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Certificate of Completion I, Vimal Kumar Yadav, student of Shaheed Sukhdev College of Business Studies, declare that the project titled “Study of online discounting coupon industry in India” has been completed by me. The information collected for this project is authentic and has not been manipulated with to the best of my knowledge. I also clarify that the project is an original piece of work and all sources referred to have been declared. This project has not been submitted to any other organization for the award and any other Degree/Diploma. Vimal Kumar Yadav Ms Malvika Mago Dr. Poonam Verma Shaheed Sukhdev College of Business Studies 1
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Study of Online Discounting Coupon Industry in India..... Roll No 90169 Vimal Yadav

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Page 1: Study of Online Discounting Coupon Industry in India..... Roll No 90169 Vimal Yadav

Certificate of Completion

I, Vimal Kumar Yadav, student of Shaheed Sukhdev College of Business Studies, declare that the project titled “Study of online discounting coupon industry in India” has been completed by me.The information collected for this project is authentic and has not been manipulated with to the best of my knowledge. I also clarify that the project is an original piece of work and all sources referred to have been declared. This project has not been submitted to any other organization for the award and any other Degree/Diploma.

Vimal Kumar Yadav Ms Malvika Mago

Dr. Poonam VermaShaheed Sukhdev College of Business Studies

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Acknowledgement

I would like to thank all my friends for giving me their valuable suggestions to complete this research project and entire study successfully. At the outset, I express my sincere gratitude to a number of persons, who extended their co-operation to bring this project in shape.

Firstly, I express my deep gratitude to my supervisor Ms. Malvika Mago whose constant guidance, deep insight and rich knowledge helped me in the Completion of the project. The help, cooperation and patience with which she attended to queries and subsequent clarification contributed a lot to this Project Report.

I also owe debt to the people who were kind enough to contribute to thisStudy by way of expressing their views through my questionnaire.

Vimal Kumar YadavBBS3M8136/09

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ABSTRACT

With such a rapid growth in the e commerce sector in India, and still a lot of potential yet to be realized, it is important to study the blooming online discounting industry in India. The recent soar in demand for online discounts can be attributed to changes in lifestyle of the consumers, better internet reach, rise in the purchasing power etc. The phenomenal growth of companies like Snap deal, Dealsandyou has attracted global giants like Group on to enter the Indian market. This research helped us to understand the growth prospects and the challenges faced by existing Indian companies like Snapdeal, consumer behavior towards these companies and their preferences. This research studied the dependence of consumer behavior towards online discounting coupon on factors like age, income and occupation. The research focused on factors which stimulates or hinders the online purchase of coupons. It also assessed the preference of major players like snapdeal, Dealsnearyou, Khojguru, Groupon etc. and factors (like wide varieties of brands, ease of use, simple payment options and discounts).

For the purpose of research, a survey was conducted with sample size of 180 respondents, sampling unit included Student, Service, Professional, Business, Housewives and Retired.Questionnaires were sent to 180 respondents (in Delhi Ncr region) via mailers. The findings and conclusions are mentioned at the end of the report.

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TABLE OF CONTENTS

DeclarationAcknowledgementAbstract

Section 1: Introduction and background………………………………………………………………….4 What is Group Buying? History of Group Deals. Business model of group deal. Group Deal websites in India Hypothesis used for research Need for study Objectives of the research Section 2: 2.1 Literature review……………………………………………………………………………102.2 Research Methodology…………………………………………………………………….11 2.3.1 Research Type 2.3.2 Sample Design 2.3.3 Data Collection 2.3.4 Tool 2.3.5 Limitations

Section 3:

Data Analysis…………………………………………………………………………………… 14Demographic Analysis

Section 4:

Findings and Conclusions……………………………………………….. ……………………32 References………………………………………………………………………………………33 Questionnaire……………………………………………………………………………………34

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Section 1

Introduction & Background

With the advent of internet and e-commerce, a variety of new business models are coming into picture. These websites promise to provide all round experience to the customer from the fun of browsing various product/service categories to the thrill of bargaining and discounting. Traditionally, there has been a feeling of thrill associated with getting good discounts. There is a sense of achievement attached with cracking a great deal. It is this sense that e-entrepreneurs have successfully targeted upon through ‘deal sites like snapdeal, deals and you etc. The user accesses a great service with discounts of at least 80% and the company projects a friendly image to its target while raising its profile and gaining customer loyalty. The reason the business model works is precisely because it covers a very basic need in our lives: Consumers enjoy free time, get to know new places and leisure options, all at big discounts. Users can find offers that range from beauty and health treatments to restaurants, travel, entertainment, sport, etc. Also, as occurs, the limited nature of the offers makes the purchase attractive because, if thePurchase is not made in time; the chance to get the discount disappears. A variety of web sites now sell discount vouchers for services as diverse as restaurants, skydiving, and museum visits. To consumers, discount vouchers promise substantial savings - often 50% or more. To merchants, discount vouchers offer opportunities for price discrimination as well as exposure to new customers and online buzz. Best known among voucher -vendors in India is New-Delhi based Snapdeal, a two-year old startup that received a funding a $12 Million from Nexus Venture Partners and IndoUS partners in January 2014. Subsequently in July 2011 Company raised a further $40 Million from Bessemer Venture Partners, along with existing investors, taking the total investment in the company to $52 Million5. Last year, Snapdeal acquired Bangalore-based Grabbon. And recently, adopted a remote village in India and enabled clean drinking water facilities for its people by installing manual pumps. To show their gratitude, the village’s residents have decided to rename their village to Snapdeal.com Nagar.

Snapdeal, the industry in industry, is controlling 70% of the market share (Julka, 2011), the product portfolio and pricing strategy of Snapdeal is unique in nature. In general, the couponing industry caters to the service sector. With many entrant, it has become really important for respective brands to differentiate themselves from, the rest. In other words, product differentiation plays a key role in the industry.

According to the report, 4.6 million Internet users in India aged 15 and older accessed the Coupons category from a home or work computer, reaching 10.4 percent of the entire online population. SnapDeal.com, which has tripled its audience in the past year, led the category with 1.5 million visitors during the month, followed by Dealsandyou.com with 990,000 visitors and MyDala.com with 952,000 visitors

Male users dominate the deal site user base – 61.8 percent visitors are males compared to 38.2 percent females. Visitors between the ages of 25-34 accounted for the largest percentage of the

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Coupon category audience at 43 percent and were 5 percent more likely to access a coupon site compared to an average Internet user!.

What is Group Buying?

Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase. Origins of group buying can be traced to China where team buying was executed to get discount prices from retailer when a large group of people were willing to buy the same item. In recent time, group buying websites have emerged as a major player in online shopping business. Typically, these websites feature a "deal of the day", with the deal kicking in once a set number of people agree to buy the product or service. Buyers then print off a voucher to claim their discount at the retailer. Many of the group-buying sites work by negotiating deals with local merchants and promising to deliver crowds in exchange for discounts.

History of Group Buying

In 2000, with financial backing from Microsoft, co-founder Paul Allen started an e-commerce start-up called Mercata with a business plan dubbed "We Commerce". The website offered high end electronic deals to shoppers online. Individual web shoppers would sign up en-masse to buy the same product and the price of the product would fall as more people signed up to buy it. However, the website was shut down in 2001 as it could not compete with websites like Amazon.com.

Recently, group buying has been taken online in numerous forms, although group buys prior to 2009 usually referred to the grouping of industrial products for wholesale market (especially in China). Modern day online group buys are a variation of the tuángòu buying that occurs in China. Under tuángòu, an item must be bought in a minimum quantity or dollar amount; otherwise the seller will not allow the purchase. Since individuals typically do not need multiples of one item or do not have the resources to buy in bulk, group buys allow people to invite others to purchase in bulk jointly. These group buys often result in better prices for the individual buyers or ensure that a scarce or obscure item is available for sale. Group buys were, in the past, often organized by like-minded online shoppers through Internet forums. Now these shoppers have also started to leverage the group buying model for purposes of buying other consumer durables. Group buying sites are back in demand as small businesses look for ways to promote their products to budget-conscious consumers in a weak global economy. Group buying is also used for purchasing real estate properties. Real Estate Group Buying is very popular in India where websites like Group Bookings offers group deals on various properties.

Business model of Group Deal

If subscribers to a discount website are tempted by a discount offer, they enter their payment details online and wait. Once a minimum number of people sign up for the same offer, the deal is confirmed and a voucher is sent to their inboxes. Shops, restaurants and other retailers that

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partner with these discount websites have to take hefty price cuts. But it means they have instant access to a whole new group of customers. The online group buying market is fragmented among hundreds of smaller players worldwide. The model has little barriers to entry and has gained attention from shoppers and businesses alike globally. According to SmartMoney, by August 2010, there were more than 500 group-buying sites worldwide, including local sites that cater only to a single city in some instances.

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Group Deal websites in India Snapdeal is owned and managed by Wharton graduates. The₃ basic idea is to provide

platform to vendors where they can sell their unutilized inventory at cheap price. At the same time, it offers up to 90% discounts on dining, health and beauty services, branded products, travel and more thereby providing an extreme feel good factor to the customer. It charges upfront 35% of the deal from the consumer and the rest is paid by the customer directly to the vendor. Snapdeal has relied very heavily on and advertising and has been rightly called a India’s answer to Groupon.

Dealsandyou is a portal Headquartered in Gurgaon. It is a part of the Group Buying Global AG which runs leading collaborative buying websites across four continents. Its main feature is₃ Collective Bargaining Power which impacts buying behavior. It attracts larger group for shopping where shoppers can afford to shop and save. Buyers are able to obtain huge discounts on shopping. One gets a promo code on shopping from Dealsandyou, which can be redeemed at the time of actual buying. It is mandatory for the users to create their profile before they can begin shopping. This gives the portal an edge in customer relationship₃ management.

The various hypotheses that were tested were:

The use of online discounted deal is dependent on income of the respondent. Gender affects the buying behavior of consumers. Purchasing behavior of consumers is independent of occupation.

Need for study

With such a rapid growth in the e commerce sector in India, and still a lot of potential yet to be realized, it is important to study the blooming online discounting industry in India. The recent soar in demand for online discounts can be attributed to changes in lifestyle of the consumers, better internet reach, rise in the purchasing power etc. The phenomenal growth of companies like Snap deal, Dealsandyou has attracted global giants like Groupon to enter the Indian market. This research would help us to understand the growth prospects and the challenges faced by companies like Snapdeal, consumer behavior towards these companies and their preferences.

Objective:

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To study the existing coupon industry in terms of growth prospects and challenges in India in 2012-13.

To study the consumer behavior (Preference, buying and usage rate) towards coupon industry in India.

To assess the factors (like interface, payment options, variety of deals etc.) on which users evaluate the discount coupon websites.

To study the performance of major online discount coupon companies like Snapdeal,Gosasta.com,koovs.com, dealsandyou.com and onlineforshopper.com

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Section-2

Literature review

The recent proliferation of voucher discount services has garnered substantial press: a Multitude of newspaper articles and blog posts. Snapdeal's introduction of e-wallet9, battle ofE-commerce sites10, borrowing of consumer loyalty schemes by firms11 were recently talkedabout. However group - buying and voucher discounts have remained fairly untouched by theAcademic circles.

Dholakia (2011a) surveys business that offered discount vouchers through Groupon, which isAmerican group buying giant. Echoing sentiments expressed in the popular press, Dholakia(2011a) finds mixed empirical results: some business owners speak glowingly of Groupon,while others regret their voucher promotions. Byers, Mitzenmacher, Potamias, and Zervas(2011) collect a sample of Groupon offers, and use this data to estimate Groupon's deal-provision strategy. Byers, Mitzenmacher, and Zervas (2011) predicts the number of Grouponvouchers sold, and examines relationships between Groupon offers. Another theoretical workis that of Arabshahi (2011), which considers vouchers from the perspective of the voucherservice. Dholakia (2011b) talked about profitability of group buying promotions to affiliatedbusinesses developing a empirical test and a conceptual framework. Exploring the features ofthe promotional offer and employee satisfaction Dholakia(2011b) hypothesized these features toaffect customer behavior on the occasion of coupon redemption and longer term which in turnimpact profitability of the promotion.

The parsimonious framework of Bils (1989), upon which Benjamin et.al.(2011) based theirmodel, studies how prices of experience goods respond to shifts in demand. Bils (1989)Assumes that consumers know their conditional valuations for a firm's goods, but do not know

Whether that firm's goods fit until they have tried them.12 Analyzing overlapping consumerGenerations, Bils (1989) measures the trade of between attracting more first-time consumersand extracting surplus from returning consumers.

Meanwhile, much of the work on experience goods concerns issues of information asymmetry:if a merchant's quality is unknown to consumers but known to the merchant, then advertising(Nelson (1974); Milgrom and Roberts (1986)), introductory offers (Shapiro (1983); Milgrom andRoberts (1986); Bagwell (1990)), or high initial pricing (Bagwell and Riordan (1991); Judd andRiordan (1994)) can provide signals of quality. Voucher discounts, a form of discounted initialpricing, may encourage consumers to try experience goods they otherwise would have ignored.However, Benjamin et. al. identify that this effect in a setting without asymmetric informationregarding merchant quality; consumer heterogeneity, not information asymmetries, drives their

main results.13 Benjamin et. al. talk of advertising in a setting in which it serves the purpose of

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wareness, rather than signaling substantial literature has observed that selective discounting provides opportunities forprice discrimination. In the settings of Varian (1980), Jeuland and Narasimhan (1985), andNarasimhan (1988), for example, merchants engage in promotional pricing in order to attractlarger market segments.15 Similar work illustrates how promotions may draw new customers(Blattberg and Neslin (1990); Lewis (2006)), and lead those customers to become relationalcustomers (Dholakia (2006)). These results have been found to motivate the use of coupons(Neslin (1990)), especially cents-off coupons (Cremer (1984); Narasimhan (1984)). Insights ofthe literature on sale-driven price discrimination helps to analyze voucher discounting - a newsale technology.

Research Methodology

Research Design

The research type is Descriptive Research in nature. The research design used is Research undertaken with knowledge of consumer perceived and value. An attempt was made to undertake a research that would bring parity in results achieved through primary research and results that have been achieved by studies that have previously been undertaken.

Sample Design

Sampling Type: Convenience Sampling.Sampling Unit: Student, Service, Professional, Business, Housewives and RetiredSample Size: 180Time period of study: March 3, 2013- March 27, 2013

Data Collection techniques

Data Type: Data type will be primary and secondary. Primary data was collected through survey and secondary data was collected through journals and internet.

Tool: Self-administered closed ended questionnaire. Likert’s five point scale has been used to record customer preferences and nominal scale was also used. Ordinal scale wasn’t used since Google doc.through which the survey administered doesn’t support ranking.

DATA ANALYSIS

Sample Size: 180 And since, we aimed at finding out consumer behavior towards online discounted coupon industry.

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Section 3

Demographic Analysis

Gender

GENDER frequency Percent Valid percent Cumulative %

Valid Male Female Total

12060180

66.6733.33100

6733100

67100

*66.67% of respondents were male and 33.33% remaining were female. Gender distribution in terms of respondents, with 120 males and 80 females is not equal.

Age

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Age Respondents Percent

Valid 15-25 26-35 36-4546and above

106421612

602497

*The majority of respondents were from the age group 15-25 i.e. 60% people and merely 9 and 7 % from 36-45 and 46 and above depicting distribution is not normal.

Marital status

Age Respondents Percent

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Valid single In a relationship Married Divorced Widowed total

98265510180

54143110100

*Most of them were either single or married followed by only in a relationship.

Income

Age Respondents percent

Valid 0-10,000(for students) 10-20,000 20-50,000 50k-1,00,000 1-2,00,000 Above 2,00,000total

37

2542883180

28

2542162100

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*The highest no of respondents were in the income group of 20-50k followed by 0-10k and 50k-1 lac.

Occupation

Age Respondents percent

ValidStudentCorporate employeeGovernment employeeSelf employedHomemakerRetiredtotal

8849201445180

492711823100

*Student category tops the list followed by significant no of respondents’ falls under the student and corporate categories.

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Have you ever bought discounted deals?

Respondents percent

ValidYesNototal

10178180

5644100

*Almost 50 % of respondents said they NEVER bought online deals.

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Reasons for not buying the deals

Reasons Respondents percent

ValidUnsure about the qualitySize/fitting issuesDelivery hasslesCredibility of the companyDon’t have internetDon’t know how to useUnaware of such

42

372827

1118

21

191414

69

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websitesDon’t have netbanking/credit card/Debit cardOthertotal

1917

1

180

109

1

100

Frequency of purchase of deals.

frequency Respondents Percent

ValidMore than once in a weekOnce in a weekSeveral times a monthOnce in a few monthstotal

4

142958105

4

142958100

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*Out of 105 respondents who buy deals, nearly 60 % buy these deals once in a few months, 29 % buys it several times in a month and 14 % buy s it once in a week.

Preference of payments for buying online discounted deals.(MORE THAN ONE CHOICE)

Options Respondents Percent

ValidNetbankingCredit cardDebit cardCash cardsCodothers

64656330381

25252411150

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*People prefer net banking credit card and debit card the most for buying online deals.

The most preferred the categories on which you buy the discounted deals. (MORE THAN ONE CHOICE)

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Categories Percent

ValidClothingFootwearWatchesJewelleryCosmeticsMobile phone n its accessoriesHealth productsBaby productsBooks n dvdsRestaurant n eat outsEntertainment parks,concert n discosHoliday packagesSpa n gymCar n automobiles

79725129244211114461432032131

1514105582281184620

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*Mostly people shop in the categories of Clothing/apparels, foot wears and watches. Restaurant deals, mobile phone and its accessories are also popular categories amongst the respondents.

Most Preferred online discounting coupon website (MORE THAN ONE OPTION)

*Clearly, Snap Deal tops the list, followed by Dealsandyou. Khojguru and Groupon are the third and fourth most preferred choices.

Reasons behind preferred online discounting coupon website (MORE THAN ONE OPTION)

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*Best discounts ,large varities of brands and easy payment options attract the users most to visit a particular online website.

How do users came to know about the website? (MORE THAN ONE OPTION)

*Really important for the websites to choose the correct channel to reach the audience Ads on social media tops the chart followed by TV commercials, Newspapers/magazines and Radio commercials

Rate the following statements.

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I get discounted deals on a wide range of products on these websites.

*Mostly respondents agree that they find deals on a wide range of products.

One can save significant amount on these deals.

. *Respondents mostly agreed to this statement thereby suggesting that buyers feel that they save while buying these deals online.

Time and efforts are saved while buying deals from these websites.

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*Mostly respondents agree to it.

Gender is a strong predictor of buying behavior

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender * willingness 180 100.0% 0 .0% 180 100.0%

Gender * willingness Crosstabulation

willingness

TotalNo Yes

Gender Count 1 0 1

% within Gender 100.0% .0% 100.0%

% within willingness 1.3% .0% .6%

% of Total .6% .0% .6%

Female Count 24 36 60

% within Gender 40.0% 60.0% 100.0%

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% within willingness 30.8% 35.3% 33.3%

% of Total 13.3% 20.0% 33.3%

Male Count 53 66 119

% within Gender 44.5% 55.5% 100.0%

% within willingness 67.9% 64.7% 66.1%

% of Total 29.4% 36.7% 66.1%

Total Count 78 102 180

% within Gender 43.3% 56.7% 100.0%

% within willingness 100.0% 100.0% 100.0%

% of Total 43.3% 56.7% 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1.649a 2 .438

Likelihood Ratio 2.016 2 .365

N of Valid Cases 180

a. 2 cells (33.3%) have expected count less than 5. The minimum

expected count is .43.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .096 .438

Cramer's V .096 .438

N of Valid Cases 180

*Null Hypothesis is rejected.This shows Gender is not a strong indicator of purchasing behavior towards online coupons.

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Purchasing behavior of consumer towards buying online coupon is independent of age

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age * willingness 180 100.0% 0 .0% 180 100.0%

age * willingness Crosstabulation

willingness

TotalNo Yes

age 15-25 Count 39 67 106

% within age 36.8% 63.2% 100.0%

% within willingness 50.0% 65.7% 58.9%

% of Total 21.7% 37.2% 58.9%

26-35 Count 17 25 42

% within age 40.5% 59.5% 100.0%

% within willingness 21.8% 24.5% 23.3%

% of Total 9.4% 13.9% 23.3%

26-45 Count 2 0 2

% within age 100.0% .0% 100.0%

% within willingness 2.6% .0% 1.1%

% of Total 1.1% .0% 1.1%

36-45 Count 10 6 16

% within age 62.5% 37.5% 100.0%

% within willingness 12.8% 5.9% 8.9%

% of Total 5.6% 3.3% 8.9%

46 and a Count 9 3 12

% within age 75.0% 25.0% 100.0%

% within willingness 11.5% 2.9% 6.7%

% of Total 5.0% 1.7% 6.7%

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46-60 Count 1 1 2

% within age 50.0% 50.0% 100.0%

% within willingness 1.3% 1.0% 1.1%

% of Total .6% .6% 1.1%

Total Count 78 102 180

% within age 43.3% 56.7% 100.0%

% within willingness 100.0% 100.0% 100.0%

% of Total 43.3% 56.7% 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 11.932a 5 .036

Likelihood Ratio 12.731 5 .026

N of Valid Cases 180

a. 4 cells (33.3%) have expected count less than 5. The minimum

expected count is .87.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .257 .036

Cramer's V .257 .036

N of Valid Cases 180

N of Valid Cases

*Null Hypothesis rejected. Hence Purchasing behavior is not independent of age factor.

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Purchasing behavior of consumer towards buying online coupon is independent of occupation.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Occupation * willingness 180 100.0% 0 .0% 180 100.0%

Occupation * willingness Crosstabulation

willingness

TotalNo Yes

Occupation Corporate emplo Count 18 31 49

% within Occupation 36.7% 63.3% 100.0%

% within willingness 23.1% 30.4% 27.2%

% of Total 10.0% 17.2% 27.2%

Government empl Count 12 8 20

% within Occupation 60.0% 40.0% 100.0%

% within willingness 15.4% 7.8% 11.1%

% of Total 6.7% 4.4% 11.1%

Home Maker Count 4 0 4

% within Occupation 100.0% .0% 100.0%

% within willingness 5.1% .0% 2.2%

% of Total 2.2% .0% 2.2%

Retired Count 5 0 5

% within Occupation 100.0% .0% 100.0%

% within willingness 6.4% .0% 2.8%

% of Total 2.8% .0% 2.8%

Self Employed P Count 3 11 14

% within Occupation 21.4% 78.6% 100.0%

% within willingness 3.8% 10.8% 7.8%

% of Total 1.7% 6.1% 7.8%

Student Count 36 52 88

% within Occupation 40.9% 59.1% 100.0%

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% within willingness 46.2% 51.0% 48.9%

% of Total 20.0% 28.9% 48.9%

Total Count 78 102 180

% within Occupation 43.3% 56.7% 100.0%

% within willingness 100.0% 100.0% 100.0%

% of Total 43.3% 56.7% 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 17.847a 5 .003

Likelihood Ratio 21.348 5 .001

N of Valid Cases 180

a.4 cells (33.3%) have expected count less than 5. The minimum

expected count is 1.73.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .315 .003

Cramer's V .315 .003

N of Valid Cases 180

N of Valid Cases

*Hence Purchasing behavior is not independent of occupation.

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Section 4

Recommendations and conclusions

After conduction the survey the research empirically examined the consumer behavior towards online coupon industry in India. Following observations were made:

1) Out of 180 respondents who took the survey, only 101 buy these deals online. Almost 50 % of the respondents are unsure about the quality or have size issues, a significant are still not aware of these websites or don’t know how to use it. The companies must work out to reach maximum possible consumers and educate them how to use it.

2) Amongst the current players in the industry, Snap deals, Dealsandyou, khojguru and groupon are the most preferred one. However, websites like Koovs.com, shoppersonline.com are still unknown to many. This website should increase their awareness amongst the target audience.

3) Most of the respondents came to know about the website through ads on social media platforms then followed by Newspapers and magazines .These website should focus on these channels more especially less known brands like Koovs.com and onlineforshoppers.com. However, channels like Metro/taxi /bus should also be focused upon.

4) The categories of products deals like on clothing/apparels, watches, jewelry, cosmetics, Restaurant deals are the most famous one but the website needs to focus on products like Health products, cars and automobiles.

LIMITATIONS OF THE STUDY

The authenticity of the suggestions and recommendations depend upon the rationality of the data collected/ searched by me.

The study has been undertaken with a small sample size based in Delhi and hence the results cannot be generalized

Some of the responses may be biased as a result of filling of questionnaires with lack of time or in the presence of peers.

The information provided by the respondents may not be true. There is no measure to check out whether the information provided by the respondents is

correct or not. Since long questionnaires result in respondent fatigue and resistance and poor-quality data, to

avoid this not all the aspects of the topic could be taken into consideration and it represented only a summary picture in some aspects.

While doing the analysis of the findings, some of the responses had to be clubbed together as

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they were interrelated. Since the questionnaires were administered online, selectivity of audience could not be adhered

to strictly; resulting in unequal number of respondents of different age groups. Similar limitation for occupation as well.

Bibliography

http://www.slideshare.net/amathur2k1/state-ofecommerceinindia Profitability of Daily Discounts: Examining the Entry of Group Buying Websites into India and

Benefits to Merchants by Vaibhav Gupta http://thedealer.com.au/deals-blog/industry/how-does-group-buying-work/ ^ Montlake, Simon (2007-12-05). "China's new shopping craze: 'team buying'" http://www.indiaprwire.com/pressrelease/electronic-commerce/20120225113063.htm

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Questionnaire

Terms used :>Group Deals/Discounted Deals like pay 300 and get 40% on hair treatment. OR Use this coupon and get 60% off blackberry 9360.

* RequiredName *

Gender *

 Female

 Male

Marital Status *

 Single

 In a relationship

 Married

 Divorced

 Widowed

Age *

 15-25

 26-35

 36-45

 46 and above

Q1. Please specify which part of Delhi/NCR you reside in? *

 North Delhi

 South Delhi

 East Delhi

 West Delhi

 Central Delhi

 Faridabad

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 Ghaziabad

 Gurgaon

Q2. Your occupation: *

 Student

 Corporate employee

 Government employee

 Self Employed Professional (Business Person,Doctor,Lawyer,Designer)

 Home Maker

 Retired

Q3. Your personal monthly income. *(students can also mention their pocket money or their monthly family income)

 0-10,000 (For students)

 10,000-20000

 20,000-50,000

 50,000-1, 00,000

 1-2lakhs

 Above 2 lakhs

Q4. Have you ever bought any discounted group deal from online websites?(Deals like use this coupon and get 10% off on blackberry phone, pay Rs.500 and get 30% off on entry pass to a concert.) *(IF YOUR ANS IS 'YES' then skip question no 5 and proceed further from question no 6 onward, otherwise go to question no 5)

 Yes

 No

Q5. If no, then why not?Answer this question only if you have selected 'NO' as an option in the question no 4(otherwise, skip this question and proceed further).After answering this question MOVE DIRECTLY TO THE SUBMIT option at the bottom of the page.

 Unsure about the quality of products

 Size/fitting issues

 Delivery hassles

 Credibility of the online company

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 Don't have internet

 Don't know how to use

 Unaware of such websites

 Don't have Netbanking/Creditcard/Debitcard

 Other: 

Q6. How often do you buy these discounted deals?

 More than once in a week

 Once in a week

 Several times in a month

 Once in a few months

Q7. How do your prefer to make payments for group deals on these websites?you can select more than one.

 Netbanking

 Credit card

 Debit card

 Cash cards

 Cash on delivery

 Other: 

Q8. What was your purpose for buying these group deals?you can select more than one.

 For self use

 For familymember/friend

 For colleagues at office

 To gift to someone

 Other: 

Q9.From among the following, select the categories on which you buy the discounted deals.you can select more than one.

 Clothing /Apparels

 Footwear

 Watches

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 Jewellery

 Cosmetics(suncream, Deodorants,Hair Gels) )etc)

 Mobile phones and its accessories

 Health Products

 Baby Products

 Books & Dvds

 Restaurants and Eat out deals

 Entertainment park,concert and discos

 Holiday Packages

 Spa ,Saloon and Gym

 Car and automobile service

 Other: 

Q10. How do you prefer to avail these discounted deals ?you can select more than one.

 Pay online on the Group deal websites(like snap deal) and get the deal.

 Get the coupon code from these group deal websites(like DealsandYou),get its print out and then go to stores/shops 

 Get the coupon code from these group deal websites and shop from online stores

 Other: 

Q11. From the following websites which one do you prefer for buying discounted deals ?you can select more than one.

 Snapdeal

 Dealsandyou

 khojguru

 Mydala.com

 Livingsocial

 offersforshoppers.com

 koovs.com

 Groupon

 Other: 

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Q12. Which is your favorite website for buying discounted Group deals?

Q13. I like this website ( mentioned in Q12. ) because :you can select more than one.

 Best Discounts

 Largest varieties of brands

 Easy payment options

 User friendly website interface (like its format & layout)

 Other: 

Q14. How do you came to know about these group deal websites?you can select more than one.

 Through TV commercials

 Radio commercials

 Newspaper /magazine advertisement 

 Through ads on social networking websites like facebook,youtube,stumbleupon etc

 Bulk Mailers 

 Text messages

 Billboards/Hoardings

 Metro/Bus/taxi ads

 Other: 

Q15. Kindly read the following statements carefully and select .

Strongly Agree

Somewhat Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

I get discounted deals on a wide range of products on these websites

Strongly Agree

Somewhat Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

Unsure about the quality of products on these websites.

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Strongly Agree

Somewhat Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

One can save a significant amount on these discounted deals.

Strongly Agree

Somewhat Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

Time and lots of efforts are saved on buying products from these online websites

Strongly Agree

Somewhat Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

Making payments on these websites are really easy,

Strongly AgreeSomewhat

Agree

Neither Agree nor Disagree

Somewhat Disagree

Strongly Disagree

The discounted deals provides better discount than the sales discounts available at the stores.

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