26.0
Strongly
Agree
15 11.5 26.0
Total 130 100.0
Source: Primary Data a. 0 cells (0.0%) have expected frequencies less than 5. The minimumexpected cell frequency is 26.0.
The above table reveals that, 43.8 per cent students agree and 11.5 per cent students strongly
agree that they prefer searching books to find information for a college project than searching
website.
From the above table, at the degrees of freedom 4 and 0.05 level of significance the table
value of χ2 is 9.49 and the obtained value of χ2 is 56.07. As the obtained χ2 is greater than
table χ2 value; hence the obtained χ2 is significant.
Consequently it is revealed that, there is a significant difference in believe that the students
prefer searching books to find information for a college project than searching website.
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Table 8
Respondent’s Frequency for Their Preference of the Web Assisted Activity Instead of
Textbooks because it had Animation and Sound
Response Frequency PercentExpected
N
Obs
Chi-
Square
Table
Chi-
square
DFSignificance
at 0.05 level
Strongly
Disagree4 3.1 26.0
53.923a 9.488 4 Significant
Disagree 21 16.2 26.0
Undecided 20 15.4 26.0
Agree 55 42.3 26.0
Strongly
Agree30 23.1 26.0
Total 130 100.0
Source: Primary Data. a. 0 cells (0.0%) have expected frequencies less than 5. The minimum
expected cell frequency is 26.0.
The above table reveals that 42.3 per cent students agree and 23.1 per cent students strongly
agree that they prefer web assisted activity instead of textbooks because it had animation and
sound.
From the above table, at the degrees of freedom 4 and 0.05 level of significance the table
value of χ2 is 9.488 and the obtained value of χ2 is 53.923. As the obtained χ2 is greater than
table χ2 value; hence the obtained χ2 is significant.
Consequently it is revealed that, there is a significant difference in believe that the students
prefer web assisted activity instead of textbooks because it had animation and sound.
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Table 9
Respondent’s Frequency for their Opinion that Websites Will Take over Books in the
Future
Response Frequency PercentExpected
N
Obs
Chi-
Square
Table
Chi-
square
DFSignificance
at 0.05 level
Strongly
Disagree2 1.5 26.0
70.923a 9.488 4 Significant
Disagree 11 8.5 26.0
Undecided 25 19.2 26.0
Agree 57 43.8 26.0
Strongly
Agree35 26.9 26.0
Total 130 100.0
Source: Primary Data. a. 0 cells (0.0per cent) have expected frequencies less than 5. The
minimum expected cell frequency is 26.0.
The above table reveals that 43.8 per cent students agree and 26.9 per cent students strongly
agree that websites will take over books in the future. From the above table, at the degrees of
freedom 4 and 0.05 level of significance the table value of χ2 is 9.488 and the obtained value
of χ2 is 70.923. As the obtained χ2 is greater than table χ2 value; hence the obtained χ2 is
significant.
Consequently it is revealed that, there is a significant difference in believe that the Websites
will take over books in the future
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Table 10
Respondent’s Frequency for Method Used to Improve Academic Achievement Based on
Their Gender
Gender of
studentsMethod
Traditional
Learning E-Learning BothTotal
Male Count 4 5 36 45
% of Total 3.1% 3.8% 27.7% 34.6%
Female Count 4 2 79 85
% of Total 3.1% 1.5% 60.8% 65.4%
Total Count 8 7 115 130
% of Total 6.2% 5.4% 88.5% 100.0%
Source: Primary Data
Inference:
From the above table we can infer that 27.7 per cent male students and 60.8 per cent of
female students use both the method traditional as well as E-learning for improving their
academic achievement. Out of the total respondents, 6.2 per cent students’ use only
traditional method and 5.4 per cent students’ use only E-learning for improving their
academic achievement. It is also revealed that, the percentage of total students (88.5 per cent)
who use both the methods is more than other responses.
Null Hypothesis: There is no significant impact of the gender on the method used to improve
academic achievement.
Alternate Hypothesis: There is significant impact of the gender on the method used to
improve academic achievement.
Group Statistics
Gender of Students N Mean
Std.
Deviation Std. Error Mean
Which of the
following method
do you used to
improve your
academic
achievement?
Male 45 2.71 .626 .093
Female 85 2.88 .448 .049
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Independent Samples Test
F Sig. T Df
Sig.
(2-
tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Equal
variances
assumed
10.95
6
.001 -1.800 128 .074 -.171 .095 -.359 .017
Equal
variances
not
assumed
-1.628 68.406 .108 -.171 .105 -.381 .039
As the Levene’s P value is less than 0.05 the variance are significantly different. Hence, we
will interpret the bottom row of results for t-test.
The P value for t-test is 0.108 which is greater than 0.05 i.e. the test is not significant. Hence,
the null hypothesis will be retained.
Result: There is no significant impact of the gender on the method used to improve academic
achievement.
6. Limitations of the Study
Following are the limitations of the present study:
1) The study is limited to commerce students of south Mumbai colleges only.
2) Due to time, geographical and financial constraints a sample size of 130 respondents only
has been considered for the study by using convenient sampling technique.
7. Conclusion
From the statistical analysis and interpretation of data collected it is found that for more than
3 hours./week 16.9 per cent respondents use internet for playing games whereas 31.5 per cent
use it for learning purpose. This indicates a welcome trend for e-learning among the
commerce students. It has been observed that there is no significant association between the
respondent’s frequency of using internet for learning and their Gender. This indicates that e-
learning is accepted as a tool to enhance knowledge by all the students. It is observed that the
students prefer searching books to find information for a college project than searching
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website which proves that the adoption of e-learning has been slow and needs a major
marketing and awareness effort. It is found that 88.5 per cent of the total students use both the
methods traditional as well as E-learning to improve their academic achievement which
means there is no impact of gender on the method adopted by students. It also indicates that
students have realized the prominence of modern technology on their studies. We can
conclude that E-learning will be widely used in future due to its flexible nature and its ability
to provide for right information at right time and in the right place.
References
1. Shaikh Farhat Fatma (2013), “E-Learning trends issues and challenges”, International
Journal of Economics, Commerce and Research (IJECR), Vol. 3, Issue 2,pp. 1-10.
2. Ali Tizro et. al (2014), “Identification and Classification of E-Learning Barriers in
Universities: Confirmatory Factor Analysis (Cfa)”, APJEM Arth Prabhand: A Journal of
Economics and Management, Vol. 3, Issue 10, pp. 105-117.
3. Aggarwal Deepshikha (2009), “Role of e-Learning in A Developing Country Like
India”, Proceedings of the 3rd National Conference; INDIACom-2009
4. Rakesh H M (2014),” Contextual Factors in using E-Learning Systems for Higher
Education in India”, IOSR Journal of Business and Management, Volume 16, Issue 2,pp.
98-102.
5. Snehi Neeru (2009), “ICT in Indian Universities and Colleges: Opportunities and
Challenges”, Management & Change, Volume 13, No. 2, pp. 231 – 244.
6. Soni Ravindra Kumar (2015), “A study of problems and prospects of e learning in
India”, A Thesis Submitted to Devi Ahilya Vishwavidyalaya, Indore.
7. Premalatha T (2011),”Perception of faculties and students on e-learning in professional
colleges”, Thesis submitted to Madurai Kamaraj University, Madurai.
8. Raut, Jayashree S (2008), “A study of traditional learning and e-learning of final year
students of medical, dental and engineering and their efficacy on their academic
achievements”, Thesis Submitted to Sant Gadge Baba Amravati University, Amravati.
9. Kakoty S, Lal M & Sarma S (2011), “E-learning as a Research Area: An Analytical
Approach”, (IJACSA) International Journal of Advanced Computer Science and
Applications, Vol. 2, No. 9, pp. 144-148.
10. http://study.com/articles/Traditional_Learning_Versus_Distance_Learning_A_Comparis
on.html.
13
Consumer Behavior towards Organized Retail Outlet, a Case Study of Big Bazaar with
Special Reference to Nasik City∗ Principal Dr. (Ms.) Chitra Natrajan∗∗Ms. Vanshika Vanjani,
Abstract
In the last decade, we have seen a major growth and development in the retail sector of India.
Still now the major dominating sectors are the small and unorganized entrepreneur which
includes the local shops, Kirana stores, standalone stores, boutiques, the traditional family
stores, etc. But because of the growing Global economic powers, new economic policies, FDI
relaxations, and unique marketing strategies the modern retailers like shopping malls,
Hypermarkets saw a growth too, they tend to hook consumers even in Tier II and Tier III
towns. Organized retail sector is growing at rapid speed. The organized retail sector is
growing very tremendously and is providing more job opportunities to people, town plans are
getting better and modern, and eventually improving the consumer behavior too. This
transition is happening in a worldwide level in different forms and the shopping behavior of
consumer also changes with the changing choices and trends. This study is analyzing the
consumer behaviour towards organized retail outlet, a case study of Big bazaar with special
reference to Nasik city (Maharashtra, India).
Key Words: consumer behaviour, organized retailing, unorganized retailing
Introduction
The Indian retail sector is growing very rapidly with the changing demographics and
improvement in the standard of living of the people in the cities. The betterment of India's
consuming class, the growth of retail entrepreneurs and a variety of options available in
imported products particularly in food and grocery. Retailing is defined as a definite set of
activities or steps used to sell a product or a service to consumers for their personal or family
use. It becomes important for matching individual demand of customers by providing
supplies of all the manufacturers. The Indian Retail Industry has grown to be one of the most
∗ Principal. Chandrabhan Sharma College of Arts, Science and Commerce, Powai Vihar, Powai, Mumbai.∗∗ Asst.Professor, K.C College of Arts, Commerce and Science, D.W Road, Churchgate, Mumbai.
14
dynamic and fast growing industries because of the entry of several new players. This
industry accounts for over more than 10% of the country's Gross Domestic Product (GDP)
and around 8% of the employment. India is the world's fifth largest global destination in the
retail space. By 2020 India's retail market is foreseen to grow twice from US dollars 600
million in 2015 to US Dollars1 trillion, run by income growth, urbanization and attitudinal
shifts. While the overall retail market is expected to have an upward trend at 12% per annum,
modern trade would expand double the pace at 20% per annum and traditional traded 10%.
Retail Classification
Retail sector in India is divided in nature while on one side there are traditional retailers
called as an unorganised retailers to who exist in the economy since decades and hence
dominating the maximum share of retail business, but the organized sector of retailing is not
able to catch the real potential of the Indian retail market which are slowly grown the new
class of retailers called as the “organized retailers” who grew the new concept of retail trade
called as organized retail. This organized retail consists of various trading activities taken
over by corporate sector who manages huge retail outlets or chains of stores inside the city or
across the city using carefully chosen and trained personnel on huge scales. They are more
managed and systematic compact structures run by professionals. This has given rise to
organized retail and it is becoming a very important category of Retail Industry today and has
changed the whole concept of retail. It brought a revolution in the shopping orientation of
customers.
Consumer Behavior towards Organized Retail Outlets
Consumers prefer organized retail outlet as the best place to shop for hangout in the hot
summer as it's free of cost to enter inside this completely air condition complexes with proper
music playing around and various options of Window shopping which is enjoyed and
appreciated by everyone. The various food joints that offer different cuisines meant to create
a centre of attraction for all the food lovers. Also, retail outlets are very popular among all
ages. These serve various purposes like shopping, entertainment, get together, dating or
something as mere as a free of cost good place for passing time. These experiences were
never experienced by people before and hence have changed the trains to a level that the
glamour can also now be seen in real life in the small cities and major cities which were
earlier seen only on television screen. It has become possible to experience all this in his or
15
her own neighborhood. Today almost every region has malls and other formats of organized
retail.
Factors Responsible for the Growth of Organized Retail Outlets
Organized retailing developed recently. It is an outcome of socio economic factors. India is
standing on the peak of retail revolution. Healthy economic growth, changing demographic
profile, increasing disposable income, changes in the consumer taste and preferences are a
few of the main factors that are leading the growth in the organized retail market in India.
Following are the Factors Responsible for the Growth of Organized Retailing in India
1. Growth of middle class consumers
India is seeing a rapid growth in the number of middle class consumers. With the rise in the
consumer demand and greater disposable income it has given the Retail Industry an
opportunity to grow and prosper.
2. Increase in the Number of Working Women
Today the urban women are literate and qualified. They have been maintaining a balance
between home and work and the purchasing habit of a woman who is working is different
from a house wife.
3. Value for Money
Organized retail details in great volume and they are able to enjoy economy of large scale
production and distribution. They eradicate intermediaries in distribution channel.
4. Emerging Rural Market
Today the rural market in a country is having a tough competition in retail sector. These rural
markets are growing fast as the rural consumers are becoming aware of the quality of
products.
5. Entry of Corporate Sector
The huge business tycoons such as Tata, Birla and Reliance etc. have also entered the retail
sector and are able to provide good quality products as well as entertainment.
6. Entry of Foreign Retailers
Indian retail sector has got the interest of foreign retailers. Multinational have entered our
country through joint ventures and franchising due to liberalization.
7. Technological Impact
Technology is one of the most dynamic factors which lead to the growth of organised
retailing. Introduction of computerization, electronic media and Marketing Information
16
System have helped the face of retailing. Organised retailing in India has a huge future
because of the last market and the growing awareness of the consumer about quality of
products and services.
8. Rise in Income
Increase in the literacy level has eventually led to the growth of income among the
population. This growth has taken place not only in the urban areas but also in the rural towns
and remote places.
9. Media Explosion
They have been a tremendous explosion in media due to satellite television and Internet.
Indian customers have been exposed to a better lifestyle of different countries. They have
started expecting better quality products and have given rise to more demands of choices and
money value services and conveniences.
10. Rise of Consumerism
With the creation of consumerism, the retailer faces a more enlightened and demanding
consumer. As a business exist in order to satisfy the consumer needs, the growing consumer
expectation has stressed on the retail organizations to change the format of retail trade.
Consumer demand convenience, comfort, time, location etc are the important factors for the
growth of organized retailing in India.
Review of Literature
1. A. Kumar (2014) wrote in his book “Retail sector in India” where he majorly spoke and
focused on the consumer behaviour and the various retail outlets where he personally
believes that the consumers of the nation today are very different regarding value sensitive
who are not very sensitive towards pricing. In his book, he also said that the consumers are
not very concerned about the brand name as much as the features. This led to the shopping
malls where most of the features are available at one place like entertainment along with
shopping.
2. D.Gilbert (2003) in his book “Retail Marketing Management” has found out the various
reasons behind the growth of modern retailing. In this book, he tries to understand why this
growth in retailing is taking place. According to him we are saying the start of new forms of
retailing more than other forms of Business and hence we are getting more divided with
17
reforms focusing on the requirement of a specific consumer’s segment. This leads to a more
consumer-friendly atmosphere.
3. K. Biyani (2007) in his book “It happened in India” focuses on relationships through his
book, relationships with consumers employee, share holders and majorly family and friends.
The author also speaks about the building trust and explains us how important it is to have
trust from both the sides in a relationship. He also talks about forming a sentimental
connection with the customers. He stresses on Indian qualities in the business and how he
studied Indian customers with a lot of interest. He also revealed that even today he makes
sure he visits his stores and checks on the consumers personally to know and understand the
needs and their thoughts.
Objectives of Study
1) To know the overall satisfaction level of the consumers, buying products from big bazaar
in Nasik.
2) To study the preferences of consumers towards big bazaar and unorganized small stores
in Nasik.
3) To know the factors influencing consumers to buy products from organized retail outlets
like big bazaar in Nasik.
Hypothesis of the Study
H01: Organized retail outlet (Big Bazaar) and small retail stores are equally preferable by
consumers in respect of offers, price and quality of products provided by them in Nasik.
H11: Organized retail outlet (Big Bazaar) is more preferable by consumers than small retail
stores in respect of offers, price and quality of products provided by them in Nasik.
Scope of the Study
The study is focusing to market analysis of organized retail outlet (big bazaar). Therefore, the
scope of the subject is restricted to the above topic. For this study sample size is taken from
consumer’s side.
The study will be limited to organized retail outlets in Nasik like, Big Bazaar (Nasik road) and
Big Bazaar (College Road Branch)
18
Research Methodology of the Study
A proper research methodology is adopted to achieve the set objectives and the information
needed is collected through questionnaire method.
a} Data collection: The data is collected by using the following sources.
i} Primary data: As the study is focused only in Nasik, primary data is collected from
consumers visiting organized (Big bazaar) and unorganized retail outlets in Nasik.
ii} Secondary data: Secondary data is collected through newspapers, business magazine,
internet sites and relevant books.
b} Research instrument: The data collection is done, using structured questionnaires.
c}Sample selection: Random sampling technique is used to collect data through
questionnaire method.
d} Sample size: Questionnaires were administered with 100 consumers who visit organized
(big bazaar) and unorganized retail outlets in Nasik
Data Analysis and Interpretation of the Hypothesis
H01: Organized retail outlet (Big Bazaar) and small retail stores are equally preferable by
consumers in respect of offers, price and quality of products provided by them in Nasik.
H11: Organized retail outlet (Big Bazaar) is more preferable by consumers than small retail
stores in respect of offers, price and quality of products provided by them in Nasik.
Table 1
Preferences towards Organized and Small Retail Shops
Particulars Groupings Organized Retail Small Shops
Age Under 18 years 12 2
19 years -34 years 42 1
35 years -50 years 27 9
51 years -65 years 4 1
66 years and above 1 1
Gender Male 11 6
Female 75 9Source: Primary Data
19
Table 2
Chi-square Test:
Test Statistics
Value
Chi-Square 51.840a
Df 1
p-value .000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum
expected cell frequency is 33.3.
Residual Table
Preferences of Consumers towards Organized Retail Outlet (Big Bazaar) and Small
Stores in Nasik
Observed N Expected N Residual
Yes 86 50.0 36.0
No 14 50.0 -36.0
Total 100
Since p-value for the chi-square is less than that of 0.05 indicates we should reject null
hypothesis and conclude that the consumers prefer organized retail outlets over small stores
in Nasik. The residual value for yes is positively deviated, this indicates that respondents
prefer organized retail outlet (big bazaar) than small retail shops in Nasik.
A variety of questions were asked in the questionnaire, basically to identify important factors,
which influence consumers towards big bazaar than small retail outlets in Nasik. Due to
limitation of time researcher tried to find out the responses among only two hypermarkets i.e.
Big bazaar (College road branch) and Big bazaar (Nasik road branch) and some questions
were related to small retail outlets. A question was asked to the consumers regarding giving
preferences among Big bazaar and small retail outlet. Out of 100 consumers which were
selected based on random sampling technique, given preferences to Big bazaar, as 86
consumers were in favour of buying products from Big bazaar because they get good offers
20
there and they get better products with comparatively cheaper price and they like the quality
of product as products in big bazaar go through a proper quality control and rest 14
consumers, buy from small retail outlets near their vicinity. They didn’t have any negative
impression regarding big bazaar but they said they like to buy from a particular shop as they
are buying these products since number of years from that shop.
Question regarding the age, gender, income and occupation and frequency of visit were also
asked to know whether demographic factors influence consumer behaviour towards
hypermarket like big bazaar. Irrespective of age, gender, income, occupation and frequency
of visit, majority of consumers preferred big bazaar. According to majority of consumer’s big
bazaar give them everything under one roof and it’s a market for everyone and for every age
group. As big bazaar, has multiplex and some food corners, which attracts consumers towards
big bazaar, as they can do shopping, eat food and can get entertained at one place.
After demonetization, majority of consumers prefer to make use of plastic money rather
doing cash transaction and carry high denomination notes and majority of small retailers still
believe in cash transaction in Nasik, so this also one of the factors of consumers shifting
towards big bazaar. Overall satisfaction of consumers towards big bazaar is positive as they
like the post sales services of products provided by big bazaar.
Conclusion
Majority of consumers have become more sensitive to quality, customer service and status.
They are basically looking for an experience which is more of cognitive than physical. The
above analysis also proved that the overall satisfaction level of consumers is much higher
than the small retail stores in Nasik. “Retailing is like riding a bicycle, you can't stop
pedaling," so the small retail stores should frame some policies or come up with some new
strategies to attract more consumers in Nasik.
References
Books
1. Kumar, A. (2014) “Retail sector in India”, Sholapur, Maharashtra: Laxmi Book
Publication.
2. D. Gilbert (2003) “Retail Marketing Management”, 2ndEd, Pearson Education.
21
3. Biyani, K. (2007) “It happened in India, Mumbai”: Rupa Publications.
4. Nayar, P. (2009). Packaging life, New Delhi: First Bookstores.
Research Papers:
1. Bikramjit Rishi, Harvinder Singh (October 2012) “Determinants of supermarket shopping
behavior in an emerging market”. Journal of Business and Retail Management Research
(JBRMR), Vol 7, Issue 1, pp 27-38.
2. Medha Kanetekar (2013, June) “Impact and effect on consumers of organized Retailing in
India” Proceeding of the International Conference on Social Science, Vol4, Issue 5, pp 186-
200.
3. Piyush Kumar Sinha (2003) “shopping orientation in evolving market”, Piyush Kumar
Sinha (2003) “shopping orientation in evolving market”, vikalapa, vol8, issue2, pp13-22.
4. Roy, Satyajit (2011)”An Overview of Retail Industry in India: Its Growth, Challenges and
Opportunities”. Available at SSRN: https://ssrn.com/abstract=1750794 or
http://dx.doi.org/10.2139/ssrn.1750794 ,retrieved on 15thmay, 2017
Websites:
1. http://www.yourarticlelibrary.com
2. www.wikipedia.com
3. .https://www.ibef.org
22
Online Shopping: A Study on Factors Influencing Consumer’sPerception Towards Online Purchase
Ms. Samira Sayed
Abstract
The internet revolution has brought about a paradigm shift in the way things are done. The
internet and worldwide web (www) have dramatically changed the way consumers seek and
use information. Along with the Internet an opportunity has emerged, the possibility to make
purchases online is called Electronic Commerce (E-commerce).With increasing internet
literacy, the prospect of online shopping is increasing in India. Online shopping is more
accessible than it has ever been. The aim of this study is to understand the perception of the
consumer’s perception towards online shopping. The study of consumer’s perception will
help domestic retailers who hope to or has already entered the field to apply marketing
strategies.
Key words: E-Commerce, Online Shopping, Demographic Factors, Consumer Perception.
Introduction
Today Internet is not only a networking media, but also as transaction medium for consumers
at global market in the world, and becomes dominant retailers in the future. 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
communicates and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers. Electronic Shopping also known as Online
Shopping is a recent phenomenon in the field of E-Business and is definitely going to be the
future of shopping in the world. Most of the companies are running their on-line portals to
sell their products/services on-line. Though online shopping is very common outside India, its
growth in Indian Market, which is a large and strategic consumer market, is still in line with
∗ Assistant Professor & Course Co-ordinator B.com Accounting &Finance, K.P.B.Hinduja College ofCommerce, Mumbai.
23
the global market. The potential growth of on-line shopping has triggered the idea of
conducting a study on on-line shopping in India.
Consumer is the subject of market and the critical strength of existence and development of
enterprise. The consumer demand affects an enterprise’s marketing decision fundamentally,
which is the basic consideration for an enterprise choosing the marketing strategy and tactics.
In order to understand the driving forces toward online shopping it is important to recognize
consumer’s perception about online shopping. The study aims at understanding consumer’s
perception towards online purchase.
Objectives of the Study
• To understand the consumer’s perception about online purchase.
• To examine the various factors affecting consumer’s perception towards online purchase.
Research Methodology
In order to achieve the objectives of the present research the data / information required are
collected from the different sources. For the study the data has been collected from primary
as well as secondary sources.
Primary data is collected with the help of a structured questionnaire. Samples were collected
from consumers and buyers of online shopping in which the total sample size of respondents
are 250. For the present study, non-probability sampling technique was used.
The secondary data is collected from various published sources such as books, journals,
newspapers etc.
Results and Discussions
In order to understand the customer’s perception towards online shopping the questions on
demographic profile of the respondents like age, gender, qualification, marital status,
profession and income level were asked. The questionnaire also consist questions related to
the factors that influence online purchase decision. In addition to these questions, there were
various statements asked to the respondents related to the preference of choices for online
purchase, perception of the risk factors which are part of online shopping. In few of the
questions the respondents were asked to rate them on Likert Five Point Scale.
24
1. Demographic Profile
These questions were used in order to establish the consumer demographics. They were used
to find out the respondents age, gender, qualification, profession, marital status and family
income.
1.1 Age of the Respondents: Age was included to find out the significant relationship
between the various factors that influences the various age groups. The different age group
was set up and the respondents were asked to choose from these groups.
Table 1
Age of the Respondents
Age Group Percent15years -19 years 30.820 years -29 years 48.030 years -39 years 16.440 years and Above 4.8Total 100
Source: Compiled From Primary Data.
From the above Table 1, it is observed that 48 per cent of the respondents are from the age
group of 20-29. The age group 15-19 reflects 30.8 per cent of the total respondents. Overall
78.8 per cent of the respondents are in the age group of 15-29.
1.2 Gender of the Respondents: Gender was included in the survey in order to find out if
there is a difference between men and women concerning the beliefs towards the factors.
Table 2
Gender of the Respondents
Gender PercentMale 56.4Female 43.6Total 100Source: Compiled From Primary Data.
Table 2 shows the distribution of the male and female respondents. The distribution of
respondents shows a majority of male respondents (56.4 per cent) as compared to the female
respondents (43.6 per cent)
25
1.3 Qualification of the Respondents: The following table 1 shows the qualification of the
respondents.
Table 3
Qualification of the Respondents
Sr. No. Qualification Frequency Percentage1 Undergraduate 93 37.22 Graduate 104 41.63 Post Graduate 44 17.64 Others 9 3.6
Total 250 100Source: Compiled From Primary Data.
It is observed that 41.6 per cent of the respondents are graduates. Further 37.2 per cent of the
respondents are undergraduates. There are 17.6 per cent of the respondents who have done
their post-graduation in their respective streams. In terms of educational qualification,
graduate respondents dominate the sample.
1.4 Marital Status of the Respondents: In this question the respondents were asked about
their marital status in order to understand how the decision of online purchases are influenced
or taken.
Table 4
Marital Status of the Respondents
Sr. No. Marital Status Frequency Percentage1 Single 195 782 Married 52 20.83 Divorced 3 1.2
Total 250 100Source: Compiled From Primary Data.
From the above frequency Table 4, it is observed that 78 per cent of the respondents are
single. 20.8 per cent are married and 1.2 per cent of the cases are of divorced.
1.5 Products Purchased Online: In order to understand the types of items bought mostly
online by the respondents they were asked to select the items from the various options given.
The options included books, electronic products, apparels, music/videos, soft wares, food
items and others. They were allowed to choose more than one items for this response.
26
Table 5
Items Purchased Online
Items Percentage
Books 24.8Electronic Products 70.8Apparels 39.2Music/Videos 3.6Softwares 10.4Food Items 14.8Others 40.8
Source: Compiled From Primary Data. (Multiple responses were allowed)
From the above data it is observed that 70.8 per cent of the responses have purchased
electronic items online. Nearly about 40.8 per cent of the respondents have purchased other
items from online shops. Respondents (39.2 per cent) have replied that they also purchase
apparels online. It is however observed that 14.8 per cent respondents also prefer buying food
items online.
2. Factors Affecting Consumer’s Perception towards Online Purchase: There are various
factors that affect the consumer’s perception while making online purchase. However, the
researcher has considered the following factors for the study purpose in the present light of
literature review. They were asked to give the ratings as Very Important, Important,
Moderately Important, Slightly Important and Not Important on a Five Point Likert Scale.
For the purpose of data analysis and interpretations very important and important responses
are clubbed together and considered as important.
2.1 Convenience/ Time Saving: Online shopping has grown in popularity over the years. It
is mainly because people find it convenient and easy to shop from their comfort of their home
or office. Shopping online is considered to be time saving activity. It is accessible 24x7 from
anywhere and at any time. The customers can also browse for products by category on the
websites.
27
Table 6
Convenience / Time Saving
Particulars PercentVery Important 32.4Important 35.2Moderately Important 18.8Slightly Important 9.2Not Important 4.4Total 100
Source: Compiled From Primary Data.
It is observed from the data that the respondents have positively agreed that making an online
purchase is convenient as well as time saving for them. About 67.6 per cent of the total
respondents have replied convenience and time saving as important while doing online
shopping.
2.2 Best Deals: Online shopping has revolutionized the business world by making everything
available by the simple click of the mouse button. Best deals in online shopping include
grand online sale festival, prices off, premiums, combo offers. These deals tend to attract
consumers for online shopping.
Table 7
Best Deals
Particulars PercentVery Important 40.8Important 36.8Moderately Important 12.4Slightly Important 5.6Not Important 4.4Total 100Source: Compiled From Primary Data.
From the above Table 7 it is observed that 77.6 per cent of the respondents have replied that
best deal is an important factor which they consider while shopping online.
2.3 Product Comparison Available: Consumers while making an online purchase compare
the prices, products, services offered, discount offered etc. of the products and services which
they intend to buy.
28
Table 8
Product Comparison Available
Particulars PercentVery Important 38.4Important 37.6Moderately Important 17.2Slightly Important 3.6Not Important 3.2Total 100Source: Compiled From Primary Data.
Majority of the respondents (76 per cent) feels that product comparison is an important factor
for consideration while doing online shopping.
2.4 Product Review: Product reviews are on shopping sites which gives customers an
opportunity to rate and comment on the products they have purchased. Other consumers read
these reviews while making a purchase decision. Often ratings are also given by the existing
online customers which helps the other customers. Review of the products also gives
information about the overall experience of the consumers while making the online
purchases.
Table 9
Product Review Available
Particulars PercentVery Important 42.8Important 38.0Moderately Important 12.4Slightly Important 4.8Not Important 2.0Total 100
Source: Compiled From Primary Data.
It is observed from the data that 80.8 per cent of the respondents consider this as very
important factor in online shopping. Thus, it can be concluded that product review plays a
very crucial role in online purchase decision. It is an influencing factor in online shopping.
2.5 Assurance of On Time Delivery: In order to understand whether timely delivery of the
product in online shopping is important for the respondent, the question was asked to them.
29
Table 10
Assurance of On-Time Delivery
Particulars PercentVery Important 46.4Important 36.4Moderately Important 10.8Slightly Important 4.8Not Important 1.6Total 100Source: Compiled From Primary Data.
From the above data it is observed that 46.4 per cent customers value this factor as very
important and 36.4 per cent as important factor while making online purchase.
2.6 Easy Return Policies: Return policies help the customers to return or exchange
unwanted or defective good purchased by them. Return policies are included in customer
services by the retailers. The respondents were asked a question whether fair and easy return
policies are important factor in online buying.
Table 11
Easy Return Policies
Particulars PercentVery Important 61.2Important 24.4Moderately Important 8.4Slightly Important 4.0Not Important 2.0Total 100
Source: Compiled From Primary Data.
The result showed that 85.6 per cent of the respondents feel that it is important factor. This
shows that fair return policies of the online retailers affect the customer’s motivation for
online purchase.
2.7 Mega Sales / Discounts Available Online: In order to attract consumers online
marketing companies’ offers flashy discounts and also roll out with their annual mega sale
offers. Online companies come out with mega sales during important holidays like The Great
Indian Sale of Amazon or Big Shopping Day Sale of Flipkart etc. During the time of mega
30
sales there are better deals and combo offers available online. Such deals attract customers to
make online purchases.
Table 12
Mega Sales / Discounts Available Online
Decision PercentYes 85.6No 14.4Total 100
Source: Compiled From Primary Data.
About 85.6 per cent of the total respondents have agreed that mega sales / discounts influence
their online buying behaviour.
2.8 Safety of Payment: It is observed that in online shopping customers are more concern
about transaction security. From the point of view of the customers, risk perception of online
shopping majorly concerns transaction security which includes the privacy and security of
customer’s personal and financial information.
Table 13
Safety of Payment
Particulars PercentVery Important 27.2Important 46.0Moderately Important 19.2Slightly Important 7.2Not Important 0.4Total 100
Source: Compiled From Primary Data.
From the above data it is observed that 73.2 per cent of the respondents have agreed that
safety of payment is a crucial factor for making online purchase.
2.9 Refund Policy: In online shopping customers look for hassle free refund policy.
Therefore this question was included in the study in order to understand whether refund
policy has an impact on online purchase decision.
31
Table 14
Refund Policy
Particulars PercentVery Important 34.4Important 42.4Moderately Important 15.2Slightly Important 6.8Not Important 1.2Total 100Source: Compiled From Primary Data.
The result in Table No. 14 indicates that 76.8 per cent of the respondents agree that refund
policy is a risky factor and need to be given due consideration for them while shopping
online.
2.10 Warranty and Claims: Customers are aware of warranty issues therefore they would
like to act more cautiously while making an online purchase. The collected data from the
respondents indicates that respondents mostly look for better warranties and claims while
purchasing the product online.
Table 15
Warranty/Claims
Particulars PercentVery Important 29.6Important 44.8Moderately Important 15.6Slightly Important 9.2Not Important 0.8Total 100
Source: Compiled From Primary Data.
The above Table No. 15 indicates that out of total number respondents, 74.4 per cent are
highly concerned about the warranties given by the online stores and feels it important factor
influencing online purchase decision.
2.11 Delivery of Goods on Time: It was asked to the respondents whether the goods were
delivered in stipulated time mentioned in the online store. This question was asked to the
respondents in order to understand how important is on time delivery of goods for the
customers and whether it is a major factor influencing customers online purchase decision.
32
Table 16
Delivery of Goods On-Time
Particulars PercentVery Important 20.8Important 56Moderately Important 19.2Slightly Important 3.6Not Important 0.4Total 100
Source: Compiled From Primary Data.
Majority of the respondents (76.8 per cent) feel that delivery of goods on time after making
an online purchase is important. And also one of the crucial factors affecting customer’s
perception while making an online purchase.
Findings of the Study
Online customers consider various factors while making online purchase. All the factors are
indicating influence in online shopping however product review available on online stores,
assurance of on time delivery and easy return policies are major influencing factors in online
shopping. It influences the purchase decision of the online customers.
7.3 Conclusions
Online Shopping is more accessible than it has ever been in the digital era with the
introduction of smartphone sand tablets. One of the key and significant factors in online
shopping is customer satisfaction. Understanding customer’s need for online selling has
become challenge for marketers. Specially understanding the consumer’s attitudes towards
online shopping, making improvement in the factors that influence consumers to shop online
and working on factors that affect consumers to shop online will help marketers to gain the
competitive edge over others. One of the key and significant factors in online shopping is
customer satisfaction. Perception towards online shopping is getting better. The present
research study has focused on factors influencing consumer’s perception towards online
purchase. All the factors are influential factors in online shopping; Delivery of goods on time,
product review available in online shops, assurance of on time delivery, easy return policies
are major influencing factors in online shopping. Demographic profiles of the online
consumers; gender, age, education and marital status have significant relationship with online
33
shopping. The overall results prove that the respondents have perceived online shopping in a
positive manner.
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Marketing Strategies and Consumer Behaviour of Patanjali in the Fast
Moving Consumer Goods and Ayurveda SegmentsProf. Savina Shenoy
Abstract
Patanjali has been a brand that has made its way through in the market in a very interesting and
unique fashion. Patanjali’s launch of products in the FMCG and Ayurveda segments has lead to
major competition of long standing brands like Dabur, Colgate, Cadbury in the market.
Consumers of this millennium have become more concerned about their health and also inclined
to maintain quality of life which is reflected through the preferential consumption of those
products that protects the good state of their health as well as provide maximum satisfaction they
have become more inclined to Ayurvedic or Herbal therapy as alternative healthcare for natural
cure. This particular tendency has been responsible for phenomenal popularity of Baba
Ramdev’s Patanjali Ayurvedic products. In today's turbulent markets with changing customer
needs and growing product variety, Baba Ramdev has developed a unique blend of Ayurveda
and Vedic philosophy under the brand Patanjali to pull the market by offering value for his
customers. He has also smartly wringled through the FMCG market with his unique offerings of
products ranging from health care to food, cosmetics etc through competitive pricing and other
factors. The study aims to analyse the various trigger factors that have which have lead to the
revolutionary success of Baba Ramdev's brand Patanjali in the FMCG and Ayurveda segments.
The study aims at analysing patanjali’s marketing strategies which has lead to its huge success.
It also aims at understanding consumer behaviour which portrays perceptions, usage and attitude
towards products in both segments. A future prospect towards patanjali in the minds of the
consumers and the market can also be understood through the perception and usage factors of the
consumers.
Key Words: Competitive pricing, online shopping, target audience
Introduction
Patanjali’s entry into the market started in 2006 when Acharya Balkrishna partnered with Baba
Ramdev and entered into the Ayurveda space with its brand Patanjali Ayurveda Limited (PAL)
∗ Assistant Professor (BMS) - St. Andrews College of Arts, Science & Commerce, Mumbai.
35
with the objective of establishing science of Ayurveda and coordinating with the latest
technology and ancient wisdom. In April 2012 Patanjali Ayurved Limited had announced its
entry into the retail sector by launching 100 products to be expanded up to 800 including body
care, healthcare, home care, digestives, cosmetics, toiletries and other products. The growing
demand for herbal therapy to lead a healthy life prompted Yoga-Guru Ramdev to map the
portfolio of true needs of modern Indian which goes beyond food, clothing and shelter but strives
for a healthy life style.
From March 2012, Patanjali brand marked its entry into the herbal retail market and FMCG with
‘Swadeshi’ flavour of products ranging from body care, healthcare, home care, digestive,
cosmetics, toiletries etc. From then onwards Dabur, Sri Baidyanalh, Vicco Laboratories, Charak
Pharmaceuticals, The Himalaya Drug Company, Zandu Pharmaceutical, The Emami Group,
HUL, P&G are facing intimidation from a home - grown and an absolutely `Swadeshi
competitor, Patanjali Ayurved Limited. Thus Home-grown Patanjali Ayurved Ltd. (PAL) is
growing rapidly, giving the much-older established players in the fast moving consumer goods
(FMCG) segment and Ayurveda segment a run for their money.
Patanjali’s market entry has been a challenging one to other FMCG and Ayurveda companies
eating up major market share of long standing brands like Cadbury,Dabur,Colgate Palmolive etc
through its effective marketing mix offerings.Thus the study aims to analyse the marketing
strategies of Patanjali as well as the consumer behaviour towards the brand that is making the
brand a major threat to other competitors in the FMCG and Ayurveda segments.
Objectives of the Research
• To understand the marketing strategies of Patanjali in the FMCG and Ayurveda sector.
• To understand consumer behaviour towards Patanjali’s FMCG and Ayurvedic Products.
• To understand Patanjali’s future market prospects in the FMCG and Ayurveda Segments.
Methods of Survey
With the help of primary as well as secondary data, information is collected.
1. Primary Data- is collected through Questionnaire method, observation and interviews.
Sampling method-
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2. Secondary Data- is collected through the published literatures like Educational Institute’s
journals, Newspapers, Magazines and Journals, Various reference books, and Websites.
Market Entry Strategies to Overcome Challenges
Although the company was incorporated in 2006, the background work of identifying
promotion strategies, products, pricing started way earlier.
1. Patanjali has introduced FMCG products to diversify in the market. The Indian FMCG
market has a wide range of customers and with competitors all the categories although they
have similar products with similar prices. Patanjali’s products sets itself apart by claiming and
proving that all its products in the FMCG space ranging from jam, salt, chyawanprash,
shampoo, detergents etc. are made of natural ingredients and don’t have any side effects at
all. It claims it uses herbo-minerals to manufacture its products and thus sets itself apart.
2. Patanjali Ayurveda medicines claims it has had made achievements in treating thousands
suffering from diseases like osteoarthritis, rheumatoid arthritis, osteoporosis , age related
mental stress etc. Baba Ramdev has set apart his ayurveda category by producing medicines to
cure unbeatable diseases like cancer etc. The products are sold to the customers specially after
receiving advice and counseling from the doctors present in the chikitsalayas. All these factors
set Patanjali’s ayurveda product segment apart.
3. Patanjali's objective is to make products available to the consumer at the most reasonable
price, and therefore most of its products come at a substantial discount to existing alternatives.
However a mix of skimming and penetration is used. Examples of low price products and
competition; Chyawanprash, one of Dabur’s flagship product is more expensive than that of
Patanjali’s. Similarly, Honey is priced at 43% lower than Dabur. The Company has uprooted
Maggi from its ‘numerouno’ status in the snacks segment, with Patanjali’s Atta noodles being
offered at 36% discount to the Maggi’s Atta version of Maggi noodles, thus competing with
Maggi in a major way.
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Source : Edelwise Patanjali Report
4. Patanjali Ayurveda’s products are available on 20-40% cheaper prices in
comparisons of MNC products. Higher pricing of MNC’S are due to their expanses for
hiring Brand ambassadors, heavy market promotions expanses etc. In case of Patanjali
Ayurveda, Baba Ramdev himself played a well-defined role of Brand Ambassador for
Umbrella Brands. Baba Ramdev introduced the value for money concept for his
ayurveda products which lead to its huge success. The revenue for 2014-15 of Patanjali
Ayurveda is bigger than Jyothi Laboratories, the maker of Ujaala and Emami.
Patanjali’s ayurvedic products (healthcare products for blood pressure, skin diseases,
joint pain, etc) - clocked a turnover of Rs 2,030 crore in FY15 with an EBITDA
(earnings before interest, taxation, depreciation and amortization) of around 20%.
5. Patanjali products is been sold at every Yoga camp that is held by Baba Ramdev not
only making his products accessible to the right target audience but also making them
aware about his various products and inducing purchase through his Yoga camps.
6. An exclusive store network proved a winning strategy. It currently has nearly
10,000 consumer touch points as “Chikitsalayas” (Dispensaries) and “Aarogyakendras”
(Health centres), these numbers are ever increasing and are operated by third party
vendors as exclusive Patanjali stores.
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Other Strategies Used
1. Partnering with Future Group (Big Bazaar) and other multi retail malls:
In October, 2015, Patanjali partnered with the Future Group, to offer the whole range of
products through Big Bazaar outlets across the country. Thus Patanjali used multiple
distribution channels, from company-owned stores that exclusively sell the brand, to
normal stores, to modern retail outlets like Big Bazaar, Reliance Retail, HyperCity etc.
2. Patanjali Online Shopping Website “(http://patanjaliayurved.net/)”
Patanjali sells its products through its website Patanjali.net and offers products ranging
from groceries, health and nutrition supplements, toiletries etc. It provides for free
shipping facilities with an easy payment mode with credit card,debit card,net banking
and cash on delivery options. Such distribution facility makes it easy for the consumers
to purchase product.
Patanjali’s products are also available on other online shopping sites like;
(bigbasket.com, askmegrocery.com, amazon.in, shopclues.com, flipkart.com,
snapdeal.com, swamibabaramdevmedicines.com, ebay.com etc.)
3. Patanjali Mobile App
Patanjali has also launched a mobile application which allows customers to locate
nearby outlets that are selling Patanjali products and also facilitate online ordering of
Patanjali’s Ayurveda and fast moving consumer goods.
Being seized of the fact that that there is high demand for its products, Patanjali is now
offering separate distributorship for food and cosmetics compared to the earlier system
when one distributor managed both. Also, the company is giving distributorship at the
district, tehsil and mandi levels, which shows its confidence on its the growth trajectory
and demand for its products.
4. Export to Foreign Countries
A New York Times article called him “An Indian, who built Yoga Empire, a product
and symbol of the New India.” Baba Ramdev is not only bringing the age old Indian art
of meditation and exercise but also a wide range of Patanjali’s Products in the U.S
,Canada ,U.K and other international markets.
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Promotional Strategies
1. Word of Mouth Strategy on Market Entry
Patanjali remains perhaps the only company in the FMCG space that did not rely on
advertising for its scalability during its nascent years. Word of mouth publicity and
powerful endorsements by Baba Ramdev via his yoga camps built scale.
2. Baba Ramdev’s Controversial Popularity as a means of Market Entry
According to an article in forbes October 12, 2015 the Patanjali saga began with a
humble setup linked to India’s best export to the world: Yoga. Back in 2003, on a
channel called “Aastha TV” Baba Ramdev gave free yoga lessons and was also
involved in cases of black money, surrounded by controversies, brusque allegations of
tax evasions and labour law violations. His close associate Acharya Balkrishna
harboured a dream of amalgamating the yoga guru’s popularity and his knowledge of
ancient Ayurveda with best of breed technology. The duo then began manufacturing
medicinal products and, slowly but steadily, ventured into segments like dental care,
cosmetics, and food.
3. Partnering With Advertising Campaigns for Expansion
The company had low advertising spending initially. With hostile market conditions
and mushrooming competition, the company then started relying on a blitzkrieg for
advertising campaigns directed at end-consumers. Things are changing though.
Patanjali has hired two top advertising agencies McCann and Mudra to prepare the
business for the next phase of growth.
4. Print Advertisements:
Patanjali has increased its advertisements in the print media in various well know
newspapers. Including regional and local newspaper. Patanjali has adopted the unique
information‐ based advertising for its print media. For instance, the company highlights
the positives of cow’s ghee, which automatically helps sale of Patanjali Ghee. In the
recent past, the company’s print advertising has seen a marked increase.
5. Television Advertisements:
Patanjali spent less on the making of its television advertisements and stuck to a very
simple format. However as the business has seen success more focus is put on
television advertisements .Reliance Securities says that Patanjali has stepped up its
advertising and promotional spend and was one of the top three brands advertised on
television in last week of November 2015 as per Broadcast Audience Research Council
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(BARC). The brand's marketing related update that it is focusing on advertising and has
kept aside Rs. 300 crore for advertising and promotion.
6. Social Media Sites Advertisements (Facebook, Twitter etc.)
Patanjali’s launch was a new hot topic on social media websites, with advertisements
,news articles flashing on websites like facebook the brand gained its awareness. Baba
Ramdev’s yoga page on face book kept flashing updates on Patanjali’s products being
launched and its upcoming promotion updates.
Brand “Patanjali” generated around 15000 conversations on Twitter in the period
between August 2015-January 2016, according to data compiled by social media
analytics firm Blue Ocean Market Intelligence.
7. Patanjali’s Promotion Through Supporting ” MAKE IN INDIA” Campaign
Baba Ramdev supported Prime Minister Narendra Modi's” Make in India”
campaign .Baba Ramdev claims that Patanjali is a pure brand that supports the Make in
India Initiative and claims that the brand would result in a great economic boost for the
country. Through his support in a mass campaign held by the prime minister he
promoted Patanjali as the perfect Make in India product and created a top of mind
awareness in the minds of the consumers.
8. Patanjali’s Promotion through Political Support:
In an interview with “ET NOW” in a show called Brand Equity, Baba Ramdev changed
his support towards Prime Minister Narendra Modi and claimed he had political
support to promote his brand mostly through the Congress Party, who provided him
with the motivation and resources to promote Patanjali to all states in India . Baba
Ramdev continues to receive huge funding and political backup to promote his products
not only in India but in international countries too which is a major advantage for his
brand to be successful.
Patanjali’s Market Disruption with Competitors
1. Patanjali and HUL (Ayurved and Toiletries):
According to an article in the Economic Times dated 22nd November 2015, HUL is
hitting back at the fastest growing FMCG upstart in India, Patanjali Ayurved with the
launch or rather re-launch of Ayush a set of eight ayurvedic products.. Patanjali is also
a threat to HUL in the toiletries and personal care products.
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2. Patanjali and Nestle (Maggi Noodles):
According to an article in the economic times dated Jan 19 2016, while nestle was
under the scanner for product quality Patanjali took advantage to launch their own
noodles thus giving tough competition to Maggi. They also adopted a low pricing
strategy compared to Nestles Atta noodles.
3. Patanjali and Sri Sri Ayurveda (Ayurvda Brand):
According to an article in livemint 20th Feb 2016 Patanjali is also posing to be strong
competition to the Art of Living pioneer Sri Sri Ravishankar’s FMCG Company Sri Sri
Ayurveda. Both are in a constant battle to develop and innovate new products.
4. Patanjali and Colgate (Toothpaste):
IIFL states that Patanjali’s highest impact will be on Colgate, since it has gained
substantial traction in oral care. Patanjali’s” dant kanti” is taking up Colgate’s market
share. Baba Ramdev, has garnered a 4.5% market share in the toothpaste segment, a
report by Kotak Institutional Equities.
5. Patanjali with Mondelez and Glaxo Smith (Bournvita and Horlicks):
According to the Hindu 16th Jan, 2016 Patanjali’s Power Vita is a great concern for
Cadbury Bournvita and Glaxo Smith’s Horlicks as the market of Patanjali is growing at
a rapid pace in the health and nutritional drinks segment.
6. Patanjali and Dabur (Honey, Chywanprash) :
Patanjali will have high market shares in categories such as honey (35%), ayurvedic
medicine (35%) posing as a severe threat to Dabur as per and article in “The Hindu”
dated 17th Jan 2016,
7. Patanjali and ITC (Yippee Noodles):
Patanjali is also taking up market share of ITC’s Yippee Noodles after posing a threat
for magi noodles. ITC is on a constant lookout to keep its product in the minds of the
consumers as per The Economic Times dated 14th June 2015.
8. Patanjali Britannia and Parle (Biscuits):
Patanjali is also a major threat to Britannia and Parle in the Biscuits segments.
Patanjali’s nutty biscuits and Marie biscuits segment is a great threat to Britannia. and
Parle ,thus taking up major space in the Britannia and Parle FMCG segment as per The
Economic Times dated 28th December 2015.
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Data Analysis and Interpretation
Table 1
Respondents Awareness towards Brand Patanjali
Sr. No. Options Percentage
1 Advertisements (Newspaper, T.V) 24
2 Word of mouth 23
3 Follower/Devotee of Baba Ramdev and Acharya
Bal Krishna
15
4 Saw it in the store/supermarket 11
5 Social Media Sites 27
Total 100
Source: Primary Data
Table 1 shows that 27 per cent of the respondents came to know about brand Patanjali
trough social websites while 24 per cent reported that they had seen the
advertisement.in various newspapers.
Table 2
Product Category Purchased by the Respondents
Sr. No Particulars Number of
Respondents
Percentage
1 FMCG Category 40 40
2 Ayurveda Category 34 34
3 Both Categories 26 26
Total 100 100
Source: Primary Data
The above Table reveals that 40 per cent of the respondents have purchased products
from FMCG category while 34 per cent of the respondents have purchased ayurvedic
products.
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Table 3
Respondents Preference towards Patanjali Products
Sr. No. FMCG Product Category Percentage
1 Patanjali Atta Noodles 19
2 Patanjali Desi Cow Ghee 12
3 Patanjali Pure Honey 9
4 Patanjali Mixed Fruit Jam 8
5 Patanjali Special Chyawanprash 7
6 Patanjali Marie biscuits 5
7 Aloevera Juice 4
Source: Primary Data
Table 3 shows that 19 per cent of the respondents prefer ‘Patanjali Atta Noodles’ while
12 per cent of them prefer ‘Patanjali Desi Cow Ghee’. 9 per cent of the respondents
prefer to purchase ‘Patanjali Honey’
Table 4
Respondents Preference towards Ayurveda Products
Sr. No. Ayurveda Product Category Percentage
1. Dant Kanti 12
2. Aloe Vera Gel 9
3. Neem Tulsi Face Wash 6
4. Divya Dant Manjan 5
5. Multani Mitti Body Cleanser 4
Total 100
Source: Primary Data
Table 4 indicates that 12 per cent of the respondents prefer to use Dant Kanti while 9
per cent of them prefer to use Aloe Vera Gel.
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Table 5
Reasons for Purchase of Patanjali Products
Sr. No. Reasons Percentage
1 Follower of Baba Ramdev and Acharya Balkrishna 15
2 Quality 18
3 Quantity 8
4 Price as a factor 20
5 Belief in Swadeshi Goods 3
6 Curiosity to try the product 10
7 Recommendation by Others 14
8 Advertisements 12
Total 100
Source: Primary Data
Table 5 suggests that 20 per cent of the respondents purchased Patanjali products on
account of reasonable price while 18 per cent of them purchased on account of good
quality. It is interesting to note that 15 per cent reported that they were the followers of
Baba Ramdev and hence purchased the products.
Table 6
Purchase Pattern of the Respondents
Source: Primary Data
Table 6 shows that 42 per cent of the respondents have been buying the
products for more than six months while 33 per cent of the respondents have
been buying for more than a year.
Sr. No. Options Percentage
1 Less than 3 months 25
2 6 months-1 year 42
3 More than a year 33
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Table 7
Satisfaction Level of the Respondents
Sr. No. Particulars Percentage
1 Satisfied 65
2 Neutral 24
3 Dissatisfied 11
Source: Primary Data
Table 7 specifies that 65 per cent of the respondents were satisfied while only 11 per cent of
the respondents were not satisfied with the products.
Table 8
Respondents Preference to Continue Using the Product
Sr. No. Particulars Per cent
1 Definitely Use 89
2 Definitely not Use 11
Source: Primary Data
The above Table reveals that 89 per cent of the respondents were keen on
continuing to use the products whereas 11 per cent reported that they were not
satisfied with the products and hence they wish to discontinue to use the
products.
Table 9
Respondent’s Reaction towards Recommendation of Patanjali Products
to Friends
Sr. No. Particulars Per cent
1 Definitely Recommend 80
2 Probably Recommend 9
3 Definitely Not Recommend 11
Source: Primary Data
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Table 9 shows that 80 per cent of the respondents would definitely recommend Patanjali
products to their friends and other family members while 11 per cent of the respondents
reported that they would definitely not recommend the products to their friends.
Table 10
Respondents Viewpoints towards Patanjali Products
Percentage of Respondents
Sr. No. Statement Agree Disagree Neutral
Opinion
1 Patanjali stands by its word of
providing pure and safe products
89 0 11
2 Patanjali provides quality goods at
low prices
92 0 8
3 Products of Patanjali are easily
accessible and available
51 42 7
4 Do you see Patanjali as a market
leader in the Ayurveda and FMCG
Sectors in the future, attracting the
world’s attention.
97 0 3
Source: Primary Data
Analysis of table 10 indicates that 89 per cent of the respondents agreed that Patanjali
stands by its word of providing pure and safe products, while 92 per cent reported that
the company provides quality goods at low price. About 51 per cent agreed products of
Patanjali are easily available while 97 per cent of the respondents agreed that in future
Patanjali can be seen as a market leader in the Ayurveda and FMCG sectors.
Conclusion
It can be found that consumers have mostly selected the brand Patanjali because of its
offering of quality along with low prices. It can also be inferred that Patanjali’s
increased advertising is bringing in new consumers to taste and try the products just out
of mere curiosity. Word of mouth strategy has also worked out excellently for the brand
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to become a huge success in both segments. Patanjali’s product awareness is also
increasing day by day, as consumers are getting aware and trying different products
there is a steady shift seen in brand loyalty of competing brands. Majority of people
would recommend and continue using this brand in the future. The consumers are also
getting the products now through online means apart from direct distribution.
Patanjali’s vision of being a Top FMCG and Ayurveda company is forecasted as a
dream come true as consumers believe in the potentials and positives of the brand,
however the restart of the swadeshi movement is not well accepted by the consumers.
Patanjali has been successful in cracking maximum market share as it can be seen that
consumers are steadily moving towards Patanjali. Thus Patanjali is seen fulfilling the
consumer’s needs and wants along with the strong implementation of the brands
effective marketing mix strategies, attracting and inducing positive consumer behaviour
towards Patanjali’s products in both the FMCG and Ayurveda segments.
Recommendations and Suggestions
Patanjali has managed to stir a positive wave across both FMCG and Ayurveda
segments however the brand has some deficits in certain areas. The brand should focus
a little less on the swadeshi tag it has attached to its products as most consumers do not
consider it very favourable and believe that it would not make a major difference to
them. They would also like Patanjali to compete with international standards according
to livemint.com.
Patanjali should try to produce better packaging for its products as the packaging done
for its products is of low quality material thus giving the product a very cheap and low
quality feel which consumers dislike by all means and have complained on a consumer
complaint website.
Some of Patanjali’s products were found with worms and insects, and was brought
under the scanner by a consumer in Haryana according to Indiatimes.com December
6th 2015 claiming that Patanjali’s storage and packing facility needs to be changed and
more improved.
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Patanjali’s owners should be less involved and protect themselves from controversies
and any kind of political turmoil and should try to maintain a positive image of
themselves as by the end of the day the brand ambassador is linked with the brand’s
success.
Bibliography:
Khanna, R. (n.d.). Study on Patanjali. Global Journal of Management and Business Research
-E Marketing .
Mishra, R. (n.d.). Research and Reviews on Ayurveda brands. Scientific ,Technicial ,Medical
Journal .
Rana, P. (2015). Yoga Guru Baba Ramdev's Traditioal Remedies Takes on Big Brands in
India. Wall street Journal .
Rani, S. (n.d.). Trends of Patanjali Products. World Wide Journal .
Research, E. M. (2015). Patanjali Ayurved -Waiting in the wings.
Sharma, S. K. (n.d.). Patanjali Yogpeeth in Haridwar. Journal of Ayurveda and Integrative
Medicine .
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Compensation Management in Unorganised Sector- A Study of Stone
Crushing Industries in Mandya District
Dr.Nagaraju C.
Abstract
The present study intends to find out the compensation problem among the employees in the
unorganised sector a study of stone crushing industries in Mandya District. Primary data were
collected by conducting direct interview using questionnaire through likert scale. All the
respondents were asked the same questions in the same fashion and they were informed the
purpose of study. The tool of data collection to be used in this study is through structured
questionnaire method; the necessary data is to be collected from 100 samples to be selected
randomly in Mandya District. Similarly the necessary data is also to be collected from 13
employers of stone crushing industries. The data will be selected as samples and the data sol
collected will be analysed using the appropriate statistical tools. The secondary data can be
collected from the journals, concerned websites and district industries manual. For this study
the samples were drawn using random sample method. The data collected through
questionnaire have been analysed and tabulated.
Introduction
Entrepreneurship is that capacity in an individual to innovate. It involves a whole range of
aptitudes like capacity to bear risks, to forecast prospects of enterprise, confidence and
competence in meeting unforeseen and adverse situation. An entrepreneur promotes a new
venture, raises the where withal for it, assembles various factors of production and sets the
business going. Hence economic development depends much upon entrepreneurship are
directly related for it is the entrepreneur who establish industrial units. For any country
industrialization should be a natural process. In India both the state and the centralisation is
on a few core areas in large scale sector. The medium and small scale sectors have not grown
to the level expected due to the absence of dedicated entrepreneurs. Hence the government
has assumed the responsibility of identification and promotion of entrepreneurs.
∗ Associate Professor of Commerce, Shanthi College, Malavalli-571430.
51
Need For Development of Entrepreneurship in India
• Accelerating the rate of economic development.
• Achieving the objective of balanced regional development by providing broad base to the
industrial development.
• Solving the problem of unemployment to some extent.
• Directing available resources towards non-traditional areas of investment.
The unorganized sector plays a pivotal role in Indian economy. More than 90% of the
workforce and at about 50% of the national product are accounted for by the informal
economy, a high rate of socially and economically underprivileged sections of the society are
concentrated in the informal economic activities. The high level of growth of the Indian
economy during the past 20 years is accompanied by increasing informalisation. There are
symptoms of growing inter linkages between informal and formal economic activities. There
has been new dynamism of the informal economy in terms of output, employment and
earnings. Faster and inclusive growth needs special attention to informal economy.
Sustaining high levels of growth are also intertwined with improving domestic demand of
those engaged in informal economy and addressing the needs of the sector in terms of credit,
skills, technology, marketing and infrastructure.
Contribution of the Unorganised Sector
Dominance of informal employment has been one of the central features of labour market
scenario in India. Though the unorganised sector employs the majority of the workforce, its
economic contribution is often neglected. Firstly, the output and low wages of informal
workers assist the growth of industries in many countries. Secondly, the output of informal
enterprise also contributes to economic growth.
The majority of the Sengupta Committee reports highlights that about 90% to 93% of work
force would be employed in the unorganised sector by 2017. This clearly indicates that the
contribution of the unorganised workers to the Indian economy is more significance. Hence
there is an urgent need to study the problems of unorganised workers.
52
Review of Literature
The researcher has carried out review of literature relating to the compensation management
at micro and macro levels. A brief overview of the existing literature is as follows:
1. Keith Heart 1971 highlighted that landscape of the unorganized sector becomes
synonymous with the landscape of unregulated, poorly skilled and low paid workers.
2. NCEUS – National Commission for Enterprise the Unorganised Sector (2007)
explains that the country is currently a state of informalisation of the formal sector, where the
entire increase in the employment in the organised sector has been informal in nature from
1999-2005.
3. DB Squared, LIC, 2829 MCKEE circle – suite 119, Fayetteville, AR72703, USA 2001
explains that committed and ambitious employee acquisition and retention begins with
compensation management. They have also opined that best in class compensation
management requires comprehensive and systematic understanding of external factors like
employee’s data, job analysis and descriptions.
4. John Bats Clark and Pillips Henry Wicksted highlighted that wages are based upon an
entrepreneur’s estimate of the value that will probably be produced by the marginal workers.
Consequently workers are paid what they are economically worth. The result of this is that
the employer has not paid a large share of profit to the non- marginal workers.
5. John Davidson argued that wages are determined by the relative bargaining powers of
workers, and of employers when a trade union is involved. Basic wages, fringe benefits, job
differentials and individual differences tend to be determined by the relative strength of the
organisation and the trade union.
6. Marsh and Simon et al. have presented their views of wages and salary on the basis of
the employee’s acceptance of wage level and the internal wage structure etc.
Need For the Study
Government of India identified small scale sector as a priority sector and has announcing
policies of its sustainable growth. For any development a systematic and realistic planning is
essential for micro-industry, especially the development of unorganised sector. Indian
economy is characterized by the existence of a vast majority of unorganised labour
employment. The ministry of labour government of India has categorized the unorganised
sector under four groups:-
a. In terms of occupation
53
b. Nature of employment
c. Distressed categories
d. In terms of service categories
Scope of the Study
Unorganised sector is a labour intensive industry. Informal labour can be in self-employment,
casual wage employment and regular wage employment just as, it can be in urban as well as
in rural areas.
Compensation is a reward for the worker to work better and to join hands in the production
process to strengthen the productivity and in term oh help to earn more profit. The alarming
expansion of informal sector in recent times has adversely affected employment and income
security program. In our global cities like Bengaluru, Kolkata, Chennai, Mumbai etc. which
are being showcased as the new faces of an affluent and vibrant India. There are lakhs of
people who rely on manual labour for their own livelihood.
Globalization and resultant re-organisation of production change led to a situation where
production system are becoming increasingly a typical and nonstandard involving flexible
labour force engaged in temporary and part time employment which is seen largely as a
measure adopted by the employers to reduce labour cost in terms of job security and social
protection as they are derived any of the social protection measures stipulated in the existing
labour legislation.
Hence there is a wide scope for the study of compensation management in unorganised
sector. The present study restricted to study the compensation management of stone crushing
industries in Mandya district. There are 12 registered stone crushing industries running at
present, but there are a number of unauthorized stone crushing industries are found to be
functioning.
Objectives of the Study
1. To discover what the workers need most.
2. To find whether the needs are fulfilled.
3. To expose what aspect are more important.
54
4. To identify the areas that need more attention.
5. To assess the compensation management problem.
6. To suggest measures to sustain a sound wage policy.
Research Methodology
This research will have a basis of primary and secondary data. As already mentioned
employees in the unorganised sector are vulnerable. Nearly 98% of workforce is unorganised.
The researcher has taken Mandya district (7 talukas namely Mandya, Maddur, Malavalli,
Nagamangala, Srirangapatna, K.R. Pet and Pandavapura) for his study. The study was
conducted in two stages namely,
1. Obtain the relevant information through questionnaire to employers managers; this was
mainly to provide an insight about employer perception in compensation management.
2. Collecting information through questionnaire to workers. The researcher has covered all
types of workers and he has adopted convenience sampling method to conduct survey of the
workers.
The following table highlight the estimated labour force in the unorganised sector.
Table 1
Estimated Labour Force
YearsGDP
growth rate%
Employment (million) percentage
Formal Informal Total Formal Informal
2004-05 Actual 32.79 368.35 401.13 8.17 91.832006-07 Actual 34.87 393.06 426.93 7.93 92.072011-12 9 34.54 453.13 487.67 7.08 92.92
7 34.18 442.18 476.36 7.18 92.835 33.83 431.4 465.23 7.27 92.73
2016-179 33.93 521.96 555.9 6.1 93.97 33.08 490.46 490.46 6.32 93.685 32.26 461.05 461.05 6.54 93.46
Source – Arjun Sen Gupta Committee Report
The date shows us that an estimated 93.46% of the labour force (at 5% GDP) will be
employed in the informal sector by the end of the 12th five year plan 2012-17.
The issues regarding unorganised sector is largely country specific and its many
manifestations are too been varied and analyzed in the context. Some of the most burning
issues to our study are, working conditions duration and durability of work, earnings, labours
55
rights and safety conditions at work. The National Council of Applied Economic Research
(NCAER) calculated that the informal economy or the unorganised sector generates about
62.5 of GDP, 50% of gross national savings and 40% of national exports. Numerous
legislations about to regulate the conditions of work and to create social security for the
workers of the organised sectors, but very few of them extend their scope to the vastly
unregulated unorganised sector.
Table 2
Details of Stone Crushing Units in Mandya District
Survey Analysis and Interpretation
Introduction – Compensation is one of many human recourse tools that organisation use to
manage their employees. For an organisation to receive its money’s worth and motivate and
retain skilled employees, it needs to ensure that its compensation system is not an island by
itself. It is important not only for an organisation to link compensation to the overall goals
and strategies, it is important that its compensation system aligns with its human resource
strategy. Needless to mention that, though the employees are the bread winners, but they are
like an earning son in the family.
56
There are 7 (seven) Talukas in Mandya district and 12 registered stone crushing units are
operating throughout Mandya district. Since no detailed study is attempted on this vital aspect
of compensation management the researcher has gone into the details of this critical issue.
For this purpose an attempt has been made to analyze the methods of wage payment, safety
and security, this was actually addressed through a survey conducted by him based on various
issues relating to compensation.
The hypothesis has been designed based on the pilot study and these are reflected in the
questionnaire and the schedule. The survey conducted would help him to comprehend the
SWOC analysis of stone crushing units with reference to compensation management. The
response collected from the respondents have been analysed which will help unearth the
findings on the study.
Hypothesis
1st Hypothesis
Perception differences about the salary and wages in the organization:
Having collected perceptions from the three categories of respondents, it is worth examining
the significance of differences in the perceptions of three categories of employees about the
paltriness of salary and wages in the organization. The following hypothesis is postulated to
measure the differences in perceptions:
H0: Salary and wages are not paltry
H1: Salary and wages are paltry
Table 3
Descriptive Statistics
N Mean Std.Deviation
Std.Error
95% ConfidenceInterval for Mean
LowerBound
UpperBound
VAR00003 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000
VAR00004 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000
VAR00005 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.0000
57
15000-25000 60 1.1000 .54306 .07011 .9597 1.2403Total 100 1.0600 .42212 .04221 .9762 1.1438
VAR00006 10000 10 3.8000 .42164 .13333 3.4984 4.101610000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 3.9800 .14071 .01407 3.9521 4.0079
VAR00007 10000 10 3.8000 .42164 .13333 3.4984 4.101610000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 3.9800 .14071 .01407 3.9521 4.0079
VAR00008 10000 10 4.0000 .00000 .00000 4.0000 4.000010000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 4.0000 .00000 .00000 4.0000 4.0000
VAR00009 10000 10 3.0000 .00000 .00000 3.0000 3.000010000-15000 30 3.0000 .00000 .00000 3.0000 3.000015000-25000 60 3.0000 .00000 .00000 3.0000 3.0000Total 100 3.0000 .00000 .00000 3.0000 3.0000
VAR00010 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000
VAR00011 10000 10 5.0000 .00000 .00000 5.0000 5.000010000-15000 30 5.0000 .00000 .00000 5.0000 5.000015000-25000 60 5.0000 .00000 .00000 5.0000 5.0000Total 100 5.0000 .00000 .00000 5.0000 5.0000
VAR00012 10000 10 4.0000 .00000 .00000 4.0000 4.000010000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 4.0000 .00000 .00000 4.0000 4.0000
VAR00013 10000 10 3.0000 .00000 .00000 3.0000 3.000010000-15000 30 3.0000 .00000 .00000 3.0000 3.000015000-25000 60 3.0000 .00000 .00000 3.0000 3.0000Total 100 3.0000 .00000 .00000 3.0000 3.0000
VAR00014 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000
VAR00015 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000
VAR00016 10000 10 5.0000 .00000 .00000 5.0000 5.000010000-15000 30 5.0000 .00000 .00000 5.0000 5.000015000-25000 60 5.0000 .00000 .00000 5.0000 5.0000Total 100 5.0000 .00000 .00000 5.0000 5.0000
Source: Field survey
The above table displays the mean score, standard deviation and standard error and other
statistics for the perceptions held by all the three categories of respondents.
The following table highlights the ANOVA results:
58
Source: Field survey
ANOVASum ofSquares
df MeanSquare
F Sig.
VAR00003 Between Groups .000 2 .000 . .Within Groups .000 97 .000
Total .000 99VAR00004 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
VAR00005 Between Groups .240 2 .120 .669 .515Within Groups 17.400 97 .179
Total 17.640 99VAR00006 Between Groups .360 2 .180 10.913 .000
Within Groups 1.600 97 .016Total 1.960 99
VAR00007 Between Groups .360 2 .180 10.913 .000Within Groups 1.600 97 .016
Total 1.960 99VAR00008 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
VAR00009 Between Groups .000 2 .000 . .Within Groups .000 97 .000
Total .000 99
VAR00010 Between Groups .000 2 .000 . .Within Groups .000 97 .000
Total .000 99VAR00011 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
VAR00012 Between Groups .000 2 .000 . .Within Groups .000 97 .000
Total .000 99VAR00013 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
VAR00014 Between Groups .000 2 .000 . .Within Groups .000 97 .000
Total .000 99VAR00015 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
VAR00016 Between Groups .000 2 .000 . .
Within Groups .000 97 .000Total .000 99
59
From the above table it is clear that all variables have p value of less than 0.05 except one
variable titled “compensation received is equal to the value of the work performed”. The
results indicate that there is a significant difference in the perceptions held by all the three
categories of workers as the observed significance level is less than 0.05 and it is evident
from the above analysis that the salary and wages are paltry.
2nd Hypothesis
Table Showing Workers Opinion towards Safety and Welfare Aspects of Employees inthe Organization
Sl. No. Questions/Statements MeanScore
StandardDeviation
1.Employee grievance redressal machinery is exist andfunctioning in the organization
3.00 0.000
2.The existence of a sound channel through which agrievance may pass for redressal if the previous stagehas found to be inadequate/unacceptable
1.00 0.000
3. Industrial accidents result a multiplicity of factors 4.00 0.000
4.The safety policies of the organization shoulddetermine by the management
1.00 0.000
5.Management and supervisor must be made fullyaccountable for safety performance
1.00 0.000
6.All employees should be given thorough training insafe methods of work and should receive continuingeducation and guidance
1.00 0.000
7.Safety must be given equal importance considerationwith that of other factors of production
3.00 0.000
8.Safety must be included in all phases of planning,purchasing, supervision and operation
3.00 0.000
9. Labour welfare is an important aspect of factory life 1.00 0.000
10.The purpose of providing welfare amenities is it bringabout the development of the whole personality of theworker
5.00 0.000
11.Occupational diseases are the results of physicalcondition and the presence of industrial poisonous andnon-poisonous dust in the atmosphere
1.00 0.000
12. Silicosis leads to painful death 4.00 0.000
13.Adequate facilities for emergency care and injuriessustained in the course of work
4.00 0.000
14.Proper first aid and treatment for occupational injuriesand diseases are exists
4.00 0.000
15.Provision for maintenance of adequate andconfidential medical records are made
4.00 0.000
Aggregate Mean score and Standard Deviation 2.67 0.000Source: Field Survey
60
The above table highlights that the mean score varies from 1.00 to 4.00 and standard
deviation results as 0.000. The aggregate mean score and standard deviation are 2.67 and
0.000 respectively. The aggregate standard deviation being equal to zero indicates
consistency in the views expressed by the respondents.
The respondents agreed that the existence of a sound channel through which a grievance may
pass for redressal if the previous stage is found to be inadequate/unacceptable, safety policies
are determined by the management, Management and supervisors are accountable for safety
performance, all employees should be given thorough training in safe methods of work and
should receive continuing education and guidance, labour welfare is an important aspect of
factory life and occupational diseases are the results of physical condition and the presence of
industrial poisonous and non-poisonous dust in the atmosphere (Mean Score 1.00).
Respondents made no comments for overall development of workers through welfare
amenities provided by the organization (Mean score 5.00).
Inference: The safety and welfare aspects of employees in the organization is not properly
followed and which is evident from the above analysis that the respondents disagreed with
safety and welfare aspects of employees in the organization (aggregate mean score 2.67).
3rd Hypothesis
Table Showing Workers Opinion towards Working Condition and Motivation to
Employees in the Organization
Sl. No. Questions/StatementsMeanScore
StandardDeviation
1.Development of better methods of production bylabour are responsible for the increase in productivity
5.00 0.000
2. More difficult a job, the higher are the wages 3.04 0.281
3.Managerial attitude have a decisive influence on thewage structure and wage level
4.00 0.000
4.Psychological and social factors have a significantmeasure for the compensation
1.00 0.000
5.Wage should be capable of effectively motivating theemployees
3.00 0.000
6.An incentive plan must consist of both monetary andnon-monetary elements
1.00 0.000
7. Timing, accuracy and frequency of incentives are the 1.00 0.000
61
basis of successive incentive plans
8.Profit sharing scheme helps to promote industrialharmony and stabilization of workers
5.00 0.000
9.Profit sharing scheme helps to eliminate waste in theuse of materials and equipment
5.00 0.000
10.Profit sharing scheme helps to instil a sense ofpartnership among employee and employers and toincrease employees interest in the company
5.00 0.000
11.Profit sharing scheme attract desirable employees andretain them, thereby reducing the rate of turnover andabsenteeism
3.00 0.000
12.Profit sharing encourage employers thrift and ensureemployee security and demonstrate some measure ofsocial justice to employees
3.00 0.000
13.
Company offers benefits and services to increase andimprove employee morale and creates a helpful andpositive attitude on the part of workers towards theiremployers.
1.00 0.000
14.Workers should not imagine that their only function isto secure higher wages and shorter hours of work andbetter working conditions
2.00 0.000
15.Harmonious working relations between labour andmanagement are essential for the smooth running ofthe organization
2.00 0.000
Aggregate Mean score and Standard Deviation 2.94 0.018Source: Field Survey
The above table highlights that the mean score varies from 1.00 to 5.00 and most of the
variable’s standard deviation results as 0.000. The aggregate mean score and standard
deviation are 2.94 and 0.018 respectively. The aggregate standard deviation being less than
zero indicates consistency in the views expressed by the respondents.
The respondents agreed that compensation management considers psychological and social
factors with proper incentive plans as it consist both monetary and non-monetary elements.
Best incentive plan is always based on timing, accuracy and frequency of incentives and
Company motivates its employees by offering benefits and services to increase and improve
morale and creates a helpful and positive attitude on the part of workers towards their
employers (mean score 1.00). Respondents made no comments for the profit sharing scheme
and its aspects adopted by the company (mean score 5.00).
Inference: The working condition and motivation to employees in the organization is not
good enough and which is evident from the above analysis that the respondents disagreed
62
with working condition and motivation to employees in the organization (aggregate mean
score 2.94).
Summary of Findings, Suggestions and Conclusion
In the previous chapter, the researcher could unearth various issues through a survey
conducted. As already stated the researcher has administered questionnaire and gathered
responses on various parameters envisaged in the questionnaire. The response has been
gathered both from workers and the employers/managers and placed in part I and part II in
chapter IV respectively, comprehensive survey conducted could help in tracing the following
findings.
1. 100% of the employees are of the opinion that compensation means base wage and
variable pay like bonus and incentives.
2. 100% of the workers opined that wages are paid at both on hourly basis and on daily rate.
3. 100% of the workers observe that wage events represent the money an average worker
makes in a geographical area or in his organization.
4. 98% of the workers stated that wage structure does not refers to wage and salary
relationship within a particular group.
5. 100% of the workers stated that the employer follows competency based wage plan.
6. 100% of the employee respondents stated that they are unaware of the concept equal pay
for both male and female workers.
7. 98% of the respondents observed that competency is an effective way for more
expectation.
8. 98% of the respondents agree that authority with a service of competency level can define
a clear progression path.
9. 100% of the workers observed that competencies are not difficult to define and easy to
measure.
10. 100% of the workers observed that the organization does not follow the principle that
good sales tend to pay higher wages than those which running at a loss.
Suggestions
The researcher has shown concern to ameliorate the compensation management in the
unorganized sector and has offered the following suggestions and all this has been drawn
based on the above findings.
63
1. One of the most important gender issues in compensation is equal pay for comparable
worth. The issue in unorganized sector is all about why women get paid less compensation
when compared to their male counterparts. Hence it is suggested to have an equitable practice
should be adopted for the recognition of individual differences in ability and contribution.
2. There should be a clearly established procedure for hearing and adjusting wage
complaints.
3. Wage should be sufficient to ensure for the worker and his family reasonable standard of
living. Workers should receive a guaranteed minimum wage to protect them against
conditions beyond their control.
4. Prompt and correct payments of the employees must be ensured and arrears of payment
should not accumulate.
5. For revision of wages, a wage committee should always be preferred to the individual’s
judgment.
6. Wage and salary payments must fulfill a wide variety of human needs. Hence it is
suggested to provide, housing facilities free education to employees ward etc.
7. Under the national labour relations Act, employees have a right to discuss their wages,
hours and other terms and conditions of their employment. As a result, there do no way that a
firm can keep anything away from public gaze.
8. It is suggested to enhance the effective workers participation in management.
9. Need for elimination of child labour.
10. Need for guidance and counseling.
Conclusion
1. Indian economy is to a great extent characterized by large number of people working in
unorganized sector as unorganized worker; transitional nature of the Indian economy,
disparity in education, skill and training some of the major factors abetting such a large
concentration of workers in an area where workers are more vulnerable.
2. NCEUS has noted that the employment in India can be meaningfully classified into:
a) Formal employment in the organized sector
b) Informal employment in the formal sector
c) Formal employment in the informal sector
d) Informal employment the informal sector
64
3. Amongst these form categories reports have shown that the Indian economy is largely
characterized by huge numbers of people employed informally in the unorganized sector.
Unrecognized sector has a pivotal role in the Indian economy in terms of its contribution to
GDP and employment, but the role of this sector is fully ignored. It is in his regard there an
urgent need to study the working conditions, safety and security wage and salary
administration of unorganized sectors with special reference to stone crushing units of
Mandya district.
4. The researcher has put effort in most utmost good faith to unearth the problems of
working in stone crashing units of Mandya district.
5. The study highlights the following points
1. There is a disparity between organized and unorganized working as regards the
compensation concerned
2. The wages paid in stone crushing industries is less than the wages of workers working
under MGNAREGA scheme of GOI (Mahatma Gandhi National rural employment
guarantees Act.
3. Literacy is one of the parameters to measure the level of entrepreneurship. Mandya district
is having comparatively good education infrastructure. There
Bibliography
1. Compensation management – www.ellimuniversity,ac.in
2. Personnel management – Text and Cases – C.B. Memoria and VSP Rao., Himalayas
Publishing House.
3. Management and behavioural processes – Saraj Kumar – Thakur publishers – Bangalore.
4. Handbook of perspective plan 2013-18 – Mandya district.
5. Report of the committee on unorganized sector statistic- national statistical commission
Government of India February 2012.
6. Compensation management – best practices.
A comprehensive assessment for extracting value from compensation analysis and practice –
DB squared www.dbsquared.com.
7. Unorganized sector – Arthapedia.
8. National commission for enterprises in the unorganized sector report.
(a) Social security for unorganized workers may-2006.
(b) Conditions of work and promotion of livelihood in the unorganized sector – August 2007.
65
A Study on Consumer Preferences towards Ola/ Uber Services with Special
Reference to Mumbai Ms. Jyoti Singh
Abstract
Growth and development in India has given an impetus to a competitive market. In Mumbai
Black and Yellow Taxis (Kali-Peelee) have been an existing means of transport among
Mumbaikar to travel to any part of the city. However, with the advent of Ola/ Uber in the
field of transportation, cut throat competition among taxis has become the order of the day.
Nowadays Ola/Uber are more in demand because of their convenience and easy booking as
compared to black and yellow taxis. People prefer to use black and yellow taxis for
commuting to their workplace. People have not fully shifted to Ola/Uber because of the surge
in pricing. Black and yellow taxis have several advantages over Ola and Uber despite the new
entrants' technological superiority. In case of black and yellow (kali peelee) taxis, no prior
booking is needed. No calls to make. The passenger just needs to stand near the road, wave a
hand, get in and the ride starts. This is how Mumbaikars have known black and yellow (kali
peelee) taxis. The current study tries to understand the consumer preference towards the use
of Ola/ Uber service.
Key Words: Convenience, flexibility, government-approved, surge pricing.
Introduction
Taxicabs arrived in 1911 to complement horse wagons. The black and yellow Fiat taxis in
Mumbai, are an integral part of the city's heritage and have been depicted in numerous
Bollywood movies. These metered taxis ply throughout Mumbai and have a monopoly from
Bandra to Churchgate on the Western line and Sion to Chatrapati Shivaji Terminus on the
Central line. Beyond Sion and Bandra auto rickshaws are not allowed and one has to hire a
taxi. However, between Sion to Thane and Bandra to Bhayandar, both taxis and auto
rickshaws ply. A mechanical meter decides the fare and is proportional to the distance
travelled.
∗ Post graduate student in Commerce.
66
ANI Technologies Pvt. Ltd., operating under the trade name Ola, is an Indian online
transportation network company. Ola was founded as an online cab aggregator in Mumbai,
but is now based out of Bangalore.
It was founded on 3rd December 2010 by Bhavish Aggarwal (currently CEO) and Ankit
Bhati. As in 2014, Ola provides different types of cab service ranging from economic to
luxury travel. The cabs are reserved through a mobile app. This cab service supports both
cash and cashless payment options with Ola money. It claims to clock an average of more
than 150,000 bookings per day and commands 60 per cent of the market share in India. In
November 2014 Ola also started on-demand auto rickshaw service on its mobile app in
Bangalore, Pune and few other cities.
Uber Technologies Inc. is an American multinational online transportation network company
headquartered in San Francisco, California. It develops, markets and operates the Uber
mobile "app", which allows consumers with smartphones to submit a trip request, which the
software program then automatically sends to the Uber driver nearest to the consumer,
alerting the driver about the location of the customer. Uber drivers use their own personal
cars. As in August 2016, the service was available in over 66 countries and 507 cities
worldwide. The Uber app automatically calculates the fare and transfers the payment to the
driver. Since Uber's launch, several other companies have replicated its business model, a
trend that has come to be referred to as ‘Uberification’.
Review of Literature
A survey undertaken by Sanjay Jog, Business Standard, September 22, 2016, reveals that
80% commuters prefer Ola/Uber to regular taxis. About 11 per cent use Ola and Uber service
every day; 40 per cent use it several times a week; 15 per cent use it once a week, 13 per cent
use it once a month, while 21 per cent use it are not regular users. Moreover, 67 per cent
respondents have rated the behaviour of Ola and Uber drivers as ‘good’, while only nine per
cent rated auto drivers’ behaviour as good and only eight per cent had a good work for the
behaviour of black and yellow taxi drivers. 19 per cent commuters have
termed Ola and Uber drivers as ‘bad’, 47 per cent have a similar opinion about autos and 37
per cent for kali-peelee taxi drivers.
67
Mayank Jain, Scroll. In, Aug 09, 2016, How black and yellow cabs in Delhi and Mumbai
are trying to Beat Uber and Ola at Their Own Game
Mayank Jain in his article titled ‘How Black and Yellow Cabs in Delhi and Mumbai Are
Trying to Beat Uber and Ola At Their Own Game’ dated Aug 09, 2016 is of the opinion that
taxi associations have come together to take on the might of Uber and Ola by launching the
9211 app that allows customers to book black and yellow taxis using their smartphones. The
app, launched in January, also gives customers the option of calling for a cab through a call
centre. It charges government-approved fares starting at Rs. 22 for the first 1.6 kms. At
present, its customers can only pay in cash as the app does not offer an online payment
facility.
Research Methodology
The Study was conducted to investigate the switching of consumer behaviour from black and
yellow taxis to Ola/Uber in Mumbai. Primary Data was used in the form of a questionnaire,
interviews and observation, which is a basic method of primary data collection, which
specifies the research objectives. Secondary Data has been collected by referring to articles
on this topic. A sample of 30 respondents were been selected and studied.
Objective of the Study
a) To understand the purpose for using Ola/Uber cab services by the respondents.
b) To analyse the prime reason for using Ola/Uber cab services as compared to taxis.
Significance of the Study
a) It will be helpful to those who want to use more Ola/Uber service.
b) It will be beneficial for the Ola/Uber company to know about consumer behaviour
towards their service.
Limitations of the Study
The study of switching of consumer behaviour from black and yellow taxis to Ola/Uber in
Mumbai is very vast topic but only few aspects were considered and sample size is only 30.
68
Data Analysis
1. Age of the Respondent
The age of the respondent indicates the age group of persons who travel more in Ola/Uber
cab services.
Table 1
Age of the Respondents
Particulars Frequency Percentage
Less than 25years 7 23.33
25years – 35years 10 33.33
36years – 45years 9 30.00
Above 45years 4 13.34
Total 30 100
Source: Primary Data
Interpretation:
The above Table shows that 33.33 per cent of the respondents in age group of 25 years- 35
years prefer to travel in Ola/Uber cab services. 30 per cent of the respondents in the age
group of 36 years – 45years age; 23.33per cent were in the age group of less than 25 years.
About 13.34 per cent were in age group of above 25 years have Ola/Uber as their preferred
choice of taxi travel.
2. Gender
Gender plays a crucial role in understanding the frequency of using black and yellow taxis.
Table 2
Gender of the Respondents
Particulars Frequency Percentage
Male 19 63.33
Female 11 36.67
Total 30 100
Source: Primary Data
Interpretation
The above Table shows that, 63.33 per cent males and 36.67 per cent female use black and
yellow taxis It can be interpreted that males prefer to use Ola/Uber cab services as compared
to black and yellow taxis.
69
3. Occupation
The occupation of the respondents is an important variable to understand the use of
Ola/Uber cab services
Table 3
Occupation of the Respondents
Particulars Frequency Percentage
Students 3 10
Housewives 6 20
Service 11 36.67
Businessmen/Professionals 10 33.33
Total 30 100
Source: Primary Data
The above Table reveals that 36.67 per cent users of Ola/Uber belonged to the category of
persons in service; while 33.33 per cent of the respondents were business /profession; 20 per
cent of the respondents belonged to the category of housewives and 10 per cent were
students. The above analysis indicates that that service class and persons business/profession
use more of Ola/Uber services.
4. Important Factor Considered While Choosing the Mode of Transport
It was necessary to understand from the respondents about their views on the most important
factor considered by them while choosing the mode of transport.
Table 4
Important Factors Considered While Choosing the Mode of Transport
Particulars Frequency Percentage
Safety 3 10
Price 17 56.67
Ease of Use (Convenience) 10 33.33
Total 30 100
Source: Primary Data
As per the survey, 56.67 per cent of the respondents revealed that price is an important factor
while choosing any mode of transportation. They further reported that they preferred to use
Ola/ Uber on account of various discounts and coupons offered by the company. About 33.33
70
per cent of the respondents felt that convenience play an important factor while choosing a
mode of transportation. Only 10 per cent of the respondents indicated safety as an important
factor for choosing the mode of transport.
5. Usage of Ola/Uber Services
Use of Ola/Uber service depends upon the requirements of the respondents.
Table 5
Use of Ola/Uber Services
Particulars Frequency Percentage
Solo 12 40
In a group (Family, Friends) 17 56.67
Sharing 1 3.33
Total 30 100
Source: Primary Data
The above Table indicates that 56.67 per cent of the respondents use Ola/Uber cab services in
a group namely with family and friends. About 40 per cent of the respondents use the service
independently (solo). Only 3.33 per cent of the respondents who use Ola/Uber services
revealed that they prefer to share the services with others because it reduces the cost
considerably specially for long distances as the fare is divided among the passengers
travelling together.
6. Purpose of Using Ola/Uber Services
It was necessary to know the purpose of using Ola/Uber services. Table 6 analyses the
various reasons for using Ola/Uber services.
Table 6Purpose of Using Ola/Uber Service
Particulars Frequency Percentage
Daily Commute to Workplace 2 6.67
Meetings 1 3.33
Airport & Railway Station 14 46.67
Personal Trips 13 43.33
Total 30 100
Source: Primary Data
71
Table 6 indicates that 46.67 per cent of the respondent’s use Ola/Uber services for going to
the airport or railway stations; while 43.33 per cent of the respondents revealed that services
of Ola/Uber are used for personal trips. One of the reasons cited by the respondents was that
it was more comfortable and convenient to travel in such cars. About 6.67 per cent reported
that they use these services for commuting daily to work while 3.33 5 use the services of
Ola/Uber to attend urgent meetings.
7. Reasons For Giving Priority To Ola/Uber
It was necessary to know the reasons for giving priority to the use of services of Ola/Uber.
Table 7 shows the various reasons for giving priority to use the services of private taxis.
Table 7
Reasons for Giving Priority to Ola/Uber
Particulars Frequency Percentage
Non-availability of Parking 1 3.33
Reasonable Fare 17 56.67
Avoid Hassles like Waiting, Negotiating Price etc. 12 40
Total 30 100
Source: Primary Data
The above Table indicates that 55.67 per cent use the services of Ola/Uber services on
account of its reasonable fares while 40 per cent of the respondents pointed out that they use
the services of private cabs to avoid waiting for cab or to negotiate the price. They further
revealed that it was very easy to book these services
8. Frequency of using Ola/Uber as Compared to Black and Yellow Taxis
Every respondent uses Ola/Uber services depending upon their need.
Table 8
Frequency of using Ola/Uber as Compared to Black and Yellow Taxis
Particulars Frequency PercentageDaily 2 6.67
Twice or thrice a week 13 43.33
Once a week 6 20
Rarely 9 30
Total 30 100Source: Primary Data
72
Table 8 indicates that 43.33 per cent of the respondents use the services of Ola/Uber twice or
thrice a week while 30 per cent of the respondents rarely use the service of Ola/Uber. Twenty
per cent of the respondents use the services of Ola/Uber once a week.
9. Consumer Response during Surge Pricing
Respondents mostly do not prefer Ola/Uber service in surge pricing while travelling.
Table 9
Consumer Response during Surge Pricing
Particulars Frequency Percentage
Yes 2 6.66
No 23 76.67
Sometimes 5 16.67
Total 30 100
Source: Primary Data
From the above Table one can interpret that 76.67 per cent of the respondents are not in
favour of surge pricing while 16.67 per cent prefer surge pricing only sometimes. Only 6.66
per cent prefer surge pricing as they prefer convenience while travelling.
10. Frequency of Using Ola/Uber offers
Every respondent sometimes uses the coupons and discounts while travelling in Ola/Uber.
Table 10
Frequency of Using Ola/Uber offers
Particulars Frequency Percentage
Mostly 13 43
Sometimes 12 40
Rarely 3 10
Never 2 7
Total 30 100
Source: Primary Data
73
The above Table reveals that 43 per cent of the respondents use the various offers or
discounts announced by Ola/ Uber while 40 per cent of them use them ‘sometimes’. About 7
per cent have ‘never’ used any offers and discounts announced by the Ola/Uber services.
11. Respondent’s Level of Satisfaction on the Quality of Service Offered by Ola/Uber
The following table indicates the level of satisfaction of customers with regard to the level of
service offered.
Table 11
Respondent’s Level of Satisfaction on Quality of Service Offered by Ola/Uber
Rating Total
Highly
Satisfied
Satisfied Neutral Dissatis
fied
Highly
Dissatis
fied
No. % No
.
% No. % No. % N
o.
% No. %
Reliability 9 30 19 63.33 2 6.67 - - - - 30 100
Comfort 12 40 15 50 3 10 - - - - 30 100
Convenience of
Booking
22 73.33 8 26.67 - - - - - - 30 100
Driver
Interaction
7 23.33 10 33.33 13 43.44 - - - - 30 100
Safety & Security 9 30 12 40 9 30 - - - - 30 100
Source: Primary Data
The above Table indicates that 73.33 per cent of the respondents are ‘highly satisfied’ with
the services offered in convenience of booking while 63.33 per cent of the respondents were
‘satisfied’ with the reliability of the Ola/Uber services, followed by 50 per cent of the
respondents being ‘satisfied’ with the comfort of Ola/Uber services.
12. Travelling Distance
This factor varies from customer to customer. Most of the respondents prefer to use Ola/Uber
service for travelling long distance.
74
Table 12
Travelling Distance
Particulars Frequency Percentage
0-20km 3 10
20-30km 14 46.67
30-40km 8 26.67
40-50km 4 13.33
50km & above 1 3.33
Total 30 100
Source: Primary Data
Table 12 reveals that 44.67 per cent of the respondents use Ola/Uber service for travelling a
distance of 20-30 kilometers, while 26.67 per cent use the service Ola/Uber for travelling a
distance of 30-40 kilometers About 13.33 per cent of the respondents use Ola/Uber to travel a
very long distance of 50 kilometers and above.
Conclusion of the Study
This Study reveals that there are people who use Ola/Uber cab services twice or thrice a week
and occasionally. Nowadays people want more of convenience and safety which is offered by
Ola/Uber cab services. This is the prime reason for shifting of consumer behaviour, but
people have not shifted completely to Ola /Uber cab service.
Ola/Uber, should improve their customer car service. The Ola / Uber company should
manage their drivers well and everything will fall in place. During the collection of primary
data the researcher found that Ola/Uber were spending too much on advertisements and
providing discounts and free rides. Regular passengers are not looking for free rides but an
assurance that Ola/Uber will provide comfort and safety and that driver will exhibit good
moral behaviour.
Reference
1. Kailash Korde, Hindustan Times, 21.10.2016, “65per cent unhappy with Ola-Uber surge:
survey
75
2. Sanjay Jog, Business Standard, September 22, 2016, 80% commuters prefer Ola, Uber to
regular taxis: Survey
3. Girish Shahane, Scroll. In, Jun 17, 2015, ‘Why I gladly abandoned Bombay's Kali Peellee
cabs for Uber and Ola’.
4. Mayank Jain, Scroll. In, Aug 09, 2016, How black and yellow cabs in Delhi and Mumbai
are trying to beat Uber and Ola at their own game
5. Raveena Singh, moneycontrol.com, Aug 04, 2016, Black & yellow cabs take fight to Ola,
Uber and how
6. Times News Network, The Times of India, Aug 31, 2016, HC: Consumer is king, can't
stop discounts by Ola and Uber
7. Sunainaa Chadha, F. living, Jul 21, 2015, What #MumbaiRains taught me: Good old
Kaali Peeli is still better than Uber
76
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