Consumer Behavior of Internet Marketing

7/28/2019 Consumer Behavior of Internet Marketing

1/61

A Study on Consumer Behavior of Internet Marketing

CHAPTER 1

INTRODUCTION

A STUDY ON CONSUMER BEHAVIOUR OF INTERNET MARKETING

MARKETING:-

Marketing deals with identifying and meeting human and social needs. One of the

shortest definitions of marketing is meeting needs probability

A market-focused, or customer-focused, organization first determines what its

potential customers desire and then builds the product or service. Marketing theory and

practice is justified in the belief that customers use a product or service because they have a

need, or because it provides a perceived benefit.

TWO LEVELS OF MARKETING

STRATEGIC MARKETING:

It attempts to determine how an organization competes against its competitors in a

market place. In particular, it aims at generating a competitive advantage relative to its

competitors.

OPERATIONAL MARKETING:

It executes marketing functions to attract and keep customers and to maximize thevalue derived for them, as well as to satisfy the customer with prompt services and meeting

the customer expectations. Operational marketing includes the determination of the marketing

mix.

Advanced Management College 1 Bangalore


2/61


A SHORT HISTORY OF THE INTERNET

The internet has existed since the late 1960s when a limited number of computers

were connected in the United Sates to form the ARPA net. This was mainly used to enable

academics and military personnel to exchange defense information.

The internet refers to the physical network that links computers across the globe. It consists of

the infrastructure of network servers and wide-area communication links between them that

are used to hold and transport the vast amount of information on the Internet.

The recent dramatic growth in the use of the internet has occurred because of the developmentof the World Wide Web. This became a commercial proposition in 1993 after development of

the original concept by Tim Berners-Lee, British scientist working at CERN in Switzerland in

1989. The World Wide Web changed the Internet from a difficult-to use tool for academics

and technicians to an easy to use tool for finding information for businesses and consumers.

INTERNET MARKETING DEFINED

Internet marketing can be defined as Achieving marketing objectives through use ofelectronic communications technology.

The definition of marketing by the Chartered Institute of Marketing

Marketing is the management process responsible for identifying, anticipating and satisfying

customer requirements profitably.

INTERNET MARKETING:-Internet marketing can be defined as the use of the Internet and related digital

technologies to achieve marketing objectives and support the modern marketing concept.

These technologies include the internet media and other digital media such as wireless mobile

media, cable and satellite.

In practice, internet marketing will include the use of a company web site in

conjunction with online promotional techniques such as search defines , banner advertising ,

direct e- mail and links or services from other web sites to acquire new customers and provideservices.



3/61


What business benefits can the Internet provide?

1. Market penetration:- The internet can be used to sell more existing products into

existing markets. This can be achieved by using the power of the internet for

advertising products to increase awareness of products and the profile of a companyamongst potential customers in an existing market.

2. Market development:- Here the internet is used to sell into new markets, taking

advantage of the low cost of advertising internationally without the necessity for a

supporting sales infrastructure in the customers country.

3. Product development: - New products are developed which can be delivered by the

internet. These would typically be information products such as market reports which

can be purchased using electronic commerce.

4. Diversification:-In this sector, new products are developed which are sold into new

markets.

The internet can be applied by companies as an integral part of the modern marketing concept

since:

It can be used to support the full range of organizational functions and processes that

deliver products and service to customers and other key stakeholders.

As a communications medium it can act as a corporate glue that can integrate the

different functional parts of the organization

It facilitates information management which is now increasingly recognized as a

critical marketing support tool.

The future role of the internet should form part of the vision of a company since its

future impact will be significant to most businesses.



4/61


How does internet marketing differ from traditional marketing?

The main differences that should be noted are:

The customer initiates contact

The customer is seeking information

High intensity medium

Can gather and store response of individual

Individual needs can be addressed and taken into account in future dialogues.

Elements of an internet strategy:

1. Establish objectives: - Establish what the requirements are the customers,

company and third parties. Consider what the criteria for success will be, and

how they are measured. Benchmark competitors.

2. Define scope: - Which of the marketing functions will be prioritized for

action?

3. Define brandingstrategy:- How will the web site be used to support the

existing

site, or will a new brand be adopted to differentiate and promote the site?

4. Promotion strategy: - What combination of online and offline promotion

techniques will be used?

5. Establish timescales and resources: - Who will be responsible for

different aspects of the implementation such as content development, promotion

and maintenance?

What are the timescales for implementing different parts of the strategy?



5/61


6. Legal issues: - Legal constraints on entering new markets must be acknowledged.

7. Implementation constraints: - The effect of the physical setting and performance

of the web server and its software on the customer experience must be considered

as part of strategy.

8. Achieving management commitment and funding: - The proportion of

marketing budgets separation web sites is limited. We will ask how much should

be spent on strategy, content development, promotion and maintenance.

INTEGRATING THE INTERNET STRATEGY INTO THE MARKETING PROCESS

One of the key decisions in developing an internet marketing strategy is deciding which

marketing functions can be assisted by the internet. There is a tendency amongst companies

first using the internet to restrict applications to promotion and selling.

PROMOTION ACTIVITIES:

Promotion is the element of the marketing mix which is concerned with

communicating the existence of products or services to a target market. Burnett (1993)

defines it as:

The marketing function concerned with persuasively communicating to target audiences the

components of the marketing program in order to facilitate exchange.

The four elements of the promotion or communications mix are:

1. Advertising

2. Sales promotion

3. Direct marketing

4. Public Relations



6/61


1. ADVERTISING:-

Since the internet is a new medium, marketing staff are still undergoing a learning

curve in terms of exploiting its full potential and integrating it with their offline promotional

activities. Essentially, users have the choice of to options for advertising on the web. The first

is to set up a web site and through this communicate key messages, images and buying

information to the web site visitor. Such sites can incorporate interactive activity and sounds.

The second option is to use banner ads which can increase brand recognition and

communicate / reinforce brand values as well as providing a link to the web site.

2. SALES PROMOTION:-

The Internet provides marketers with an excellent channel through which to

communicate sales promotions.

3. DIRECT MARKETING:-

Direct marketing is currently one of the fastest growing fields of marketing. The

techniques it utilizes can be spread across all the elements of the promotional mix. Direct

marketing on the internet offers significant potential for customization of products and

services and personalizing a message. The utilization of databases and the interactivity of the

internet enable organizations to engage on one to one dialogue.

4. PUBLIC RELATIONS:-

Public Relations activity on the web offers organizations scope for corporate

communications, sponsorship, publicity and a direct vehicle for communicating press

releases. The Internet provides scope for two way interaction, clear targeting of key opinion

formers and journalists and the potential for communicating strong corporate brand messages.

Several PR agencies are investigating the potential for organizations to further exploit the

potential for electronic Public Relations.



7/61


HISTORY OF INTERNET MARKETING

Internet marketing first began in the early 1990s as simple, text-based websites that

offered product information. Over time Internet marketing evolved into more than just selling

information products. There are people now selling advertising space, software programs,

business models, and many other products and services. Companies like Google, Yahoo, and

MSN have leveled the playing field of internet advertising. By offering local advertising to

small to medium sized businesses, ROI has grown while the bottom line has been lowered.

This type of marketing is the backbone of modern capitalism, allowing anyone with an idea,

product or service to reach the widest audience possible.

The next evolutionary step would be to refine the consumer search to those consumers

specifically searching for your product or service, and entice them with catchy tag lines and

promotions. Once the consumer has chosen your company, and entered your e-store, the

design of your website will determine the online to offline or e-commerce conversion rates.

These are what business owners covet, the lowest cost per lead.

To clarify, while internet marketing can cover any facet of online marketing as described

above, current use of the term internet marketing commonly refers to the use of direct

response marketing strategies, that were traditionally used in direct mail, radio, and TV

infomercials, applied to the internet business space.

These methods have been found to be particularly useful on the internet due to its tracking

capabilities coupled with the ability to instantly reach the prospect, whether it be B2B or

Business to consumer. This ability for careful analysis has become quite common now, which

is why you will commonly see terms such as ROI, conversion rate, and sales letter commonly

come up when discussing internet marketing.



8/61


HOW DOES INTERNET WORK?

The Internet enables communication between millions of connected computers world-

wide. Information is transmitted from client PCs whose users request services to server

computers that hold information and host business applications that deliver the services in

response to requests. As such, the Internet is a large-scale client/server system. By end 2000,

Nun compilations estimated that worldwide, there were over 450 million users of clients

accessing over 30 million web sites hosted on servers The client PCs within homes and

businesses are connected to the Internet via local Internet Service Providers (ISPs) who, in

turn, are linked to larger ISPs with connection to the major national and international

infrastructure or backbones.

ELECTRONIC COMMERCE:-

Electronic commerce has become the standard term recognized for business

transactions conducted on the internet. It is a term that encompasses a range of business

activities such as selling online, online bill payments, home shopping /banking and improving

efficiency in dealings with suppliers and clients (Hoffman and Novak, 1996).

Electronic commerce has implications for existing channels of distribution regarding the

logistics involved in delivery of products and services, how products and services are ordered,

taxed and paid for. For consumer, a significant benefit of online shopping is that it provides

access to a global marketplace of online shopping sites.

SERVICES MARKETING:-

The internet provides both a communication and distribution channel for the provision

of faster and more effective service delivery. Access to organization resources and

information, the interactive nature of the internet and the linkage of internet technology to



9/61


other information technology hardware provide a wide range of opportunities for marketers to

improve the service delivery process.

Online marketing can serve several purposes:

Actual sales of productse.g., Amazon.com

Promotion/advertising: Customers can be quite effectively targeted in many

situations because of the context that they, themselves, have sought out. For example,

when a consumer searches for a specific term in a search engine, a banner or link to

a firm selling products in that area can be displayed. Print and television

advertisements can also feature the firms web address, thus inexpensively drawing in

those who would like additional information.

Customer service: The site may contain information for those who no longer have

their manuals handy and, for electronic products, provide updated drivers and software

patches.

Market research: Data can be collected relatively inexpensively on the Net.

However, the response rates are likely to be very unrepresentative and recent research

shows that it is very difficult to get consumers to read instructions. This is one of the

reasons why the quality of data collected online is often suspect.



10/61


ADVANTAGES OF INTERNET MARKETING OR ONLINE SHOPPING

We offer endless number of choices and options to consumers which make online

shopping attractive. They are:-

Online shopping provides a wider choice as consumers, in general, enjoy having

choices before they decide whether to buy a product.

Internet marketing leads to quick comparison as consumers can quickly compare

products in terms of price, quality and shipping terms before making a final choice.

Online shopping provides vast selection as the products can be displayed, reviewed

and compared at no cost in terms of time or funds. It makes much more efficient than

having to visit store after store.

It provides sheer convenience to its customer as they can place an order by a more

click of the mouse.

It saves time and energy of consumer as they can place an order by a mere click of the

mouse.

It saves time and energy of consumer as online shopping is comparatively strain-free.

Internet marketing provides an integrated source of information on products and

services.



11/61


It provides unique gifting opportunity.

Internet marketing keeps data on its customers.

It is a form of mass personalization.

It can be called micro-targeting.

DISADVANTAGES OF INTERNET MARKETING

Internet marketing has also certain drawbacks as certain buying decisions require

information that can best be found in traditional brick-and-mortar stores. For example when

buying certain personal items like perfume or clothing, the consumer needs to see, feel smellor test. These kinds of products continue to be bought at a traditional store. There are some

other items which do not sell well on web because of delivery problems. For example, large

items like plumbing materials, fencing or furniture are best sold in local stores.

Some people have suggested that the Internet may be a less expensive way to distribute

products than traditional brick-and-mortar stores. However, in most cases, selling online

will probably be more costly than selling in traditional stores due to the high costs of

processing orders and direct shipping to the customer. Some products may, however, be

economically marketed online. Some factors that are relevant in assessing the potential for e-

commerce to be an effective way to sell a specific product are:

Value-to-bulk ratio:

Products that have a lot of value squeezed into a small volume (e.g., high end jewelry

and certain electronic products) are often more cost-effective to ship to end-customers than

are bulkier products with less value (e.g., low end furniture).



12/61


Absolute margins:

Some products may have a rather high percentage margine.g., a scarf bought at

wholesale at $10 and marked up 100% to be sold at $20. However, the absolute margin is

only $20-$10=$10. In contrast, a laptop computer may be bought at $1,000 and be marked up

by only 15%, or $150, for a total price of $1,150. Here, however, the absolute margin will be

larger--$150. This allows the merchant to spend money on processing, packaging, and

shipping the order. Ten dollars, in contrast, can only cover a small amount of employee time

and very limited packaging and shipping. Some online merchants do chargefor shipping, but

doing so will ultimately make the online merchant less competitive.

Extent of customization needed:

Some products need to be customizede.g., checks have to be personalized and

airline tickets have to be issued for a specific departure site, destination time, and travel time.

Here, online processing may be useful because the customer can do much of the work.

Willingness of customers to pay for convenience: Some consumers may be willing to pay for

the convenience of having products delivered to their door. For example, delivering high

bulk, generally low value groceries is generally not efficient. However, for some customers,

it may be worthwhile to pay to avoid an inconvenient trip to the grocery store.

Geographic dispersal of customers:

Electronic commerce, when value-to-bulk ratios and absolute margins are not

favorable, is often not viable when customers are located conveniently close to a retail outlet.

However, for some productse.g., bee keeping equipmentcustomers are widely

geographically dispersed and thus, a centralized distribution center may be more

economically viable. Specialty bookse.g., for collectors of vintage automobilesmay not

be worthwhile for bookstores to stock, and these may thus be economically sold online.

Vulnerability of inventory to loss of value:



13/61


Some productsespecially high tech productshave a very high effective carrying

costs. It has been estimated that because of the rapid technological progress made in the

computer field, computer parts may lose as much as 1.5% of their value per week. If shipping

directly to the customer can reduce the channel time by five weeks, this potentially rescues

as much as 7.5% of the product value. In such a situation, then, trying to reach the customer

directly may make sense, even if the direct costs of distribution are higher, because of the

inventory value issue.

There are several reasons for which a person goes to Internet like:-

Establish Presence: - Many companies provide basic information like general

company information, history, its location and its shopping hours to its customers

through which they establish a presence in the market. The overall goal is to tell their

customers why they should do business with them.

To Sell Goods/Services:- Internet marketing helps in selling goods via web: but

before the transaction takes place, the customer should be provided full information

about the business with which he has to deal.

Heighten Public Awareness:- Any potential customer who accesses a certain

companys website is able to know about the company and the offers which it

provides, in no time.

Serve Customer:- In marketing, one of the first things to do is to make customers

aware that you are available to serve them.

Share Time-Sensitive Information:- Internet saves a great deal of time. When you

want to know about a certain interview or about a particular piece of news, it provides

the information in no time. No one can provide this information faster than internet.



14/61


Reach the youth market: - The under 25 group is fast becoming a formidable

segment of the web markets.

Serve the local market: - Through the use of web, a customer is able to know about

different shops, theatres and the like in the locality.

Answer to the queries: - Everyday, various companies spend a lot of time in giving

answers to the queries sent by customer.

Market at the international level: - Due to the help of web page, a company can

reach international customers just as easily and quickly as it can reach the customer

next door.

E-security: - E-security is the protection of computer-based resources against

alternation, destruction or unauthorized use. It refers to the protection of hardware,

software, data, procedure and people resources against alternation, destruction or

unauthorized use with the help of communication networks and microcomputer-based

process.

There are a number of economic realities of online competition:

As discussed, costs of handling online orders is often higher than that of distributing

through traditional stores.

Even if online selling is more cost effective in some situations, a firm selling online

will, in the long run, be competing with other online merchantsnot just against

traditional brick-and-mortar stores. By the forces of supply and demand, online

prices will then be driven down so that the profit from selling online will be no greater

than that from traditional retailing. Any reduced costs would then be expected to go to

customers.

Competition will be greater for products that have large markets than for those where

markets are smaller and more specialized. Amazon.com, for example, has found it

necessary to discount best selling books deeply. Higher pricescloser to the list price



15/61


can be charged for specialty books, but for a large part of the market, competition

will be intense.

A new online merchant will face competition from established traditional merchants.

These will often have the cash reserves to stay in business for a long time even withtemporary competition. The online merchant, if it has no cash reserves other than

stockholders investment, may run out of cash before it can become profitable.

CHAPTER 2

METHODOLOGY

NEED FOR THE STUDY:-

The study is undertaken to find out the effectiveness of internet marketing in India.

The research carried out helps in identifying key area of attraction, by taking into

consideration the already available services and other service to be added by the companies

which market through internet.



16/61


This study would help the internet marketing companies to identify the flows and loopholes in

the market. It would also specify which area need more focus and those that require

adjustments.

Further the study will contribute ideal information that will enable internet marketers to set

strategic plans to attract new customers and retain their exciting customers.

In addition the companies can easily identify their target group and plan value added packages

that would attract customer. It would contribute to the maximization of profit by increasing

sales to the target group.

Economic and social preference of the customers can also be determined to help focus on

what kind of additional packages the companies should offer, to help meet the expectations of

customers and satisfy their needs.

OBJECTIVE OF THE STUDY:-

To assess the effectiveness of internet marketing on purchasing behavior.

To study in depth the scope of internet marketing in future.

To identify the product frequently purchased through internet.

To study and find out the opinion of customers about internet marketing.

To assess the different ways in which internet marketing can be improved.



17/61


SCOPE OF THE STUDY:-

The study was conducted in the parts of Bangalore city only.

This study helps in analyzing areas of weaknesses and strengths of internet

marketing. This study helps to determine the level in which the companies stand and whatstrategic measures they can take to be effective and competent in making sales through

internet.

The suggestions outline can be used by the companies who market through

internet, to improve and add other services. To modify and set reasonable prices, to adopt

other value added services and to increase the satisfaction level of the customers

The finding would also help the companies to identify key areas that need

improvement and identify target groups and meet their needs to maximize sales.

LIMITATIONS OF THE STUDY:-

The study is limited to particular city, Bangalore.

The research is based on only higher lower, higher upper and middle class society in

Bangalore.

The sample size is restricted to 100 respondents only.

The research is limited to business to customer internetdomain.

1. RESEARCH DESIGN

Introduction:-

A research design is purely and simply the framework of plan for a study

that guides the collection and analysis of data. There are three types of research design.

i) Exploration

ii) Description

iii) Casual



18/61


Descriptive research design

It is used when the purpose of research is covered under one or more of the following

points:-

To describe the characteristics of certain groups.

To estimate the proportion of people in a specified population who behave in a

particular way.

To make specific predictions.

To determine whether certain variables are associated

In this research the researcher has used descriptive design.

2. TYPE OF DATA:

Primary Data

Secondary Data

Primary Data: - may pertain to demographic and socio-economic characteristics of the

consumers, attitudes and opinions of people their awareness and knowledge and other similar

aspects.

Basic means of obtaining primary data:-

Communication and observation. It involves the questionnaire of respondents tosecure the desired information using a data collection instrument called questionnaire.

Questionnaire may be asked verbally or written and response maybe obtained in either

form.

An observation means that the situation of interest is checked and the relevant facts,

actions or behavior recorded.

Secondary Data: - include those data which are collected for some earlier research work andare applicable in the study the researcher has undertaken.



19/61


Type of Secondary Data

1. Internal

2. External

External secondary data are generated and collected from variety of events and source outside

the firms premises.

In this study the researcher has used the primary data collection from respondents using the

instrument called questionnaire. Secondary data from book and websites.

3. SAMPLING UNIT

The researcher has to decide whether the data is to obtained from every unit of the

population under study or only a representative portion of the population.

In this research the sample units are residents in Bangalore city.

4. SAMPLE TECHNIQUE

There are two main categories:

1. Probability

2. Non- Probability

Non-Probability:-The three more frequently used non-probability designs are judgment,

convenience and quota sampling.

.

a) Convenience sampling: - Sample unit are chosen primarily on the basis of the

convenience to the investigator.

The researcher in this study has used convenience sampling technique under non-probability

sampling.

5. GRAPHICAL REPRESENTATION

Bar-Diagram

Pie-chart



20/61


The above two methods of graphical representation are used in this research.

6. INSTRUMENT USED

A questionnaire was used to collect the data.

7. INSTRUMENT DESIGN

Structured-undisguised questionnaire was used to collect data. In this questionnaire the

response as well as the questions is standardized. The purpose of the question is clear

and thus undisguised.

Type of questions used

1. Open-ended:- refers to a question that has no fixed alternative to which the answer must

conform. The respondents answer his/her own words and at nay length he/she chooses.

2. Close-ended:- They refer to those questions in which the respondent is given a limited

/number of alternative responses from which he/she is to select the one those most closed

matches his/her opinion or attitude.

The researcher has used both close ended and open ended questions.

8. SAMPLE SIZE

The researcher selected sample size of 100 respondents.

CHAPTER- 3

INDUSTRIAL PROFILE

E-commerce application began in the early 1970s with such innovations as electronic

transfer of funds. However, the applications were limited to large corporations and a few

daring small businesses. Then came Electronic Data Interchange (EDI), which added other

kinds of transaction processing and extended participation to all industries. Since the

commercialization of the internet and the introduction of the web in the early 1990s, e-

commerce applications have rapidly expanded.



21/61


The field of e-commerce is broad. There are many applications of e-commerce, such as home

banking, shopping in electronic malls, buying stocks, finding a job, conducting an auction,

collaborating electronically with business partners around the globe, and providing customer

service. The implementation of various e- commerce applications depends on four major

support categories, such as people, public policy, marketing /advertising and supply chain

logistics. In addition, there is infrastructure supports. The c-commerce management within

each organization coordinates the applications and infrastructure.

ELECTRONIC COMMERCE APPLICATIONS

Direct Marketing

Stocks Jobs

Online Banking

Procurement and purchasing

Malls

Procurement

Auctions

Travel

Online publishing

Customer Services

Intra-business Transactions

E-government

C2C

E-learning

Electronic commerce describes the buying, selling, and exchanging of products,

services, and information via computer networks, primarily the Internet. Some people view

the term commerce as describing transaction conducted between business partners. To them,

the term electronic commerce seems fairly narrow, so many use the term e-business instead. it

refers to a broad definition of e-commerce , not just buying and selling, but also servicing

customers, collaboration. According to Lou Gerstner, IBMs former CEO, e-business is all

about time, cycle, sped, globalization, enhanced productivity, reaching new customers, and

sharing knowledge across institutions for competitive advantage.



22/61


E-commerce refers generally to all forms of commercial transactions involving both

organizations and individuals, which are based on electronic processing and transmission of

data, including text, sound and visual images. There is a wide opportunity of transactions

though the medium of electronic commerce.

Electronic commerce has accelerated the growth of trade across the globe. In a

nutshell, E-commerce can be defined as any form of business transaction in which the

parties interact electronically rather than by physical exchange of documents of direct

meetings amongst officials. E-commerce is simply doing business online.

The coverage of e-commerce is tremendously flexible. Anyone with a business or an

idea to build up a new business can set up his business through the use of e-commerce and

can become the next armchair millionaire. Doing business on internet is quite cheap. Setting

up a company website costs much less than it would to print brochures or hire a huge staff.

The cost of the website is so minimal that companies dont mind keeping it, running even if

they are not doing the business they expected.

DRIVERS OF E-COMMERCE

There are certain drivers of e-commerce which help in growth and survivals. The

following are the main heads which support e-commerce survivals.

Digital convergence: - The digital revolution has made it possible for digital devices

to communicate with one another. There is a massive growth of networking which

has made it possible to navigate on internet.



23/61


Anyone Anywhere. Anytime: - E-commerce is made available to anyone, anywhere

and anytime, 24-hours a day and seven days a week.

Increasing pressure on operating costs and profit margins: - Global competitionand the proliferation of products and services worldwide have added unusual

pressure on operating costs and profit margins. E-commerce addresses these concerns

quickly and efficiently at lower costs.

Change in Organization: - Today, the trend is toward partnering owners and

managers across departments to develop a chain of relationship that adds value to the

enterprise.

Demand for customized products and services:- Today, the customer have become

more choosy and demand higher quality and better performance, including a

customized way of producing , delivering and paying for goods and services.

Goals of electronic commerce: - E-commerce can be said as a modern form of

business activity which addresses the needs of the organization, merchants and

consumers to cut costs while improving the quality of goods and service. It also

assures a speedy delivery of service. It is a form of business activity which is

engaged in buying and selling of information, products and services via computer

network. The broad goals e-commerce are

A. Related cost

B. Improved service quality

C. Faster customer response

D. Lower product cycle time

INTEGRATING E-COMMERCE

The e-commerce falls under any of the following category:-

1. Business to Consumer: - The focus of this kind of e-commerce is on the consumers.

Under this category, e-commerce is divided various heads like e-tailing which means

gathering of catalogs on the web where a consumer can log in and buy an item. Thencomes e-brooking wherein people can use the cards to buy sell shares on the BSE.



24/61


Many institutions and universities provide e-learning facilities. Fro example, Chennai-

based Anna University offers online post-graduate courses in engineering for

practicing engineers and teachers in technical college.

2. Business-to-Business: - Business-to-Business e-commerce is industrial marketing.

Among the processes it handles are fulfillment and procurement. As soon as online

purchase deal is entered into and payment is approved through a credit card clearance

procedure, a message is generally displayed saying, thank you for yours order.

3. Business-to-Employee: - Business-to-Employee e-commerce identifies the set of

applications available to the employee of an enterprise, such as HR, purchase and

travel. These applications are made available on the web, so that the employee can

access them from anywhere.

4. Business-to-Government: - Business-to-government refers to business with the

government via the web. E-commerce has emerged as even government has started

looking at moving procurement online. Today, even local schools are buying supplies

online. The government market is similar to B2B. E-procurement is the latest stage

where government agencies announce request for proposals on their web sites for

suppliers to bid on each proposal by e-mail or through the web-site.

CHAPTER- 4

ANALYSIS AND INTERPRETATION

TABLE-4.1: showingAge Categories

Serial No. Age No. of Respondents Percentage

%

1 15 to 20 8 8



25/61


2 21 to 30 75 75

3 31 to 40 14 14

4 More than 40 3 3

5 TOTAL 100 100

CHART-4.1: showing age categories of respondents

INTERPRETATION:

75% of the respondents are at the age group of 21 to 30.

The maximum number of respondents is at the age group of 21 to 30, means

maximum are youth.

8% are below age group of 20.

3% are above 40.


Percentage

8

75

143

15 to20

21 to 30

31 to 40

above40


26/61


14% are of middle age respondents.

ANALYSIS:

From the above table it is shown that the major respondents are of the age group

between 21 to 30

TABLE-4.2: showingGender percentage of respondents

Serial No. Gender No.of Respondents Percentage

1 Male 84 84

2 Female 16 16

3 TOTAL 100 100

CHART-4.2: showingGender percentage of respondents



27/61


Percentage

84

16

Male

Female

INTERPRETATION:

84 % of the respondents are male.

16 % of the respondents are female.

ANALYSIS:

Maximum respondents are male. Male more surf the net than female.

TABLE-4.3: showing occupation of respondents



28/61


Serial

No.

Occupation No. of

Respondents

Percentage

1 Employees 28 28

2 Student 72 72

3 TOTAL 100 100

CHART-4.3:showingoccupation of respondents

Percentage

28

72

EmployesStudent

INTERPRETATION:

72 % of the respondents are the Students.

28 % of the respondents are the Employees.

ANALYSIS:

The maximum respondents are students which use the net for many purposes like,

mail checking, Information gathering, Shopping etc.

TABLE-4.4: showing respondents who have own computer



29/61


Serial No. Computer No. of Respondents Percentage

1 Yes 80 80

2 No 20 20

3 TOTAL 100 100

CHART- 4.4: showing respondents who have own computer

INTERPRETATION:

80% of the respondents has own computer.

20% of the respondents doesnt have own computer.

ANALYSIS:

Maximum respondents has own computer, because computer is common now a day.


Percentage

20

80

NO

YES


30/61


TABLE-4.5: showing respondents who surf the net

Serial No. Browse the net. No. of Respondents Percentage

1 Yes 100 100

2 No 0 0

3 TOTAL 100 100

CHART-4.5: showing respondents who surf the net

No. of Respondents

100

0

Yes

No

INTERPRETATION:

100% of the respondent surf the net. There are many purpose of using the net like

Railway reservation, Airline Ticket booking, Job searching, study material, mail

checking etc.

ANALYSIS:

Cent percent respondents surf the net as the information is gathered from the

respondents staying in Bangalore.



31/61


TABLE-4.6: showing duration of time spent on browsing the net.

Serial No. Time No. of Respondents Percentage

1 1 Hour 12 12

2 1-2 Hours 61 61

3 2-4 Hours 16 16

4 4-6 Hours 11 11

5 TOTAL 100 100

CHART -4.6: showing duration of time spent on browsing the net.


Percentage

11

12

1661

1 Hour

1-2 Hours

2-4 Hours

4-6 Hours


32/61


INTERPRETATION:

61 % of the respondents are using the net for 1-2 hours

16 % of the respondents using the net for 2-4 hours

11% of the respondents using the for 4-6 hours

ANALYSIS:

Maximum no. of the respondents uses the net more than 1 hour. Because internet is

very necessary for office work and also for students to downloading examination form, Case

study etc. Now a days maximum person likes online shopping.

\

TABLE-4.7: showing the purpose of browsing the net.

Serial No. Purpose of Browsing No. of Respondents Percentage

1 Checking mail 42 42

2 Gathering information 25 25

3 Entertainment 18 18

4 Shopping 14 14

5 Other 1 1

6 TOTAL 100 100



33/61


CHART-4.7: showing the purpose of browsing the net.

Percentage

42

25

18

14 1

Checking mail

Gathering information

Entertainment

Shopping

Other

INTERPRETATION:

42% respondents use the net for the purpose of checking mail.

14 % respondents use the net for shopping purpose. Very fast increasing the online

shopping.

18% respondents use net for entertainment purpose.

25% respondents use net for gathering information.

ANALYSIS:

Major number of respondents uses the net for checking of mails and gathering

information.



34/61


TABLE-4.8: showing influential impact on purchasing.

Serial No. Influence to buy No. of Respondents Percentage

1 Advertisement 38 38

2 Friends 17 17

3 Different offers 30 30

4 Less Price 15 15

5 Other 0 0

6 TOTAL 100 100

CHART-4.8: showing influential impact on purchasing


Percentage

38

17

30

15 0

Advertisement

Friends

Different offer

Less Price

Other


35/61


INTERPRETATION:

38% respondents influence by Advertisement.

17% respondents influence by friends.

30% respondents influence by different offer.

15% respondents influence by less price.

ANALYSIS:

Maximum number of respondents influence by Advertisement to shopping the product

through internets. And giving different offer also influence the consumer to buy the product

or services through online.

TABLE-4.9: showing convenient website for online shopping.

Serial No. Convenient for shopping No. of Respondents Percentage

1 Yahoo.com 39 39

2 Freemarket.com 29 29

3 Other 32 32

4 TOTAL 100 100



36/61


CHART-4.9: showing convenient website for online shopping.

Percentage

39

29

32Yahoo.com

Freemarket.com

Other

INTERPRETATION:

For 39% convenient website for online shopping is yahoo.com

For 29% convenient website for online shopping is freemarket.com

For 32% convenient website for online shopping is others.

ANALYSIS:

Maximum numbers of respondents feel more convenient website is www.yahoo.com

for online shopping after that free market.com which comes under other.



37/61


TABLE-4.10: showing respondents who found purchasing online cost effective.

Serial No. Cost effective No. of Respondents Percentage

1 Yes 38 38

2 No 62 62

3 TOTAL 100 100

CHART-4.10: showing respondents who found purchasing online cost effective.


Percentage

62

38

NO

YES


38/61


INTERPRETATION:

38 % respondents agree on, internet marketing is cost effective. Because piece of the

product and service less than Physical market. The customer also saves the time and

money

62% respondents not agree on, internet market is cost effective.

ANALYSIS:

Either the people are using online purchasing major respondents found that its cost

effective.

TABLE-4.11: showing delivery of products on time.

Serial No. Delivery on the Time No. of Respondents Percentage

1 Yes 60 60

2 No 37 37

3 No Response 3 3

4 TOTAL 100 100



39/61


CHART-4.11: showing delivery of products on time.

INTERPRETATION:

62 % respondents are saying, they deliver the products on time. Means maximum

respondents are satisfied from the delivery of the product.

37% respondents are saying, they do not deliver the product in time.

ANALYSIS:

Major respondents are Satisfied with the deliver of the products in time.


Percentage

60

37

3

Yes

No

No Response


40/61


TABLE-4.12: showing respondents complaints handling on time.

Serial No. Response to complaints No. of Respondents Percentage

1 Yes 54 54

2 No 45 45

3 No Response 1 1

4 TOTAL 100 100

CHART-4.12: showing respondents complaints handling on time


Percentage

54

45

1

Yes

No

No Response


41/61


INTERPRETATION:

54 % respondents found that complaints of customer handled on time.

45% respondents found that complaints of customer are not handled on time.

1% respondents has given no response.

ANALYSIS:

The complaints placed by the customers were handled in time was satisfied by more

than 50% respondents.

TABLE-4.13: showing respondents satisfied from online marketing

Serial No. Opinion of availability No. of Respondents Percentage

1 Yes 62 62

2 No 38 38

3 TOTAL 100 100



42/61


CHART-4.13: showing respondents satisfied from online marketing

INTERPRETATION:

62 % of the respondents found that, they satisfied from the online marketing.

Because of more availability of product choice and providing the product on less

price.

38 % of the respondents found that they are not satisfied from the online marketing

because of delay in delivery.

ANALYSIS:

Less 40% respondents were not satisfied with online marketing.


Percentage

62

38

Yes

No


43/61


TABLE-4.14: showing price opinion of products and services

Serial No. Opinion about price No. of Respondents Percentage

1 Expensive 14 14

2 Affordable Price 55 55

3 Fair 20 20

4 Low 11 11

5 TOTAL 100 100

CHART-4.14: showing price opinion of products and services


Percentage

14

55

20

11

Expensive

Affordable Price

Fair

Low


44/61


INTERPRETATION:

55% of the respondents found that the price of the products or services through

online marketing is affordable price. Affordable price is also one reason for attracting

the customers for online shopping.

20% of the respondents found that the price of product or service through online

marketing is fair.

14% of the respondents found that the price of the product or service through online

marketing is expensive.

11% of the respondents found that the price of the product or service through online

marketing is low.

ANALYSIS:

More than 50% of the respondents found that the price of the products or services

through online marketing is affordable.

TABLE-4.15: showing impressive market strategies.

Serial No. Impressed by online Marketing No. of Respondents Percentage

1 Yes 76 76

2 No 24 24

3 TOTAL 100 100



45/61


CHART-4.15: showing impressive market strategies

INTERPRETATION:

76% of the respondents found they are impressed from online marketing.

24% of the respondents are not impressed from online marketing.

ANALYSIS:

Maximum number of respondents found, they are very impressed from online

marketing. Because of internet, we can easily purchase the product of other countries. We can

take the ticket of airlines and railways very easily. We can also give the examination.


Percentage

76

24

Yes

No


46/61


TABLE-4.16: showing why respondents are impressed.

Serial No. Impress by No. of Respondents Percentage

1 Customization 24 24

2 Affordable Price 38 38

3 Creative ad 20 20

4 Making Fast Delivery 13 13

5 No Response 5 5

6 TOTAL 100 100

CHART-4.16: showing why respondents are impressed.


Percentage

24

38

20

135

Customization

Affordable PriceCreative ad

Making Fast Delivery

No Response


47/61


INTERPRETATION:

38% of the respondents are impressed by affordable price.

24% of the respondents are impressed by customization.

20% of the respondents are impressed by creative ad.

13% of the respondents are impressed by marketing fast delivery.

5% of the respondents are impressed by no response.

ANALYSIS:

Maximum number of respondents (38%) impressed by affordable price. The price of

product or service is very less than traditional market.

TABLE-4.17: showing future decision of customer.

Serial

No.

Making purchase online No. of

Respondents

Percentag

e

1 Yes 58 58

2 No 42 42

3 TOTAL 100 100



48/61


CHART-4.17: showing future decision of customer

INTERPRETATION:

58 % of the respondents will purchase the product or services through online

marketing in future. Because of the scarcity of timer, easy to purchase, less price,

more choice of products etc.

42 % of the respondents will not purchase the product or services through online

marketing in future. Because of delivery not in time.

ANALYSIS:

Future growth is rapid for internet marketing as many pof the customers preferring the

online shopping because of time scarcity.


Percentage

YesNo

5842


49/61


TABLE-4.18: showing respondents loyalty.

Serial No. Loyal customers No. of Respondents Percentage

1 Give Discount coupons 38 38

2 Giving Preference to customer 29 29

3 sending appropriate gifts 21 21

4 Send additional material 12 12

5 TOTAL 100 100

CHART-4.18: showing respondents loyalty.


Percentage

38

29

21

12Give Discount coupons

Giving Preference toCustomer

Sends appropriate gifts

Send additional material


50/61


INTERPRETATION:

38% of the respondents loyal to the company those who give discount coupons.

29% of the respondents loyal to the company those who giving preference to

customers.

21% of the respondents loyal to the company those who send appropriate gifts.

12% of the respondents loyal to the company those who send additional material.

ANALYSIS:

Maximum respondents are loyal to the company those who give the discountscoupons. This is strategy of promotion of product and company also gets more margins on

products

TABLE-4.19: showing respondents attractiveness to website.

Serial No. Website attracts No. of Respondents Percentage

1 Easy Download 29 29

2 Colorful with music 20 20

3 Easy to understand 51 51

4 Other 0 0

5 TOTAL 100 100



51/61


CHART-4.19: showing respondents attractiveness to website.

Percentage

29

20

51

0

Easy Download

Colorful with music

Easy to understand

Other

INTERPRETATION:

51% of the respondents are attracted by easy to understand.

29% of the respondents are attracted by easy to download.

20% of the respondents are attracted by colorful with music.

ANALYSIS:

Online marketing give the more description or detail about products. The customer can

easily understand the feature and functionality of the products.



52/61


TABLE-4.20: showing consumer satisfaction level

Serial No. Satisfaction level No. of Respondents Percentage

1 High satisfied 18 18

2 Satisfied 79 79

3 Dissatisfied 3 3

4 TOTAL 100 100

CHART-4.20: showing consumer satisfaction level

Percentage

18

79

3

High satisfied

Satisfied

Dissatisfed



53/61


INTERPRETATION:

79% of the respondents satisfied from online marketing.

18% of the respondents highly satisfied from online marketing.

3% are dissatisfied.

ANALYSIS:

Maximum number of respondents were satisfied from online marketing.



54/61


CHAPTER -5

FINDINGS, CONCLUSION AND RECOMMENDATIONS

FINDINGS:

Frequent online customers are students and young professionals who tend to be more

affluent and better educated.

Young users use the internet for entertainment and socialization and elder for

investment and more serious matters.

The most frequent online consumer purchases(in terms of online buyers saying they

have purchased in the category ) have been clothing , watches, books, gold, Tickets,

software, furniture, electronic goods, and services. Majority of purchases being

electronic goods, softwares and air ticket.

The different offers, Creative advertisements and close friends influenced the

respondents to purchase or created a will to purchase online.

Companies that focus on making quick delivery, customization and setting affordable

prices were more preferred.

Customer were found loyal to companies that remember customer preferences, give

discounts, send appropriate gifts and sent interesting reading materials.

Websites that are found attractive are those that are easy to understand contain less

transactions and billing procedures and are colorful (contain sound).

The most convenient websites for online shopping are e-bay, yahoo.com e-mark.com,makemytrip.com, free market.com.



55/61


CONCLUSION:

The idea of a digital lifestyle has become more widely understood and experienced by

many people and continues to be experienced more pervasively throughout the 21st century.

The tremendous increase in the number of Internet users has made the industry to

grow more.

Companies face many questions in adopting e-marketing. This project research has

assessed the findings that will help answer three of them. Knowing how to design an

attractive web site, knowing how to advertise on the web, and knowing how to build sound

revenue and profit

This project research has also showed companies about the need to become skilled in

consumer relationship management, and area they have to concentrate on to build in depth

customer satisfaction especially with regards to their Indian customers.

This project research has assessed the effectiveness of internet marketing in

Bangalore. This study has provided useful information in tabular and graphical forms that will

help companies that market their product and services through internet to ascertain their

strengths, weaknesses, opportunities and threats.

Information regarding opinion of customers about what needs to be improved and

added in the future are also provided. Generally it presents a clear-cut picture for development

of internet marketing.

According to this research, internet marketing in terms of efficiency is currently

growing at a slow rate in India, but with 58% of the respondents willing to purchase online in

the near future, internet marketing is poised to reach higher heights.



56/61


RECOMMENDATIONS:

The companies that market their products or services through internet should

concentrate on designing suitable products that will fit the youth.

Advertising campaigns near colleges and private company areas will be appropriate to

reach the target audience. While choosing website to screen advertisements,

companies should go for major entertainment and socializing websites like

yahoo.com, hotmail.com, gmail.com, rediffmai.com.

Manufacturers of electronic goods and software should highly focus on marketing

their products through internet aggressively to reap more profits. Travel agencies

should also set up an R&D unit to outshine and be competent enough.

Banner advertisements on small boxes should contain humor, music and animations to

attract audiences. Different offers should also be given by getting into a joint venture

with online trading companies.

Customization is an opportunity worth investigating and should be adopted by

companies that produce products like laptop computers, apparels and beauty products.

Under price, under promise and over-delivery can create customer delight and thus

more investment should be made on infrastructures for shipping of goods.

Companies should remember customer preferences by creating customer database to

help deepen customer loyalty and help send out birthday or anniversary cards.

Discounts should be given based on customer prospects.

Websites that are attractive on first viewing and interesting enough to encourage

repeat visits must be designed by site design experts. Ease of use, good navigationschemes should be added to attract new customers and retain existing once.



57/61


A joint venture with online trading community like e-buy, freemarket.com,

mysimon.com, amazon.com must be adopted to help promote and sell products online.

Sponsorships, event management, public relations and charitable gifts can help build

brand image for internet marketers.

Customer retention by increasing customer services like call me buttons where

customer can click and his/his phone rings with a customer representative ready to

answer questions. Allowing products to be returned back to stores.

Companies can be smart online marketers and avoid channel conflicts by selling thefinal products in stores and the spare parts online. For clothing companies by offering

different size and colors not available in stores.

Sending out news letters. Special product or promotion offers based on purchasing

histories announcements of special events will help companies build in depth customer

satisfaction.



58/61


BIBLIOGRAPHY

1. Kotler Philip, Marketing Management, Twelth Edition, Page No. 5.

Published by Dorling Kindersley (India) Pvt. Ltd. New Delhi, India.

2. Turban, Rainer, Potter, Introduction to Information Technology, SecondEdition, Page no. 275-278. Published by John Wiley & Sons (ASIA) Pte Ltd, 2

Clementi Loop #02-01, Singapore 129809.

3. Marketing through E-commerce, Marketing Mastermind, Journal Page No. 51-

55, may2007,

4. Cooper Donald R, Schindler Pamela S, Business Research Methods, Ninth

Edition, Page No. 423. The Tata McGraw-Hill Publishing Company Limited.

New Delhi,

5. http://www.google.com



59/61


Customer Survey on Online Marketing

Name:-

Age: - ..

Occupation:-...

Gender: - Male Female

Marital status: - Single Married

1. Do you have a Computer?

Yes No

2. Do you browse the Net?

Yes No

3. In a week, how many hours do you spend on browsing?

4 Hours 4-8 hours

8-12 hours >12 hours4. For what kind of purpose do you browse the net?

checking mail Gathering information

Entertainment Shopping

Other.

5. What influenced you to buy the product or service online?



60/61


Advertisement Friends

Different offers less price

other.6. Mention companies name or a brand that you know which uses online

Marketing.

7. Which web site do you think is convenient for online shopping?

Yahoo.com Freemarket.com

Other

8. Did you find purchasing through Internet cost effective?

Yes No

9. Was the product delivered to you within the promised time?

Yes No

10. Whenever you had a complaint was it catered to on time?

Yes No

11. Are you satisfied with the option of product available online?

yes No

12. What is your opinion about the price of product or services?

Expensive Affordable

Fair Low

13. Are you impressed by the Online Marketing?

Yes No

14. If yes, what is it?

Customization Affordable price

Creative ad making fast delivery



61/61


15. In the coming days, will make any purchase online?

Yes No

16. If no, Why? If yes, Why & What?

...

17. You will be loyal customers to a company which.

Give discount coupons giving preference to customer

sends appropriate gifts Send additional material

18. What kind of website attracts you during online marketing?

Easy download Colorful with music

Easy to understand other

19. Please, mention your overall satisfaction level of purchasing online?

High satisfied Satisfied

Dissatisfied20. Give suggestion, How do you think internet marketing can be

Improved ?

Date post:	03-Apr-2018
Category:	Documents
Upload:	niveditah42404
View:	218 times
Download:	0 times

Consumer Behavior of Internet Marketing

Documents