TERM PAPER

On
analysing perspective
about security flow of information
among organizations facilitating
e-commerce

SUBMITTED TO:
Mr. harshit maurya SUBMITTED BY:
Gagan upadAyay

SACHIN DWIVEDI

ANUSHREE KHARE

ANJU SAGAR

AKANKSHA GUPTA

ACKNOWLEDGEMENT

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This project work bears the imprints of guidance and support of many people. We would like to
express our sincere gratitude to all who helped us to make this project possible. This project
helped us in enhancing our level of self-confidence, practical knowledge, polishing our skills as
well as uplifting our personality development. Working with such dynamic heads instilled in our
self confidence and a vision to grow in the practical world.

First and the foremost, We would like to record my deep sense of gratitude and indebtedness
to my teacher and supervisor, Mr.Harshit Maurya for his constant and skilful supervision and
guidance at every stage of this work.

We are highly grateful to our friends and colleagues who helped us in the collection of data and
guided us through the way.

TABLE OF CONTENTS

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SL NO. PARTICULARS PAGE NO.

1. ACKNOWLEDGEMENT 2

2. EXECUTIVE SUMMARY 4

3. EVOLUTION OF COMMERCE 6

4. USAGES OF e-COMMERCE 8

5. INTRODUCTION TO ONLINE SHOPPING 9

6. e-COMMERCE MARKET SIZE AND TRENDS 12

7. BACKGROUND OF THE STUDY AND LITERATURE REVIEW 14

8. OBJECTIVE OF THE STUDY AND DETAILS 16

9. QUESTIONNAIRE 18

10. ANALYSIS 22

11. FINDINGS 31

12. SUGGESTION AND RECOMMENDATIONS 32

13. CONCLUSION OF THE RESEARCH 34

Executive Summary

For the purpose of study, the B2C/ C2C E-Commerce market was defined as Buying and selling

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of products & services on the Internet or on any other application that relies on the
Internet. In other words, it comprises transactions for which Internet acts as a medium for
contracting or making payment or for consuming the service/product by the end consumer,
who is an individual.
Combinations of these three conditions can be as follows
• Paying online & Consuming Online ( e.g. Online gaming)
• Consuming online & Paying offline ( e.g. Matrimonial ads)
• Contracting & Paying online & Consuming offline (e.g. Travel, Books)
Another pre-requisite for the study was that the seller of the product/service should be based
in India.
The analysis of the demand side is based on the data captured during survey.

Based on our discussion with various consumers and internet users, the size of B2C E-
Commerce Industry for the year 2006-07 was computed to be around Rs. 7080 crores. The
market is expected to reach the mark of Rs. 9210 crores by the end of 2007-08, a growth of
about 30% over the current year.
Online Travel Industry is the largest contributor to the B2C E-Commerce Industry, sized at Rs.
5500 crores for the year 2006-07 and is expected to rise to Rs. 7000 crores by the end of 2007-
08. The overwhelming response of the consumers towards this segment is triggered by the
entry of low cost carriers. The industry saw an upsurge in the travel aggregators and tour
operators, thereby bringing affordable travel at doorsteps of Indian travelers. The industry has
witnessed an increase in the number of travelers as well as number of travels per traveler.
However, the biggest issue facing this industry is limited penetration of credit cards, coupled
with consumer’s apprehensions towards using their credit cards online.
Moving on to other segments that have been clubbed into Online Non-Travel Industry, they are
smaller than online Travel industry as they cater to the niche segments and are faced with a
specific set of triggers and barriers.
eTailing stands at Rs. 850 crores in the year 2006-07 and contributes maximum to the Online
Non-Travel Industry. It is expected to be Rs 1105 crores industry at the end of 2007-08. Owing
to elimination of physical costs, the category offers the best deals for low-end as well as high
end products. However, many customers complain about the untimely delivery of products
ordered online.
Online Classifieds is the second largest contributor to Online Non-Travel industry. The size of
Online Classifieds was around Rs. 540 crores at the end of 2006-07. It is expected to rise to
Rs. 820 crores by the end of 2007-08. Since, this segment is consumer-driven, it provides the
users flexibility to access large database at the lower costs.
Though there is no dearth of free data available online, sale of information online is becoming a
success. More and more players are entering the market to sell exclusives videos, research
data,reports, etc. The size of Online Subscription market is expected to grow by 50% from Rs.
20 crores in 2006-07 to Rs. 30 crores at end of 2007-08.

Along with the PC-based internet access, the mobile-based internet access is expected to drive
the growth of B2C and C2C E-Commerce industry in the country. With increase in the mobile
subscribers, there has been a rise in digital downloads to the mobile phone. With the surge in

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mobile penetration and usage of GRPS enabled mobile handsets, the size of digital downloads
market is expected to rise from Rs. 170 crores in 2006-07 to Rs. 255 crores at end of 2007-08.
Thus, with continuous efforts towards making online payment systems safer and rise in online
shoppers from smaller cities owning to increasing Internet and mobile phone penetration, the
growth of B2C E-Commerce industry is inevitable in the country. The next phase of growth
would be marked by localized product offerings and making content available in various Indian
languages.

Evolution of commerce

Commerce has evolved over the centuries. Prior to the evolution of money it was a simple
“barter process” where things could be exchanged, say milk for grains. The evolution of money

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 brought with it, the concept of a “marketplace”. In a marketplace, Commerce is function of 4
P’s
– Product, Price, Place and Promotions. All these four components play a vital role in a
transaction to take place. Different combinations of 4Ps determine different forms of
Commerce.
Once the marketplace came into existence, a few pioneers realised that people would be ready
to pay extra if they could deliver products at customer’s doorsteps. A slight modification on
Price and Place led to the convenience of getting products at their homes. This concept
delighted the customers and thus, the concept of “Street Vendors” was born.
When the Postal System came into being the sellers decided to cash in on the new opportunity
and started using mailers giving description of their products. It led to the concept of “Mail
Order Cataloguing”. From here, the evolution of the “Tele shopping” networks was inevitable
with the development of media vehicles.
The latest generation of commerce is one that can be done over the internet. Internet provides
a virtual platform where sellers and buyers can come in contact for sale and purchase of goods
and services. They can be thousands of miles apart, may belong to different parts of the world,
might speak different languages, “E-Commerce” emerged as the boundary-less trade medium
in the era of globalization.

The term "Electronic commerce" (or e-Commerce) refers to the use of an electronic medium to
carry out commercial transactions. Most of the time, it refers to the sale of products via
Internet, but the term eCommerce also covers purchasing mechanisms via Internet (for B-To-B).
A client who purchases on the Internet is called a cyberconsumer. E-Commerce is not only
limited to online sales, but also covers:

 Preparation of estimates online

 Consulting of users
 Provision of an electronic catalog
 Access plan to point of sales
 Real-time management of product availability (stock)
 Online payment
 Delivery tracking
 After-sales service

 Barter process

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  Monetary transactions

 Street vendors

 Mail order cataloging

 Tele shopping

 Electronic commerce

Since, Internet has the ability to reach the customer’s home; the Distribution Channel has
started to assume new meaning to the B2C and C2C eMarketer. The Physical delivery got
converted to electronic delivery; physical products were now electronic products, displayed on
a website. With options of paying online through debit and credit cards, even the transaction
was purely electronic. Another important P for the e marketer, the Promotion, assumed
importance, especially because there is no face to face interaction between the buyer and
seller. The focus of online promotions is the ‘great deals’, ‘discounts’, ‘convenience’ offered by
the eMarketers.

Usage Of E-Commerce

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According to the survey conducted among the Industry players, the E-Commerce Industry in
India was worth Rs 7080 crores at the end of 2006-07. Is it big enough? How much is it
expected to grow?
The adoption and usage of E-Commerce in the country is a function of the overall environment
for Internet usage in a country. To correctly understand the likely growth path for E-Commerce
in India it is imperative to understand the internet ecosystem in the country.
Some of the key variables that need to be understood are the proportion of computer literates,
internet penetration, frequency of access to the internet, purpose of internet access etc.
A correct mapping of these would help in understanding the overall framework of E-Commerce
in the country.
The PC literate population is on a fast growth curve having grown 100% in 2006 over 2004.
Though in India overall penetration is still low the important factor is that a critical mass of
users is shaping up which will fuel rapid growth over the next 3-4 years.
A Claimed or Ever Internet User is defined as one who has ever accessed Internet.
A subset of Claimed Internet users, Active Internet Users are defined as those who have
accessed Internet at least once in the last one month. They are the regular users of Internet and
are aware of the recent trends and applications emerging on the Internet. The population of
Active Internet Users was 21 million in March 2006.
As these Internet Users mature with respect to exposure and awareness of internet, they tend
to spend more time online; access internet more frequently and surf non-communication based
applications and advanced online applications like gaming, E-Commerce, etc. However, as it is
evident from the charts below, E-Commerce is still not the key driver of the internet. Internet
usage in the country is still driven by email and information search.
However, the interesting part is that out of the 13.2 million internet users across 26 cities
covered in I-Cube 2006, (Syndicated Research of e technology group @IMRB
International),14.2% use the internet to buy travel tickets; 5.5% people do online shopping
especially products like Books, Flowers, Gifts etc. and 5% people deal in stocks and shares
through the internet. Though the percentage contribution of E-Commerce is almost same over
the years, however, the number of Internet users using E-Commerce is growing rapidly E-
Commerce in India, September 2007. The PC literate population is on a fast growth curve
having grown 100% in 2006 over 2004. Though in India overall penetration is still low the
important factor is that a critical mass of users is shaping up which will fuel rapid growth over
the next 3-4 years.

Introduction to online shopping

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Online shopping is the process consumers go through to purchase products or services over the
Internet. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or
virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar
retailer or in a shopping mall.

The metaphor of an online catalog is also used, by analogy with mail order catalogs. All types of
stores have retail web sites, including those that do and do not also have physical storefronts
and paper catalogs. Online shopping is a type of electronic commerce used for business-to-
business (B2B) and business-to-consumer (B2C) transactions.

Benefits of online shopping:-

1. Bargaining power of consumers. They enjoy a wider choice

2. Supplier power. It is more difficult for consumers to manage a non-digital channel.
3. Internet increases commoditization
4. Threat of new entrants. Online means it is easier to introduce new services with lower
over-heads
5. Threat of substitutes
6. Rivalry among competitors. It is easier to introduce products and services to different
markets

Trends:-

One third of people that shop online use a search engine to find what they are looking for and
about one fourth find websites by word of mouth. Word of mouth has become a leading way by
which people find shopping websites. When an online shopper has a good first experience with
a certain website, sixty percent of the time they will return to that website to buy more.

Books are one of the things bought most online. However, clothes, shoes, and accessories are
all very popular things bought online. Cosmetics, nutrition products, and groceries are
increasingly being purchased online. About one fourth of travelers buy their plane tickets online
because it is a quick and easy way to compare airline travel and make a purchase. Online
shopping provides more freedom and control than shopping in a store.

From a sociological perspective, online shopping is arguably the most predictable way to shop.
One knows exactly what website to go to, how much the product will cost, and how long it will
take for the product to reach them. Online shopping has become extremely routine and
predictable, which is one of its great appeals to the consumer.

Market share:-
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E-commerce product sales totaled $146.4 billion in the United States in 2006, representing
about 6% of retail product sales in the country. The $18.3 billion worth of clothes sold online
represented about 10% of the domestic market.

For developing countries and low-income households in developed countries, adoption of e-

commerce in place of or in addition to conventional methods is limited by a lack of affordable
Internet access.

Advantages

Convenience

Online stores are usually available 24 hours a day, and many consumers have Internet access
both at work and at home. A visit to a conventional retail store requires travel and must take
place during business hours.

Searching or browsing an online catalog can be faster than browsing the aisles of a physical
store. Consumers with dial-up Internet connections rather than broadband have much longer
load times for content-rich web sites and have a considerably slower online shopping
experience.

Some consumers prefer interacting with people rather than computers sometimes because
they find computers hard to use. Not all online retailers have succeeded in making their sites
easy to use or reliable.

In most cases, merchandise must be shipped to the consumer, introducing a significant delay
and potentially uncertainty about whether or not the item was actually in stock at the time of
purchase. Bricks and clicks stores offer the ability to buy online but pick up in a nearby store.
Many stores give the consumer the delivery company's tracking number for their package when
shipped, so they can check its status online and know exactly when it will arrive. For efficiency
reasons, online stores generally do not ship products immediately upon receiving an order.
Orders are only filled during warehouse operating hours, and there may be a delay of anywhere
from a few minutes to a few days to a few weeks before in-stock items are actually packaged
and shipped. Many retailers inform customers how long they can expect to wait before
receiving a package, and whether or not they generally have a fulfillment backlog. A quick
response time is sometimes an important factor in consumers' choice of merchant. A weakness
of online shopping is that, even if a purchase can be made 24 hours a day, the customer must
often be at home during normal business hours to accept the delivery. For many professionals
this can be difficult, and absence at the time of delivery can result in delays, or in some cases,
return of the item to the retailer. Automated delivery booths, such as DHL's Packstation, have
tried to address this problem.

In the event of a problem with the item - it is not what the consumer ordered, or it is not what
they expected - consumers are concerned with the ease with which they can return an item for

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the correct one or for a refund. Consumers may need to contact the retailer, visit the post office
and pay return shipping, and then wait for a replacement or refund. Some online companies
have more generous return policies to compensate for the traditional advantage of physical
stores. For example, the online shoe retailer Zappos.com includes labels for free return
shipping, and does not charge a restocking fee, even for returns which are not the result of
merchant error. (Note: In the United Kingdom, Online shops are prohibited from charging a
restocking fee if the consumer cancels their order in accordance with the Consumer Protection.

Information and reviews

Online stores must describe products for sale with text, photos, and multimedia files, whereas
in a physical retail store, the actual product and the manufacturer's packaging will be available
for direct inspection (which might involve a test drive, fitting, or other experimentation).

Some online stores provide or link to supplemental product information, such as instructions,
safety procedures, demonstrations, or manufacturer specifications. Some provide background
information, advice, or how-to guides designed to help consumers decide which product to buy.

Some stores even allow customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products.

In a conventional retail store, clerks are generally available to answer questions. Some online
stores have real-time chat features, but most rely on e-mail or phone calls to handle customer
questions.

Price and selection

One advantage of shopping online is being able to quickly seek out deals for items or services
with many different vendors (though some local search engines do exist to help consumers
locate products for sale in nearby stores). Search engines and online price comparison services
can be used to look up sellers of a particular product or service.

Shoppers find a greater selection online in certain market segments (for example, computers
and consumer electronics) and in some cases lower prices. This is due to a relaxation of certain
constraints, such as the size of a "brick-and-mortar" store, lower stocking costs (or none, if drop
shipping is used), and lower staffing overhead.

E-Commerce Market Size and Trends

Online Population and Internet Commerce Market Size

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The increase and penetration of online use in the US increases the potential market size for
businesses on an annual basis. A large share of the expected growth in Internet commerce can
be attributed to the increase in the online population:

 US online population estimated to increase nearly 50%, from 142 million in 2001 to 211
million by 2006 (CAGR of 8.2%).
 U.S. online retail sales will grow from $40.4 billion in 2002 to an estimated $112.5 billion
in 2006 (see Figure 6 below).
 There are 2.3 million small companies in the U.S.; with 16% of these in the retail trade
and 60% of all small companies have an online presence - potential market size for our
service is upwards of 200,000 companies.
 Online shopping population will grow from 66 million in 2001 to 132 million 2006 (see
Figure 7 below).
 Annual spending per buyer will increase from $457 in 2001 to $784 in 2006.

Figure 1 U.S. Online Retail Sales

Note: Excludes sales of travel products, automobiles, and prescription drugs.

Source: Jupiter Internet Shopping Model, 10/01 (US only)

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 Figure 2 U.S. Online Shopping Population

Source: Jupiter Internet Shopping Model, 10/01 (US only)

© 2002 Jupiter Media Metrix, Inc.

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 BACKGROUND OF THE STUDY

This research work is conducted in order to find out what image of e-commerce do consumers
and internet users have in their minds. E-commerce is growing at a fast pace and most of the
users have internet access. Therefore this research work basically constitute a survey done with
the consumer segment of local market who have computer and internet access and are aware
with the concept of e- commerce and online selling. This study also involves the analysis of the
comfort levels among the users of internet towards e-commerce.

Literature review

There are many researches done on E-Commerce industry. These researches are done on the basis of
many parameters. Here we are giving some analysis which is done by a syndicated product of IMRB
International in 2006.

In addition to the industry size, it is imperative to understand the reasons behind the growth and
reasons hampering the growth E-Commerce industry in the country. This section elaborates the triggers
and barriers that impact the adoption of E-Commerce by the Internet users.

We would start by enlisting the triggers which motivate the online shoppers to buy products online.

Top 6 reasons given by shoppers in buying through Internet Rank

Saves time and efforts 1
Convenience of shopping at home 2
Wide variety / range of products are available 3
Good discounts / lower prices 4
Get detailed information of the product 5
You can compare various models / brands 6

Source: I-Cube 2006, a syndicated product of IMRB International

As evident from the table above, time saving is the major reason that drives Internet users to shop
online. It is followed by convenience of anyplace, anytime shopping online. Online stores do not have
space constraints, thus, a wide variety of products can be put for display. Companies can display whole
range of products being offered by them. This further enables the buyers to choose from a variety of
models after comparing the looks, features, prices of the products on display.

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To attract customers to shop online, eMarketers are offering great deals and discounts to the customers.
This is facilitated by elimination of maintenance, real-estate cost of the seller, selling its products online.

An insight into some of the problems stated by customers while buying through Internet will help us to
have a closer look at the issues which need to be addressed by the online community.

Top 6concerns while buying online Rank

Not sure of product quality 1
Cannot bargain/Negotiate 2
Not sure of security of transactions /Credit card misuse 3
Need to touch and feel the product 4
Significant discounts are not there 5
Have to wait for delivery 6

Absence of touch-feel-try creates concerns over the quality of the product on offer. Another roadblock
in the way of E-Commerce is lack of interactivity so as to allow for negotiations between the buyer and
sellers.

In addition to above, the security of online payments is a major issue requiring immediate attention of
the eMarketers. Increasing rate of cyber crimes has made customer apprehensive of revealing their
credit card details and bank details online.

Moreover, the duration of selecting, buying and paying for an online product may not take more than 15
minutes; however, delivery of the product to customer’s doorstep may take about 1-3 weeks.

Further more our past observation has been that in India shopping is an experience itself. Consumers
look forward to it as an opportunity to get out of their homes and interact with other people. The recent
growth in the malls and the hypermarkets only corroborate this fact. Thus, Ecommerce has to bank on
the convenience and discount platform as there is no way that they can compete with the offline
platforms on the experience that they provide.

There is no doubt that Internet shopping has a number of benefits to offer. With changing lifestyles, E-
Commerce is surely the most appealing and convenient means of shopping.

However, the grave issues surrounding the market do not make it the “choice” of most of the Internet
users. Addressing the above specified issues, thus, has become critical to expand beyond the current
user base.

This analysis is done by an international company for the purpose of to build up their market through
website. But what is actually the consumer think while purchasing online i.e. customer behavior while
purchasing anything online is not very clear.

OBJECTIVE OF THE RESEARCH:

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The primary objective of the research is to understand, analyze and interpret the e-commerce
and internet shopping market dynamics among the local consumers. There are a number of e-
commerce websites which provide online shopping facility with certain additional features. The
research conducted will analyze why a consumer choose to shop online, how can online
shopping and e-commerce websites be improved and what are its benefits.

 To conduct a survey and ascertain / identify various types of services which affect
consumer’s satisfaction.
 To determine and analyze the results of the survey along with the various relationships
between factors.
 To interact with the consumers formally and informally and ascertain their problems
empathetically.

SCOPE OF STUDY:

 The study pertains to the consumers who are aware of internet and computer
applications.
 The study shows the impact of different factors like payment system, security, website
layout and features on the consumers and their shopping habits.
 The study also gives the information about the competitive advantage of shopping
online as compared to traditional shopping.

RESEARCH DESIGN:
Exploratory research design was used for this project. The main purpose of this research is to
interact with consumers and to know the satisfaction level by the quality of services being
rendered by e-commerce websites and online shopping service providers. The major emphasis
in this study is on discovering of ideas and insights.

RESEARCH INSTRUMENTS USED:

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Methods used under this kind of research design are:

 Developing plans for the research

 Drafting questionnaire
 Survey
 Analyzing and interpreting the results.

Here, we have used method of research-based survey. The consumers having an access to
computers and internet are our research subjects. The object of the survey is to obtain the
insight into the relationship between the sales and services rendered by the e-commerce
websites.

Advantages:

 It is fast and easy to comprehend.

 It can get good result even with a small sample size.
 It gives the research the necessary flexibility to get a deeper understanding of the
respondents.

METHODS OF DATA COLLECTION:

Data collection used for the specific purpose of the research was first hand data called primary
data. It is the first hand data, which is collected through direct involvement of both the parties.
The method that was used for obtaining primary data was through questionnaires.

SAMPLE DESIGN:
Sampling is done to figure out the parameters, which decide our sampling techniques and the
sample size to be adopted. It is the process of selecting units from population of interest so that
by studying the samples one can fairly generalize the results to the population from which the
results were chosen. This would further help the whole research to reach the final solution.

SAMPLE SIZE: 100

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SAMPLING UNIT: consumers having access to internet

We have planned to do the research by personally visiting the consumers or through telephonic
interview. These consumers have been picked up from the sample population from the prime
locations in Lucknow market. From the population we have chosen only those consumers who
have an access to computers and internet technologies so as we get results for our survey.

LIMITATIONS:
 The scope of the study is restricted only to the major areas of Lucknow and does not include the
outskirts.
 Responsive error ---- this arises when respondents are unwilling to listen or talk.
 Time was the major constraints in interviewing required consumers.

About the Questionnaire:

The questionnaire we have designed for the purpose of research contains fifteen objective
questions. Each question has its options basically as per the requirement of the question.
Through this questionnaire we tried to find out whether ageneral consumer is inclined towards
e-commerce and online shopping or not. So that we can know what consumers think about the
e-commerce websites and their services and we can easily find out the fields in which e-
commerce websites are doing well and in what area does e-commerce websites have to
improve their services.

We have chosen the consumers as our respondent because we wanted to analyze the e-
commerce success. A customer can tell about the services of e-commerce website which
he/she is using and he may be know about the services or the weakness of e-commerce
websites and the services provided by them.

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After designing the questionnaire we got twelve factors on which we tried to analyze the e-
commerce market and its success rate among the consumers. We have chosen the factors
which are very important for a company to survive in this competitive market. This research is
not only going to give us the market share of the e-commerce, but also the analysis of this
research will tell the performance of the e-commerce websites in the view of the consumers.

QUESTIONNAIRE

NAME:-

1. Which age bracket do you fall into?

(a) 18 – 30 (b) 31 – 45 (c) 46 – 60 (d) 60+

2. How comfortable do you feel using internet?

(a) Very comfortable
(b) Somewhat comfortable
(c) Uncomfortable
(d) Somewhat uncomfortable

3. Which option best describes your general internet usage?

(a) Very often (everyday)
(b) Once a week
(c) Once a month
(d) Rarely

4. Please specify which feature of an e-commerce site attracts you?

(a) Content
(b) Visual appearance / layout
(c) Products (brands)

5. How did you come across an e-commerce site?

(a) Word of mouth
(b) Newspaper
(c) Friends
(d) Search engines

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6. What is the key feature of an e-commerce site product?
(a) Overall quality
(b) Value
(c) Purchase experience
(d) Usage experience

7. Most recently you purchased online?

(a) Books/ CDs (b) Cloths / apparels (c) Others (tickets) (d) Nothing

8. What kind of payment mode you prefer?

(a) Online payment (PayPal)
(b) Offline payment
(c) Credit card
(d) Visa / MasterCard

9. Have you done an e-billing transaction for?

(a) Electricity bill
(b) Telephone/mobile bill
(c) Income tax
(d) E-reservation

10. Online trading sites are?

(a) Very attractive
(b) Average
(c) Not very attractive
(d) Not attractive at all

11. Why is e-purchase not so popular?

(a) Too complicated to place an order
(b) Easier to purchase locally
(c) Not familiar with the vendors
(d) Security and privacy issues

12. Do you feel internet shopping is good substitute of traditional shopping?

(a) Yes
(b) No
(c) Undecided

13. Would you recommend an e-commerce site?

(a) Very likely
(b) Somewhat likely
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 (c) Somewhat unlikely
(d) Not at all

14. Your valuable suggestions on how to improve an e-commerce site:-

ANALYSIS
1. Age of consumers surveyed

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 age group
5
13

18-30
22 60 31-45
46-60
60+

The pie-chart above clearly shows that 60% of the consumers surveyed are of the age
group 18-30 years involving youth basically students and new entrants in the service.
22% of the users surveyed comprise of the age group 31-45 years i.e. service segment.
13% of the surveyed user falls into the age group of 46-60 years which is the saving
phase while the remaining 5% user surveyed are of 60+ years.

2. Internet usage

90 85
80
70
60
50
40
30
20
10 7 6
2
0
everyday once a week once a month rarely

The above bar graph shows the internet usage among the consumers surveyed. 85% of
the users surveyed have an access to internet very often i.e. daily whereas the users
going online or using internet once a week comprise 7% of the surveyed user. The other
two categories i.e. once a month and rarely have an user base of 6% and 2%
respectively.

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Thus the above factor suggest that most of the users access internet frequently and
therefore there e-commerce website reach is more easy.

3. Comfort using internet

70 65
60

50

40

30 27

20

10 6
2
0
very comfortable somewhat comfortable uncomfortable somewhat uncomfortable

Comfort level of users surveyed for using the internet shows that 65% of the consumers
are very comfortable using the internet. 27% of the users are somewhat comfortable
whereas 6% users are uncomfortable using the internet. Remaining 2% of the
population surveyed is somewhat uncomfortable with the usage of internet.

Now-a-days internet is used for various purposes like educational, banking, payments,
etc which shows that people have to use internet regularly and for all the above
mentioned purposes, therefore the comfort level of the users with internet is increasing
day by day.

4. Awareness towards e-commerce sites

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 80
70
70

60

50

40

30 25
20

10 4
1
0
word of mouth newspaper friends search engines

This bar graph above depicts that out of the 100% population surveyed, 70% of the
users got aware about the e-commerce site through search engines while 25% users got
information through their friends and remaining 4% got aware through word-of-mouth
whereas 1% got aware through newspapers.

5. Attractive feature of an e-commerce website

40
45
content
layout/ visual appearance
products

15

The users surveyed have rated the e-commerce websites of the following basis:-
Content 40%
Layout/ Visual appearance 15%
Products (brands) 45%

~ 24 ~
 6. Key feature of an e-commerce product

40
35
35
30
25 25
25
20
15
15
10
5
0
overall quality value purchase experience usage experience

The key features of an e-commerce site which attract a customer are mentioned as
overall quality, value generated, purchase experience and usage experience. Out of the
total population surveyed, 35% of the users think that overall quality of the product is
the key feature of an e-commerce website whereas 25% of the users emphasize on the
value generated by the products for the consumer. 15% believe that their purchase
experience was the key feature while 25% of the user focus on the use of the product
and say that usage experience is the key feature of an e-commerce website.

7-Items recently purchased online

~ 25 ~
 60 55
50

40
30
30

20
11
10
4
0
books compact disk (CDs) cloths/ apparels others (tickets)

The above bar chart shows recently purchased online by the population surveyed. It was
found that about 55% of the users surveyed purchased tickets (railways, airways,
movies) online. 30% of the users opted e-commerce websites for purchasing CDs
whereas 11% of the users were interested in purchasing books. A small segment of 4%
of the users was comfortable in buying cloths/ apparels online.
This analysis clearly shows that most of the users buy tickets online. They do not trust e-
commerce sites for purchasing items like cloths which demand fitting and a touch and
feel experience. They are more comfortable in buying those items which are time
consuming like the long queues of ticket counters.
8-Payment mode

80 75
70
60
50
40
30
20 15
10 7
3
0

The bar chart above clearly defines the user preferred modes of payments. About 75%
of the user trust offline modes of making payments for their transactions. Credit card

~ 26 ~
payment is selected by 15% users while visa/ MasterCard are used and preferred by 7%
of the surveyed population. Online mode of payment i.e. PayPal is just trusted by 3% of
the users.
This analysis states that still the users don’t trust online modes of making payments for
their transactions. They put up questions on the security and worthiness of such modes.
Still offline modes of payments are popular among the users for making the payments
for their transactions.

9-E- billing transactions

90 85
80
70
60
50
40
30
20
10 8
5
2
0
electricity billing telephone/ mobile bills income tax e- reservation

The above chart depicts the major areas where users prefer to pay their bills online. The
bar chart clearly states that 85% of the population surveyed conducts their ticket
reservation transactions i.e. the e reservation transactions using internet. While other
categories of electricity billing, telephone/ mobile billing, income tax filing have only got
5%, 8% and 2% users votes respectively.

10-Reasons behind low popularity of e-commerce/ online selling

~ 27 ~
 60
50
50
40
30
20 20
20
10
10
0
d lly ty r s
te ca fe do
il ca o sa n
p el d e
m as an ev
co r ch
ir ty th
pu th
to se
cu
r wi
sier ilia
m
ea t fa
no

The reasons which the users suggest for low popularity of e-commerce among the
consumers are
 complications of using and conducted the e-commerce transactions 10%
 easier to purchase with the local markets 20%
 security and safety reasons 50%
 not familiar with the vendors 20%

This clearly shows that still the security and safety assured by the e-commerce
websites and online selling vendors are not enough for the consumers. Still the
safety issues lack consumer satisfaction.

11- Internet shopping VS Traditional shopping

~ 28 ~
 10

50 yes
no
undecided
40

This chart clearly presents that internet shopping is gaining popularity among the
consumer segment day by day. From the total population surveyed, 50% of the
population is of the opinion that internet shopping/ online shopping is gaining
popularity and is a better substitute of traditional shopping methods which are more
time consuming and hectic.
40% of the users surveyed do not consider online shopping to be a better substitute.
They still support the traditional methods of purchasing household and other items of
use. While 10% of the population is still uncertain about whether online shopping is
better or traditional shopping.

12-Would like to recommend e-commerce websites to

others

~ 29 ~
 15

25 yes
no
undecided
70

The users surveyed were asked whether they would like to recommend e-commerce
websites and online shopping methods to others. 70% of them said that they would like
to recommend e-commerce websites to others too as they seemed satisfied themselves.
25% of the users said they would not like to recommend e-commerce websites to others
while remaining 15% were not able to make up their minds.

FINDINGS

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 Most of the consumers surveyed in the study fall under the age group of 18-35 which is
the segment comprising of youth and new service entrants.

 Internet usage among the users is increasing day by day. Now users visit internet very
often. They use internet for all purposes including educational, search, shopping,
reservation, etc.

 With the frequent use of internet among the users their comfort level with internet is
also increasing rapidly. Now the users find themselves very comfortable while accessing
internet.

 The users were also surveyed on their choice of the e- commerce website feature which
attracts them the most. Products (brands) was the first choice followed by content and
layout of the website.
 Most of the users got aware about the e- commerce websites through search engines
like Google while others got information through their friends, newspapers, etc.

 Users were asked about their choice on the feature of e-commerce product which
satisfied them the most. They rated overall experience at the first place followed by
value of the products and usage experience.

 Tickets (railways, airlines and movies) were the most frequently and recently purchased
items online by the users surveyed while cloths and apparels were the least voted.

 Users surveyed preferred offline mode of payment for the e-commerce transactions
while online modes were least preferred as security reasons are still in the minds of the
consumers.

 e- Billing transactions are also gaining popularity among the users. Telephone/ mobile
bills, electricity bills, income tax all are paid online. But the most rated e-billing
transaction by the users is e- reservations.

 The users were also asked what were the main reasons behind the low rate of
popularity of e commerce among the consumers. Security issues turned out to be the
main reason behind low popularity followed by complications during e-commerce
transactions and unfamiliarity with the e- commerce vendors.

 Internet shopping was considered better than the traditional method of shopping in the
analysis of the survey.

 Most of the users surveyed agreed that they would be satisfied and likely to recommend
e-commerce websites and online shopping methods to others too.

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 Suggestions and RECOMMENDATIONS

The following are the recommendations which we would like to include after the
analysis of the survey conducted by us :-

 E- commerce websites should emphasize more on the security issues. The

websites and online shopping services should be made more secure and safe for
users.

 E- commerce services and websites should be made more user friendly so that
the users find it more comfortable while using the websites.

 E-commerce vendors should promote themselves among the consumer segment

through different kinds of promotional and advertising medias so that people get
aware about the e-commerce websites and the facilities and products provided
by them.

 The websites providing e- commerce should be made more interactive for the
users. Two way communications should be the prime objectives of the e-
commerce websites.

 Layout and visual appearance of the e-commerce websites also demands

improvisation.

 Users prime emphasis while conducting an e-commerce transaction is their

credit card security issues. Therefore the site vendors should provide adequate
security features for the consumers.

 E- billing transactions should also be the core area where e-commerce service
providers should focus because now a days use of internet for paying bills is on
the verge of rapid increase.

 E- reservation facilities of e-commerce are popular among consumers therefore,

the service providers should emphasize on its continuous improvisations.

~ 32 ~
 The vendors should provide appropriate orders along with timely delivery. The
products featured on the websites should never be contradictory with the item
that is finally supplied to the consumer by the vendor.

 Additional features like reward points, u-make the store should also be featured
along with the basic facilities of the e-commerce websites.

Conclusion of the research analysis

~ 33 ~
This research on success of e- commerce among the consumers gives an insight into the e-
commerce trends and online shopping popularity among the users who have an access to
computers and internet. It is an honest attempt conducted to understand the market
complexities and the problems faced by the e-commerce websites.

Information industry is growing very fast in India and so in Lucknow. E- commerce is one of the
fastest acclaimed information technology. This is gaining popularity day by day among the
consumer class. People now prefer to sit at their couches and conduct their various
transactions by just clicking a mouse. They neither have time nor do they now prefer traditional
shopping methods. They prefer online shopping where they can see the product and make
payment on the delivery of the products. Consumers segment which prefers online shopping
and support e- commerce is increasing every now and then.

The study reveals the weaknesses and strengths of e- commerce needed to improve its network
area and offers to new connections. The study based on the several months of data, clearly
brings out the need for ensuring effective interconnection between various consumers in view
of rapid increase in user data base. The study further reveals, that to be able to cope up with
this growing rate, without congestion in the network, there is an imperative need to drastically
curtail the time needed for providing the interconnection or for meeting the augmentation
requests.
Ecommerce today is a remarkable experience. It has transformed traditional shopping beyond
recognition. It is so much better than any other way of shopping that it has already attracted a
great many of ecommerce-lovers.
If some years ago ecommerce was a buzz word, now it has become the order of the day. People
seem to shop literally everywhere – at their workplaces during lunch times, in rush hour when
there is nothing else to do but switch on their laptops and start surfing.
Ecommerce today gained so much popularity because its underlying technologies are evolving
at giant steps. We are even offered to “feel” the product with a 3D mouse to better understand
its shape, size and texture. Why go somewhere out when all you have to do is make an order,
choose the shipping method, put up your feet and wait till the order is delivered right to your
door-step?
Ecommerce today offers so much luxury that even conventional stores have already signaled
the alarm. Although, every one agrees that it is a long way for an ecommerce to replace “brick-
and-mortar” stores, it has every chance to happen in the future. Ecommerce which we are
witnessing today brings in so much adventure into our lives that it is enjoyed by the whole
online community.
Ecommerce today does have some drawbacks but they say “he that fears every bush must
never go a birding”. A lot of consumers do put up with minuses since they trust the online
world and want it to be a better place.
Ecommerce today reflects what we created at the very dawn of online electronic commerce. It
is made by us and meant for us.

E-Commerce is not just about conducting business transactions via the Internet. Its impact will
be far-reaching, and more prominent than we know currently. This is because the revolution in
~ 34 ~
information technology is happening simultaneously with other developments, especially the
globalization of the business. The new age of global e-commerce is creating entirely new
economy and that will tremendously change our lives, will reshape the competition in various
industries, and alter the economy globally. As companies are gaining high profits, more and
more other companies are developing their websites to increase their profits. Since more
businesses are being held online resulting in high economy development and emergence of a
more innovative and advanced technology.

~ 35 ~