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Internet Marketing

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1 1.0 Introduction E-marketing is the future of marketing. Because now-a-day that people going online and the uses of internet is increasing day by day. Bangladesh is not any exception to that picture. Here comes the need of online sector development. To satisfy the shopping need of this huge explosive population real online shopping sector need to play a very important role .In Bangladesh there are many online shopping site. 1.1 Origin of the report This report originated as an academic requirement of BBA Program of ASAUB. After completion of the program period a student must submit the report on the assigned topic to the Supervisor and to the department. I was assigned to project course on Bangladeshi consumer’s intentions about “online shopping” 1.2 Objective of the Report To know about the online shopping site company activities. To observe the working environment in online. To examine the whole online shopping sector in Bangladesh. To have exposure to functions of online shopping company of Bangladesh. To observe the various investment sources online company. To know the contribution of GDP towards Bangladesh economy. To explore the online shopping company profile. To know the proper utilization of resources those are available in our economy. To identify the main problems in online Sector of Bangladesh. To recommend some effective measures in improving the total system.
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1.0 Introduction E-marketing is the future of marketing. Because now-a-day that people going online and the uses of internet is increasing day by day. Bangladesh is not any exception to that picture. Here comes the need of online sector development. To satisfy the shopping need of this huge explosive population real online shopping sector need to play a very important role .In Bangladesh there are many online shopping site.

1.1 Origin of the reportThis report originated as an academic requirement of BBA Program of ASAUB. After completion of the program period a student must submit the report on the assigned topic to the Supervisor and to the department. I was assigned to project course on Bangladeshi consumer’s intentions about “online shopping”

1.2 Objective of the Report To know about the online shopping site company activities. To observe the working environment in online. To examine the whole online shopping sector in Bangladesh. To have exposure to functions of online shopping company of

Bangladesh. To observe the various investment sources online company. To know the contribution of GDP towards Bangladesh economy. To explore the online shopping company profile. To know the proper utilization of resources those are available in our

economy. To identify the main problems in online Sector of Bangladesh. To recommend some effective measures in improving the total

system. To state the major drawbacks and the way of improvement.

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1.3 Methodology of the study

Source of Primary Sources

Face to face discussion with the customers. Before sitting with them I have prepared a questionnaire

Direct Observation Other expert opinion

Secondary Sources Yearly publication of online news Relevant papers of financial statement Some related information from the Internet Other relevant books.

1.4 Limitation of the study

In spite of my best effort, this study is not free from the following limitations:

The time stipulated for the project. Relevant papers and documents were not available sufficiently The authority has some policy for not disclosing some secret

data and information which could be very much essential. I am also less experienced in this regard.

1.5 Rationale of the study

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Theoretical knowledge is not enough for a student. It is essential for a student to acquire practical knowledge. This report is prepared for showing the organization structure of online shopping in site. And overall online Sector of Bangladesh.

According to fulfill the requirement the researcher has chosen to work on ‘Bangladeshi consumer’s intentions about “online shopping”. Therefore, this studies report is the outcome of an academic need as well as practical knowledge and the outmost and enthusiastic intention of the researcher under the proper and in-depth guidance of a highly experienced dedicated guide.

2.0 Literature review

E-commerce has become a second name for the internet. Shopping, for most, has always been characterized by tired feet, crowded markets and desperate searches for a good parking spot.

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All these factors put together take all the enjoyment out of shopping. But with the advent of online shopping, buying and selling is no more a matter than a click of a button, that too from the comfort of your home.

That is the scenario for most countries of the world, including our neighbor, India. For Bangladesh, however, this is a realm that is yet to be explored fully.

A few Bangladeshi websites are available online which cater to this idea. The number, however, is shamefully small. According to Rakib Khan, CEO of Hut Bazar.com, a total of only 37 such online stores are present for Bangladeshis, out of which most have already been forced to discontinue owing to lack of customers.

The main aim of these websites, simply put, is to draw at the already weak heartstrings of nostalgic and homesick Bangladeshis living abroad by allowing them to send gift items to their near and dear ones in Bangladesh. Gift items include flowers, cakes, sweets, toys, etc. They even provide you with the option of choosing the specific date that you would like your gift to be delivered. Currently, these websites deliver only to major or specific cities in Bangladesh.

Since items are shipped from within Bangladesh, you can expect complete freshness of your delivered item, which obviously becomes mandatory when delivering food items and flowers.

These companies have links to major stores in Bangladesh and their delivery team purchases the goods from these stores and delivers them to the doorstep of your loved ones.

The business is a highly lucrative one, and profits start pouring in, becoming almost ten-fold within a very short time span.

The downside, however, is that these websites can only cater to customers residing outside Bangladesh. Due to the restrictions on international credit cards to use online, payment for these services becomes impossible for Bangladeshis in Bangladesh. Therefore, the Bangladeshi market cannot be tapped into at all. Few of those who are really interested have to request relatives living abroad to provide their credit card numbers if there's something that they really need to buy online. This turns out to be more of a pain than an advantage of any sort.

"Absence of payment gateways such as PayPal or E-Gold in Bangladesh reduces our customer market a great deal. This, combined with reduced internet usage by the majority of the Bangladeshi population, owing to lack of basic internet skills, further becomes a cause of concern," says Rakib Khan.

"The media should take a strong step and speak up for allowing the ease of payment gateways in Bangladesh. This would benefit both us as well as the customers," he adds.

Until this hurdle is lifted, these companies could think about accepting cash or cheques from the doorsteps of interested customers. That would also be a valuable service, wouldn't it? Moreover, they can also think of extending their delivery services to other parts of Bangladesh like small towns, villages, etc.

In fact, why only gifts? The big brand companies of Bangladesh should also make an effort towards online sale of their products. In doing so, they will certainly be remembered in the prayers of their loyal customers, besides multiplying their own profits. Since payment

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gateways are still not open, they could accept cash on delivery of the product. Another option could be to allow the use of local credit or debit cards within Bangladesh.

In the meanwhile, fellow Bangladeshi residents, cheer up! Maybe you can't purchase gifts online, but what you can do is buy and sell property and services online. Websites such as Clickbd.com, CellBazaar.com and the new KenaBecha.com.bd allow you to do just that.

With the help of these websites, you can sell any new or used article such as a mobile phone, or laptop at your stated price. You can also sell land, as well as offer services such as computer repair, beauty treatments, etc. All items are categorically classified, so users who are looking to buy can find their items of interest with ease. These websites simply act as a platform for users to sell and buy goods and services. The name and contact number of the seller is provided so that the buyer and seller can mutually decide the mode of payment and delivery themselves.

An interesting feature in the Clickbd.com website is the option for users to auction their items. However, the need to register and become a member in order to buy or sell becomes a bit of a bother for many.

I found Cellbazaar.com the user-friendliest. Its well-categorised options allow users to search by price range, location or brand name. Moreover, the availability of its mobile phone version makes for easy browsing anytime and anywhere.

Kenabecha.com has quite an appealing and colorful interface. Being still in its initial stages, it has a lot of categories, like "Toys and Baby Products" empty, which is understandable. However, what is not acceptable is the fact that after having set up hoardings of the website on the streets, it has been put on the web incomplete. A number of links within the website were found to be inactive, including links like "How to Buy and Sell". These little details should be carefully thought out and taken care of before putting up a website on the internet.

All in all, I shouldn't be complaining too much. Just the courage of the owners of these websites to have ventured into this new alley of online shopping and trade for Bangladesh deserves great admiration. We hope that they are able to take Bangladeshi e-commerce to a new level.

Sources: http://www.thedailystar.net/newDesign/news-details.php?nid=49361

3.0 Internet marketing

Internet marketing, also known as web marketing, online marketing, web advertising, or e-marketing, is referred to as the marketing (generally promotion) of products or services over the Internet. Marketing is used as an abbreviated form for Internet Marketing.

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Internet marketing is considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing.

Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, mobile advertising, and Web 2.0 strategies

3.1 Types of Internet marketingInternet marketing is broadly divided in to the following types:

Display advertising: the use of web banners or banner ads placed on a third-party website to drive traffic to a company's own website and increase product awareness.

Search engine marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques.

Search engine optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.

Social media marketing: the process of gaining traffic or attention through social media websites such as Facebook, Twitter and LinkedIn.

Email marketing: involves directly marketing a commercial message to a group of people using electronic mail.

Referral marketing: a method of promoting products or services to new customers through referrals, usually word of mouth.

Affiliate marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.

Inbound marketing: involves creating and freely sharing informative content as a means of converting prospects into customers and customers into repeat buyers.

3.2 Business modelsInternet marketing is associated with several business models:

E-commerce: a model whereby goods and services are sold directly to consumers (B2C), businesses (B2B), or from consumer to consumer (C2C) using computers connected to a network.

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Lead-based websites: a strategy whereby an organization generates value by acquiring sales leads from its website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads.

Affiliate Marketing: a process wherein a product or service developed by one entity is sold by other active sellers for a share of profits. The entity that owns the product may provide some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc.); however, the vast majority of affiliate marketing relationships come from e-commerce businesses that offer affiliate programs

Local Internet marketing: a strategy through which a small company utilizes the Internet to find and to nurture relationships that can be used for real-world advantages] Local Internet marketing uses tools such as social media marketing, local directory listing,[  and targeted online sales promotions.

3.2.1 One-to-one approachesIn a one-to-one approach, marketers target a user browsing the Internet alone and so that the marketers' messages reach the user personally. This approach is used in search marketing, for which the advertisements are based on search engine keywords entered by the users. This approach usually works under the pay per click (PPC) method.

3.2.2 Appeal to specific interestsWhen appealing to specific interests, marketers place an emphasis on appealing to a specific behavior or interest, rather than reaching out to a broadly defined demographic. These marketers typically segment their markets according to age group, gender, geography, and other general factors.

3.2.3 Niche marketingNiche and hyper-niche internet marketing put further emphasis on creating destinations for web users and consumers on specific topics and products. Niche marketers differ from traditional Internet marketers as they have more specialized topic knowledge. For example, whereas in traditional Internet marketing a website would be created and promoted on a high-level topic such as kitchen appliances, niche marketing would focus on more specific topics such as 4-slice toasters.

Niche marketing provides end users of such sites much targeted information, and allows the creators to establish themselves as authorities on the topic or product.

3.2.4 Geo-targetingIn Internet marketing, geo targeting and geo marketing are the methods of determining the geo-location of a website visitor with geo-location software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria

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4.0 Advantages and limitations of Internet marketing4.1 AdvantagesInternet marketing is inexpensive when examining the ratio of cost to the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and to purchase products and services conveniently. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.

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Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an Internet marketing campaign can be traced, measured, and tested, in many cases through the use of an ad server. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, to visit a website, and to perform a targeted action.

4.2 LimitationsMarketer will not be able to use the x-factor/personal touch factor/human touch factor to influence the audience as the marketing is completely based on the advertisement and the information that the advertisement might lead to [websites, blogs and other channels]

4.3 Security concerns

Information security is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not believe that their personal information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from their promotional redistribution, also known as opting out. However, many customers are unaware if and when their information is being shared, and are unable to stop the transfer of their information between companies if such activity occurs. Additionally, companies holding private information are vulnerable to data attacks and leaks. Internet browsing privacy is a related consumer concern. Web sites routinely capture browsing and search history which can be used to provide targeted advertising. Privacy policies can provide transparency to these practices. Spyware prevention software can also be used to shield the consumer.

Another consumer e-commerce concern is whether or not they will receive exactly what they purchase. Online merchants have attempted to address this concern by investing in and building strong consumer brands (e.g., Amazon.com, eBay, and Overstock.com), and by leveraging merchant and feedback rating systems and e-commerce bonding solutions. All these solutions attempt to assure consumers that their transactions will be free of problems because the merchants can be trusted to provide reliable products and services. Additionally, several major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have provided back-end buyer protection systems to address problems if they occur

4.4 Usage trends

Technological advancements in the telecommunications industry have dramatically affected online advertising techniques. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image advertisements to those containing more recent technologies like JavaScript and Adobe Flash. As a

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result, advertisers can more effectively engage and connect their audience with their campaigns that seek to shape consumer attitudes and feelings towards specific products and services

4.5 Effects on industries

The number of banks offering the ability to perform banking tasks over the internet has increased. Online banking appeals to customers because it is often faster and considered more convenient than visiting bank branches.

4.6 Internet auctionsInternet auctions have become a multi-billion dollar business. Unique items that could only previously be found at flea markets are now being sold on Internet auction websites such as eBay. Specialized e-stores sell a vast amount of items like antiques, movie props, clothing, gadgets, and so on.

As the premier online reselling platform, eBay is often used as a price-basis for specialized items. Buyers and sellers often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item's selling price.

4.7 Advertising industryIn addition to the major effect internet marketing has had on the technology industry, the effect on the advertising industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually. Coopers reported that US$16.9 billion was spent on online marketing in the U.S. in 2006.

This has caused a growing impact on the United States' electoral process. In 2008, candidates for President heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries, candidates added, on average, over 500 social network supporters per day to help spread their message. President Barack Obama rose over US$1 million in one day during his extensive Democratic candidacy campaign, largely due to online donors.

5.0 The benefits of E-Marketing over traditional marketing

5.1 ReachThe nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, e-Marketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.

5.2 ScopeInternet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. E-Marketing includes, among

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other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.

5.3 InteractivityWhereas traditional marketing is largely about getting a brand's message out there, e-Marketing facilitates conversations between companies and consumers. With a two-way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive.

5.4 ImmediacyInternet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine you're reading your favorite magazine. You see a double-page advert for some new product or service, maybe BMW's latest luxury sedan or Apple's latest iPod offering. With this kind of traditional media, it's not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition. With e-Marketing, it’s easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year.By closing the gap between providing information and eliciting a consumer reaction, the consumer's buying cycle is speeded up and advertising spend can go much further in creating immediate leads.

5.5 Demographics and targetingGenerally speaking, the demographics of the Internet are a marketer's dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes.Buying power is not all though. The nature of the Internet is such that its users will tend to organize themselves into far more focused groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

5.6 Adaptively and closed loop marketingClosed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers' wants and needs.With e-Marketing, responses can be analyzed in real-time and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that there's minimal advertising spend wasted on less than effective campaigns.Maximum marketing efficiency from e-Marketing creates new opportunities to seize strategic competitive advantages.The combination of all these factors results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line.

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6.0 Online shopping

Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web shop, web store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping.

6.1 History

In 1990 Tim Berners-Lee created the first World Wide Web server and browser. It opened for commercial use in 1991. In 1994 other advances took place, such as online banking and the

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opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Intershop introduced its first online shopping system. In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared

6.2 Customers

Online customers must have access to a computer and a method of payment.

In general, higher levels of education, income, and occupation of the head of the household correspond to more favorable perceptions of non-store shopping. Also, increased exposure to technology increases the probability of developing favorable attitudes towards new shopping channels.

In a December 2011 study Equation Research found that 87% of tablet users made an online transaction with their tablet device during the early holiday shopping season.

6.3 Logistics

Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine.

Once a particular product has been found on the web site of the seller, most online retailers use shopping cart software to allow the consumer to accumulate multiple items and to adjust quantities, like filling a physical shopping cart or basket in a conventional store. A "checkout" process follows (continuing the physical-store analogy) in which payment and delivery information is collected, if necessary. Some stores allow consumers to sign up for a permanent online account so that some or all of this information only needs to be entered once. The consumer often receives an e-mail confirmation once the transaction is complete. Less sophisticated stores may rely on consumers to phone or e-mail their orders (though credit card numbers are not accepted by e-mail, for security reasons).

6.4 Payment

Online shoppers commonly use a credit card to make payments, however some systems enable users to create accounts and pay by alternative means, such as:

Billing to mobile phones and landlines Cash on delivery (C.O.D., offered by very few online stores) Check Debit card Direct debit in some countries Electronic money of various types Gift cards Postal money order Wire transfer/delivery on paymentSome sites will not accept international credit cards, some require both the purchaser's billing address and shipping address to be in the same country in which site does its business, and

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still other sites allow customers from anywhere to send gifts anywhere. The financial part of a transaction might be processed in real time (for example, letting the consumer know their credit card was declined before they log off), or might be done later as part of the fulfillment process.

6.5 Product delivery

Once a payment has been accepted the goods or services can be delivered in the following ways.

Downloading: This is the method often used for digital media products such as software, music, movies, or images.

Drop shipping: The order is passed to the manufacturer or third-party distributor, who ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.

In-store pickup: The customer orders online, finds a local store using locator software and picks the product up at the closest store. This is the method often used in the bricks and clicks business model.

Printing out, provision of a code for, or emailing of such items as admission tickets and scrip (e.g., gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligility (e.g., assurances that the right of admission or use is redeemed at the correct time and place, for the correct dollar amount, and for the correct number of uses).

Shipping: The product is shipped to the customer's address or that of a customer-designated third party.

Will call, COBO (in Care Of Box Office), or "at the door" pickup: The patron picks up pre-purchased tickets for an event, such as a play, sporting event, or concert, either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of this service has increased.

6.6 Shopping cart systems

Simple systems allow the offline administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a web space. These systems do not use an online database.

A high end solution can be bought or rented as a standalone program or as an addition to an enterprise resource planning program. It is usually installed on the company's own web server and may integrate into the existing supply chain so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent.

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Other solutions allow the user to register and create an online shop on a portal that hosts multiple shops at the same time.

Open source shopping cart packages include advanced platforms such as Interchange, and off the shelf solutions as Avactis, Satchmo, osCommerce, Magento, Zen Cart, VirtueMart, Batavi and PrestaShop.

Commercial systems can also be tailored to one's needs so the shop does not have to be created from scratch. By using a pre-existing framework, software modules for various functionalities required by a web shop can be adapted and combined.

6.7 Online shopping

Like many online auction websites, many websites allow small businesses to create and maintain online shops (ecommerce online shopping carts), without the complexity that involved in purchasing and developing an expensive stand alone ecommerce software solutions.

6.8 Design

Customers are attracted to online shopping not only because of the high level of convenience, but also because of the broader selection, competitive pricing, and greater access to information. Business organizations seek to offer online shopping because it is much lower cost compared to bricks and mortar stores, offers access to a world wide market, increases customer value and builds sustainable capabilities.

6.9 Information loadDesigners of online shops are concerned with the effects of information load - whether consumers can be given too much information in virtual shopping environments. Information load is a product of the spatial and temporal arrangements of stimuli in the web store.

Compared with conventional retail shopping, the information environment of virtual shopping is enhanced by providing additional product information such as comparative products and services as well as various alternatives and attributes of each alternative, etc.

Two major dimensions of information load are complexity and novelty. Complexity refers to the number of different elements or features of a site, often the result of increased information diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site. The novelty dimension may keep consumers exploring a shopping site, whereas the complexity dimension may induce impulse purchases.

6.10 Consumer needs and expectationsA successful web store is not just a good looking website with dynamic technical features, listed in many search engines. In addition to disseminating information, it is about building relationships and making money.

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Businesses often attempt to adopt online shopping techniques without understanding them and/or without a sound business model, producing web stores that support the organizations' culture and brand name without satisfying consumer's expectations. User-centered design is critical. Understanding the customer's wants and needs and living up to promises gives the customer a reason to come back and meeting their expectations gives them a reason to stay. It is important that the website communicates to the customer that the company cares about them.

Customer needs and expectations are not the same for all customers. Age, gender, experience, culture are all important factors. For example, Japanese cultural norms may lead users there to feel privacy is especially critical on shopping sites and emotional involvement is highly important on financial pensions sites Users with more online experience focus more on the variables that directly influence the task, while novice users focus on understanding the information.

To increase online purchases, businesses must expend significant time and money to define, design, develop, test, implement, and maintain the web store. It is easier to lose a customer then to gain one and even "top-rated" sites will not succeed if the organization fails to practice common etiquette such as returning e-mails in a timely fashion, notifying customers of problems, being honest, and being good stewards of the customers' data.[ Because it is important to eliminate mistakes and be more appealing to online shoppers, many web shop designers study research on consumer expectations.

6.11 User interfaceThe most important factors determining whether customers return to a site are ease of use and the presence of user-friendly features. Usability testing is important for finding problems and improvements in a web site. Methods for evaluating usability include heuristic evaluation, cognitive walk through and user testing. Each technique has its own characteristics and emphasizes different aspects of the user experience.

6.12 Market share

E-commerce B2C product sales totaled $142.5 billion, representing about 8% of retail product sales in the United States. The $26 billion worth of clothes sold online represented about 13% of the domestic market, and with 72% of women looking online for apparel, it has become one of the most popular cross-shopping categories. Forrester Research estimates that the United States online retail industry will be worth $279 billion in 2015.

For developing countries and low-income households in developed countries, adoption of e-commerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access.

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6.13 Advantages

6.13.1 Convenience:Online stores are usually available 24 hours a day, and many consumers have Internet access both at work and at home. Other establishments such as internet cafes and schools provide access as well. A visit to a conventional retail store requires travel and must take place during business hours.

In the event of a problem with the item it is not what the consumer ordered, or it is not what they expected—consumers are concerned with the ease with which they can return an item for the correct one or for a refund. Consumers may need to contact the retailer, visit the post office and pay return shipping, and then wait for a replacement or refund. Some online companies have more generous return policies to compensate for the traditional advantage of physical stores. For example, the online shoe retailer Zappos.com includes labels for free return shipping, and does not charge a restocking fee, even for returns which are not the result of merchant error. (Note: In the United Kingdom, online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection (Distance Selling) Act 2000).

6.13.2 Information and reviewsOnline stores must describe products for sale with text, photos, and multimedia files, whereas in a physical retail store, the actual product and the manufacturer's packaging will be available for direct inspection (which might involve a test drive, fitting, or other experimentation).

Some online stores provide or link to supplemental product information, such as instructions, safety procedures, demonstrations, or manufacturer specifications. Some provide background information, advice, or how-to guides designed to help consumers decide which product to buy.

Some stores even allow customers to comment or rate their items. There are also dedicated review sites that host user reviews for different products. Reviews and now blogs give customers the option of shopping cheaper org anise purchases from all over the world without having to depend on local retailers.

In a conventional retail store, clerks are generally available to answer questions. Some online stores have real-time chat features, but most rely on e-mail or phone calls to handle customer questions.

6.13.3 Price and selectionOne advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors (though some local search engines do exist to help consumers locate products for sale in nearby stores). Search engines, online price comparison services and discovery shopping engines can be used to look up sellers of a particular product or service.

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Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending on the jurisdiction, a lack of sales tax may compensate for this.

Shipping a small number of items, especially from another country, is much more expensive than making the larger shipments bricks-and-mortar retailers order. Some retailers (especially those selling small, high-value items like electronics) offer free shipping on sufficiently large orders.

Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience.

6.14 Disadvantages

6.14.1 Fraud and security concernsGiven the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud on the part of the merchant than in a physical store. Merchants also risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchase. With a warehouse instead of a retail storefront, merchants face less risk from physical theft.

Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant. Identity theft is still a concern for consumers when hackers break into a merchant's web site and steal names, addresses and credit card numbers. A number of high-profile break-ins in the 2000s have prompted some U.S. states to require disclosure to consumers when this happens. Computer security has thus become a major concern for merchants and e-commerce service providers, who deploy countermeasures such as firewalls and anti-virus software to protect their networks.

Phishing is another danger, where consumers are fooled into thinking they are dealing with a reputable retailer, when they have actually been manipulated into feeding private information to a system operated by a malicious party. Denial of service attacks are a minor risk for merchants, as are server and network outages.

Quality seals can be placed on the Shop web page if it has undergone an independent assessment and meets all requirements of the company issuing the seal. The purpose of these seals is to increase the confidence of the online shoppers; the existence of many different seals, or seals unfamiliar to consumers, may foil this effort to a certain extent. A number of resources offer advice on how consumers can protect themselves when using online retailer services. These include:

Sticking with known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as trust mark or trust seal.

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Before buying from a new company, evaluate the website by considering issues such as: the professionalism and user-friendliness of the site; whether or not the company lists a telephone number and/or street address along with e-contact information; whether a fair and reasonable refund and return policy is clearly stated; and whether there are hidden price inflators, such as excessive shipping and handling charges.

Ensuring that the retailer has an acceptable privacy policy posted. For example note if the retailer does not explicitly state that it will not share private information with others without consent.

Ensuring that the vendor address is protected with SSL (see above) when entering credit card information. If it does the address on the credit card information entry screen will start with "HTTPS".

Using strong passwords, without personal information. Another option is a "pass phrase," which might be something along the lines: "I shop 4 good a buy!!" These are difficult to hack, and provides a variety of upper, lower, and special characters and could be site specific and easy to remember.

Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of spyware. Whenever you purchase a product, you are going to be required to put in your credit card information and billing/shipping address. If the website is not secure a customer’s information can be accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways to make fraud more difficult, however, the criminals are constantly responding to these developments with new ways to manipulate the system. Even though these efforts are making it easier to protect yourself online, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams out there to fully protect yourself and your finances.[20]. One of the hardest areas to deal with in online shopping is the delivery of the products. Most companies offer shipping insurance in case the product is lost or damaged; however, if the buyer opts not to purchase insurance on their products, they are generally out of luck. Some shipping companies will offer refunds or compensation for the damage, but it is up to their discretion if this will happen. It is important to realize that once the product leaves the hands of the seller, they have no responsibility (provided the product is what the buyer ordered and is in the specified condition).

6.14.2 Lack of full cost disclosureThe lack of full disclosure with regards to the total cost of purchase is one of the concerns of online shopping. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front as additional fees such as shipping are often not be visible until the final step in the checkout process. The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as duties and brokerage. Some services such as the Canadian based Wishabi attempts to include estimates of this additional cost, but nevertheless, the lack of general full cost disclosure remains a concern.

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6.14.3 PrivacyPrivacy of personal information is a significant issue for some consumers. Different legal jurisdictions have different laws concerning consumer privacy, and different levels of enforcement. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant. In response, many merchants promise not to use consumer information for these purposes, or provide a mechanism to opt-out of such contacts.

Many websites keep track of consumers shopping habits in order to suggest items and other websites to view. Brick-and-mortar stores also collect consumer information. Some ask for address and phone number at checkout, though consumers may refuse to provide it. Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list. This information is obviously not accessible to the merchant when paying in cash.

6.14.4 Hands-on inspectionTypically, only simple pictures and or descriptions of the item are all a customer can rely on when shopping on online stores. If the customer does not have prior exposure to the item's handling qualities, they will not have a full understanding of the item they are buying. However, Written and Video Reviews are readily available from consumers who have purchased similar items in the past. These can be helpful for prospective customers, but these reviews can be sometimes subjective and based on personal preferences that may not reflect end-user satisfaction once the item has been received.

Because of this, many consumers have begun going to real-world stores to view a product, before purchasing online. To combat the process, Target has requested distributors give them equally low prices, or alternatively, exclusive products available at their store only.

6.14.5 Product suitability

Any successful purely virtual companies deal with digital products, (including information storage, retrieval, and modification), music, movies, office supplies, education, communication, software, photography, and financial transactions. Other successful marketers use Drop shipping or affiliate marketing techniques to facilitate transactions of tangible goods without maintaining real inventory.

Some non-digital products have been more successful than others for online stores. Profitable items often have a high value-to-weight ratio, they may involve embarrassing purchases, they may typically go to people in remote locations, and they may have shut-ins as their typical purchasers. Items which can fit in a standard mailbox—such as music CDs, DVDs and books—are particularly suitable for a virtual marketer.

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Products such as spare parts, both for consumer items like washing machines and for industrial equipment like centrifugal pumps, also seem good candidates for selling online. Retailers often need to order spare parts specially, since they typically do not stock them at consumer outlets—in such cases, e-commerce solutions in spares do not compete with retail stores, only with other ordering systems. A factor for success in this niche can consist of providing customers with exact, reliable information about which part number their particular version of a product needs, for example by providing parts lists keyed by serial number.

Products less suitable for e-commerce include products that have a low value-to-weight ratio, products that have a smell, taste, or touch component, products that need trial fittings—most notably clothing—and products where color integrity appears important. Nonetheless, some web sites have had success delivering groceries and clothing sold through the internet is big business in the U.S

6.14.6 Aggregation

High-volume websites, such as Yahoo!, Amazon.com and eBay, offer hosting services for online stores to all size retailers. These stores are presented within an integrated navigation framework. Collections of online stores are sometimes known as virtual shopping malls or online marketplaces.

6.14.7 Impact of reviews on consumer behavior

One of the great benefits of online shopping is the ability to read others' reviews, which could be from experts or simply fellow shoppers on one product and service.

The Nielsen Company conducted a survey in March 2010 and polled more than 27,000 Internet users in 55 markets from the Asia-Pacific, Europe, Middle East, North America and South America to look at questions such as "How do consumers shop online?", "What do they intend to buy?", "How do they use various online shopping web pages?", and the impact of social media and other factors that come into play when consumers are trying to decide how to spend their money on which product or service.

According to that research, reviews on electronics (57%) such as DVD players, cell phones or PlayStations and so on, reviews on cars (45%), and reviews on software (37%) play an important role and have influence on consumers who tend to make purchases and buy online.

In addition to online reviews, peer recommendations on the online shopping pages or social media play a key role for online shoppers while researching future purchases of electronics, cars and travel or concert bookings.  On the other hand, according to the same research, 40% of online shoppers indicate that they would not even buy electronics without consulting online reviews first.

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7.0 Online shopping is a tool of Direct Marketing

7.1 Direct marketingDirect marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Direct marketing messages emphasize a focus on the customer, data, and accountability. Characteristics that distinguish direct marketing are:

1. Marketing messages are addressed directly to customers. Direct marketing relies on being able to address the members of a target market. Addressability comes in a variety of forms including email addresses, mobile phone numbers, and Web browser cookies, fax numbers and United States and international postal addresses.

2. Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call a free phone number or click on a link to a website.

3. Direct marketing emphasizes traceable, measurable responses from customers — regardless of medium.

Direct marketing is practiced by businesses of all sizes — from the smallest start-up to the leaders on the Fortune 500. A well-executed direct advertising campaign can prove a positive return on investment by showing how many potential customers responded to a clear call-to-

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action. General advertising eschews calls-for-action in favor of messages that try to build prospects’ emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on the organization’s bottom line.

7.2 Popularity of Direct Advertising

A recent study by the Direct Marketing Association reports that in 2010, marketers – commercial and nonprofit – spent $153.3 billion on direct marketing, which accounted for 54.2% of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $1.798 trillion in incremental sales. In 2010, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2010, there were 1.4 million direct marketing employees in the US. Their collective sales efforts directly supported 8.4 million other jobs, accounting for a total of 9.8 million US jobs.

7.3 History

Mail order pioneer Aaron Montgomery Ward knew that by using the technique of selling products directly to the customer at appealing prices could, if executed effectively and efficiently, revolutionize the market industry and therefore be used as an innovative model for marketing products and creating customer loyalty. The term "direct marketing" was coined long after Montgomery Ward's time.

In 1967, Lester Wunderman identified, named, and defined the term "direct marketing". Wunderman — considered to be the father of contemporary direct marketing — is behind the creation of the toll-free 1-800 number and numerous loyalty marketing programs including the Columbia Record Club, the magazine subscription card, and the American Express Customer Rewards program.

In 1872, Aaron Montgomery Ward produced the first mail-order catalogue for his Montgomery Ward mail order business. By buying goods and then reselling them directly to customers, Ward was consequently removing the middlemen at the general store and, to the benefit of the customer, drastically lowering the prices. The Direct Mail Advertising Association, predecessor of the present-day Direct Marketing Association, was first established in 1917. Third class bulk mail postage rates were established in 1928.

7.4 Direct Marketing Channels

Any medium that can be used to deliver a communication to a customer can be employed in direct marketing, including:

7.4.1 Email MarketingSending marketing messages through email or Email marketing is one of the most widely used direct-marketing methods. One reason for email marketing's popularity is that it is relatively inexpensive to design, test, and send an email message. It also allows marketers to deliver messages around the clock, and to accurately measure responses.

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7.4.2 Online ToolsWith the expansion of digital technology and tools, direct marketing is increasingly taking place through online channels. Most online advertising is delivered to a focused group of customers and has a tractable response.

Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services. Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to respond directly to the message or to find more detailed information. According to research by e-Marketer, expenditures on online display ads rose 24.5% between 2010 and 2011.

Search: 49% of US spending on Internet ads go to search, in which advertisers pay for prominent placement among listings in search engines whenever a potential customer enters a relevant search term, allowing ads to be delivered to customers based upon their already-indicated search criteria.] This paid placement industry generates more than $10 billion dollars for search companies. Marketers also use search engine optimization to drive traffic to their sites.

Social Media Sites, such as Facebook and Twitter, also provide opportunities for direct marketers to communicate directly with customers by creating content to which customers can respond.

7.4.3 MobileThrough mobile marketing, marketers engage with prospective customers and donors in an interactive manner through a mobile device or network, such as a cellphone, smartphone, or tablet. Types of mobile marketing messages include: SMS: (short message service) — marketing communications are sent in the form of text messages, also known as texting. MMS: (multi-media message service) — these messages use elements such as images, video, and audio; Mobile Applications: Smartphone-based mobile apps contain several types of messages. Push Notifications are direct messages sent to a user either automatically or as part of a campaign. They include transactional, marketing, geo-based, and more. Rich Push Notifications are full HTML Push Notifications. Mobile apps also contain Interactive ads that appear inside the mobile application or app; Location-Based Marketing: marketing messages delivered directly to a mobile device based on the user's location; QR Codes (quick-response barcodes): This is a type of 2D barcode with an encoded link that can be accessed from a Smartphone. This technology is increasingly being used for everything from special offers to product information. Mobile Banner Ads: Like standard banner ads for desktop Web pages but smaller to fit on mobile screens and run on the mobile content network

7.4.4 Direct MailThe term "direct mail" is used to refer to communications sent to potential customers or donors via the postal service and other delivery services. Direct mail is sent to customers based on criteria such as age, income, location, profession, buying pattern, etc.

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Direct mail includes advertising circulars, catalogs, free-trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail to homes and businesses. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries.

In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways – which reduces the handling (and therefore costs) required by the postal service. In the US, marketers send over 90 billion pieces of direct mail per year 

Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. For example, a person who has demonstrated an interest in golf may receive direct mail for golf-related products or perhaps for goods and services that are appropriate for golfers. This use of database analysis is a type of database marketing. The United States Postal Service calls this form of mail "advertising mail" (ad mail for short).

7.4.5 TelemarketingAnother common form of direct marketing is telemarketing, in which marketers contact customers by phone. The primary benefit to businesses is increased lead generation, which helps businesses increase sales volume and customer base. The most successful telemarketing service providers focus on generating more "qualified" leads that have a higher probability of getting converted into actual sales.

The National Do Not Call Registry was created in 2003 to offer consumers a choice whether to receive telemarketing calls at home. The FTC created the National Do Not Call Registry after a comprehensive review of the Telemarketing Sales Rule (TSR). The do-not-call provisions of the TSR cover any plan, program, or campaign to sell goods or services through interstate phone calls. The provisions do not cover calls from political organizations, charities, telephone surveyors, or companies with which a customer has an existing business relationship.

Canada has its own National Do Not Call List (DNCL). In other countries it is voluntary, such as the New Zealand Name Removal Service.

7.4.6 Voicemail MarketingVoicemail marketing emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Voicemail marketing presented a cost effective means by which to reach people directly, by voice. Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-spam," and prompted many jurisdictions to pass laws regulating consumer voicemail marketing. More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for other forms of voicemail marketing. Voicemail courier is a similar form of voicemail marketing with both business-to-business and business-to-consumer applications.

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7.4.7 Broadcast FaxingBroadcast faxing, in which faxes are sent to multiple recipients, is now less common than in the past. This is partly due to laws in the United States and elsewhere which regulate its use for consumer marketing. In 2005, President Bush signed into law S. 714, the Junk Fax Prevention Act of 2005 (JFPA), which allows marketers to send commercial faxes to those with whom they have an established business relationship (EBR), but imposes some new requirements. These requirements include providing an opt-out notice on the first page of faxes and establishing a system to accept opt-outs at any time of the day. Fax senders must begin complying with these new requirements, which are described in this fact sheet. Roughly 2% of direct marketers use fax, mostly for business-to-business marketing campaigns. Also, due to the popularity of a variety of digital communication methods, the overall use of faxes is less than in the past.

7.4.8 CouponingCouponing is used in print and digital media to elicit a response from the reader. An example is a coupon which the reader receives through the mail and takes to a store's check-out counter to receive a discount.

7.4.8.1 Digital Coupons: Manufacturers and retailers make coupons available online for electronic orders that can be downloaded and printed. Digital coupons are available on company websites, social media outlets, texts, and email alerts. There are an increasing number of mobile phone applications offering digital coupons for direct use.

Daily Deal Sites offer local and online deals each day, and are becoming increasingly popular. Customers sign up to receive notice of discounts and offers, which are sent daily by email. Purchases are often made using a special coupon code or promotional code. The largest of these sites, Grouping, has over 83 million subscribers.

7.4.9 Direct Response TVDirect marketing via television (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website). TV-response marketing — i.e. infomercials — can be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. This allows marketers to reasonably conclude that the calls are due to a particular campaign, and enables them to obtain customers' phone numbers as targets for telemarketing. One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of adding items to the offer and the guarantee of satisfaction were much copied, and came to be considered part of the formula for success with short-form direct-response TV ads (DRTV)

7.4.10 Direct Response RadioIn direct response radio, ads contain a call to action with a specific tracking mechanism. Often, this tracking mechanism is a "call now" prompt with a toll-free phone number or a unique Web URL. Results of the ad can be tracked in terms of calls, orders, customers, leads, sales, revenue, and profits that result from the airing of those ads.

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7.4.11 Insert MediaAnother form of direct marketing, insert media are marketing materials that are inserted into other communications, such as a catalog, newspaper, magazine, package, or bill. Coop or shared mail, where marketing offers from several companies are delivered via a single envelope, is also considered insert media.

7.4.12 Out-of-HomeOut of home direct marketing refers to a wide array of media designed to reach the consumer outside the home, including transit, bus shelters, bus benches, aerials, airports, in-flight, in-store, movies, college campus/high schools, hotels, shopping malls, sport facilities, stadiums, taxis — that contain a call-to-action for the customer to respond.

7.4.13 Direct Response Magazines and NewspapersMagazine and newspaper ads often include a direct response call-to-action, such as a toll-free number, a coupon redeemable at a brick-and-mortar store, or a QR code that can be scanned by a mobile device — these methods are all forms of direct marketing, because they elicit a direct and measurable action from the customer.

7.4.14 Direct SellingDirect selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties.

7.4.15 Grassroots/Community MarketingThe door-to-door distribution of flyers and leaflets within a local community is a business-to-consumer form of direct marketing used extensively by restaurants, fast food companies, and many other businesses focusing on a local catchment. Similar to direct mail marketing, this method is targeted purely by area and community.

8.0 The law and selling online

If you are selling online, there are a number of pieces of legislation you need to be familiar with. These are designed to ensure customers' personal data is kept secure, goods and services meet quality and suitability standards and online contracts are legally binding.

The Data Protection Act regulates how you use and protect personal information held about living people, in customer records. The Act affects information that you have on computer as well as some paper-based records. To comply with the rules you need to follow the eight data protection principles.

The Consumer Protection (Distance Selling) Regulations require you to give your customers specified information before they place an order. You are also required to send the buyer an order confirmation and give them a 'cooling off period' in which they can cancel their purchase if they wish. See our guide on distance selling and online trading.

The E-commerce Regulations are designed to ensure online contracts are legally binding. They specify what information about your business and contract you must share with online

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customers and sets out guidelines for advertising and promotions. See our guide on e-commerce and the law.

If your business is a limited company or limited liability partnership (LLP), under the terms of the Companies Act 2006, your website must show:

the full name of the company or LLP the registered office address of the company or LLP the registered number of the company or LLP the place of registration of the company or LLP if the company is being wound up the VAT number (if VAT registered) membership details of any trade or professional association

9.0 Internet and e-commerce industry in Bangladesh

Bangladesh is a country in South Asia, bordered by India on all sides except for a small border with Burma (Myanmar) to the far southeast and is bounded by the Bay of Bengal to the south. Being the seventh most populous country Bangladesh is among the most densely populated countries in the world with a high poverty rate. Nevertheless, Bangladesh is listed amid the "Next Eleven" economies, with the capital Dhaka and other urban centers considered as the driving force behind the growth. The country has made significant progress in different spheres of human development that, surely, stipulates ICT progress as well as progress in other spheres of the modern government. So, it gets interesting to find what Bangladesh’s Internet and e-commerce sector look like in terms of poverty on the one hand and progress signs on the other.The communication sector in the country, including Internet, has changed dramatically within 2 years. The incentives both from government and public sectors have encouraged this sector progress. That can brightly be reflected by the volume of Internet users in Bangladesh. In the year 2000 just 0.1%, or 100,000, of the Bangladesh population gold get internet access, compared to 2007, with 450,000 subscribers, or 0.3%. Currently over 600,000 of Bangladeshis or about 0,5% of the population, use Internet actively. Though the penetration still remains very low, within the country the growth is significant – over 450%. The Internet connection appeared in Bangladesh rather late with connectivity only in 1996.

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Over the last few years Internet market in the country has been growing rapidly, although obviously from a very low base. The government's high internet tariff is hindering the growth of the ICT sector inside the country. Recently the government decided to cut the tariff by 50%.Though broadband connection is available in the country, it still costs users of high speed connection much more than in other south Asian countries. Internet and e-commerce in Bangladesh is being developed slowly in comparison with other Asian countries. By 2005 the total volume Internet Service Providers operating in the country reached 180. Currently even more ISPs exist in the country, including ones providing dial-up, cable and DSL connection listed below:

• Aftab IT - pre-paid and post-paid dial-up, and broadband access along with web and software solutions

Bananinet – cable Internet provider

• Bangladesh Online - offers dialup access

• Bangladesh-web.com - total Internet access

• BD com - dial-up, broadband connection

• Bdcom Online - offers Internet service through pre-paid, post-paid, broadband and leased line. It also offers software products and web solutions

• Bijoy Online.net – offers pre-paid, post-paid and unlimited Dial-up, broadband, lease line Internet access

• BRAC BDMail Network - offers access through PPP, UUCP, lease line. Includes information on it and its products and services like software development and network solutions

• Bangladesh Telegraph and Telephone Board (BTTB) - state owned access provider serves in district level. Also offers .bd domain registration, public telephone, telex and telegraph (gentex).

• ConnectBD - offers access through dial-up, DSL and wireless broadband, includes domain registration, web and software development

• CGS Communication - provides high speed Internet connection through cable modem

• Daffodil Online – offers services like network solution including pre-paid and post-paid dial-up Internet, broadband through DSL, SDSL, ADSL, radio link, VSAT solution and corporate web and software development

• Global Information Services - Internet connection, networking, customized software for clients, data entry and processing, computer graphics design and publications.

• Global Online Services - pre-paid, post-paid and unlimited dial-up, DSL and wireless broadband access provider

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• Grameen Cybernet - dial-up and broad band access

• IDS Bangladesh - dialup and broadband Internet, network for office automation, web development and design.

• Intech Online - cable and DSL Internet and broadband connection

• ProshikaNet Online - provides various dial-up services and broadband service through radio link and DSL connectivity

• Speednet - broadband service provider

• Westec - dial up services for home and corporate users with VSAT connection. 

sdnbd.org offers the following ISPs popular in Bangladesh: 

• AB Network 

• Access Telecom  

• Agni Systems 

• Asia Online (BD) 

• Bangladesh T&T Board  

• Bd Corp 

• BG Tech 

• Dolphi Net 

• Drik Online  

• E-Net Communications 

• Information Services Network 

• KLBd Online 

• Link3 Technologies  

• NCLL 

• Pradeshta Network  

• Raspit.com 

• Shapla.net 

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• Span Internetworks  

• Spark Systems  

• Spectra Solution 

• SpectraNet 

• Square InformatiX  

• Trans-net System  

• Vas Digital Communications  

All the Bangladesh’s ISPs are regulated by the Bangladesh telecommunication regulatory commission (BTRC).

As for the WiMAX service, it’s now getting available owing to some internet service providers, like WiMAX Bangladesh, Global Access Ltd. However the process of WiMAX Internet service deployment is still very slow. 

Satellite Internet is provided in the country by 6 satellite earth stations. Thus, for instance, TempesTelecom offers Broadband Global Area Network (BGAN) Service, that claims to be the World's most sophisticated satellite Internet service, in Bangladesh. BGAN uses a variety of small lightweight portable satellite terminals which allow travelers and remote users to connect to the internet in places like Bangladesh without the need of infrastructure such as phone lines, cellular networks or Wi-Fi hotspots. 

Internet connection in Bangladesh can also be available via SEA-ME-WE 4 (South-East Asia - Middle East - Western Europe 4) cable - an optical fibre submarine communications cable system that carries telecommunications between Singapore, Malaysia, Thailand, Bangladesh, India, Sri Lanka, Pakistan, United Arab Emirates, Saudi Arabia, Sudan, Egypt, Italy, Tunisia, Algeria and France and is used to carry telephone, internet, multimedia and various broadband data applications. The landing site is Cox's Bazar, Bangladesh.

Country’s Internet country code top-level domain or ccTLD is .bd, administered by the Ministry of Post & Telecommunications of Bangladesh. Two year registration agreement for .bd or .com.bd is very expensive - $399 (http://www.rwgusa.com). Registrations are usually at the third level beneath several second-level labels (com, edu, ac, net, gov, org, and mil), paralleling the oldest gTLDs. Registration is open except gov and mil sub domains registration, which are limited to authorized entities in the Bangladesh government.

Let’s now turn to the e-commerce sector in Bangladesh. Obviously, e-commerce sector commenced developing boosted by Internet penetration growth; however, it’s still on the lowest stage of progress. It’s important that online transaction would boost the GDP growth in such a poor country as Bangladesh. 

Bangladesh’s e-commerce solutions can be represented by among others:

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• Bid In BD - marketing itself as the Best Auction Site in Bangladesh

• Hutbazar.com - the largest Bangladeshi online shopping complex

•Bangladeshi Online Mega shop

• An online gallery of Bangladeshi arts

• Adhuli.com – online shop providing also offering large gift choice

• ClickBD.com - Bangladesh’s online marketplace.

Bangladesh is definitely one of the countries with the lowest Internet and e-commerce penetration rate. However it strives to keep up with the modern world, aiming to become ICT developed country. So the government needs to work out a realistic e-commerce law. It should also collaborate with the commercial sector, which is much more flexible in accepting new technologies, to ensure a stable and reliable internet connection and successful e-commerce business.

10.0 Prospect of E-marketing in Bangladesh

Almost 0.4% of the total populations of Bangladesh use Internet properly. Besides this size of the population 3-5% of the total population is somehow related with the usage of the internet in Bangladesh. But this rate was worst in before this year (2011). In the year of 1998, this rate was only about 0.1% whereas in/before 1990, this rate was almost 0%. Since this rate is increasing day by day, hope is that Bangladesh will create a visual/ electronic market in very soon. As for example, cell bazar of GP and aktelbazar etc. In the end of the year of 2010 total number of internet users is 995560 including mobile phone users.

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E-Marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms e-Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous. E-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

Different international organizations i.e. Amazon, Expedia, E*TRADE and CDNow transformed their business (selling of books, travel, investments and music) into online. They saw that the system required a lowest price rather than the Brick-and-Mortar (offline) retailers/ companies. Today, the internet is mainstream in industrialized nations. High adoption rates are occurring in the 20 nations sporting 90% of all internet users and most of these populations can't do without the Web or e-mail. As well, most organizations know that they must include information technology in their marketing strategies to meet the needs of their markets efficiently and competitively. 

By June 2008, about 85% of users online are engaging in e-commerce. In Ireland, 91% shoppers are undertaking transactions online, 86% in Turkey are shopping online, and India and the UAE take up the join third place where about 84% of online shoppers are buying things online. That is, 84% of roughly 3.2% of India's population.

11.0 Online shopping Site in Bangladesh In present Bangladesh has been develop in it sectors. People of Bangladesh now start doing shopping online. There are so many sites where people of Bangladesh can buy online. Buying online is a new experience to Bangladeshi consumer. A brief discussion about those online shopping sites are Given bellow. This will help Bangladeshi Consumer to take the right decision fro buying online.

www.khulnabd.com

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KhulnaBD.com started its operations in April 30, 2009. KhulnaBD is Bangladesh's online marketplace where anyone can sell or buy almost anything. KhulnaBD has a strong and growing community user who trade in a wide range of item categories including Electronics, Cameras, Phones, Computers, CDs, Mobiles, Fashion Accessories, Music, and Travel. Through a world-class technology infrastructure KhulnaBD enables & simplifies e-commerce for Bangladesh's expending online community. People spend more time on KhulnaBD than any other Bangladeshi site, making it the most popular site of the country. KhulnaBD encouraged young generation to earn money from selling goods using the power of the Internet. KhulnaBD is proud to help many people established successful online businesses that make a living out of it.

Our Mission

KhulnaBD aspires to continuously shape the Bangladeshi Internet revolution by building the largest person-to-person trading community in the country. We will do so by offering the best consumer experience in an environment driven by high performance, constant innovation, teamwork and opportunity for wealth creation. Our mission is to provide an e-trading platform for Bangladesh where practically anyone can trade practically anything.

Bangladesh's Online Marketplace

People from all over Bangladesh buy and sell on KhulnaBD. Currently, over 90% of all listed items get sold on KhulnaBD giving buyer and seller the convenience of online trading. People come to KhulnaBD to buy and sell items in an array of categories from antiques, art, and collectables to practical items like used cars, mobiles, laptops, clothing, books, CDs, and electronics. Buyers have the option to purchase items in an auction-style format or items can be purchased at a set price through a feature called Fixed Price. KhulnaBD is the place to buy what you want, sell what you have, and make new friends while you are at it. Our online community of thousands of users that let you connects with people who share your interest.

www.clickbd.com

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ClickBD.com started its operations in April 14, 2005 as the first e-commerce portal in Bangladesh. ClickBD is an online marketplace where anyone can sell or buy almost anything. The site has a strong and growing community of users who trade in a wide range of item categories including Electronics, Cameras, Phones, Computers, CDs, Mobiles, Fashion Accessories, Music, and Travel. Through a world-class technology infrastructure ClickBD enables & simplifies e-commerce for Bangladesh's ever expanding online community. People spend more time on ClickBD than any other Bangladeshi site, making it the most popular site of the country. ClickBD encouraged young generation to earn money from selling goods using the power of the Internet. ClickBD is proud to help many people established successful online businesses that make a living out of it.

In 2011, ClickBD launched Online Stores alongside its Classified service, providing an opportunity for users to visit an online shopping mall and do online shopping at the best price. 

Our Mission 

ClickBD aspires to continuously shape the Bangladeshi Internet revolution by building the largest person-to-person trading community in the country. We will do so by offering the best consumer experience in an environment driven by high performance, constant innovation, teamwork and opportunity for wealth creation. Our mission is to provide an e-trading platform for Bangladesh where practically anyone can trade practically anything. 

 Our Beliefs 

We believes people are basically good.

We recognize and respect everyone as a unique individual.

We believe everyone has something to contribute.

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We encourage people to treat others the way they want to be treated themselves. 

We believe that an honest, open environment can bring out the best in people. 

 

Our Vision 

ClickBD is creating a place where people can offer goods for sale and anyone in the world can buy at a fair price. It will be a market of people, where your next-door neighbor can compete with a large corporation and have an equal chance of success. It will be a place that constantly adapts and improves to meet the needs of buyers and sellers. Trust, honesty and efficiency will be rewarded. In the end, our market will be so large and open that you will be able to find almost anything you can imagine. And every other way to buy and sell things will seem inferior. 

 Bangladesh's Online Marketplace 

People from all over Bangladesh buy and sell on ClickBD. Currently, over 90% of all listed items get sold on ClickBD giving buyer and seller the convenience of online trading. People come to ClickBD to buy and sell items in an array of categories from antiques, art, collectibles to practical items like used cars, mobiles, laptops, clothing, books, CDs, and electronics. Buyers have the option to purchase items in an auction-style format or items can be purchased at a set price through a feature called FixedPrice. ClickBD is the place to buy what you want, sell what you have, and make new friends while you are at it. Our online community of thousands of users that let you connects with people who share your interest. 

The Founder

The founder and the Chief Software Engineer of ClickBD, Humayoun Alamgir, is a graduate from Arizona State University (USA) who worked for many top-notch companies in the US, UK and Bangladesh. His continued passion for software engineering and desire for contributing in Bangladesh's internet revolution had led him to build ClickBD.com from scratch. According to his vision, this truly dynamic e-commerce solution will change the way we buy and sell in Bangladesh. He hopes, success of ClickBD will inspire more ICT entrepreneurs to come up with new and innovative ideas to shape up our country's future in IT.

The ClickBD Team

Robert Dighero, DirectorPeter Oertlin, DirectorDil Afrose, Chief Executive OfficerHumayoun Alamgir, Chief Software Engineer and Managing Director

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Golam Mohiuddin, Software EngineerAriful Azim Abdulla, System AnalystNashrah Rubyath, Customer Service RepresentativeTanzillah Wahid, Customer Service RepresentativeRasel Ahmed, Graphic ArtistKamruzzaman Khan, Sales OfficerImran Mahmud, Marketing OfficerIqram Ahmed, Receptionist

www.tazabazar.com

Tazabazar.com is one of the services of the Noorzahan Kamal Web technology (NKWT). NKWT Company operating web base service since early 2004 with full customer satisfaction.

Our Business Philosophy:

Tazabazar.com is an online shopping & gift service basis on Home delivery providing an opportunity to all over the Bangladesh to reach out to their loved ones. The target audience are men and women living in around the world who want to send gift to loves one & family from outside Bangladesh. 

Unlike other shopping sites tazabazar.com just does not act like an order taking site for various merchants. We operate through fulfillment center owned & operated by Noorzahan Kamal Web Technology. Goods are delivered by persons hired by us. Thus resulting in better service, faster delivery. An overall better shopping experience with tazabazar.com.Tazabazar.com deliver Groceries, Flowers, Cakes, Chocolates, Sweets, Electronics, Handicrafts, Apparel, Religious Frames & statues, stuffed toys, kids crockery, household products, lifestyle products and much more. It is your mall thus we are open to your suggestions on products to be added on tazabazar.com to make it suit your needs. Kindly send a message to [email protected]

we generally delivery whithin 24 hours after given order.Sometimes due to circumstances beyond our control, orders cannot get delivered or are delivered late. Most holidays we do make the delivery. Only exception of 2 Eid days and 2 days after the Eid celebrations. Also we do not make delivery on December 16, February 21, and 26th March. We always open on Fridays for delivery.

The delivery of all products are guaranteed unless there are problems caused by Holidays (local or unexpected) or wrong address/non availability of anyone at the address or similar problems, the deliveries invariably do not fail. However even though due care is taken there are cases of delay or even an early delivery.

www.muktobazaar.com

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Muktobazaar.com makes online shopping easy by allowing shoppers to shop across thousands of products from hundreds of stores and popular brands. Online shop for Bangladeshi gifts. Shop the latest in women, men, baby, kids, home, furniture, sports, toys, electronics, sharee, salwar kameez, shirts, pants, panjabi and more. Send gifts to Bangladesh.

Muktobazaar.com deliver Groceries, Flowers, Cakes, Chocolates, Sweets, Electronics, Handicrafts, Apparel, Religious Frames & statues, stuffed toys, kids crockery, household products, lifestyle products and much more. We generally delivery within 24 hours after given order. Sometimes due to circumstances beyond our control, orders cannot get delivered or are delivered late. We always open on Fridays for delivery.

Muktobazaar.com is always looking for your feedback and suggestions. If you are not able to find what you require please inform us and we will gladly consider adding it to our product listings. If there are any concerns regarding the services provided and or the security of your transactions Muktobazaar.com will make every attempt to work with you and come up with a solution.

www.giftzhaat.com

Welcome to GiftzHaat.com -. GiftzHaat.com is an online shopping place for sending flowers and other various gifts to your dear ones at different places in Bangladesh including Dhaka, Chittagong, Sylhet, Khulna, Rajshahi etc. Our local products have good demand in International market for its quality; color matching, eye catching design and presentation.

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Our product line includes Man's and Women's Wear, Handicraft items, Boutique, Leather goods, bamboo, jute and wood made items, candle and other gift items.We are continuously updating this site to provide you the quality of services. For your greater convenience. We are really concerned about your satisfaction. If you have any query about us, please don’t hesitate to contact us. . Thank you for visiting our site. We hope you will enjoy the pleasures of our online gift service.

www.Adhuli.com

Adhuli.com is one of the largest online shopping portal offering wide ranges of products and services at competitive price to the customer. It delivers products and services not only in Dhaka City but also to all major cities of Bangladesh taking personal care for its clients. Any one can purchase through internet using internationally accepted credit card. 

At present Adhuli.com offers to its customers wide range of products covering mainly Groceries, Gift, items, Garments, Cakes, Flower, Sports, Goods, Home Appliances and other items.

We assure you to deliver Bangladesh are best shopping experience and our every effort is directed towards providing exclusive products, reliable shipping and exceptional customer service.

www.DesiGreetings.com

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Welcome to Deshigreetings.com.  DeshiGreetings.com the Largest Gift Delivery Service for Bangladesh. 

Deshigreetings.com is more than just a greeting site, DeshiGreetings.com enables you to send  a great variety of products to your love ones and friends back home in Bangladesh.  Just take your pick from a host of gifts and greetings we have lined up for you.

Your satisfaction is very important to us.  Customers of DeshiGreetings.com and its entire collection of brands are offered a 100% satisfaction guarantee on all products and services.

12.0 Future prospects of E-commerce in Bangladesh

The communication sector in Bangladesh, including Internet, has changed dramatically within 2 years. The incentives both from government and public sectors have encouraged this sector progress. That can brightly be reflected by the volume of Internet users in Bangladesh. In the year 2000 just 0.1%, or 100,000, of the Bangladesh population gold get internet access, compared to 2007, with 450,000 subscribers, or 0.3%. Currently over 900,000 of Bangladeshis or about 0.6% of the population, use Internet actively. Though the penetration still remains very low, within the country the growth is significant over 600%. The Internet

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connection appeared in Bangladesh rather late with connectivity only in 1996. Over the last few years Internet market in the country has been growing rapidly, although obviously from a very low base. The government's high internet tariff is hindering the growth of the ICT sector inside the country. Recently the government decided to cut the tariff by 50%. Out of 64districts in Bangladesh, Internet services are available only in 6 major district headquarters. BTTB is planning to gradually roll out an IP

Network up to the 64 districts headquarters. In January 2002, the Internet facilities were extended to 12 districts. The project is running on very fast and today almost 40 plus districts are getting Internet facilities. Followings are the barriers of E-commerce in Bangladesh:

Very minimum number of users of web sites;

Poor telecommunication infrastructure with limited fixed line access, unreliable connectivity and low bandwidth (9K);

High price of computer and hardware: The per capita income of  our people is less than US$520. But in order to buy a computer its needed US$500 and for this reason, it is beyond the capacity for a villagers to buy it.

Lack of technically efficient  personnel;

Lack of investment in hardware and software;

The banking infrastructure in terms of electronic payments anointer-bank connectivity is poor. As such, the customers of 5770 branches of the local banks are unable to operate their account with the other branches of the same bank. Interbank transactions more cumbersome as the clearing-house of the central bank are not online. An inter-bank transaction may take even 2 weeks if the branches are different cities. Only branches of the private banks are interconnected with their respective head offices. They are also satisfactorily computerized. This represents only 25% of the entire banking sector.

Small number of Credit Card users;

Limitations of supportive legal system. Such as, exchange controls, protection of telecommunication monopolies, restrictive trade practice and prohibitions;

Absence of cyber law;

People's mindset and very slow and expensive Internet services;

Enterprise managers' lack of initiative and leadership in taking advantage of  E-commerce; if Bangladesh can overcome these barriers than it should easily say that the future prospects of E-commerce in Bangladesh is very bright.

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13.0 Challenges of E-commerce for Bangladesh

Network Infrastructure

Intra-bank and Inter-bank Connectivity

Local and Global

Bank-Client Connectivity

Security of transaction

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Banking mechanism

Automation

Convertibility of the Bangladesh currency

Retention quota

International credit  cards

Capacity Building: Human, Technical and Regulatory

Quick Settlement, Online credit Information, Skilled e-Manpower,  Regulatory

Framework 

Investment

Legal Infrastructure

Currency Convertibility: Access to Global Finance

E- Culture

14.0 Findings and Analysis

14.1 Research design

This study is an analytical, descriptive study, because it is concerned with learning what

influences Bangladeshi consumers to purchase online, and because it is conducted to

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establish whether there is a relationship between variables. The dependent variable in the

model is “intention” and the independent variables are “attitude to behaviour”, “subjective

norm”, “perceived behavioural control”, “moral self-identity” and “political self-identity”.

14.2 Hypothesis

A hypothesis has been constructed in order to examine whether the factors in the model do in

fact determine the intention to purchase online.

H1: The consumer’s intention to purchase Online is determined by the

attitude to behaviour, the subjective norm, the perceived

behavioural control, the moral self-identity, and the political self-

identity.

14.3 Method

This chapter offers a description of the methods used to development of the constructed

questionnaire and the collection of data, followed by interpretation of the respondents´

responds and an analysis of the data collected.

The analysis of the collected data will be processed using the statistical analysis tool SPSS.

This will be done through different statistical analyses, firstly to test the reliability of the

scales constructed from a factor analysis, and later to test the hypothesis that is stated above

14.4 Method of data collectionDuring the planning process of the thesis, contact was made to two online shops, “Khulnabd”

in Dhaka and “Clickbd” in Dhaka, who agreed to cooperate and assist in the data collection

process. Furthermore, contact was also made to one of the major organizations within online

shop, DeshiGreetings.com. However DeshiGreetings.com was unfortunately not able to

cooperate actively because of their busy schedules.

The study was conducted through a mix of qualitative and quantitative research. First a

qualitative pilot study was conducted on which we based the development of the

questionnaire. The pilot study enabled a better understanding of what perception the

consumers have of the online shopping, and which factors influences their purchases.

Furthermore, it also provided an insight into what type of questions there should be focus on

in the questionnaire.

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The survey was conducted as a self-administrated online questionnaire using a service called

StudSurvey. The StudSurvey tool is supported by the IT department at ASB, and was

therefore found to be a safe and reliable way of collecting data. The self-administrated online

survey had the advantage of being low cost, and it was able to provide a rapid data collection.

In addition, it gave the respondents the opportunity to answer the questionnaire at a

convenient time. However, when doing questionnaires in this manner the questions have to

be clear and precise, so that the respondent do not misunderstand the meaning of the

questions, since there can be no interviewer intervention or explanation.

The questions were designed in order to collect data that would provide an understanding of

what aspects the Bangladeshi consumers consider when purchasing online. Furthermore, the

questions and final questionnaire were designed according to the recommendations made by

Ajzen and Fishbein (1980), and was developed to be easy to read and understand. As

suggested by Ajzen and Fishbein, the majority of the questions were constructed as

statements. Since the topic of the questionnaire is not sensitive, the statements were

formulated in I-form, in order to make it easier for the respondents to relate to the subject.

Furthermore, it is also argued that this type of question design would make the questionnaire

faster to answer (Blumberg et al., 2005: 446; Ajzen and Fishbein, 1980: 41-46).

In order to increase the response rate, incentives of two gift certificates each of 200tk were

given to two random respondents. This was done after the finalization of the data collection,

and the gifts certificates have now been sent to the two respondents.

14.5 Respondents

The data was collected in Bangladesh and mainly in the region of Dhaka due to the easier

access to this region, since the study had its base in Dhaka. The pilot study interviews were

conducted during the month of March 2012, and the respondents for the questionnaire were

contacted and asked to fill out the questionnaire. An attempt was made to gather respondents

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(Own fabrication)

Sex men 64,40%WoMen 35,60%

Age Under 25 37,10%25-34 24,40%35-44 9,30%45-54 13,10%55-64 13%Above 65 3,10%

Residence Dhaka 87,50%Gazipur 6,30%Chittagong 6,20%

Table 2 The demographic distribution of the Respondents

that already had experience with online products, as it was expected that these would have a

more visible ethical stance, and have a more consistent view on online shopping

The final sample consisted of 20 consumers, 64, 4% were men and 35, 6% women. In terms

of age, 37,1% were under 25 years of age, 24,4 % were aged 25-34 years, 9,3% were aged

35-44 years, 13,1% were aged 45-54 years, 13% were aged 55-64 years and 3,1% were aged

above 65 years. As for the geographic distribution of the sample, the majority of the

respondents were from Dhaka, or more precisely 87, 5% had residence in Dhaka, 6, 3% had

residence on it side Dhaka and 6, 2% had residence on Chittagong. An overview of the

demographic distribution of the respondents can be seen in table 2 below.

Out of this sample 68,1% agreed to some degree that they understand the Online shopping

concept. Furthermore 90, 4% also agreed to consider them an individual that is concerned

with the ethical aspect of consumption, which was consistent to our intention to find a

sample, which would be of a strong ethical stance. Yet 67, 5% of the respondents said that

they do not think that there is enough focus on online shopping in the media.

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14.6 Data analysis

As mentioned the analysis of the gathered data was conducted using the statistical analysis

program SPSS. The objective of the thesis was to examine what factors influence the

consumers’ intentions to purchase Online. Therefore a multiple regression analysis was

performed. However, an R-type factor analysis was performing to establish with certainty

that the data could be reduced into the factors of the modified version.

Several factor analyses were performed, to reduce the data into the factors, “outcome

beliefs”, “referent beliefs”, “control beliefs”, “moral concerns”, “political concerns”, “and

attitude to behaviour ”,“ subjective norm ”,“ perceived behavioural control ”,“ moral self-

identity ”,“ political self-identity ”,“ intention and behaviour”.

The factor analysis also showed what questions had most explanatory power of the factors,

which later on could be used when explaining how the factors influence the intention to

purchase online. Bartlett´s test of sphericity was performed to establish whether there was

reason for conducting a factor analysis. With a significance level of 0, 00 for each of the

analyses, the Bartlett test indicated that correlations existed amongst the items, and thereby

gave a reason to conduct the factor analysis. In the anti-image correlation matrix the

measures of sampling adequacy (MSA) for each of the items in the factor has to be above 0, 5

to be appropriate for the factor. All of the items in the different factors were found to be

appropriate. We used the latent root criterion to establish the number of factors that would be

necessary for the analysed items. The number of components with an Eigen value above 1

represents the number of factors that were necessary. For all analyses one factor was found to

be suitable. To understand how the items explain the factor we looked at the communalities.

If communality of an item is below 0, 5 it is according to general statistic opinion not seen as

explaining enough of the factor to be of any importance (Hair et al. 2005:101-139).

Considering this criterion question 10 which was a part of the assumed factor for the

“outcome beliefs” would not be of importance. The same applies for question 23 in the factor

“moral concerns”, as both their communality value were below 0, 5.

Furthermore, we tested the reliability of each of the scales to ensure that the multiple

regression analysis would be reliable (Appendix D). This was tested using the Cranach’s

Alpha reliability statistics. Most of the scales were found to be reliable as their alpha value

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were all above 0, 7 which are required to be reliable (Blumberg, 2005:385: Hair et al, 2005:

101). However, the alpha value for perceived behavioural control was only 0,588, but we

decided to maintain the scale in the model. The low reliability will be addressed again if this

scale turns out to hold a large explanatory power of intention.

After having conducted all the preliminary analyses, a multiple regression analysis was

performed in order to analyze how the factors derived from the factor analysis could explain

the intention to purchase Online. A regression analysis was used in order to predict the value

of one variable on the basis of other variables. An equation was established to explain the

relationship between the dependent variable and the independent variables. In this case the

dependent variable was “the intention to purchase online” and the independent variables,

“attitude to behaviour”, “subjective norm”, “perceived behavioural control”, “moral self-

identity”, and “political self-identity” (Keller, 2005: 627). The regression equation for

explaining the relationship between intention to purchase online and the independent

variables are:

Y=β0+β Attitude X1+βSubjectiveNorm X2+βPBC X3+β MoralSI X 4+β PoliticalSI X5+ε

14.7 Results

I conducted multiple regression analysis on the entire sample. However, the previous studies

on online shopping consumption have split the sample into two subgroups, consumers who

never or rarely purchases online and consumers who regularly purchases online. Our sample

consists of only 132 respondents, and therefore if we were to split the sample it would result

in two small subsamples. By dividing our sample into two subgroups it could result in a less

accurate outcome, as the smaller sample size might not give a realistic picture of the

population (Keller, 2005: 321). Therefore, we conducted the analyses on the entire sample,

based on the assumption that most respondents have at some point purchased online products,

as respondents were found through distributing flyers in two online shops.

The following paragraphs will briefly go through the results for the items in the five variables

that influence the intention to purchase online. In addition, we will also comment on the

results of the measures on behaviour and intention.

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14.8 Intention to behaviour

The intention of the respondents to purchase Online differs quite a lot from their current

behaviour. This could be because the respondents, while filling out the questionnaire, had

been reminded of the option of online. Therefore their intention to purchase online differs

from their previous buying behaviour. Furthermore, there is the aspect of the respondents

who do not want to put themselves in a bad light and as a result might lie about something

they perceive as making them look bad .In this case that would be the intention to purchase

online.

14.9 Attitude to behaviour

The respondents’ attitude towards the purchase of online was generally positive, the mean of

the answers to the questions concerning the attitude to behaviour was 5, 5 out of 7 (see Graph

5). Since the attitude to the behaviour of purchasing online was measured on a 7 point

unipolar scale, a high mean indicates a general positive attitude towards buying online. This

signals that the respondents’ general attitude to the purchase of online was considered a

positive behaviour.

The attitude to behaviour was determined by what the consumers expect will be the outcome

of their actions, the behavioural beliefs. From the factor analysis we found that the

respondents believe that their purchase of fair trade coffee will be beneficial for the global

society, and that they feel they are helping to improve the working- and living conditions for

workers in the developing countries. If for some reason the behavioural beliefs of a consumer

should change, it would affect the consumers´ attitude towards performing the given

behaviour

14.10 Multiple regression analysis

The results of the regression analyses showed that the variables that explain the intention to

purchase online shopping “attitude to behaviour”, “subjective norm” and “moral self-

identity”. The final model derived from the results of the regression analysis, is shown in

figure 3.

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Behavioral beliefs

Normative beliefs

Attitude to behavior (Ab)

Subjective norm (SN)

Intention Behavior

Figure 3: Final model explaining the intention to purchase Online(Own fabrication)

Moral beliefs Moral self-identity

0,414

0,371

0,174

The standardized coefficients of the regression analysis show the relative importance of the

explaining variables of intention. “Attitude to behaviour” and “moral self-identity” both holds

a large explanatory value (0,414 and 0,371) which is about twice as big as the “subjective

norm” (0,174) (displayed in Table 3). The main focus of the marketing plan for Online

should therefore be on the attitudes the consumers hold towards the purchase, and on moral

aspects of online consumption.

The regression model show a certain weakness as it only explains 53, 6 % of the variance in

the analyzed construction. This means that besides the “attitude to behaviour”, “the subjective

norm” and “the moral self-identity”, there are other significant factors that explain 46, 4% of

the variance of the intention to purchase online.

14.11 The importance of product attributes

The respondents were also asked to evaluate how much five different factors were of

importance to their choice of online product. The five factors were “price”, “quality”, “taste”,

“availability”, and “brand”. The results showed that the respondents thought all of the factors

to be of importance, seen as the percentage distribution is very equal. However, the factors

“taste” and “quality” stands out with the highest percentages, with “brand” being the least

significant to the consumers’ choice of online shopping.

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14.12 Discussion and conclusion of the survey

The aim of this study was to examine what influences the Bangladeshi consumers to purchase

online. Furthermore, we also aimed at establishing whether there was a relationship between

“moral self-identity” and “intention”, and a relationship between “political self-identity” and

“intention”.

The “political self-identity” turned out not to have any statistically significant influence on

the intention to purchase online, and was therefore excluded from the final model that

explained intention. Nevertheless, in some studies it has been claimed that political and moral

concerns of the consumer are both part of the cognitive psyche of the consumer and therefore

should be incorporated as one variable. In this study this incorporation of the two variables

was not done as it was expected that the moral self-identity would influence the intention.

The influence of the moral aspect on intention had previously been proven through studies on

online consumption In addition, it was wanted to examine if the political aspect of

consumption alone would also be an influence on the intention to purchase online. Since it

proved not to be the case, in a further investigation of the intention to purchase online a joint

variable for moral and political concerns should probably be considered.

The “subjective norm” had the lowest explanatory value of the variables that influence the

intention to purchase online. This could be a result of consumers being more idiosyncratic in

their consumption habits than previously, and that they do not want to be subject to pressure

from their environment. From our sample it could be seen that it was the younger generation

of consumers (in age group 19-35), that did not agree with the statements on their

consumption being under influence by external social pressure. This may indicate that this

generation might be more independent in terms of attitude and more resistant towards social

pressure then the older generations.

The results of the statistical analyses showed that the intention to purchase online was

influenced by the “attitude to behaviour”, “subjective norm” and “the moral self-identity”.

Previous studies on online shopping consumption in other European countries had shown that

the moral or ethical aspect of consumption had a large influence on the consumers buying

Online.

I believe that this study provides a justification for using a moral dimension in the marketing

of online business. From the results of this research study it can be seen that the consumers

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feel they help improve the working- and living conditions of workers in the tree plantations

by buying online. Furthermore, the purchase of online is also considered to be “the right thing

to do” by many of the respondents. The focus of the marketing plan will therefore be on

motivating consumers to purchase online through an emotional marketing effort.

15.0 ConclusionI have analyzed the determinants of satisfaction of online shopping customers with a number of elements of satisfaction. My results support the finding of that there is no significant difference in the online shopping and consumer attitude. Y result also shown how comers are ready to buy online. In Bangladesh buying online is increasing day by day. We show Khulnabd website just open for the people of Khulna. By this we can get what will happen in next 5 year in Bangladesh online business sectors. There is a huge opportunities’ for new entrepreneurs top do business online. And online marketing is also a tool of direct marketing and we all know future of marketing is direct marketing.

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As evidenced by this study, several factors influence consumer to buy online. When people buying online thy also get free home delivery service which is also a motivation techniques. Online shopping company give the good product at a reasonable price at consumer doors steps. Online company also uses good IMC techniques to influence consumer for buying online.

16.0 RecommendationsAlthough we find that the online shopping company doing good but there are also some recommendation from me for doing online business:

1. First of all online shopping company must insure the product quality.

2. Online company should provide extra facilities to worker as well as customers.

3. Need consistency for future better performance.

4. Must follow online act.

5. Online company must give all the basic information about the company in the site.

6. Online shopping company must give advertisement on media.

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7. This feeling is really good when one consumer know that he is doing a good job and in

the right track of the life by buying online and will tell other.

8. Bangladesh government should also take some steps for build online shopping center.

9. Online shopping need a handsome investment.

17.0 Final remarks

This study was conducted solely out of personal interest in the subject, and not in cooperation

with any of the Online shopping organization. I have attempted to provide a general

understanding of what underlies the intention to purchase online, and how this understanding

can help to increase the awareness of shopping online in the Bangladesh consumer market.

18.0 Workload

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When starting to write this thesis the intention was to split it between me and do a section

each. However, I ended up working so closely together on all parts of the thesis, that the

result of a final thesis has been a completely joint effort.


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