A presentation

on
A survey on customer
preference of
e-commerce vs. traditional
commerce
Group No. 05
Pawan Kr. Kushawaha
Moh. Kasif
Lubna Anjum
Rajesh Kumar
Ramesheshwar Singh
Shiv Prakash Dwivedi
 Traditional Commerce
Users come to online commerce with some key experiential
understandings of the characteristics of traditional commerce.
Identity:- Customers can easily authenticate the identity of a
merchant simply by walking into a bricks-and-mortar store.

Immediacy:- Customers can touch and feel and hold the merchandise. Tactile
cues can drive the decision to buy. A transaction that is face-to-face is usually
unmediated:
Value:-The item at the center of the commerce transaction — the product,
service, or property that is to be sold/bought — has some kind of value. Its price
is determined and validated through the performance of the transaction.
Contd…

Discourse:-Customers can converse with the merchant face-to-face;

unmediated conversation is basic to human communication. People want the
feedback available from non-verbal behavior, which forms a large part of our
judgment process.
Community:-Customers can interact with other customers and gain feedback
about the merchant from other customers, as well as by observing the merchant
interacting with other customers.
Privacy:-Customers can make purchases anonymously with cash; they usually
don’t have to give their name or address. They don’t usually have to worry about
what a store will do with their personal information.
 Different Kinds of “Traditional” Commerce Models
Not every commerce transaction is identical, and not every transaction is the
same type of transaction. In experience, dealt with roughly five types of
commerce transaction offline.
 Retail store
 Retail special order
 Catalogue store
 Phone order from a catalogue
 Bargaining
In fact, based on our experience, we build frameworks to describe these
transactions, with steps and meaningful elements, and we use these frameworks
to understand every new commerce transaction in which we engage. These
frameworks are called schemas, and we use these schemas to make sense of
ecommerce web sites when we take our shopping online.
 Electronic commerce
Electronic commerce, commonly known as e-commerce
consists of the buying and selling of products or services over
electronic systems such as the Internet and other computer
networks.The amount of trade conducted electronically has
grown extraordinarily with widespread Internet usage.
E-commerce is the use of the Internet and the Web to transact business. More
formally, it is digitally enabled commercial transactions between and among
organizations and individuals. Digitally enabled transactions include all
transactions mediated by digital technology. For the most part, this means
transactions that occur over the Internet and the Web. Commercial transactions
involve the exchange of value (e.g., money) across organizational or individual
boundaries in return for products and services. Exchange of value is important for
understanding the limits of e-commerce. Without an exchange of value, no
commerce occurs.
 Models of E-commerce

Business to Consumer (B2C), E-commerce

While the term e-commerce refers to all online transactions, B2C stands for
"business-to-consumer" and applies to any business or organization that sells its
products or services to consumers over the Internet for its own use.

Business to Business (B2B), E-Commerce

The boom of Business to Consumer (B2C) Internet businesses has helped bring
about another common physical business into the fold of online services, that of
business to business E-Commerce (B2B). B2B Commerce is quickly becoming an
intriguing and lucrative business in the Internet world, as many B2C online
businesses are expanding into the B2B world as well.
 Information Security
Information security means protecting information and information systems
from unauthorized access, use, disclosure, disruption, modification, perusal,
inspection, recording or destruction.

Key concepts
For over twenty years, information security has held confidentiality, integrity
and availability (known as the CIA triad) to be the core principles of
information security.
In 2002, Donn Parker proposed an alternative model for the classic CIA
triad that he called the six atomic elements of information. The elements are
confidentiality, possession, integrity, authenticity, availability, and utility.
 Security controls
Security controls are safeguards or countermeasures to avoid, counteract or
minimize security risks.
, they can be classified by several criteria, for example according to the time
that they act, relative to a security incident:
Before the event, preventive controls are intended to prevent an incident
from occurring e.g. by locking out unauthorized intruders;
During the event, detective controls are intended to identify and characterize
an incident in progress e.g. by sounding the intruder alarm and alerting the
security guards or police;
After the event, corrective controls are intended to limit the extent of any
damage caused by the incident e.g. by recovering the organization to normal
working status as efficiently as possible.
 Research Methodology
Research in common parlance refers to search for knowledge. Research is an
academic activity and as such it is used in a technical sense. According to Clifford
Woody, research comprises defining and redefining problems, formulating
hypothesis or suggesting solutions, collecting, organizing and evaluating data,
making deductions and research conclusions to determine whether they fit the
formulating hypothesis.

Objective:-
Quantitative market research report carried out on e-commerce and traditional
trade. It is to determine:-
People's expectations regarding e-commerce.
People's expectations regarding traditional trade.
Whether people do prefer e-commerce or traditional trade.
 Details of the Survey Conducted
 
Sample Size 100
Sampling Units Residents of Urban area
Area Covered Urban Lucknow
Sampling Convenient Sampling
Type of Questionnaire Structured Likert Scale
Type of Questions Close ended Questions

TITLE OF STUDY:-
A survey on customer preference of e-commerce vs. traditional commerce.
 
DURATION OF STUDY:-
The study was conducted from 15 October 2010 to 30th November 2010.
 SOURCES OF DATA COLLECTION

A.PRIMARY DATA:-
Primary data was collected from the sample size of 100
respondents. It was collected through a framed
questionnaire consisting of the questions that capture
the essence of research objective

B. SECONDARY DATA:
Secondary data was collected by:
Previous researches
Direct contact with respondents
Their suggestions
Personal observation
 Data Analysis and Interpretation
Q1. Educational qualification.

INTERPRETATION: It is
found that out of 100
Respondents, 42% have
Graduation, 31% have
Professional education, 14%
Post Graduation, 3%
Secondary, and 10% Higher
Secondary.
Q-(2)-Do you trust online trade?

INTERPRETATION:
42% of respondents were
confident enough of shopping
online, 23% of them agreed that
they do not at all trust online
shopping. Out of 100
respondents 14% were very
confident and only 23% said
that they keep being careful
while shopping online.
Q-(3)-Have you ever made any purchase, online?

INTERPRETATION:-
Out of 100 respondent
43% said that they never
made any online
purchase, 57% of them
agreed that they did
shop online but on a very
websites
Q-(4)- What could a website offer to stimulate you to purchase on the Internet
rather than in a traditional shop?

INTERPRETATION:-
Out of 100 respondents 26% gave
weightage to convenience while
purchasing online, 30% of them
consider time saving an important
factor, 11% feel easy availability, 18%
consider Different choices provided to
them an important factor. 20% think
that more than one factor are
important when making purchase
online.
Q-(5)- On average, how often do you buy online?

INTERPRETATION:-
28% of respondents buy online once every week, 16% of them buy online once
every two weeks. In survey it was found that 23% of respondents purchase
online more than once every week, 13% of them make online purchase once a
month and only 20% responded that they buy online more than once a month.
Q-(6) - On which websites did you shops most?
(a)-futurebazaar.com (b)-Shopingindiatimes.com (c)-homeshop18.com (d) -
yatra.com (e)-others

INTERPRETATION: It is found that out of 100 Respondents, 36% visited

homeshop18 for online purchasing, 16% did online shopping on
futurebazaar.com, 14% have visited Shoping.indiatimes.com, 13% did shopping
on yatra.com and 21% on other websites.
Q-(7)- According to you what are the most important criterion when you buy
in a traditional shop?
(Please rank your answer from 1 to 5 and 1 is the most important 5 is the
least important)
INTERPRETATION:
In the survey it is found that the
respondents are buying in a
traditional shop, because of
product presentation. So out of
100 respondents 38% of them
have given 1st rank to the product

presentation factor. 21% favored price factor, 16% have ranked 1st to loyalty
system, 10% favoring quality of product, and 15% been favoring the payment
facility.
Q-(8)- According to you what are the most important criterion when you buy
online?
(Please rank your answer from 1 to 5 and 1 is the most important 5 is the least
important)

INTERPRETATION:-
In the survey out of 100
respondents 35% of them have
given 1st rank to the Payment
security factor. 21% favored On
time Delivery of product factor,

20% have ranked 1st to Price, 10% favoring quality of product, and 14% were
favoring the Possibility to get back in touch with reseller.
Q-(9)- How far are you willing to travel to shop in a traditional shop?

INTERPRETATION:-
Out of total respondents 57% of them said that they would travel less than 10
miles to shop in a traditional shop, 30% of them were willing to travel from 10

to 20 miles. In survey it was

found that 15% of respondents
will not bother travelling 20 to
30 miles to reach a physical
store, 12% of them would like
to travel 30 to 40 miles and
only 8% responded that they
would travel more than 40
miles to the traditional shop.
Q-(10)- In your opinion, what would be the most effective method of launching
a new electronics or informatics product?

INTERPRETATION:-
In the survey out of 100
respondents 37% of them
thought an e-commerce
website the most effective
method of launching a new

electronics or informatics product. 30% favored a discount shop, 33% said that
there should be combination of both i.e. an e-commerce site and a discount
shop.
 FINDINGS
Because of product presentation and loyalty system,
shoppers prefer to go to a traditional shop for
purchasing items.
About educational background of people surveyed it
can be said that most of were graduates and some had
professional qualifications.

Majority of the online shoppers visited homeshop18.com and

futurebazaar.com for online shopping.
Respondents consider different factors like on time delivery, price of the
product and payment security, important while purchasing online.
Contd…..

The most effective method of launching a new electronics or

informatics product would be through an e-commerce website.

Frequency of doing online shopping is still low in spite of major

technological advancements.

Convenience, time and money saving are the most explicit benefits

that shoppers get by internet shopping.