1 | Page Chapter One An Analysis of Indian Automobile Exports Dr. R.K.Sharma, Professor, Prestige Institute of Management and Research, Indore | Abhishek Singh Rajput, StudentPrestige Institute of Management and Research, Indore | Naman Jain, StudentPrestige Institute of Management and Research, Indore | Abhinav Shandilya, StudentPrestige Institute of Management and Research, Indore Abstract: The automobile industry has been growing at a phenomenal pace and markets are attracting investments of all kinds. The eagerness of market entry can be seen from the fact that all natures of collaborations, joint ventures and possibly all market entry strategies have been applied by foreign companies and can been seen and sighted in India. All this is for the sake of having a share in the pie of the hottest market among all the major emerging economies. The automobile sector was not always like this and has changed recently this call in for enquiry of its current status and future trend. The paper attempts to analyze the sector and put forth a platform for developing future course of action. INTRODUCTION India is among the top two-wheeler exporter in the world and it has emerged as a key manufacturing hub for two-wheeler in the world. Two-wheeler exports are driving the
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1 | P a g e
Chapter One
An Analysis of Indian Automobile Exports
Dr. R.K.Sharma, Professor, Prestige Institute of Management and Research, Indore | Abhishek
Singh Rajput, StudentPrestige Institute of Management and Research, Indore | Naman Jain,
StudentPrestige Institute of Management and Research, Indore | Abhinav Shandilya,
StudentPrestige Institute of Management and Research, Indore
Abstract:
The automobile industry has been growing at a phenomenal pace and markets are attracting investments of all kinds. The eagerness of market entry can be seen from the fact that all natures of collaborations, joint ventures and possibly all market entry strategies have been applied by foreign companies and can been seen and sighted in India. All this is for the sake of having a share in the pie of the hottest market among all the major emerging economies. The automobile sector was not always like this and has changed recently this call in for enquiry of its current status and future trend. The paper attempts to analyze the sector and put forth a platform for developing future course of action.
INTRODUCTION
India is among the top two-wheeler exporter in the world and it has emerged as a key
manufacturing hub for two-wheeler in the world. Two-wheeler exports are driving the
Gravity
automotive industries‘ export in India apart from auto component. In the automobiles
exports, two-wheeler constitutes over 60% of the exports.
The two-wheeler industry consists of three segments mopeds, scooters and
motorcycles. The high demand for Japanese-designed Indian motorcycles is the main
factor propelling the export of the two wheeler industry. In addition to these three
segments there is a segment called step-thrust. Step-thrust are small motorcycles
driven and gears. Step-thrust start from 49cc and can go up to 90cc. Both 2 stroke and
4 stroke step-thrust are manufactured. The global two-wheeler industry is currently at
more than 40 million units per year. By 2017 the size of the industry is expected to
touch 60 million units. China is the largest producer with more than 17 million units,
and India is in the second place with 7.7 million units. The Japanese brands of Honda,
Suzuki, Yamaha, and Kawasaki dominate the world market. Though Japan itself
produces only 7 million units its brand control 50 percent of the two wheelers
produced in the world. This is because its brand dominates in the low cost countries
like china, India, Indonesia and Thailand. Honda has 30% of the world market while
Yamaha and Suzuki have another 20% between them. Till recently Japan was
dominating the global two-wheeler markets. In 1983 Japan was exporting 2.6 million
motorcycles. The majority of Japans two-wheeler exports were expo exported to
North America and Europe. In terms of size the major portion of around 1 million units
was in the above 250 cc segment. In the 51-125 cc segments Japan exported only
124,335 units and in the 125-250 cc its exports were 183,980.Currently China exports
more than 2 million units per year. The biggest Chinese manufacturers are Zongshen
group, Qingqi, Jialing and Hangzhou Lifang. In comparison, exports of Indian two-
wheelers are 0.63 million but growing at around 31 per cent. China and India are
expected to dominate the global two-wheeler market in the future. Recently, Indian
motorcycle manufacturers have built a slight edge over the Chinese manufacturers in
the exports markets, especially in Sri Lanka and other countries like Africa and Latin
An Analysis of Indian Automobile Exports
3 | P a g e
America. This is due to the high quality and performance of Indian motorcycles. It is
reported that in Sri Lanka the ratio of Chinese motorcycles to Indian motorcycles has
shifted from 90:10 to 15:85.
From a very modest beginning, the Indian passenger car industry has come a long way.
The industry has the presence of global players like General Motors, Ford, Suzuki,
Toyota, Mitsubishi, Honda, Fiat, Hyundai, Daimler Chrysler, Skoda, Nissan, BMW
and Renault. MNCs are widening their product portfolio, which will further intensify
competition. This also marks the next phase of the Indian auto industry after the
sector was opened up.
Looking back, the passenger car industry in India has marked five phases:
Phase I (upto 1984) Regulated and restrained
market
Phase II (1985 to 1992) Exploring new technology
Phase III (1995 to 2000) Hurried entry of world players
Phase IV (2001-04) Market maturing with intense
competition
Phase V (2005 and after) Globalisation.
The Indian automotive sector has come a long way and has tasted, globalization and
its effects. It is very necessary to understand the future for creating policy and
strategies to enhance global market share and to eventually achieve a global
competitive advantage. An attempt has been made to describe the current trend and to
analyse the future.
Gravity
Review of Literature
Indian Automobile industry has been growing rapidly over the years, both in the
domestic market as well as in the export market. Starting in 1940s, it has come a long
way, particularly after the liberalization, and now making aggressive inroads in the
global market, with acquisitions, green fields and exports. Nearly all OEMs and Tier 1
suppliers have established operations in India and are buying from Indian auto
components manufacturers, not only for Indian operations but also for evolution. The
industry has a great future potential and ACMA, SIAM, and the Government of India
have come up with automotive Mission Plan, 2016, for the sector. However, it needs
heavy investment in research and development, for meeting the challenges of the
global automobile sector (Pillani 2008). For Indian-owned automobile companies,
since the mid-1990s the R&D efforts got a major push due to the imposition of
stringent Euro norms requiring a quick up gradation of engine, and the intense market
competition. After 1991 with FDI liberalization many global tier-1suppliers started
operations in India. In the mid-1990s many global OEMs entered India; besides, they
have encouraged their existing preferred suppliers to establish facilities here. Since
around 2000 in the Indian automobile sector the improvements in safety features and
pollution norms, and the introduction of telematics, etc., have involved technological
improvements and imports (SIAM officials, quoted in Singh, 2007). At present, almost
all the prominent firms in the Indian auto component industry have links with at least
one international player - operating as a subsidiary/JV or in a technical tie-up (Singh,
2007). McKinsey & Company (2006) found that in India and China the large auto
component suppliers have improved their operational performance over 2002–04 in
terms of the rejection rates and productivity. The quality maturity is the most critical
differentiator, being strongly related to both the domestic and exports growth rates.
The best performers‘ quality levels are comparable with their TRIAD counterparts.
Although there have been increasing incidents of global OEMs shifting more and more
An Analysis of Indian Automobile Exports
5 | P a g e
of the product development responsibilities to developing countries, in India R&D
intensity of foreign affiliates has been relatively low in the vehicle sector (Narayanan
and Vashisht, 2008; Singh, 2007). For the auto component firms (Rasiah and Kumar,
2008) in an econometric analysis found similar R&D intensity—average of R&D
expenses to sales and R&D employment intensity—for foreign and local firms. In the
auto sector the R&D is still primarily oriented towards process development. The
government should particularly facilitate the strategic-asset seeking OFDI, as is being
done in China. While the OFDI regulations have been liberalized in India, a focused
policy is required to strengthen the multinational operations of Indian firms, with
targeted national champions being supported through information, finance and other
support services (Pradhan, 2008).
Objectives:
The major objective of the research is to analyze the course of Indian automobile
industry with special reference to two wheeler and passenger car segment and forecast
the future ahead.
Hypothesis:
Ho1 : The course of Indian Automobile sector with reference to two wheeler and passenger car
segment has been positive.
Ho2 : The future is positive.
Research Methodology:
The universe of research shall confine to passenger car segment and two wheelers. The
research is descriptive in nature and shall be based on secondary data. The data is
purchased from the library of IIM Indore and NASDOC, ICSSR,New Delhi. The source
Gravity
of tables has been stared questions in lok sabha and other government agencies
supplied through India Stat and CMIE Business Beacon. The well tabulated data was
administered with descriptive statistics and results were generated.
Results
a) Passenger Car:
With about 13 existing players in the passenger car segment, the total installed
capacity is of the order of over a million and a half vehicles. The capacity utilization
was as high as over 85% in 2006-07. Total investment by the car companies is
estimated at around Rs 175 bn with related component makers chipping in another Rs
50 to 60 bn. The scale of operations of Indian car plants is now beginning to match
with the world standards. The average capacity of a typical Indian car producer
exceeds 100,000 units a year. It is 250,000 in Japan and the US; 125,000 in Brazil and
175,000 in South Korea. Volumes of 100,000 to 150,000 are considered viable. There
was a noticeable slowdown in demand towards the end of 1990s. The beginnings of
the new century witnessed a revival in demand. The quinquennium 2002-2007, in fact
witnessed on an average a CAGR of 17.8%, much above the Indian industry. Total
market of passenger cars was estimated at Rs 476 bn. in 2007-08 which means an
increase of 12% over that of the preceding year. The car sales in 2007-08 including
exports was 1.5 mn vehicles, about 18% increase on the preceding year's car sales of
some 1.25 mn units.
A new trend in the passenger car market is the exchange schemes launched by car
makers. Besides there is the emergence of pre-owned cars market. In 2006-07, an
estimated 12.5% of all car sales were achieved through exchange of old models on the
back of brand loyalty. Maruti has been a major beneficiary selling reportedly 76,500
An Analysis of Indian Automobile Exports
7 | P a g e
cars under the scheme. Others benefiting include Hyundai (16%), GM (8 to 10%) and
Honda (6%).
The sale of pre-owned (or second hand) cars has caught on. Not only Maruti which
sold 84,500 cars through its 'True Value' chain of marketing outlets, even global majors
like Porsche (40 cars) and Bentley have also joined the bandwagon. Nearly 20% of the
pre-owned market is organized. Some 60% are sold by individuals through word of
mouth, while 20% of the market is controlled by brokers.
The passenger car market was segmented in mid 2008-09 as against 2006-07 as
follows:
Table 01
2006-07 Mid-2008-09
Premium and luxury 0.40% 0.80%
Executive segment 3.20% 2.60%
Mid-size 17.20% 20.30%
Small and compact 79.20% 76.30%
Source: India Stat.Com
It is obvious that the market continues to be overwhelmingly skewed in favor of low-
end (priced) cars. The share of the executive segment, however, has nearly doubled in
the last few years, thereby cutting into the market share of other segments.
Luxury car market segment, which clocked sales of 2500 units in 2006-07, aims to sell
4000 to 5000 units in 2007-08. Besides the vehicles manufactured in India, Bentley,
Gravity
Rolls Royce, Lamborghini and Audi are in the Indian market through imports, albeit in
small numbers. Audi, however, has created an assembly facility at Skoda plant at
Aurangabad in Maharashtra, which was to be fully operational by September 2007.
Individual buyers, mostly small entrepreneurs, outnumbered corporate to form a
significant chunk of the car buying population. Several car buyers come from
information and service companies. Individual buyers constitute over 70% of the total
demand today, overtaking corporate buyers, who traditionally represented around
60% of total demand some years back.
Against all the boost that marked the growth of the passenger cars segment, the
economic slowdown, leading to a stagnation and recessionary conditions in the USA
and other developed countries caused a gloom in the industry not only in India but
world over. Against the growth of 14% in 2007-08, the first half of 2008-09 witnessed a
slowdown with only 5.30% growth against nearly 13% in the first half of the preceding
year. The segment received a severe setback with the sales registering a decline in
October 2008. In November 2008, the decline was more than 19%.
The industry is now hoping that the measures undertaken by the Government to offset
the effects of economic meltdown worldwide might salvage the falling trend. The signs
at least in the short-term are not propitious.
There is a surfeit of new models and new innovations. Leading brands of cars in India
now include: Maruti 800, Esteem, Omni, Zen Estillo, Swift, SX4, Alto Wagon R, Opel
Astra, Opel Corsa, Chevrolet Optra, Aveo, Aveo UVA, Spark, Mercedez, City, Civic,
Accent, Accord, Sonata, Santro, Indica, Fiat Palio, Sienna, Lancer, Ford Ikon. Ford
tried with Mondeo, while GM's Swing made some healthy waves in its segment.
Skoda introduced Octavia, and has followed with Superb and Fabia to strengthen its
presence.
An Analysis of Indian Automobile Exports
9 | P a g e
Volvo is entering with its passenger cars on the back of Ford India, whose US parent
owns the Swedish company's car business, globally. It plans to introduce high-end
Volvo cars in India, such as a its C30 and C70 cars which have a common platform
with Ford's Focus, slated for an Indian launch next year (2008). However, it is to make
its debut in India with its S80 Sedan and SUV XC90 later in 2007 itself. These are
priced Rs 4 mn and Rs 6 mn, respectively, and would be wholly imported.
Incidentally, platform sharing is common in the premium and executive segments of
passenger cars. This segment grew by around 50% in 2006-07 to over 44000 units. The
segment among others is targetted by DaimlerChrysler, BMW, Audi and Porsche.
Others like GM, Honda and Hyundai, besides, Toyota have a very significant presence
in the segment.
The mid-sized segment with a share of over 17%, witnessed a lot of activity in 2007.
Renault-Mahindra's Logan, Maruti's SX4 were both introduced in April-May.
Hyundai is to roll out a new sedan in second quarter of 2007, besides its Getz Prime
already in the market and Honda in late 2008. Of the 50 new launches expected, nearly
half are expected in the mid-sized segment to take on Esteem, Indigo, Honda City,
Hyundai Accent and Verna, Ford Ikon and Fiesta and Chevrolet Aveo. Most of these
are priced between Rs 5 & 8 lakh. Fiat has also launched Fiat Stile, the maiden offering
from its new plant.
Given the potential, most players in this sector are introducing new models to lure
buyers. As the players multiply, the Indian consumer has a plenty of variety and choice
in the mid-size and small segment. Although small car category continues to be
dominated by Alto, Santro and, Indica, the segment would offer the consumer the
choice of pick and choose with new offerings.
The entire car market was likely to witness a fair amount of churning following the
Tata Motors 100,000 rupee car slated for a 2008 foray. As the project got delayed, the
Gravity
change was yet to unfold itself. With nearly 20 more new compact models likely to
flood the market by 2010, the market will be more crowded than ever before. Besides
GM's Spark, Honda's Jazz, Tata-Fiat's Gravede Punto and Volkwagen's Polo are likely
to be a part of these new forays. This is likely to impact two-wheeler's market. It is
expected that 10-15% of the two-wheeler market will switch over to four-wheelers.
The size of the entry-car market is likely to increase by 2 to 3 times, which will ensure
that both Maruti and Tata Motors could co-exist along with new entrants.
Honda Motor Company (HMC) was planning to launch a small car through its
subsidiary Honda Seil Cars India (HSCI), by 2010. The car is expected to take on
Maruti Swift, Hyundai Getz, Fiat Palio, General Motors UV-A and when launched,
Volkswagen Polo. Honda is planning to launch new version of premium sedan Accord
following a planned facelift in 2007. The company has plans to increase the production
capacity to 100,000 units by the end 2007, from the existing 60,000 at its Greater
Noida facility. The plant produces City, Civic and Accord brands of cars. Rajasthan
state is the likely site for its second car-making facility to take on the production of its
proposed range of hatchback models, including the small car offering Jazz.
Tata Motors and Fiat had agreed on entering into a joint venture to make cars and
engines at a proposed investment of Rs 40 bn. While the annual capacity for cars
would exceed 100,000, the plant will also have a manufacturing capacity for 200,000
engines. The production was slated to start towards the beginning of 2008. The
venture located at the Fiat plant at Rajnangaon in Maharashtra, will also produce Fiat
Grande Punto and the Linea for Indian and overseas markets. As a follow up to the
introduction of the entire Mercedes Benz line to India, DaimlerChrysler is
contemplating to bring in its Chrysler range of vehicles as well.
Hyundai as well is eyeing the sub-compact car market in India by bringing in the
800cc model produced by its sister concern, Kia Motors Corporation of South Korea.
An Analysis of Indian Automobile Exports
11 | P a g e
This small car is likely to be priced below Rs 200,000 and possibly as low as Rs
160,000 to 170,000, slated to be rolled out in 2008-09.
Maruti launched its Zen Estilo, priced about Rs 10,000 lower than the entry level of its
older version of Zen. The company continues to be a leader in the segment. Maruti
launched SX4 Sedan in May 2007. It is a replacement vehicle for its Baleno which was
phased out in early 2007. SX4 is the second of Suzuki's global models after Swift. The
third, the grand Vitara, a SUV, would make its debut in the next few months. Maruti
has a 14.8% share in A-3 segment where SX4 is grouped. However, it is much lower
than its share in A-1 and A-2 segments at 100% and 58%. The company launched A-
Star towards end of 2008-09 and Ritz in the middle of 2009-10. Both have been
received well in the market. It had earlier introduced diesel version “Dzire' of its
Swift as a Sedan, which is also doing well.
Volkswagen had been planning to assemble Passat as its maiden offering at its
subsidiary, Skoda Auto India's plant at Aurangabad mid -2007. The car maker has also
finalised plans to set up a manufacturing facility at Pune with an investment of Rs
2,450 mn (USD 530 million). While Skoda is best-known in India for its Octavia,
Fabia, Superb and Laura, other brands for which it has marketing arrangements in
India, include Bentley, Bugatti, and Lamborghini.
BMW make an entry with its top-of-the-line 7 series stables into the Indian market.
The debut marked the introduction of two 3-Series cars â€― 320i and 320d, with price
tags in the Rs 25 mn range. Additionally, it has four models from its 7-Series stables
â€― 730ld, 74li, 750li, 760li for sale through direct import route to be imported as fully
built units and sold in India in the Rs 8 mn range. BMW group is investing Rs 11000
mn to build an assembly plant in Chennai. It is targeting an annual sale of 150,000
units of BMW, Mini and Rolls Royce cars in the Asian markets by 2008.
Gravity
Diesel cars have increased their market share to over 30% from the earlier 20% in the
two years. Hyundai Verna, Maruti's Swift (which remains the most sought after diesel
car), Chevrolet Aveo and Hyundai's Getz and Sonata which will have diesel variants
shortly, are in the forefront of the diesel push. Of the cars sold under Fiesta and Verna
brands, 70% to 80% are said to be diesel versions.
GM was planning a diesel version of Optra after the success of its CNG variant, along
Fabia from Skoda Auto, while Tata Motors, has introduced CRDi version of its Indigo
Sedan. Likewise, M&M Renault's maiden offering Logan is also a diesel variant.
The government, which had a major stake in this industry, has divested from Maruti
Udyog. A public issue was very successfully made. Suzuki is now in full control,
although very little has changed in the management style and systems.
Since mid-2006, the D segment has been marked by great launches by all those who
matter in the Industry, not only in India but globally. Honda Civic entered into Indian
market in July 2006. With its entry, the highly competitive entry-level D-segment has
got revamped. Honda City in premium C-segment and Honda Accord in Upper D-
segment along Civic, present a very impressive range from the car maker. The launch of
a new variant of Corolla in Japan, which would find its way to the Indian market, may
improve on Toyota's performance in the market in respect of passenger cars, as earlier
the sales were 20% down. Skoda's Octavia in the segment is going high on its diesel
variant.
As indicated, Volkswagen is entering into the premium segment Passat to be
assembled at Skoda Plant slated for mid 2007. A new plant is coming up at Pune which
would roll out Polo hatchback and notchback in 2009. Its plans cover production of
mid-sized Jetta in India. It is however, building market on imported cars like Touareg
and Phaeton in India.
An Analysis of Indian Automobile Exports
13 | P a g e
GM launched Chevrolet Spark (April 2007) to take on Alto, Zen Estilo, Wagon R and
Santro. The car is based on Daewoo's Matiz platform adequately modified to give a
different look. Earlier, it had launched Aveo UVA. The company aims to capture 10%
market share by 2010. It has set a target for sale of 40,000 small cars in 2007-08. In
2003, following listless performance of its Opal series, it came with Chevrolet brands
(Tavera-SUV, Optra). Spark now being made at Halol, would eventually be
manufactured at GM's Talegaon (Maharashtra) plant which is coming up with a
capacity of 140,000 units to take GM's overall Indian capacity to 225,000. GM also
launched Optra Magmun in June 2007. It is a product from GM-Daewoo in Korea.
Nissan Motor India, which had launched its SUV X-Trail in 2004, is into the
passenger cars segment with Teana launched in early 2007 and is to compete with
Honda Accord and Toyota Camry. Teana is expected to register sales of 350 units a
year. It is a 2.3 litre capacity passenger car. The company has plans to foray into small
and compact car segment following the entry of GM's Spark. It is setting up a plant
facility at Chennai jointly with Renault and Mahindra & Mahindra and the facility is
expected to be operational in two years.
Total market of passenger cars was estimated at Rs 476 bn in 2007-08, which meant
an increase of 12% over that of the preceding year.
b) Two Wheelers
The Indian two-wheeler has witnessed steady growth over the years. On an average
Indian two-wheeler exports have increased by about 1, 00,000 units every year since
2001-02. But the growth rate from 1995-2001 in not quite impressive. Due to the joint
venture agreements between Indian motorcycle manufacturers and Japanese
manufacturers exports of motorcycles from these joint ventures were low. During this
period the average number of two-wheelers exported was just over 1, 00,000 units.
Motorcycles are the major contributor to the total two-wheelers exports. Table 2 gives
Gravity
details about the growth of exports of two-wheelers in India over the period 2001-02
to 2010-11. From 2001-02 to 2005-06 all three segments registered a significant growth
rate. Among the three segments motorcycles have witnessed tremendous growth. In
the financial year 2001-02 motorcycles accounted for about 50% of the total number of
two-wheeler industries exports and now in have increased to a mammoth 88%. In the
year 2005-06 most of the exports were accounted for by the smaller engine capacity
bikes of between 75 cc to 125 cc. This segment accounted for 70 per cent of motorcycle
exports in the last fiscal followed by the 125 cc to 250 cc segments, which accounted
for 29 per cent of sales. in the year 2005-06 Bajaj Auto exported 165,288 units with
An Empirical Analysis on Consumers perception of Selected
Malls in Indore City of Madhya Pradesh
Kanika Shrama, StudentPrestige Institute of Management and Research, Indore Naina Pancholi,
StudentPrestige Institute of Management and Research, Indore | Anupam Dubey, StudentPrestige Institute
of Management and Research, Indore | Nishant Joshi, Assistant Professor Prestige Institute of Management
and Research, Indore
Abstract:
Consumer perception is centred around the buyer of product and consumer of a service, who gets influenced by the value created by marketers in their products and services (Laura). Consumers act and react on the basis of their perceptions, not on the basis of objective reality. For each individual, reality is a totally personal phenomenon, based on that person‘s needs, wants, values, and personal experiences. Thus, to the marketer, consumers‘ perceptions are much more important than their knowledge of objective reality. For if one thinks about it, it‘s not what actually is so, but what consumers think is so, that affects their actions and their buying habits. And, because individuals make decisions and take actions based on what they perceive to be reality, it is important that marketers understand the notion of perception and its related concepts to determine more readily what factors influence consumers to buy (Schiffman, Kanuk and Kumar).Indore city in the state of Madhya Pradesh has been reffered to as financial capital of the state being so it also has attracted real estate developers to develop both residential and commercial properties. In the past 5 years Indore has seen some very big malls either operational or about to start their operations. With the population of around 35lacs and primarily being an agrarian economy, Indore has also become an educational hub thus, attracting a huge number of young professionals. Indore has also been able to retain these professionals in the city post completion of their professional education. Thus, the city has created a niche demand for malls which have been defined by Pearson Publications as, mercantile establishment consisting of a carefully landscaped complex of shops representing leading merchandisers; usually includes restaurants and a convenient parking area; a modern version of the traditional marketplace. This brings us to the
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
25 | P a g e
problem of what kind of perceptions do consumer have for a few selected malls, in Indore city. The study shall attempt to benefit real estate developers to make good design, shall benefit marketers and managers of industry to create an ambiance of ease at malls and shall be a pivotal guideline for future researchers. The nature of the study is exploratory based on primary data collected by a well structured schedule.
INTODUCTION
Consumer perception is centred around the buyer of product and consumer of a
service, who gets influenced by the value created by marketers in their products and
services (Laura). Consumers act and react on the basis of their perceptions, not on the
basis of objective reality. For each individual, reality is a totally personal phenomenon,
based on that person‘s needs, wants, values, and personal experiences. Thus, to the
marketer, consumers‘ perceptions are much more important than their knowledge of
objective reality. For if one thinks about it, it‘s not what actually is so, but what
consumers think is so, that affects their actions and their buying habits. And, because
individuals make decisions and take actions based on what they perceive to be reality,
it is important that marketers understand the notion of perception and its related
concepts to determine more readily what factors influence consumers to buy
(Schiffman, Kanuk and Kumar).
Madhya Pradesh often called the heart of India, is a state in central India. Its capital is
Bhopal. Indore is the largest city and is the commercial capital of the state. It is 190
kilometres, west of the state capital Bhopal. It has the population of 32.7 lakes (2011
census). It is surrounded by two major industrial areas namely- Pithampur and Dewas.
It is also turning into a educational hub having both IIM and IIT which is unique and
exists only in Indore in India. The city is also surrounded by rich agricultural belt,
which is one of the best in India. All the above causes high flow of money in the
markets making Indore one of the key and favourable destinations for big retailers,
Gravity
mall developers and realators. Thus, the city has created a niche demand for malls
which have been defined by Pearson Publications as, mercantile establishment
consisting of a carefully landscaped complex of shops representing leading
merchandisers; usually includes restaurants and a convenient parking area; a modern
version of the traditional marketplace. This also brings in the challenges of a strategic
model that matches consumer perception and tastes for attracting him to select a
specific mall for his shopping visits.
Review of Literature:
As the economy and society have changed, so retailers have responded and shopping as
an activity has altered enormously (Dawson and Boroadbridge, 1988). Retailing is one
of the most dynamic and rapidly changing sectors of Indian industry bearing little
comparison with the business that operated 50 years ago. Multiple retail companies
now dominate the sector, to the threat and decline of small independent business.
These independent stores face increased pressure from the multiple retailers,
superstores, small store format (such as high street stores), petrol forecourts and many
are being squeezed out of existence altogether. Even the wholesale symbol groups have
been developing their own store portfolio. Independents who ―enjoyed‖ over 80
percent of the market share till early 90‘s have seen this market share halve by 1995 to
just over 40%.
Organized retail has started to spread its roots in the Indian market since past one
decade and is gradually making mark among all sections of the society. This paper
explored the way organized retail has dramatically changed not only the Indian
traditional retailing structure by also the consumption behaviour. The consumption
behaviour was examined and results showed that, for consumers, the shopping mall or
variant of organized retail format is the preferred type of retail store, due to
convenience and variety,Mridula (2007). Nisa (2007) argued that India is one of the
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
27 | P a g e
largest emerging markets, with a population of over one billion. India is one of the
largest economies in the world in terms of purchasing power and has a strong middle
class base of 300 million. Around 70 per cent of the total households in India (188
million) reside in the rural areas, where mostly traditional retail outlets, commonly
called kirana stores exist. These are unorganized, operated by single person and runs
on the basis of consumer familiarity with the owner. However, recently organized
retailing has become more popular in big cities in India and most of the metropolitan
cities and other big cities are flooded by modern organized retail stores. Many semi-
urban areas also witnesses entry of such organized retail outlets. Till now, entry of
foreign retailers was restricted in Indian retail market because of the ban on Foreign
Direct Investment in Indian Retail Sector. But recently, as government has changed its
policy and the cabinet has allowed 51 per cent FDI in single-brand retail, the prospects
of foreign players entering India became high. But there is also a powerful counter-
argument: each sector that has been opened to private investment, such as insurance,
banking, civil aviation etc. has grown. And the consumer has benefited every time. A
study by Luis Guasch (2002), Clive Harris (2003), and the McKinsey Global Institute
(2003) have shown that in almost all cases FDI had a largely positive impact on
productivity (the key criterion for assessing long-term economic performance) and on
the coverage of services. But ill-designed privatization processes, contracts, and
regulations have often led to poor returns on investments or, in some cases, to
excessive returns. The financial and infrastructure sectors are tricky to regulate as
quasinatural monopolies, but FDI is not to blame for government shortcomings. In
sectors where competition is stronger, FDI has had a much more obvious positive
impact. Shaw, Dawson and Blair (1992) found that most consumers buy many
products, and they operate in a pressured work environment with little time available
to evaluate, in formal way, detailed and subtle criteria. They therefore argued that
buyers use only a subset of product requirements (i.e., evaluative criteria) to decide
between different products and retailers when making actual purchasing decision.
Gravity
Although store choice has been researched extensively in literature, the format choice
has been a relatively limited area of work. The format choices have been studied for
Retail format evolution by Rousey and Morganosky (1996); Price format sensitivity of
shoppers and its impact on Shopping Basket Size by Bell and Lattin (1998); Bell,
Bucklin et al. (2000); Stability of Format Choices through comparison of inter and
intra format switching behavior and role of market conditions by Benito and Galego
(2005); Galata and Bucklin (1999); Perceived shopping utility of different Price
formats by Bell, Tang and Ho (2001), Effects of exogenous variables and pricing
formats on store choice by Fotheringham (1988), Kahn and Schmittlein (1989);
Timmermans (1997); Retail format competition by Bhatnagar and Ratchford (2004).
The concept of consumer perception, considered as the way consumers see the store in
their minds, based on tangible and intangible attributes, deserved a great deal of
academic and empirical attention, during the last four decades. The importance of
studying the image is based on the assumption that the store possessing the most
congruent attributes with the image desired by consumer will have better chance of
being selected and patronized (Martineau, 1958, Doyle and Fenwick, 1974-1975,
Amirani and Gates, 1993). Therefore, the consumer perception can be used as a
―marketing tool‖ (Engel et al., 1995), or as a ―competition tool‖ providing useful
indications to managers about the most and the least appellative attributes to
consumers, and therefore, the insights for the marketing mix conception.
Research Methodology:-
The research is exploratory in nature and the data used for the analysis is primary in
nature. The data was collected using a schedule based upon 5 point likert scale having
19 questions divided in 4 sections. Initially a pilot test was conducted on 80
respondents for checking the questionnaire. A total of 183 respondents were
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
29 | P a g e
administered with the schedule and responses thus generated. The data collected was
tested for reliability using the Cronbach's α test.
The data was then administered with descriptive statistics for initial understanding.
The data was then test for Kaiser-Meyer-Olkin Measure of sampling adequacy for
finding weather factor analysis is applicable or not. Upon test KMO the data was
tested with factor analysis and thus factors were generated which were then used for
model generation.
Results:
Upon initially applying descriptive statistics it was observed that 70 percent people in
Indore city are preferring malls over small retail stores. A majority of them are
purchasing from malls. It is also observed that 67 percent people feel alleviation in
their social status when they purchase from malls and big retail stores. They get
influenced by family members and close friends in selecting a mall which they wish to
visit. People do not mind whether brands available in these malls are Indian or foreign.
Location of a mall is a very important aspect and 72 percent people feel that it helps
them in selecting malls for shopping visits; they are hardly interested in the ownership
pattern. 71 percent people feel that amenities and convenience facilities available in a
mall influences them towards their selection of the mall for the shopping visit. This
also influences their repeat visits.
The data collected using a schedule was test for reliability using alpha test and the
reliability was found to be 0.674 which is reliable. The data was then tested with
Gravity
Kaiser-Meyer-Olkin and Bartlett‘s test. The Kaiser-Meyer-Olkin measure of sampling
adequacy tests whether the partial correlations among variables are small. Bartlett's
test of sphericity tests whether the correlation matrix is an identity matrix, which
would indicate that the factor model is inappropriate. Upon testing for Kaiser-Meyer-
Olkin the value of KMO came to be 0.7 (approx. after rounding off) this enables us to
finally decide that we can conduct factor analysis. Upon conducting explanatory
factor analysis we reduce 19 statements in 7 key factors namely Frequency Visits,
Preference of malls , Influence of Family, Influence of Friends, Owner Ship Pattern,
Seamless Malls and Free facilities to Kids of visitors.
The model that can be visualised out of the results generated by the analysis of data
could be as follows:
With the basic assumption that mall owners and retailers wish to increase foot fall a
possible model could be
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
31 | P a g e
Conclusion
The research has brought us to the conclusion that malls and big retail stores are
finding space amongst consumers of Indore city. The recent burst of Malls trying to
open in the city makes us think that in coming time consumer shall have more options
and thus, creating a Perfect Market. The challenge now lies on mall owners who wish
to increase the popularity of their malls. Focussing on these future challenges we have
come to a conclusion where we have identified 7 Key Factors which show dynamism
in such a fashion that six of them namely Preference of Malls, Family Influence,
Influence created by friends, Ownership Pattern, Seamless Environment and Free
Amenities and Facilities provided to kids of visitors act as independent Variables and
put effect on the Frequency of consumers visiting the mall on any given period of time
INCREASE THE FOOTFALL & RETENTION OF OLD CONSUMERS
Figure:01 Source: Conceptualised by authors
CREATE A SEAMLESS
ENVIRONMENT
Providing them, their families and Friends discounts, offers and
extra facilities
IDENTIFICATION OF
FREQUENT VISITORS
Gravity
we have formed a qualitative preliminary model to increase the footfall and retention
of old consumers which is as follows:-
The mall owner/Developer/Builders should continuously carryout surveys to identify
frequent visitors in their malls it is proposed that these identified visitors should be
contacted and a database of their family members and friends who are close to them
should be collected. Our Research resulted that around 70% of people are influenced
by Family and Friends thus, creating a database and targeting these family members
and friends shall help influencing the existing customer to revisit the mall and shall
attract new consumers because we can use the technique to create a snowballing
database where each new consumer can possibly attract some more consumers. We
can further provide these frequent visitors their families and friends discounts offers
and Extra facility About 72 percent of people who are part of our respondents felt
comfortable with a seamless environment in malls, which if created along with the
other two activities namely Frequent Visitors identification requiring extra facilities
to family and friends of these visitors shall certainly put an effect in the increase in
footfall and retention of old customers.
Limitation:
The research has been conducted with a small sample and should be conducted at a
larger scale for more conclusive and comprehensive results. The model generated is
still qualitative and a more quantitative and advanced version of the model along with
its testing needs to be generated.
References
Bell, David R., Randolph E. Bucklin and Catarina Sismeiro (2000), "Consumer Shopping Behaviors
and In-Store Expenditure Decisions," Working Paper, Anderson School at UCLA
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
33 | P a g e
Benito, O., Muñoz-Gallego, P. A., & Kopalle, P. K. (2005). Asymmetric competition in retail store
formats: evaluating inter- and intra-format spatial effects. Journal of Retailing, 81(1), 65–79.
Bentler, P. M., and Speckart, G. (1977). Models of attitude-behavior relations. Psychological Review,
86, 452–464.
Bhatnagar, A., & Ratchford, B. T. (2004). A model of retail format competition for non-durable goods.
International Journal of Research in Marketing, 21(1), 39–59.
Fotheringham, Stewart (1988), ―Market Share Analysis Techniques : A Review and Illustration of
Current US Practice‖ in Neil Wrigley, Store choice, Store Location and Market Analysis, London,
Routledge, 120-159
Kahn, Barbara E. Schmittlein, David C (1989), ―Shopping Trip Behavior: An Empirical Investigation‖,
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
37 | P a g e
Gravity
Component Matrixa
Component
1 2 3 4 5 6 7
VAR00001 .406 .203 -.098 .329 -.105 .547 -.003
VAR00002 .416 -.163 -.047 .566 -.070 -.329 .133
VAR00003 .376 .138 -.237 .393 .159 -.069 -.374
VAR00004 .405 .202 -.441 .186 .003 .274 -.021
VAR00005 .242 .556 -.073 -.078 .396 -.165 .128
VAR00006 .203 .545 -.183 -.364 .146 -.078 .107
VAR00007 .521 .475 -.114 .021 .097 -.172 -.110
VAR00008 .001 .624 .360 -.128 -.297 .169 .012
VAR00009 .451 .047 -.172 .097 -.461 .041 .344
VAR00010 -.099 .433 .428 .023 -.498 .048 .053
VAR00011 .026 .188 .638 .254 .293 -.157 -.238
VAR00012 .600 .068 .009 -.437 -.051 -.284 -.080
VAR00013 .707 -.133 .167 -.162 -.095 .074 -.138
VAR00014 .414 -.272 -.100 -.439 .200 .301 .035
VAR00015 .578 -.054 .299 .078 .044 .117 -.181
VAR00016 .503 -.214 .050 -.013 -.252 -.442 .129
VAR00017 .368 -.339 .308 -.103 .056 .238 -.300
VAR00018 .477 -.430 .210 -.058 .024 .003 .302
VAR00019 .148 .068 .337 .185 .473 .168 .629
Extraction Method: Principal Component Analysis.
a. 7 components extracted.
39 | P a g e
Chapter Three
Gauging Service Loyalty among Banking Consumers of Indore
City
An Exploratory Research
Sonam Motwani, StudentPrestige Institute of Management and Research, Indore | Mehek
Malhotra, StudentPrestige Institute of Management and Research, Indore | Sandeep Gehi,
StudentPrestige Institute of Management and Research, Indore |Nishant Joshi, Assistant
Professor, Prestige Institute of Management and Research, Indore
Abstract:
Indore is one of the fastest developing cities in India.The development brings in lot of investment and money which calls for good banking services. This can also be seen as an opportunity for banks and bankers to grow there size and operation by increasing loyalty among consumers. There has been a gap between bankers‘ perception and consumer expectations. Historians are divided on the derivation of the word ‗bank‘. One school of thought believed that the word bank was derived from the word ‗babcus‘ or ‗banque‘ which meant a bench. During the ancient period early bankers and Jews in Lombardy transacted their business on benches (known as ‗banco‘ in local parlance) in the market places. They were accepting deposits and lending money (Shridharan and Mathews). Section 5 (3) (b) of the banking regulations Act, 1949, defines banking as the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Thus banking has characteristics such as; Intangibility, catalyst, is a link between lender and borrowers and does distribution of risk which basically fall in the preview of service. In words of Berry service are deeds, processes and performance which are intangible but may have a tangible component these are produced and consumed at the same time. The study attempts to explore this gap using the service loyalty scale developed by Clement, Sudhahar, Duraipandian Israel, Britto & Selvam,so that a normative research can be conducted in order to provide benefits to consumer, bankers, researchers and policy makers. The research is exploratory in nature. Primary data is collected from the field using a schedule and appropriate statistical analysis is conducted to test various hypotheses
Gravity
Introduction
Indian banking has been divided in three eras namely; pre-nationalisation,
nationalisation and post liberalisation. The first known systematic banking practice
was started in 18th & 19th century by east India Company in Calcutta and Bombay.
Over the three eras Indian banking consumers have always felt the need of good
quality services. Till the post liberalisation era the services were not playing a major
role since the choice of banks were limited with consumers. With liberalisation
coming into all sectors and private banks coming into the scene services became a very
important factor for customer retention and addition of new customers.
Madhya Pradesh is a central Indian state popularly known as the heart of India.
Primarily and agrarian state, the economy of states has both the facets of agriculture
and industry .still it won‘t be wrong to state that Madhya Pradesh is a largely agrarian
economy. about 197 kilometres from west of Bhopal which happens to be the capital of
Madhya Pradesh lies Indore a city which is a perfect blend of high quality agriculture
surrounded by two very big industrial areas namely Pithampur and Dewas . Indore is
the commercial capital of Madhya Pradesh and one of the fastest developing cities in
India .The development brings in lot of investment and money which calls for good
banking services. This can also be seen as a opportunity for banks and bankers to grow
their size and operations by increasing loyalty among consumers.
There has been an observed gap between bankers perception and consumers
expectation. To bridge this gap there is a requirement of studying key factors that
influence banking services. Indore being the commercial capital of Madhya Pradesh
provides laboratory like conditions where a comprehensive research can be conducted
to generate a generic model for creating and sustaining service loyalty.
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
41 | P a g e
Review of Literature
R.K Uppal (2010) analysed the trends and growth of the retail portfolio of various
bank groups between 2007-2008 and found the need of more customer oriented
service and suggested that advance technologies could be used to capture remote area
customers, skilled manpower, market research in intelligent ways, credit quality
techniques, universal banking and human factors delivering banking service to
customers. All the above strategies were felt because of gap between perceived services
and services provided existence. Bell (2001) the banking industry has shown
tremendous growth in volume in complexities during the last few decades. Despite
making significant improvement in all areas relating to financial viability, profitability
and competitiveness, there are concerns that banks have not been able to include vast
segment of the population, specially the under-privileged sections of the society into
the fold of basic banking services. Internationally also efforts are being made to study
the causes of financial exclusion and designing strategies to ensure financial inclusion
of the poor and disadvantaged. The reason may vary from country to country and
hence the strategy could also vary but all out efforts are being made as financial
inclusion can truly lift the financial condition and standards of life of the poor and
disadvantaged. Benvensite, Busaba, and Wilhelm (2001) proposed that proper flow of
information shall enable banks to become closer to their consumers which shall the
volume and return of these institutions, the same been approved by Barth, James,
Gerard Caprio and Ross Levine, 2001.Before 1983, the definition of quality was defined
primarily based on the concept of quality control with corresponding standards
focused completely on achieving quality. While Juran defined quality as "suitable use",
Crosby defined it as "consistent with needs", and assumed the existence of
correspondence between quality and operational standards. Later, it was realized that
the service industry requires a broader definition of quality than that used by the
manufacturing industry. In the concept of Parasuraman, Zeithml, and Berry (1985),
Gravity
which was further expanded by Zeithaml (1988), consumers‘ assessment of service
quality by employing both interior and exterior attributes of low-level production
quality or service quality were emphasized. Such process passes through an internal
united comparison, and proceeding to establish a higher level of perceived service
quality among the consumers. In the recent years, service researches have revealed a
variety of customer-based improvement strategies based on the specific service
elements, suggesting action plans for different service requirements that demand
managerial action. Results of these studies have facilitated in competitive positioning
of those service components which are directly tied to the organization's success. The
present study is an endeavor to evolve a truly customer-centric service system based
on customers‘ assessment of service quality.
From the customers‘ perspective, service quality significantly influences customer
satisfaction and customer satisfaction has direct influences on purchase intentions.
Research findings indicate that service quality influences purchase intentions more
than does customer satisfaction. It is therefore imperative on the part of bankers to
stress upon both service quality and customer satisfaction, in order to raise the
purchase intentions of customers. The empirical results of the present study may
therefore provide improved insights on banking service as it seeks to simultaneously
analyze service quality and customer satisfaction.
The customer satisfaction paradigm posits that confirmed standards lead to moderate
satisfaction; positively disconfirmed (exceeded) standards lead to high satisfaction,
and negatively disconfirmed (underachieved) standards lead to dissatisfaction. The
subject of continued (and considerable) debate in the marketing literature, the
distinction and association between service quality and customer satisfaction remains
at the forefront of many academic- and practitioner-oriented research endeavors
(Spreng and Mackoy, 1995). Many studies of consumer satisfaction have been
conducted in service settings, and, generally, researchers agree that the two constructs
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
43 | P a g e
are conceptually distinct (Bitner, 1990). However, based on the findings of the past
research (e.g. Oliver, 1989), an attempt has been made in this paper to explore the
contention that service quality influences, among other things, levels of customer
satisfaction. The study seeks to maintain the position that service quality - as
determined by its various components - is a partial determinant of satisfaction
(Parsuraman et al., 1985, 1988).
There exist numerous empirical works to support the quality/satisfaction causal order.
In a study, Cronin and Taylor (1992) tested, among other things, the casual
relationship between service quality and customer satisfaction. This study emphasized
that marketing researchers are not in agreement in terms of the causal order of these
constructs, and suggested that empirical justification is necessary to determine the
true nature of this relationship. The findings of this study revealed that perceived
service quality leads to satisfaction (as opposed to the reverse).
In a study addressing the relationship between service quality and satisfaction, Spreng
and Mackoy (1996) suggested that perceived service quality was an antecedent to
satisfaction. Although the direction of the quality/satisfaction relationship (i.e. quality
leads to satisfaction) is fairly well understood for services, the question of whether or
not (and how) this relationship varies depending on particular settings and/or
situations is not.
Service quality and customer satisfaction do exhibit independence and are indeed
different constructs from the customer‘s point of view. A small step in unearthing and
understanding the constructs of service quality and customer satisfaction and their
implications on competitive fruition has been put forward in a study on banking
services (Sureshchandar et al., 2002).
In another study (Regasamy and Kumar, 2005), the comparative analysis on the
services among three major banking segments revealed that the foreign banks have
Gravity
topped the list in terms of delivering qualitative customer service. The study also
revealed that the private sector banks compete successfully with foreign banks and
make efforts to provide better banking services in tune with the changing global
competitive scenario.
In an attempt to study the service gap, Dash and Kumar (2007) revealed that
customer‘s expectations exceeded their perceptions, with regards to various
dimensions of service quality. They further claimed that perception of either positive
or negative service quality was related to the customer‘s future behavioral intentions.
Therefore, if a positive quality gap exists, the customers would tend to comment
positively about the service. On the contrary, a negative quality gap would result in
customers complaining, switching to other service providers, commenting negatively
about the provider or just decreasing the usage of the service. Hence it is
recommended that the banks should continuously monitor the service quality levels so
as to avoid erosion of service quality and migration or switching by customers to
another bank.
Identification of customer segment is also vital for service development and delivery in
banks. For example, Jham and Khan (2008) implied that Indian banks should take
care of the needs of customers when introducing various services to them. Their study
revealed that customers of banks such as ICICI, IDBI, HDFC, PNB and SBI were either
in service or self employed. Many customers of SBI and PNB were found to be retired
from their respective profession. Thus they recommended that banks should envisage
a strategy to serve customers with different occupations & educational backgrounds.
Banks must also advance their customer-centric strategies by providing satisfaction
through services leading to better relationship building and earning profits for the
banks. Sudesh (2007) revealed that poor service quality in public sector banks is
mainly because of deficiency in tangibility, lack of responsiveness and empathy.
Private sector banks, on the other hand, were found to be more reformed in this
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
45 | P a g e
regards. Above all, the foreign banks were relatively close to the expectations of their
customers with regard to various dimensions of service quality. Further, the study
revealed that there existed service quality variation across demographic variables, and
suggested that management of banks should pay attention to potential failure points
and should be responsive to customer problems. While studying on development of
service quality, Amudha and Banu (2007) revealed the necessity of employee contacts
and evaluation of service experiences. Parikh (2006) found the problem of reliability in
various measures of service quality, and concluded that perception responses have
high reliability as compared to expectation responses. The five factor structure of
service quality developed by Dabholkar, Thorpe and Rentz (1996) indeed had a major
impact on the business and academic communities. Although this study shows that
the data collected do not support their five-factor structure, the five dimensions are
still useful as a foundation for discussion and determination of areas for improvement
in the service quality of retail stores. Service quality in banking implies consistently
anticipating and satisfying the needs and expectations of customers. However,
evaluating service quality sometimes is not an easy task due to the intangible nature of
services. Hence, the present study seeks to develop a common understanding of service
quality in the banking industry across different customer segments of public, private
and MNC banks in India. There are many reasons for poor service quality across
industries. One reason may be an inability to collect or use collected data. For
example, in direct opposition to consumer opinion, bank executives perceive
themselves and their companies to be doing an excellent job. This apparent
discrepancy of opinion creates questions about banking service information-gathering
effectiveness.
Because perceived quality is conceptualized as the customer's overall attitude towards
the excellence of service, many researchers have relied on a single overall quality
question, measured on a scale ranging from poor to excellent (Rust and Oliver, 1994).
Gravity
More generally, however, service quality perception is thought to be based on several
quality attributes
(Gronroos, 1990). Parasuraman et al. (1985, 1988) and Zeithaml et al. (1990) developed
a multi-item scale (SERVQUAL) where they have integrated the most important of
the criteria contributing to the formation of customer perceptions of service and
which signal quality to the customer. These are: reliability - reflecting the technical
quality of the outcome of the service encounter, i.e. what is received by the customer;
and tangibles, responsiveness, assurance and empathy - reflecting the functional
quality of the process itself, i.e. how the service is provided. Quantification is obtained
by measuring expectations and perceptions of performance for each one of these
dimensions (Cronin and Taylor, 1992; Parasuraman et al., 1988; 1991; Zeithaml et al.,
1990). SERVQUAL was deemed "to be applicable to retail and business services and
relevant for banking services".
Research Methodology
The research has been exploratory in nature as predetermined factors and dimensions
were not available. For conducting the research we formulated a questionnaire having
3 sections and 15 statements. The questionnaire was based on five point likert scale.
We collected responses from 150 respondents based upon judgmental sampling. The
data thus collected is primary in nature.
The collected data was first tested for reliability using Cronbach‘s Alpha test and then
descriptive statistics were drawn upon favorable results we tested for Kaiser-Meyer-
Olkin Measure of Sampling Adequacy to check whether explanatory factor analysis
could be administrated or not. We then upon satisfactory results conducted factor
analysis with rotated varimax method. On the basis of these result a qualitative model
was created.
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
47 | P a g e
Results
On the application of Cronbach‘s Alpha for testing reliability the results were 0.8
which is good enough to proceed further.
Upon the application of descriptive statistics we observe that 88% of banking
consumers in Indore feel that banking services provided by their banks are prompt.
75% of respondents felt that employees in their bank were courteous to them. About
80% felt that knowledge towards various banking products and services is available
with these banking employees. 76% of the respondents felt that the banking hours are
convenient and they are provided attention and help. About 81% of the respondents
felt that the bank staff is responsive but only 73% of respondents felt that officials have
understanding towards problems and requirements of consumers.77% of respondents
felt that the service mix available in their bank is appropriate and dependable. Only
76% of respondents felt that their bank branch is safe. About 75% of respondents were
satisfied with their branch location, ATM network and promotional material of the
bank.
The value for KMO was equal to 0.9(approximately after rounding off) which is high
and indicates that factor analysis can be conducted. 15 statements after the application
of factor analysis with Vermax Rotated Method produced 4 factors namely; 1)
Courtesy extended by bank employees, 2) Knowledge of product and services by bank
employees, 3) Banking hours and 4) ATM networks. These broad factors had highest
factor loads and were explanatory to the statement of problem.
Conclusion:
The description present here simply betokens the need for development of
SERVLOYAL for use in the service marketing research. The robustness of the
measurement of items in terms of relationship among latent variables can always stand
Gravity
improvement. Therefore, future research is caller for to continuously refine this
measurement scale and corroborate the findings of this empirical study. The effect of
psychological and genetic predispositions to Service Loyalty has yet to be investigated
and the same could also be attempted as a future study. The Dimensionality has been
conducted to only take further the study and delimit the existing research material.
This also indicates that the Impact of the four dimensions is very high in the universe
of the research and banking organizations working in the area can really build and
retain more number of customers. The act of maintaining long-term relationship with
customers has been proving to be beneficial for the corporate of any rung, be it
profitability or loyalty, irrespective of the sectors they belong to. In today‘s highly
competitive environment, organizations should protect the long-term interest of the
customers and hence should seek the ways through which the customer loyalty
toward the organizations will be forged.
References
Uppal, R. K., Business Retail Banking Strategies in the Liberalized and Globalized Era (January 6, 2010). The IUP Journal of Business Strategy, Vol. VI, Nos. 3 & 4, pp. 95-106, September & December 2009. Available at SSRN: http://ssrn.com/abstract=1532101
Bell, C and P. Rousseau (2001), ―Post Independence India: A Case of Finance-led Industrialization?‖, Journal of Development Economics, 65, 153-175.
Benveniste, Busaba, and Wilhelm (2001)Barth, James, Gerard Caprio and Ross Levine, 2001a.
―Banking systems around the globe: doregulation and ownership affect performance and stability‖? Forthcoming in Frederic Mishkin, ed., Prudential Regulation and Supervision: Why it is Important and what are the Issues (Cambridge, Mass., National Bureau of Economic Research).
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
49 | P a g e
Annexure
Case Processing Summary
N %
Cases Valid 136 100.0
Excludeda 0 .0
Total 136 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.780 15
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .855
Bartlett's Test of Sphericity Approx. Chi-Square 633.944
Sharda Haryani Assistant Professor, Prestige Institute of Management and Research, Indore|
Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore|
Nitesh Daga StudentPrestige Institute of Management and Research, Indore | Ravi Jain
StudentPrestige Institute of Management and Research, Indore | Satyam Sharma, StudentPrestige
Institute of Management and Research, Indore
ABSTRACT
An important aspect of India‘s current economic scenario is the emergence of organised retail market. There has been a considerable growth in this business in recent years and is poised to grow much faster in near future. Traditionally, the Indian retail industry was largely unorganised mainly comprising of kirana stores, small grocery shops etc. The growth in the Indian organized retail market is mainly due to the changing lifestyle, high disposable income coupled with great affordability and surge in advertising of the consumer behaviour pattern. This study is an attempt to explore the way organised retail has dramatically changed not only the Indian traditional retailing structure but, also the customer‘s consumption behaviour. This study compares the relationship between gender, organised retail store and an unorganised retail store. It will also contribute in understanding that consumers and retailers have different perceptions in relation to store image and shopping habits which truly justifies the need for the consumer marketing research. This study will help the retailers to implement the results in a real marketing orientation. A survey of 250 consumers was done by administering a specifically designed questionnaire.
Gravity
73 | P a g e
INTRODUCTION
Retail industry is one of the fastest growing industries in India, especially over the last
few years. Though initially, the retail industry in India was mostly unorganized,
however with the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing market
demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from 35,000 crores in 2004-05 to 109,000 crores by
the year 2010.
India is the only one country having the highest shop density in the world, with 11
outlets per 1000 people (12 million retail shops for about 209 million households).
Rather we can see the democratic scenario in Indian Retail (because of low level of
centralization, low capital input and due to a good number of self organized retail).
Retail Format in India:
Hyper marts/supermarkets: large self-servicing outlets offering products from
a variety of categories.
Mom-and-pop stores: They are family owned business catering to small
sections; they are individually handled retail outlets and have a personal touch.
Departmental stores: These are general retail merchandisers offering quality
products and services.
Convenience stores: They are located in residential areas with slightly higher
prices goods due to the convenience offered.
Shopping malls: These are the biggest form of retail in India, malls offers
customers a mix of all types of products and services including entertainment
Organised V/s Unorganised Retail Market: A Comparative Study
and food under a single roof.
E-trailers: These are retailers providing online buying and selling of products
and services.
Discount stores: These are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages,
snacks and other small items can be bought via vending machine.
Category killers: These small specialty stores that offer a variety of categories.
They are known as category killers as they focus on specific categories, such as
electronics and sporting goods. This is also known as Multi Brand Outlets or
MBO's.
Specialty stores: They are retail chains dealing in specific categories and
provide deep assortment. Shoppers Stop Crossword Book Store and RPG's
Music World are couple of examples.
The retail industry is divided into organised and unorganised sectors. Over 12 million
outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2)
in size. Organised retailing refers to trading activities undertaken by licensed retailers,
that is, those who are registered for sales tax, income tax, etc. These include the
corporate-backed hypermarkets and retail chains, and also the privately owned large
retail businesses. Unorganised retailing, on the other hand, refers to the traditional
formats of low-cost retailing, for example, the local kirana shops, owner manned
general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors,
etc. In India, a shopkeeper of such kind of shops is usually known as a dukandar.
* The mean difference is significant at the .05 level.
Page | 86
Chapter Six
Preferences and barriers of usage of ICT tools in the modern
education system:
A student’s perception
Sharda Haryani Assistant Professor, Prestige Institute of Management and Research, Indore|
Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore|
Jaspreet Kaur Sawhney StudentPrestige Institute of Management and Research, Indore |
Deepika Maheshwari StudentPrestige Institute of Management and Research, Indore | Jyoti
Thapar, StudentPrestige Institute of Management and Research, Indore
ABSTRACT
Creative and innovative applications of information and communication technologies (ICTs) are important potential tools in enabling educational reform processes thereby, improving both access to education and the quality of education. ICT is regarded as an enabler, which facilitates productivity and enhances quality of learning . It also enhances other aspects of student activities in the information era. ICT has influenced the education in various ways which is potentially a key instrument for students to think creatively, effectively communicate, identify and analyze existing information and create knowledge. But, Most initial programs focused largely on the technology itself, placing very little emphasis on the practical implications of the use of ICTs to meet broad educational objectives. Hence, this paper is a step to explore the various factors affecting the of use of ICT in education system. This will help the people in the education system to effectively use the ICT tools thereby, enhancing its importance in the modern scenario. A survey of 250 students of different colleges was done by administering a specifically designed questionnaire.
Gravity
87 | P a g e
INTRODUCTION
Information and communication technologies(ICT) ,has emerged as an inevitable
phenomenon influencing every walk of life of people in all the sections of society with
the ease of availability of enormous computing power and convenient access to large
volume and variety of data and information. Due to fast growth of information
technology and emerging role of digital media and information, the role ICT in
education is becoming more and more important.
The use of ICT can helps to light up learning and education system and transformative
advancements on a national level. It has created unmatched opportunities in education
sector and has enabled the students and teachers to increase there knowledge by using
advances in ICT. Thus, internet, multimedia, video conferencing, computer added
designs, animation and graphic user interface are all tools which enhance imperative
learning in a simpler way and supports the schools and universities on technological
edge.
ICT can be used as a tool in the process of education in the following ways:
Informative tool: It provides vast amount of data in various formats such as
Audio, video, documents.
Situating tool: It creates situations, which the student experiences in real life.
Thus,simulation and virtual reality is possible.
Constructive tool: To manipulate the data and generate analysis.
Communicative tool: It can be used to remove communication barriers such
as that of space and time (Lim and Chai, 2004).
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
perception
Education is transforming its way from teacher centric forms of delivery to student
centric forms. The use of ICT helps the students to visualize material that would be
more difficult to assess in traditional forms of education. It enables students to learn
and review and teachers to analyze the students‘ behavior and work. India has a large
network of open universities which impart education through distance learning more
or providing online course material to the students. Digitization of education is also a
significant result of ICT. ICT is also being used to help in teaching through television
and teleconferencing. Thus ICT stands for a diverse set of tactical tools and recourses
that can be used to promote education on a large scale.
In the current Information society, there is an emergence of lifelong learners as the
shelf life of knowledge and information decreases. People have to access knowledge
through ICT to keep pace with the latest developments (Plomp, Pelgrum & Law,
2007). In such a scenario, education, which always plays a critical role in any economic
and social growth of a country, becomes even more important. The various kinds of
ICT products available and having relevance to education, such as teleconferencing,
email, audio conferencing, television lessons, radio broadcasts, interactive radio
counseling, interactive voice response system, audiocassettes and CD ROMs etc have
been used in education for different purposes (Sharma, 2003; Sanyal, 2001;
Bhattacharya and Sharma, 2007). This paper tries to explore the various factors that
influence potential usages of ICT and to study emerging challenges in the use of ICT in
education sector
. LITERATURE REVIEW
Casal (2007) mentions that ICTs also provide a platform for sharing information and
knowledge. This can be used for the betterment of program delivery in terms of
replication of best practices. It also helps researchers by provision of information,
networking, online journals,libraries and data.
Gravity
89 | P a g e
Muhammad Z.M.Zain et.al.(2004)studied the impact of Information and
Communication Technology (ICT) on the management practices in the Malaysian
Smart Schools and revealed that the impact of ICT has resulted in changes that include
the enrichment of the ICT culture among students and teachers, more efficient student
and teacher administration , better accessibility to information and a higher utilization
of school resources. This analysis revealed that time constraints ,higher administrative
costs ,problems related to imposed rigid procedural requirements are among the
challenges encountered by the schools.
Bottino(2003) and Sharma (2003) mention that the use of ICT can improve
performance, teaching, administration, and develop relevant skills in the
disadvantaged communities. It also improves the quality of education by facilitating
learning by doing, real time conversation, delayed time conversation, directed
instruction, self-learning, problem solving, information seeking and analysis, and
critical thinking, as well as the ability to communicate, collaborate and learn (Yuenet
al, 2003).
According to Sanyal and Bikas (2001), the ICTS can support education through
various ways such as supporting education in school. Providing distance education
and in-service professional development for the teachers, providing non-formal
education for out of school children and adults, and enhancing the management of
schools. The possibility of real time interaction in all the different aspects of the
education system like teaching, collaboration, debates etc hold great promise for the
future (Mason, 2000)
A key development in the use of ICT in higher education has been the increased use of
the Internet and e-mail communications: in some instances this has led to the adoption
of virtual learning environments (HEFCE, 2000a). Some educational policy-makers
have become quite excited by the potential of the technology to deliver online learning,
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
perception
where ‗many of our universities are developing imaginative responses to the
opportunities, sometimes individually, sometimes in groups‘ (HEFCE, 2000b, p. 6),
but how are these developments likely to be received by students?
High prices of computers and low penetration of internet and telephones are the main
obstacles in the growth of e- learning in developing countries. Ehrmann (Ehrmann
1994),identified four distinct approaches of quality education which can be supported
by ICT i.e. real time conversion, learning by doing, delayed time conversation and
directed instruction.
Hawkridge (Hawkridge,et.al.,1990)suggested that the use of ICT can support
developing relevant skills in the disadvantaged communities helping in liberating and
transformation in addition to improve performance ,teaching and administration,
positive impact on the education as a whole. Thomas,(1987), pointed out four major
economic consideration that could effect the adoption of ICT in a country are
:Financial strength of the society ;attitude of policy makers ;Cost –efficency of the
technology and budget allocation for the technology.
Thomas,(1987),also identified that the cultural element of languages is one of the most
significant factor in the implementation of ICT in developing countries . The elements
of human factors like language barriers ;cultural differences ;gender issues and nature
of society must be addressed to meet the challenge. The success of any ICT and its
widespread usage rests mainly on its ability to fullfill socio –cultural needs of its
citizens and providing gains in commercial terms ;like in India where internet is being
used for personnel and socio-communication reasons. These socio –cultural factors
will lead the developing countries going to the main ICT users
Gravity
91 | P a g e
OBJECTIVE OF THE STUDY
To explore the potential usages of ICT and emerging challenges in education sector.
METHODOLOGY
The study: The study is exploratory in nature carried out to investigate factors
influencing students‘ perception towards use of ICTs.
The Sample: Non probability convenience sampling technique was used for data
collection . The sample of the study was constituted of 244 respondents from various
management colleges of Indore city.
Tools for data collection: Primary data for the study was collected through a self
structured questionnaire. The questionnaire consisted of 34 statements with 5-point
Likert scale
Tools for data analysis: The analysis of collected data was done by statistical package
for social sciences (SPSS 11.0) and MS Excel 2007.Item total correlation and factor
analysis were used to analyze the data.
Reliability of the measures: Reliability of the measures was assessed with the use of
Cronbach Alpha. Cronbach Alpha allows us to measure the reliability different
variables. As a general rule a coefficient greater than or equal to 0.7 is considered
acceptable and is a good indicator of reliability. The Cronbach Alpha for the
questionnaire is 0.88.Hence it is reliable and can be used for analysis.
FINDINGS
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
perception
Items total Correlation was conducted to identify non significant items and this
resulted in dropping of 3 items out of 34 items .The factor analysis was carried out on
31 significant items that resulted into 9 factors that influence students‘ perception
towards the use of ICT in education system .These factors are tabularized with their
items, eigen values and percent of variances in annexure 1.The discussion of each factor
is as follows:
Modernization has evolved as the first major factor. It comprises of four items that are-
Modern approach(0.784),Increased the accessibility of information (0.768) ,Improved
speed and style of learning( 0.665),user friendly (0.425).The total factor load is 2.845
with 9.202 % of variance. Plomp et al, (2007)said that There is a worldwide need felt
for integrating ICT into education in order to improve the pedagogy to reflect the
societal change .
Effective Learning: This factor comprised of five items namely superior over traditional
method of learning (0.706) ,clarity of thoughts (0.682), updating knowledge(
0.644),visual impact(0.591),mobility and compatibility(0.477). Total factor load is
3.1and 8.996 % of variance. According to Bhattacharya and Sharma,( 2007) e- Learning
allows higher participation and greater interaction. It challenges the concept that face-
to-face traditional education is superior to it.
Economical: It has constituted of three items Reduces manpower (0.746) ,Save trees
and paper (0.725), Enhanced the teaching through digital medium(0.446). The total
factor load is 1.817 and 7.247 % of variance. The study by McGorry (2002) also reveals
that ICT can be used as a tool to overcome the issues of cost, less number of teachers,
and poor quality of education
Increased competency comprises of five items namely improved working environment
(0.687) increased national competitiveness (0.665), systematized work (0.523)
Gravity
93 | P a g e
technological up gradation (0.479), facility of teleconferencing and audio conferencing
(0.665).Total factor load is 2.792 and 7.046 % of variance. According to McGorrry
(2002) education system also being driven by technological advances, competitive
pressures and the positive experiences of many early adopters.
Effective communication comprises of four items i.e effective communication
(0.594).Safety and precautions (0.561) effective delivery of lectures/presentations
(0.536) available anytime anywhere (0.447) The total load is 2.138 and 6.359 % of
variance .The study (Sanyal, 2001;Mooij, 2007; Cross and Adam, 2007; UNESCO, 2002;
Bhattacharya and Sharma, 2007); confirms the ICT eliminates geographical and time
barriers as learners can log on from any place and at any time.
Interpersonal skills comprises of three items i.e. increased dependency (0.808)
adversely affects the interpersonal skills (0.804) loss of communication skills and
interactive abilities between teachers and students (0.665) .The total load is 2.277and
6.163% of variance. According to Mason (2000) It can affect the bonding process
between the teacher and the student as ICT becomes a communication tool rather
than face to face conversation and thus the transactional distance is increased.
Accuracy Four items are associated with this factor; World has come closer (0.629),
reduces the chances of human error (0.628). Ample amount of information in less time
through various links (0.628) technological development of a country (0.486) Total
Load is 2.371and 5.999% of variance. Education is the driving force of economic and
social development in any country (Cholin, 2005; Mehta and Kalra, 2006).
Considering this, it is necessary to find ways to make education of good quality,
accessible and affordable to all, using the latest technology available.
Trustworthiness: Two items are associated with this factor. They are no technical
problem (0.735), trust worthy(0.616) total load 1.351and 5.565% of variance. Mooij
(2007) states that differentiated ICT based education can be expected to provide
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
perception
greater reliability, validity, and efficiency of data collection and greater ease of analysis,
evaluation, and interpretation at any educational level. In absence of ICT, most of the
responsibility of teaching and learning lies on the teachers.
Health hazards: Only single item is associated with this factor i.e. adverse affect on
health with total load 0.749 and 4.034% of variance.
Future challenges
Though ICT offers a whole lot of benefits, there are great challenges which hamper
the use ICT in education. ICT in education program require large capital investments.
Also, since not all the teachers are experts with ICT they may lack in updating the
course content online which can slow down the learning among students. . It can
affect the bonding process between the teacher and the student as ICT becomes a
communication tool rather than face to face conversation and thus negatively effects
the interpersonal skill. The potential of plagiarism is high as student can copy
information rather than learning and developing their own skills. Findings in this
paper also confirm that use ICT can effect communication skill and it is cost effective
also . It can be impersonal, superficial, misdirected, and potentially dehumanizing and
depressing and that they can disrupt the interactions that create a learning community
(Rovai, 2003). . Another major problem which hampers the growth of ICT in
education and development process in Indian economy is poverty and illiteracy. The
need is to solve these problems and hence effective implementation of ICT takes
place.
Suggestions
Information and Communication Technology has the potential to remove the barriers
that are causing the problems of low rate of education in any country.
Gravity
95 | P a g e
It mean that adopting the new technologies in education system can result in
effective learning which is the most important goal of any educational institute.
Although there is availability of resources for ICT but the working environment is
perhaps not immediately tangible. Extensive training programme for educators should
be conducted by the government and the private Institutions. Students should be
encouraged to use latest technologies in their presentations and assignments.
Curriculum should be planned such that maximum usage of ICT takes place.
CONCLUSION
ICT provide wider range of best practices and best course material in education,
which can foster better teaching. ICT also allows the academic institutions to reach
new international educational markets. Thus, ICT enabled education will ultimately
lead to the democratization of education.
ICT increases the flexibility of delivery of education so that learners can access
knowledge anytime and from anywhere. It can improve the quality of learning and
thus contribute to the economy. It provides several tangible and intangible benefits for
all stakeholders involved in the economic growth of the country. However, integration
of ICT in education is a complex process and it can only be possible with tactical
support, trained teachers and infrastructures.
References:
Bhattacharya, I. & Sharma, K. (2007), 'India in the knowledge economy – an electronic
paradigm', International Journal of Educational Management Vol. 21 No. 6, pp. 543-568.
Bottino, R. M. (2003),'ICT, national policies, and impact on schools and teachers'
development''CRPIT '03: Proceedings of the 3.1 and 3.3 working groups conference on
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
perception
Internationalfederation for information processing', Australian Computer Society, Inc.,
Darlinghurst,Australia, Australia, 3-6.
Casal, C. R. (2007), 'ICT for education and development', info ISSN: 1463-6697 Volume: 9
Issue: 4, 3 - 9.
Chandra, S. & Patkar, V. (2007), 'ICTS: A catalyst for enriching the learning process and
library services in India', The International Information & Library Review 39(1), 1-11.
Cholin, V. S. (2005), 'Study of the application of information technology for effective access
toresources in Indian university libraries', The International Information & Library Review
37(3),189-197.
Cross, M. & Adam, F. (2007), 'ICT Policies and Strategies in Higher Education in South
Africa:National and Institutional Pathways', Higher Education Policy 20(1), 73-95.
Ehrmann, Stephen C, (1994), responds to the triple challenge facing post secondary education:
access, quality, costs. Report prepared for the OECD, international conference.
Hawkride, D., jawoski , J., and MC mohan , H. (1990), computers in the third world schools :
examples. Experiences and issues, London, Macmillan.
Lim, C. P. & Chai, C. S. 2004. An activity-theoretical approach to research of ICT integration
in Singapore schools: Orienting activities and learner autonomy. Computers & Education
43(3): 215-236.
Gravity
97 | P a g e
Mason, R. (2000), 'From distance education to online education', The Internet and Higher
Education 3(1-2), 63-74.
McGorry, S. Y. (2003), 'Measuring quality in online programs', The Internet and Higher
Education 6(2), 159-177.
McGorry, S. Y. (2002), 'Online, but on target? Internet-based MBA courses: A case study', The
Internet and Higher Education 5(2), 167-175.
Mehta, S. & Kalra, M. (2006), 'Information and Communication Technologies: A bridge for
social equity and sustainable development in India', The International Information & Library
Review 38(3), 147--160.
Mooij, T. (2007), 'Design of educational and ICT conditions to integrate differences in
learning:Contextual learning theory and a first transformation step in early education',
Computers inHuman Behavior 23(3), 1499--1530.
Muhammad Z.M. Zain , Atan H. Idrus R. (2004) the impact of information and
communication technology (ICT) on the management practices of Malaysian smart schools.
International generals of educational development , 24(2), 201-211
Plomp, T.; Pelgrum, W. J. & Law, N. (2007), 'SITES2006—International comparative survey
of pedagogical practices and ICT in education', Education and Information Technologies
12(2), 83-92.
Rovai, A. P. (2003), 'A practical framework for evaluating online distance education
programs',The Internet and Higher Education 6(2), 109-124.
Preferences and barriers of usage of ICT tools in the modern education system::A student’s
4.015 2.997 11.989 I am delighted by the flavor of
hookah. 0.629
Hookah smoking makes me feel
elated & happy. 0.592
I have recently acquired this habit. 0.568
I can afford smoking hookah. 0.554
Hookah is environment friendly? 0.49
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Hookah smoking is good for health. 0.471
Awareness
Hookah parlors are easily accessible. 0.797
2.655
1.648
6.591
I take my own decisions. 0.711
I am aware of the ingredients used in
the hookah. 0.612
I am aware of the warning signals
displayed in the hookah parlors. 0.535
Prohibition
If given a chance I would give up this
habit. 0.759
2.144 1.513 6.051 Hookah parlors should be banned. 0.706
I am aware that hookah smoking is
addictive and injurious to health. 0.679
Ill effects
I am aware of harmful effects of
hookah smoking 0.72
1.436 1.301 5.204 I am aware that hookah kills one
human being every six seconds. 0.716
Persuasion I have been an average performer in
studies. 0.645 1.198 1.183 4.731
For the first time I was pressurized
by my friends to taste it. 0.553
Counseling I have been counseled by my
teachers/parents to quit this habit. 0.675 0.675 1.061 4.244
Gravity
113 | P a g e
Chapter Eight
Youngsters’ perception of Social Networking Site:
An Empirical Study
Sukhjeet Matharu Assistant Professor, Prestige Institute of Management and Research, Indore|
Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore|
Swapnil Pisal StudentPrestige Institute of Management and Research, Indore | Shantanu Dev
StudentPrestige Institute of Management and Research, Indore | Pallavi Shivhare, StudentPrestige
Institute of Management and Research, Indore
Abstract Today youngsters are spending a great deal of time using Social Networking Sites like Facebook,orkut, twitter, blog, linkedin,myspace,hi5, yahoo messenger to access public life. These social networking sites are easily accessible to the youngsters with the help of electronic gadgets like cell phones, laptops, and palmtops. These sites exert a great influence on the youngsters mind and even their life schedule is affected by it. The present paper examines the differences of the perception of a cohort of youngsters of 16- 24 years old on the basis of gender. This paper also tries to determine different sites used for social networking, membership availed, information shared and various tools for using them. Perception of security issues and time spent by youngsters are also focused in this research paper for providing better view of youngsters in usage of social networking sites. Introduction
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Social networking refers to the use of a specific type of website focused on the creation
of online social networks which allow its users to interact. These are web-based
services that allow individuals to construct a public or semi-public profile within a
bounded system, to articulate a list of other users with whom they share a connection,
to view and traverse their list of connections and those made by others within the
system. The nature and nomenclature of these connections may vary from site to site.
.It is a web site that provides a virtual community for people interested in a particular
subject, to simply "hang out" together or to increase their circle of acquaintances.
There are dating sites, friendship sites, sites with a business purpose and hybrids that
offer a combination of these. Globally, hundreds of millions have joined one or more
social sites such as Facebook, MySpace, Twitter and LinkedIn are highly popular
among the youngsters. These sites help them in communicating with other people
including their friends, classmates, family, relatives and other persons with similar
interests.
Social Networking sites have gained popularity among the youngsters as these are
extremely helpful in developing interpersonal relationships. Human beings are societal
and in order to survive in this society they develop relationships with other humans.
SNS have enhanced relationship with family and friends especially those that people
have not seen or heard from in a long time. Youngsters make use of these sites to
reconnect with each other and also to keep in touch with everyone. Youngsters prefer
to log on to these sites on a regular basis. It has become a sort of addiction to be logged
on to these sites. These sites are freely accessible with the help of a computer
connected to the internet and with the help of mobile phones that enable internet
browsing. Users of social networking sites can view profile of other persons which
includes their details, photos, videos, applications used by them and comments posted
by other persons.
Gravity
115 | P a g e
Social networking sites help interaction with others very easy whether you know
them or not. On one hand these sites promote friendship among users without face to
face interaction. Such sorts of friendships are not always reliable but to some extent
suspicion is involved in it. Youngsters are able to maintain their identity, interact with
their peers. Social games offered such as Farmville, teen Patti, mafia war are a great
source of entertainment.
Facebook : was launched in 2004 as a service meant for students enrolled at Harvard
University. Soon after, it opened its doors to students at other colleges, first to
members of prestigious institutions then gradually a more diverse set of schools (boyd
and Ellison, 2007). In 2005, it provided limited access to teenagers from specific high
schools and members of certain companies. Finally, in 2006, the service became
accessible to the public.
Orkut: is a social networking site and is owned and operated by Google Inc. It is
designed to help users meet new friends and maintain existing relationships. The
website is named after its creator, Google employee Orkut Buyukkokten. It is one of
the most visited websites in India and Brazil. As of April 2010, 48.0% of Orkut's users
are from Brazil, followed by India with 39.2% and United States with 2.2%. As of
March 2011.The website currently has more than 100 million active users worldwide.
Anyone 18 years old or older can join Orkut.
LinkedIn: is a business-oriented social networking site. It was founded in December
2002 and launched in May 2003 it is mainly used for professional networking. As on
22 March 2011, LinkedIn reports more than 100 million registered users, spanning
more than 200 countries and territories worldwide. The site is available in English,
French, German, Italian, Portuguese and Spanish.
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Twitter: is a social networking and micro blogging website, based in San Francisco,
California, also having servers and offices in San Antonio, Texas and Boston. Twitter,
Inc. was originally incorporated in California, but has been incorporated in the
jurisdiction of Delaware since 2007. Since being created in March 2006 by Jack
Dorsey and launching that July, the website has gained popularity worldwide and is
estimated to have more than 200 million active users, generating 65 million tweets a
day and handling over 800,000 search queries per day. It is sometimes described as the
―SMS of the Internet‖. Twitter enables users to send and read text-based posts
composed of up to 140 characters, called tweets, which are displayed on the
user's profile page. Users can subscribe to other users' tweets – this is known
as following and subscribers are known as followers or tweets ('Twitter' + ―peeps‖ '). By
default, tweets are publicly visible, though senders can restrict message delivery to just
their followers. Users can tweet via the Twitter website, compatible external
applications (such as for smart phones), or by Short Message Service (SMS) available
in certain countries. While the service is free, accessing it through SMS may incur
phone service provider fees.
Literature review
A recent study found that college students use Facebook, a popular social networking
site, to maintain their social capital . They use Facebook to stay linked with people
with whom they used to be more closely involved, e.g., former classmates (Ellison,
et.al. 2007). A related study investigated whether college students use Facebook for
―social searching‖ or ―social browsing‖. Social searching occurs when a Facebook user
looks up particular individuals he or she already knows or has become aware of via an
offline connection in order to learn more about them. Social browsing, on the other
hand, occurs when users try to find strangers online whom they would like to meet
Gravity
117 | P a g e
offline. Overwhelmingly, college students are using Facebook for social searching
(Lampe et.al. 2006).
The results of the study by Coyle and Vaughn, 2008 shows that the main purpose of
social networking is to keep in touch with friends. Our findings also indicate that
social networking sites are used for trivial communications (i.e., unimportant message
content) with friends, both close and non close, and that they are used to maintain
friendships, but as a non central form of socializing. Social networking may be
convenient for retaining contact when time and distance are issues, but it does not
replace voice calls and face-to face communication. Not a single respondent of the 68
people we surveyed answered that he or she used social networking sites to meet new
people.
SNWs have become most popular among younger users such as university students.
One reason they may have become so popular among younger individuals is that they
have an equalizing effect in that individuals often feel the freedom to express
themselves in ways not possible through other outlets. SNWs have even been
identified as increasing self-esteem among younger people. University students access
SNWs from various locations: home, school, and other locations, such as libraries,
coffee shops, and even Internet cafes. Each location has varying amounts of privacy and
concurrent offline social involvement with others. We believe that home locations
allow maximum privacy and freedom of self-expression; thus, we expect that SNW
users who primarily access their SNWs at school or elsewhere are less likely to make
friends online. ( Peter cardon et al, 2009)
As with any type of excessive Internet use, overuse of SNWs has the potential to
negatively affect an individual‘s study, work, health, and personal relationships. Young
adults are more likely than any other age group to have an SNW and engage in higher
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
levels of use (almost 3 hr=day). Despite the increasing popularity of SNWs, however,
there is still little known about the psychosocial variables that predict people‘s level of
use.
Objectives
1. To comparatively analyse the perception of youngsters about social
networking sites on the basis of gender.
2. To determine the extent of usage and popularity of social networking sites.
3. To determine the different purposes and tools associated with the usage of
social networking sites.
4. To determine the various information provided by the users on social
networking sites.
Hypotheses
H01: There is no significant difference between male and female youngsters in their
perception of the social networking sites.
Methodology
The Study: The study is exploratory in nature and based on primary survey. It was
conducted in the month of March 2011.
The Sample: The sample of the study constituted of 150 respondents from Indore city.
The respondents were selected on the random basis and mainly belonged to the age
group of 17-25 years.
Tools for Data Collection: The data was collected through a self structured
questionnaire which was divided in 3 sections. The first section had general
Gravity
119 | P a g e
information while the second section had questions regarding usage and purposes of
social networking sites and the third section constituted of five point likert scale.
Tools for Data Analysis: For data analysis, percentage analysis was applied on some
questions and MS-Excel was used for calculating item-total-correlation for 24 items to
find out significant items contributing for measuring the perception of youngsters
towards the use of social networking sites. Since, all the item correlation was found to
be greater than 0.196 so all the items were subjected to further analysis. Statistical
analysis was done using SPSS 18.0 and independent t-test was used to compare the
perceptions of different genders.
Results and Discussions
Hypotheses Testing:
Mean perception score of male respondents is 47.65476 and of female respondents is
51.81818. The results of H01 reveal that there is no significant difference in the
perception of male and female youngsters in their perception of the social networking
sites. As t= 0.0812 > 0.05, therefore hypothesis H01 is accepted. The outcome was in
contrast to the findings of the study by Morahan et al. 2003. In his study the results of
chi-square analysis indicated that there was a significant difference in the extent of
sharing of opinions among males and females (p value <.05, hypothesis rejected). The
reason for this could be that women in India are still cautious about using SNWs for
various reasons. Many factors, like demographic characteristics (Whitty, 2002) and
psychological characteristics (Morahan-Martin & Schumacher, 2003), affect an
individual‘s online social behavior. The results of this study indicate that there are
significant differences in the usage of SNWs based on demographic characteristics like
age, usage of the Internet, and gender. Morahan-Martin, J., & Schumacher, P. (2003).
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Other Parameters used in usage of Social Networking sites:
Membership of social networking sites: As depicted in figure 1, maximum youngsters
were the members of Facebook, Orkut was also preferred by many users but twitter,
Hi5, MySpace and LinkedIn were least preferred sites by youngsters for social
networking.
Figure 01: Member of the social networking sites
Purposes : Out of 150 respondents , 94 respondent‘s main purpose for using social
networking sites was Connectivity with friends, 38 users used for General awareness,
29 users were concerned because they wanted to move with trends, 75 preferred
because they wanted to chat , 45 were interested just for leisure and fun and 21 people
were interested for establishing network (fig 2)
0
50
100
150127
84
30 12 9 8
Gravity
121 | P a g e
Figure 02: Purpose of using social networking sites
Trust on social networking site: out of 150 respondents, 91 respondents trusted that
their site will not use their information in a wrong way while 59 did not had trust on
the sites as far as their personal information was concerned.
020406080
10094
38 29
75
40 21
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Figure 03: Trust on the social networking site
Tools to use social networking sites: The different tools used by people for accessing
networking sites are PC, laptop, Smartphone etc. Out of 150 respondents, 95 used
their individual laptops for social networking sites, 75 used PC for social networking
sites, 35 used smart phone while only 10 used other means for social networking sites.
91
59
trust site
Gravity
123 | P a g e
Figure 04: Tools to use social networking sites.
Extent of usage of social networking sites: 95 of 150 respondents spend time less
than 2 hrs for social networking sites, while 28 users used to spend more than 5 hrs for
social networking and only 27 users spend between 2 to 5 hrs for social networking
sites.
Figure 05: Extent of usage of social networking sites.
Information provided on sites: As depicted by figure 6, 100 respondents provided their
e-mail ID on the site, while everybody provided their mobile no on the site. Only 80
users disclosed their real names on the sites, while only 77 people actually inserted
their photographs on the site.
0
10
20
30
40
50
60
70
80
90
100
PC laptop smartphone others
75
95
35
10
95 27
28
usage < 2yrs
5 yrs>usage > 2yrs
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Figure 06: Information provided on social networking sites
Conclusion
The present study shows that there are no gender differences in the perception of
users regarding social networking sites. The study revealed that Facebook was the
most popular social networking site in the view of the youngsters. A great proportion
of the students lacked trust on the website as far as the personal information was
concerned. Connectivity with the friends emerged as the main reason behind the
usage of social networking site while other prominent reasons were meeting with
trends, chatting, leisure and fun etc. To better evaluate the impact on SNW usage on
youngsters, we suggest that future research is needed to assess the differential use of
social networking sites across the world. Furthermore, this study relied on group
samples of university students in Indore city and was thus not necessarily
representative of the cultures at large; therefore, future studies that include
representative samples of national cultures could contribute further to research about
offline and online social ties across cultures.
100 101
150
80 64
77 73
0
20
40
60
80
100
120
140
160
Gravity
125 | P a g e
References
C. Lampe, N. Ellison, and C. Steinfield, ―A Face(book) in the Crowd: Social Searching vs. Social
Browsing,‖ Proc. 20th Anniv. Conf. on Comput. Supported Cooperative Work (CSCW ‗06) (Banff,
Alberta, Can., 2006), pp. 167–170.
Caplan S. Problematic Internet use and psychosocial wellbeing: development of a theory-based
cognitive-behavioral measurement instrument. Computers in Human Behavior 2002; 18:553–75.
Cardon, Peter W. et al. Online and Offline Social Ties of Social Network Website Users: An
Exploratory Study in Eleven Societies.(Journal of computer information systems, pp. 54- 64 Fall 2009,
University of South Carolina, Columbia, SC 29208
Cheryl L. Coyle and Heather Vaughn, Social Networking: Communication Revolution or Evolution?
Bell Labs Technical Journal 13(2), 13-18 (2008) Alcatel-Lucent, Published by Wiley Periodicals, Inc.
Published online in Wiley Interscience (www.interscience.wiley.com)
Morahan-Martin, J., & Schumacher, P. (2003). Loneliness and social uses of the Internet. Computers in
Human Behavior, 19, 659–671.
Murnan C. Expanding communication mechanisms: they‘re not just e-mailing anymore. Special
Interest Group on University and College Computer Services 2002; 5:267–72.
N. B. Ellison, C. Steinfield, and C. Lampe, ―The Benefits of Facebook ‗Friends‘: Social Capitaland
College Students‘ Use of Online Social Network Sites,‖ J. Comput.-Mediated Commun., 12:4 (2007),
1143–1168.
Raacke J, Bonds-Raacke J. MySpace and Facebook: applying the uses and gratifications theory to
exploring friend- 758 Pelling and White networking sites. CyberPsychology & Behavior 2008; 11: 169–
74.Volume 12, Number 6,2009.
S. Henderson, ―The Social Network, Support and Neurosis: The Function of Attachment in Adult Life,‖
British J. Psychiatry, 131 (1977), 185–191.
Whitty, M. T. (2002). Liar, liar! An examination of how open, supportive and honest people are in chat
rooms. Computers in Human Behavior, 18, 343–352.
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Annexure
Group Statistics
GENDER N Mean Std. Deviation Std. Error Mean
TOTAL 1 84 47.655 15.077 1.645025364
2 66 51.818 13.533 1.665767929
F Sig. t df Sig. (2-tailed)Mean DifferenceStd. Error Difference95% Confidence Interval
A Study on the Export Potential of Soya, Leather and Textile
from Madhya Pradesh
Manish Joshi, Assistant Professor, Prestige Institute of Management and Research, Indore|
Anshul Diwakar, StudentPrestige Institute of Management and Research, Indore | Rohit Maal,
Student Prestige Institute of Management and Research, Indore
| Rahul Kabra, Student Prestige Institute of Management and Research, Indore
ABSTRACT
The Madhya Pradesh has immense potential for growth of exports in various sectors. The purpose of this research is to determine the export potential of Soya, Leather and Textile sectors from Madhya Pradesh on the basis of their recent export performance from the state. Statistical data that is used for our research, provided by several organizations like DGFT, SEZ, which helped us to validate our results to determine the contribution of the state in the international trade & in Indian economy. We assume and hope that this will enable to produce efficient and useful results for the entrepreneurs, government and who so ever it may concern. In our study we collected secondary data from reliable sources like government websites, business magazines etc. as per it was required. Our emphasis will be primarily on identifying the export growth for recent decade of the mentioned sectors Soya, Leather and Textile. For the same we applied the Trend-Analysis method on the available statistical data of above mentioned sectors to derive the export potential from the Madhya Pradesh. This study inculcates the information regarding the export potential of our state: Madhya Pradesh. It will encourage stake-holders to initiate the exports of concerning sectors along with the sustainable growth and that will not only lead to promotion of exports of our state but also this will give the pace to growth of emerging Indian economy.
A Study on the Export Potential of Soya, Leather and Textile from Madhya Pradesh
INTRODUCTION
Madhya Pradesh exports a variety of products and services to both developed and
developing countries. The details of exports of products surveyed by IIFT which do
not include iron, steel, cotton yarn are furnished below:
Products Exports *
Export Markets
Soybean Extractions 1344 Indonesia, South Korea, Japan, Singapore, Malaysia, China, Iran, Thailand.
Soya Products
Leather Products
Silk Goods
Readymade Garments
20
170
10
40
Saudi Arabia, Turkey, Malaysia, Russia
U.K., Germany
U.S.A, Germany
U.S.A, France, Germany, Kuwait, U.A.E.
Castings 98 USA, UK, Italy, Middle East
Auto Parts 30 USA, Iran, UK, Italy, Middle East
Pharmaceuticals 10 Australia, Sri Lanka, USA, UK, Germany, Middle East
Gravity
129 | P a g e
Cement 116 Nepal, Bangladesh, Bhutan
Computer Software 34 USA, Europe
Handicrafts 8 USA, Europe
Medicinal Plants 5 USA, Canada, West Europe, Japan, Indonesia
Tendu Leaves/Bidi 17 Pakistan, Sri Lanka, UAE, USA
Diamond 1000 USA, Western Europe
Manganese Ore 30 Japan, China
Total 2,927
* Export values in Rs. in Crores
Exports performance of these various indicates in the above table covering 22 products
valued at Rs.2, 927 crore, represent around 75 per cent of the total exports from the
State of the year 2001-2002. It may be seen that soybean extractions, contributing 44
per cent of the total exports, dominate the external sector of the State.
(http://www.sezindore.com/exports.html dated: 23rd April 2011 at 2.18 pm)
Export Scenario of SOYA in Madhya Pradesh
The Majority of all the soybeans in India are grown in the province of Madhya
Pradesh. Alone, this province produces 81 percent of all the soybeans grown in India.
The remaining growing areas are centered on Madhya Pradesh, which lies in the center
A Study on the Export Potential of Soya, Leather and Textile from Madhya Pradesh
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
1 2 3 4 5 6 7 8 9 10
Soya
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10
Leather
Gravity
155 | P a g e
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10
Textile
Page | 156
Chapter Ten
Factors Affecting Selection of Mobile Brands
Nidhi Sharma Assistant Professor, Prestige Institute of Management and Research, Indore| Sunil
Chichra, Student Prestige Institute of Management and Research, Indore| Anshumaan Bakshi,
Student Prestige Institute of Management and Research, Indore | Raj Kumar Ranjan
StudentPrestige Institute of Management and Research, Indore
ABSTRACT:
Mobile phone is an electronic device used to make telephone calls across a wide geographic area. Mobile phone is defined as a handheld phone with a built in antenna that transmits signals through the air without any physical connection. They have become an important aspect of living in the 21st century. Majority of adults already own a mobile phone and the minimum age for operating a mobile phone is reducing every year. Consumers are constantly looking for the best possible network, plan and handset. So many people closely analyze every aspect of their mobile phone. Over 1 billion cell phones are sold annually in the country. Today the market is flooded with different types of mobile phones. Marketing managers have sleepless nights to explore the diverse factors behind the purchase decision of a particular mobile phone brand. The present study focuses on finding out the factors which affect the selection of mobile phones brands. The study is exploratory in nature and a self designed structured questionnaire is used to survey the mobile phone users in Indore city. The results are analyzed with the help of suitable statistical tools and then interpreted to give valuable suggestions.
INTRODUCTION:
India is one of the fastest growing mobile markets in the world and that brings
immense mobile marketing opportunities for branded consumer companies. According
to a newspaper article in DNA on Sept 22, 2009, there were around 441 million
wireless users in India by the end of August, 2009. It is now the 2nd largest subscriber
market in the world. Mobile as a medium is gaining popularity with cheaper
multimedia handsets getting into the mix.
Gravity
157 | P a g e
A mobile phone or mobile (also called cellphone and hand phone) is an electronic
device used for mobile telecommunications (mobile telephony, text messaging or data
transmission) over a cellular network of specialized base stations known as cell sites.
Mobile phones differ from cordless telephones, which only offer telephony service
within a limited range, e.g. within a home or an office, through a fixed line and a base
station owned by the subscriber and also from satellite phones and radio telephones.
Mobile phone is a smart communication media. It is not a one-way communication
like pager. Cellular communication basically gives the power of an advanced telephone
system card. Cellular communication works like the radio set which is normally used.
The handset or Mobile Phone is in fact an own private radio transmitter and receiver,
very similar to the Walkie-talkies used by Police and Security Personnel. The key
difference is that a cellular phone network is connected to the fixed line or
conventional telephone system allowing additional access to the telephone world.
Mobile Phone can be used to make and receive STD and ISD calls. Now e-mailing
message is also possible. Some cellular phones have the capacity to send and receive
faxes and data when attached to a personal computer. The Indian market is flooded
with mobile phones manufactured by diverse brands. They are offering diverse
features, services and other attractive offers to the customers. Mobile phones have
changed the way we communicate; they have also spawned new forms of bad behavior.
Mobile phone is a fashion statement for some and a must have tool to others, it
attracts the Youth, it attracts the Old, it is truly a magnificent devices to have/own, it
takes pictures, it records videos, it plays music, it performs video calling, it sends e
mails on the move.
Factors Affecting Selection of Mobile Brands
Literature Review
Whitworth Brain, Yang Chieh Chun and Jones Beatrix mention that the rapid
evolution of the mobile phone has produced a proliferation of models and features.
Selecting a mobile phone is now a complex multi- Criteria problem. The authors found
that the customers may find online decision support useful. So 105 mobile phone
models with 59 technical features were organized by external features like color, and
perceived criteria like reliability. The study simulated three forms of online support.
Significant differences were found between the support types and the features and
criteria used, with some gender differences. The results suggest that web-based
support systems can increase customer satisfaction with mobile phone selection
process.
Wei R. and Leung L (2000) suggested that Mobile phones are powerful technologies
that do more than mobile telephony with features like multi-media messaging, e-mail,
web-browsing, TV streaming, fax and navigational maps. These developments match
the rapid growth of mobile phone use, e.g. while in 1999 only 34% of young people
owned mobile phones by 2002 this percentage was 90%.
Isiklar g. and Buyukozkan G. (2005) researched that the side-effect of rapid growth
has been a proliferation of phone models as manufacturers worldwide compete with
some features quite technical in nature, like Bluetooth, TFT LCD, WAP and MMS.
Choosing a mobile phone has become a complex multi-criteria decision problem.
Davis D.F. (1996) ; Venkatesh V. (1996) ; Whitworth B. (2008) ; Sylla C. (2008)
studied that Selecting a mobile phone is a form of technology acceptance. The authors
used the Technology Acceptance Model (TAM), with traditional TAM criteria
expanded by Web of System Performance (WOSP) criteria like security, functionality,
connectivity, privacy, usability and reliability. The scenario envisioned is computer-
Gravity
159 | P a g e
based support for technology selection; criteria that derive from definable product
features are needed.
(Figure 1. Technology selection framework)
Wilska A.T. (2004); Katz E.J. (2005); Sugiyama S. (2005) and Fortunati L. (2005)
suggest that while young people prefer cell phones that are ―trendy‖ or ―fashionable‖,
and mostly students agree that fashion is important when selecting a mobile phone.
The authors have given a model where customers form perceptions of criteria like
usability from the product‘s external features, which then affect the decision to buy. It
distinguishes the external features of the phone, and the perceived criteria deduced from
those features. There is evidence that users are more concerned with user-related
criteria like functionality and ease of use than product-related features like size and
color.
Gi oug, Oh (2006); Dooyeon, Kim (2006) and Sungyul, Rhew (2006) surveyed that
commercial activities based on information technology have used electronic data
Behavioral
Intention
Actual
Usage
Perceived
Criteria
Functionality
Connectivity
Usability
Security
Reliability
Flexibility
Privacy
External
Features
Factors Affecting Selection of Mobile Brands
interchange between computers, but with the development of Internet technology,
they evolved into e-commerce. In the 1990s, mobile commerce was recognized as a part
of e-commerce. With the increase of mobile devices, the use of mobile commerce,
which accesses and use desired information at any time while moving (Anywhere,
Anytime), was popularized. In the late 1990s, over 3.5 million devices were used, but
entering the 2000s, the number exceeded a trillion. The market size also has already
gone beyond 200 trillion won in 2004.
Jones Beatrix , Whitworth Brian and Yang Chieh Chun mentioned that the Top
Factor in selecting a mobile phone is the capability, flexibility, and usability with
connectivity the least important. Again there were gender differences, with males
significantly more concerned with capability, connectivity and usability than females.
Both genders saw reliability as the most important criteria.
Arshad Rehan Saeed Aitzaz researched that the role of corporate branding in mobile
phone telecommunication along with different influencing factors involved in the
purchase of mobile telephone connections. It investigates the relative importance of
the corporate branding to the customers in mobile phone telecommunication industry
while making purchase decision. The finding of this study provided useful information
which is helpful not only for the students but also for the brand managers of mobile
telecom operators that how they can improve their company‘s strategic position for
longer period of time through corporate branding to trigger more customers and for a
good brand.
According to Rossi Matti: Helsinki School of Economics, Demand and usage of mobile
phones might increase, if there were more utility services available. For instance, in
some Finnish cities, both public and private dental clinics send a SMS to inform a
customer about new possible appointments. Also libraries may send a notification
about a reserved book that is ready to be collected.
Gravity
161 | P a g e
White, Jules; Schmidt C. Doulas studied the increasing popularity and abundance of
mobile and embedded devices is bringing the promise of pervasive computing closer to
reality. A recent trend in mobile devices that makes pervasive computing more
realistic is the proliferation of services that allow mobile devices to download software
on-demand. Mobile phones, for example, can now access web based applications, such
as Google mail, or download custom applications from services, such as Verizon‘s ―Get
It Now.‖ Google delivers both a web-based interface to Google mail and an application
that can be downloaded to a mobile phone.
Research Methodology
The present study is empirical in nature and tows to explore the factors affecting the
selection of mobile phones. Data for the study was collected through a self- designed
structured questionnaire. The sample of the study constituted of 124 respondents from
various management colleges of Indore city. The analysis of collected Data was done by
statistical Package for social sciences (SPSS11.0) And MS Excel 2007. Item total
correlation and factor analysis were used to analyze the data. It was assessed with the
use of Crombach Alpha. Crombach Alpha allows us to measure the reliability of
different variables. As a general rule, a coefficient greater than or equal to 0.7 is
considered acceptable and is a good indicator of reliability. The Crombach Alpha for
Questionnaire is 0.75. Hence it is reliable and can be used for analysis.
Results and Findings
The factor analysis was carried on 15 significant items that resulted into 5 factors that
influences the purchasing pattern of mobile phones. The factors are tabularized with
their items in annexure 1. The discussion of each factor is as follows:
EFFECTIVE PROMOTIONAL ACTIVITIES has evolved as the first dimension it
consists of 6 items that are providing accessories and gifts to customers (0.709), active
Factors Affecting Selection of Mobile Brands
advertising (0.646), and Touch screen technology (0.640), after sales services (0.580),
status symbol (0.530) and mobile phone as a fashion statement (0.160). Total load is
2.222 with 14.813% of variance.
PERFORMANCE: This factor comprised of 2 items namely mobile phone brand with
good battery backup (0.708) and multimedia features (0.608). The total load is 2.147
and 14.313 % of variance.
VALUE FOR MONEY has consists 3 items which is Shape of Mobile (0.706), Price
(0.615) and Brand of the mobile phone (0.567). Total load is1.762 with 11.746% of
variance.
NETWORKING comprises 2 items i.e. CDMA & GSM (0.842) and Internet Services
(0.509). Total load is 1.639 and 10.927% of variance.
CONVENIENCE has single Item i.e. easy availability of mobile phone in the market
(0.772) it has total load of 1.171 and 7.809 5of variance
Conclusion
Finally we would like to conclude that five major factors play a significant role when
the buyers think of purchasing a mobile phone. The most important factor is
promotional activities that persuade the most in selection of mobile phones. Mobile
phone also acts as a status symbol and it act as a fashion statement. Performance of the
mobile phone like battery backup, advanced multimedia features enhances its
popularity. E.g., Apple I-Phone have low battery backup that‘s why people don‘t prefer
to buy that, people easily buy Nokia mobiles because they have very good battery
backup. In India, people look for the Value of their Money. So whether the mobile
phone handset is reasonably priced or priced high, it must provide value to the
customer. Good Networking also affect the selection of mobile phones as nowadays
Gravity
163 | P a g e
many youngsters want to operate social networking sites through their mobile phones.
Convenience that is the availability of mobile phones in the nearby markets is the least
important factor given by our respondents.
Suggestions
The study aimed is to understand the diverse factors that consumers look for while
selecting a Mobile Phone. Marketing managers are having sleepless nights to discover
what will make a particular mobile phone brand more preferred by the buyers as
compared to the others. On the basis of the results a few suggestions are mentioned
below:
1. The marketing managers must focus more on the promotional activities like
advertising their mobile phones through different media like Television,
internet etc to increase their awareness, providing accessories, gifts
occasionally, and providing better after sales services to enhance the sales.
2. For Youth, more emphasis can be given in the upcoming promotional media
like social networking sites where they spend majority of their time.
3. The elderly are an often neglected group in product development and
marketing, but they are the only growing age group in most developed
societies. So some mobile phones must be creates with features catering to the
needs of elderly people.
REFERENCES
Whitworth, Brian ; Yang Chieh Chun and Jones,Beatrix : Web Based Decision Support For Mobile
Phone Selection
Factors Affecting Selection of Mobile Brands
Leung, L., Wei, R., 2000, More than just talk on the move: Uses and gratifications of the cellular phone,
Journalism and Mass Communication Quarterly vol. 77, pp. 308-320.
Isiklar g. and Buyukozkan G. (2005) "Using a multi-criteria decision making approach to evaluate
mobile phone alternatives," Computer Standards & Interfaces 29, pp.265-274
B. Whitworth, V. Bañuls, C. Sylla, and E. Mahinda, (2008) "Expanding the Criteria for Evaluating
Socio-Technical Software," IEEE Transaction on Systems Man & Cybernetics, Part A.
T. A. Wilska (2005), "Mobile Phone Use as Part of Young People's Consumption Styles," Journal of
Consumer Policy, vol. 26, pp. 441-463, (2004); L. Fortunati, "Mobile phones and fashion in
postmodernity," Telektronikk, vol. 4, pp. 35-48.
Whitworth Brian ; Yang Chieh Chun ; Jones Beatrix :web based Decision Support for Mobile Phone
Selection
Kurvilla Jose Shelja, D‘mello Larrisa, Pandey Ajay (2010): ―M- marketing: An Empirical Study on
Factors Affecting the Acceptance of Mobile Marketing‖ Managing in the New World order, pp. 468-
484.
Lawrence Elaine ; Pernici Barbara ; and Krogstie John(2004) : Mobile Information System
MMA Team (2007). Introduction Of Mobile Coupons, Mobile Marketing Application, Version 3
Gi oug, Oh ; Dooyeon, Kim and Sungyul, Rhew (2006) : Selection Of the Success Factors Of Mobile
Commerce and Evaluation Using AHP : IJCSNS International Journal of Computer Science and
Network Security, VOL.6 No.7B, pp(127 – 134)
Rossi, Matti ; Tuunainen Kristiina Virpi : Helsinki School Of Economics : Factors Affecting the
Adoption and Use of Mobile Devices and Services By Elderly People
Gravity
165 | P a g e
White, Jules and Schmidt, C.Doulas : Automating Product Line Variant Selection For Mobile
Devices : Vanderbilt University,Department of Electrical Engineering and Computer Science
Email:{jules, schmidt}@dre.vanderbilt.edu
Bouwman, Harry ; Carlsson, Christer ; Walden, Pirkko ; Castillo, Molina Jose Franscisco (2010) :
Factor Affecting the present and future Use Of Mobile Data Services : (www.inderscience.com)
Rahman, Sabbir ;Haque, Ahasanul and Ahmad, Mohd Ismail Sayyed Ahmad (2010) : Exploring
Influencing Factors For the Selection Of Mobile Phone Service Providers : African Journal of Business
Scrutinizing the Brunt of Economic Growth on CO2 Emissions
in India
Manish Joshi, Assistant Professor Prestige Institute of Management and Research, Indore| Divya
Sharma, StudentPrestige Institute of Management and Research, Indore | Shweta Ghanshani,
StudentPrestige Institute of Management and Research, Indore | Harshita Kankane,
StudentPrestige Institute of Management and Research, Indore
Abstract:
Emerging economies currently face a very difficult target of controlling their environment in general and climate change in particular. Many national and international discussions and deliberations are being held across the world to discuss the effects of climate change, but it is well understood that the greed for economic growth and casual approach towards environment has lead to the problem of emissions. GDP has been referred to as an important representative factor of economic growth, it is thus sometimes even referred to as a synonym for economic growth. The research conducted shall be confined to India and would enquire the causal relationship of CO2 emissions and GDP of the country, to do so, econometric analysis has been applied to regress a model portraying current status and develop a possible model where CO2 emissions can be controlled while letting the GDP grow.
Introduction:
The rush for rapid economic growth led by industrialization in emerging economies
like India is having a negative impact on the ecological management. It is evident that
rapidly growing economies are causing severe pollution problems in the form of
Gravity
Page | 167
emissions of various forms of gases like the CO2. The higher emissions in these
countries are a resultant of higher energy consumption. Higher rate of growth of
population, rapid industrialization, industrial trade, increase in number of vehicles as a
result of a very high economic growth are acting as major driving forces towards
higher energy consumption. The economic growth exhibited in the countries like
India is exuberant. The higher growth levels have placed such economies in the
different League of Nations altogether. China and India together contributed world‘s
30% of GDP in US $ constant PPP in 2002-03 (World Bank, 2004). The GDP of India
between 1950 and 1980 was around 3% and annual growth of per capita income was
just 1.5%. For a country like India which is world‘s second largest populous nation,
this growth rate was found to be inadequate to make any significant impact on overall
progress of the nation. Some initiation was taken up during the 1980s by the
government of India to set things right. Though they were half hearted, it improved
the per capita income growth to 3.0% as poverty levels fell from over 45% to 35% by
the end of 1980. Thus, India realized that only strong economic growth rate could
increase the per capita income levels of the people which in turn help in bringing
down the poverty levels and improve the socioeconomic conditions of the poor. This
further encouraged the government to make some serious corrections in its economic
policies. Thus, the foundation for a strong economic growth was laid in the form of
economic reforms in 1991 which is popularly known as Structural Adjustment
Program (SAP). This program was a result of a ―closed economic policy‖ which India
followed over the decades which resulted in a severe macroeconomic crisis by early
1990s. The reforms focused on strengthening the economic growth which should
translate into reduction of poverty levels, improving poor socio-economic conditions
and better standard of living for the people of India. The reforms started yielding
results by mid-1990s as India posted a growth rate of over 7% for three consecutive
years followed by a low growth rate which was a result of worldwide recession. On
the other hand, the governments kept changing, but the reforms program continued.
Analysis Potential of Internet Advertising on College going Youth of Indore City
More reforms brought a much higher growth rate and this was evident during the
early 2000 as the growth rate for the first seven years of 2000 was over 7.5% per
annum. Thus, many argue that the higher growth rate is the only panacea for the ills
poor socio economic conditions prevailing in the developing countries.
But the rapid growth in industry, industrial trade and transportation sector is driving
the economy. This being so, on the other hand another set of experts speak against this
rapid rate of growth which emerging economies are exhibiting. They opine that there
are environmental costs and damages associated with rapid economic growth which
results in expanding of economic activities. This ever increasing consumption demand
would have global side effects such as high emissions leading to global warming,
greenhouse effects and destruction of forests. Added to the above, the environmental
degradation can also add to the problems of imposing higher costs on the poor by
increasing the expenditure of health related issues. According to UN report, world‘s
poorest 20% of population take this burden which is a resultant of environment
degradation. It is also said to have responsible for world‘s 80% of the diseases due to
pollution in the form of water, air and land due to rapid industrialization (United
Nations Report, 1998).
The problem associated in the case of India, China and Brazil is that these nations are
in the stage of rapid industrialization. This stage is a resultant of high economic
growth led by change in the structure of economic activities, higher industrial exports,
lower industrial imports, higher production and industrial activity and high rate of
growth in population. This is better explained by the Environmental Kuznet Curve
(EKC).
Gravity
Page | 169
The Environmental Kuznets Curve (EKC) hypothesis states that pollution levels
increase as the country develops, but begin to decrease as rising incomes pass beyond a
turning point. This is reflected as inverted-U curve, expressing the relationship
between pollution levels and income. Exhibit – 1 better explains this scenario. This
hypothesis was first proposed by Grossman and Krueger in 1992, and restated by them
again in 1995.As seen from exhibit – 1, there are many forces which are driving the
relationship between environment degradation and economic growth. The upward
movement of the curve captures the developing countries that move from
agriculturally based economy to industrialization phase. In the next phase, the
economy transforms into developed economy and then starts the downward
movement of the curve with a shift towards services growth, increase in imports of
industrial goods and stabilization of growth rates. India‘s in the first phase where
experiencing the structural shifts from agriculture to industrial growth. The share of
agriculture for India has considerably declined from over 80% in 1950s to around 25%
by 2007. During the same period of time the levels of energy consumption and CO2
emissions have also drastically increased in these economies, exhibiting a relationship
between economic growth led by industrialization and environment degradation.
Analysis Potential of Internet Advertising on College going Youth of Indore City
Thus it brings us to a point where a realisation has been achieved where some
relationship exists between economic growth and carbon emission. It is important to
describe the relationship and generate a pragmatic solution to the problem.
Review of Literature:
The role of industries is specified in the study by Low and Yeats, (1992) who show
that pollution intensive industries accounts for a large share of exports from some
developing countries. They also found a reversal trend for developed economies.
Kolstad and Krautkraemer (1993) point out the fact that there is a dynamic link
between the environment, resource use and economic activity. They argue that while
resource use (especially energy sources) yield immediate economic benefits, its
negative impact on the environment may be observed in the long run. Selecting the
period of 1971-1991, Tucker, (1995) looked at changes in CO2 versus income in yearly
cross-sectional analyses. The study found that the changes in CO2 emissions are
clearly related to changes in oil prices, but does not incorporate them into the analysis.
The study by Jean Agras & Duane Chapman, (1998), takes into account the price of
energy. This study highlights the importance of prices and then includes it in an
econometric EKC framework testing energy-income and CO2-income relationships.
These long-run price-income models find that income is no longer the most relevant
indicator of environmental quality or energy demand. In a study by Suri & Chapman,
(1998), examined the sources of commercial energy consumption, which is the root
cause of serious environmental problems. It was found in the study that while both
industrializing and industrialized countries have added to their energy requirements
by exporting manufactured goods, the growth has been substantially higher in the
former. At the same time, industrialized countries have been able to reduce their
energy requirements by importing manufactured goods. The Exports of manufactured
goods by industrialized countries has thus been an important factor in generating the
Gravity
Page | 171
upward sloping portion of the EKC and imports by industrialized countries have
contributed to downward slope.
Joy O Kadnar, (2004) in his research based on the energy consumption patterns, a
model to predict the future short-term fossil fuel energy needs, using the relationship
between consumption, population growth and real gross domestic. product (GDP) for
two situations (zero or no growth and a 5% sustained economic growth), was
developed for Central Asian economies and obtained mixed results. In a study
conducted by Wietze Lise & Kees Van Montfort, (2006), tries to unfold the linkage
between energy consumption and GDP by undertaking a co integration analysis for
Turkey with annual data over the period 1970–2003. The analysis shows that energy
consumption and GDP are co integrated. This means that there is a (possibly bi-
directional) causality relationship between the two.
The study organized Ugur Soytas and Ramazan Sari, (2007) investigates the
long run Granger causality relationship between economic growth, CO2
emissions and energy consumption in Turkey, controlling for gross fixed capital
formation and labor. The most interesting result obtained in the study is that
carbon emissions seem to Granger cause energy consumption, but the reverse is
not true. The lack of a long run causal link between income and emissions may
be implying that to reduce carbon emissions, Turkey does not have to forgo
economic growth.
When it comes to similar studies by Antonio Focacci (2005), which proposes an
empirical analysis concerning the environmental and energy policies in Brazil,
China and India. The study includes ratio analysis using two key ratios namely,
emission intensity ratio and energy-intensity ratio to relate to EKC model. The
study results show mixed results with respect to application of Environmental
Analysis Potential of Internet Advertising on College going Youth of Indore City
Kuznets Curve model for these three economies. It shows that resulting trends
in these three countries are different from the other developing countries. All
the research studies suggest that the ever increasing
Objectives:
The objectives of the research are as follows:
1. To study the related literature to develop a conceptual framework.
2. To study the Impact of Economic Growth on the carbon emission levels.
Hypothesis:
Ho: The major hypothesis of the research is that GDP growth has impact on CO2
emissions in India.
Research Methodology:
The research is descriptive in nature and is forming a positive frame work. Data used is
secondary and has been purchased from CMIE via NASDOC, New Delhi. To assess the
movement and impact regression with enter method has been applied. The data has
been tested for Durban- Watson test also to affirm the use of regression.
Results:
Upon calculating correlation between the variables using Karl Pearson‘s coefficient of
correlation the values
The value of r came out to be +0.80 which is highly correlated and show interrelation
among the variables. This means that with the rapid industrialisation and growth in
per capita income the carbon emissions are also
Gravity
Page | 173
growing. This is sometimes evident from the fact that automobile market of India is
currently one of the biggest markets and Industrial growth of India just second to
china which is also facing the same issues.
Upon the application of Durbin Watson test:
The value of d came to be 2(approximately), Here T is the number of observations.
Since d is approximately equal to 2(1-r), where r is the sample autocorrelation of the
residuals, d = 2 indicates no autocorrelation. The value of d always lies between 0 and
4. If the Durbin–Watson statistic is substantially less than 2, there is evidence of
positive serial correlation. As a rough rule of thumb, if Durbin–Watson is less than 1.0,
there may be cause for alarm. Small values of d indicate successive error terms are, on
average, close in value to one another, or positively correlated. If d > 2 successive error
terms are, on average, much different in value to one another, i.e., negatively correlated.
In regressions, this can imply an underestimation of the level of statistical significance,
the value of d is satisfactory and it is reliable to conduct regression
On the applying regression by enter method
The model thus generated is:
Percentage Change in Carbon Emissions Per Capita= 0.02+0.22*
Percentage Change In GDP
Conclusions:
Analysis Potential of Internet Advertising on College going Youth of Indore City
The high correlation among variables shows that GDP and CO2 emissions are moving
hand to hand. It also means that the EKC hypothesis to a very large extent can be
accepted. This is very alarming and India might have to face serious repercussions. It is
very urgent to develop a control over the proposed variables. The model suggested is
very preliminary and an advanced model keeping into mind various other variables
should be developed. Similar studies in china showed similar results and delay in
action has caused china serious ecological issues in some of its provinces. This could
cause more pressure to environment of the country which would ultimately put
impact on agriculture which happens to be the main work generation sector and major
contributor to the economy.
References:
Low, P., Yeats, A., 1992. Do dirty industries migrate? In: Low, P. (Ed.), International Trade and the
Environment. World Bank Discussion Papers No. 159, Washington, DC.
Tucker, M., 1995. Carbon dioxide emissions & global GDP. Ecol. Econ. 15 (3), 215–23.
Jean Agras & Duane Chapman, 1998, A dynamic approach to the Environmental Kuznets Curve
Analysis Potential of Internet Advertising on College going
Youth of Indore City
Nidhi Sharma Assistant Professor, Prestige Institute of Management and Research, Indore|
Gaurav Singh Chouhan Student Prestige Institute of Management and Research, Indore| Shesh
Raman Sharma, Student Prestige Institute of Management and Research, Indore | Jashndeep
Singh Bagga, Student Prestige Institute of Management and Research, Indore
Abstract:
As one of the fastest growing economies in the world, India presents a lucrative market to companies all over the globe. The Indian advertising industry has evolved from being a small scale business to a full-fledged industry. Rapid developments in the technology and growing base of empowered customers have redefined how advertising is created, sold, consumed and evaluated. Advertising on internet is emerging niche medium with some peculiar creative capabilities and constraints. India has got the highest youth population in the world. It‘s the youth who is tech savvy and is spending time on internet especially on the social networking sites. The purpose of the study is to analyse the potential of Internet Advertising on College going youth of Indore city. It is an empirical study where self structured questionnaires have been used to collect the primary data. The survey was conducted on 100 people falling in the age bracket of 17-22 years.
Introduction:
As being incorporated or associated with the marketing process, advertising finds its
position in every organization. Advertising can be defined as another strategy as an
approach towards competitive advantage. Various advertising concepts are in the
Analysis Potential of Internet Advertising on College going Youth of Indore City
stream of the media and papers but still there is a little evidence that advertising can
significantly help the organization boosts its performance. In terms of sales, it is true
that the application of the marketing and its associate strategies can gain the
consumers‘ trust and loyalty, and in return, can enjoy the benefits of the market share.
Advertising is the mechanism used to create a desire for different products in the
minds of the customers. Jhally (1987) considers advertising is working to create a false
need among the consumers and in fact such needs are of the manufacturers rather than
the consumers. However this view is refuted by the advertising professionals by
pointing out that the purpose of advertising is to inform the public about the
availability of the products in the market. On the contrary Campbell (2000) the
consumers do not merely act on the basis of advertising but use their discretion makes
their decisions on a purposeful manner. Just like the consumption of material items,
advertising has the ability to solve the problems being encountered by the consumers
with respect to the products and it also guarantees the consumers that emotional
happiness and well-being within the act of consumption (schlosser et al. 1999)
The Internet as a marketing medium offers many unique challenges to marketers. To
assist marketers in their venture on-line, comparisons and contrasts to existing
marketing theory have been used to build a conceptual understanding of the current
state of the Internet and its implications for consumer transactions (cf., Hoffman and
Novak, 1996a; Hoffman, Novak and Chatterjee, 1995; Schlosser and Kanfer,
forthcoming). Despite the limited understanding of how consumers judge Internet
Advertising, there has been substantial commercial growth on the Internet of many
forms of advertising, resulting in estimated revenue of $301 million, with a projected
growth to $7.7 billion by 2002. Indeed, spending on IA totalled an estimated $129
million in the first quarter of 1997, with an estimated 92% increase in IA spending for
top 25 industries during the first quarter of 1998. In addition to anticipating the
Gravity
Page | 179
monetary growth of the Internet, the majority of on-line businesses believe the
Internet is here to stay and will generate sales in the future.(Schlosser et al., 1999)
According to consumers, Internet Advertising includes many forms of commercial
content—from electronic advertisements that are similar to traditional advertisements
(e.g., billboards, banner ads) to formats that are different from traditional
advertisements, such as corporate Web sites (Ducoffe,1996). Most of the direct-
response measures administered to consumers have assessed consumers‘ perceptions
and usage of the Internet and its services. Mehta and Shivdas in 1995 assessed Internet
user‘s attitudes toward advertising on newsgroups and through e-mail. The study
revealed that consumers held negative attitudes toward newsgroup and e-mail
advertising, even when the message was directly relevant to the special interests of the
group. However, their sample was limited to those who posted messages to the group.
Those who merely read messages were not included in the sample. As a result, it is
possible that these unfavourable attitudes are due to this vocal sample‘s perception
that they are competing with electronic advertisements for the group‘s attention.
In addition, attitudes toward newsgroup/ e-mail advertising may not generalize to all
forms of Internet Advertising, including less intrusive ads (such as Web sites).
Consequently, it is unclear whether the results would generalize to the entire Internet
population‘s attitudes toward IA in its many forms. The interactive nature of Internet
advertising is useful to advertisers only when consumers are willing to interact with
an advertising message. Consumers‘ willingness is often manifested by their search
behaviour in terms of selection of certainicons, breadth and depth of search, and the
amount of search time. Thanks to the multi-layer tree-like structure of Internet
advertising, consumers can search product information easily and
interactively.(Schlosser et al. 1999)
Analysis Potential of Internet Advertising on College going Youth of Indore City
Online advertising is steadily seeing growth in India. Though broadband Internet
penetration is growing at snail‘s pace, Mobile internet figures are rising at breakneck
speed, which augurs well for online advertising growth in India. Internet & Mobile
Association in India (IAMAI), recently released a report which pegs text and display
advertising growth at Rupees 993 crores in the financial year 2010-2011 from Rs 785
crores in the financial year 2009-2010. Online Display advertising grew at about 28
percent, while online text advertising registered 26 percent growth. It is interesting to
note that display advertising is currently at growth stage in India, while globally
display advertising growth is on a decline after hitting a peak few years earlier. It is
quite surprising that pop-up and pop-under are still doing very well in India, whereas
globally one rarely sees them. Mature Internet markets like U.S and UK are relying
more on Video Ads and Social interactive kind of advertising models where ROI is
more robust and leads are far more qualified.(Prabhudesai n.d.)
Just four years from now Display advertising will be witnessing a sea-change – Half of
all theads that you will see will be Video Ads. This is one of the predictions that
Google has made during the keynote address at the Interactive Advertising Bureau‘s
MIXX Conference in New York, entitled ―Display 2015: Smart and Sexy.‖
The rise of Social Media will also have great impact on the future of Online Display
advertising – Google predicts that 75 percent of all ads will contain some sort of social
element in it.
Google Predictions on Display Advertising in 2015 that 50 percent of ad campaigns
will include video ads bought on a cost-per-view basis (that means that user will have
choice whether to watch it or not).Today, advertisers are starting to deliver ads that
are tailored to particular audiences. Many are using real-time bidding technology; so
that they can bid on the ad space that they think is most valuable. In 2015, 50 percent
of these ads will be bought using this real-time technology. Mobile is going be the
Gravity
Page | 181
number one screen through which users engage with advertisers‘ digital brands. By
2015, there will be five metrics that advertisers commonly regard as more important
than the click. In 2015, 75 percent of ads on the web will be ―social‖ in nature—across
dozens of formats, sites and social communities. In 5 years‘ time more than 50 percent
ads will be in Rich media formats which currently stand at mere 6 percent of total
display ad impressions. This will enable far greater creativity and interaction between
users and advertisers. Display advertising will grow to a $50 billion industry in five
years.(Prabhudesai 2010)
Literature Review
Advertisements today are considered as one of the best tool to reach the consumers.
Business professionals try hard to beat the competition and meet their long term goals
with the help of Advertising. The use of advertising within an organisation is
interestingly growing and various researchers value its importance as an important
factor that can influence the buying behaviour of the consumers. The researchers have
tried to understand the role of advertising within the organisation and as part of the
marketing. They have also tried to find the level of influence that the advertisements
can create to manipulate or influence the buying behaviour of the consumers. The role
of advertising changes unto what the organisation wants them to do. There were times
that an organisation used the advertising to help them survive from the impact of
economies trends, still the economies believe that advertising plays a significant role
on the consumer behaviour. Anon (2011)
Using a model adapted from the research of Pollay and Mittal (1993) which details the
primary structure of beliefs and attitudes about advertising in general. It focuses on
advertising messages delivered in an electronic marketplace. Thus, advertising
attitudes have been defined herein as either macro-level societal beliefs about
advertising, or micro-level personal beliefs about advertising. These dimensions are
Analysis Potential of Internet Advertising on College going Youth of Indore City
defined in the research by the following functions of Internet advertising: product
information, social role and image, hedonic and pleasure, and good of advertising for
the Internet economy. Internet users overall attitudes to advertising in general are also
examined. The Internet originated as a communication channel, evolving from
communication needs, where distributed computer networks provided the
infrastructure to share information for work, or educational purposes. Nevertheless,
electronic commerce emerged in the early 1990s, impacting on the previously ‗free‘
channels of communication on the Internet. Current Internet market research is
dominated by online demographic research. However, given the increasing commercial
‗push‘ of Internet technologies, there have been limited research published detailing
Internet users‘ attitudes to commercial, or business activity. To date, research about
the impact of new technology on marketing paradigms lacks a consumer-based
perspective. The research undertaken in this study will begin to bridge this gap and
investigate how Internet consumers perceive the practice of traditional commercial
techniques in electronic media. In this research it was found that the information or
the advertisements on the Internet provides the users about product information and
keeps them up to date (60% users). According to this paper Internet advertising had a
negative effect on the internet users. Only 20% of the users saw advertising as
essential.(Previte n.d.)
According to byeong –Joon Moon The model that they prepared in their research
which was ―consumer adoption to the internet as an information search and product
purchase channel‖ tried to understand the factors that influence consumers to adopt
the internet instead of traditional channels for information search and product
purchase. The authors reviewed previous established theories on consumer decision
making in offline environments and research findings regarding consumer decision
making in online environment. The authors embraced the contingent consumer
decision making model provided by bettman et al. and classified the factors that
Gravity
Page | 183
influence consumers to use online channels instead of traditional channels into three
groups – person, problem, and context.(Joon moon 2004)
Josephine Previte in their empirical research has tried to explore internet consumers‘
attitude to the rise of commercialisation and specifically, the increase in advertising on
the internet. Their paper investigates consumers‘ attitudes to commercialisation of the
internet, and specifically focuses on internet user‘s belief and attitudes about internet
advertising. Is there a relationship between internet advertising consumers‘ attitudes
to advertising on the internet and their online experience with new technology? The
major findings from the research identified the existence of relationships between
attitudes towards advertising and online experience. Internet users with ‗one year or
less‘ experience (newer users) have a less negative attitude to advertising on the
Internet than users with four or more years experience (older users).Differences are
apparent between new and older users on issues concerning advertising‘s function and
role in providing product information, social role and image of advertising, and like or
dislike of Internet advertising. Internet users have strong negative attitudes toward
advertising in general and the societal effects of advertising, in particular.(Previte n.d.)
According to Ann E. Schlosser, Sharon Shavitt and Alaina Kanfer, despite the lack of
consistency across reports of the Internet population‘s demographic profile, there
appears to be consensus that the Internet population is predominantly male, young,
well educated, and affluent. Such demographic characteristics also appear to affect
attitudes toward advertising. That is, previous research has demonstrated that gender,
age, education and income impact consumers‘ judgments of and beliefs about
advertising. For instance, according to a recent survey, better-educated, wealthier
consumers hold less favourable attitudes toward advertising than less-educated,
lower-income consumers do. Based on demographics alone, this would suggest that
the Internet population would judge advertising (in general and on the Internet)
relatively unfavourably. In order to gauge whether attitudes toward IA can be
Analysis Potential of Internet Advertising on College going Youth of Indore City
attributed to the unique demographic profile of Internet users rather than advertising
on the Internet. Internet advertising judgments has been compared to General
Advertising judgments of a sample weighted to match the demographics of the
Internet respondents. The results are due to the demographic composition of Internet
users rather than how IA is uniquely perceived relative to traditional advertising. It is
observed that Internet advertising may be rejected add times then General
Advertising. (schlosser et al. 1999)
Kenneth C.C. Yang has learned from various studies in the past that consumer
motives affect how they will use media and media contents. The study by the authors
explores effect of consumer motives on their search behaviour using internet
advertising. The study employed a 2 by 2 between subjects factorial experiment
design. A total of 120 subjects were assigned to an experiment condition that contains
an internet advertisement varying by advertising appeals(i.e., rational v/s emotional)
and product involvement levels (high vs. low). Consumer search behaviour (measured
by the depth, breadth, total amount of search), demographics, and motives were
collected by post experiment questionnaires. Because all three dependent variable
measuring search behaviour were conceptually related to each other, MANCOVA
procedures were employed to examine the moderating effects of consumer motives on
the dependent variables in four product involvement advertising appeal conditions.
Results indicated that main effects for product involvements and advertising appeals
were statically significant. Univariate ANOVA also showed that advertising appeals
and product involvement levels influenced the total amount of search. Three way
interactions among advertising appeal, product involvement levels, and information
motive were also statistically significant results indicated that consumer motives
influenced their total amount of search using the test advertisements.(Yang 2004)
For the majority of people exposure to advertising is as normal as breathing, eating or
sleeping. It is a bit like living near a main road eventually you learn to block out the
Gravity
Page | 185
noise. The same applies to advertising except that it is not only noise, but a constant
visual reminder of how we should look, feel and live. For example we are now exposed
to an estimated 3500 advertising images a day. We tend to block out the majority of
images because they become background noise – but they still have an impact on us
(zoubkov, et al 2004)‖Electronic media has catapulted advertising and consumerism
to new levels, and the explosion of the internet brings a threat of further
advertisements over exposure. From pollution, to loss of local culture, to a surge in
mental health issues, advertisements and consumerism have laid a path of destructions
for humankind. Business and the mass media will not stop using sophisticated
psychological advertising; the question is; will humankind be able to
survive.(Robertson 2008)
The Indian advertising industry is in a phase of transition. Rapid advances in
technology and an ever growing base empowered customer have redefined how
advertising is created, sold, consumed and evaluated. At this juncture advertisers are
experimenting with a number of emerging platforms including internet which has
been acknowledged as an interactive medium with a lot of advertising potential.
Advertising on the internet offers many unique opportunities that are not possible
with conventional media. It provides a better understanding of the consumers in a
more realistic way so that the advertisers employ personalisation in their promotion
campaign on individual basis. As a result, media planners include internet as the most
preferable medium to reach target audience with the appealing messages. At present
advertisement on the internet has become the most significant development within
the industry. Internet advertising leads to active participation of consumers by
sending a clear message to consumers. It also turns potential consumers into actual
consumers by promoting materialism and stimulating consumer needs. The present
study is an attempt to measure the impact of occupation on consumer demand of
internet advertising. (Nagar et al. n.d.)
Analysis Potential of Internet Advertising on College going Youth of Indore City
Objectives of the Study:
1. To study the variables affecting Internet Advertising.
2. To develop a model for analysing the potential of Internet Advertising
among College going Youth.
Research Methodology
This Research has adapted questions to convey information about the Impact on
Internet users of Advertising via Internet and its effect on their purchasing
behaviour. A quantitative social survey approach is utilised and questionnaires
have been distributed to students of few colleges in traditional paper format.
The research type which is used is exploratory in nature .This genre of research
simply allows the marketer or a researcher to gain a greater understanding of
something that he/she doesn’t know enough about. In the research we are trying
to find out the potential of Internet Advertising on College Youth of Indore
City. Primary data is collected through self-structured and close ended
questionnaire. The sample of the study was constituted of 100 respondents from
various management colleges of Indore city.
Tool for data analysis
The analysis of collected data was done by a software statistical package for
social sciences (SPSS) version 17.0 for windows and MS excel 2010. We have
Gravity
Page | 187
used multiple regression method to analyse the hypothesis. We have tested the
following hypotheses.
Ho: Potential for internet Advertising exists.
Reliability of measures
Reliability of the measures was assessed with the use of cronbach alpha.
Cronbach alpha allows us to measure the reliability with different variables .as a
general rule a coefficient greater than or equal to 0.7 is considered acceptable
and is a good indicator of reliability. The cronbach alpha for the questionnaire
is 0.78. Hence it is reliable and can be used for the analysis.
Findings:
After applying multiple regression taking into consideration that CSE (Credible
Sales Enhancement) is dependent. We found that R=.453 which is low but also
show that the potential exists. On the application of Durbin-Watson test, we got
a result of 1.74 which is very favourable and process our hypothesis that
‘potential for internet advertising exists’.
Analysis Potential of Internet Advertising on College going Youth of Indore City
Upon the examination of the model we find that var1 and var8 needs special focus
while var2, var4 and var6 need controlled management decisions. Same way var3, var5,
var7 and var11need an enhanced approach so as to achieve controllable and sustainable
CSE since the objective of the advertising is to achieve credibility along with sales
enhancement.
Scope and limitations
This report has taken into account the importance of internet as a method of
advertising which has scope of further research. Marketers must focus on various
different factors as discussed earlier to enhance the effectiveness of Internet
advertising on the college going youth. The aim of the research was to analyse the
potential of Internet Advertising on College going youth in Indore city. The limitation
of the study is the model prepared is preliminary and quantitative. Hence indepth
study is required for enhanced model that can be used for various managerial
decisions.
Conclusion
To date, limited empirical research has been undertaken to explore the Internet
consumers‘ attitudes to the rise of commercialisation and specifically, the increase in
Analysis Potential of Internet Advertising on College going Youth of Indore City
advertising on the Internet. In this study various college going students have been
surveyed to find out the potential of internet advertising. The study reveals that
college going youth is not very attentive to the advertisements poping up on the
internet. But at the same time, it implies that there is huge potential in this field and
hence the marketing managers must exploit this opportunity to induce more creativity
in the advertisements and make them more interesting and appealing to the youth.
The model developed in this paper will be studied vigorously to produce an enhanced
model that will provide both academic and practical benefits to the advertising
industry, marketing academics and practitioners by contributing to a better
understanding of the emerging digital consumer.
REFERENCES:
Anon, Impact of advertising on consumer buying behaviour research proposal paper. Available at: http://www.essaythesis.net/2011/04/impact-of-advertisement-on-consumer.html.
Prabhudesai, Arun, Indian Online Advertising market to grow at 26.5% – BFSI
Leads…. Available at: http://trak.in/tags/business/2010/12/18/indian-online-advertising-
market-growth/ [Accessed March 16, 2011].
Prabhudesai, Arun, 2010. online display advertising 2015: google predictions. Available