A Study on Consumer Awareness and Potential of E-retailing in South Gujarat Region

8/13/2019 A Study on Consumer Awareness and Potential of E-retailing in South Gujarat Region

1/34

A STUDY ON CONSUMER AWARENESS AND POTENTIAL OF E-

RETAILING IN SOUTH GUJARAT REGION

Author

Dr. Hormaz D.Patel

Assistant Professor, The S.P.B College of Business Administration, Udhna Surat. Affiliated to

Veer Narmad South Gujarat University.

Mobile: 09033346271

E-mail:[email protected]

Address: Shirin Meher, Tarota Bazaar, Lashkariwad, Navsari: 396445

Qualification : PhD. (Retailing) , MBA ( Marketing)

Number of Paper Published in International Journals: 04

Number of Paper Published in National Journals: 03

Number of Paper Presented in International and National Conference : 03


2/34

A STUDY ON CONSUMER AWARENESS AND POTENTIAL OF E-

RETAILING IN SOUTH GUJARAT REGION

Abstract

Retail Industry of India contributes to 12 percent of GDP of India. The Indian retail sector is

highly fragmented with 95 percentage of its business being dominated by unorganized retailers

present huge opportunity to organized players to grow. The categories of e-commerce are B2B,

B2C and so on. B2C includes retail transactions of products or services from businesses to

individual customers, and is also called e-tailing (Turban et al. 2006,). The objective of the

study was to study the awareness and potential of e-retailing website in South Gujarat Region.

The researcher has used probability sampling.

EXECUTIVE SUMMARY

Retail Industry of India contributes to 12 percent of GDP of India. According to the report of

IBEF 2010, Indias retail market, valued at US$ 353 billion in the year 2010, is projected to grow

at a rate of 12 per cent per annum and is projected to reach at US $ 543 billion by year 2014 The

Indian Retail Industry is divided into organized and unorganized retail. The Indian retail sector is

highly fragmented with 95 percentage of its business being dominated by unorganized retailers

like traditional family run stores.

The rapid growth of the internet and e-commerce provide new opportunities for Indias retailers,

and a new battle for Indias retail industry has begun. According to the Internet Usage Statistics

of IndiaA 2010 report, there are 88 million active internet users in India and India has 10.52

million broadband users till October 2010, constituting 6 percent of population. Also 85 percent

of internet users are from age group of 18 to 24 years.


3/34

The categories of e-commerce are B2B, B2C, C2C and so on. B2B e-commerce is a transaction

between two business online, while B2C includes retail transactions of products or services from

businesses to individual customers, and is also call e-tailing (Turban et al. 2006,). The objective

of the study was to study the awareness and potential of e-retailing website in South Gujarat

Region. Along with that the study also focuses on the major reason from purchase of e-retailing

in South Gujarat Region. The probability sampling has been used and the survey of 1502

respondents has been done. The study revealed that the awareness of e-retailing is high in South

Gujarat Region but only 35 percent of respondents purchase from e-retailing website. While

major reason for not purchasing through e-retail website were lack of trust on service provider

followed by concern about product quality. Appropriate suggestions have been made.

Key Words: Retailing, E-Retailing, E-commerce, Potential, Awareness


4/34

1. INTRODUCTION TO RETAILING

Retailing is a set of business activities that adds value to the product and service sold to the

consumer for the personal or family use.

Mason et al. (1994) provided a comprehensive classification of retailing and suggested that

retailing can be described in several ways: (1) in terms of activities; (2) as part of a process; (3)

as having structure; and (4) as an intermediary in a channel of distribution. Berman (2005)

argued that retailing could be viewed from multiple perspectives, including tangible and

intangible items, and a distribution channel. Table 1.1 presents various definitions based on

categories of retailing from the classification provided by Mason et al. (1994). For example,

Berman (2005) and Dunne (2005) describe retailing as an intermediary in a channel of

distribution, and Ogden (2005)defines retailing as the process of purchasing and selling goods

and services to the consumer.

Table 1.1:- Classification of Retailing Definitions

Categories Definitions

In terms of activities Kotler (2003).: retailing includes all the activities involved

in selling goods or services directly to final consumers for

personal non-business use.

As part of a process Ogden (2005).: the sale of goods or commodities in small

quantities directly to consumers.

(Source: Weibing Xuan 2007)


5/34

Global Retail Industry

Table 1.2 shows various statistics pertaining to global retail sales. The data shown in the table

depicts growth between the year 2005 to 2007 while it clearly indicates decline in growth during

the year 2008 and 2009 (recessionary period). The recession period has been a chaotic period for

the global retail industry. The factors which contribute to the retail sales such as purchasing

power and consumer confidence were at bottom during the period of recession.

Table 1.2:- Global Retail Sales and contribution of online retail sales (Year2005-2009)

(Source: EIU, August 2010)

According to IMAP Retail Report 2010, Global retail sales in the year 2009 declined by 3.7

percent and reached at US $ 13.9 trillion. Profitability also decline due to the heavy promotional

activities. The profitability of the 200 largest retailers in the world fell to 2.4 to 4.1 percent

during fiscal year ended the year 2009 while more than 30 retailers have reported operating loss.

Even though retail sales exhibited signs of recovery towards the beginning of the year 2010, but

still the outlook was mercy as Western Europe remain depressed, Spain and UK faced problems

regarding unemployment, high government borrowing and household debt. North America was

showing some recovery but growth was subdued due to more jobless claim. Though number of

2005 2006 2007 2008 2009

Retail Sales

( USD billion)

11,000 11,900 13,200 14,500 13,900

Retail Growth Rate

(In percentage)

- 7.2 10.9 9.8 - 4.1


6/34

stores closures in the year 2010 was lower compared to the year 2009. However still global retail

sales growth is expected to be 7.3 percent in the year 2010 and 5.8 percent in the year 2011 and

again will rise to 7.4 percent in the year 2012.

Introduction To Indian Retail Industry

The Indian retail industry is emerging from a multitude of unorganized family-owned businesses

to organized modern retailing. The Indian retail market, over the last decade, has shown greater

acceptance for organized retailing formats. The Indian retail industry has grown at a

Compounded Annual Growth Rate (CAGR) of 13.3 percent for the period year 2006-2010.

Rapid urbanization, changes in shopping pattern, demographic dividend and pro-active measures

by the Government are abetting the growth of the retail sector in India. The Indian retail industry

is classified into organized and unorganized sector. Organized retailing refers to trading activities

undertaken by licensed retailers. These includes the corporate-backed hypermarkets and retail

chains, also the privately owned large retail business

Figure 1.1:- Penetration of Organized v/s Unorganized Indian Retailing

(Source CRIER Report and BMI Retail Report)

94%

6%

Organised Retail

Unorganised Retail


7/34

Unorganized retailing refers to traditional format of low cost retailing such as kirana stores, own

managed general stores, paan/beedi stores, convenience shop, hartcart etc. CRIER Report and

BMI Retail Report 2010 has revealed that the organized retail constitutes 94 percent of Indian

Retail Industry, while organized have humble contribution of just 6 percent.

Present Scenario and Future Trends of Indian Retail Market

Indias retail market, valued at US$ 353 billion in the year 2010, is projected to grow a t a rate of

12 per cent per annum and is projected to reach at US $ 543 billion by the year 2014 according to

the report of IBEF 2010. Further Q111 BMI India Retail Report forecasts that total retail sales

will grow from INR18.85 trn (US $392.63 bn) in the year 2011 to INR 26.64 trn (US $674.37

bn) by 2014 to US$ 785.12 billion by the year 2015.

Figure 1.2:- Indian Retail Market Growth (Year 2002-03 to 2015E)

(Source: IBEF Retail September -2009 and November -2010)

205.4261.8

385353

392.63

543

786

0

100

200

300

400

500

600

700

800

900

2002-03 2004-05 2007-08 2010 2011 (P) 2014(P) 2015(P)


8/34

According to Indian Council for Research on International Economic Relations (ICRIER), the

retail sector is expected to contribute to 22 per cent of India's GDP by the year 2010. A

McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian consumer

market is likely to grow four times by the year 2025. India's overall retail sector is expected to

rise to US$ 833 billion by the year 2013 and to US$ 1.3 trillion by the year 2018, at a compound

annual growth rate (CAGR) of 10 per cent.

The Indian retail industry is divided into two segments which are organized retail and

unorganized retail. Organized retailing refers to trading activities undertaken by licensed

retailers. That means they have to register for sales tax, income tax etc. These include the

corporate backed hyper markets and retail chains and also the privately owned large retail

business. The organized retail is at an emerging stage with the current penetration of 5 percent

compare to 85 percentage of USA. Though the figure of 5 percent is not impressive but on the

other side it also represents that India Organized retail industry is having huge potential to grow

in near future.

While The term unorganized retailing refers to the traditional formats of the retail industry

involving examples, the local kirana stores, owner manned general stores, paan/beedi shops,

convenience stores, hand cart and pavement vendors etc. The unorganized retail sector has also

continued to grow at about 10 percent per annum with sales rising from $ 309 billion in the year

2006-07 to $ 496 billion in the year 2011-12. The unorganized retail sector employees about 33

million people.


9/34


10/34

2. Introduction to E-Retailing

E-tailing which is also known as etailing is the selling of retail goods on the internet. E-retailing

is a common and widespread class of applications used by retailers to sell products and services

to users on the web. E-retailing is synonymous with business to consumer (B2C) transaction.

A classic definition is used as the conceptual framework for e-tailing provided by Turban et al.

(2006, p.83) is as followed:

Retailing conducted online, over the internet

Definitions given by other researchers are as followed:

According to Kritisundar Paul and Anand E-retailing uses internet as a medium for customers to

shop for the goods or services., while Tobias Gunnesson and Klas Soderlund defined as "E-

retailing is a sub-genre of B2C where the core offer is a product and not a service and where the

core product is a physical good. This definition excludes services and information goods but

includes physical goods bundled with accompanying services, for example warranty.

Types of E-Retailing

E-retailers are classified into two categories which are:

Pure-play e-retailers:

They sell directly to consumer over the internet without maintaining a physical sales channel. All

of their business transactions and processes are completed online. This type of online retailers

usually forms the strategic partnership with other companies in order to provide better customer

service. The example of pure-play e-retailer is eBay.


11/34

Click and mortar retailers:

Their business uses both the online as well as offline channel for selling products. These players

have some advantage over pure play retailers such as established brand image, existing complete

distribution channel, established brand awareness and customer loyalty.

Global E-Retail

Global e-commerce, including travel and auto purchases as well as online retail sales will

increase 13.5 percent annually for the next four to five years and reach an estimated US $ 1.4

trillion in the year 2015 according to Cisco Systems Incs Economic & Research Practice. The

global retail online sales grow by 14.5 percent in the year 2009 and reached at US $ 348.6 billion

USD. Electronics was the largest segment in global retail sale contributing around 22.6 percent.

Figure 2.1: Comparison of Growth of Traditional V/S Online Retail (Year 2006-2009)

(Source: EIU, Datamonitor, IMAP)

7.20%

10.90%9.40%

-3.70%

22.70% 22.10%

12.40%

14.50%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2006 2007 2008 2009

Traditioal Retail

Growth

Online Retail Growth


12/34

While the online retail sales sector continues to outperform, its magnitude remains small with 2.5

percent of total global retail sales. On an average basis, globally, online sales accounts for 6.6

percent of total sales for the top 100 retailers in the year 2009. As per IMRG the global e-retail

sales increased by almost 25 percent to 591bn euro in the year 2010.

Indian E-Retail

According to Digital Route LLC estimates, in India the retail e-commerce market in 2008 was

tiny fraction of the total retail market which was 0.1 percent and is expected to reach S 4bn by

the year 2013. Retail e-commerce share will increase rapidly due to much faster growth

compared to overall retail market. As per the prediction, retail E-commerce will touch $ 4bn by

the year 2013 from $ 450 million in the year 2010 which means its penetration will achieve 0.6

percent which is far below US at 6 percent and China at 7 percent. A study conducted by

ASSOCHAM found that 65 percent of Mumbai residents shop online. The rising fuel price is

keeping most of the shoppers indoor and encouraging them to embrace the new online mode of

shopping. The study conducted in 10 Indian cities also claims that the online retail industry in

India is likely to be worth Rs. 7000 crore by the year 2015. The Nielsen Company has also

announced findings of its Global Online Shopping Report conducted in September 2010. In

India they have done survey of 502 samples. The findings of survey revealed that out of total

respondents 23 percent had never shopped online.


13/34

Component Share of E-Tailing of India

Table 2.1:- Component share of E-Tailing

Component Market Size Percentage

Computer, Accessories, Storage and peripheral 560 36

Camera and Mobile 389 25

Personal Items ( Apparels, Jewellery ) 296 19

Electronic Durable 203 13

Home and Kitchen Appliances 62 4

Other Products ( Gifts, Toys, Flowers) 40 3

(Source: Report of Online Commerce: March 2011, IAMAI)

At present, PCs, laptops, computer peripherals, accessories and storage, contribute the most 36

percent (INR 560 crores) to e-tailing followed by cameras & mobiles contributing 25 percent

(INR 389 crores). Personal items such as jewellery, apparels, cosmetics, apparels, shoes and

watches contribute 19 percent (INR 296 crores) whereas Electronic items like TV, Audio

systems & other accessories account for 13 percent (INR 203 crores) Balance 7 percent is

contributed by Home & kitchen appliances (4 percent) and other online buying (toys, gifts,

flowers etc.)


14/34

Benefits of E-Retailing

Table 2.3: Benefits of E-Retailing

Benefits Example

Organization Increased Sales Opportunity,

Decrease transaction Cost,

Ability to operate 24*7,

Ability to maintain customer relationship with

direct interaction,

Enhancing Brand Image,

Reduction of Marketing and Advertising Costs

Customer Wider Product Availability,

Ability to shop 24*7,

Easy Comparison Shopping,

Ability to create one-on-one relationship with

seller,

Time Saving,

Cheap Products and So On.

Society Improved quality of living


15/34

Limitation of E-Retailing

Table 2.4: Limitations of E-Retailing

Limitation Example

Organization Rapidly changing technology,

Insufficient telecommunication capacity in

some areas,

Problems maintaining security and

reliability,

Global market issue of language,

Currency and policies,

Increase instances of fraud

Buyer Concern with Transaction security &

privacy,

Lack of trust for unfamiliar sites,

Inability to touch and feel the product

before purchase

What is Consumer Awareness

Consumer awareness refers to a buyer's knowledge of a particular product or company, allows

the buyer to get the most from what he buys. Consumers know more about their choices when

they have product information and benefit from knowing their rights, hearing about alerts and

warnings and finding out about safety issues. Measuring consumer awareness requires more than

just approaching a consumer and asking, "Have you heard of our product?" It requires measuring


16/34

sales, tracking consumer preferences, and determining a show of interest for the product or

service.

Each stage of awareness is one of the main pieces Eugene Schwartz discussed in his book

Breakthrough Advertising

Eugene gives the stages of Awareness in Customers as follows:

1. The most aware: Customer knows your product, knows what it does, and knows he wantsit.

2. Customer knows of your product, but doesnt yet want it3. New Product: Customer knows or recognizes that they want what the product does. But

doesnt know that there is a product, yours, that will fulfill their want.

4. New products that Solve Needs: Customer has a need they want fulfilled but isnt awareof the connection between their need and your product.

5. The customers are completely unaware about the market

Studied revealed that knowledge related to product/service will increase awareness and

awareness has direct impact on the behavior of individual. Companies usually set a target for the

degree of awareness they intend to achieve, and then plan a promotional campaign to reach that

target. Companies are using advertising, sales promotion, publicity, personal selling, social

media and other marketing activities to increase awareness amongst potential customers.


17/34

3. Literature Review

Persson, C. (2001). studied Strategies for enhancing consumer interaction in electronic

retailing. The objectives of his study were to examine the potential for e-commerce by

identifying and analyzing factors that are important for the consumers in making use of the new

medium. The results of the studies indicate that all three strategies can give important

contributions to the establishment of ease-of-use in e-commerce. The Multi-Channel Retailing

strategy seems to be the most useful strategy in the short run. The Analytical technology strategy

and the Hypermedia interface strategy have the potential to become important strategies in the

future of e-commerce.

Gunnesson, T., Soderlund, K. (2001). completed work on Creating competitive advantage in

mature e-retailing market. The purpose of the study is to know the sources of advantage that

make e-retailer offering better than competitors e-retail offering. They have collected data by

taking interview of five consultants from three consultancy firm. They found that the company

should transfer the advantages gained in the e-retail arena to strengthen competitive position in

retailing as a whole.

Chiang and Dholakia (2003). carried out a survey amongst 147 adults to examine consumers'

intention to shop online during the information acquisition stage. The study incorporated three

essential variables that were likely to influence consumer intentions: a) convenience

characteristic of shopping channels, b) product type characteristics, and c) perceived price of the

product. They found that convenience and product type influence consumer intention to engage

in online shopping. When consumers perceived offline shopping as inconvenient, their intention

to shop online was greater.


18/34

Rotem-Mindali, O., Salomon, and I. (2006). have studiedThe impacts of E-retail on the choice

of shopping trips and delivery: Some preliminary findings. The objective of the study was to

develop a conceptual model of the decisions households make with regard to information

gathering, purchase transactions and delivery mode. To collect data, they have developed a

structured questionnaire and respondents were asked to assess a large variety of aspects

concerning their shopping habits, preferences as well as attributes concerning their accessibility

to and usage of IT-based applications. They found that a number of respondents use internet to

collect the information before purchasing product. Study also revealed that the major reason to

purchase online was the cheaper price of the product followed by busy schedule.

Araghchi, S. (2007). studied Service quality, customer satisfaction, customer experience and

behavioral intention in Iranian retail store. The objective of the study was to investigate and

determine the nature of service quality construct and its relationship with these of Customer

Satisfaction, Customer Experience and Behavioral Intention. The study also aim to identify

which dimension that is best predictor of service quality, in terms of generating the outcome that

identifies the dimension regarding service quality in Irani Retail store. The researcher has done

the survey of 500 respondents with the help of questionnaire as a data collection tool. The major

findings were reliability of the store and its service plus responsiveness are the most important

dimensions in compare with other three dimension.

Brown, B., Oleksik, G., Bisdee, D (2007). studied Consumer attitude review internet shopping.

The aim of the research was to establish how consumers perceive the internet as a sales channel,

the reasons for using it or not using it, how consumers use the internet to purchase

goods/services and their experiences of such use. The study investigates the factors affecting


19/34

internet purchasing behavior such as consumer attitude, belief, personality, nature of website and

so on.

Devendra P.S (2007). has done study on Is Retailing in India Boon or Bane. He has done the

study with the help of secondary data. He found that rising disposable income in the middle class

and lower middle class with an increase in employment opportunities for young adults in IT and

IT enable sectors are the major reasons for growth in retail sector in India. He added that along

with serving the needs of upper class people, organized retailers should also focus on satisfying

needs of lower class people too.

Akash (2009). says that Retail business in India, as anywhere else in the world, plays a crucial

role in an economy. Retail in India has the potential to add value over Rs 2,00,000 crore

($45billion)business by the year 2010 generating employment for some 2.5 million people in

various retail operations and over10 million additional workforce in retail support activities

including contract production and processing, supply chain and logistics, retail real estate

development and management. Gibson, CEO Retail Association of India opines (2007) that

modern retailing today is growing faster than expected while the current growth rate is around 30

percent, the sector is expected to grow at 40- 50 percent on a year basis.

Zaveri, B. (n.d.). has done study on Online versus offline shopping activities of female internet

users in selected cities of Gujarat. She has conducted her study in four major cities of Gujarat

which are Ahmadabad, Surat, Vadodara and Rajkot with 650 respondents participating in it. The

findings of the study revealed that female shoppers in Gujarat prefer to buy books, flowers,

computer software, book railway tickets and do banking through internet. When it comes to

products like clothes, accessories or shoes, female buyers use internet to collect primary details

only, but opt to buy them from the store instead of placing an order online.


20/34

4. Research Methodology

Objective of Study

1) To study the awareness of e-retailing in South Gujarat Region.

2) To study the potential of e-retailing in South Gujarat Region.

Data Collection Method

For the study purpose, the researcher has used descriptive research design. Data has been

collected through both primary and secondary source. The researcher has used survey method to

collect primary data and has prepared a schedule. The researcher has used probability sampling

method for the collection of primary data from South Gujarat Region. Major cities selected were

Surat, Navsari, Bharuch, Valsad, Vapi and Vyara. The pilot testing has been done and sample

size for pilot testing was 305. And on the basis of pilot testing necessary changes have been

made in questionnaire and the final sample size was 1502.

The data and information required for the study were collected from various secondary sources.

The data were collected from various books on the research related topic, research journals like

Marketing Mastermind, The IUP Journal of Marketing Management, Analysis, IIMB

Management review, Indian Journal of Marketing, Footfalls. Annual reports of various retail

players like Future Group, Shoppers shop, research agencies like Technopak and IBEF, ICRIER

and BMI reports, Indian Retail Report 2009, AT Kearney reports for understanding retail

scenario


21/34

Respondents Profile

Out of total respondents 76 percent of respondents were male while 24 percent of respondents

were female. While age wise 67 percent of respondents were in the age group of 26 to 40 while

20 percent of respondents were in the age group of 41 to 55. 56 percentage of respondents were

highly educated followed by 27 percent of respondent were from H.S.C. Out of total respondent

78 percent of respondents were aware about computer while out of computer users 80 percent of

respondents were internet users. Out of total internet users only 35 percent of responds have

purchase from e-retailing website. Majority of respondents prefer to use internet form home and

office and spent between Rs.1000 to 10,000 on internet. Age, Income and Occupation have

impact on purchasing from e-retailing website.

Hypothesis Testing

H0A: There is no significant relationship between age group and e-retailing.

H1A: There is significant relationship between age group and e-retailing.

H0B: There is no significant relation between education level and e-retailing.

H1B: There is significant relation between education level and e-retailing.

H0C: Income of respondents has no significant relation with e-retailing.

H1C: Income of respondents has significant relation with e-retailing.

H0D: Occupation of respondents has no significant relation with e-retailing.

H1D: Occupation of respondents has significant relation with e-retailing.


22/34

H0E: The preference for e-retailing does not depend on the gender of the person.

H1E: The preference for e-retailing depends on the gender of the person.

Table 4.1: Summary Table of Hypothesis Testing of Impact of Demographic Factors on E-

Retailing

Demographic

Factor

Chi Square Value P-value @ 5 %

significant level

Hypothesis

Status

Age 8.604 0.035 H0A is rejected.

Education 11.590 0.003 H0B is rejected.

Income 94.608 0.000 H0c is rejected

Occupation 128.555 0.000 H0D is rejected

Gender 0.005 0.945 H0E cant be rejected

FINDINGS

1. Out of total internet users only 35 percent respondents purchased online and 65 percent ofrespondents did not purchase online.

2. The preference for purchasing online was independent of the gender of the respondents.3. Majority (78 percent) of the online purchasers were from higher educationgroup. While

that of less than H.S.C were 18 percent and less than S.S.C was 4 percent.

4. Out of total online shoppers 35 percent respondents belong to income group Rs.3, 00,000to 5, 00,000per annum while 28 percent of online shoppers belonged to income group ofRs Above 5, 00,000. While 31 percent of online shoppers belonged to income group of


23/34

Rs. 1, 50,000 to 3, 00, 00 and 6 percent of online shoppers belonged to income group of

Less than 1, 50,000.

5. 58 percent of online shoppers were from Business class while 28 percent of respondentswere from service class. Along with that 10 percent of online shoppers were self

employed and 4 percent of online shoppers were students while the contribution from

unemployed was almost negligible.

6. The respondents ageing between 26 to 40 yrs (78 percent) purchased online more thanany other age group. While 14 percent of respondents from age group of 41 to 55

purchased online and 7 percent of respondents from age group of 18 to 25 years

purchased from website. While only 1 percent of respondents from age group of 55 and

above purchased online.

Findings Related To Awareness of E-Retailing in South Gujarat Region

The awareness related to e-retailing has been measured on the basis of six categories developed

for the researches by the researcher are as followed.

1. Aware e-retailing and Purchased Regularly.2. Aware about e-retailing and Purchased frequently.3. Aware about e-retailing but not purchased.

4. Heard about e-retailing but dont know procedure to purchase5. Not aware about e-retailing.6. Not aware about internet operating.


24/34

Table 4.2: Awareness of E-Retailing in South Gujarat Region

Categories Related to Awareness of E-Retailing Frequency

Aware about e-retailing and Purchased Regularly 169

Aware about e-retailing and Purchased frequently 79

Aware about e-retailing but not purchased 311

Heard about e-retailing but dont know procedure to

purchase

300

Not aware about e-retailing. 12

Not aware about internet operating 75

Total 946

Interpretation:

It is found that 18 percent of respondents were aware about e-retailing and purchasedregularly from internet while those of 8 percent of respondents purchased frequently.

33 percent of respondents were aware about e-retailing but not purchased from internetwhile 32 percent of respondents heard about e-retailing but did not know the procedure to

purchase online.

1 percent of respondents were not aware about e-retailing while 8 percent of respondentswere not aware about operating internet.


25/34

CONCLUSION

The awareness about e-retailing is high in South Gujarat region from consumerperspective but the retailers perceive that the knowledge related to e-retailing is less

among these consumer.

Potential of e-retail can be understood with the help of three categories of factors viz.consumer related factor, e-retail website related aspects and retailers perspective towards

e-retail as a format of retailing. On the basis of the present study consumer related aspect

such as age, income, occupation, education of consumer and hours spend by consumer on

internet has statistically significant impact on the decision of purchase through e-retail

format. The analysis of the data gathered shows that the people from age group 26 to 40

make significantly more purchase compared to others, while it has been proven that the

people falling in the income range of 3 lakh to 5 lakh prefers to purchase from e-retail

compared to their other counter parts. Also it is seen that e-retailing is more popular with

Business as occupation and higher educational background. The purchase from e-retail

website is directly proportional to time spent on internet.

The growth of internet and change in lifestyle is presenting a lot of potential to the e-retailing in South Gujarat. Though majority of respondents are using internet but those

who purchase online is less which indicate that there is huge untapped market available

for e-retailers.

Thus on the basis of the above discussion it may held that the potential target market forthe e-retail is businessman and service class people having higher educational


26/34

qualification who are of age group 26-40 years, having income range of 3 to 5 lakh and

spending more than 6 hours on the internet in a week.

MODEL OF E-RETAILING

The factors affecting the success of e-retailing are shown in model.

MMMooodddeeelllooofffEEE---rrreeetttaaaiiillliiinnnggg

Decision to

Purchase

Online

Age

Educational

Qualification

Income

Internet Usage

in Hours

Occupation

Trust

Content

ualit

Systems

ualit


27/34

SUGGESTION

Brick and Mortar retailers can tie-up with communication service providers and launch a

plan like shop and surf in which if a customer purchases fromphysical retail store,

he/she will get reward balance to access internet.

E-retail service providers should focus on targeting young generation in the age group of26 to 40. This can be done through sponsoring those programmers which are targeted to

age range of 26 to 40 as majority of online respondents are in the above mention age

range. E-retailers must undertake systematic research to understand what value shopper is

looking for and also try to deliver customize products too.


28/34

Bibliography

ARTICLE

1.

Collier, J., Bienstock, C.Measuring Service Quality in E-Retailing.Journal of Service

Research 2006 8: 260. doi: 10.1177/1094670505278867

2. Das, A., Agarwal, R.(2010). Cashless Payment System in India- A Roadmap.Retrieved fromhttp://dspace.library.iitb.ac.in/jspui/handle/10054/1732

3. Das,P.(2011). Multi-Brand Retailing in India: curse or boon? Retrieved fromwww.psalegal.com/upload/publication/assocFile/ENewslineMarch2011.pdf

4. Dhanabhakyam,M.,Shanthi,A.(n.d.).Indian Retail Industry-Its Growth, Challenges andOpportunities. Retrieved from aculty.ksu.edu.sa/75973/Documents/ICC.pdf.

5. Ding, M. (2010). A study of consumer trust in internet shopping and the moderatingeffect of risk aversion in Mainland China. Retrieved from

libproject.hkbu.edu.hk/trsimage/hp/07050526.pdf

6. du Plessis, P. Mostert, P., North, E. (2004). Period of internet usage: An indicator ofthe buying behavior of internet users? SAJEMS NSVol 7 (2004) No 1.Retrieved from

www.mendeley.com/.../period-internet-usage-indicator... - United States

7.

Eichengreen, B., Gupta, P. (2010).The Service Sector as Indias Road to Economic

Growth? Retrieved fromwww.icrier.org/pdf/Working%20Paper%20249.pdf

8. Eid, M. (n.d). Determinants of e-commerce customer satisfaction, trust and loyalty in
http://dspace.library.iitb.ac.in/jspui/handle/10054/1732http://dspace.library.iitb.ac.in/jspui/handle/10054/1732http://dspace.library.iitb.ac.in/jspui/handle/10054/1732http://www.psalegal.com/upload/publication/assocFile/ENewslineMarch2011.pdfhttp://www.psalegal.com/upload/publication/assocFile/ENewslineMarch2011.pdfhttp://www.icrier.org/pdf/Working%20Paper%20249.pdfhttp://www.icrier.org/pdf/Working%20Paper%20249.pdfhttp://www.icrier.org/pdf/Working%20Paper%20249.pdfhttp://www.icrier.org/pdf/Working%20Paper%20249.pdfhttp://www.psalegal.com/upload/publication/assocFile/ENewslineMarch2011.pdfhttp://dspace.library.iitb.ac.in/jspui/handle/10054/1732


29/34

Saudi Arabia. Retrieved from

http://www.csulb.edu/journals/jecr/issues/20111/Paper5.pdf

9. FICCI. (2009, December-January).FOOTFALLS.Vol-1, Issue-2.Retrieved fromwww.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdf

10.FICCI. (2009, May-June).Footfalls.11.FICCI. (2010, December-January).footfalls.Vol-1, Issue-5.Retrieved from

www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdf

12.FICCI. (2010, June-July).footfalls.13.FICCI.(2008,October-November).FOOTFALLS.Vol-1,Issue-1.Retrieved

www.ficci.com/SPdocuments/20039/Footfalls-oct-nov08.pdf

14.FICCI.(2008,October-November).FOOTFALLS.Vol-1,Issue-1.Retrievedwww.ficci.com/SPdocuments/20036/Footfalls-may-june.pdf

15.FICCI.(2010,March-April).FOOTFALLS.Vol-1,Issue-3.Retrieved fromwww.ficci.com/SPdocuments/20037/Footfalls-mar-apr.pdf

16.Gupta, A. (n.d.). Foreign Direct Investment in Indian Retail Sector: Strategic Issue andImplications.International Journal of Management and Marketing Research. Vol-1,

Issue-1. Retrieved fromwww.skirec.com/images/download/ijmmr/5.pdf

RESEARCH REPORTS

1. A CII-AT Kearney Report. (2006).Retail in India: Getting organized to drive growth.
http://www.csulb.edu/journals/jecr/issues/20111/Paper5.pdfhttp://www.csulb.edu/journals/jecr/issues/20111/Paper5.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.ficci.com/SPdocuments/20039/Footfalls-oct-nov08.pdfhttp://www.ficci.com/SPdocuments/20039/Footfalls-oct-nov08.pdfhttp://www.ficci.com/SPdocuments/20036/Footfalls-may-june.pdfhttp://www.ficci.com/SPdocuments/20036/Footfalls-may-june.pdfhttp://www.ficci.com/SPdocuments/20037/Footfalls-mar-apr.pdfhttp://www.ficci.com/SPdocuments/20037/Footfalls-mar-apr.pdfhttp://www.skirec.com/images/download/ijmmr/5.pdfhttp://www.skirec.com/images/download/ijmmr/5.pdfhttp://www.skirec.com/images/download/ijmmr/5.pdfhttp://www.skirec.com/images/download/ijmmr/5.pdfhttp://www.ficci.com/SPdocuments/20037/Footfalls-mar-apr.pdfhttp://www.ficci.com/SPdocuments/20036/Footfalls-may-june.pdfhttp://www.ficci.com/SPdocuments/20039/Footfalls-oct-nov08.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.ficci.com/SPdocuments/20038/Footfalls-dec-jan.pdfhttp://www.csulb.edu/journals/jecr/issues/20111/Paper5.pdf


30/34

New Delhi

2. AT Kearney. The BRIC Promise3. Ablett, J., Baijal, A. (May 2007).The Bird of Gold. The rise of Indian Consumer market.4. Shrivastava, B., Abhichandani, T. (2011).Report on Online Commerce.Mumbai:

Dr.Subho Ray, President, on behalf of Internet and Mobile Association of India.

5. Bhatia, D. (2007).Retail Sector.6. (2010).BMI India Retail ReportQ1 2011.7. CB RICHARD ELLIS. (January to June 2010).Market View: India Retail8.

CEA (March 2009).International Insider Series: Global Retail and Distribution.

9. Census of India 2001. (2003). Housing Profile: Gujarat. New Delhi.10.Census of India 2001.Basic Data Sheet, District Bharuch.11.Census of India 2001.Basic Data Sheet, District Surat.12.Census of India 2001.Basic Data Sheet, District Navsari.13.Census of India 2001.Basic Data Sheet, District Valsad.14.Checkpoint. (2010).The Global Retail Theft Barometer 2010.15.CII-AT Kearney. (2006).Retail in India-getting Organized to drive growth.16.Datamonitor, O. (2008).Internet access in India, Industry profile, Datamonitor, July

2008.

17.DIBD-OMII. (October 2010).The Indian Food Industry.18.Deloitte. (2010).Indian retail market: Changing with the changing times.19.Deloitte. (October 2009).Emergingfrom the downturn: Global Powers of Retailing

2010.London.

20.Deloitte. (2011).Leaving Home Global Powers of Retailing 2011.London.


31/34

21.DEMETER GROUP. (2011).Retail Industry 2010 Review and 2011 Outlook. SanFrancisco.

22.Dryden. (2001).Business-To-Consumer E-Commerce Statistics.23.Economic Survey 2007-2008. State wise literacy rate (1951-2001).24.ERNST&YOUNG. (2010).Retail25.ERNST&YOUNG. (March 2009).Organizing for organized retail in India.26.ERNST&YOUNG. (2008).Retail market and Opportunity. Gurgaon.27.eTechnology Group. (September 2007).Consumer E-commerce in India

2006/07.Mumbai.

28.Euromonitor International Ltd. World Retail Data. London.29.Euromonitor International Ltd. (2008).Annual Gross IncomeIndia.30.Frank, K. (2010).India Organized Retail Market Diagnosis & Outlook.31.FICCI. (July 2009).FMCG Sector: Road Ahead.32.Gupta, P. Organized Retail in India. The Next Growth Frontier.33.Gupta, R. (2010).Overview of Indias Consumer and Retail Sector.34.IAMAI. (2010).I-Cube 2009-10: Internet in India.Mumbai: Dr.Subho Ray.35.IAMAI. (July 2010).Report on Mobile VAS in India: 2010.36.IAMAI. (March 2011).Report on Online Commerce. Mumbai: Dr.Subho Ray.37.IBEF. (2009).RETAIL38.I-Cube. (2009).I-Cube 2008: Internet in India. Mumbai.39.I-Cube. (2007).Internet in India. A Report by IMRB International and IAMAI.40.IMAGES F&R Research.India Retail Report 2009.New Delhi.41.IMAGESRetail,August 2005.


32/34

42.IMRB International. (December 2010).Internet Usage and Habits of Cyber Caf Users.43.IMRB International. (December 2009).Mobile Internet in India. Mumbai: Dr. Subho Ray.44.IOAI (2005).Ecommerce Security 2005.A survey by Internet and Online Association.45.Interbrand. (2011).Best Retail Brands 2011.UK.46.International Monetary Fund. (April 2009).WorldEconomic Outlook: Crisis and

Recovery.Washington.

47.Jaggi, R. (2009).Prospects in Indian Retail Sector.48.Karamchandani, D. (January 2011).India Retail Apparel. Mumbai.49.

KPMG. Accelerating growth in Gujarat.

50.KPMG.FDI in Multi-Brand Retail Trading.51.KPMG. (2005).Indian Retail: on the fast track, Time for bridging capability gaps.52.KPMG. (2009).Indian Retail: Time to change lanes.53.KPMG. (December 2010).Sharing Knowledge on topical issue in retail industry.54.KPMG. Retail Outlook for China 2005.55.KPMG. Trends in Retailing-Germany.56.My DECKER CAPITAL. (2011).China Retail Sector-Macro Trends.57.NCAER, FCR, (n.d.). Twenty places to watch.58.Nielsen. (January 2011).Global Consumer Confidence, Concerns and Spending.USA.

Webliography

1. (n.d.). Retail: Overview. Retrieved fromhttp://ww2.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Retail/o

verview/p!egiLLL
http://ww2.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Retail/overview/p!egiLLLhttp://ww2.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Retail/overview/p!egiLLLhttp://ww2.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Retail/overview/p!egiLLLhttp://ww2.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Retail/overview/p!egiLLL


33/34

2. (n.d.). Retail: Overview. Retrieved fromhttp://www.prospects.ac.uk/industries_retail_overview.htm

3. (n.d.). Indian Retail: A Growth Story. Retrieved fromhttp://www.jagranjosh.com/articles/Indian-Retail-A-Growth-Story-1294393971-1

4. (n.d).Evolution of the Indian Retail Sector. Retrieved fromhttp://www.naukrihub.com/india/retail/overview/evolution/

5. (n.d.) AN ANALYSIS OF INDIAN RETAIL INDUSTRY. Retrieved fromhttp://www.docstoc.com/docs/27855682/AN-ANALYSIS-OF-INDIAN-RETAIL-

INDUSTRY

6. (2010).Indian Retail Industry Trends. Retrieved fromhttp://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-retail-

industry-trends.

7. FICCI & Austrade. (n.d.). Retail Sector: Economic & Regulatory Enablers. Retrievedfromhttp://www.indianwineacademy.com/india_in_numbers.asp

8. (n.d.). A project report on consumer preference towards organized and unorganizedretail stores. Retrieved fromhttp://www.slideshare.net/hemanthcrpatna/a-project-

report-on-consumer-preference-towards-organized-and-unorganized-retail-stores

9. (n.d.). India Retail Sector. Retrieved fromhttp://business.mapsofindia.com/india-industry/retail.html

10. (n.d.). Indian Retail Industry-Its Growth, Challenge and Opportunity. Retrieved fromhttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-

retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-

growth-challenges-and-opportunities7.asp
http://www.prospects.ac.uk/industries_retail_overview.htmhttp://www.jagranjosh.com/articles/Indian-Retail-A-Growth-Story-1294393971-1http://www.naukrihub.com/india/retail/overview/evolution/http://www.docstoc.com/docs/27855682/AN-ANALYSIS-OF-INDIAN-RETAIL-INDUSTRYhttp://www.docstoc.com/docs/27855682/AN-ANALYSIS-OF-INDIAN-RETAIL-INDUSTRYhttp://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-retail-industry-trendshttp://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-retail-industry-trendshttp://www.indianwineacademy.com/india_in_numbers.asphttp://www.slideshare.net/hemanthcrpatna/a-project-report-on-consumer-preference-towards-organized-and-unorganized-retail-storeshttp://www.slideshare.net/hemanthcrpatna/a-project-report-on-consumer-preference-towards-organized-and-unorganized-retail-storeshttp://business.mapsofindia.com/india-industry/retail.htmlhttp://business.mapsofindia.com/india-industry/retail.htmlhttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asphttp://business.mapsofindia.com/india-industry/retail.htmlhttp://business.mapsofindia.com/india-industry/retail.htmlhttp://www.slideshare.net/hemanthcrpatna/a-project-report-on-consumer-preference-towards-organized-and-unorganized-retail-storeshttp://www.slideshare.net/hemanthcrpatna/a-project-report-on-consumer-preference-towards-organized-and-unorganized-retail-storeshttp://www.indianwineacademy.com/india_in_numbers.asphttp://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-retail-industry-trendshttp://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-retail-industry-trendshttp://www.docstoc.com/docs/27855682/AN-ANALYSIS-OF-INDIAN-RETAIL-INDUSTRYhttp://www.docstoc.com/docs/27855682/AN-ANALYSIS-OF-INDIAN-RETAIL-INDUSTRYhttp://www.naukrihub.com/india/retail/overview/evolution/http://www.jagranjosh.com/articles/Indian-Retail-A-Growth-Story-1294393971-1http://www.prospects.ac.uk/industries_retail_overview.htm


34/34

Date post:	04-Jun-2018
Category:	Documents
Upload:	hormaz-patel
View:	219 times
Download:	0 times