rise of internet in india and worldwide
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YEAR B2C (Amount in crore)
1998-99 12
1999-2000 15
2000-01 100
2001-02 110
2002-03 130
2003-04 255
2004-05 570
2005-06 1180
2006-07 7080
2007-08 9210*Sources: IAMI Note: *Estimated
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Websites % use on
preferred
bases(2007)
Increase over
2006 (%)
Ebay 34% -4%
Rediff 25% -4%
Google 8% 5%
Yahoo 7% -0.50%
Indiatimes 7% -4%
Futurebazaar 6% 6%
Sify 2% 0.6%
Shopping 2% 0.40%
Amazon 1% -0.1%
India plaza 1% 0.6 %
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y DemographicCharacteristics
y Product Type
y Familiarity and Confidencey Consumer Attitude
towards E-shopping
y E-shopping Environmental
Characteristics
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y Rapid growth of cybercafs across India
y Access to Information
y The increase in number of computer users
y Reach to net services through broadband
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y Shop any time of the dayy Shop abroady Save timey Easy to do comparison shopping between products, as well as, online
storesy More easily you can find a product compared to brick-and-mortal
storesy Have more options compared to brick-and-mortal stores
y Easy to find real bargainsy Provided products are cheaper compared to brick-and-mortal storey
The whole buying procedure is more easily compared to brick-and-mortal storesy Consumers can find products that there are not in brick-and-mortal
stores
y Have much more time to evaluate and select a product
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y Online stores promise more than they can practicallyoffer
y Consumers can not completely trust them
y Online stores are not always official representatives oftheir offered products
y Consumers find it difficult to confirm the reliability ofthe provided products
y It is possible to have your credit card data interceptedy It is possible to buy a product that it would not value as
much as you pay for it
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Internal
Strengths Weaknesses
Global reach of businessLow cost to maintain and enhance the site, notrestricted by foot printStock is recognized brandsPurchase price can be less than off line shopsStrong competition for warehousing anddistribution keeps costs downEasy to remain in touch and build relationshipswith customers (Email, SMS, e'zine)Use existing distribution networks (Postage)
No shop front to accept returnsPeople need to find our site, there is no othermarketingLack of shop brand recognitionHard to scale up to respond to peaks and troughsin demandLimited financial capital to fund web siteoptimizationLarger or heavy toys have high delivery costdiminishing the online price advantage.Low web development skills in house we arereliant on outsourcing
External
Opportunities Threats
Established traffic and high number of repeat
customers may enable increased sales through theaddition of complimentary product lines
Increased use of the internet for shopping with the18 to 35 age group suggests that additional salesmay come from stocking toys for this age group
Improve organic search ranking to reduceadvertising costs
The internet has no barriers to entry which means a
better financed business or an established retailbusiness may seek to compete in this niche.
eBay and other online auction sites have tradersselling similar products
Buyer reluctance to shop over the net (Diminishing) Quality issues from overseas suppliers damaging the
reputation of brands we sell Lager business with greater buying power may
undercut our prices to gain online market share
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Title of the study:
y Consumer Perception toward Online Shopping in Ahmedabad city
Statement of the Problem:
y Many times we heard that Indian people have touch and feelkind of behavior before purchase the any goods and services. Hence this research is tostudy the perception of Indian people during online shopping. And find out reason
behind to go through online shopping and vise a versa. Hence, through our projectConsumer Perception toward Online Shopping in Ahmedabad city (Drive inroad, Gurukul, Vastrapur) we will find out same.
Objective of the Study:
y 1 To study the risk of online shopping,
y 2. To study the past experience with online shopping,
y 3. To study the benefits of online shopping,
y 4. To study the ease of online shopping, and
y 5. To study the level of uncertainty of online shopping.
y 6. To study reasons for using online shopping (adopters only)
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y Population: Citizens of Ahmedabad cityy Sampling Area: Taken from Vastrapur, Gurukul area, Drive in
Roady Sample Size : 203 Consumers= Approx. 200 consumers
Here, consumers refer any person who ever done shopping whetherfrom internet or brick and mortal store.= (.95)*(.05)*(1.96)^2/(.03)^2
Where p= probability of respondents 95%=0.95q= probability of non- respondents 5%= 0.05E= 0.03=p^-p=error of estimation
Z=98% confidence level value is= 1.96(from the Z-table)y Sampling Technique: Non probabilistic sampling and
Convenience Sampling
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y Research Design: Descriptive study
y Age Group: 18 and above
Statistical techniques
y Bar Diagramsy Pie-Chart
Data collection:
y
Primary datay Secondary data
Limitations of the study:
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y
Age
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2%
12%
46%
40%
No.ofRespondent
No Formal Education High School
Graduate Post Graduate
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20.5%
79.5%
No. ofRespondents
Yes No
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y Majority of the young people are at least graduate, so education in todays scenario is
increases very rapidly.y Todays era is internet era; in our survey we find that all people are aware about internet.
y We find that majorityof people are aware about online shopping.
y Wide variety of product, time saving, lower price, quicker delivery, full productinformation are the main reasons Which attracts consumer to do online shopping
y Almost people buy online only1 or 2 times in quarter.
y Travelling tickets, CD AND DVDS, computer software and hardware, and books are mostselling items in online shopping.
y Majority people feel that security and trust, poor site design, price differentiation,difference between ordered quantities are the biggest reason which resists them to repeatpurchase.
y Majority of the people shops by debit card .
y Non-adopters of online company feel that security and trust, touch and feel experience,prefer from brick and mortal store are crucial reason for not doing online shopping.
y Around 60% people ready to keep shopping.
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y Majority of the people of not doing online shopping just
because of security and trust problem so, company has toensure them (consumers) authentication of system(website) from they are purchasing or planning topurchase.
y Almost male people are doing online shopping, female areless interested in online shopping, so company has to dopromotional activity which attracts more female to doonline shopping
y As we know majority of people are simply graduate, socompany has to provide language options to make easyonline shopping
y Time saving, quicker delivery & wide variety of goods arevery crucial in online shopping, so company has to improvetheir site design so consumer do not get confuse. Andimprove the distribution network to reduce delivery time
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y To sustain in competitive market increase the frequency rate of onlineShopping.
y Company has to increase traffic on his website by providing salespromotion, various discount offers, promotional activities, rebate etc.
y
Many of the consumers complaint that delivered quantity are differentfrom the ordered quantity. So company has to take care of it.
y 30% of people do not recommend to others to do online shopping, socompany has to satisfy them so they can increase positive word ofmouth.
y
If possible for online website than they provide proper video for theproducts regarding how to use the product, what are the feature of theproduct so consumer feel some touch and feel kind of experience.
y The retailers must make sure that their website is out of malwares andvirus attacks.
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y Todays era is internet era, majority of the people areaware about internet as well as online shopping. Butvery few people are doing online shopping becauseIndian typical mentality to touch and feel kind ofexperience before purchase. Indian people are verydifferent from other country people they believe infirst buy product and then pay. Time saving is the mostimportant factor which leads to do online shopping.
Security is also crucial factor which resist doing onlineshopping
y
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Philip Kotler, Keller, Koshy, Jha, Marketing Management, 13th edition
Schiffman and Kanuk, ConsumerBehavior, IX edition
Naresh Malhotra and Dash S., Marketing Research, V edition
www.emarketer.com
www.iamai.in Bhatnagar, A., Misra, S. and Rao, H. R. (2000) On risk, convenience, and
internet shopping behaviour - why some consumers are online shoppers whileothers are not, Communications of the ACM, 43 (11), 98-105.
Baker, C. R. (1999) An analysis of fraud on the Internet, Internet Research:Electronic Networking Applications and Policy, 9 (5), 348-359.
Alba, J., Lynch, J., Weitz, B., Janizszewski, C., Lutz, R., Sawyer, A. and Wood, S.(1997) Interactive home shopping: consumer, retailer, andmanufacturerincentives to participate in electronic marketplaces, Journal of Marketing, 61(3), 38-53.
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y Choi, J. and Lee, K. H. (2003) Risk perception and e-shopping: a cross-cultural study, Journal of Fashion Marketing and Management, 7 (1),49-64.
y Ernst and Young (2000), Global Online Retailing, [Online], [RetrievedJanuary 27, 2003], http://www.ey.com
y Cronin, J.J, J.r & S.A Taylor factors to be considered in onlineshopping Main source Journal of Applied Business Research FourthQuarter 2006 Volume 22, Number 4
y Wolfinbarger, Mary and MaryGilly, (2001). Shopping Online forfreedom control and fun, Vol. 43 (2): 34-55
y Parasuraman, A., Zeithaml, V. A. and Malhotra, A. (2005) E-S-Qual: amultipleitem scale for assessing electronic service quality, Journal ofService Research, 7 (3), 213-233.
y Retail Merchandiser (2003) Online spending jumps 18 per cent, RetailMerchandiser. [Online], [Retrieved December 22, 2003],
http://web.lexisnexis.com/universe/documenty Dellaert, B., Monsuw, T.P., & Ruyter, K. (2004). What drives
consumers to shop online? A literature review. International Journal ofService Industry Management, 15(1), 102-121.
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y Gefen, D(2000) E-commerce: the role of familiarity andtrust, Available:http://portal.acm.org/citation.cfm?id=569910
y Belanger, F., Van Slyke, C., & Comunale, C. (2002). Gender
differences in perceptions of web-based shopping.Communication of the ACM, 45, 82-86.
y Dr. A. Sajeevan Rao, Mokhalles Mohd. Mehdi, Onlineuser behavior in Delhi-a factor analysis (2007), Indianjournal of marketing, July, 2010
y Dr. Muthamizh Vendan Murugavel, E-Tailing marketscenario in India (2008), Indian journal of marketing,August, 2010
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y Age
18-25 years 26-30 years 31-35 years 36-40 years >40 years
y Marital Status
y Single / Married
y Gender
y Male / Femaley What is your education level?
No Formal Education High School Graduate Post Graduate
y Profession ____________
y Q.1 Are you familiar with internet?
Ans. Yes No
y Q.2 Do you have internet availability?
Ans. . Yes No
y Q.3 Are you aware about online shopping?
Ans. Yes No
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Q.4 Have you done ever online shopping? Ans. . Yes No(If your answer is 'No', please jump to question 13.)
Q.5 facts regarding online purchase.
Reasons Strongly
Agree
Slightly
Agree
neither Slightly disagree Strongly disagree
Wide variety of products
Easy buying procedure
Time savings
Lower prices
various mode of
payments
After sales service
Quicker delivery
Qualitative product
Good Satisfaction level
Desire to keep shopping
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Q.6 Nos. of online purchase per quarter (3 month)?Ans. 1 time 2 times 3 times more than 3 timesQ.7 Which kinds of product do you buy through online shopping? Ans. Computer hard ware and software travelling tickets CDs and DVDs Consumerelectronics books Any others than specify..
Q.8 which are the most effective drivers which resist you to repeat purchase?
Most effective drivers Strongly
agree
Slightly
Agree
neither Slightly disagree Strongly disagree
Security and trust problem
poor site design
price differentiation
Inadequate information
regarding product
Shipping delays
Difference between orderedquantity and delivered
quantity
Difference between ordered
quality and delivered quality
Any other reason..
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Q.9 which instruments you use to buy? Ans. Debit card credit cardQ.10 Buying patterns of online shopping?Ans. Search online but buy & pay at stores
Search and buy online but pay in cash on deliveryS
earch, buy and pay onlineQ.11 You Recommendations to non online buyers for online shopping?Recommend Not Recommend
Only for non-adoptersReason for not using online buying.
Strongly
agree
Slightly
Agree
neither Slightly
disagree
Strongly
disagree
Touch and feel kind of experience
Not having any credit card or debit card
Promotion and advertisement
Customers review availability
Unaware of buying procedure through internet
Prefer to buy from brick and mortal stores
Security and trust problem
Sign of respondent
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