A WINTER PROJECT REPORT ON

E-RETAILING GROWING POPULARITY AND PERCEPTION OF INDIAN CUSTOMERS

A report submitted to Accman Institute of Management, Greater Noida as a mandatory part of PGDM curriculum

Submitted To: Submitted by: MS. ANJALI SHARMA SRIVASTAVA Faculty Guide (2009-11) AKSHAT KUMAR PGDM (Retail) Roll No- 20003

ACCMAN INSTITUTE OF MANAGEMENT

2

Greater Noida
ACKNOWLEDGEMENT

I am grateful to Ms. Anjali Sharma, Faculty for Retail Management, Accman Institute of Management, Greater Noida for providing her guidance in completing my E-RETAILING CUSTOMERS. I am also grateful to Accman Institute for providing me such a platform which helped me in horning my research skills and I am sure that this study will help me in my future. report GROWING related POPULARITY AND to PERCEPTION OF INDIAN

AKSHAT KUMAR SRIVASTAVA

CONTENTS

S. No.

Chapter Name

1
2

Introduction Literature Review Problem Statement Methodology Results & Discussions Suggestions & Conclusion

3 4 5 6 Annexure References

ABSTRACT

The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. WiFi & Wimax is also getting tested in Bangalore and other cities in India. This will increase the usage as it goes more on wireless internet. Indians are proving every time that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of Indias online buying is crossing the overall global averages. As the Indian retail market is witnessing a revolution after 100% FDI in retail sector. The growth of internet has changed the traditional retail format to virtual retailer and forced the existing retailers to consider e-tailing model of retailing as well. A large number of customers use internet for shopping purposes but there are varied reasons for this. I will try to find out the important factors that drive a customer to purchase online and also whether there is a wide gap in the perception of customers and reality in the e-tailing industry.

INTRODUCTION
The growth, integration, and sophistication of information technology and communications is changing our society and economy. Today, computers and other electronic devices increasingly communicate and interact directly with other devices over a variety of networks, such as the Internet. Consumers and businesses have been particularly quick to recognize the potential and realize the benefits of adopting new computer-enabled networks. Consumers now routinely use computer networks to identify sellers, evaluate products and services, compare prices, and exert market leverage. Businesses use networks even more extensively to conduct and re-engineer production processes, streamline procurement processes, reach new customers, and manage internal operations. This electronic revolution in our economy is spurring additional investments in facilities, hardware, software, services, and human capital. Ultimately, it may change the structure and performance of the American economy as much as the introduction of the computer a generation ago. While the burgeoning use of electronic devices in our economy is widely acknowledged and discussed, it remains largely undefined and unrecognized in official economic statistics. The terms Internet, electronic commerce, electronic business, and cyber trade are used often. However, they are used interchangeably and with no common understanding of their scope or relationships. Establishing terms that clearly and consistently describes our growing and dynamic networked economy is a critical first step toward developing useful statistics about it. This paper presents definitions and concepts to describe the electronic revolution taking place in our economy. They were developed by the Census Bureau for discussion purposes, are based on reviews of available information and consultations with interested professionals, and are intended to provide a frame of reference for developing useful official statistical measures. The paper also describes Census Bureau related program plans for FY 2000 (October 1999 to September 2000) and concludes with a number of questions seeking interested parties views and comments.
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ELECTRONIC ECONOMY IN PERSPECTIVE

Whatever definitions are used for the electronic revolution taking place in our economy, we must recognize that these changes take place in a larger economic context. For example, global competition, interest rates, laws and regulations, social concerns, industry traditions, and consumer preferences are all part of the broader "environment" which can affect all business activities. Similarly, electronic and non-electronic businesses share an infrastructure of available economic resources, including natural resources, utilities, structures, equipment, telecommunication and other services, employees, and workforce skills. While keeping this larger economic context in mind, the emphasis in this paper is to describe and encourage understanding of the "electronic" portion of our overall economy. It is useful to think of the electronic economy as having three primary components--supporting infrastructure, electronic business processes (how business is conducted), and electronic commerce transactions (buying and selling).. In addition, it is important to note that a common feature of both electronic business processes and electronic commerce transactions is reliance on the use of computermediated networks. It is reliance on the use of computer networks, and the benefits this can provide, that is the "bottom line" difference between electronic and other kinds of business. This important shared feature is also defined and discussed in following sections of this paper.

DEFINITIONS AND CONCEPTS

The three primary components of our electronic economy, and the feature shared by two of them, are defined below. Each definition includes examples of its scope and content. The definitions are intentionally broad to provide an inclusive framework for planning statistical measures, and to allow flexibility to incorporate continuing changes in the electronic economy.

E-business infrastructure is the share of total economic infrastructure used to support electronic business processes and conduct electronic commerce transactions. It includes hardware, software, telecommunication networks, support services, and human capital used in electronic business and commerce. Examples of e-business infrastructure are:

Computers, routers, and other hardware Satellite, wire, and optical communications and network channels System and applications software Support services, such as web site development and hosting, consulting, electronic payment, and certification services.

Human capital, such as programmers.

Electronic business (e-business) is any process that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity. Their processes include production-, customer-, and internal or management-focused business processes. Examples of electronic business processes are:

Production- focused processes include procurement, ordering, automated stock replenishment, payment processing and other electronic links with suppliers, as well as production control and processes more directly related to the production process.

Customer-focused processes include marketing, electronic selling, processing of customers orders and payments, and customer management and support

Internal or management-focused processes include automated employee services, training, information sharing, video conferencing, and recruiting.

Electronic commerce (e-commerce) is any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. Transactions occur within selected e-business processes (e.g., selling process) and are "completed" when agreement is reached between the buyer and seller to transfer the ownership or rights to use goods or services.
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Completed transactions may have a zero price (e.g., a free software download). Examples of both ecommerce and non e-commerce transactions are listed below. Computer-mediated networks are electronically linked devices that communicate interactively over network channels. Generally, both electronic devices will be computer-enabled, but at a minimum at least one device must be computer-enabled as in the case of a typical telephone linking with an computer-enabled interactive telephone system. Typically, the interactive link involves minimal human intervention though someone activates the electronic devices, accesses the network, and may even assist with the process or transaction. For example, many e-commerce businesses are providing shoppers with the on-line capability of "chatting" with customer support representatives or even speaking with them through the use of internet telephony software. Examples of devices and networks are:

Linked electronic devices such as computers, personal digital assistants, WebTV, Internet-enabled cellular phones and telephones linked with interactive telephone systems. Networks such as the Internet, intranets, extranets, Electronic Data Interchange (EDI) networks, and telecommunication networks. Networks may be either open or closed.

E-COMMERCE EXAMPLES Examples of e-commerce transactions are:

An individual purchases a book on the Internet. A government employee reserves a hotel room over the Internet. A business calls a toll free number and orders a computer using the seller's interactive telephone system.

A business buys office supplies on-line or through an electronic auction. A retailer orders merchandise using an EDI network or a supplier's extranet.

A manufacturing plant orders electronic components from another plant within the company using the company's intranet.

An individual withdraws funds from an automatic teller machine (ATM).

Identifying e-commerce transactions often is not as straight forward as the previous examples may make it appear. Some additional examples that demonstrate the complexity of implementing the proposed definition are provided below.

A consumer visits a bookstore and inquires about the availability of an out-of-stock book. A bookstore employee downloads a digital copy of the book and prints it along with cover. Not an e-commerce retail transaction since agreement to purchase did not occur over an electronic network. However, the right to access the digital archived copy is an e-commerce service transaction.

Consumer uses Internet to research the purchase of a computer, but calls a toll free number and places the order with an operator. Not an e-commerce transaction because agreement to transfer ownership did not occur over computer-mediated network; neither telephone was computer-enabled.

An individual visits a retail store and purchases merchandise not currently in stock from a computer-enabled kiosk located inside the shop. An e-commerce transaction since agreement occurred over computer-mediated networks. In contrast, the purchase of a pre-packaged music CD from a computerized kiosk would not be considered an e-commerce transaction. If the kiosk was network linked, the digital music was downloaded, and the CD was mastered within the kiosk this would be an e-commerce transaction.

DEFINITION ISSUES

This section of the research poses some questions associated with the proposed definitions presented earlier. E-business is any process that a business organization conducts over a computer-mediated network. E-commerce is any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. The definition includes both monetary and non monetary transactions. Some transactions may have a zero price (for example, the download of free software) while other transactions may be paid in-kind or through barter (portal pays for an ecommerce consulting service by providing banner advertising).

We do not define transaction. Should we? Since any e-commerce measure will focus on the value of transactions, not the quantity, should we exclude free or zero priced e-commerce transactions from the definition?

Do you think barter or trade-in-kind is more prevalent in e-commerce transactions than in traditional transactions? Is it reportable or measurable?

Do you find the e-commerce examples useful?

E-business infrastructure is the share of total economic infrastructure used to support processes and conduct e-commerce transactions. The definition includes hardware, software,

telecommunication networks, support services, and human capital along with associated examples. Measuring the electronic infrastructure will be a daunting task. Since we have no short term plans to begin measuring e-business infrastructure, we have not focused much attention on it to date, but will begin focusing on it during this coming year.

Is the e-business infrastructure separable from the broader economic infrastructure? What are the priority components of infrastructure that we should focus on? Do you have specific examples that would clarify what to include in each component?
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Should human capital be included in the e-business infrastructure? Is it separable?

Computer-mediated networks are electronically linked devices that communicate interactively over network channels. Network channels include the Internet, intranets within organizations, extranets and Electronic Data Interchange networks linking trading partners, and telecommunication networks.

Do you agree with the decision to include open and closed networks? Have we excluded other important examples of networks?

Electronic linked devices include computers, personal digital assistants, WebTV, Internet-enabled phones, and interactive telephone systems. While the e-commerce examples also include a computerenabled kiosk and an ATM as linked electronic devices, in our definition we have chosen to go with a short, rather than a long list of electronic devices to minimize possible reporting confusion.

Should the list of linked electronic devices include all possible devices or focus only on the most important devices?

The definition and one of the examples considers a consumer using a telephone linked to an interactive telephone system with no human operator to be a computer-mediated network. Do you agree?

Fax machines, while clearly electronic devices that can link over network channels, were excluded because they do not communicate interactively. Do you agree with their exclusion and the rationale?

Electronic gas pumps often are linked interactively over network channels with other electronic devices. The device, the electronic pump, can be activated in a number of different ways. The purchaser may "swipe" a credit card, wave Speed-Pass, go to an outside station or inside the store to pay by cash or credit card. Just as in the case of an ATM machine or a computer2

enabled kiosk, once the device is activated the consumer can specify the transaction (regular or premium gasoline) and complete the transaction. The electronic pumps also support a number of E-business processes including tracking sales and gallons sold, with links to automated inventory replenishment systems to name a few. The functionality embedded in pumps is expected to grow. For example, BP Amoco PLC is planning to introduce even more sophisticated pumps that will include Web browsers and Windows CE operating system that will even permit the gas purchaser to order fast food at the pump (WSJ 8/17/99). Would you consider the sales of gasoline through electronic pumps as an e-commerce transaction? Why?

ELECTRONIC ECONOMY

Electronic or Internet economy as having three primary components:

Electronic

Commerce

(e-Commerce)

as

defined

by

the

U.S.

Census

Bureau.

Any transaction completed over a computer-mediated network that transfers ownership of, or rights to use, goods or services. The value of goods and services sold on-line. The term on-line includes the use of the Internet, Intranet, and Extranet, as well as proprietary information that runs over systems such as Electronic Data Interchanges (EDI) networks.

Electronic business supporting infrastructure The economic infrastructure that is used to support electronic business processes and conduct electronic commerce transactions. It includes hardware, software, telecommunication networks, support services, and human capital used in electronic business and commerce.

Electronic business processes Processes that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity. Examples of on-line e-business processes include the following:

Purchasing Selling Vendor-managed inventory Production management Logistics

Communication and Support Services such as on-line training and recruiting

Broad definition of e-business is: The transformation of an organizations processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy. Electronic Business, or "E-business", may be defined broadly as any business process that relies on an automated information system. Today, this is mostly done with Web-based technologies. The term "e-business" was coined by Lou Gerstner, CEO of IBM. Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers. In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce to be a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the Worldwide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems. E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

E-business includes: Applications can be divided into three categories: 1. Internal business systems:

customer relationship management enterprise resource planning document management systems human resources management

2. Enterprise communication and collaboration

VoIP content management system e-mail voice mail Web conferencing

3. Electronic Commerce - Business-to-business electronic commerce or business-to-consumer

electronic commerce

internet shop supply chain management online marketing

E-BUSINESS MODELS Organizations go online, they have to design which e-business models suit their business goals. Business model is defended as the organization of product, service and information flows, and the

sources of revenues and benefits for suppliers and customers. The concept of E-business Model is the same but used in the on-line presence. Currently, the most adopted e-business models is a list as follows:

E-shops E-procurement E-malls E-auctions Virtual Communities Collaboration Platforms Third-party Marketplaces Value-chain Integrators Value-chain Service Providers Information Brokerage

Types of Electronic business processes

Production processes Customer-focused processes Internal management processes

ELECTRONIC RETAILING

E-Retailing is understood as the sale of products and/or services to consumers for their personal use using methods that involve the use of the Internet for (parts of) the sales process. E-Retailing Infrastructure Computers, routers, and other hardware Satellite, wire, and optical communications and network channels System and applications software Support services, such as web site development and hosting, consulting, electronic payment, and certification services. Human capital, such as programmers. E-Tailing is emerging as an attractive alternative to the traditional brick-and-mortar retaining. Chances are that they will co-exist profitably Retailing as an attractive business was slowly emerging out of the shadows. Quite a few corporate houses began looking at retailing as one way to corporate salvation. Notable among them are: the R P Goenka group, the Tatas, the S Kumars, the Rajan Raheja group and the Ajay Piramal group. And many more are still in the process of finalising their forays into retailing.

Considering the fact that the Internet is a new medium respondents shared to a relatively high degree similar ideas regarding its development. Common themes resurface regarding how this new media diverges from traditional communication channels and its implications. However, it may be noted that the experts interviewed tended to emphasize different issues when answering the same questions. Varying individual backgrounds and experiences go a long way in explaining this. But all agree that electronic retailing has the potential to revolutionize the way both businesses and consumers interact.

The growing use of Internet in India provides a developing prospect for online shopping. If E-

marketers know the factors affecting online Indian behaviour, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existent online customers. This project is a part of study, and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information, perceived usefulness, ease use; perceived enjoyment and security/privacy are the five dominant factors of

which

influence consumer perceptions of online purchasing.

INTERNET AS A MEDIUM

Sophistication

Present position

Time

Internet development

We have developed a model indicating online shopping behaviour and acceptance among customers in India. The model was tested with a survey sample (n=50). We used factor analysis technique to classify these factors which buyers keep in mind while shopping online. Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive
2

markets.

Companies

also

use

the

Internet to convey, communicate and disseminate information, to sell the product, to take feed back and also to conduct satisfaction surveys with customers. Customers use the

Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique

opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-tobusiness commerce, the practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of Eretailing, researchers continue to explain E-consumers behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.

LITERATURE REVIEW

The current literature on consumer online purchasing decisions

has mainly

concentrated on identifying the factors which affect the willingness of consumers to engage in Internet shopping. In the domain of consumer behavior research, there are general models of buying behavior that depict the process which consumers use in making a purchase decision. These models are very important to marketers as they have the ability to explain and predict consumers purchase behaviour. The classic consumer purchasing decision-making theory can be characterized as a continuum extending from problem-solving behaviours, towards extensive problem-solving behaviours [Schiffman et al., 2001]. The traditional framework for analysis of the buyer decision process is a five-step model. Given the model, the consumer progresses firstly from a state of felt deprivation (Problem recognition), to the search for information on problem solutions. The information consumers gathered provides the basis for the evaluation of alternatives. Finally, postperception of satisfaction/dissatisfaction with the product/service. This purchase behaviour is critical in the marketing perspective, as it eventually affects classic five stage model comprises the essence of consumer behaviour under most contexts. Nevertheless, the management of marketing issues at each stage in the virtual environment has to be resolved by individual E- marketers. routine through to limited problem- solving behaviours and then

Peterson et al. [1997] commented that it is an early stage in Internet development in terms of building an appropriate dedicated model of consumer buying behaviour. Decision sequences will be influenced by the starting point of the consumer, the relevant

market structures and the characteristics of the product in question. Consumers' attitude towards online shopping is a prominent factor affecting actual buying behaviour. Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, NO.2, 2005

Todd [1997] proposed a model of attitudes and shopping intention towards Internet shopping in general. The model included several indicators, belonging to four major categories; the value of the product, the shopping experience, the quality of service offered by the website and the risk perceptions of Internet retail shopping. In the research conducted by Vellido et al. [2000], nine factors associated with users' perception of online shopping were extracted. Among those factors the risk perception of users was demonstrated to be the main discriminator between people buying online and people not buying online. Other discriminating factors were; control over, and convenience of, the shopping process, affordability of merchandise, customer service and ease of use of the shopping site. In another study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards specific web base stores, in which perceptions of the store's reputation and size were assumed to affect consumer trust of the retailer. The level of trust was positively related to the attitude toward the store, and inversely related to the perception of the risks involved in buying from that store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected the consumer's intention to buy from the store. Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects involving the privacy and security of personal information, the security of online transaction systems and the uncertainty of product quality. Trust is interwoven with risk [McAllister, 1995]. One of the consequences of trust is that it reduces the consumers perception of risk associated with opportunistic behaviour by the seller [Ganesan, 1994]. Lack of trust is frequently reported as the reason for consumers not purchasing from Internet shops, as trust is regarded as an important factor under conditions of uncertainty and risk in

traditional theories. Mayer et al. [1995] developed a model which combines traditional marketing philosophy on consumer motivation to buy and the trust model. In this model, trust propensity; which is a personality trait possessed by buyers; is an important antecedent of trust. In Internet shopping, there is not much information available to the buyer regarding the seller, prior to purchase. A buyer with a high propensity to trust will more likely be a potential customer than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, benevolence and integrity constitute the main elements of trustworthiness. Ability refers to skills, competencies and characteristics that a seller has in a specific domain. In this context, sellers need to convince buyers of the competence of their companies in the Internet shopping business. Benevolence is the extent to which the seller is perceived by the buyer as wanting to do good. Sellers have to convince buyers that they genuinely want to do good things for buyers, rather than just maximize profit.

ONLINE SHOPPING IN INDIA

It is a fact that a great online shopping revolution is expected in India in the coming years. There is a huge purchasing power of a youth population aged 18-40 in the urban area.

Info by: IAMAI

If we observe the growth of Indian online transactions from the above graph, it is getting doubled year by year. The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. Wi-Fi & Wimax is also getting tested in Bangalore and other cities in India. This will increase the usage as it goes more on wireless internet. Indians are proving everytime that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of Indias online buying is crossing the overall global averages.

Factors That Boost Online Shopping in India:

Rapid growth of cybercafs across India Access to Information The increase in number of computer users Reach to net services through broadband Middle-class population with spending power is growing. There are about

200 million of middle-class population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires.

Few Facts About Online Shopping The figures from IAMAI show that the internet users in India will grow to

200 million by 2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and

46% are in the 26-35- year range. Indian online matrimonial sector is worth around $230 million. Worldwide e-commerce is only growing at the rate of 28%, since India being a younger market, the growth of e-commerce is expected at 51% in the coming years. Inline with global trends finally India has also started shopping online these days. As $522 million in 2007 and it is expected to rise above $700 million by end March 2010. per

the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to

 Indians are also Shopaholics like other Asians. There is a strong booming young adult population in India with good levels of disposable income.

INDIA FACTSOver $50 Billion and growing rapidly - Most popular online shopping products include: Books apparel airline (45%), electronic gadgets gifts (42%), (34%), railway tickets and (38%), accessories (32%),

(35%), apparel tickets (28%),

(35%),

computer

peripherals

music downloads (21%), movie downloads (21%), hotel rooms

(22%), magazines (18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), beauty products (12%), health and fitness products (12%), apparel gift certificates( 11%) and sporting goods (7%). There are over 120 million people online in India and this is expected to grow to 200 Million by the end of 2010.

CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

Malls malls springing up everywhere and yet people are e-shopping! And not in small numbers either. E-commerce figures are going through the roof, according to Assocham (Associated Chambers of Commerce & Industry of India). Today (2007-08) the figures are touching Rs. 2200 crore, but are expected to increase by 150 percent by 2008-09 - to Rs 5,500 crores! And two metros - Delhi and Mumbai are driving the growth:

LOGGING ONTO E - SALES CITY Mumbai Delhi Chennai Kolkata Bangalore Share in 07-08 24% 20% 7% 7% 6% Projection for 08-09 40% 30% 11-12% 10 - 11% 9%

It was never thought that Indians would go in for e-shopping in such a big way.Ticketing, travel bookings and even books and movies seem fine to buy online. Knowing that in India sizes vary from brand to brand and quality is inconsistent, even of some electronic items, how is it that there are people buying these items online?

Well, Assocham says that books are the hottest selling item on the internet. In fact most products bought and sold off online are: books, electronic gadgets and railway tickets. However, people are also buying clothes, gifts, computer and peripherals, and a few are buying home tools and products, home appliances, toys, jewelry, beauty products and health and fitness products.

Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai. Here are few reasons for this: Convenience:

It is the major reason. Both the cities are spread out over a large area and the best stores in both these cities are often concentrated in certain posh areas. In Mumbai for example there are certain items you get only in Crawford market which is at the other end of town in South Mumbai. And demographics show that the population of Mumbai is now concentrated in the suburbs. Ofcourse, huge malls have come up in the suburbs as well, and Indias biggest mall Nirmal Lifestyle is in far-flung Mulund but often you find a better choice of sizes and styles choice in other malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have transport system,few people like to travel for two hours just to get to a shop at the other end of town. Clearly the transport systems leave much to be desired. In Delhi, safety is also an issue for women traveling alone in the evenings.

Literacy Rate and the Cities Internet Savvy Population: Most cities in India have a higher literacy rate as compared to the national average of 64.8 percent. In fact Mumbai has a highest literacy even amongst the cities (86 per cent). Delhi too has a high literate population (81.2 per cent). Oddly, although Bangalore has a higher literacy rate than Delhi, at 83 per cent, the citys share of ecommerce is not very high. Kolkatta too has a literacy rate (80.8 per cent) and so does Chennai (80.1 percent.) If one compares these rates to literacy rates of cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or Warangal (73 percent) its clear why its the metros which are going to continue to lead e-shopping.

Home delivery concept: In any case, home delivery is a concept that Indians are familiar with and love. The mall craze has started only now.Earlier it was a choice between sweating it out in small crowded markets, or asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this system is still thriving.

Increase in the Internet users: Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet users across India. The demographic segments that have witnessed maximum growth comprise college going students and young persons. These segments are the users of advanced applications and technologies online and are most likely to be heavy E- Commerce users.

Increase in the number of buyers and sellers: The success of a marketplace depends on the presence of a large number of buyers and a large number of sellers. In addition to online buyers, many offline stores have begun to sell their products in the online marketplace. The greater the number of sellers and buyers, the faster the market grows.

PRODUCT PREFERENCES CITY WISE

Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies, bookings,actually just about everthing. Well, Kolkatta prefers to buy music and movies online Mumbai leads in all categories, except jewellery. Delhites seem to prefer buying jewellery online as compared to any other city

PROPOSED MODEL

After examining various studies, I identified a total of eleven interrelated factors for which the empirical evidences show significant relationships. These ten factors are perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection, attitude towards online shopping, intention to shop online, online shopping decision making, online purchasing, and consumer satisfaction. Six (perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection )are found to be ordinarily independent and five (attitude toward online shopping, intention to shop online, decision making, online purchasing, and consumer satisfaction) are ordinarily dependent variables. Consumer satisfaction is considered to be a separate factor in this study. It can occur at all possible stages depending on consumers involvement during the online shopping process. The relationships between satisfaction, attitude, intention, decision making and online purchasing are proposed to be two-way relationships due to the reciprocal influences of each on the other. In addition, three of the antecedents, perceived usefulness,

perceived ease of use, perceived enjoyment , have been found to have direct impact on consumer satisfaction. Perceived Usefulness Perceived usefulness is defined as the degree to which a person believes that using a particular system would increase his or her job performance. It is an important factor affecting acceptance of an information system, because the ultimate aim of any person is the superior job performance.

Perceived Ease of Use

This is an important factor that affects the acceptance of a particular information system.It is defined as the degree to which a person believes that using a particular information system would be free of effort. Hence an application perceived to be easier to use would more likely be accepted by the user.

Perceived Enjoyment Enjoyment refers to the extent to which the activity of using a computer is perceived to be enjoyable in its own rights. This is seen as an intrinsic source of motivation to use a particular application. Amount of Information Amount of information is defined as the information which is available for the product which a person wants to buy through online shopping. This factor eases the decision of the user to actually buy the product or not, or which product to buy. This factor becomes even more important in case of High Involvement product. Security and Privacy Security and privacy are the main factors which hinder the growth of Online shopping. The user is concerned about his ID and Password which can be stolen by persons with wrong intentions and then misuse it. At the same time they are concerned that their personal information may be sold to the third party which poses a serious threat to their privacy. Quality of Internet Connection Not only is the presence of internet connection necessary but also its Quality is important to shop online. This is an important factor which determines whether the user would shop online or not because presence of internet is a basic necessity for this mode of shopping.

ATTITUDE TOWARDS ONLINE SHOPPING

Consumers attention in attitudes toward online shopping have gained a great deal of

the empirical literature. It is believed that consumer attitudes will affect

intention to shop online and eventually whether a transaction is made. It refers to: 1) The consumers acceptance of the Internet as a shopping channel 2) Consumer attitudes toward a specific Internet store (i.e., to what extent consumers think that shopping at this store is appealing). INTENTION TO SHOP ONLINE Consumers intention to shop online refers to their willingness to make purchases in an Internet store. Commonly, this factor is measured by consumers willingness to buy and to return for additional purchases. The latter also contributes to customer loyalty. Consumers intention to shop online is positively associated with attitude towards Internet buying, and influences their decision-making and purchasing behavior. In addition, there is evidence of reciprocal influence between intention to shop online and customer satisfaction. ONLINE SHOPPING DECISION MAKING Online shopping decision-making includes information seeking, comparison of alternatives, and choice making. The results bearing on this factor directly influence consumers purchasing behavior. In addition, there appears to be an impact on users satisfaction. Though it is important, there are only five

studies that include it. According to Haubl and Trifts (2000), potential consumers appear to use a two-stage process in reaching purchase decisions. Initially, consumers typically screen a large set of products in order to identify a subset of promising alternatives that appears to meet their needs. They then evaluate the subset in greater depth, performing relative comparisons across products based on some desirable attributes and make a purchase decision. ONLINE PURCHASING This is the most substantial step in online shopping activities, with most empirical research using measures of frequency (or number) of purchases and value of online purchases as measures of online purchasing; other less commonly used measures are unplanned purchases Online factors of purchasing is reported to be strongly associated with the

personal characteristics, vendor/service/product characteristics, website

quality, attitudes toward online shopping, intention to shop online, and decision making (Andrade 2000; Bellman et al. 1999) CONSUMER SATISFACTION It can be defined as the extent to which consumers online shopping experience confirm their expectations. perceptions of the consumers form

Most

expectations of the product, vendor, service, and quality of the website that they patronize before engaging in online shopping activities. These expectations influence their attitudes and intentions to shop at a certain Internet store, and consequently their decision-making processes and purchasing behavior. If

expectations are met, customers achieve a high degree of satisfaction, which

influences their online shopping attitudes, intentions, decisions, and purchasing activity positively. In contrast, dissatisfaction is negatively associated with these four variables (Ho and Wu 1999; Jahng et al. 2001; Kim et al. 2001).

A SURVEY REPORT
Indian E-Comm. Report Finds Heavy Spenders Driving Sales By Devin Comiskey, August 16, 2007 A Survey by Indian research organization Juxtconsult found that more and more Indian Internet users are opening their wallets online. While such hurdles as limited broadband access and security concerns remain, the report finds there are currently more than 10 million shoppers online in India. While current trends point to increased e-commerce growth in India, the online marketplace in the country of more than 1 billion people is still relatively small. Juxtconsult's survey found that 40 percent of all urban Internet users buy online, while 42 percent of the sales originate through just five percent of consumers. The survey was conducted in April 2007 and sampled more than 30,000 users. "This section of buyers spends 5,000 rupees or more per month on the net," states the report. "It is interesting to note that two out of every three heavy spenders are also 'netholics,' those who are on the net for more than three hours per day...Of all those who buy online, only 25 percent are spending more than 1,000 rupees per month while the (remaining) 75 percent bill less than 1,000 rupees per month." (1,000 Indian rupees is currently equal to approximately $23 US.). The report also found that buying and search patterns among Indians differ between genders. "While 43 percent of male users buy online, only 31 percent of urban

female

users

are consumers as well. Women tend to search more. Defying their more

common attitude towards shopping, women are more guarded when it comes to the online market," says Juxtconsult. "Depending on the product type, nine percent to 25 percent are buying online, whereas 33 to 47 percent are searching the net for product information," it says. Security Fears Persist. Juxtconsult says the motivation for Indian users to make purchases online varies, but users fear compromised personal information is still a great risk when it comes to e-commerce. "The single biggest motivation for buying online for net users is saving time. Thirty-two percent of them look to shop online with this purpose. Convenience of shopping '24x7' and home delivery are other major incentives," says the report. "However, the

concern of possible misuse of credit car or personal information is extremely significant among online buyers, with almost 55 percent of them voicing their concern. Clearly, tackling and countering the issue of online safety figures as an imminent challenge for net marketers." Books, CDs Top the List The products that are purchased most online in India, according to Juxtconsult, are books and CDs - making up 25 percent of all online purchases. "Ironically, computer hardware and software, despite having the home advantage are among one of the least bought products online, with only 13 percent buying them," says the report.

"In sum, the online market in India is blossoming but is yet to take off in a considerable way. The Internet is still being used more for searching than buying products and services. Though a noticeable proportion of net users are also net consumers, essentially, at present only a small tribe among them is driving online shopping momentum," says Juxtconsult. LATEST TALK A new trend in this space is that of Meta search engines. Ixigo and Ezeego are two players in this space. A Meta search engine searches all the online travel sites (including the airlines sites as well) and displays the best deals for the user. Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online Pvt. Ltd,

are battling to win over Indias Rs16,000 crore ($400 million) religious travel market. Opportunity in Online Travel Industry: $2billion Online travel company MakeMyTrip (MMT) has recorded sales of Rs. 1000 crore for the financial year ending March 2008, as per a release.

BARRIERS TO GROWTH OF ONLINE MARKET

Consumer Bias Consumers often display a bias for brands that they know well and have had a good experience in the past. Thus products of brands with a favorable bias will score over the products of less popular brands. A few would risk to buy expensive jewelry from an unknown jeweler online. Lack of Touch Feel-Try Experience The customer is not sure of the quality of the product unless it is delivered to him and post delivery of the product, it is sometimes a lengthy proces to get a faulty or the unsuitable
2

product changed. Thus, unless the deliverables are as per the customers expectations, it is hard to infuse more credibility in the e-Tailing market. Mounting Competitive Pressures To attract customers, the competing online players are adopting all means to provide products and services at the lowest prices. This has resulted in making the consumers choice-spoilt, who in turn surf various websites to spot the lowest price for the product. Thus, although the number of transactions is increasing, the value of the products sold is continuously falling owning to high competition and leaner margins. Seasonality eTailing Market is faced by seasonal fluctuations. As told by an Industry player, August to February is the peak seasons for sale, while March to July is the dry seasons for sale. During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas, Mothers Day, Friendship Day etc are. On these occasions younger generations prefers buying and sending gifts online. Credibility in Payment System Online frauds and breach are the biggest barriers to online sales. As a result, prospective buyers prefer staying away from revealing their credit card and bank details. Untimely Delivery of Products It might take a few minutes to search, book and pay for products and services online, but the delivery of the product may take unreasonable time.

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

The objective of this study is to study the growth of E-retail and synthesize the representative existing literature on consumer online shopping attitudes and behaviour based on an analytical literature review and also determine the customer perceptions about E retailing. In doing so, this study attempts to provide a comprehensive picture of the status of this subfield and point out what goes through customers minds while purchasing online and limitations of E-retailing and areas for future research.

SIGNIFICANCE OF THE RESEARCH When we talk about a market research regarding any topic, there should be a significance attached to it otherwise it will not be that effective as it should be. In this case, which is to conduct a research on the E-retailing and what customers think about it, I considered following elements which are directly or indirectly related to this market research, and they are: 1. E-marketers 2. Customers using online services for buying products or services.

SIGNIFICANCE TO THE E-MARKETERS This research will help E-marketers:

1. To identify key factors influencing online shopping purchase behaviour. 2. To identify the factors that can explain the differences in online buying behaviour among different online buyers.

SIGNIFICANCE TO THE CUSTOMERS:

i.

Deciding amongst the various E- retailers - It makes easy for a consumer to decide which Eretailer to visit and shop from a particular product or a service amongst the various options at hand. Since it gives well defined analysis to the consumers about various servicers like ticketing and bill submission, books, apparels, electronic items, etc. being provided by them.

ii.

Awareness about the Online shopping and its advantages- Consumers can know about the various retail portals and theh advantages and at the same time various risks associated with online shopping.

APPROCH TO THE PROBLEM First of all, I decided what are the things I need to collect information about and according to that I prepared a questionnaire. Then the questionnaire was pilot tested. After pilot testing, I found some mistakes in the questionnaire and accordingly made necessary changes in the questionnaire. I took a sample size of about 250 people and interviewed them and collected information about their knowledge and perception about online shopping.

TYPE OF RESEARCH DESIGN

I used descriptive Research Methodology and in that used Survey method and secondary data collection. In secondary research, data was collected from various magazines, research papers, journals, business reviews, internet, etc. and in survey method used personal interview method (filling of questionnaires) to collect primary information. INFORMATION NEEDS I was seeking the information to track the growth of E-retailing in India and the various attributes considered by the customers before deciding to visit an E-retailer and then whether to purchase from it or not. DATA COLLECTION FROM SECONDARY SOURCES Secondary data was collected from various magazines, internet sites, research papers, journals, business reviews, newspaper articles, etc.

DATA COLLECTION FROM PRIMARY SOURCES I collected the data from different people at different locations. I interviewed people at shopping malls in Noida and Delhi, in banks and outside ATMs, Amity university,market place, and over internet. SCALING TECHNIQUES Scaling techniques used were: Likert Scale Nominal Scale

QUESTIONNAIRE PREPARED & PRETESTING I developed the questionnaires with the help of our respected faculty Dr. R.S. Rai and then I pilot tested this questionnaire with a group of 15 people before going to the market for survey. During pre-testing I found that there were some confusing questions and I rephrased those questions and also added some more questions in the questionnaires and after this, the questionnaire was ready for the research work. SAMPLING TECHNIQUES As the sample size was predetermined, i.e., 250, so I used simple convenience sampling which comes under non probability sampling. Non-Probability sampling is the sampling in which sampling units are selected by convenience. FIELD WORK/DATA COLLECTION PROCESS Field work involves selection, training and supervision of persons who collect data. Field workers should be healthy outgoing, communicated, educated, experienced and should have pleasant appearance. All these qualities are required as fieldwork can be strenuous and it needs effective speaking and listening skills. Experienced interviewers are likely to do a better job in following instructions, obtaining respondent cooperation and conducting the interview. I, as a surveyor, went to the respondents in person and administered the questionnaire to them and recorded their responses. At least 4 -6 minutes were spent on recording the responses of a respondent. About 33% of respondents submitted their responses online. This research was mainly descriptive and causal. SAMPLING FRAME Noida - 94

Delhi Gurgaon

-78 - 29

Faridabad - 19 Bangalore - 29

SAMPLING LOCATIONS The locations to conduct survey were Amity university, malls, ATMs of various banks, banks offices, market place, and offices of travel agents. SAMPLING UNITS The sampling population included those who use Internet and corporate executives, students, etc. SAMPLING TECHNIQUES Probability Sampling SAMPLING SIZE VALID RESPONSES ONLINE QUESTIONNAIRES FILLED 249 - 241 - 85

QUESTIONNAIRE ANALYSIS Q1. How do you spend time when you are free?
a) At home

b) watching movies

c) shopping

d) hang out with friends/family

Objective of the question: The main objective of this question is to find out how the respondents spend time when they are free.

Response to the question: We can see that a good mix of respondents has been targeted. Out of the total sample of 415 respondents: 6.42% spend time at home 38.15% spend time watching movies 24.89% spend time shopping 30.52% spend time hanging out with family or friends.

So we can say that a large percentage of the respondents like to spend time out of home, whether it is shopping, watching movies or going out with family or friends.

Q2: How much do you spend monthly on shopping?

a) Less than Rs. 2000

b) Rs. 2000 - Rs. 3000 c) Rs. 3000 - Rs. 4000 d) more than Rs.

4000

Objective of the question The objective of this question is to find out the company respondents like to have when they are free. Response to the question:

Here we can see that 24.89% spend less than Rs. 2000. 32.53% spend Rs. 2000 to Rs. 3000. 28.91% spend Rs. 3000 to Rs. 5000. 13.65% spend more than Rs. 5000.

From the responses to this question we saw that majority (61.54%)of the respondents spend between Rs. 2000 to Rs. 5000.

Q3: How frequently do you visit retailers sites to search for products in a month?
a) Up to 5 times

b) 6-10 times

c) 11-15 times

d) more than 15 times

Objective of the question: Now the objective of such a question was to find out how much the customers are logging onto the E-retailers sites so as to find their awareness about different E-retailers and what new products or services have been added that they may buy.

Response to the question:

Here, we see that 36.14% of the respondents visit retailers sites upto 5 times in a month. 44.17% of the respondents visit retailers sites upto 6-10 times in a month. 17.67% of the respondents visit retailers sites upto 11-15 times in a month. 2.00% of the respondents visit retailers sites upto more than 15 times in a month. So we can say that a fairly high percentage of the customers 61.84% of the respondents visit Eretailers site regularly upto 15 times a month.

Q4: What are the factors that compel you to shop from an e-retailer?
a) Better prices b) convenience c) more variety d) special offers

Objective of the question: Now the objective of such a question was to find out how much the customers are logging onto the E-retailers sites so as to find their awareness about different E-retailers and what new products or services have been added that they may buy.

Response to the question:

Here, we see that 22.08% of the respondents are influenced by better price offers 46.98% of the respondents are influenced by convenience of saving time, not going physically to the store, etc. 26.90% of the respondents are influenced by more variety of products available and different brands available at a single place 4.01% of the respondents are influenced by special offers that the E-retailers give on the purchase of certain products or services. So we can say that convenience of saving time, not going physically to the store, etc. and better prices also play a major role in their decision to purchase from an E-retailer.

Q5: What kind of products do you buy online from e-retailers?

a) Tickets

b) Electronic products

c) apparels

d) books

e) others ______________

Objective of the question:

Now the objective of such a question was to find out how much the customers are logging onto the E-retailers sites so as to find their awareness about different E-retailers and what new products or services have been added that they may buy.

Response to the question:

Here, we see that 44.97% of the respondents visit retailers sites to buy tickets- rail, air, and movies tickets. 15.66% of the respondents visit retailers sites to buy Electronic products. 4.41% of the respondents visit retailers sites to buy apparels 18.07% of the respondents visit retailers sites to buy books, magazines, case studies, etc.

 etc

16.86% of the respondents visit retailers sites for other purposes like mobile recharge,

So we can say that tickets, electronic products and books are the products that rank highly on the customers, priority list for online shopping among other things like buying apparels, flowers, grocery, home appliances, etc.

Q6: Do you feel satisfied with the quality of product/service provided by e-retailers?
a) Yes

b) No

Objective of the question: Now the objective of such a question was to find out whether the customers are satisfied with the quality of the product/service provided by e-retailers.

Response to the question:

Here, we see that

Majority of the customers i.e.74.69% are satisfied with the quality of the product/service provided by e-retailers whereas 25.30% customers are not satisfied with the quality of the product/service provided by e-retailers.

Q7: How many websites you visit before you purchase from an e-retailer?
a) 1-3

b) 3-5

c) 5-8

d) More than 8

Objective of the question: Now the objective of such a question was to find out how many site does a customer visit before making a decision to purchase a product from a particular e-retailer.

Response to the question:

Here, we see that 36.94% of the respondents visit 1-3 retailers sites before purchasing. 40.16% of the respondents visit 3-5 retailers sites before purchasing.. 18.47% of the respondents visit 5-8 retailers sites before purchasing. 4.41% of the respondents visit more than 8 retailers sites before purchasing.

Q8: Does the layout or design /graphics of the website influence you to make a purchase decision?
a) Yes

b) No

Objective of the question:

The main objective of this question is to find out how the respondents spend time when they are free. Response to the question:

Here we can see that 51.8% of the respondents are influenced by the design /graphics of the website 48.19% of the respondents are not influenced by the design /graphics of the website

So we can say that there is an even number of customers who are influenced by the design /graphics of the website and who are not.

Q9: Which is the e-retailer you shop the most from?

a) IRCTC

b) Rediff

c) Amazon.com

d) Future bazaar.com

e) Other __________

Objective of the question: The main objective of this question is to find out which E-retailers are most preferred among customers. Response to the question:

Here we can see that: 30.12% said they shop most from IRCTC. 24.09% said they shop most from Rediff. 4.81% said they shop most from Amazon. 16.46% said they shop most from FutureBazaar. 24.49% said they shop most from others like yatra.com, indiamart, retailsdirect, etc.

So we can say that a large percentage of the respondents like to spend time out of home, whether it is shopping, watching movies or going out with family or friends.

Q10: Do you find all the information you require about the product on the site of the retailer?
a) Yes

b) No

Objective of the question: The main objective of this question is to find out which whether customers find all the information about a product or a service on the retailers site. Response to the question:

Here we can see that 85.54% of customers find all the information about a product or a service on the retailers site 14.45 % of customers find all the information about a product or a service on the retailers site

So we can say that a majority of respondents are satisfied with the information available on the Eretailers sites regarding the product or the service they want to purchase.

Q11

Do you feel safe while paying with credit card? b) No

a) Yes

Objective of the question: The main objective of this question is to find out which whether customers find all the information about a product or a service on the retailers site. Response to the question:

Here we can see that 88.75% of customers feel that it is safe while paying with credit card 11.24% of customers feel that it is not safe while paying with credit card

So we can say that the customer perception about safety of card information is that due to payment gateways, the chances of being cheated are less.

Q12: Do you recommend others to buy online?

a) Yes

b) No

Objective of the question: The main objective of this question is to find out whether customers who shop online themselves recommend others to do the same. Response to the question:

Here we can see that 91.56% of customers recommend others to shop online. 8.43% of customers do not recommend others to shop online.

This shows that majority of customers are themselves satisfied with their experiences and thus recommend others to shop online.

Q13: What concerns you most while purchasing online?

a) Demonstration

b) After sales services

c) Misuse of credit card info d) Delivery time

Objective of the question: The main objective of this question is to find out whether customers who shop online themselves recommend others to do the same. Response to the question:

Here we can see that: 30.12% said that physical demonstration of the product is their main concern while

shopping online online 16.46% said that time taken for the delivery of the product is their main concern while 24.09% said that after sales services is their main concern while shopping online 4.81% said that misuse of the credit card info is their main concern while shopping

shopping online So we can say that demonstration or we can say that touch- and- try feel of the product being absent makes the customers vary about the quality of the product. After sales service and misuse of card info also concerns them.

Q14: Now thinking about your most preferred e-retailer, please indicate your opinions about the following statements: Please rate the following statement: STATEMENT 1: I prefer purchasing from this internet retailer over local offices, malls or stores (a) Strongly Agree (b) Agree (c) Neutral (d) Disagree
(e) Strongly Disagree

Objective of the question:

The main objective of this question is to find out whether the customers prefer purchasing from their favorite internet retailer over local offices, malls or stores. Response to the question:

9.23% respondents strongly agree with the statement. 48.19% respondents Agree with the statement. 23.69% respondents neither agree nor disagree with the statement. 18.87% respondents disagree with the statement. So we can say that more than 57% respondents prefer purchasing from this internet retailer over local offices, malls or stores, in order to save time and to buy different brands at one place.

STATEMENT 2: This e- retailer doesn't just sell products or servicesit also entertains me. Objective of the question: The main objective of this question is to find out whether the find the site of the E-retailer to be attractive enough to visit again and whether he feels good shopping from it.

Response to the question:

46.18% respondents agree with the statement. 35.34% respondents neither agree nor disagree with the statement. 18.47% respondents disagree with the statement. So we can say that a majority of respondents 46.18%agree that E-retailing sites they visit also entertain them.

STATEMENT 3: I consider this e- retailer as my first choice when I need to buy products or services Online.
2

Objective of the question: The main objective of this question is to find out the loyalty of the customers towards Eretailers, whether the give preference to a particular E-retailer every time they shop online. Response to the question:

17.67% respondents strongly agree with the statement. 45.38% respondents agree with the statement. 36.54% respondents neither agree nor disagree with the statement. 0.4% (only 1) respondents disagree with the statement. So we can say that a majority of respondents 63% agree that they prefer a particular E-retailer when they need to buy products or services online.

STATEMENT 4: I intend to continue to visit this Internet retailer's site in the future. Objective of the question: The main objective of this question is to find out whether the customers had a good experience while shopping from an E-retailer and that he will visit again in the future. Response to the question:

34.93% respondents strongly agree with the statement. 39.75% respondents agree with the statement. 25.30% respondents neither agree nor disagree with the statement. So we can say that a majority of respondents are satisfied with their experiences while they visit Eretailers and they intend to visit them again.

STATEMENT 5: The products sold online are of lesser quality compared to those sold through other means Objective of the question: The main objective of this question is to find out what is the perception of the customers about the quality of the products or services they buy online. Response to the question:

26.10% respondents agree with the statement. 31.32% respondents neither agree nor disagree with the statement. 32.93% respondents disagree with the statement. 9.63% respondents strongly disagree with the statement. So we can say that almost three-fourths of the respondents perceive the quality to be as good as they buy through other means.

STATEMENT 6: I enjoy doing business with this Internet retailer. Objective of the question: The main objective of this question is to find out whether the customers enjoy doing business with the E-retailer and they are happy with them. Response to the question:

42.97% respondents strongly agree with the statement. 36.14% respondents agree with the statement. 20.88% respondents neither agree nor disagree with the statement. So we can say that those customers who do online shopping are satisfied and enjoy doing business with their preferred E-retailers.

DEMOGRAPHIC PROFILE OF THE RESPONDENTS: 1. AGE a) 18-22 years b) 22- 30 years c) 30-45 years d) Above 45 years

26% respondents belonged to the age group 18 22 years. 40% respondents belonged to the age group 22 - 30 years. 25% respondents belonged to the age group 30 - 45 years. 9% respondents belonged to the age group of more than 45 years.

2. SEX a) Male b) Female

56% of the respondents were male. 44% of the respondents were female.

3. ANNUAL HOUSEHOLD INCOME a) below 3 lakhs b) 3-5 lakhs c) 5-8 lakhs d) above 8 lakhs

33% of the respondents had an annual household income between Rs. 3 5 lakhs. 54% of the respondents had an annual household income between Rs. 5 8 lakhs. 13% of the respondents had an annual household income above Rs. 8 lakhs.

4. PROFESSION a) Executive b) Government Job c) Business d) Student e) Other

39% of the respondents were Executives. 22% of the respondents were in government jobs. 13% of the respondents were doing business. 22% of the respondents were students 4% of the respondents were housewives.

RELATIONAL ANALYSIS

1. HOW MUCH DO YOU SPEND MONTHLY ON SHOPPING * AGE GROUP CROSSTABULATION COUNT How much do you spend < Rs. 2000 Rs. 2000 - Rs. 3000 monthly on shopping Rs. 3000 - Rs. 4000 >Rs. 4000 Total 18-22 YEARS 15 24 17 9 65 22-30 YEARS 25 31 30 15 101 30-45 YEARS 18 15 20 10 63 ABOVE 45 YEARS 4 11 5 0 20 62 81 72 34 249

In this crosstab we can observe that respondents who were in the age group 22-30 years are the biggest spenders in each category. These are mostly the executives who enjoy shopping and more so online shopping.
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 9.228a 11.551 .312 249 df 9 9 1 sided) .416 .240 .576

a. 2 cells (12.5%) have expected count less than 5. The minimum expected count is 2.73.

2. WHAT ARE THE FACTORS THAT COMPEL YOU TO SHOP FROM AN E-RETAILER * AGE GROUP CROSSTABULATION

COUNT What are the factors that Better Prices convinience compel you to shop more variety from an E-retailer special offers Total

18-22 YEARS 20 27 18 0 65

22-30 YEARS 26 47 26 2 101

30-45 YEARS 5 32 21 5 63

ABOVE 45 YEARS 4 11 2 3 20 55 117 67 10 249

Here we can observe that Convenience is the most compelling factor that attracts customers below the age 30 towards shopping online. Another point to be noted here is that various promotional schemes and combo offers have very few takers when it comes to shop online.

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 24.692a 26.727 7.521 249 df 9 9 1 sided) .003 .002 .006

a. 5 cells (31.3%) have expected count less than 5. The minimum expected count is .80.

3. SATISFACTION LEVEL * SEX CROSS TABULATION

COUNT Do you feel satisfied with the quality of product/service provided by E-retailers Total

Yes No

Male 110 29 139

Female 76 34 110

186 63 249

Here we can see that almost 50% female customers are not satisfied with the quality of the products they buy online which mainly includes jewelry like bracelets, pendants, and designer watches and rail and air tickets.

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Continuity Correctionb Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Casesb 3.266 249 1 .071 3.279a 2.769 3.262 df 1 1 1 sided) .070 .096 .071 .079 .048 Exact Sig. (2sided) Exact Sig. (1sided)

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 27.83. b. Computed only for a 2x2 table

4. WHAT KIND OF PRODUCTS DO YOU BUY ONLINE FROM RETAILERS * AGE GROUP CROSSTABULATION

COUNT What kind of products Tickets do you buy online Electronic Products Apparels from retailers Books Others Total

18-22 YEARS 26 11 4 13 11 65

22-30 YEARS 58 14 3 10 16 101

30-45 YEARS 17 14 1 16 15 63

ABOVE 45 YEARS 11 0 3 6 0 20 112 39 11 45 42 249

In this crosstab, we can see that customers between the ages 22-30 years mostly buy tickets followed by electronic products like i-pods, pen drives, etc. Respondents in the age bracket 18-22 years who were mainly students like to buy rail and air tickets followed by other services like mobile recharge and buying games online.

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33.639a 38.896 .408 249 df 12 12 1 sided) .001 .000 .523

a. 7 cells (35.0%) have expected count less than 5. The minimum expected count is .88.

IMPLICATIONS AND RECOMMENDATIONS FOR FUTURE RESEARCH

As the model indicates, three out of the five dependent variables (consumer attitudes, intentions, and purchasing behavior) and three out of the five independent variables (perceived usefulness, perceived ease of use, perceived enjoyment, information on online shopping, security and privacy, quality of internet connection ) receive the most attention. This seems to constitute the main stream of research in this area. It is found that personal characteristics such as vender/service/product characteristics and website quality significantly affect online shopping attitudes, intention, and behavior.

The role of the external environment, demographics, online shopping decision making, and consumer satisfaction are less well represented in the proposed model.. Any number of factors, including vender/service/product characteristics, website quality, attitude towards online shopping, intention to online shopping, online shopping decision making, and online purchasing, may influence consumers satisfaction.

More importantly, the extent to which customers are satisfied is directly related to attitudes toward online shopping or toward specific Internet stores. The relative importance of this factor in determining such consumer behavior as repeat purchases suggests that further research on consumer satisfaction with online shopping needs to be conducted.

Increased Internet penetration, a hassle free shopping environment and high levels of Net savviness see more and more Indians shopping online.

But at the same time the companies need to reduce the risks related to consumer incompetence by tactics such as making purchase websites easier to navigate, and introducing Internet kiosks, computers and other aids in stores.

The goal is not to convert all shoppers to online purchasing, but to show them its an option.

In addition to above, efforts need to be taken to educate the online buyers on the steps that need to be undertaken while making an online purchase.

Moreover, the feedback of an online buyer should be captured to identify flaws in service delivery. This can be done through online communities and blogs that serve as advertising and marketing tools and a source of feedback for enterprises. I found that it is a challenge for E-marketers to convert low frequency online buyers into regular buyers through successful website design and by addressing concerns about reliable performance. Thus, the online retailing raises more issues than the benefits it currently offers. The quality of products offered online and procedures for service delivery are yet to be standardized. Till the same is done, the buyer is at a higher risk of frauds.

LIMITATIONS OF THIS STUDY

Limitation of the study is the selection of the existing studies. Owing to time limitation, we only searched a few number of journals. This may leave some other prominent empirical studies out. In addition, owing to the multidisciplinary nature of online shopping, it would be very interesting to compare this literature to other disciplines that study online shopping attitudes and behavior.

Now regarding primary research, the main limitation was that the research work was limited to only NCR region and to some extent to Bangalore, from where I got the questionnaires filled online. So this research may not, to a larger extent represent picture.

CONCLUDING REMARKS

The E-retail industry in India has come a long way since its early days. Five years ago ISPs had just taken off. There was no usage, no broadband, no content and no perfect laws for regulating transactions in this type of business. Not only customers but Indian business organizations were unaware of the advantages of transactions made through e-commerce. But now the picture has totally changed. We were at 38.5 million users (54% growth over previous year) in June 2005, according to internet and mobile association of India. It offers huge opportunities and today, internet is a part of our daily lives. Indian organizations are also realizing the potential of E-commerce and using E- commerce technologies in their day to day operations. Now Indian markets have matured and new players have entered in the market space. Companies particularly in the retail business have understood the importance of reaching the customers through internet. As the Indian retail market is witnessing a revolution after 100% FDI in retail sector. The growth of internet has changed the traditional retail format to virtual retailer and forced the existing retailers to consider e-tailing model of retailing as well. A large number of customers use internet for shopping purposes but there are varied reasons for this. Time saving, saving physical effort, better pricing, more international brands available with a click of a mouse, and more importantly, the penetration of internet in India, particularly in cities other than metro cities and also the increased spending power of Indian consumer are some of the factors that have combined to give E-retailing a boost in India.

ANNEXURES
ANNEXURE 1 QUESTIONNAIRE Q1. How do you spend time when you are free?
b) At home

b) watching movies

c) shopping

d) hang out with friends/family

Q2: How much do you spend monthly on shopping?

b) Less than Rs. 2000

b) Rs. 2000 - Rs. 3000

c) Rs. 3000 - Rs. 4000

d) more than Rs.

4000

Q3: How frequently do you visit retailers sites to search for products in a month?
b) Up to 5 times

b) 6-10 times

c) 11-15 times

d) more than 15 times

Q4: What are the factors that compel you to shop from an e-retailer?
b) Better prices b) convenience c) more variety d) special offers

Q5: What kind of products do you buy online from e-retailers?

b) Tickets

b) Electronic products

c) apparels

d) books

e) others ______________

Q6: Do you feel satisfied with the quality of product/service provided by e-retailers?
b) Yes

b) No

Q7: How many websites you visit before you purchase from an e-retailer?
b) 1-3

b) 3-5

c) 5-8

d) More than 8

Q8: Does the layout or design /graphics of the website influence you to make a purchase decision?
b) Yes

b) No

Q9: Which is the e-retailer you shop the most from?

a) IRCTC

b) Rediff.com

c) Amazon.com

d) Future bazaar.com

e) other______

Q10: Do you find all the information you require about the product on the site of the retailer?
b) Yes

b) No

Q11

Do you feel safe while paying with credit card? b) No

b) Yes

Q12: Do you recommend others to buy online?

b) Yes

b) No

Q13: What concerns you most while purchasing online?

b) Demonstration

b) After sales services

c) Misuse of credit card info d) Delivery time

Q14: Now thinking about your most preferred e-retailer, please indicate your opinions about the following statements:

S. No.

Statement

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

1 2 3 4 5 6

I prefer purchasing from this internet retailer over local offices, malls or stores This e- retailer doesn't just sell products or servicesit also entertains me. I consider this e- retailer as my first choice when I need to buy products or services online I intend to continue to visit this Internet retailer's site in the future. The products sold online are of lesser quality compared to those sold through other means I enjoy doing business with this Internet retailer.

PERSONAL DETAILS: Name : ____________________________________________________ Age Group Sex : : 18-22 22-30 30-45 FEMALE c) 5-8 lakhs d) above 8 lakhs d) Student e) Other Above 45

MALE

Annual Household Income: a) below 3 lakhs b) 3-5 lakhs Profession Contact No. :a) Executive :

b) Government Job c) Business

_______________________________

ANNEXURE 2
Different models of consumer attitude towards online shopping

This chart shows how consumer attitude toward online shopping can lead either to approach coping (wanting to shop online) or to avoidance coping (deciding not to search or shop online). Someone who is optimistic toward the benefits of online shopping will develop approach coping. A person who is pessimistic toward online shopping will think of the drawbacks to it and decide to purchase in physical stores instead, which is avoidance coping.

ANNEXURE:3

FRAMEWORK FOR CONSUMERS INTENTIONS TO SHOP ONLINE Source: research by Emerald

ANNEXURE:4
Top Online Travel Industry using Search Engine Marketing and their annual spend in Rupees

Source: IMNAI & Pinstrom

ANNEXURE:5
2

MARKETING TRENDS IN INDIA ONLINE TRAVEL INDUSTRY Searches by Indians every month Over 1 billion Searches by Indians that result in sponsored links shown, every 308 million month Total clicks on sponsored links by Indian users in a month Number of advertisers targeting Indians web-users Total annualized spend by all advertisers targeting Indian users Total annualized spend by Indian advertisers targeting Indian users Most amount spent by one advertiser All brands that spend more than Rs.10 lakhs a year in India Indian brands that spend more than Rs.10 lakhs a year in India Average number of key words bought by a brand Most key words bought by a brand Most clicks bought by a brand in a month Average cost per click paid by advertiser in India Highest cost per click paid by advertiser in India Average search campaign click-through rate Over 4.8 million Over 40,000 Rs.236 crores (US $ 52 m) Rs.72 crores (US $ 16 m) Rs.9.7 crores (US $ 2.2 m) 291 90 42 89,377 599,968 Rs.16.20 ($ 0.36) Rs.266 ($ 5.92) 0.62%

ANNEXURE:6

Internet Retailer Conference 2008: social shopping and networking trends:

- The internet has become the mainstream of the US retail industry with the most innovative and

fastest growing merchants putting the web at the core of their growth strategy. - E-retailing has undergone major changes revolutionizing the way retailers relate to customers. - The industry has recently seen thousands of new merchants while the average merchants market expanded from regional to national. - Many upcoming companies are going to change the way we shop and interact by engaging with retailers, exploiting social networking, mobile commerce, various rich media and other emerging technologies. These basic trends were in the centre of attention at the 4th Annual Internet Retailer 2008 Conference & Exhibition, the worlds largest e-retailing event that was held June 912 in Chicago. Last year the event drew 4,100 attendees while this year it has seen over 5,000 registrants, with 140 speakers in 77 conference sessions featuring 326 eCommerce solution vendors in the exhibit hall. All in all, the biggest buzz has been made

around social networking and the way it will be exploited by the new forward-looking companies that aim at transforming the whole e-Commerce environment and our

conventional shopping behavior. A lot of potential is seen in the way social networking will be blended with e-Commerce and make users engaged in this process. This is where basically eCommerce is heading. The two companies that particularly illustrated this trend during the event are:
1. Pikaba combines social shopping, online merchant community and group buy network.

The site allows you to register either as a user or vendor, after that you can post you
2

wish to buy or wish to sell request or list your products with detailed description, pictures and preferred price and let the community make recommendations and set up deals. Basically you can request just about anything in 30+ categories of products and services.

2. ShopTogether offers the technology to connect online shoppers to friends,

family and call center. It makes you able to invite your friends and family to a shared online shopping session. The call center staff will be able to synchronize with customers to efficiently answer their questions and provide recommendations. These companies seem to have great potential so lets see how they will grow and use is to the full changing our social shopping experience.

ANNEXURE: 7
Various studies and papers have been presented on factors affecting e-tailing.

a. Xuan(2007) lists the factors of successful E-tailing in china and states that sufficient investment was a key determinant of e-tailings success. b. Steve Loma(2006) says that consumers adoption of high speed broadband internet connections has opened up new markets foe e-tailers and enabling new revenue streams for them worldwide. c. Murphy(2007) addresses the materiality of computer aided retailing. d. Szymanski and hise(2000) says that as more e-tailers promise their customers that online experiences will be satisfying ones, understanding what creates a satisfying customer experience becomes more crucial. e. Patrick et. al. (2006)says that customer dropouts represent a critical challenge to online vendors and have severely constrained the proliferation of e-retailing.
f. Tsai and huang (2007) focused on an overall customer satisfaction and consumer

behavior to formulate a conceptual framework that considered community-based, customization-based, desire-based, and constraint-based drivers of online customer retention.

REFERENCES

Consumer online shopping attitudes and behavior: an assessment of research ,by: Na Li and Ping Zhang ,Syracuse University

Consumer attitudes toward shopping venues affect marketing strategies .By Susan

McGinley

The State of E-Commerce: Online Shopping Trends,By James Maguire Journal of Electronic Commerce Research, VOL. 6, NO.2, 2005 Research report by IMNAI & Pinstrom Research report By: Thijs L. J. Broekhuizen ,University of Groningen, The Netherlands Framework for consumers intentions to shop online, research by Emerald Research report By: IAMAI

Amity business Review www.researchandmarkets.com www.businessinsights.biz