Professional Documents
Culture Documents
Prepared by
Name: Jiju John
Roll No: 571119435
ACKNOWLEDGEMENT
The success of any project study depends upon a number of factors among
which the proper guidance from the experts in the industry and a faculty
plays an important role. I take this opportunity to convey my sincere
thanks and gratitude to all those who have directly or in directly helped
and contributed towards the completion of this project. I take here a great
opportunity to express my sincere and deep sense of gratitude to our SMU
Edulight Centre Professor Gangi, for giving me an opportunity to work on
this project.
By Jiju John
Abstract
Index
Introduction
Chapter 1: Retail Market Evolution in India
Chapter 2: Evolution of E - Retailing in India
Chapter 3: Research Methodology
Chapter 4: Online Shopping In India
Chapter 5: Change in Attitude towards Online
Shopping
Chapter 6: Proposed Model
Chapter 7: Factors affecting Indian consumers online
buying behavior
Chapter 8: Research Report by Juxtconsult
Conclusion
Bibliography
Introduction
Internet is changing the way consumers shop and buys goods and services,
and has rapidly evolved into a global phenomenon. Many companies have
started using the Internet with the aim of cutting marketing costs, thereby
reducing the price of their products and services in order to stay ahead in
highly competitive markets. Companies also use the Internet to convey,
communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities they will
receive if they purchase the product from a particular store. Many experts
are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, the
Internet provides a unique opportunity for companies to more efficiently
reach existing and potential customers. Although most of the revenue of
online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose
confidence.
It has been more than a decade since business-to-consumer E-commerce
first evolved. Scholars and practitioners of electronic commerce constantly
strive to gain an improved insight into consumer behavior in cyberspace.
Along with the development of E-retailing, researchers continue to explain
E-consumers behavior from different perspectives. Many of their studies
have posited new emergent factors or assumptions that are based on the
traditional models of consumer behavior, and then examine their validity in
the Internet context. E-commerce and e marketing are the two important
terms in the new Internet - based business domain.
E-commerce: It can be defined as a way of conducting business by
companies and customers performing electronic transactions through the
Internet.
E-marketing: It can be defined as the promotion of products or services
through the Internet whereas; e-tailing can be defined as selling products
and services by using the Internet.
Wang (2002) has provided a broad definition of e- tailing by defining it as
the selling of goods and services to the consumer market via the internet.
They are:
(i) A product search facility (often referred as a product evaluation or
information gathering facility)
(ii) An on-line purchase function
(iii) A product delivery capability (Koalas and Galbraith, 2000).
Like general marketing activities of an organization, E-retailers have also
stick to the same 4Ps of marketing activities. They are: Product, Price,
Promotion and Place. With regard to the right products, e-stores can
offer a larger spectrum of product offering like traditional retailers in
categories ranging from electronics to shoes. E-store is the Internet version
of stores that set up electronic store fronts on the Internet. It provides all
kinds of products and renders service to the e-customer at the click of a
mouse button and makes money by selling products directly to ecustomers. When it comes to the right price, e-stores can be operated with
low profit margin because of the lower cost and higher sales volume. As for
the right promotion, e-stores have unlimited direct marketing, advertising
and selling opportunities. Finally, with regard to the right place; the
location of e-stores is not important in the Internet and e- customer can
connect and purchase products and services from the Internet at any time
and place.
According to Lim and Dubinsky (2004), e-store is defined as a
commercial web site on which e-customers can shop and make purchases.
According to Rao (1999), e-commerce offers increased market activity for
retailers in the form of growing market access and information and
decreased operating and procurement costs. The consumers can gain
better prices due to the competition and also can enrich their knowledge
on goods and services. According to a survey conducted by Internet and
Mobile Association of India (IAMAI) and Indian Market Research Bureau
(IMRB), the e-commerce market in India has garnered Rs. 9210 crore in
2007- 08, whereas e- tailing market was only about Rs. 1150 core). In
general, e-tailing industry, from a business perspective offers an
opportunity to cater to consumers across geographies, no operational
timings, unlimited shelf space and all this with miniscule quantity of
infrastructure. For a country like India, the growth in the e- tailing market is
driven by the need to save time by urban India. Besides with over 2.5
billion internet users, access to internet has also played an important role
in growing the markets.
Consumers decision-making process has considerably changed with the
introduction of the Internet as an alternative channel for shopping. The new
wave of consumerism coupled with increasing urbanization and burgeoning
middle class with paradigm shifts in their demographic and psychographic
dynamics have driven consumers frequently to use retail websites to
search for product information and/or make a purchase of products. In
India, the shift from physical stores to e-store takes place due to the inadequacy of time of consumers and the relatively high disposable incomes
as well as due to a high need for labor-saving goods and services (Gehrt,
Yale and Lawson 1996). Again on the recent report of Internet and Mobile
Association of India (IAMAI), the Indian e-commerce market will gallop at an
impressive growth rate of 47 per cent to over Rs 46,000 crore in the year
2011. Comprising about 81 per cent of the total e-commerce in the
country, the online travel market, which includes booking rail and air
tickets, hotel accommodations and tour packages, is estimated to grow by
50 per cent and touch Rs 37,890 crore by December, 2011. E-tailing sector
in India is expected to grow by 34 per cent and touch Rs 2,650 crore in the
year 2011. Bullish on the growth prospects of the online market, the Indian
retail market has observed that online spending has been skewed toward
certain products in e-tailing. E-tailing, which includes purchases of durable
products such as electronic items, home and kitchen appliances, as well as
personal items like apparels and jewelry, constitutes 8 per cent of the
overall e-commerce market in India. The top E-tailers in India are
indiatimes.com, fabmart.com, rediffshopping.com. They have managed to
retain their lead due to innovative business strategies, supply chain model
and changing urban lifestyles.
A)
the next few years, the size of the e-retail industry is poised to be 10 to 20
billion USD by 2017-2020. This growth is expected to be led by increased
consumer-led purchases in durables and electronics, apparels and
accessories, besides traditional products such as books and audio-visuals.
The figures from IAMAI show that the internet users in India will grow to
200 million by 2010.
Around 25% of regular shoppers in India are in the 18-25 age groups, and
46% are in the 26-35year range.
Indian online matrimonial sector is worth around $230 million.
Worldwide e-commerce is only growing at the rate of 28%, since India
being a younger market, the growth of e-commerce is expected at
51% in the coming years.
In line with global trends finally India has also started shopping online
these days. As per the study by IAMAI online shopping in India has
rose from $11million in 1999-2000 to $522 million in 2007 and it is
expected to rise above $700 million by end March 2010.
Indians are also Shopaholics like other Asians. There is a strong
booming young adult population in India with good levels of
disposable income.
Indians are also Shopaholics like other Asians. There is a strong booming
young adult population in India with good levels of disposable income.
INDIA - Over $50 Billion and growing rapidly - Most popular online shopping
products include: books (45%), electronic gadgets (42%), railway
tickets (38%), accessories apparel (35%), apparel (35%), gifts
(34%), computer and peripherals (32%), airline tickets (28%), music
downloads (21%), movie downloads (21%), hotel rooms (22%), magazines
(18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%),
movie ticket (15%), beauty products (12%), health and fitness products
(12%), apparel gift certificates( 11%) and sporting goods (7%).
There are over 120 million people online in India and this is expected to
grow to 200 Million by the end of 2010
clothes; gifts, computer and peripherals, and a few are buying home tools
and products, home appliances, toys, jewelry, beauty products and health
and fitness products.
Traffic for e-commerce sites is mostly coming from the two metros of Delhi
and Mumbai.
1. Convenience
It is the major reason. Both the cities are spread out over a large area and
the best stores in both these cities are often concentrated in certain posh
areas. In Mumbai for example there are certain items you get only in
Crawford market which is at the other end of town in South Mumbai.
And demographics show that the population of Mumbai is now
concentrated in the suburbs. Of course, huge malls have come up in the
suburbs as well, and Indias biggest mall Nirmal Lifestyle is in far-flung
Mulund but often you find a better choice of sizes and styles choice in other
malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi
have transport system, few people like to travel for two hours just to get to
a shop at the other end of town. Clearly the transport systems leave much
to be desired. In Delhi, safety is also an issue for women traveling alone in
the evenings.
Kolkatta too has a literacy rate (80.8 per cent) and so does Chennai (80.1
percent.) If one compares these rates to literacy rates of cities like
Patna (62.9 percent),
Jaipur (67 percent),
Indore (72 percent) or Warangal (73 percent) its clear why its the metros
which are going to continue to lead e-shopping.
Perceived Usefulness
Perceived usefulness is defined as the degree to which a person believes
that using a particular system would increase hs or her job performance. It
is an important factor affecting acceptance of an information
system,because the ultimate aim of any person is the superior job
performance.
Perceived Enjoyment
Enjoyment refers to the extent to which the activity of using a computer
is perceived to be enjoyable in its own rights.This is seen as an intrinsic
source of motivation to use a particular application.
Amount of Information
Amount of information is defined as the information which is available for
the product which a person wants to buy through online shopping.This
factor eases the decision of the user to actually buy the productor
not, or which product to buy. This factor becomes even more
important in case of High Involvement product.
Not only is the presence of internet connection neccessary but also its
Quality is important to shop online.This is an important factor which
determines whether the user would shop online or not because presence of
internet is a basic neccessity for this mode of shopping.
CONSUMER SATISFACTION
It can be defined as the extent to which consumers
perceptions of the online shopping experience confirm their
expectations. Most consumers form expectations of the product,
vendor, service, and quality of the website that they patronize
Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online
Pvt. Ltd, are battling to win over Indias Rs16,000 crore ($400 million)
religious travel market Opportunity in Online Travel Industry: $2billion
Online travel company MakeMyTrip (MMT) has recorded sales of Rs.
1000 crore for the financial year ending March 2008, as per a release.
CONCLUSION
Increased Internet penetration, a hassle free shopping environment
and high levels of Net savviness see more and more Indians shopping
online.But at the same time the companies need to reduce the risks
related to consumer incompetence by tactics such as making
purchase websites easier to navigate, and introducing Internet kiosks,
computers and other aids in stores.
The goal is not to convert all shoppers to online purchasing, but to show
them its an option. In addition to above, efforts need to be taken to
educate the online buyers on the steps that need to be undertaken while
making an online purchase. Moreover, the feedback of an online buyer
should be captured to identify flaws in service delivery. This can be
done through online communities and blogs that serve as advertising
Bibliography
www.google.com
www.wikipedia.com
www.slideshare.com
www.filesguru.com