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BUSINESS RESEARCHMINOR PROJECT

Penetration of Online shopping in Delhi

OVERVIEW

The Indian retail market is witnessing a revolution. The growth of internet has enabled the new retail format of the virtual retailer to emerge and forced the existing retailers to consider e-tailing model of retailing as well.

Companies are using the Internet technologies to reach out to customers and to provide a point of contact 24 hours a day, 7 days a week.

OVERVIEW

E-commerce can be defined as a way of conducting business by companies and customers performing electronic transactions through the Internet.

E-marketing, (also known as Internet Marketing, Web Marketing, and Online Marketing etc.) can be defined as the promotion of products or services through the Internet.

E-tailing can be defined as selling products and services by using the Internet.

BENEFITS OF E-TAILING

There are several attractive attributes of Internet to not only e-customers but also companies on time and money saving, communicate, convenience, easy accessibility, selection from a wide range of alternatives, and the availability of information for making decisions and all marketing activities can be performed via the Internet efficiently.

THE INDIAN ELECTRONIC RETAIL MARKET The electronic retail growth of Indian market

as estimated by Euro-monitor report, has already touched Rs. 2700 crores in the year 2010 and is expected to grow phenomenally in the years to come.

However, for internet retailing to realize its potential in India it must first overcome the certain challenges.

IMPEDIMENTS TO GROWTH OF ONLINE SHOPPING IN INDIA Indian retailers do not seem to consider their online stores

as a serious source of sales generation and therefore have not created enough online inventory, pricing information and in some cases even the ability to make an online purchase.

Trust deficit with online payments is a significant challenge for companies operating in the online ecosystem.

Mall recreation is still a novelty especially in Tier II and Tier III cities.

Lack of standardization especially when it comes to products like apparel.

Low internet and broadband penetration is a problem. Customer experience at most websites can be at best

rated as average when measured for ease of navigation, time to load, presentation and quality of graphics, availability of inventory, pricing information and ability to purchase.

CHALLENGES FACED BY INDIAN E-TAILERSDespite a higher Internet penetration, cities like Mumbai or New Delhi might not be a haven for an e-tailer. For things like grocery, there is a shop out there at every nook and corner. All that an individual has to do is just make a phone call and the goods are delivered at his doorstep. Thrown in along with free home delivery is a month's credit.In case of perishables such as fruits and vegetables, the Indian buyer prefers them farm-fresh. So what he does is while returning from work, they drop in at the vegetable market and complete their purchases. Another reason is cheap labour. Thanks to easy availability of domestics help quite a few of the rich customers hire them for doing domestic chores which include shopping. Most importantly, the usual Indian aversion to use credit cards. Thanks to low penetration of credit cards and the lack of popularity of debit cards, e-tailing might find it an uphill task to catch on. Elder citizens are averse to using even the computer.

RESEARCH TOPIC CHOSEN

Penetration of Online Shopping

in Delhi

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY To estimate the percentage of Internet users in

Delhi who engage in Online shopping. To establish the list of products most frequently

purchased online by these consumers. To enlist the most popular e-tailers among this

consumer segment and to understand the factors behind their success.

To understand the factors contributing to non-popularity amongst other consumers.

LITERATURE REVIEW

A BUSINESS REVIEW OF E-RETAILING IN INDIAV.SRIKANTH & DR.R.DHANAPAL

Objectives of the study:This study seeks to present A quick journal about e-Retailing concepts.How an organization can start e-Retailing business quickly. Pro’s & Con’s of e-tailing, How to make the e-Retailing venture successful. How retailers should leverage the internet technology.How to incorporate traditional retail practices with Internet technology

A BUSINESS REVIEW OF E-RETAILING IN INDIAV.SRIKANTH & DR.R.DHANAPAL

Findings of the study:All basic information about e-Commerce specific to e-Retailers has been reviewed.The challenges, advantages and disadvantages have been discussed. The government’s role in resolving all barriers for e-commerce growth in order to create opportunities for private, public participation in infrastructure development has been brought out.

E-TAILING: TAPPING THE CUSTOMERS ONLINEGAGANDEEP SINGH

Objectives of the study:This study seeks to discuss the present scenario of e-tailingthe benefits & goals of e-tailinghow it is different from traditional retailing how it can be used effectively. the business models of e-tailing along with the future prospects e-Retailing concepts.

E-TAILING: TAPPING THE CUSTOMERS ONLINEGAGANDEEP SINGH

Findings of the study:The trends that will define the future of e-tailing have been discussed viz.The increased use of Internet and gadgets like blackberries and web enabled mobile phones.The rise of a new Indian Middle class . Increased use of Net banking/credit cards/ debit cards The decision making power of Indian women . Emerging Rural India.Social Networking.

E-TAILING IN INDIA: ITS ISSUES, OPPORTUNITIES AND EFFECTIVE STRATEGIES FOR GROWTH AND DEVELOPMENT DR. SUMAN KUMAR DAWN; UTTIYA KAR

Objectives of the study:To provide a clear picture about the e-tailing in India and its various issues , opportunities.To draw an effective e-tailing strategy in India based on the detailed survey of e-tailing companies .

E-TAILING IN INDIA: ITS ISSUES, OPPORTUNITIES AND EFFECTIVE STRATEGIES FOR GROWTH AND DEVELOPMENT DR. SUMAN KUMAR DAWN; UTTIYA KAR

Findings of the study:The main suggestions made by the study for e-tailing business in India are: Customer care should be a top priority as with leading online companies. Online customers are more aware, more sensitive and therefore more difficult to retain.

The industry should ensure that customers must feel safe and secure while transacting online.

INDIAN RETAIL REVOLUTION- A RESEARCH ANALYSIS CARRIED OUT IN THE DELHI REGION DR VIPUL JAIN

Objectives of the study:To explore the retail revolution in the Delhi Region To identify the factors in revolution of retail. To identify the gender preference of retail departments. To find the existing customers of retail. To explore the reasons behind attracting customers toward retail stores.

INDIAN RETAIL REVOLUTION- A RESEARCH ANALYSIS CARRIED OUT IN THE DELHI REGION DR VIPUL JAINFindings of the study:There can be various motivational factors that act as a driving force in the preference of retail stores. Eight factors were studied:

Customer service Brand value Variety or the merchandise displayed Convenience Quality Ambience Ad Promos Discounts

It was also realized that customer service is the strongest factor for both men and women. Age group of customers is also a deciding variable in customer services.

FACTORS AFFECTING USER'S ONLINE SHOPPING BEHAVIOR:INTEGRATING THE CONSTRAINT-BASED AND DEDICATION-BASEDRELATIONSHIP PERSPECTIVESSU-CHAO CHANG AND CHI-MIN CHOUObjectives of the study:To examine the relationship between the antecedents and consequences of both dedication-based and constraint-based factors on information systems post adoption using online shopping as an example.

FACTORS AFFECTING USER'S ONLINE SHOPPING BEHAVIOR:INTEGRATING THE CONSTRAINT-BASED AND DEDICATION-BASEDRELATIONSHIP PERSPECTIVESSU-CHAO CHANG AND CHI-MIN CHOUFindings of the study:The antecedents of constraint-based influences - the effectiveness of online shopping websites (perceived operational competence and communication) and the perceptions of online shoppers’ closeness in the relationship (customer relationship investment and perceived cohesion) - have indirect positive effects on online shoppers’ continuance intention toward online shopping websites, as mediated by their trust in the online shopping website and their perceptions of the switching cost.

Findings of the study:The constraint-based influences have a more significant effect than dedication-based influences (satisfaction and perceived usefulness) on the continuance intention toward online shopping websites.The antecedents and effects of both constraint-based and dedication-based influences on online shoppers’ continued online shopping behavior were verified. The causal relationship between perceived cohesion and trust as well as relationship investment and perceived switching costs in the e-commerce setting was validated.

FACTORS AFFECTING USER'S ONLINE SHOPPING BEHAVIOR:INTEGRATING THE CONSTRAINT-BASED AND DEDICATION-BASEDRELATIONSHIP PERSPECTIVESSU-CHAO CHANG AND CHI-MIN CHOU

WEB-BASED SHOPPING: CONSUMERS’ ATTITUDES TOWARDS ONLINESHOPPING IN NEW ZEALANDGURVINDER S SHERGILL & ZHAOBIN CHEN

Objectives of the study:To explain and predict consumers’ purchase behavior.To understand perception of users about online shopping-difference between people buying online and people not buying online.To understand consumer’s perceived risks associated with online shopping.

WEB-BASED SHOPPING: CONSUMERS’ ATTITUDES TOWARDS ONLINESHOPPING IN NEW ZEALANDGURVINDER S SHERGILL & ZHAOBIN CHEN

Findings of the study:Regular online buyers were much more satisfied with website variables and website factors than the other online buyers. On the other hand, trial online buyers had the poorest perception of online shopping.This research indicates that the least satisfying aspect to buying online is still website security/privacy.Many New Zealand online purchasers are less satisfied with the website design. This factor scored the second lowest mean of 3.35 in this survey.Different types of online purchasers (i.e., trial, occasional, frequent and regular online buyers) have different evaluations of website designed website reliability/fulfilment.

ONLINE SHOPPING ACCEPTANCE MODEL — A CRITICAL SURVEY OF CONSUMER FACTORS IN ONLINE SHOPPING LINA ZHOU , LIWEI DAI & DONGSONG ZHANG

Objectives of the study:To see personal traits of online consumer.Normative beliefs of consumers.Online experience of consumers.Psychological perception about online shopping

ONLINE SHOPPING ACCEPTANCE MODEL — A CRITICAL SURVEY OF CONSUMER FACTORS IN ONLINE SHOPPING LINA ZHOU , LIWEI DAI & DONGSONG ZHANG

Findings of the study:Mixed results for the effects of Internet usage on online shopping intention. Internet usage is negatively related to perceived product risk.Comfort level has a positive relationship with online shopping tendency. The influence of friends, family, and media recommendations on the tendency for online shopping is mixed. Positive emotions have positive influence on online shopping intention in some countries. Purchasing apprehensiveness is negatively related to the amount of money spent online

GLOBAL TRENDS IN ONLINE SHOPPINGA NIELSEN GLOBAL CONSUMER REPORT JUNE 2010

Objectives of the study:To look at how consumers shop online .What consumers intend to buy, how they use various sitesThe impact of social media and other factors that come into play when they are trying to decide how to spend their money

GLOBAL TRENDS IN ONLINE SHOPPINGA NIELSEN GLOBAL CONSUMER REPORT JUNE 2010

Findings of the study:Online reviews and peer recommendations also played a key role for shoppers researching future purchases of consumer electronics, cars and travel.Koreans who shop online are most likely to buy books, cosmetics, clothing/accessories/shoes and groceries via the Internet.Online consumers in New Zealand, Australia, Malaysia and Hong Kong allocate the least. And one-fifth of online Indian shoppers plan to buy non-downloadable music. Almost half (47%) of online consumers indicate they have never made an online purchase.

ONLINE CONSUMER RESEARCHALLEN AND OVERY

Objectives of the study:To understand online shopping behaviour.Establish the extent to which online shopper are aware of legal framework that relates to their purchases and how frequently the refer to the terms and conditions.Access the potential effect of new Europe wide contract law

ONLINE CONSUMER RESEARCHALLEN AND OVERY

Findings of the study:The majority of online users are frequent users.Many of them are already shopping online from companies based abroad.Confidence in online shopping is linked to experience.

EBAY.IN CENSUS 2011Objectives of the studyThe eBay Census Guide, now in its fourth year,is an annual eCommerce report that captures what Indians are shopping for online across domestic trade as well as imports & exports.

EBAY.IN CENSUS 2011Findings of the studyFive key trends that come into play over 2011 & beyond influence the eCommerce purchases captured in eBay CensusWomen are becoming increasingly active in shopping online and this is leading to a change in the product mix with lifestyle categories becoming prominent.Savvy online shoppers are buying the hippest fashion & hottest gadgets from eBay sellers across the globe.Rural & Bharat (Tier 2 and Tier 3 Cities) are now firmly on the eCommerce map & the key driver is access to products not available in their city or town.

EBAY.IN CENSUS 2011Findings of the studyWith the growing penetration of mobile internet & 3G networks , consumers are now accessing the web on their mobile devices & the smart phone is the new online store for consumers to browse, compare & buy leading to shopping on the go, anytime, anywhere.The Indian seller is very entrepreneurial & does not just trade with consumers across the country but also exports a variety of hand crafted goods to global buyers across the world.

FACTORS AFFECTING E-TAILING WEBSITE EFFECTIVENESS: AN INDIAN PERSPECTIVEANKIT SHARMA ET. ALL

Objectives of the study:To study the growth of the internet in retail market.To study the e-tailing model of retailing.

FACTORS AFFECTING E-TAILING WEBSITE EFFECTIVENESS: AN INDIAN PERSPECTIVEANKIT SHARMA ET. ALL

Findings of the study:A large number of consumers frequently use the Internet for shopping purposes but its’ not clear what drives them to shop online. This study captures the important factors affecting the success and effectiveness of e-marketing and e-retailing.

THE FACTORS THAT INFLUENCE E-CONSUMERS´ BEHAVIOUR WHILE MAKING AN ONLINE TRANSACTIONANDRES CORREA-CORTES

Objectives of the study:The purpose of this research is to investigate the factors that influence e-consumers´ behaviour while making an online transaction.To estimate the impact that swindling has over e-buyers quality's decisions and trust. It analyzes the e-buyer purchasing behaviour and understand what motivates him, what makes him trust, and what his perception about quality is.

THE FACTORS THAT INFLUENCE E-CONSUMERS´ BEHAVIOUR WHILE MAKING AN ONLINE TRANSACTIONANDRES CORREA-CORTES

Findings of the study:This study will help e-sellers to improve the online marketing strategies used to attract and keep customers loyal to the brand.The results will help determine if an online recognizable Website, or a well-known brand name, is sufficient enough to motivate and influence e-customers who have been victims of fraud.This study will definitely help e-companies to realize the harm that swindlers are doing to their businesses. The presence of a positive relation will motivate e-vendors to plan better strategies to attack swindlers and to recover the trust of conned consumers.

INFLUENCING THE ONLINE CONSUMER’S BEHAVIOUR: THE WEB EXPERIENCEEFTHYMIOS CONSTANTINIDESObjectives of the study:To analyse the factors affecting the online consumer’s behavior .To examine how e-marketers can influence the outcome of the virtual interaction and buying process by focusing their marketing efforts on elements shaping the customer’s virtual experience, the Web experience. To identify the Web experience components and understand their role as inputs in the online customer’s decision-making process. To provide a contribution to the theoretical debate around the factors influencing the online consumer’s behavior To outline some noticeable similarities and differences between the traditional and virtual consumers.

INFLUENCING THE ONLINE CONSUMER’S BEHAVIOUR: THE WEB EXPERIENCEEFTHYMIOS CONSTANTINIDES

Findings of the study:Research on the buying behavior and the factors influencing the decision-making process of online consumers has revealed similarities as well as differences between them and the traditional customers. This study identifies the main constituents of the online experience or Web experience . These three sets of factors are the main online marketing tools under the control of the e-marketer.This study identifies and classifies these Web experience components in a framework emphasizing their extend, variety and interdependence.

FACTORS INFLUENCING THE ADOPTION OF ONLINE TICKETINGMITRA KARAMI

Objectives of the study:To analyze the factors that affect the intention to purchase the train tickets through internet.To rationalize the customer intentions in terms of attitude, perceived usefulness, ease of use, subjective norms, behavioral control and trust.To increase the understanding of online consumer behavior in Iran

FACTORS INFLUENCING THE ADOPTION OF ONLINE TICKETINGMITRA KARAMI

Findings of the study:Social Factors, perceived behavioral control, attitude and trust significantly influence passenger’s intention towards adopting internet ticketing.

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