ASM’s International E-Journal on ‘Ongoing
Research in Management & IT’
E-ISSN – 2320-0065
MARKETING MANAGEMENT
In Association With
I
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II
From The Editor’s Desk
INCON “International conference on Ongoing Research in Management and IT” is an
important activity of ASM group of institutes’ commitment for qualitative research in
academics. This “ASM’s International E-Journal on Ongoing Research in Management &
IT” is an outcome of the dedicated contribution from all the authors. INCON is truly
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Managing Trustee and Secretary,
Audyogic Shikshan Mandal,
Pune -411019 (India)
III
EDITORIAL BOARD
Dr. Asha Pachpande Managing Trustee and Secretary, Audyogik Shikshan Mandal
Dr. Sandeep Pachpande Chairman, Audyogik Shikshan Mandal
Dr. Santosh Dastane Director Research, ASM Group of Institutes
Dr. S. B. Mathur Director General, ASM’s IIBR
Dr. Sudhakar Bokephode Director, ASM’s IPS
Dr. G.B. Patil Dean, ASM’s IPS
Dr. Nandkumar Khachane Director , ASM’s IIBR
Dr. K. C. Goyal Professor, ASM’s IIBR
Dr. J. N. Shah Director, ASM’s IMCOST
Prof. Ashish Dixit Director, ASM’s ICS
Dr. Dhananjay Bagul Principal, ASM’s CSIT
Dr. Nirmala K Director MCA, ASM’s IBMR
Dr. Priti Pachpande Associate Professor, ASM’s IBMR
IV
CONTENTS
Sr
No:
Title of the paper
Name of the authors
1
New Trends in Digital Marketing and its
usage in the Healthcare Industry
Dr. Sandeep Pachpande
Mr. Rohit Arvind Panchmukhe
1-10
2
Personal protective equipment Industry:
An introduction to complex market of
Business to Business sales
Dr. Santosh Dastane
Amit Vishnu Hullale
11-15
3
“Maximizing customer satisfaction in
Service Marketing by adopting Total
Quality Management Principles”
Mr. Sambhajirao Shivajirao
Patil & Dr.G.B.Patil*
16-20
4
Role Of Weekly Market In The Era Of
Modern Marketing In The Vacinity Of
Pune District-A Case Study
Dr. S.P. Kalyankar
Prof. S.C.Verma
21-26
5
Employee opinion regarding factors
affecting on implementation of effective
CRM w.r.t. car dealers in Satara City
Mr. Swapnil Phadatare
Prof. (Dr.) Om Prakash
Haldar
27-36
6
Effects Of Service Recovery On
Customer Satisfaction And Loyalty
H. Sanjit Singh
37-55
7
A Study on Role of a Salesman in
Consumer Buying of a Small
Commercial Vehicle in Pune
Dr Sadashiv. P. Kalyankar
Babapeer .S .Hamgi
56-64
8
Production And Price Trends In Indian
Pulses
Dr. S.P. Kalyankar
Assist. Prof. Dilip M. Pawar
65-73
9
Rural Marketing Potential in India – An
Analytical Study
Prof. Dipti Jadhav
Prof. Sheetal Umbarkar
74-79
10
Implementing Marketing Strategies is
Advantage of Small Grocery Shops in
Pimpri Chinchwad
Prof. Madhuri Ajit Chaudhari
80-83
11
Online Advertising
Dr. Yuvraj Rajaram Thorat
84-88
12
Encapsulating Green Knowledge GAP
Among Millennial with Reference to
Organic Food Category
Nidhi Raj Gupta
89-94
13
Customer satisfaction in Retail Banking
in Navi Mumbai
Dr. Latha Sreeram
CA Geetanjali Pinto
95-101
14
The Applicability of Servqual Model to
Improve the Customer Satisfaction In
Healthcare Sector
Prof. Sandeep L. Sarkale
102-112
15
The Study of Consumer Behavior of
Winery Industry in Nasik
RajuRamdasGhandas
Prof. (Dr.) OmprakashHaldar
113-123
16
Effect of Online Retail Boom over Retail
Business in India
Dr. Pragya Dheer
124-128
Dr.K.C.Goyal
Page
No.
Sr
No:
Title of the paper
Name of the authors
17
Product Customization Vs
Homogenization in International
Marketing
Vishal Weldode
129-135
18
The Impact of E-Commerce on
Competition in the Retail Brokerage
Industry
Divya Bagla
136-138
19
A study of Indian Over-the-Counter
Drug(OTC) Market with special
reference to Indian Pharma Industry:
Opportunities and Challenges
VanrajTilekar
139-147
20
Telecommunication - A way to change
basics of Marketing
Smt. Vaneeta Raney
Smt. Arti Sharma
148-155
21
A Study of Consumer Behavior and its
Impact on Marketing
Prof. Vilasani
Mr. Bajaj
156-160
22
FDI in Retail Boon or Bane
161-172
23
Impact of Online Shopping on Retail
Business
Prof. B.M.Hiremath
Dr. C.R. Gudasi
Miss. Sangeeta P.Sansuddi
(Assistant Professor)
24
Globalization and its Impact on Retail
Industry
Prof. C.V.Koppad
Prof. Dr. S.G. Hundekar
180-188
25
Emerging Trends in Online Marketing
Mrs. S. A. Deshpande
189-198
26
A comparative study of Analysis &
Impact of E-Banking Services on
Customer Satisfaction of Public and
Private Banks with Special Reference to
Pune Region
Prof.Sachin Misal
Prof. Sunil Joshi
Prof. Shivaji Mundhe
199-206
27
Online Retailing in India: A Retrospect
207-214
28
Marketing Of Health Services In
Gorakhpur District: A Micro Level
Analysis
Dr. Sushama S Patil
Ishita S. Patil
Dr. Poonam Ojha
215-224
29
General Study On Effectiveness Of
Advertising On Radio Channels In Pune
City: A Survey Of College Students
Prof. Sunil Darawade
225-229
30
General Study On Effectiveness Of
Advertising On Radio Channels In Pune
City: A Survey Of College Students
Prof. Sunil Darawade,
Prof. Ganesh Lande,
230-234
31
Organic Food: A Study on Demographic
Characteristics and Factors
Influencing Purchase Intentions among
Consumers in Pune
Prof. Kajal Maheshwari
Prof. Sneha Alan
235-241
Page
No.
173-179
Prof. Ganesh Lande
Sr
No:
Title of the paper
Name of the authors
Page
No.
32
“The Impact Of Service Quality
Dimensions On Customer Satisfaction- A
Study Of Mc.Donalds
Prof. R. Nageswar Rao
Vandana.S
Vani.H
Prof.R.Nageswar
242-247
33
In – Store Advertising Audience
Measurement Principals
Ajay Sankhe,
248-254
34
The Role Of Internet In Tourism
Marketing
255-260
35
To Study The Relationship Between
Monthly Income (Rs.)And Amountspent
By Customers On Online Purchase
By- Shripad Bapat
Sudarshan Kale
Shilpa Kulkarni
Ms. Shilpa Kulkarni
Mr. Omkar Vaidya
Ms. Kripali Danani
36
A study on advertising and promotional
strategies & its effect on Sales on
Sahara Aamby Valley City, w.r.t World
Hotels
Prof Archana .A.Borde
268-272
37
Emerging Marketing: - Green Marketing
MR. RANJEET D. MORE
Prof. Radha S Mahatme
273-281
261-267
(From Industry Perspective: A Case
Study Method)
ASM’s International E-Journal on
Ongoing Research in Management & IT
E-ISSN – 2320-0065
New Trends in Digital Marketing and its usage in the Healthcare Industry
Mr. Rohit Arvind Panchmukhe
Dr. Sandeep Pachpande
(Research Scholar)
(Research Supervisor)
rohit_panchmukhe2000@yahoo.com
Chairman, ASM Group of Institutes.
Email: chairman@asmedu.org
ABSTRACT:
With the advent of Computers, Mobiles, Smart phones, and other digital devices
the importance of Digital Marketing have increased manifold. Today, there are close to
3.3 billion users that are connected to the internet which means a growth of 826.9%
since 2000 (Source: Internetworldstats.com) and the number is rising rapidly. Reduction
in prices of smart phones, tablets and personal computers are the key factors leading to
the high penetration of the internet use around the world. This has led to a revolution of
its kind and has created a humungous opportunity for the marketers to reach out to the
prospect customers with their offerings. Digital Marketing holds key to the success of the
marketers hence a lot of importance is given to plan the Digital Marketing by marketers.
Digital marketing is a form of direct marketing which links consumers with sellers
electronically using interactive technologies like emails, websites, online forums and
newsgroups, interactive television, mobile communications etcetera (Kotler and
Armstrong, 2009). It facilitates many-to-many communications due to its high level of
connectivity and is usually executed to promote products or services in a timely,
relevant, personal and cost-effective manner (Bains et al., 2010). Newer trends in
Digital Marketing like Mobile First, Social Conversion, Payment methods, Marketing
Automation, Personalization, Re-targeting, Content Amplification, Interactive & User
generated content, etc. are playing a key role and are defining factors for marketing
success. Hence, this research paper tries to study these new trends and comment on it
holistically. The rise in use of and reliance on digital technology among consumers has
ramifications on all industries, but its impact on the healthcare sector is especially
striking. Digital outreach is fast becoming the most effective — and most economical —
means for healthcare organizations to promote themselves to consumers. Pew Internet
surveys found that one in three American adults have gone online to investigate a
medical condition, and that 72 percent of Internet users have looked online for health
information within a year. As far as India is concerned, the total industry size is
expected to touch USD160 billion by 2017 and USD280 billion by 2020. This research
indicates that the healthcare industry is poised for a rampant growth in the coming
years and Digital Marketing holds the key to success.
Keywords: Digital Marketing, Healthcare, Mobile First
Introduction:
Today, there are close to 3.3 billion users that are connected to the internet which means
a growth of 826.9% since 2000 (Source: Internetworldstats.com) and the number of
Smartphone users worldwide will surpass 2 billion in 2016, according to new figures from
eMarketer, representing over a quarter of the global population. Situation in India is no
different; the online users in India doubled from 120 million users in 2011 to 278 million users
INCON - XI 2016
1
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CON - XI
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ASM’s International E-Journal on
Ongoing Research in Management & IT
E-ISSN – 2320-0065
Considering that the expenditure on healthcare has been slow and major portion of the
expenditure coming out of the pocket expenses, it’s the duty of the healthcare marketers to use
digital marketing effectively in order to minimize the cost which are involved in the traditional
channels of marketing. In the US, prior to the recession nonprofit hospitals were posting
revenue growth of 7% or more, but that slid to 3.9% last year as per data collected by Moody's
Investors Service. As a result, admissions are falling as higher insurance rates prompt patients
to seek more affordable care outside of hospitals and crimp the demand for elective
procedures. As per Kantar Media report hospitals, clinics and medical centers together spent
around $1.8 billion on U.S. measured media last year -- scrambling for ways to attract
revenue-generating patients while also controlling spending. Many are turning to search,
mobile and social for cost-effective marketing that reaches the growing number of consumers
who look online for health-care information. Paired with advice from referring physicians, the
internet is helping patients make more informed hospital choices. "The consumer-to-patient
journey is largely a digital journey at their moment of need," said John Weston, CMO at Mayo
Clinic. "If I were diagnosed with something tomorrow, one of the first things I would do is go
online." Marketers used to cast a wide net through TV, radio, print and out-of-home ads to
build brand awareness, but search-engine marketing is becoming a more significant part of
plans as hospitals take a more-targeted approach. TV and newspapers still reap the largest
hospital ad budgets because of their cost, but search is at the forefront of many campaigns.
Health-care marketers like Mayo Clinic are building responsive sites that emphasize the
mobile experience as consumers look for quick and easy access to wellness advice. Its
pregnancy app, for example, is designed to be a companion for mothers from childbirth
through their babies' first few months. And the clinic's patient app allows people to book
appointments and access their health information. Perhaps more than in any other field, the
power of the testimonial is key in health care, as patients and families researching diagnoses
often turn to patients with similar experiences. Social media gives hospitals and clinics the
chance to share patient stories and connect consumers.
Such are the developments in the field of digital marketing that it becomes essential to
explore these trends for the values they offer so that they can then be used in the field of
Healthcare marketing effectively. This research paper tries to study these new trends in digital
marketing for the benefits it offers and the challenges that it posts to the digital marketers
specifically in the healthcare domain.
Introduction to Problem Statement
Digital Marketing is on the verge of achieving newer highs of popularity amongst the
marketers given its advantages over the traditional modes of marketing. Newer trends are
emerging in digital marketing every passing day and it’s a greater challenge to the digital
marketers to understand these trends and put them to use for a better marketing success for
their companies. Healthcare industry seems to be showing promising trend albeit with certain
challenges which needs to be addressed in order to accelerate the growth of healthcare
industry. Digital marketing can play a significant role in helping to accelerate the growth trend
of the healthcare industry as digital marketing is one of inexpensive ways of marketing when
compared with the traditional methods of marketing. With the numbers of Computer, Mobile
and Smartphones on the rise and the cost of accessing the internet lowering we see that it has
become easier to target these customers at their convenience. However, there are social media
INCON - XI 2016
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ASM’s International E-Journal on
Ongoing Research in Management & IT
E-ISSN – 2320-0065
marketing, search engine marketing, content marketing, and mobile marketing challenges that
needs to be addressed by the digital marketers to keep the healthcare growth story intact.
Objectives of Research

To understand the new trends in digital marketing 

To understand how digital marketing can be leveraged effectively in healthcare
marketing 
Significance & Scope of Study
The market potential of digital healthcare is strong and has gained traction from all
angles – entrepreneurs, technology and healthcare giants, all willing to invest and reinvent the
system. Digital
technologies are reinventing healthcare across the patient lifecycle, enabling a more
personalized, timely and cost-effective treatment journey. The influx of smarter devices,
mobile solutions and patient-centered technologies means industry trends are evolving, and by
2020 the healthcare continuum as we know it today, will be unrecognizable. Hence, it is
imperative for the marketers to study these new trends in order to make wise marketing
decisions to get maximum returns on their investments. This study primarily focuses on the
new trends in the digital marketing space and its impact to the healthcare industry.
Methodology
The methodology that will be applied for the study has been chosen in order to acquire
Information and deduce conclusions about the said research topic. For the purpose of this
research paper, and in order to achieve the objectives, secondary data has been collected and
used. The secondary data has contributed towards the formation of background information,
needed by both the researcher in order to build constructively the Research Paper and the
readers to comprehend more thoroughly the Survey outcome.
Academic expert’s opinions and suggestions have been taken in writing this research
paper. Secondary data has been collected from journals, books and internet websites.
Literature Review
Digital Marketing:
In simplistic terms, digital marketing is the promotion of products or brands via one or
more forms of electronic media. Digital marketing differs from traditional marketing in that it
involves the use of channels and methods that enable an organization to analyze marketing
campaigns and understand what is working and what isn’t – typically in real time. Digital
marketers monitor things like what is being viewed, how often and for how long, sales
conversions, what content works and doesn’t work, etc. While the Internet is, perhaps, the
channel most closely associated with digital marketing, others include wireless text messaging,
mobile instant messaging, mobile apps, podcasts, electronic billboards, digital television and
radio channels, etc. As per Lexicon FT Digital Marketing is defined as “Marketing of products
of services using digital channels to reach consumers where the key objective is to promote
brands through various forms of digital media”. Digital marketing extends beyond internet
marketing to include channels that do not require the use of the internet. It includes mobile
INCON - XI 2016
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ASM’s International E-Journal on
Ongoing Research in Management & IT
E-ISSN – 2320-0065
phones (both SMS and MMS), social media marketing, display advertising, search engine
marketing, and any other form of digital media.
Most experts believe that 'digital' is not just yet another channel for marketing. It
requires a new approach to marketing and a new understanding of customer behavior. For
example, it requires companies to analyze and quantify the value of downloads of apps on
mobile devices, tweets on Twitter, likes on Facebook and so on. Example: One successful
digital media campaign was by Pizza Hut, which created an app that allowed customers to
create their own pizza by dragging their chosen toppings onto a graphical pizza base. The
iPhone would then determine which of the chain's thousands of locations the customer
happened to be nearest. The company advertised the new app online, in print, and on
television - even winning a placement in Apple's own iPhone commercial. Within two weeks,
the Pizza Hut app was downloaded 100,000 times and within three months iPhone users
ordered $1m worth of pizza. The app now has millions of users across the iPhone, iPad, and
Android platforms.
To ensure that the digital marketing objectives of any campaign is achieved it is
important to make sure that through the campaign we are able to reach the right audience,
engage with the right audience, motivate the audience to take action, and all of this at the right
cost in order to ensure that we get good return on our investments.
Components of Digital Marketing:
Sr.
Component Definition
No
1
Search
Process of getting
Engine
traffic
Optimization from the “free”,
“organic”,
“editorial” or
“natural” listings
on
search engines
2
Pay Per Click “Sponsored online
advertising that is
(PPC)
used
on a wide range of
websites, including
search engines,
advertiser only
pays if
the web user clicks
on
INCON - XI 2016
Examples
Advantages
Disadvantages
Google,
Yahoo!,
Bing
Global Reach
Better Sales
Conversion
Free & Targeted
traffic
Expand your
customer base
and target
audience
All
prominent
websites
Very Fast
Results
Target audience
at will
Easy
implementation
&
Flexible
Hard work &
Time
consuming
Gestation
period
is long
More difficult
to
beat a
financially
strong
competitor
Heavy
competition
Complicated &
Click Fraud
Expensive
bidding war
Restricted to
text and image
ads
5
ASM’s International E-Journal on
Ongoing Research in Management & IT
Sr.
No
Component
Definition
E-ISSN – 2320-0065
Examples
Advantages
Disadvantages
Wrong strategy
can hurt
reputation
More time
consuming that
SEO & PPC
Risk of
Negative
publicity
Ineffective use
=
Brand
Credibility loss
Hijacking
affiliate links
Affiliates risk
of
not getting paid
High
commission
costs
their ad”
3
Social Media
Marketing
“Form of
marketing that
utilizes social
networking
websites as a
marketing tool to
reach
its targeted
audience”
Facebook
Flickr
YouTube
Twitter
High ROI
Better Targeting
Increased
Visibility
Ability to go
viral
Cost Effective
Supports
traditional and
other digital
marketing
campaigns
4
Affiliate
Marketing
All
prominent
websites,
blogs,
social
media, etc.
Tracking is easy
Access to many
different
industries and
segments
Less risky mode
of channel to
enter new
markets
5
Content
Marketing
(Blogs,
Emails, etc.)
“Process where a
brand
or supplier, for
example
a book retailer,
attract
customers by
rewarding
the third-party (or
affiliate) for
marketing
their goods and
services,
and driving traffic
to
their website
“Management of
content
to engage visitors
and
customers. So any
medium which is
on a
webpage or social
network can form
the
All
prominent
websites,
blogs,
social
media, etc.
Educates,
Associate &
Engage
customers
Highly targeted
Content shared
across media
leading to being
viral
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Risk of
Negative
publicity
Wrong strategy
can hurt
reputation
Hard to
measure
the actual
6
ASM’s International E-Journal on
Ongoing Research in Management & IT
Sr.
No
Component
Definition
basis of content”
E-ISSN – 2320-0065
Examples
Advantages
Disadvantages
return on
investment
(ROI)
Trends in Digital Marketing:
90% of US Internet users visit a social network at least once a month (14.4% of all time
spent online), Facebook accounts for 12.3% of all time spent online. US Search market grew
12% overall in 2010, this growth indicates that US internet users are increasingly using search
for navigation, rather than typing a URL into the address bar. While more companies began
shifting ad spend online in 2010, direct marketing campaigns for telecom and other
networking services continue to dominate ad impressions. Interactive/Rich Media display ads
increased moderately compared to static ads (mostly due to
Facebook’s static model). 179 million Americans watched video online monthly in
2010, Americans spent 33% more time watching TV online in 2010 vs. 2009 (Hulu and 5
major TV networks’ sites). In
2010, the definition of “mobile” expanded to include iPads and other tablet devices,
about 47% of mobile subscribers have a data plan and access browsers regularly. The situation
in India is not that different, Out of 243 million active Internet users, 118 million are active on
social media with 100 million active on social media via mobile. Growth in the numbers of
active mobile social accounts saw a spike of +39% since January 2014. Facebook is the most
browsed social network on social media with a large base of 100 Million users more than 80%
of those users access Facebook via their mobile phone. Total Twitter users in India are 33
Million and from this base 76% of users access it via their mobile phone and LinkedIn has 26
Million India users, of the total 300+ Million users. Average daily television viewing time for
Internet users is close to 2 hrs. but average daily use of social media via any device is 2 hours
31 minutes. Share of web page views via laptop and desktops have a negative year on year
growth, while mobile phones are witnessing a positive growth though the percentage is small.
Social media activities and watching videos on mobile account 10% each when it comes to
mobile activities followed by playing games on mobile. Interestingly 9% of the population use
mobile banking. As per comScore total internet searches carried out in 2008 were 1.2 billion
out of which 81% means more than 1 billion searches conducted were on Google. Yahoo!
Sites ranked second with 9.4 percent, followed by Ask Network (1.9 percent) and Microsoft
Sites (1.7 percent). Indian Internet portal Rediff.com ranked fifth with 1.5 percent.
Along with this we are seeing a lot new trends in digital marketing by which marketers
are trying to attract new customers towards their offerings. We are seeing a lot of marketers
now going the “Mobile First” way, in which their strategy is to focus more on mobile
advertising because of the increased smartphone penetration more and more customers are
spending most of their leisure time on mobile. Companies are working extra time to ensure
that their marketing content and design of their products are compatible for viewing on the
mobile smartphones and tablets before making correlate designs for traditional desktop and
laptop computers. Enough has been said about the power of social networks. Not quite enough
has been said about the importance of “Social Conversions”. For ecommerce and lead
generation sites, social provides a growing opportunity to improve conversion rates and gain
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new conversion channels. This relationship starts with a handshake. That handshake is the new
conversion. And it happens on high-powered social landing pages. These landing pages come
after your paid search, email or advertising and culminate in targeted, social engagement-rather than a lead-gen form or single transaction. You guide your respondents to participate in
highly segmented social vehicles--self-serving to both your mission and to their needs. With
the advent of EVM credit cards and Digital Enablement Services the public is in for a new
experience when it comes to payment methods. These changes will have a ripple effect on
online payment and e-commerce sites, the convergence of physical and digital commerce is
not in the future, it’s happening now. Privacy issues are a mainstream concern and it’s up to
digital marketers to lead the way in reassuring, educating, and coaching customers through the
transition. Marketing automation platforms are also not behind when it comes to digital
marketing, they are proving their value to B2B marketers faced with a more complex customer
lifecycle, a wider array of digital marketing channels, and an unprecedented volume of
prospect and customer data. According to Forrester Research, B2B marketers that implement
marketing automation experience a 10% increase in their sales-pipeline contribution.
Aberdeen Group also found that “best-in-class” companies – defined as in the top 20% of
aggregate performers based on metrics such as marketing contribution to sales forecasted
pipeline – are 67% more likely to use a marketing automation platform.
Challenges in Digital Marketing with reference to Healthcare
1.
Relatively low Healthcare Content Marketing Usage: On average, 35% of all
marketers use print magazines, but 47% of healthcare marketers use them. 28% of
marketers use print newsletters compared to 43% of healthcare marketers, and 26% of
marketers use print for annual reporting compared to 36% in healthcare. When it comes
to using blogs, 74% of all marketers use blogs compared to only 58% in the healthcare
industry. The situation is similar for social networks, with an interesting exception –
71% of healthcare marketers make use of YouTube, more than the average of 63%. This
is likely because healthcare professionals use YouTube to televise procedures and
interview doctors
2.
Barriers to entry for Digital Marketing in Health care: There are a number of reasons
why healthcare is lagging behind other industries when it comes to digital marketing.
Healthcare professionals, who deal with matters of life and death, face unique
challenges. Patient confidentiality is very important, and potentially hackable electronic
systems raise concerns over a possible loss of privacy. Workers who handle that data are
understandably uneasy about uploading it into distributed networks
3
Lack of expertise in Social Media Management: Social media is still so young, that
businesses are much more likely to have failed on social media than succeeded. This
includes brands of all sizes – from the mom and pop shops to global brands with billions
of dollars and seemingly unlimited manpower. The challenges are related to the Content
to be produced, how often to sell on social media, accountability, and absent of the right
pool of talent to manage the end to end social media marketing strategy to bring oneness
in the marketing communication
4
Getting tangible ROI from SEO: From the changing algorithms to the lack of
keyword data, it’s become harder to get results and even harder to see results. Not a fun
combination. The biggest losers were the companies that relied on these search engine
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5.
6.
7.
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rankings for the majority of their online revenue. Once the rankings disappeared, the
revenue stopped. Even if you don’t find yourself in recovery mode, trying to break
through the competition without the availability of effective low-cost solutions has many
questioning the value of SEO. And rightfully so! Simply put, the cost of input has
increased while the expected output has decreased. That’s a dangerous trend
Optimizing The Mobile Experience: For years you’ve been hearing about the mobile
revolution. As former Google CEO Eric Schmidt put it, “the trend has been mobile was
winning. It’s now won.” We have seen client’s mobile traffic go from 5% to 30% in the
last couple years.
With this shift in traffic comes drops in conversion rates, less time spent on site, and
higher bounce rates. A responsive website, which reformats your site content based on
the users’ screen size, is a step towards an improved mobile experience. But if that’s all
you do to cater to your mobile audience, you’re missing the boat. Mobile users have less
patience, are seeking different answers, and can be at a different stages in the buying
cycle. The mobile user is different and it’s up to you to find out how and why. Only then
can you adjust your messaging and presentation to suit the mobile user
Managing the Website: About one third of B2B and B2C companies consider
managing their website a challenge. Websites are not the static brochures they once
were. Effective websites are dynamic, always evolving, and integrate into marketing
automation and CRM systems. Simply put, they are MACHINES. Managing a static
brochure is easy, managing a machine is not. Companies who rely on the internet to
generate meaningful leads and sales for their business invest heavily in the ongoing
operation of their website. This typically includes a combination of developers, digital
marketers, content developers, hosting experts, and other tactical experts. Some of these
positions are managed internally, others are outsourced. In our years working with
clients of all sizes, one trend has become abundantly clear: those who rely heavily on the
web to generate leads and sales invest significantly in their website operations, and are
never afraid to invest more
Securing Enough Budget: About one third of B2B and B2C companies also consider
securing enough budget a challenge. This challenge links closely with the ability to
measure ROI. When an acceptable ROI can be proven, most reasonable business owners
will have no problem investing more. For those trying to justify increased budgets for
new tactics, presenting outside data is helpful. No matter the company size, inbound
marketing trumps outbound in terms of ROI. When deciding between new inbound and
outbound tactics, inbound should always have the priority.
Limitations of the Research Study
A. Only Secondary data has been used for this Research Purpose.
B. Every Source of Secondary data could not be used
Conclusions:
It is pretty evident with the above study that Digital Marketing strategy plays an
important role in the overall marketing success of organizations. It is observed that with the
technological advances especially with the increased penetration of smartphones; marketers
are concentrating their efforts in building their products and websites to ensure that they are a
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perfect fit for the mobile as well as desktop publishing. We see an increasing trends in the way
the consumers are reached by the marketers in the digital world. Keeping in mind the
increased number of users who are on the social networks provides a great opportunity to the
digital marketers to engage with the prospect customers on the social network persuading the
customers to take that engagement higher and ultimately leading to a purchase. With such
promising future of digital marketing it has its own set of challenges. Companies need to
ensure that the budget allocation towards digital marketing is relooked into as currently digital
marketers are pulling up more from less resources. Right talent with right skills will be
deciding factors of success among competing companies; it will be the people who are
equipped and learned in the strategies of holistic digital marketing that will help companies
achieve its targeted Return on Investment for the digital marketing spend.
Future of digital marketing in the field of healthcare seems promising and it is important
that the companies and their digital marketers spend enough time to understand the new trends
in digital marketing. This will help them make key changes in their approach towards digital
marketing ensuring that all the aspects of digital marketing are put to use effectively in order
to ensure that the marketing campaigns are successful. It is also important that the digital
marketers spend enough time on understanding the challenges of implementing digital
marketing thoroughly in the healthcare industry as the industry is poised with its own
challenges of data confidentiality which holds back the digital marketers in going full throttle
while implementing the digital marketing strategy for healthcare industry players.
selected Bibliographies
Research Methodology by C.R. Kothari 
Marketing Management by Philip Kotler 12th Edition 
Bains et al., Marketing, OUP Oxford; 2 edition (16 Dec. 2010) 
http://www.forbes.com/sites/neilpatel/2015/03/09/10-digital-marketing-trends-in-2015that-will-boost-your-strategy/2/ 

http://octaneresearch.in/wp-content/uploads/2015/01/The-Digital-DNA-The-State-ofEmarketing-in-India.pdf 

http://www.sas.com/en_us/insights/marketing/digital-marketing.html 

http://lexicon.ft.com/Term?term=digital-marketing 

http://www.comscore.com/Insights/Press-Releases/2008/08/India-Search-EngineRankings




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Personal protective equipment Industry: An introduction to complex
market of Business to Business sales
Dr. Santosh Dastane
Director-Research, ASM’s IBMR
Pune, Maharashtra
Amit Vishnu Hullale
Research Student, ASM’s IBMR
Chinchwad, Pune, Maharashtra
amit.hullale@gmail.com
ABSTRACT
With the rapid industrialization in India, need of minimization of occupational
hazards towards worker, especially in labor intensives industries, has become critical.
The task to provide safe and secure environment to workers has become the
responsibility of that organization. Governing bodies and laws have stringent rules and
regulations for it. Also the current inflow of many MNC’s in India pushes further the
standards related to work safety.
This need of availing personal protective equipment as per prescribed standards,
presented an opportunity to entrenching and flourishing of a very complex and
competitive business. It is very interesting structure to study from marketing aspect
because of the very nature of this product, which adds to cost of manufacturing, falls in
consumable category, has legal norms & binding for utilization, provides a
humanitarian angle, along with many more dynamics.
This exploratory paper is an effort to identify various facts and settings in which
the industry works. It studies the importance of marketing channel, personal selling, and
relationship management. It also collects the preliminary information about the
industry.
Keywords: Personal protective equipment, safety, Industry, business to business,
framework
Introduction:
Industrialization in many ways leads to the growth of particular region, employers and
employees. Every occupation involves hazards and risks. In industry or organization, it
becomes responsibility of the employer to protect its employees from such hazards. This is
the underlying reason of developing a whole new industry known as Personal Protective
Equipment industry which provides Industrial and workplace safety solutions to protect from
or to minimize occupational hazards.
What PPE means:
While describing what Personal Protective Equipment is, Occupational Safety and
Health Administration first make it clear that employer should protect employees from
workplace hazards that can cause injury.
Controlling a hazard at its source is the best way to protect employees. Depending on the
hazard or workplace conditions, OSHA recommends the use of engineering or work practice
controls to manage or eliminate hazards to the greatest extent possible.
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When engineering, work practice and administrative controls are not feasible or do not
provide sufficient protection, employers must provide personal protective equipment (PPE) to
their employees and ensure its use. Personal protective equipment, commonly referred to as
"PPE", is equipment worn to minimize exposure to a variety of hazards. Examples of PPE
include such items as gloves, foot and eye protection, protective hearing devices (earplugs,
muffs) hard hats, respirators and full body suits.
(Occupational Safety and Health Administration, United States Department of Labor,
n.d.)
It is also important to mention PPE include a vast array of products such as:

Head, Eye and Face Protection, like, Helmets, goggles, face shields, hoods, etc.

Hearing Protection, like, ear plug, ear muffs, etc.

Protective Clothing, like, firefighting suit, boiler suit, chemical protective suit, etc.

Respiratory Protection, like, nose mask, respirator, oxygen cylinder, etc.

Protective Footwear, safety shoes with steel or composite toe, electricity resistant shoes,
etc.

Fall Protection, like, safety harness, fall arrester, ascender, descender, etc.

Hand Protection, like, rubber gloves, leather gloves, cotton gloves, etc.

Others
PPE market by end-use:

Construction: safety nets, fall protection, dust masks, etc.

Manufacturing

Oil & Gas: specialty masks, spill kits, oil resistant, antiskid shoes, etc.

Chemicals: Chemical splash resistant goggles, hand gloves, respirator line etc.

Food: food grade hand gloves, lint free clothing, hair cap, etc.

Pharmaceuticals: sterilized clothing, hand gloves, etc.

Transportation: reflective jackets and road safety equipment, etc

Others
Supply chain to value chain:
Market leading participants
There are some major international players in Indian market; some of them are working
substantially in many Indian states. Following are to name a few 3M, Honeywell, Ansell Ltd.,
Uvex Safety Group, DuPont, etc. Almost every international brad uses local dealer network to
reach to the domestic market. These organizations support these dealers with the technical and
marketing expertise and in return use the already service network set by these domestic
dealers.
Distribution network:
Big brands are now relying on their distribution network to reach to the buyer rather than
selling everything by themselves. A vast distribution network created and nurtured by the
multinationals as well as Indian PPE business giants holds its significant importance. Even the
big names now days know the value of efficient distribution network and rethink on strategies
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which may hamper the reputation of their brand in traders’ network. The main reason behind
this development is that presence huge number of micro, small and medium size enterprises or
industrial units which creates its niche segment in its own way. This segment is highly price
sensitive, requires PPE in smaller quantities, has limited loyalty to a particular brand of PPE,
and requires a personalized service format on the basis of relationship marketing.
Catering to key consumers and clients:
As discussed in previous point, manufacturers are now dependent on the distribution
network for as far as small firms are concerned. But to significant clients having huge PPE
budget, manufacturers set up own key account management process and cater these account
with at most care. Because these companies create an environment favorable to the growth of
PPE industry by pushing their vendors to follow rules and regulation related to safety.
Raw material manufacturers and suppliers:
Raw material for PPE is an important part of supply chain as it mainly controls the
prices of finished products. In case of leather goods like shoes, hand gloves, aprons, hand
sleeves, etc. and cotton goods like knitted gloves, protective clothing, etc. the huge demand of
consumables provides too narrow profit margins. Hence, even a slight change in raw material
price disturbs the whole supply chain network and working capital calculations of buyer. To
mention specially, after starting clean Ganga initiative, many tanneries without water
treatment plant were shut down, leading to shortage of leather in market, forcing the
significant price increase in leather based PPE in last year.
Online selling
Introduction of ecommerce and its rapid development also embraced the supply of
industrial safety goods. There are many websites apart from websites of industry leaders, are
facilitating an online platform to buy industrial goods and PPEs. Also some integrated
applications like just dial, indiamart.com, yellow pages, etc. also supporting the development
of online business pf PPE to major extent. The rapid availability of alternate supplies is
reducing the burden from safety and purchase officers.
Support network by manufacturers:
PPE manufacturers are employing many strategies to eliminate competition.
Manufacturers are utilizing their technical expertise as a tool to create a competitive edge over
others. A techno commercial team works to support every person in dealer network. Proper
training and product knowledge is provided to the sales staff. Every sales person is equipped
with latest product literature, both online and offline source.
Competitive landscape between certified and non-certified PPEs:
The locally manufactured PPEs are creating a huge competition to the certified PPE
manufacturers. The major reason of flourishing non-certified PPE market is the cost benefit
provided by them to the buyers. Also to mention absence of any incentive certified PPEs
pushing the use of low cost uncertified PPEs, sometimes even substandard products are also
preferred by small buyers.
Opportunities
1.
Growing acceptance to ‘Spending on PPE’ concept:
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Initially this situation could be somewhat complicated. But if handled properly, the well
informed buyers switch to the specialized products, even prefer to buy costly PPE. The
underlying reason is that, now a days cost of PPEs, or the total expenses on the safety products
is considered inevitable by many organizations. So in recent years, the projected costs or
budgets now have ‘spending on PPE’ element.
2.
Positive Approach towards specialized products:
To stay at par with the international brands and competition, and also to create goodwill
among stakeholders, many organizations are now ready to utilize the specialty safety products,
even though these products are much costlier. This approach is also reducing the competition
created by the substandard PPE.
3.
Vast array of suppliers:
The growing supplier network is facilitating the availability of the desired PPE and other
material. That’s the reason, now a days awareness is substantial among the safety officers as
well as the workers about merits and demerits of many PPE. Also this growing competition is
introducing price war among the suppliers, and eventually this competition is facilitating PPE
to consumer at fair prices and thereby increasing the acceptance.
4.
Diminishing geographical constraint:
Though the India being a country with large geographical area puts forward the
challenge of procuring material on time, the rapidly growing system of transportation by
various routes and transport infrastructure development even in remote areas is diminishing
the geographical constraint of making the material on time of consumption to the industry.
The other very welcoming facet in this discussion would be established online sales
networks. In PPE, as said earlier, presence of huge array of products and solutions makes it
difficult for sellers and buyers, to try every sample or alternative at workplace. The situation
worsens in cases where the work location is too far. The online sales and distribution networks
reduces this problem to major extent. Buyers choose the possible PPE solutions from online
list and then product sample will be procured to required site and the qualified products are
then procured in the bulk quantities.
5.
Expected introduction of GST
In India there is a discussion the going on about introduction GST tax structure. In
general opinion this will create a simpler and equal tax structure among all states or
throughout the country. This will facilitate easy sourcing of material across the country. This
introduction may limit the opportunistic people from gaining unfair profits.
Strict implementation of safety rules and regulations
The introduction of practices are gaining acceptance because of strict implementation of
safety rules and regulations by the authorities. Because of such favorable to development of
PPE industry there presents a new opportunity to innovate to the manufacturers. To enlist
following are some global organization implementing safety at work place, American National
Standards Institute (ANSI), Occupational Safety and Health Administration (OSHA),
International Labour Organization (ILO), The National Institute for Occupational Safety and
Health (NIOSH), The National Fire Protection Association (NFPA), National Workplace
Safety and Health (NWSH)
Challenges in front of PPE industry:
1.
Cost effectiveness:
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Every buyer of PPE is consistently searching for cost effective alternatives which is
narrowing the profit margins and also reduces chances of availing fat budgets for
innovation by manufacturers. It also increases the chances of malpractices and
substandard products.
2.
Longer Credit period
Almost every buyer expects a credit period ranging from one to twelve weeks, which
increases the capital requirement of business and thereby limiting the small distributors
only to trading low cost high margin, substandard PPE.
3.
Price war
Continues price war to increase customer base is reducing the profit margins and
pushing traders to employ unfair practices. Also the approach of the buyer toward PPE is
changing in negative way.
4.
Large number of alternatives for products:
Large number of alternative products makes it difficult to analyze steady demand of the
particular product for longer period. This makes the decision of capital investment very
difficult.
Along with the above mentioned challenges following are also important mention,
questionable level of awareness about safety rules among the safety personnel, low level of
awareness of consumers(workers) about own safety, consistent pressure to minimize cost,
completion against substandard material.
Conclusion:
The environment of too many buyers and too many suppliers, easy to enter and easy to
exit market, and minimized impact of other factors like transportation, is creating the situation
similar to fair competition. Also this industry is providing a safe working environment and
reduced occupational hazards. The complex structure of this industry provides a very good
opportunity implement unconventional business ideas.
Bibliography:

Frost & Sullivan Research Service, 27 Aug 2010. Strategic Analysis of the Indian
Personal Protective Equipment Market. [Online]
Available at: http://www.frost.com/prod/servlet/report-brochure.pag?id=P350-01-00-0000
[Accessed 29 December 2015].

Grand View Research, n.d. Personal Protective Equipment (PPE) Market Analysis By
Product (Head, Eye & Face Protection, Hearing Protection, Protective Clothing,
Respiratory Protection, Protective Footwear, Fall Protection, Hand Protection), By
End-Use (Construction, Manufacturing O. [Online]
Available at: http://www.grandviewresearch.com/industry-analysis/personal-protectiveequipment-market/toc
[Accessed 29 December 2015].

Occupational Safety and Health Administration, United States Department of Labor, n.d.
Personal Protective Equipment. [Online]
Available at: https://www.osha.gov/Publications/osha3151.html#intro
[Accessed 29 December 2015].
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“Maximizing customer satisfaction in Service Marketing by adopting Total
Quality Management Principles”
Mr. Sambhajirao Shivajirao Patil & Dr.G.B.Patil*
Research and Development Centre, Bharathiar University, Coimbatore – 641 046
*Director, ASM’s Institute of Professional Studies, Pune
THEME: SERVICE MARKETING
ABSTRACT:
“A service is any act of performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its production
may or may not be ties to a physical product.” Philip Kotler
The service sector in India is growing at a much faster rate than the agriculture &
manufacturing sector and it accounts for more than 50 percent of India’s GDP. In the
present highly competitive business scenario, companies are offering a wide range of
services to the customers and seeking to develop a reputation by superior performance
in service delivery & customer satisfaction. Product & service quality, customer
satisfaction and company profitability are well connected.
In order to maximize customer satisfaction, organizations are moving towards
adopting total quality management principles. Total Quality Management (TQM) is an
organization-wide approach for improving the quality of all the organization’s
processes, products & services. It was originally developed for manufacturing industry.
Today, the service industry requires effective implementation of TQM process because
services are delivered to consumers as soon as they are produced by the provider.
The primary objective of this paper is to determine the applicability of total
quality management in service marketing. This paper would enable the user to
understand what service marketing is and what is the requirement of implementing total
quality management in it? This paper would include some examples of service sector
companies which are implementing or seeking to implement the concept of total quality
management in their business operations. In the end, this paper will conclude the
advantages or disadvantages of implementing TQM in service marketing.
Keywords: Service industry, customer satisfaction, company profitability, service
quality, service marketing, etc.
This article is based on secondary data collected from various sources.
Introduction
Today, the organizations are operating in a highly competitive and rapidly changing
world hence it has become very difficult for them to maintain a stable relationship with their
customers without providing them desired quality and unremitting satisfaction. The Indian
service sector is growing with a rapid speed as compared to agriculture & manufacturing
sector and has a significant contribution in the nation’s economy. Service sector covers
education, banking, retail, insurance, healthcare, tourism, consultancy services, hospitality,
etc. Typically, the output of the service sector is in the form of intangible goods.
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In recent years, the concept of service marketing has been evolved in accordance with
the philosophy of customer orientation. The rapid development of service sector has led the
organizations to reap the crops of profitability by providing quality services to their customers.
The concept of service marketing is not completely similar to the concept of product
marketing. There are some factors such as intangibility, inseparability, perishability,
heterogeneity, etc. makes service marketing different from product marketing.
Nowadays, customers are educated & aware enough to verify companies’ claims and
service quality. Product & service quality, customer satisfaction and company profitability are
closely associated with each other. In order to maximize customer satisfaction, organizations
are moving towards adopting total quality management principles.
Service Marketing
The foundation of service marketing is service quality because when the companies
provide high quality services to the customers, it makes them loyal towards the company. The
companies with poor quality find themselves unable to attract and retain their customers,
irrespective of heavy advertising and promotional activities.
According to Stanton, the service system has to integrate all the elements involving
employees working for satisfying the varying needs of customers because services are
intangible activities that provide want satisfaction and need not be tied to the sale of any
product or another service (Application of TQM to Financial Services, 2007). Service
marketing differs from traditional marketing of products on the basis of its unique features
described as under:
Intangibility: Even though many services have some tangible part such as airline seat,
restaurant table & food, etc., the service performance in intangible. Pure services such as
baby-sitting, consultancy services, legal advice, etc. are intangible and there is no way to
inventory them or to display them. Due to such intangible qualities, customers find
difficulties in evaluating and comparing the services. Therefore, it requires a quality
service to be delivered.

Inseparability: In the act of service delivery, both the seller and the buyer need to be at
the same place when the service occurs. For example, at the time of haircut, the
customer and the barber both need to be present at the same time.

Perishability: There is no scope for inventorying, warehousing or re-using the services
due to their perishable nature. For example, a teacher cannot store his knowledge on
holiday and use than on some other day. Hence, the availability of service delivery at
relevant time is very important.

Heterogeneity: Services are heterogeneous in nature and in such case the service
delivery and customer satisfaction depend on employee and customer action. The
evaluation depends on the attitude, opinions and expectations of the customers.
Applicability of TQM in Service Marketing
In the present scenario, providing high quality services to the customer has become
strategic imperative for the organizations. The techniques of TQM are found to be the most
effective quality improvement techniques for the manufacturing sectors as well as service
sector. Nowadays, most of the companies are seeking to gain competitive advantage with the

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help of TQM and it is accepted by many organizations around the world as management
philosophy which includes a set of generic core principles.
The concepts of TQM can be applied to service marketing on the basis of some
similarity of 7 Ps of service marketing and 5 Pillar of TQM. The seven Ps of service marketing
covers all four Ps of marketing mix and extends it with three more Ps. The seven Ps of service
marketing are:

Product

Price

Place

Promotion

People

Process

Physical Evidence
Service marketing takes all four Ps of marketing mix and use an additional extended
marketing mix with it to make it complete for service marketing. In addition to this, the five
pillars (Diagram given below) of TQM also include two Ps of extended marketing mix, which
are Process and People.
Example of Indian Service Sector Firm with TQM
Taj Group of Hotels has implemented the concepts of Total Quality Management in
their business operations. Hotel Taj West End, Bangalore is implementing TQM to get
Malcolm Balridge Award established by the National Quality Council of UK. It has also
achieved JRD Quality Award in 1996 (Srinivasan, 2010).
According to Murad Ali and Rajesh Kumar Shastri, TQM can be implemented in
higher education also so that they can develop & provide more innovative & quality
educational programs at lower cost (Ali & Shasti, 2010).
Limitations
Though the TQM is functionally an integration of total quality control and quality
management, yet there are some difficulties in implementing TQM in service industry. The
problem is that the quality of service cannot be defined objectively. In addition to this, the
service industry has less control over the factors which can affect quality. The service sector
includes more uncertainty as compared to the manufacturing sector because services cannot be
stored and there is an involvement of customers also in the process of service delivery.
There is another difficulty of implementing the Total Quality Management in service
marketing. It is related with the intangibility of services which makes the measurement of
standard of service quality very difficult. Expectation about high quality services also varies
from customer to customer which makes the implementation of TQM difficult in service
marketing (Moballegih & Shivaraj).
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Dealing with the Barriers of TQM Implementation
According to Sureshchander, Rajendran and Ananthraman, there are 12 critical
dimensions of implementing TQM in service context (Sureshchandar, Rajendran,
Anantharaman, 2001).
These are as following:
1.
Commitment of top management and visionary leadership
2.
Human Resource Management
3.
Technical systems (service process design and process management)
4.
Information and analysis system
5.
Benchmarking
6.
Continuous Improvement
7.
Customer Focus
8.
Employee Satisfaction
9.
Employee relation and union intervention
10 Social responsibility
11. Servicescapes
12. Service Culture
On the basis of above mentioned points, it is quite clear that the commitment of top
management towards implementing quality programs is very essential. Furthermore, effective
communication, well designed programs and long term focused strategies are also very
important for this purpose. The implementation of TQM should be emphasized as a strategic
or long term decision rather than a one shot or short term affair. Though, the overall
involvement of human resource is a must for implementing total quality management, it
requires a firm leadership commitment. The leadership can accept it as a core value to provide
best service quality and customer satisfaction so that the employees of organization can also
follow it. The empowerment of employees can also be helpful where employees can take on
spot decision to meet customer requirements rather than asking the top management to take
decision which may delay customer service and leads to customer dissatisfaction.
Conclusion
Service marketing is generally labor intensive and the employees of service marketing
firms come directly in contact to the customers. The essentials of quality service delivery are
teamwork, cooperation and motivation. The service marketing firms can increase customer
satisfaction if they can have friendly & courteous employees offering quality services to the
customers. Therefore, it can be derived that the implementation of some quality measures such
as Total Quality Management are very helpful in the rapid development of customer
satisfaction and organizational profitability in service marketing.
REFERENCES

Mukherjee, P.N. (2006). Total Quality Management. New Delhi: PHI Learning Pvt. Ltd.

Srinivasan, R. (2010). Case Studies in Marketing: The Indian context (4th Edition). New
Delhi: PHI Learning Pvt. Ltd.
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




E-ISSN – 2320-0065
Sureshchandar, G.S., C. Rajendran, and R.N. Anantharaman. “A Conceptual Model for
Total Quality Management in Service Organizations”, Total Quality Management 12,
no. 3 (2001): 343-363.
Ali, M. & Shasti, R.K. (2010, February). Implementation of Total Quality Management
in Higher Eduction. Asian Journal of Business Management, Vol. 2, Issue 1, 2010.
Charantimath, P.M. (2003). Total Quality Management. Pearson Education India.
Moballegih, M. & Shivaraj, Dr. B. TQM Implementation and Organisational
Development among Indian Industries. Retrieved March 5, 2011 from
http://www.odsummitindia.org/content/html/Best%20Practises/Mostafa%20Moballeghi.
pdf
Application of TQM to Financial Services (2007, January). Retrieved March 5, 2011
from http://faculty.kfupm.edu.sa/CEM/bushait/cem515/term-papers/TQM-Finance.pdf
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Role Of Weekly Market In The Era Of Modern Marketing In The Vacinity
Of Pune District-A Case Study
Dr. S.P. Kalyankar
Prof. S.C.Verma
ASM’S IBMR-Chinchwad
ASM’S IBMR-Chinchwad.
ABSTRACT:
There are many types of modes of marketing such as on-line, multi-levelmarketing, franchise, razor & blade, cutting out the middlemen, low cost carrier etc.
Weekly market is more popular for perishable goods like fruits & vegetables in addition
to food grains, utensils, garments and other house hold appliances. It is normally on the
road-side at a designated location where buyers and sellers are in large numbers. It can
be a good model of perfect competition where prices are decided by the demand &
supply forces. It is once in a week from morning to evening.
Marketing decisions are combination of judgment and factual information. In this
study an attempt has been made (1) to compare the prices of weekly market with super
market for selected items, (2) to examine the producer’s share in the consumer’s rupee
in weekly market as compared to super market. Lastly the attempt has also been made to
study the marketing cost in weekly market of the selected products. The range in price of
the day during morning and evening is also worked out.
Research study is carried out in the randomly selected buyers & sellers from the
weekly market and compared with selected super market like D-mart, Big-Bazaar, star
bazaar and Trans cool. The finding of the study reveals that producers get more shares
in consumer’s price in weekly market as compared to super market. Secondly prices are
also low in weekly market as compared to super market.
Key Words: Market, Price, Producers, Supper market
Introduction:
Traditional Indian retailers account for 12 million retail outlets all over India and more
than 40 percent of them sell vegetable and grocery (IBEF, 2008). Indian food retail consists of
staple commodities comprising grains, pulses, and vegetables. The Indian food retail business,
especially vegetable retailing is witnessing a rapid growth in India's organised retail sectors.
The traditional retailing of vegetables is not very much organized, amounts to 97% of
the total market (Ernst & Young, 2006), is extremely localised and highly fragmented with
large number of intermediaries. The intermediaries between the customers and farmers are
traditional retailers with different outlet formats-mom and pop shops, non-permanent shops in
the market, pavement vendors, roadside vendors and push cart vegetable sellers, wholesale
traders, commission agents and auctioneers.The farmers themselves sell their produces
directly to the end consumers in localmarkets, regulated and unregulated 'farmer markets', or
they sell to intermediaries—agents andorganised retailers. The market place is usually in close
proximity to the farmland and customers accessing the market live in and around locale.
Farmers selling vegetables directly to the customers through weekly markets, which make
more profitable in compared to super market. Farmers sell bulk of their produces to agents and
auctioneers. The agents buy small quantities of produces from farmers and transfer it to
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wholesalers directly or through another agent. The auctioneers are people who enter
intobuying contract with farmers for whole or partial quantity of the produce and sell the
produce toan agent or a wholesaler. Auctioneers also transfer the vegetables to wholesalers
directly orthrough another agent. Wholesalers of vegetables sell to retailers—both traditional
andorganised retailers, and to customers, who buy in large quantity. Cart vendors, a type of
traditional retailers, buy vegetables from wholesalers or organised retailers, sell to customers
in mobile carts and deliver to customers at customer's doorsteps. Retail sector in India is at the
crossroads today. A shift between organised and unorganized retail sector is apparent,
especially in the vegetable retailing zone. This shift is a call for transfer of consumerism
towards organised retailing. The penetration of organized retail in the field of vegetable
retailing will face fierce resistance from traditional retailers with their existing strong foothold.
This resistance from the traditional vegetable retail cannot beignored. The most important
thing to note is that the traditional retail format supports a largerpopulation and provides direct
employments. So there is no way that government or anyonecan discount these foundation
stones of Indian economy. The role of government and its policyare vital in supporting,
improving, and developing traditional vegetable retailers.Vegetables, fruits, and grocery play a
vital role for the existence of people and also avery influencing role in the economy. Though
fresh fruit, vegetable, and grocery retail has beenconsidered as a very low-margin business, the
market potential has attracted Indian business houses and corporate, driving the forays through
different models like single-format, multiform sector integrated urban-rural models (Sengupta,
2008).
Origin of the Research:
PUNE: The fifth weekly farmers' market started in the city's Bavdhan area received
fairly good response from citizens, said officials in the state agriculture marketing board.
The weekly farmers' market initiative has been taken up jointly by the marketing board and
farmers' groups to make available fresh vegetables and fruits to city residents at reasonable
prices without any role of middlemen. The board officials said that they provide open spaces
to the farmers' groups and assist them to bring their produce to the city and sell it directly to
citizens. Five such markets have been started in the city so far in last one year, officials said.
Officials said that the fifth market that was started last week in Bavdhan area received
enthusiastic response from local residents. Over 40 farmers' group participated in the initiative
with their produce. Besides vegetables and fruits, the groups also offered variety of agri
products. Farmers are told to bring good quality fresh vegetables at these markets, officials
said.
Current Status:
In order to allow the ongoing initiative of the Maharashtra State Agricultural Marketing
Board (MSAMB) to directly market agricultural products, a ‘Farmers Weekly Market’ is on
the cards.The first such market will be held at Gandhi Bhavan in Kothrud on June 29. Other
than fruits and vegetables, this weekly market will also sell grains, milk produce and other
farm produce for sale.Tushar Agarwal, the organiser for the first weekly market said the move
aims at allowing direct interaction between the farmers and the buyers. “The presence of
middlemen at various levels spikes up the prices of agricultural produce. Through this
initiative, we aim to cut out the middlemen and help the farmers get a better fare for their
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produce,” he said. Agarwal said that the prices of the produce in the market would be less than
the current market value.Weekly markets have been a regular feature in villages, whose place
in urban areas has been taken up mostly by malls. The reintroduction of this concept is one of
the intiatives taken by MSAMB to allow direct marketing by farmers. Other than this,
MSAMB is also running an initiative to help farmers sell their produce in housing societies
directly. At present, this initiative is running in 226 locations in Pune and Pimpri Chinchwad.
Agarwal, speaking about the move, said that the main complaint he receives from people is
that they are not able to get all the produce under one roof. “Even in farm produce, many
things are not available and this weekly bazaar will address that concern,” he said. For
Sunday’s bazaar, around 30 farmers’ groups from all the talukas of Pune district will be
participating.Agarwal, who himself is from a farmers’ group, said that they have tried to
address the lack of variety sometimes seen in farm produce being sold. As groups from all
over the district will be joining the bazaar, variety will not be a problem. Other than vegetables
and fruits, products like rice, wheat, lentils, grains, and leguminous produce will be available
in the market. Also, produce like papads, pickles, kurdai, milk produce will be available in the
market
Significance of the Study:
Weekly market contributes significantly to strength the economic structure of the
country. Around 70% of the population of our country is depend of agriculture sector, so
weekly market provides good revenue to the farmers and sellers as well as job opportunity to
the concerned persons. Revenue is also being generated by the local Gramm Panchayat
through small amount of tax form the vendors and same amount is being invested on welfare
work such as cleanliness, road, electricity, and other development work in the vicinity. This
sector is still unorganized and less recognized. If this sector is organized properly and more
reorganization given, than producers/sellers get more profits of theirs produces as well as
consumers also get fresh and quality products within their budget. Gramm Panchayat will also
generate more revenue from the weekly market through small tax form the vendors.
Objective:
a)
To compare the prices of weekly market with super market for selected items.
b)
To examine the producer’s share in the consumer’s rupee in weekly market as compared
to super market.
Methodology: Proposed Methodology
It is an exploratory research based on the data collected directly from the field,
experience and observation of the researcher. The research is an attempt to know the facts of
weekly market for undertaking further descriptive research.
Population:
For the purpose of the research study, target population has been considered from the
weekly market of Lohegaon, “D” mart and Transcool of Chinchwad, local market of Khadki
Bazar and Vishrantwadi Market.
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Sample:
To study the above objective, 90-100 sample of respondent selected randomly among
the customers, vendors (producers/sellers) as well as from representative of Gramm panchayat.
The questionnaire was distributed at weekly market, ‘D’Mart, Transcool as well as Khadki
Bazar and Vishrantwadi market and data were collected by personal interview method. The
collected data was tabulated and simple tabular analysis is done to meet the objectives.
Respondent Profile:
The Respondents were categorized into three groups. They were as:

Respondent Category 1: Customers who buys the vegetables, fruits and grocery items.

Respondent Category 2: Vendors ( Producers/ sellers)

Respondents Category 3: Gramm Panchayat representative and organization executives.
Sample Design :
For the purpose of the study, the researcher has used non –random sampling technique
i.e. convenience sampling. The study has involved deliberate selection of customers, vendors
(producers/sellers) and Gramm Panchayat representative.
Procedure of the Study:
The respondents (Category 1, 2 and 3) has been approached and requested to participate
in the research study.
Instruments for Data Gathering:
The relevant data for the study has been collected from the primary and the secondary
sources. The primary data has been collected with the help of a structured valid and reliable
questionnaire, personal interview with the respondents. The secondary data has been collected
through electronics and internet search, records, journals and News papers.
Results:
The price of various fruits and vegetables for Morning & Evening time were collected
and given in Table 1.
TABLE:1 Price Spread In Weekly Market( /Kg)
Commodity Weekly Market Organised Markets
Vegetable
M
E
Transcool D’mart Daily Market
M
E
M E M
E
Tomato
30
20
40
40 45 40
50
40
Carrot
40
30
50
50 45 40
55
50
Cabbage
20
15
30
30 25 20
30
25
Brinjal
35
25
45
45 30 25
40
35
Fruits
70
60
100 100 90 80
90
80
Apples
Orange
25
20
50
50 40 30
40
30
Pomgranate
60
50
80
80 70 60
75
65
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Findings:
It is observed from the table 1 that tomato price in the weekly market was Rs30 per kg
as against Rs.40 to 50 in other organized market before noon. It has still decline to Rs.20 per
kg in the Evening in weekly market while it remained more or less same in other markets.
Similar trend was observed in case of carrot, cabbage and brinjal.
After in depth interview the vendors/ producers/farmers reported that they have 80% share in
the price paid by the ultimate consumers in the weekly market where as if they sell the
produce to the middlemen in the organized market their share is reduced to less than 50% and
price they receive is very less. It clearly indicated that producers as well as
customers/consumers are benefitted by reasonable price as well as fresh and quality products.
Issues and Challenges of Weekly Market:
Theft cases are taking place regularly, specially mobile-phones and cash.
Parking problem arises due to crowd.
Argument/conflict may arise among the producers/vendors due to business rivalry.
Unauthorized entry of vendors creates problems for regular vendors.
Faulty weighing machines are being used by few vendors.
Poor quality product may enter in the market.
Location should be dust free to maintain the freshness of consumer goods like fruits &
vegetables.







Benefits of weekly market:

Products free from tax deduction.

Abolishing of middlemen commission

Fresh and Quality product.

There is no long term investment

Transparency is being measured in the form of quality of the product as well as the cost
of the product.

Producer’s shares in the consumers rupee is quite fair.

Lot of employments generated to the local person.

Gramm Panchayat also generates good revenues through small tax paid by vendors.

Organic goods can also be made available
Suggestions and Recommendation:

Security arrangements can be carried out during market hours for controlling of theft
cases.

Separate parking area can be demarked for smooth function of weekly market.

Permanent space can be allotted to the vendors/ sellers in the market to avoid conflict
among the sellers.

Electronic weighing machine should be used for proper weighing of goods.

Market area should be kept neat and clean with storage and stacking facilities to
designated sellers/producers.

Badge can be given to the sellers/ producers for controlling of unauthorized entry in the
market.
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Temporary sanitation facilities can be provided to the sellers/customers.
Conclusion:
It’s clearly observed from the study that the weekly market in the vicinity of Pune are
playing very important role in terms of economic growth, financial dependency to the farmers,
job opportunity to the local persons as well as consumers get fresh and quality products to
their nearby according to their budget.
REFERENCES:
1.
2.
NEWS PAPER SAKAL (Dated : 1-12-2015).
http://goo.gl/sMTXbx
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Employee opinion regarding factors affecting on implementation of effective
CRM w.r.t. car dealers in Satara City
Mr. Swapnil Phadatare
Assistant Professor
KBPIMSR, Varye, Satara
India
swapnilsphadatare@gmail.com
Prof. (Dr.) Om Prakash Haldar
Professor
DYPSOM, Lohgoan, Pune
India.
ophaldar@gmail.com
ABSTRACT:
In a modern era it will be a challenge to every car dealer and car manufacturing
industries also to sustain and maintain loyal customers for long term. The expectations
of the customers are not only up to the purchase of the car, it continues in after sales
service. If we see in detail we will find out the general expectation of every customer
include being reminded for periodical service, pick up and drop, nominal charges, etc. it
indicates us that for retaining customer, it would be necessary to fulfill his maximum
expectations.
In this article we find the employee opinion on CRM implementation, important
factors for its better implementation and factors effective for improved CRM activities.
We tried to find out the factors which increase the employee trust on organization and
employee opinion regarding it. When we normally think about CRM and its effective
implementation some normal questions comes into a mind such as, Is this factors
increase loyalty of customer? Is it increasing trust? Is it really helped to attract
customer? Is it really help to improve more & more sales from existing customer &
potential customer
As we see the era is of high competition and essence of every business
organization and dealer to build the deep relationship with the customer and secondly,
by winning the buyers. Now we all understand very well that customer retention is the
main weapon for the success in the business.
Keywords: CRM, Effective CRM implementation, important factors for effective CRM.
Introduction:
Knowing your customers better will enable you to serve them better and keep them loyal
forever. This is the main theme of Customer Relationship Management (CRM). However, the
understanding of the meaning of CRM is still incomplete and growing. CRM can be
understood as a business philosophy, a business strategy, a business process, or a
technological tool. As a business philosophy Reference (Ryals et al., 2001). stated that "CRM
is a relationship orientation, customer retention and superior customer value created through
process management". As a business strategy "CRM is a customer-focused business strategy
that aims to increase customer satisfaction and customer loyalty by offering a more responsive
and customized services to each customer"(Croteau et al., 2003)
Customer relationship management is nothing but creating a strong bond, emotional
strong bonds with their customers for maintaining them for long term which gives us better
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result from them as well as from their relatives and friends for long time. To increase the
awareness regarding CRM & its importance we need to find out also which factors are more
important and effect on better implementation of CRM in organization. Employees with
maximum experience of work and maximum interaction with customers knows some more
about factors related CRM and its result for long time. So they can give us more sophisticated
information about CRM & its implementation. Now companies need to consider customer
behavior and profitability in order to successfully manage individual customer relationship.
Only individual cannot give us a result when we maintain a good relationship with them only,
for better result we need to go for ahead and long from it. We need to make a more deep
impact on existing customer’s means it can affect on potential also and help us to know more
and more about effective CRM implementation. As when we think about company strong on
CRM we need to find out the important factors for its better implementation also.
In the survey we take the six dealers those who are existed in Satara city from different
manufacturers. Such as DSK Toyota, Pandit Automotive Pvt. Ltd., HEM AGENCIES.
Chougule Industries Ltd., KANASE Auto wheels Pvt. Ltd. and Mahindra and Mahindra.
In research we tried to find out the employee opinion regarding factors affecting on
implementation of effective CRM and its impact on organizational sale. As the stiff
competition among the automobile dealers it’s essential to make a direct contact with the
individual customer to make them loyal and to survive into market for long term.
CRM training also plays an important role in managing a good relationship with
customer. As in the recent era customers more concentrate on services provided by the
organization. The overall satisfaction of the customer is totally depending on how the
employees treat them regarding the services provided by the employees after the sale of
product. As the satisfaction is not only the result of product satisfaction, its maintenance also.
Objectives of the Study:

To study the customer relationship management.

To study the employee opinion regarding Customer relationship management.

To Examining effective factors influencing Customer Relationship Management.

To study the important factors in implementation of CRM and its effectiveness.
Research Methodology:
The research is in Descriptive in nature. It involves study of problems related to CRM in
automobile industry or sample based on questionnaire to find out intended problems and their
solutions.
Sampling Units:
The researcher has selected only 6 four wheeler dealers out of 14 from Satara city on the
basis of their overall experience, reputation, goodwill as well turnover of concern dealer in
market of Satara city itself. Selected dealers are DSK TOYOTA, PANDIT AUTO, HEM
AGENCIES, KANASE HYUNDAI, CHOUGULE INDUSTRIES and MAHINDRA AND
MAHINDRA.
Sample size:
For present research survey researcher has selected 20 employees from each through
Random Sampling Method. So the total sample size is 120.
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Conceptual Background:
Customer Relationship Management (CRM):
It can help to select the most useful clients for an enterprise. Enterprises most frequently
feel who their main customers are, but only some use systematized media of customers’
stimulation, loyalty development. Collected data about consumers later become knowledge
and the latter determines profit for an enterprise. However the enterprise’s activity can be
based on such knowledge only when the data are processed and on their basis motivated
decisions to attract or sustain customers are taken. Of course, it is necessary to possess special
media, by means of which it is possible to perform the mentioned actions and which simplify
the very decision-making (Alsmadi and Alnawas, 2011).
CRM strategy and evaluation of current situation within an enterprise:
Before starting the implementation works of CRM, the audit of current situation should
be performed, i.e., skills of the work with customers, wrong decisions and failures,
competitors, partners, customers are analyzed as well as enterprise’s needs to establish CRM
system are also identified. The CRM strategy is the basis for the creation and implementation
of customer relationship system, thus this element in the model is seen behind the borders of
the system but not eliminated (Ruta et al., 2008).
Information technologies:
Fast and easy accessibility of accumulated information; accessibility of information from
geographically remote locations, optimization of work time use, decrease of negative impact
of employees’ change: by means of CRM system the maintenance of relationship between a
customer and service operator is realized by any communication media. It can be post, email,
phone calls, the Internet, individual visits, etc. In the model these elements are very important
both in economical and relationship marketing meaning. Fast and effective customer
relationship management will depend on properly chosen technologies (Ruta et al., 2008).
Knowledge management:
Managing knowledge is an important key in CRM because costumers knowledge
growing increasingly and so we should updating and managing our knowledge to identifying
the costumers needs and the ways of meet their need as soon as possible. Knowledge
management is necessary in all over the processes of CRM (Sin et al, 2005).
Organizing:
It consists of three important parts: Dentine organizational learning as the creation of
new standard operating procedures and business processes that reflect organizations
experience (Laudon and Laudon, 2004). Considers a learning organization is an organization
in which everyone is engaged in identifying problems, enabling the organization to
continuously experiment improves and increase its capability (Daft, 2004).
Technology:
Technology plays the role of enabler in CRM deployment (Das, 2004) and allows firms
of achieve greater customization and better service at lower cost (Sin et al, 2005).
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Communication channels of interaction:
Effective implementation of CRM programs requires two way communications to
interact directly with customers and receive immediate feedback. This keeps the firm in touch
with reality and enables employees to quickly respond to different consumer needs. The use of
modern communication technology such as telephone, internet, e-mail, fax, SMS, could also
enhance the effectiveness of two way communication (Alsmadi and Alnawas, 2011)
Table Employee opinion regarding factors affecting on implementation of effective
CRM:
FACTORS
DSK
PANDIT
HEM
KANASE
CHOUGULE
M&M
AVG
4
3.8
3.9
3.7
3.9
3.7
3.83
Mean
Rank
09
Strategy of the
company
Proper
segmentation
Existing technology
3.8
3.7
3.6
3.8
3.7
3.8
3.73
13
3.7
3.6
3.4
3.6
3.7
3.9
3.65
15
Organization
3.8
3.7
3.8
3.7
3.6
3.7
3.72
14
Reputation
3.6
3.7
3.5
3.6
3.8
4.1
3.72
14
Competency of
staff
Mutual benefit
3.9
3.8
3.9
3.7
3.6
3.6
3.75
12
4.1
3.4
3.8
4.1
4.1
3.7
3.87
07
Trust
4.1
3.6
4.1
3.7
3.8
4.1
3.90
06
Transparency
4.1
3.6
4.1
3.7
3.7
3.8
3.83
09
4
3.5
4.1
3.8
3.6
3.7
3.78
11
Interdependence
3.8
3.9
3.9
3.6
4.1
3.8
3.85
08
Commitment
4.1
3.9
4.1
3.7
3.8
3.5
3.85
08
Shared values
4.1
3.6
3.6
3.5
4
3.7
3.75
12
Adaption
3.9
3.8
4.1
3.7
3.9
4
3.90
06
Reciprocation
3.8
4.1
3.6
4.1
4.3
3.7
3.93
05
Differentiating
customer
Interaction with the
customers
frequently
Customization The
enterprises
behavior
Impact of coursy,
cooperation &
communication
CRM software
application will
coordinate multiple
channel of
communication with
the customer face,
call centre, ATM,
web, telephone,
sales associate etc
4.1
3.7
3.7
3.8
4.1
4.3
3.95
04
3.7
4
3.6
4.1
3.6
4.1
3.85
08
3.8
3.7
3.6
3.8
3.7
4.3
3.82
10
4.1
3.7
4.2
4
4.1
3.6
3.95
04
3.6
4
4.4
4
3.8
4.2
4.00
02
Concern
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FACTORS
CRM is associated
with to engage in
one to one
marketing by
tracking complete
customer life style
history
CRM enables
companies carry
out credit to have
customer
management more
efficiently
SMS as a tool of
customer
relationship
management
Immediate
settlements of the
customers
complaint
Rating of
employees by the
customer
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DSK
PANDIT
HEM
KANASE
CHOUGULE
M&M
AVG
3.7
4
3.8
3.6
3.6
3.8
3.75
Mean
Rank
12
3.8
4
3.7
4
3.8
3.9
3.87
07
4.3
4.2
4.3
4.2
4
4.1
4.18
01
4.4
4
3.8
4
3.9
3.9
4.00
02
3.9
3.8
4
4.1
4
4.1
3.98
03
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Finding:
1.
SMS is a 1st rank as per employee opinion that SMS is a tool of CRM and its affecting
4.18 satisfaction level on five point scale. As employee opinion it is more cost effective
and easy because of IT and CRM software and easy to access and easy to get for
customers also as customer explain. It’s also helpful to getting information about new
schemes, new product, service schedule, new product improvement, new technology,
best wishes on festivals and more informative tips on effective handling and safety
driving of vehicles. In the ranks DSK and Hem agencies believes more on SMS as a
best CRM tool for effective implementation of CRM. Others also use SMS on highly
basis for better implementation of CRM.
2.
“CRM software application will coordinate multiple channel of communication with the
customer face, call center, ATM, web, telephone, sales associate etc” and “Immediate
settlement of the customer complaint” ranks second as per employee opinion. It mean
CRM software help more at the time of CRM implementation because of overall
information in it and its works with every module which we require to easy and quick
connect with customers. As a behavior of customers at servicing time we observe
everyone in a hurry and expecting fast service from service organization, they don’t have
a patience so immediate settlement of customer complaint affect much more on
customer behavior to prefer a more product from the organization . The average
satisfaction level regarding that factor of all dealers is more about 4.0.
3.
On the basis of research we find out that the customers are more aware about their
services advisors and employee of the organization how they are behaving and how they
are giving the services (providing) to their customers. So if we gave a chance to them to
rate their service advisers and employees as they are observing and realizing about real
service provided by them, they will got happy and as got a chance to apprise them they
show their expectation from organizations on the basis of their feedback and we got a
more details about behavior of service advisers and employee for customers. As data
shows the average satisfaction level from customers on five point scale is more about
3.98 and its ranks 3rd out of overall content.
4.
“Differentiating customers” and “impact of coursy, cooperation and communication” is
on 4th rank as employees quite satisfied on these two points. Differentiating customer on
the basis of their behavior category and classes help to make appropriate strategy to
behave with them properly. Cooperation with customers and good communication skill
also Impact much more on customers behavior and its gives a positive approach and
positive result to maintain a good and long term relationship with them. On the basis five
point scale overall employees average satisfaction level is 3.95.
5.
“Reciprocation” is on the 5th rank as per employee rating. its overall satisfaction level is
near about 3.93 .They employee opine that as behave good with customers in response
they also behave in a good manners means respectively and its affect much more to get a
maximum output for long term relation.
6.
Employee “Trust” can be only generated by the consistent and pure service provided by
employees and “Adoption” of employees regarding quality of services and other contain
which affect on service quality and treatment given to customer at the time of sale of
product. It has 6th rank and 3.90 is an overall satisfaction on five point scale as per
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7.
8.
9.
10.
11.
12.
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employee. “Just improve trust, nothing else” is the secret of making loyal to anything.
So trust is the one most effective parameter in CRM and its implementation.
“Mutual benefit” is the one of the more important factors which gave the information
about customer expectations and organizational expectation via executives from
customers. Exactly both are in the organization because they are for some mutual benefit
with each other. “CRM enables companies carry out credit to have customer
management more effectively” means management very well aware about two credit
facilities works for organization and customer to get benefits from companies. The both
have 7th ranks as per average mean of satisfaction of customer on five point scale it’s
about to 3.87.
“Interdependence” is the one factor which also affect on CRM effectively.
Interdependence means the all employees are dependent on each other with some
parameter and these we cannot achieve without help of each of others. “Commitments”
is the one factor which gives the good result to maintain a long term relationship with
customers to fulfill the commitment in any situation works benefit and gives a good
result. Also “Interaction with the customers frequently” gives the long term result
because the CRM is the continuous process. It works only when we interact regularly
with customers for solving their problems. They all three has an 8ht rank in overall
content and its average satisfaction level on five point scale is 3.85.
“Strategy of the company” and “Transparency” both ranks 9th with overall content and
its average satisfaction level is 3.83. As per employee the strategy of the company on
various concepts of marketing and its properly application works well. As well as its
impact on customers mind to develop good image into their mind. Its helps to create a
better goodwill of company into society. Also the transparency regarding product quality
and service quality as well as the charges and complaint handling gives us to good result
to maintain and make loyal customers towards organizations.
“Customizing the enterprise behavior” works very well also in the phase of co operation
within employees for customers. We can say the best or good organizational behavior
motivates the employee to work better and behave prompt with their customers as a
point of best CRM implementation. Its rank 10th with overall contain and its overall
average satisfaction level is 3.82 on five point scale.
“Concern” is the 11th rank with overall contents and its average satisfaction level is 3.78
on five point scale. The customers are concern with the organization and the
organization is the because of them. So feeling concern or making those concerned with
organization develops good and strong bonds with the customers.
“Competency of staff” shows the confidence of employee regarding their skills and
societal behavior which make them more effective in CRM implantation .Shortly its
mean ability of staff to deal with the customer efficiently to create a strong bond with
them. “Shared value” is also a one content which develop a good CRM with customers.
Basically a value means ethics to maintain in organizations to develop good relations.
“CRM is associated with to engage in one to one marketing by tracking complete
customer life style history.” CRM is one tool which concentrates on any customer from
his first deal with organization which gives as good return and a good output as per long
term customers. They all ranks 12th position with 3.75 average satisfaction level of five
point scale.
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14.
15.
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“Proper segmentation” is also one important factor of CRM implementation because
without grouping the customer on appropriate group (segment) we cannot make an
appropriate strategy to trap them and make them long term customer. It has 13th rank
with overall content and it has 3.73 average satisfaction levels on five point scale.
Overall “Organization” and its “Reputation” both also affect on customer behavior. So
your organization good will among people or in society also makes good relations with
customers and help to solve them with you forever. They both rank 14th as employee
onion and it has 3.72 satisfaction levels on five point scale.
“Existing technology” is a part of technology means it just a system installed in
organization as infrastructure. It’s not affect on behavior to be loyal with organization so
it has average 3.65 satisfaction levels on five point scales and its rank 15th with overall
content.
Conclusion :
Customer relationship management is one of the best strategy to survive business for
long term with ultimate growth. it is not only sufficient to know only CRM awareness among
employees and strategies to better implementation of Customer relationship management in
organization but also essential to know important factors which directly affect on customer
behavior to maintain them long term and help employees to increase more effectiveness of
CRM. SMS, CRM Software's are more helpful to maintain effective relationship with
customers in easy and quick manner. As sending SMS regarding service schedules, new
schemes, product improvement, tips and wishes attract customers with great loyalty towards
organization helping to generate more business as software help into to bring it easy.
Reciprocation, Trust, Cooperation, good communication, make feeling concern, transference
services, and effective complaint handling with quick settlement of complaints attract
customer on very high level. So for better implementation of CRM every organization need to
find out the important factors and its effectiveness to generate loyal customers for business for
long term growth of organization.
REFERENCES:
[1]
M. Satish, R.N. Balamurugan, Sudher Nath Sharma, Dr. P.K. Karthikeyan (2013),
“Customer Relationsnhip Management in Car Industry with Referance To Car Dealers
In Coimbatore”, Journal of Business Mangement & Social Sciences Research, Vol. 2,
No 6, June, pp. 43-49.
[2]
Sirdeshmukh Deepak, Jagdip Singh, Barry Sabol (2002), “Consumer Trust, Value and
Loyalty in Relational Exchanges”, Journal of Marketing, Vol.66, January, pp.15-37.
[3]
Ramachandran K (2001), “How CRM can be Strengthened-Beyond the Hype”,
Productivity, Vol 42, April-June, pp.19-25.
[4]
Swapnil Phadatare and Prof Dr. Om Prakash Haldar (2015), "Employee Awareness
Regarding Factors Affecting on Consumer Behavior as a part of Customer
Relationship Management in Car Service Industry with Reference to Car Dealers in
Satara City.", IJEMR – December 2015 - Vol 5 Issue 12
[5]
Kale Sudhir H. (2004), “CRM Failure and the Seven dead by Sins”, Marketing
Management Review, Sep-Oct, pp.42-46.
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[6]
[7]
[8]
[9]
[10]
[11]
[12]
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Jayakumar A, Sathiya N (2010), “Customer Relationship Management (CRM):
Customer Retention”, Indian Economic Panorama, Vol.20, No.2, July,pp.28-30
ChoudhuryKoushiki, Avinandan Mukherjee and Ashish Banerjee (2001), “Relationship
Marketing Strategies and Customer Perceived Service Quality”, The Bankers, March,
pp.451-462.
Vyas Parimal (2000), “Measurement of Customer Satisfaction: A Study of Banking
Service”, Business Perspective, Vol 4, Sep, pp.73-87.
Singh Arvind (2004), “CRM-new horizons in Banking”, Journal of Banking, Vol.14,
Issue 2, June, pp.15.
Croteau A and Li P. 2003. Critical success factors of CRM technological
initiatives,Canadian Journal of Administrative Sciences, vol. 20,21-34
Maroofi F, Moradi Aliabadi B, Fakhri H and kolivand H. 2013. Effective Factors on
CRM Development, Asian Journal of Business Management 5(1): 52-59.
Hooshmand Fakhri and Babak Jamshidi Navid, 2013, The identify factors affecting
customer relationship system, Journal of Novel Applied Sciences, 2013-2-10/483-488
http://crmsearch.com/crm-success-factors.php
http://www.crmsoftwareblog.com/2012/08/five-critical-factors-for-crmimplementation-success/
http://www.oracle.com/us/products/applications/siebel/051291.pdf
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Effects Of Service Recovery On Customer Satisfaction And Loyalty
H. Sanjit Singh
Assistant Prof. ASM’s IIBR
Pimpri, Pune, India
ABSTRACT:
Purpose – This paper aims to contribute to a growing body of service recovery
knowledge by examining the relationship between service recovery, consumer
satisfaction and loyalty in a B2b logistics environment.
Design/methodology/approach – A conceptual framework encompassing the
concepts of service recovery, communication, customer satisfaction and customer
loyalty in Logistics firm setting is developed. A questionnaire is designed to focus on
issues related to efforts made to investigate causes of service failure and to develop
recovery strategies that meet customer expectations of how their LSP (logistic service
provider) should handle such problems.
Findings – Results show that service recovery and that higher levels of redress
independently increase positive consumer responses. The interaction of employee
responsiveness and courtesy can also have a positive impact on consumer evaluations.
Satisfaction was highest under conditions of high responsiveness and courtesy.
Keywords: Logistics service providers, Complaints, Service failures, Customer
satisfaction,
Customer loyalty, Service recovery
Introduction
As the importance of service quality, as both a marketing strategy and competitive
advantage, gains more and more recognition, efforts to recover from poor service delivery are
receiving increased attention in extant literature (Boshoff, 1997; Swanson and Kelley, 2001;
Hocutt et al., 2006; Morrisson and Huppertz, 2010). Yet, much of the literature, according to
Boshoff (1997), is based on anecdotal accounts rather than theoretical conceptualizations or
rigorous empirical assessment. If allowed to continue, poor service delivery threatens the longterm survival of the firm (Michel and Meuter, 2008; Seawright et al., 2008; Thwaites and
Williams, 2006; Magnini and Ford, 2004). In other words, if service firms do not manage
service recovery properly, it could harm their long-term success prospects. When firms carry
out effective complaint handling, this can have a great impact on customer retention rates,
deflect the spread of damaging word of mouth (WOM), and improve bottom-line performance
(Morrisson and Huppertz, 2010). When customer complaints are well-resolved and the
relationship between the firm and the customer is improved, this can lead to improvement in
terms of customer satisfaction, trust and commitment to the firm (Singh and Sirdeshmukh,
2000; Sirdeshmukh et al., 2002; Morgan and Hunt, 1994; Weun et al., 2004; Pina e Cunha et
al., 2009).
Customer loyalty is critical to conducting business in today’s competitive marketplace,
and LSPs (Logistics Service Providers) are no exception. Thus, LSPs have embarked on
different management strategies to promote customer loyalty. Loyalty refers to a deeply held
commitment to re-buy or repatronize a preferred product or service consistently in the future
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(Oliver et al., 1997; Bae Suk et al., 2009). A loyal customer feels an obligation to persevere
with a personal relationship through good and bad times (Reynolds and Arnold, 2000). The
central theme that runs through customer loyalty relates to the proportion of expenditure
devoted to a specific brand or store (Gee et al., 2008). In other words, customer loyalty is a
situation where repeat purchase behavior is accompanied by a psychological bond and repeat
purchase intentions and behaviours.
Loyal customers help promote business by providing strong WOM, creating business
referrals, providing references, and/or serving on advisory boards (Reichheld, 2003).
Moreover, loyal customers serve as a fantastic marketing force by providing recommendations
and spreading positive WOM: those partnership-like activities are the best advertising a
company can get (Johnston and Michel, 2008). The company can realize economic benefits
from positive WOM and loyalty is linked to company growth (Reichheld, 2003). However,
service failures are inevitable and occur in both the process and the outcome of service
delivery. They include situations when the service fails to live up to the customer’s
expectations (Michel et al., 2009; Johnston and Michel, 2008).
Service failures have been categorized as failure of the core service (service provider
error), such as failure to get one’s money from an ATM, or product and policy failures as
attributable to the organization or the customers. There are various consequences of service
failures, namely: dissatisfaction, a decline in customer confidence, negative WOM behaviour,
customer defection (Miller et al., 2000; Tronvoll, 2010), loss of revenue and increased costs,
or a decrease in employee morale and performance. Service recovery has to do with “those
actions designed to resolve problems, alter negative attitudes of dissatisfied customers and to
ultimately retain these customers” (Miller et al., 2000, p. 38), includes “situations in which a
service failure occurs but no complaint is lodged by the customers,” and has been expressed as
seeking out and dealing with service failures (Smith et al., 1999, p. 359). The “seeking out”
part of this distinguishes service recovery from complaint handling, as many dissatisfied
customers do not complain (Michel et al., 2009).
Successful service recovery can enhance customers’ perceptions of the quality of the
service and the organization, lead to positive WOM communication, enhance customer
satisfaction, and build customer relationships and customer loyalty (Michel et al., 2009).
However, the degree of success may depend on the type of service involved, the type of failure
(McDougall and Levesque, 1999) that occurred, and the speed of response. Service recovery
can also be poor or ineffective, with the consequence that the customer feels let down a second
time (failure in recovery). This may lead to loss of confidence in the organization and possible
defection, together with the spread of negative WOM communication.
Fewer than 50 per cent of complainants receive a reply, and those who do often view the
organization’s response as unsatisfactory, with slow responsiveness and rudeness (Andreassen,
2001). Only 30 per cent of customers who lodge complaints with a company are happy with
the company’s complaint handling efforts (Michel and Meuter, 2008).
Unresolved complaints may lead to a double deviation effect, depending on the
expectations complainants have of the role of the service providers (Karatepe and Ekiz, 2004).
Complainants may attempt to get even by engaging in negative WOM behaviour, or stop
buying and warning others not to shop there (Tronvoll, 2010), leading to disloyalty. Customers
with complaints get angrier when they are ignored, regret that their time was wasted, may feel
guilty about complaining, and may have to fight to make themselves heard (Varela-Neira et
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al., 2010). According to Boshoff (1997, p. 112), retail studies (Brown et al., 1996; Lewis and
Spyrakopoulos, 2001) have shown that more than 70 per cent of customers who complain can
be persuaded to continue shopping with the offending retailer, provided that some effort is
made to recover.
The majority of the customer dissatisfaction and consumer complaint literature has
studied why and how consumers respond to dissatisfaction with goods. Apart from the work
done by Andreassen (1999, 2000), Sousa and Voss (2009) and Morrisson and Huppertz
(2010), less attention has been devoted to the effects of service recovery on consumer
satisfaction and customer loyalty. Moreover, little is known about which strategies to employ
or how these strategies interact to influence customer perceptions and attitudes, especially in a
services environment. Thus, this paper aims to contribute to a growing body of service
recovery knowledge by examining the relationship between service recovery, consumer
satisfaction and loyalty, in addition to its well-accepted role as a relationship-enhancing tool,
in a business to business logistics services environment. The following hypotheses will be
tested:
H1. Service recovery has a positive effect on customer loyalty.
H2. Communication has a positive effect on customer loyalty.
H3. Service recovery has a positive effect on customer satisfaction.
H4. Customer satisfaction and service recovery have a positive effect on loyalty behaviour.
Literature review and conceptual framework
Service recovery
In recent years, extant literature has devoted efforts to service recovery. Contributions
include both theoretical modelling and empirical assessments. Morrisson and Huppertz (2010),
for example, extend research on customer loyalty status, external equity, and satisfaction with
service recovery. Johnston (1998) and Davidow (2003), on the other hand, have offered fairly
extensive reviews of service recovery’s multi-dimensional nature. Furthermore, Bhandari et al.
(2007) offer a multi-dimensional approach to evaluating service recovery, suggesting that
managing service recovery should be undertaken in a similar fashion to managing any service,
and thus managers need to understand customers’ recovery expectations. Others have
modelled both the antecedents (Seawright et al., 2008; Swanson and Kelley, 2001) and the
outcomes of service recovery (Andreassen, 1999; Levesque and McDougall, 2000; Bougie et
al., 2003) from a theoretical perspective (McColl-Kennedy and Sparks, 2003) and an empirical
perspective (McCollough et al., 2000). These studies analysed service recovery from a variety
of different angles, including organizational responses to service recovery (Davidow, 2003),
the relationship between satisfaction with service recovery and cumulative satisfaction
(McCollough et al., 2000), why certain people do not complain (Stephens and Gwinner, 1998),
the influence of the competitive environment on service firms’ recovery efforts (Estelami,
2000), the mediating role of anger in the relationship between service encounter dissatisfaction
and customers’ behavioral intentions (Bougie et al., 2003), the role of fairness theory, equity
theory and justice (de Ruyter and Wetzels, 2000; McColl-Kennedy and Sparks, 2003), the
relationship between service-recovery perceptions of justice (Saxby et al., 2000; Blodgett et
al., 2001), and the impact of relationship factors on satisfaction with service performance after
recovery (Hess et al., 2003). A common theme in all service recovery articles is that customers
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must be satisfied with the firm’s recovery efforts (Tax et al., 1998). If not, many negative
outcomes will result, including lost sales, negative WOM and defections (Andreassen, 1999;
McCollough et al., 2000; Tronvoll, 2010).
According to Sheth et al. (2000), service recovery refers to actions taken by a service
provider in an attempt to resolve the problem that caused a service failure. Effective service
recovery results in complainant satisfaction and recovery (Karatepe and Ekiz, 2004; Bolton,
1998; Ndubisi and Ling, 2005). A growing number of researchers have identified service
recovery as a rather neglected aspect of service marketing and one that warrants much greater
attention (Andreassen, 1999; Tax et al., 1998; Kim et al., 2003). The capacity to effectively
recovery from failures is a key responsibility of the operations function (Miller et al., 2000;
Prajogo, 2006; Roth and Menor, 2003).
Specifically, understanding the impact of service recovery on customer loyalty has
important implications for the design of the service delivery and recovery systems (Miller et
al., 2000), for example, determining how much to invest in delivering reliable service (i.e.
problem prevention) vis-a`-vis providing superior recovery when problems occur
(Parasuraman, 2006).
The need for a systematic approach for dealing with customer dissatisfaction and
complaints is implied in the definition of planned service recovery given by Bell and
Luddington (2006): “a thought-out, planned, process for returning aggrieved customers to a
state of satisfaction with the organisation after a service or product has failed to live up to
expectations.” Service recovery has an outcome dimension (Duffy et al., 2006), which is
“what” the customer actually receives as part of the firm’s efforts to recover, whereas the
process dimension of service recovery is concerned with “how” recovery is achieved. Bunker
and Bradley (2007) and Duffy et al. (2006) suggest that the outcome dimension is more
important when the original service is delivered, but the importance of the process dimension
is accentuated in service recovery. However, this may depend on the service being looked at.
According to Kau and Loh (2006), service recovery involves interaction between a service
provider and a customer, a shortfall in the provision of the original service, a response on the
part of the provider to the service shortfall, and a desired result, to turn a dissatisfied customer
into a satisfied one. A good service recovery system will also detect and solve problems,
prevent dissatisfaction, and be designed to encourage complaints.
In seeking redress, if a company creates a failure situation and then does not recover
effectively, customers will be especially negative because of the “double deviation” of two
failures in a row (McCollough et al., 2000; Magnini and Ford, 2004). In addition, service
recovery may be seen as critical for customer satisfaction and evolution of a firm’s quality
performance. Spreng et al. (1995) found that service recovery performance influenced overall
satisfaction and behavioural intentions such as WOM communications and repurchase and
likelihood to repurchase when the customer’s complaints were dealt with satisfactorily.
Further evidence of satisfactory problem resolution resulting in enhanced repurchase
intentions means that strong service recovery may enhance customer loyalty, a conclusion
supported by McCollough et al. (2000).
Satisfaction and loyalty
Loyalty and satisfaction are related, although also clearly distinct. Morrisson and
Huppertz (2010) and Sousa and Voss (2009), in their studies, consider several conceptual
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bases for this distinction, but, in general, higher satisfaction has been proposed to be related to
higher loyalty. As has been hypothesized and borne out in the marketing literature (Morgan
and Hunt, 1994; Singh and Sirdeshmukh, 2000; Sirdeshmukh et al., 2002; Weun et al., 2004;
Pina e Cunha et al., 2009), trust is logically and experientially a critical variable in
relationships. Those who are not willing to trust a vendor in a competitive marketplace are
unlikely to be loyal. The importance of trust in explaining loyalty is also supported by
Chaudhuri and Holbrook (2001), Singh and Sirdeshmukh (2000), Sirdeshmukh et al. (2002)
and Rod and Ashill (2010).
Trust is sometimes conceived of, as pointed out by Rod and Ashill (2010), as having two
components: performance or credibility trust and benevolence trust. In a business-to-business
context, Rod and Ashill found strong effects for credibility trust on relationship commitment
but not for benevolence trust. He argued that this was because businesses base their purchase
and selling decisions much more on performance issues. Clearly, performance or credibility
trust is important in business-to-consumer relationships as well. Other authors have also
suggested the existence of an effect for credibility trust on loyalty (Chaudhuri and Holbrook,
2001; Morrisson and Huppertz, 2010). A schematic representation of the conceptual
framework used to operationalize the research questions in our study is shown (Fig. 1).
Fig. 1. A conceptual framework
Conflict handling
Conflict handling refers to a supplier’s ability to avoid potential conflicts, solve manifest
conflicts before they create problems, and discuss solutions openly when problems do arise
(Michel et al., 2009). How well the conflict and dissatisfaction is handled determines whether
the outcome is loyalty, “exit”, i.e. withdraw from the relationship or “voice”, i.e. attempt to
repair or improve the relationship through communication of the complaint, grievance or
proposal for change (Colgate and Norris, 2001). Customer loyalty has generally been
described as occurring when customers repeatedly purchase a good or service over time, or
have a favorable attitude towards a good/service, or company, and is crucial to the success of
business organizations (Oh, 2006; Ndubisi and Ling, 2005; Augusto de Matos et al., 2009).
According to Thwaites and Williams (2006), attracting new customers costs five times more
than retaining existing customers, and a customer who has had a conflict resolved by a
company will tell about five people. Dissatisfied customers may tell ten to 20 people about
their bad experience (Thwaites and Williams, 2006; Reichheld, 2003; Sousa and Voss, 2009;
Morrisson and Huppertz, 2010). Mistakes, failures and conflicts are frequent occurrences in
service encounters (Babakus et al., 2003); resolving conflicts turns dissatisfied customers into
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satisfied loyal ones. Effective service recovery leads to complainant’s satisfaction and loyalty
(Oh, 2006). The likelihood of these behaviours in individual cases depends on the degree of
prior satisfaction with the relationship, the magnitude of the customer’s investment in the
relationship, and an evaluation of the alternatives available. Ndubisi and Ling (2005) found a
significant relationship between conflict handling and customer loyalty, indirectly through
trust and perceived relationship quality. The ability of a product or service provider to handle
conflict well also directly influences customer loyalty.
Communication
According to Ball et al. (2004), communication may refer to written communications
such as personalized letters, direct mail, web site interactions, other machine-mediated
interactions, and e-mail, as well as in-person communication with service personnel before,
during and after service transactions. In these forms of communication, “good” is defined as
helpful, positive, timely, useful, easy and pleasant (Ball et al., 2004; Michel and Meuter,
2008). The service provider, in short, provides information in such a way that the customer
personally benefits with a minimum of effort necessary to decode the communication and
determine its utility. Such communication is often personalized or delivered in a person-toperson format such as WOM. WOM refers to the informal communication between consumers
about the characteristics of a business or a product. WOM provides consumers with
information about a firm that assists them in deciding whether they should patronize that firm
(Gro¨nroos, 1990; Hocutt et al., 2006). Blodgett et al. (2001) confirmed that interactional
justice had large impact on WOM intentions. As such, satisfaction with service recovery
should encourage positive WOM communication. Furthermore, Michel and Meuter (2008) and
Fundin and Bergman (2003) explicitly consider the construct “customer dialogue” as a twoway means of communication, which is a useful way to conceptualize communication. In
general, good communication should affect all aspects of the relationship, satisfaction and
loyalty. Direct impacts from communication on satisfaction and loyalty were therefore
considered (Halstead, 2002). This is an approach in which customer dialogue is seen as an
endogenous variable that is explained by customer satisfaction.
Customer satisfaction
Satisfaction is the consumer’s fulfillment response (Andreassen, 2000). It is a judgment
that a product or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfillment, and includes levels of under or over
fulfillment (Tronvoll, 2010). From the above definitions, it is understood that satisfaction
relates to a subjective evaluation of emotions. Satisfaction occurs as a function of
disconfirmation and relative output to input. The end-result is a positive or negative feeling of
fulfillment. Satisfaction can therefore be considered the consumer’s evaluation of the product
or service received. The importance of such customer evaluations comes from the impact that
satisfaction is posited to have on consumer behaviours such as loyalty. Independent of
theoretical platform, it has become a truism today that service quality is key to customer
satisfaction (Bae Suk et al., 2009). However, few if any companies manage to deliver services
of expected quality all the time, resulting in negative disconfirmation of expectations or the
perception of inequity. Companies may respond to the service failure independent of customer
reactions or as a direct function of customer complaints (Breitsohl et al., 2010). Service
recovery refers to the actions a supplier takes to seek out dissatisfaction and in response to
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poor service quality, i.e. service failure (Andreassen, 2000). In the literature, the construct of
loyalty is divided into behavioural, cognitive and affective elements (Augusto de Matos et al.,
2009). Behavioural loyalty is the purchase behaviour actually displayed by the customer;
cognitive loyalty relates to the intentions of future behaviour expressed by the customer; and
affective loyalty defines the attitude of the customer to the company.
Finally, satisfaction is only of value to firms if it elicits some kind of positive financial
outcome. The service management literature suggests that profitability and growth are largely
determined by loyalty, and that behavioural loyalty itself is a direct result of customer
satisfaction. In each reporting period, a firm’s market share comes from three sources. First,
those customers who switch to the company from other firms; second, new customers to the
market who choose the company for their initial purchase; and, third, those customers retained
by the company from the previous time period (Morrisson and Huppertz, 2010). Service
recovery also facilitates the tracking of failures and the development of databases, to gain
insight into failures in order to deal with them and try to prevent them from happening again.
Other advantages of a good service recovery system are: increased opportunities for crossselling to retained customers (Bae Suk et al., 2009), the reduction of perceived risk for new
customers, and enhancement of company image for both its employees and customers. Service
failure is determined by elements such as the nature of the service encounter, the cause of the
problem, and the psychographics of the individuals involved (Du et al., 2010). It is defined
from the customers’ perspective because what a company needs to recover from is
dissatisfaction or problems that a customer perceives in relation to a service or a service
provider, regardless of the cause.
Customer loyalty
A common approach in defining customer loyalty is to distinguish between a consumer’s
behavioural loyalty and attitudinal loyalty (Parasuraman et al., 2005; Chaudhuri and Holbrook,
2001). Behavioural loyalty is expressed as repeated transactions (or percentage of total
transactions in the category, or total expenditures in the category) and can sometimes be
measured quite simply with observational techniques. Attitudinal loyalty is often defined as
positive affect toward both continuance of the relationship and the desire to remain in the
relationship, and is sometimes defined as equivalent to relationship commitment (Rod and
Ashill, 2010; Bugg Holloway et al., 2009). Attitudinal loyalty is measured by questionnaire
methods.
Behavioural loyalty is highly prized, because it means sales. Attitudinal loyalty is also
highly prized, because behavioural and attitudinal loyalty are highly intertwined: repeated
purchases lead to positive affect, which leads to conative loyalty, i.e. high-levels of
involvement and intention to continue repurchasing (Oliver et al., 1997; Turner and Wilson,
2006). We may consider both affective and conative loyalty to be kinds of attitudinal loyalty.
Strong attitudinal loyalty makes customers more resistant to attempts by other marketers to
steal them away (Boshoff, 2005) and more resistant to counter-persuasion or to searching for
alternatives.
Customer loyalty is critical to conducting business in today’s competitive marketplace,
and the LSP setting is no exception. Researchers argue that there must be a strong attitudinal
commitment to a brand for true loyalty to exist (Reichheld, 1996). This is seen as taking the
form of a consistently favourable set of stated beliefs towards the brand purchased. Such
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attitudes may be measured by asking people how much they like the brand, feel committed to
it, will recommend it to others, and have positive beliefs and feelings about it – relative to
competing brands. The strength of these attitudes is the key predictor of a brand’s purchase
and repeat patronage. In other words, loyalty depicts the extent to which a customer regards
him/herself as loyal, the customer’s willingness to recommend the LSP to others, and his/her
intention to continue to use the LSP in the future.
Oliver et al. (1997) define customer loyalty as:
A deeply held commitment to re-buy or re-patronize a preferred product/service
consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing
despite situational influences and marketing efforts having the potential to cause switching
behaviour.
Turner and Wilson (2006) have shown that attitudinally loyal customers are much less
susceptible to negative information about the brand than non-loyal customers. Also, when
loyalty to a brand increases, the revenue stream from loyal customers becomes more
predictable and can become considerable over time (Augusto de Matos et al., 2009).
Realistically, firms cannot completely eliminate the possibility of service failures (Weun et al.,
2004).
However, what separates successful firms from others may be the manner in which the
firms recover from service failure. Considerable evidence indicates that recovering effectively
from service failures contributes to positive customer evaluations of firms. Responding
effectively to consumer complaints can have a dramatic impact on repatronage intentions and
the spread of WOM (Swanson and Kelley, 2001; Halstead, 2002). Consequently, conflict
handling has been recognized as a critical task for service managers.
Methodology
The importance of companies investigating the causes of service failure and developing
recovery strategies that meet customer expectations of how the companies should handle such
problems is emphasized in extant literature. The questionnaire used in the study was designed
to capture the items necessary to address the research hypotheses, thus the customers’ feelings,
beliefs and attitudes about how the service failures they encountered were handled by the
LSPs. The questions focused on issues like: what should the content of service recovery be?
What does the customer expect a service firm to do to deal with service problems? Do
customer expectations for service recovery include: receiving an apology for the fact that the
customer is inconvenienced? Being offered a “fair fix” for the problem? Being treated in a
way that shows that the company cares about solving the problem encountered by customers
in service delivery system, and about the customer’s inconvenience? And being offered valueadded atonement for the inconvenience?
A pilot version of the survey instrument was designed and tested for ambiguities and
comprehension. Various changes were then incorporated into the final version. The final
questionnaire consisted of three sections. The first section contained questions regarding
demographic characteristics of the respondents such as gender, age, education and gross
income per month. In the second section, respondents were asked to recall an unsatisfactory
purchase experience within the last 12 months. They were asked about the service and to
specify any complaint actions they had taken in response to their dissatisfaction. A five-point
Likert scale ranging from “strongly agrees” to “strongly disagree” was adopted for questions
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regarding service recovery, communication, conflict handling, customer satisfaction and
customer loyalty. Structured and unstructured questions were filled in by the respondents
selected to participate in the study. A questionnaire was used because questionnaires cover a
large number of respondents in a relatively short time and reliable data can be generated since
the questions asked can be answered at the respondents’ convenience.
Data collection
A systematic sampling procedure was employed to ensure that the sample included
different demographic and socio-economic groups. The survey was carried out online using
LinkedIn group - Logistics Professional. It encompasses more than 5000 members from
diverse industry. The people surveyed are logistics and supply chain professional ranging from
junior to senior level workers and managers. 1500 respondents were selected from the group
and online survey link were send via emails. Out of 470 filled questionnaire returned, 255
were finally considered for further analysis, and rest of the questionnaire were rejected as they
were incomplete.
Data analysis
After the data was collected, it was reviewed by the authors to ensure that every question
was answered. The data gathered from the customer survey were entered into a database and
then analysed using the Statistical Package for the Social Sciences (SPSS). Validity and
reliability tests were conducted, and the data from the reliable instruments was entered in the
SPSS package. Frequencies and percentages were used to compare the responses. Factor
analysis and Pearson’s correlation coefficient were used to test relationships between the
variables, and to test the research objectives against the relationships between the variables.
Regression analysis was used to identify strong predictors of customer loyalty, using both
behavioural and attitudinal variables, and to establish the contribution.
Reliability estimates. Reliability was assessed by Cronbach’s α, and all scales showed
values above 0.60: with customer loyalty at 0.867; customer satisfaction 0.689; service
recovery 0.753; communication 0.643; and conflict handling at 0.601. Since the reliability
estimates exceeded 0.60, the lower limit of acceptability, this suggests a high-level of
reliability. The internal consistency reliability of the measures was analysed using Cronbach’s
α coefficients. Regression analysis was used to test for relationships (Table I).
Findings
Service
recovery
Service recovery
Communication
Satisfaction
Conflict handling
Customer loyalty
Regression
1
0.713**
0.674 (**)
0.596 (**)
0.655 (**}
Correlations
Communication Satisfaction
1
0.609(**)
0.621 (**)
0.734 (**}
1
0.656 (**)
0.537 (**)
Conflict
handling
1
0.566 (**)
1
Model summary
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Model
R
1
0.698(a)
Model
Sum
squares
1,476.165
943.851
2420.016
Regression
Residual
Total
R2
0.654
Anova (b)
of df
4
25
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Adjusted R
0.587
Mean
sequence
369.041
37.754
SE of
estimate
6.301
the
F
Sig.
10.436
0.000
Coefficients
β
– 0.054
0.134
0.646
-0.177
0.194
Model
B
SE
T
Sig.
Content
-0.445
8.327
0.902
Tot. serv. recover 0.301
0.422
0.679
0.455
Comm.
1.165
0.322
3.314
0.005
Total sat
0.298
0.325
-0.043
0.654
Conflict handling 0.399
0.476
1.122
0.344
Dependent
loyalty
variable
H1. Communication has a positive effect on service recovery.
The findings indicated that communication has a significant relationship with service
recovery at r = 0.713 **; p-value < 0.01.
H2. Customer satisfaction and service recovery have a positive effect on loyalty
behaviour.
Customer satisfaction has a significant relationship with service recovery at r = 0.674**;
p-value < 0.01 and communication at r = 0.656**; p-value < 0.01.
H3. Service recovery, communication and conflict handling have a positive effect on
customer loyalty.
The findings indicated that customer loyalty has a significant relationship with service
recovery at r = 0.655**, p-value < 0.01 and communication at r = 0.734**, p-value < 0.01 and
customer satisfaction r = 0. 537 **, p-value < 0.01 and conflict handling at r = 0. 566 * *, pvalue < 0.01.
The R2 was 0. 654 (65.4 per cent); adjusted R2 was 0. 587 (59 per cent). This means that
the findings can be applied to the population in general, since the R2 shrinkage was 5 per cent.
Discussion
Customer satisfaction has a significant relationship with service recovery
Customer satisfaction has a significant relationship with service recovery, at r = 0.
674**; p-value, 0.01. Customer satisfaction creates a good impression on the customer such
that, even when there is service failure, the customer can patiently seek redress and go through
the recovery with the hope of having his/her expectations met. The findings indicated that
customer loyalty has a significant relationship with service recovery, at r = 0.655**, p-value <
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0.01. The LSPs ensure that when something goes wrong, leading to dissatisfaction, there are
mechanisms in place to recover. This is in line with the multi-dimensional approach to
evaluating service recovery offered by Bhandari et al. (2007). Thus, managing service
recovery should be undertaken in a similar fashion to managing any service, and managers
need to understand the customer’s recovery expectations. The LSPs provide customer care
desks where complaints can be voiced in case of any dissatisfaction. Some LSPs place
questionnaires at the counter for customers to submit views and queries, and these are used to
help the LSPs identify complaints. Alternatively, customers may express their disappointment
to the employees at the front desk while other staff move around to ensure that customer
expectations are met. This enables efficient service recovery and an opportunity for the LSP to
establish how its customers complain. It can also serve as a stimulus for action to ensure that
situations are recovered in the most positive way. These service recovery actions that seek out
dissatisfaction and that are launched in response to poor service quality, i.e. service failure, are
in line with those suggested by Andreassen (2000).
Communication has a positive effect on service recovery
The empirical results show that communication and explanation are the dimensions of
importance to consumers when reporting a service failure to a service firm. This finding is
consistent with the findings of McCollough et al. (2000), de Ruyter and Wetzels (2000) and
others, that the communication of the service provider can positively influence customer
evaluations. The findings also indicated that communication has a significant relationship with
service recovery at r = 0.713**; p-value < 0.01.This means that communication is highly
correlated with service recovery. Successfully recovered customers recommend the company
to others or demonstrate a strong propensity to share positive information about their
experience with their family and friends. Previous research has found that dissatisfied
customers choose to seek redress, engage in negative WOM behaviour, or exit, based on the
perceived likelihood of successful redress, their attitude toward complaining, the level of
product importance, and whether they perceive the problem to be stable or to have been
controllable (Andreassen, 2000; Boshoff, 2005). Findings show that a very good service
recovery has a strong impact on WOM (with a high significance value, at 73 per cent), and
less impact on satisfaction (65 per cent) and repurchase intention or loyalty (55 per cent),
which is also in agreement with Stauss and Schoeler (2004).
LSPs are interested in hearing from their customers regarding unmet expectations.
Dissatisfied customers, in particular, are often encouraged to communicate their complaints to
company service representatives over the telephone, in writing or through direct personal
contact with the customers. Successful service recovery can enhance customers’ perceptions
of the quality of the service and the organization, lead to positive WOM communication,
enhance customer satisfaction, and build customer relationships and customer loyalty.
However, the degree of success may depend on the type of service, the type of failure, and the
speed of response. In the case of LSPs, where complaints are responded to quickly, customers
appreciate this. This means that complaints are handled according to the customers’
expectations, or at least satisfactorily, that customers are likely to make repurchases, and that
they will tell people about the successful recovery. This is because people like to reciprocate
or return the favour, for example, by commenting more positively about the LSP, when
something nice has been done for them.
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However, there are times when LSP staff spend time talking to their colleagues instead
of responding to customer queries, and that annoys the customers, who wait patiently but
experience further disappointment. In such cases, some customers may opt to discontinue
seeking the services of this particular LSP, especially when they have better alternatives.
Therefore, some disappointed customers do not complain to staff but complain instead to
friends and family, and this means that the service recovery process is not successful, leading
to disloyalty. In a case like this, the LSP does not detect its mistakes/errors, and therefore may
not recover from the failed service situation, and the customer just goes away unhappy. The
LSP loses valuable customers as well as missing out on important information that could help
ensure that future products/services live up to customer needs and expectations.
Service recovery has a positive effect on customer loyalty
The findings indicated that customer loyalty has a significant relationship with service
recovery, at r = 0. 655**, p-value < 0.01. This implies that successfully recovered customers
engage in positive WOM about the LSP, recommend prospective customers, friends and
families to the LSP for the services on offer, and become loyal customers. This is important
for the LSP because the potential customers believe in third party information about the
services, especially when the customers have had a good experience. This means that
satisfaction with service recovery may color subsequent future repurchase intention both
directly and indirectly. The findings show that when it comes to service recovery efforts,
customers must be satisfied with the firm’s efforts (Tax et al., 1998). If not, many negative
outcomes will result, including lost sales, negative WOM and defections (Andreassen, 1999;
McCollough et al., 2000). Hence, a central theme in service recovery is customer satisfaction.
Service recovery must contribute to, and enhance, customer satisfaction. This view is also
supported by Boshoff (2005).
It is acknowledged, however, that the relationships are not always linear (Augusto de
Matos et al., 2009) particularly in a highly competitive industry with limited differentiation
potential and low switching costs (Morrisson and Huppertz, 2010). That notwithstanding, a
customer who is dissatisfied with the initial service encounter experiences some degree of
negative affect, e.g. anger, disgust, contempt. For customers who voice their dissatisfaction to
the LSP, initial negative affect is believed to have an impact on how they judge satisfaction
with service recovery as well as on their future repurchase intention. In this respect, both
cognitive and affective elements are assumed to influence future repurchase intention, i.e.
whether customers exit or remain. On the other hand, the negative affect triggered by the
initial service failure may have a negative impact on the satisfaction judgment of service
recovery, due to the customer being in a negative state of mind, and on future repurchase
intentions. This is the reason why LSPs must work towards successful recovery to maintain a
positive image and make a good impression on customers through positive WOM
recommendations (de Ruyter et al., 2000; Boshoff, 2005).
Conclusion and implications
The effects of service recovery on customer satisfaction and loyalty in LSPs were
investigated in this study. In other words, the impact of service recovery on consumer
evaluations of service delivery was determined. The levels of significance of communication
and customer loyalty were very high for those respondents who were satisfied with the service
recovery. The importance of communication in service recovery, which positively impacts
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customer loyalty, was confirmed. Customer satisfaction has a positive impact on service
recovery, leading to a high-level of customer loyalty through positive WOM behaviour and
repurchase intention. To improve customer loyalty, LSP managers need policies and systems
for service recovery with improved communication. If failure occurs in a service setting, it is
important that steps be taken to pacify the dissatisfied customers. If this is not done, it is
highly likely that they will either exit or engage in negative WOM to the detriment of the
service provider.
The end-result could be lost sales and profits (Johnston and Michel, 2008). On the other
hand, consumers who receive fair service recovery are more likely to be loyal to the service
provider and even engage in positive WOM behaviour, thus spreading goodwill for the service
provider.
Services, by nature, have unique characteristics. Any failure of service should be
handled quickly to ensure customer satisfaction and efficient handling of customer complaints.
Employees should receive training to improve on interpersonal relations in an aim to create an
understanding between the customers and the LSP. LSP managers need to put a lot of
emphasis on equipping LSP staff with effective communication skills, to provide timely,
adequate messages, and to improve on interpersonal skills in their relations with customers.
Quick and timely service recovery is important for LSPs in order to create loyal customers and
to handle possible conflicts between employees and customers. To achieve this and ensure
customer satisfaction, LSPs should proactively put service recovery systems in place in their
customer care centres. Through having conceptualized, empirically examined and extended
the knowledge on the effects of service recovery on consumer satisfaction and customer
loyalty in LSPs, it is hoped that this study will contribute to fostering much-needed
prescriptive work in this area.
An implication of current study is that, when managing complaints related to customer
dissatisfaction, the approaches undertaken by service quality leaders should aim to provide just
resolutions/fairness in service recovery. Consumer complaints give disappointed customers a
chance to vent their unhappiness (Nyer, 2000). Alicke et al. and Tronvoll (2010) add that
complaining is a way to vent negative emotions. Thus, complaints are a very useful form of
consumer-initiated market information that can be used to make strategic and tactful decisions.
This view is similar to that of Nyer (2000).
This study also provides insight into a company’s customer relationship management
practices (Zineldin, 2005; Osarenkhoe, 2009; Osarenkhoe and Bennani, 2007; Varela-Neira et
al., 2010; Breitsohl et al., 2010; Tronvoll, 2010). First, in order to encourage customers to
complain directly, a company needs to enhance the perception of a possible outcome if
complained to. Several operational practices can be taken into consideration, such as
establishing warranty and guarantee system for a product or service, improving the function of
the customer service center, and dealing openly with customers’ complaints by showing what
has been done and achieved in specific cases, etc. Second, enhancing perceived value of
complaint can also contribute to enhancing customers’ direct complaints in several ways, such
as lowering costs of complaining by simplifying the process, and enhancing the perceived
utility of complaining by dissatisfied customers via improving service quality, making specific
compensation known to the public, or setting up a complaining customer reward system, etc.
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A Study on Role of a Salesman in Consumer Buying of a Small Commercial
Vehicle in Pune
Dr Sadashiv. P. Kalyankar
Associate Professor
ASM’S Institute of Business Management
And Research
Chinchwad Pune Maharashtra India 411018
Email:Spkalyankar@Asmedu.Org
Babapeer .S .Hamgi
Asst Professor
ASM’S Institute of Business Management
And Research
Chinchwad Pune Maharashtra India 411018
Email:Bshamgi@Asmedu.Org
ABSTRACT:
A small commercial vehicle ( SCV ) is an excellent self employment opportunity
for an un-employed youth to earn his livelihood. There are many vehicle manufacturers
in India who are catering to this segment and are selling their vehicles through their
multiple dealership network. The customer decides to purchase the SCV on various
factors such as product quality ,price etc. and his decision is influenced by company
advertising, sales promotional activities ,the influence of salesman etc
.The objective of the study is to find out 1) Influence of salesman on buying
decision 2 ) Role played by salesman in buying decision process & 3) Brand preference
of customer in Pune.The research methodology used is simple descriptive nature based
on data collected from 100 customers by personal interview and analyzed by simple
tabulation method.
The findings of the study are 1) The salesman influences purchase decision and
brand decision in 30% cases especially when the buyer is first time buyer. 2 )The
salesman plays multiple role of a friend. Advisor,facilitator etc. 3 )The most preferred
brands are of TATA, & MAHINDRA .4 ) The study also reveled that only 8% customers
visited the website of company for collecting information.
The limitations of the study are it is conducted on a small sample and in Pune city
only
Key Words-brands, role, salesman, small commercial vehicles, etc.
Introduction
Atomobile Industry Domestic Sales Trends
Automobile industry is a basic industry for any economy and is responsible for
providing large employment directly and indirectly to the people of the country. The
automobile industry is both product manufacturing industry as well as sevice industry. The
automobile industry caters to various transport needs of the people in terms of passenger
carrying and goods carrying. It is divided into various segments from 2 wheelers, 3 wheelers,
4 wheelers etc. Following is the trend of sales of the automobile industry in India for last few
years.
Category
Passenger Vehicles
Commercial Vehicles
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2009-10
19,51,333
5,32,721
2010-11
25,01,542
6,84,905
2011-12
26,29,839
8,09,499
2012-13
26,65,015
7,93,211
2013-14
25,03,509
6,32,851
2014-15
26,01,111
6,14,961
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Category
Three Wheelers
Two Wheelers
Grand Total
2009-10
4,40,392
93,70,951
1,22,95,397
2010-11
5,26,024
1,17,68,910
1,54,81,381
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2011-12
5,13,281
1,34,09,150
1,73,61,769
2012-13
5,38,290
1,37,97,185
1,77,93,701
2013-14
4,80,085
1,48,06,778
1,84,23,223
2014-15
5,31,927
1,60,04,581
1,97,52,580
The overall Commercial Vehicles segment registered a de-growth of (-) 2.83 percent in
April-March 2015 as compared to same period last year. Medium & Heavy Commercial
Vehicles (M&HCVs) grew by 16.02 percent and Light Commercial Vehicles declined by (-)
11.57 percent.
Domestic Market Share for 2014-15
Passenger Vehicles
13
Commercial Vehicles
3
Three Wheelers
3
Two Wheelers
81
Grand Total
100
In India the Small Commercial Vehicle (SCV) segment was created by the launch of
Tata Ace in May 2005. This category can roughly be characterized as sub 1000cc engine and
less than 3.5 tonnes of weight. This segment competes in the prevailing three-wheeler segment
on the basis of cost, durability and new pollution control laws.
Mini trucks are suitable for short intra-city deliveries, plying on narrow village roads,
long highway hauls carrying small bulky loads or even heavy cargo. Before the coming of
mini trucks to India, this segment was being catered by three-wheelers. With the Supreme
Court of India's ban of overloading of cargo vehicles and restrictions on the entry of heavy
commercial vehicles into city, the necessity of an intermediate segment was observed. Tata
became the frontrunner to fill the gap by launching the first mini truck of India Tata Ace.
With the immense popularity of Tata Ace, many other manufacturers from three-wheeler
segment or from Light Commercial Vehicle segment jumped into the SCV segment.
SCV -Mini Trucks in India—The major playersd are Tata Motors—Tata ACE Range ,
Mahindra----Maxximo Range, Ashok Leyland—Dost Range , Piggiao---Ape Mini Truck
Range
Mahindra & Mahindra pips Tata Motors in small commercial vehicle sales
Mahindra & Mahindra has sped past Tata Motors to become largest small commercial
vehicle seller in the country, led by its pickup trucks.
MUMBAI:As rivals open new flanks to nibble away market share in its bastions,
Mahindra & Mahindra, India's largest utility vehicle maker, is winning unexpectedly in the
small commercial vehicle space (SCV), a space where Tata Motors, was till recently, the
undisputed leader. Mahindra & Mahindra overtook Tata Motors as the largest mini-truck
seller (0.5-3.5 tonne) in the country. Led by its pickup trucks, it has crossed a market share of
50% in SCV cargo space for the first time, with Tata Motors share almost falling to 36.55% in
the first six months of FY-16.Just 18 months back, Tata Motors was the segment leader with
48% share. The largest automobile company in revenues is challenged by Daimler and a
resurgent Ashok Leyland in the bigger truck space. Tata Motors is now facing a formidable
challenger in Mahindra in the small commercial vehicles The Indian small commercial vehicle
market is sub-segmented into the sub-2 tonne market, where Tata Ace is the undisputed leader
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with over 83% segment share, whereas from 2 tonne to 3.5 tonner is ruled by Mahindra with
its Bolero and Genio pick up trucks, where the manufacturer of Scorpio, enjoys close to 70%
segment share. M&M's surge in market share took place at a time when the overall segment
had declined 30% in three years to 3.08 lakh units (0.5-3.5 tonne - cargo space). The decline is
attributed to sluggish economic activity coupled with financiers shying away from taking
additional exposure on account of rising delinquencies. Tata Motors has a significant exposure
on financing, especially its captive arm which has led to a slide. This happened around the
time when M&M introduced new products such as Jeeto, enabling the utility vehicle and
tractor maker to emerge as a strong player. Post the launch of Jeeto, Mahindra has already
seen the sub-2 tonne segment share more than doubling to 23%, with newly launched Supro
slicing the sub-one tonne and pick ups, Mahindra & Mahindra is aiming to garner incremental
volumes and market share. The duel between Mahindra and Tata Motors is not new. Four
years back, Mahindra launched the maxximo mini-truck to take Ace head on. After the initial
burst the volumes slipped
Pravin Shah, chief executive and president for the automotive sector at Mahindra &
Mahindra told ET, " We are becoming a formidable player in the segment, Jeeto is still in its
initial phase and with the launch of Supro, we should surely aspire to increase the segment
share."
However, Tata Motors is not sitting still. Anticipating new competition, Tata Motors recently
launched Super Ace Mint and Ace-Mega to strengthen its position. The company is coming
out with dedicated small commercial vehicle outlets to have a focussed approach in the
segment and targeting customers through its new initiative Neev, which is focussing on the
rural
markets.
Taking the battle to the rival's stronghold, Tata Motors is also refreshing the existing portfolio
with new gen products, in the pick up space, a segment where M&M is very strong. The
company is planning to launch a new pick up truck - a challenger to Mahindra's Bolero pick up
trucks - this new product will replace Tata's 207 and promises better cargo carrying capacity.
There is a new Xenon as well, which will challenge the face lifted Genio.
When contacted Tata Motors spokesperson said the key (product) interventions in the market
and company has seen market share increase by 5% in the first month of national launch and
the company plans to ramp-up sales and further strengthen position in Small Pick-ups.
"We recognize the aggressive competition in the 2-3.5 tonne segment, and are readying
ourselves with the launch of new products and upgrades of existing ones, including those with
fully built applications, offering unmatched value for last mile connectivity, in both the
passenger
and
goods
carrying
space,"
the
spokesperson
added.
The duel between Mahindra and Tata Motors is not new. Four years back, Mahindra launched
the Maxximo mini-truck to take Ace head on. After the initial burst the volumes slipped.
With its pick-up trucks holding fort, M&M has yet again launched all new products in Jeeto
and Supro on an all new platform to target Ace family, aiming to offer better products - with
car like features, claiming better total cost of ownership (Mahindra claims savings of Rs 6000
per month for the user of Supro) over Ace.
The Consumer Buying Decision Process
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The purchase is only the visible part of a more complex decision process created by the
consumer for each buying decision he makes. But what happens before and after this
purchase? What are the factors influencing the choice of product purchased by the consumer?
Engel, Blackwell and Kollat have developed in 1968 a model of consumer buying
decision process in five steps: Problem/need recognition, information search, evaluation of
alternatives to meet this need, purchase decision and post-purchase behavior.
The salesmanship in automobile industry
The automobile salesperson is one of many sales professions. The automobile salesman
is a retail salesperson, who sells new and/or used cars. Unlike traditional retail sales, car sales
are sometimes negotiable.[1] Salesmen are employed by new car dealerships or used car
dealerships.
A salesman negotiates deals with private buyers and corporate buyers. An internet
salesman or manager may handle advertising and leads that come through the internet, or
distribute leads to floor salesmen. The fleet manager markets to corporate or institutional
customers who buy several vehicles at a time at a discounted, set price, and does not deal with
the general public. A closer is often a manager who assists in negotiation. The floor manager
sits in an office which usually has a sales board listing appointments and recent sales activity
by salesman. The salesman brings offers to the manager who can accept or make counter
offers. The manager makes decisions as to what final negotiated prices will make business
sense under current market conditions. With the advent of the internet and pricing tools the car
salesman job has changed. Dealers and consumers can find out what any car is selling for with
the click of a mouse. This has caused dealers to have to slim down profit margins to lure in
internet buyers who are looking for the best deal.[2]
Challenges in Sales & Marketing
Today all the manufacturers are operating on large scale and in professional manner
thereby , competiting with each other , this is resulted in similar products at similar price
levels posing a question mark before consumer as to be which product should be purchased .
In efforts to compete , most of the manufacturer are having multiple dealership for
selling small commercial Vehicle in major towns for better coverage of marketplace and
service to customer . today almost all dealerships are operating on 3S concept which mean
Sales , Service and Spare parts . This has lead to a choice to a customer to buy the same
model from any of the dealer and there by has increased the power of customer . In such a
situation the product remain the same ( TATA ACE ) and all other commercial terms and
conditions of sale . The manufacturer and dealer have to find out innovative ways to improve
the sale of a particular dealership .
The automobile dealership have to adopt the concept of effective service marketing and as
apart of service industry the role of the people –
Sales man become very important from the dealership point of view for achieving higher
sales volume.
The Sales team /sales men of the dealership can make all the difference inselling
vehicles to customers as compared to other competing dealership
Reason for Selecting a Topic --INCON - XI 2016
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A Study on role of A Salesman in consumer buying of a small commercial vehicle in
Pune
The commercial vehicle industry in India is declining , but the small commercial vehicle
industry which already has a share of 50% is expected to grow at CAGR of 13 % by 2020.
The small Commercial Vehcile Offers an excellent opportunity for an unemployed youth
to start his own business of transportation with a small initial investment of Rs.1 lac as
abundant vehicle finance is available.
In Such a situation, it is necessary for any automobile manufacturer and dealer to ensure
that an efficient and effective sales force is employed at all the dealership
Therefore, The study has been initiated to understand the roles of a salesman as persuade
by consumer in his purchase plan of a small commercial vehicle
Objectives of the Study
1
To study the role of a salesman in consumer buying decision at various stages for a SCV
.
2
To study the Brand preferences of the customers buying SCV.
3
To study the Usage Of Internet by buyers of SCV and the predominant mode of
communication used by the salesman .
Hypothesis
1)
The role played by sales man is significant in the consumer buying behaviorof a SCV.
2)
The Usage of Internet by customer buying SCV is still at intial stage .
Research Methodology
Research Design
Descriptive Research design is considered in the present study . Researcher ahs
collected the data from owner of the SCV from pune area by Personal Interview method with
the help of pre tested questionnaire to meet the study requirement.
Sample Size. Randomly selected ( 90 Customers ) who are already owning small
commercial vehicle
Scope of a Study
The scope of a study is limited to small commercial vehicle owners who are in PUNE
city .
Results / Observation
1)
The major SCV owners are in the age group of 26 – 40 Years evident from table no1 (
42 % of respondents )
2)
The Brand Preferences of the customer are in the following order TATA ACE 56 % ,
Ashok leyland – dost 22 % and piggiao- ape mini truck 20% as per table no 2
3)
The roles of a sales man is very important in all the stages of consumer buying behavior
right from the converting the desire / intention of starting a new business by purchasing
a small commercial vehicle and entering the transport industry as is clear from table no
3 that 67 % respondents said it is most important.
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4)
5)
6)
7)
8)
9)
10)
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The Majority of the respondent almost around 78 % said salesman is crucial in
evaluation stage as per table no 4 . They indicated that the salesman plays role of friend ,
mentor and guide in their decision of buying a SCV.
83 % of respondents said that salesmans help in getting finance is important. Asper
table no 5 given in Annxure.
As per table no 6 it appears that the salesman plays important role in customer deciding
about the dealership from where he will purchase. ( 57 % respondentds said so. )
About 69 % respondentd felt salesman helps them in their business matters ( Table no 7
)
About 50% respondents felt that the salesman can play helpful role in post purchase
service from the dealership. (Table no 8 ).
From table no no 9 it appears that majority salesmen still depend on traditional
communication mode of personal visits and telecalls ( 71 % respondents said so. )
The usage of internet is still in initial stage in the group of consumers who are potential
buyers for a small commercial vehicle , this may be due to the background of the
customer is of a middle class and the kind of industry which he is entering into .
Conclusion
1)
It Is concluded from the above study that the Sales man plays a vital role in purchase of
Small Commercial Vehicle as the sales man is playing very important role in
information collection , evaluation of the products , 2
2)
It is also Found that, TATA ACE is the no. 1 brand preferred in pune region followed by
DOST of ASHOK LEYLAND and MAXIMO of MAHINDRA ‘S.
3 ) The study reveled that the SCV are still not internet friendly / savvy .
4)
The few customers who use the internet to visit the website of the manufacturer and
finance company belong to the organized sector of the transport company.
Limitation of the Study.
1)
The Study was limited to the only PUNE region
2)
Though the purchase decision of the customer regarding the product is driven by the
brand of the product and the price , the selection of the dealership from where tp
purchase the vehicle is largely influenced by the role played by the sales man .
REFERENCES .
[1] Jobber, David, Geoff, Lancaster, 2003, Selling and Sales Management, London, Pearson
Education, p.444;
[2] Dr Lovreta Stipe, Dr Janièijeviã Neboj.a, Dr Petkoviã Goran, 2001, Sales and Sales
Management, Belgrade, Savremena Administracija, p.478-483;
[3] Dalrymmpple, Cron, DeCarlo, 2004, Sales management, Hoboken, Wiley, Eight edition,
p.537-549;
[4] Rolf E.Anderson, D.ozef F. Hear, Aaln. D. Bu., 2001, Professional Sales Management,
Belgrade, Grmeè- Privredni pregled, p.309-311;
[5] M.Futrell, Charles, 1998, Sales Management, Teamwork, Leadership and Technology,
The Dryen Press, p.635;
INCON - XI 2016
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[6]
[7]
[8]
[9]
E-ISSN – 2320-0065
BPP, Professional Post Graduate Dilpoma in Marketing, Managing marketing
performance, May 2004, p.45;
Damnjanoviã Vesna, Mr Krulj Darko, Cicvariã Slavica, May 2005, Creating the new
organizational consumer oriented structure, X International Scientific Meeting - SM
2005, Strategic management and systems for business decision support in the strategic
management, Palic, p.5;
Damnjanoviã Vesna, June 2005, Application of logframe matrix in organization the
sales department, YUPMA, Zlatibor, p.3;
Kotler, Philip, 20 May 2005, New Marketing and Sales Strategies and Tactics – How to
Compete Today?, Slovenia, Ljubljana.
ANNXURE I
Tables of Data Analysis
Table No 1 : Age wise distribution of SCV Customers
S.No Age Group (years) No.of Customer Percentage
1
18-25
20
22
2
26-40
38
42
3
41 and above
32
36
Total
90
Table No. 2 -Vehicle Model ownership of Customers
S.No
1
2
3
Total
Vehcle model
No.of Customer Percentage
TATA ACE
52
58
Mahindra Maxximo
18
20
Ashok Leyland
20
22
90
Table No. 3 : The Role of Salesman –Information ,Pre purchase
Role Of Sales Man - Information Pre Sales
S.No
1
2
3
4
5
Total
Response
No. Of Respondent Percentage
Very Improtant
58
67
Important
12
13
Neutral
5
6
Less Important
8
9
Not Important
7
8
90
Table No. 4 : Role of salesman-Evaluation
S.No Response
No. of Respondent Percentage
1
Very Improtant
42
47
2
Important
28
31
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S.No
3
4
5
Total
Response
Neutral
Less Important
Not Important
E-ISSN – 2320-0065
No. of Respondent Percentage
6
7
8
9
8
9
90
Table No. 5 : Role of salesman in arranging finance for vehicle
S.No Response
No. Of Respondent Percentage
1
Very Improtant
45
50
2
Important
30
33
3
Neutral
10
11
4
Less Important
2
29
5
Not Important
0
Total
90
Table No . 6 : Role of salesman in choice of dealership
S.No Response
No. Of Respondent Percentage
1
Very Improtant
50
56
2
Important
10
11
3
Neutral
20
22
4
Less Important
6
7
5
Not Important
4
4
Total
90
Table No. 7 : Role of salesman in Business guidance to customer
S.No Response
No. Of Respondent Percentage
1
Very Improtant
40
45
2
Important
22
24
3
Neutral
12
13
4
Less Important
9
10
5
Not Important
8
9
Total
90
Table No. 8 : Role of salesman in post purchase sevice from dealership
S.No Response
No. Of Respondent Percentage
1
Very Improtant
25
28
2
Important
20
22
3
Neutral
15
17
4
Less Important
20
22
5
Not Important
10
11
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90
Table No 9 : Role of salesman mode of communication with customer
S.No
1
2
3
4
Total
Predominant Mode of communication No. Of Respondent Percentage
Personal Visit
40
44
By telephone
15
17
Email
5
6
By whatsapp
30
33
90
Table No. 10 : Usage of internet by customers while pirchasing SCV
S.No Usage Pattern No. Of Customer Percentage
1
Many times
8
9
2
Some times
14
16
3
Not At All
68
76
Total
90
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Production And Price Trends In Indian Pulses
Dr. S.P. Kalyankar
ASM’s Institute of Business Management
Research Chinchwad Pune-19, India
spkalyankar@asmedu.org
Assist. Prof. Dilip M. Pawar
ASM’s Institute of Business Management
Research Chinchwad Pune-19, India
dilippawar@asmedu.org
ABSTRACT:
The area under pulses which witnessed a sharp price rise that forced the
government to undertake a massive anti hoarding drive has declined marginally. The
prices of Tur, Which is grown primarily in the kharif season, hit a record of Rs.200per
kg last month (i.e. Oct.2015) The output of pulses had dropped over 12 percent in 201415 from year 2013-14. Even against target of 3.67 Million tonne (MT) for kharif 201516, Tur output stood at only 2.61M.T.
In the present paper, attempt has been made to study the domestic production of
Major pulses over last five years, percentage share of each pulse in total production
during 2014-15. India’s export and import trade, destinations and movement of domestic
and international price in major pulses. Trade policy is also discussed. The paper is
based on secondary data from published sources of CACP. Simple tabular analysis is
done to meet the objective of study. Domestic production of gram is the highest followed
by Tur. Nepal, Canada, Israel and Korea are the major destinations for export while
Myanmar, Tanzania, Mozambique, Malawi, and Kenya for import of Tur (piseon peas).
Movement of domestic price and international price was upward since April 2012 till
date. All the pulses except gram (chick peas)
Keywords:Pulses, Production, Price, Tur
Introduction:
The term "pulse", as used by the United Nations' Food and Agricultural Organization
(FAO), is reserved for crops harvested solely for the dry seed. This excludes green beans and
green peas, which are considered vegetable crops. Also excluded are crops that are mainly
grown for oil extraction (oilseeds like soybeans and peanuts), and crops which are used
exclusively for sowing (clovers, alfalfa). However, in common use, these distinctions are not
clearly made, and many of the varieties so classified and given below are also used as
vegetables, with their beans in pods while young; cooked in whole cuisines; and sold for the
purpose; for example, black-eyed beans, lima beans and Toor or pigeon peas are thus eaten as
fresh green beans, or cooked as part of a meal.
The area under pulses which witnessed a sharp price rise that forced the government to
undertake a massive anti hoarding drive has declined marginally. The prices of Toor, Which is
grown primarily in the kharif season, hit a record of Rs.200per kg last month (i.e. Oct.2015)
The output of pulses had dropped over 12 percent in 2014-15 from year 2013-14. Even against
target of 3.67 Million tonne (MT) for kharif 2015-16, Tur output stood at only 2.61M.T. India
is the world's largest producer and the largest consumer of pulses. Pakistan, Canada, Burma,
Australia and the United States, in that order, are significant exporters and are India's most
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significant suppliers. Canada now accounts for approximately 35% of global pulse trade each
year. The global pulse market is estimated at 60 million tonnes.\
Importance of Pulses:
1.
Pulses are rich in proteins and found to be main source of protein to vegetarian people of
India.
2.
It is second important constituent of Indian diet after cereals.
3.
They can be grown on all types of soil and climatic conditions.
4.
They give ready cash to farmer.
5.
Pulses being legumes fix atmospheric nitrogen into the soil.
6.
They play important role in crop rotation, mixed and intercropping, as they help
maintaining the soil fertility.
7.
They add organic matter into the soil in the form of leaf mould.
8.
Pulses are generally not manured or require less manuring.
9.
They are helpful for checking the soil erosion as they have more leafy growth and close
spacing.
10. They supply additional fodder for cattle.
11. Some pulses are turned into soil as green manure crops.
12. Majority pulses crops are short durational so that second crop may be taken on same
land in a year.
13. They provide raw material to various industries.
Ex. Dal industry, Roasted grain industry, Papad industry etc.
Despite India being the largest producer [18.5 million tons] and processor of pulses in
the world also imports around 3.5 million tons annually on an average to meet its ever
increasing consumption needs of around 22.0 million tons. According to Indian Institute of
Pulses Research’s Vision document, India’s population is expected to touch 1.68 billion by
2030 and the pulse requirement for the year 2030 is projected at 32 million tons with
anticipated required annual growth rate of 4.2%. When already proven and demonstrated
technologies are available to increase the productivity of pulses there is immediate need to
launch a massive “Grow More Pulses Campaign” focused on motivating and providing
incentives for farmers.. Adequate financial and other resources must be committed for
research and development efforts exclusively for pulse-crops in proportion to currently
provided to cereals and cash crops. Since pulses are raised under rain-fed conditions the
development of drought tolerant varieties of pulses is a must to provide long-term solution
against adverse effects of recurrent droughts being witnessed in one or the other part of the
country every year.
The present study is undertaken with the following specific objectives
Objectives:
1
To examine the domestic production of major pulses in India and the percentage share of
each pulse in total production.
2.
To examine Price movement and compare the domestic and international prices in major
pulses.
3.
To study the India’s trade destination for major pulses.
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4.
To study the tariff schedule under import policy of pulses.
Research Methodology:
The present study is based on secondary data collected from published source through
internet. The simple tabular analysis is done to meet the objectives of the study. The period
covered in the present study is (4-5) years accordingly availability of data. The trade
destination of major pulses are considered for the year 2013-14 only while India’s export and
import covered three years 2012-13 to 2014-15 April to December 2014 . The movement of
domestic as well as international price is studied for peas, chick peas (gram) Mug Urid, lentils
(masoor) and pigeon, peas (Tur) From April 2012 to Feb-2015. The Price in Rs/ quintal is
considered to work out the price movement. Tabular as well as graphical presentation is done
in the study .trade policy is as per government notifications.
Results.
The information about the production of pulses, share of each pulse in total production
during last three years given in Table 1.
Table No. 1 Production of pulses during 2012-13 and 2014-15 (Unit: Thousand tonnes)
Pulses/Year
2012-13
Tur
Gram
Moong
Urad
Lentil
Other pulses
Total pulses
3022.70
8832.50
1186.20
1946.70
1134.00
2220.4
18343.00
Share in total
production
(%)
16.48
48.15
6.47
10.61
6.18
12.11
100.00
2013-14
3170.00
9530.00
1610.00
1700.00
N.A.
3780.00
19780.00
Share in total
production
(%)
16.02
48.17
8.13
8.60
19.11
2014-15*
2750.00
8280.00
1390.00
1610.00
4400.00
18430.00
% share in
Total
production
14.92
44.92
7.54
8.74
23.87
Source : Directorate of Economics and Statistics (DES)
It is revealed from table 1 that Tur production has declined by about 10 percent and its
share in total production of pulses has declined from 16.4 percentage to 14.9 percentage from
2012-2013 to 2014-15. Gram is one of the most important pulses in Indian production
however its production has also declined by about 6 to 7 percentage share in total production
was 44.9% during 2014-15. Moong and urad are another important pulses with their share of
7.5 and 8.7 percent respectively in total pulse production of 2014-15.
Fig.1 : Domestic production of major pulses
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Table 2 : Price movement of pulses in major domestic markets in (Rs per quintal)
Majpr
pulses
Mandies
Feb.
15
Jan.
15
Feb.
14
% change (over
previous month)
% change
(over prevous
year)
Chickpeaks
Delhi
3388 3325 2923
1.59
15.91
Indore
3388 3259 2816
3.96
20.31
Bikaner
3390 3310 2839
2.42
19.41
Lentil
Kanpur
5658 6333 4461
– 10.66
26.83
Delhi
5837 6129 4455
– 4.76
31.02
Indore
5750 6023 4299
– 4.53
33.75
Tur
Gulberga 6035 5471 4150
10.31
45.42
Indore
5825 5119 4166
13.79
39.82
Kanpur
6003 5528 4406
8.59
36.25
Amrvati
5926 5422 4120
9.30
4383
Vijaywada 5565 5214 3999
5.92
39.16
Urad
Jalgaon
5445 5713 4200
– 4.69
29.64
Jaipur
6013 6261 4390
– 3.96
36.97
Delhi
6335 6742 4753
– 6.04
33.28
Moong
Vijaywada 7105 7594 6503
– 6.44
9.21
Indore
7883 8077 7315
– 2.40
7.76
Jaipur
7959 8107 7329
– 1.83
8.60
It is revealed from Table 2 that the percentage change over Jan 2015 in Feb 2015 was
the highest in almost all the major domestic market in case of tur followed by chick peas
(gram). It ranged from minimum 1.59 percent in Delhi market for chick peas to maximum
13.79 percent in Indore market for Tur. In rest of the pulses under study the price did not show
any rise within a month.
Price comparison over year i.e in Feb-2014 ranged from Maximum 45.42 percent for
Tur in Gulbarga market to minimum 7.776 percent for moong in Indore market Among the
different pulses the highest price rise was observed in Tur followed by Urad and lentil in all
the major market.
The information about MSP in major pulses over last five years is given in Table.3
Table 3.Minimum support Price (MSP)
Pulses
Tur
Gram
Moong
Urad
Lentil
201011
3000
2100
3170
2900
2250
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201112
3200
2800
3500
3300
2800
201213
3850
3000
4400
4300
2900
201314
4300
3100
4500
4300
2950
201415
4350
3175
4600
4350
3075
% increases over 2010-11 in
2014-15
45
51
45
50
37
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Source - Commission for agricultural costs and Prices (CACP)
It is observed from the table that –MSP declared by CACP is the highest in case of Tur
followed by Moong, Urad, lentil and gram in 2010-11 while it was the highest in moong
followed by Tur/urad, gram and lentil. The rise in MSP was better during 2012-13 and 201314 year than compared to rest of the years under study .It was declared by CACP over
previous years price and before the start of sowing season to boost the pulse production in
India.
Trade Policy
Under advance authorisation scheme, Import of pulses is allowed for export after
domestic processing and value addition. The prohibition on exports of pulses is not applied to
export of (a) Kabuli Chana and (b) Organic pulses. Export of organic pulses and lentils shall
subject to quantity limit up to 10,000 tonnes per annum, after duly certified by APEDA, New
Delhi and export shall be allowed only from custom EDI ports.
The export of pulses to Bhutan is exempted from any ban and without any quantitative
restriction. The export of pulses to the republic of Maldives has been permitted for the years
2014-15 to 2016-17 with quantitative restrictions up to 106 thousand tonnes in 2016-17.
Table 4 : Trade destination of major Pulses for 2013-14
The information about trade destination of major pulses is given in Table
It is observed from the table that for chick peas (gram) Pakistan, Turkey, Algeria,
Srilanka, and united Arab EMT s are major exports destinations while Australia, Russia,
Tanzania , Myanmar, and USA are the major destinations for import during 2013-14.
For moong and urad ,USA srilank, Canada, and Kenya, are th export destination while
Myanmar Tanzania,Kenya, Ausrtelia and Mozambique for import. In case of pigeon peas
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5
(T
Turr), Neepaal,C
Can
nad
da, Issraiil, and
d kor
k reaa arre the
t e maj
m or deestiinatio
on for
f r ex
xpo
ort myn
m nm
mar taanaziaa,
M zam
Moz
mbiiqu
ue Mala
M awii an
nd Keeny
ya forr im
mportt du
urin
ng 20
013
3-14.
Tab
ble 5: Im
mpo
ortt po
oliicy –imp
porrt of
o pu
ulsees is
i fre
f e wit
w tho
out an
ny qu
uan
ntittatiivee reesttricctio
onss.
Thee in
T
nfo
orm
mattion
n iss giiveen in
i the
t e taablee.
H cod
HS
c de
C mm
Co
mo
odity
Ta
T
arifff sch
s hed
dulee
B un
Bou
nd du
d ty Sta
S atutorry du
uty Ap
Appliied
d duty
d y
07
713
3 10
1 00
0 Pea
P as (Pi
( sum
m Sat
S tivu
um
m)
50
0%
5 %
50
Nil
07
713
3 20
2 00
0 Chi
C ick
kpeeas (garb
ban
nzo
os)
100 %
3 %
30
Nil
07
713
3 31
3 00
0 Mo
Moon
ng/U
Urad
100 %
3 %
30
Nil
07
713
3 40
4 00
0 Len
L ntill (M
Mo
osur)
100 %
3 %
30
Nil
07
713
3 60
6 00
0 Pig
P geo
on Pea
P as (Tu
( ur)
100 %
3 %
30
Nil
S urcce : Dire
Sou
D ecto
oraate Geeneerall of Fore
F eig
gn Tra
T adee (D
DG
GFT
T), Depaartm
meent off reeveenu
ue and
a d
W rld Trrad
Wor
de Org
O gan
nisatio
on (W
WT
TO)) *:: Prroh
hib
biteed : Not
N peerm
mitted for exp
e porttatiion
n
U derr im
Un
mp
porrt pol
p icy
y th
he bo
oun
nd du
uty an
nd staatutorry duty un
ndeer Tar
T rifff sccheedu
ulee was
w 50
0
peerccen
nt in
i peas ,w
whiile 10
00 an
nd 30
0 perc
p cen
nt in
i caase off chic
c ckp
peaas , Mo
Moon
ng/u
uraad, leentiil and
a d
piigeeon
npeea app
a plieed dut
d ty waas nil
n in alll th
he pul
p lsess.
M vem
Mov
meent off Dom
messticc and
d in
nterrna
atiion
nal Prricees::Fig
gu
ure 2.
C ckp
Chi
pea
as (G
Gra
am)
F . 2 : Pri
Fig
P icee Tren
nd off ch
hicckp
pea
as (Ch
( han
na))
S urcce : Dep
Sou
D parttmeentt off Agr
A ricu
ultu
uree an
nd Co
oop
peration (D
DAC), Agm
A marrkn
nett, an
nd Ag
griwaatch
h
IIt is obs
o erv
ved
d frrom
m Fig
F guree th
hatt th
he dom
d meestiic pric
p ce off Ch
hicckp
peaas (ch
( anaa) waas hig
h gheer th
han
n
th
he inttern
nattion
nall pricce per
p r quin
q ntaal from
f m Au
ug..20
012
2 tiill Deec.2
201
14..It waas beelow
w in
nterrnaatio
onaal
prrice dur
d ring
g Apr
A ril 2012 tilll July
J y 201
2 12 Th
The rea
r son
n beh
b hind
d th
hiss beein
ng the
t e mor
m re dem
d man
nd thaan thee
su
upp
ply
y in
n th
he Ind
I dian
n mar
m rkeet.
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L ntil (M
Len
Masurr) Fig
F gurre--3
F . 3 : Pri
Fig
P icee trren
nd of
o Le
Lentiil (M
( asu
ur))
IIt is
i rev
veaaled fro
om th
he fig
g. thaat do
omeesttic prricee of
o len
ntill (M
( asu
ur) was
w s at
a par
p r with
w h
in
nterrnaatio
onaal pric
p ce du
urin
ng Ap
Aprill 20
012
2 tiill Sep.2
201
12 ho
oweeveer it
i has
h increeassed ov
verr in
nterrnaatio
onaal
prrice in Oct
O t 2012 till
t Marc
M ch 20
013
3 an
nd latter on
n du
uriing
g Aug
A g.20
013
3, Oc
O t, No
Nov, an
nd De
D c.1
13.IIt wa
was
m re tha
mor
t an inte
i ern
natiion
nal prricee with
w h effe
e ect fro
om
m oct-- 20
014
4 till
t Feeb 2015. Itt crrosssed Rs.
R .65
500
0peer
qu
uin
ntall in
n Feb
F b 20
015
5. Th
heree was
w s a mod
m deraate to
o hiigh
h pricce fluc
f ctu
uatiion
n fo
or len
l ntil (M
Masurr Dal)
D ) in
n
th
he do
om
mesttic ass we
well ass in
n thee inte
i ern
natiion
nal mar
m rkeet .Th
. he av
verrage domeestiic prricee wa
was
m derateely hig
mod
gh.
F g.4
Fig
4 : Prricee Tre
T end
d of
o Arh
A harr (T
Tu
ur)
I can
It
c n be
b seeen frrom
m the
t e fiigu
ure th
hat dom
messticc pric
p ce of Arha
A ar (T
Tur) rem
r maiineed abo
ovee
in
nterrnaatio
onaal pri
p ce from
m Apr
A ril 20
012
2 tiill feb
b-2
201
15 an
nd up
pwaard
d trren
nd is
i shaarp
p in
n 201
2 15. Itt us
clleaarly
y in
ndiicatted
d th
hatt th
he do
omeestiic priicee fo
or Tu
ur (Ar
( rhaar Da
Dal) haave beeen
n high
h herr th
han
n th
hatt of
o
in
nterrnaatio
onaal pric
p cess fo
or ove
o er last
l t tw
wo yeearss.
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Fig
g. 5 : Moo
M ong
g (Gr
( reeen Gr
Gram
m)
I casse of Moo
In
M ong
g, Mo
Most off th
he tim
mess in
nteernaatio
onaal pieecees rem
r maiinss ab
bov
ve the dom
d mesticc
prrice but
b t trren
nd wa
was upw
u waard fo
or bot
b th the
t e pric
p ces du
urin
ng Apri
A il 201
2 12 tilll Feb
F b.20
015
5. Th
he priices
fllucttuaatio
onss in
n the
t e in
nterrnaatio
onaal maark
ketss wer
w re hig
gheer thaan thaat off in
n th
he do
om
mesttic mark
m kett.
In
nterrnaatio
onaal pric
p cess fo
or mo
moon
ng Da
Dal wer
w re hig
h herr duri
d ing
g Seeptt.20
012
2 to
o Feb
F b 20
015
5.
F . 6: Pric
Fig
P ce Trren
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NC
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Percentage share has also declined in case of Tur, Gram and Moong.
The price movement was upward in both domestic and international prices of pulses
Indians trade destinations were Myanmar ,Pakistan, Turkey, Nepal,
Algeria
Srilanka,Malaesia,Kuwait,Bhawan Shingapur, Israil, Korea,Canada for export for Russia
,USA,Austrelia,france, Tanzania, Uzbekistan, Malawi, Mozambique, as import source
for different major pulses.
Import of pulses is allowed for export after domestic processing and value addition
Import of pulses is free without any quantitative restriction.
Limitations:
1.
Study is based on published data and conclusions are restricted to period under study
only.
References:
1.
Commodity profile for pulses –March 2015.
2.
DES
3.
Department of commerce
4.
DAC Agmarkment and agriwatch
5.
CACP
6.
DGFT
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Rural Marketing Potential in India – An Analytical Study
Prof. Sheetal Umbarkar
Prof. Dipti Jadhav
Asst. Prof. ASM’S IBMR,
Assistant Professor,
sheetalumbarkar@asmedu.org
ASM’S IBMR,
diptivjadhav@asmedu.org
ABSTRACT:
Fast pace of technology advanced every sphere of social, economic, political
cultural life, produce, reduce costs, distribute, and expect higher profits. The focus is
on tapping the rural markets. Urban markets have saturated lied to look rural markets.
This paper presents a review of rural markets‟ environment, Problems and strategies in
India. Rural marketing has become the latest mantra of most corporate even MNCs are
eyeing rural markets to capture the large Indian market. The rural market consist 70
percent population, twice as entire market of USA and would become bigger than total
consumer market in countries like South Korea, and Canada in another 20 years.
Using primary and secondary data collected from various market segments. It exhibits
linguistic, regional and cultural diversities and economic disparities. Increase in
purchasing power fuelled lot of interest, several companies are exploring cost effective
channels like HUL/ITC/Colgate/Godrej/Nokia/BPCL.
Keywords: Rural Marketing, Rural Mindset, Rural Market Potential, RM Levels.
I.
Introduction
742 million Indians constituting 138 million households reside in 6, 38,365 villages
(Census, 2001). the size of rural market itself speaks of its potential. The current marketing
environment and economic scenario have brought the corporate under contemporary roofs of
modern India, which is challenging the current standards of segmenting, targeting and
reaching the customers. Realistically, India as a nation has come a long way from the place
where only urban population which constitutes 20 per cent of customer base for companies
are responsible for 80 per cent of their profits. The companies are looking for new
opportunities and avenues, as they are witnessing a decline in their growth rates in urban
markets due to market saturation and they do have a huge, untouched and untapped rural
Indian market. The driving force for this is rural youth who are educated, have access to
technology and have openness to change. Also rural markets have acquired significance, as
the overall growth of economy has resulted into substantial increase in the purchasing
power of the rural communities. A survey by India's premier economic research entity,
National Council for Applied Economic Research (NCAER) indicates that rise in rural
incomes is keeping pace with the rise in urban incomes. The rural middle class is growing at
12 per cent, close to the urban middle class which is growing at 13 percent. Punjab, Kerala,
Haryana, Rajasthan, Gujarat, Andhra Pradesh and Maharashtra are considered highly
prosperous states.
Objectives
1. To understand the rural market.
2. To unleash the potential of rural market.
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3. To assess the paradigm shift from urban to rural market.
4. To analyze the various parameters of potential of rural market.
5. To offer the conclusions.
II.
Methodology
An exhaustive questionnaire was structured to gather as much primary information as
possible and hence, the most common form of research, descriptive research was used.
A preliminary study in the form of informal interviews with 107 persons was conducted.
Secondary data collected from various market segments and other players of the
market, and randomly collected printed promotional material across the countryside.
Page | 2
What Is Rural?
1.
B.N. Garudachar, general manager, corporate communication and investor relations at
Voltas, a Tata group company in air-conditioning and engineering services. "These are:
low population numbers, low median income, poor infrastructure [roads, electricity,
communications], and agrarian rather than industrial activity. Such rural areas are
within the sphere of influence of neighboring cities and metros.
Salient Features Of Rural India
Some common characteristics that do exist amongst most of the rural markets in India
are as follows.

A. Population: 83.3 per cent of the villages have a population of less than 2000 (Census
of India 2001)

B. Levels Of Education: Although the percentage of literates has increased from 36 in

1981 to 59 in 2001, there is still approximately 60 per cent of the rural population who
lies below the middle education bracket. (Kashyap & Raut, 2010)

C. Occupational Pattern: Almost 76 per cent of the rural population depends on
cultivation or wages for their living (NCAER, 2002).
D. Characteristics: in terms of occupation, consumption and buying behavior change
prominently from urban to rural in locations with population more than 10000.
III. Rural Marketing In Modern India
“Rural Marketing is defined as a function that manages all activities involved in
assessing, stimulating and converting the purchasing power of rural consumers into an
effective demand for specific products & services and moving these products & services to the
people in rural areas to create satisfaction and a better standard of living and thereby
achieving organizational goals” (Iyer, 2010). The process should be able to straddle the
attitudinal and socio-economic disparity between the urban and rural customers.
URBAN TO RURAL (U 2 R):
A major part of rural marketing falls into this category. It includes the transactions of
urban marketers who sell their goods and services in rural areas, like pesticides, fertilizers,
seeds, FMCG products, tractors, bicycles, consumer durables, etc.
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RURAL TO URBAN (R 2 U):
Transactions in this category basically fall under agricultural marketing where a rural
producer seeks to sell his produce in an urban market, like seeds, fruits and vegetables, milk
and related products, forest produce, spices, etc.
RURAL TO RURAL (R 2 R):
This includes the activities that take place between two villages in close proximity to
each other, like agricultural tools, handicrafts and bullock carts, dress materials, etc.
The McKinsey report (2007) on the rise on consumer market in India predicts that in
twenty years the rural Indian market will be larger than the total consumer markets in
countries such as South Korea or Canada today, and almost four times the size of todays urban
Indian market and estimated the size of the rural market at $577 Billion.
Table 1: Rural Population Statistics
Population Number of Villages Percentage of total villages
Less than
200
114267
17.9
200-499
155123
24.3
500-999
159400
25
1000-1999
125758
19.7
2000-4999
69135
10.8
5000-9999
11618
1.8
10000 & above 3064
0.5
Total 638365 100
Source: Census 2001
IV. Attracting Attributes Of Rural Markets
Table 2: Estimated Annual Size: Rural Market
FMCG
Durables
Agri-inputs (including tractors)
Two / Four Wheelers
Total
INR
INR
INR
INR
INR
65000 crore
5000 crore
45000 crore
8000 crore
123000 crore
Source: (Francis Kanoi, 2002)
The immense potential of the rural market can be realized if the marketers understand
this market. The huge untapped needs of the rural mass, the growing rural economy
and the increasing media penetration and brand awareness make this market extremely
attractive to marketers (Goswami, 2009). A look at the estimated annual size of the rural
market would make us understand the true potential of this untapped market. The growth
statistics for FMCG and Consumer Durables sector suggests huge potential for the Indian
Rural markets (Paninchukunnath, 2010).
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Understanding The Potential Of Rural Market
LARGE POPULATION: 742 million Indians constituting 138 million households reside
in 6,38,365 villages (Census, 2001). The size of rural market itself speaks of its
potential
GROWTH IN MARKET: The market has been growing at 3-4% per annum adding
more than one million new consumers every year. Consumer is brand loyal and
understands symbols better. View it as you may, few people dispute that the rural
market is massive. According to Singh, 12.2% of the world's consumers live in India.
"Rural households form 72% of the total households. This puts the rural market at
roughly 720 million customers." Gupta of TSMG extrapolates the Census 2001 numbers
and comes up with an estimate of 790 million. "Total income in rural India (about 43%
of total national income) is expected to increase from around US$220 billion in 20042005 to US$425 billion by 2010-2011, a CAGR of 12%," he says.
IT PENETRATION IN RURAL INDIA: Today's rural children and youth will grow up
in an environment where they have 'information access' to education opportunities,
exam results, career counseling, job opportunities, government schemes and services,
health and legal advice and services, worldwide news and information, land records,
mandi prices, weather forecasts, bank loans, livelihood options. If television could
change the language of brand communication in rural India, affordable Web
connectivity through various types of communication hubs will surely impact the
currency of information exchange. As the electronic ethos and IT culture moves
into rural India, the possibilities of change are becoming visible.
IMPACT OF GLOBALIZATION: The impact of globalization will be felt in rural India
as much as in urban. But it will be slow. It will have its impact on target groups like
farmers, youth and women. Farmers, today 'keep in touch' with the latest information
and maximize both ends. Animal feed producers no longer look at Andhra Pradesh or
Karnataka. They keep their cell phones constantly connected to global markets.
Surely, price movements and products' availability in the international market place
seem to drive their local business strategies. On youth its impact is on knowledge and
information and while on women it still depends on the socio-economic aspect. The
marketers who understand the rural consumer and fine tune their strategy are sure to
reap benefits in the coming years. In fact, the leadership in any product or service
is linked to leadership in the rural India except for few lifestyle-based products, which
depend on urban India mainly.
INCREASING INCOME AND PURCHASING POWER: The agricultural development
programs of the government have helped to increase income in the agricultural sector.
These in turn have created greater purchasing power in rural markets.
ACCESSIBILITY OF MARKETS: The attraction of a market depends not only on its
potential but also on its accessibility. The road network has facilitated a systemized
product distribution system to villages. An increasing number of companies are
supplying village markets directly. Increasing direct contacts to villages helps
product promotion and availability of the product in the village shop.
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CONSUMER BEHAVIOUR CHANGES: Increased literacy and greater awareness in
rural markets create new demands and discriminating buyers. This is observed
more in the younger generation. In villages today, this segment of buyers consumes a
large variety of products, both durables and non-durables. There is a visible increase in
the consumption and use of a variety of products, which is easily observed.
COMPETITION IN URBAN MARKETS: Intensified competition in urban markets
increases costs and reduces market share. The rural markets are therefore
increasingly attractive in relation to urban markets. The automobile market brings this
out clearly. Rajdoot motorcycles, Bajaj scooters or Ambassador Cars find ready
acceptance in rural markets as compared to urban markets where there is a proliferation
of brands.
NEW EMPLOYMENT OPPORTUNITIES: Government schemes like IRDP (Integrated
Rural Development Programme), JRY (Jawahar Rozgar Yojana) and TRYSEM
(Training Rural Youth for Self Employment) have created new employment
opportunities in Rural India. Co-operative banks and Public sector banks are
extending loans to rural people, thereby creating job opportunities for them. As a
result very few rural people are now flocking to urban centres.
. GREEN REVOLUTION: The vision of Dr. Swami Nathan, the father of the
green revolution to achieve self-sufficiency in food grain production in 1995,
gave a major breakthrough in food rain production by the use of scientific methods in
agriculture. At present, Rural India generates 299 million tons annually.
VARIOUS GOVERNMENT POLICIES: The government‟s stress on selfsufficiency resulted in various schemes like Operation Flood (White Revolution),
Blue Revolution, Yellow Revolution, etc. resulted in the production of 15 million tons
of milk per annum.
BETTER CREDIT FACILITIES THROUGH BANKS: With co-operative banks taking
the lead in the rural areas, every village has access to short, medium, long-term loans
from these banks. The credit facilities extended by public sector banks through Kisan
Credit Cards help the farmers to but seeds, fertilizers and every consumer goods on
instalments.
GREEN CARD / CREDIT CARD FOR FARMERS: The government initiated credit
cards for farmers through public sector banks. Canara bank and Andhra bank were the
pioneers in the launch of the Kisan Credit Card. The farmer had a choice to take short or
medium term loans through these credit cards to buy seeds, fertilizers, etc. This enabled
him to produce more and thereby increase his income.
IMPROVED EXPORTS DUE TO EXPORT POLICY: The new Export Policy 2000
paves the way for open market (OGL- Open General License System) status for
agriculture. The World Trade Organization‟s (WTO) Policy for agro-exports has
increased exports of Indian agricultural produce thereby increasing incomes of the rural
population.
REMITTANCES FROM INDIANS WORKING ABROAD: These remittances are
a sizeable contribution to growing rural income & purchasing power.
POLITICAL & SOCIAL CHANGES THROUGH FAVOURABLE GOVERNMENT
POLICIES: The Indian Government launched a number of schemes like IRDP
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(Integrated Rural Development Programme) and REP (Rural
Electrification
Programme) in the 1970‟s, which gave a boost to the agrarian economy. This resulted
in changes in people‟s habits and social life. REP gave impetus to the development of
consumer durable industry.
MEDIA: Mass Media has created increased demand for goods and services in rural
areas. Smart marketers are employing the right mix of conventional and nonconventional media to create increased demand for products. The role cable television
has been noteworthy in bringing about the change in rural people‟s mindset and
influencing their lifestyles.
VI. Rural Marketing Is Marketing To A Rural ‘Mindset’; Not A Rural Market
Unfortunately, there exists only the „practice‟ of rural marketing and very few
instances of understanding the rural “mindset”. Assumptions, generalizations and stereotypes
replace insights and the extra effort needed to “think rural”. A starting point to making our
understanding more „real‟ is by breaking a few myths around rural consumers. A few
commonplace assumptions that (mis)guide rural marketing thought. This piece of writing is
an attempt to quash those and understand the implications of the realities they shroud.
SAMPLE: The respondents in the sample consisted of rural and sub-urban
consumers. 107 respondents in and around the border areas of Hyderabad, Bidar were
interviewed. The respondents had certain exposure to the urban
lifestyle. The details of the demography of the respondents are depicted in numbers in the
form of Tabulation. The sample size was good enough to understand the psychographic
characteristics of rural consumers in the perspective of verbal and non-verbal
communication strategies.
INFERENCES: The outcome of the study can be analyzed for each of the
questions asked in the interviews. Each of the questions covers different aspects of the
potential area in rural marketing. The analysis is as follows.
Table 3: Respondents’ Age
Response No. of Respondents % of Respondents
Less than 20 years
09
8.43
21-30 years
20
18.69
31-40 years
33
30.84
41-50 years
28
26.16
50 years and above
17
15.8
Total
107
100
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Implementing Marketing Strategies is Advantage of Small Grocery Shops
in Pimpri Chinchwad
Prof. Madhuri Ajit Chaudhari
IIBR, Pimpri, India
ABSTRACT:
The study covers the grocery shop business sector. This study helps to improve the
strategic marketing decisions and profitability of the grocery shops. There was very less
model available for marketing strategy of grocery shops, so that for this study we done
literature search. The result of this research to developed marketing strategy and used
benchmarks for grocery shops in pimpri chinchwad area .Data collected from grocery
shops owners or managers , on the basis of marketing mix variable to increase the
profit of grocery shops. 36 grocery shops examined for this research
Key words: Marketing strategies, benchmarks
Introduction:
Through the Marketing strategy firm attempts to reach its target. Marketing strategy
starts with identifying needs of consumer through into advertising promotion , distribution ,
packing , sales and distribution of product. Marketing strategy must have to focus on customer
need , want and try to produce the product as per their requirement .Marketing strategy also
focus on promotion , sales and distribution of product with minimum cost. decision-makers
will finally be in a position to relate marketing expenses to shareholder value and to
understand how to tie marketing initiatives back into the value created for the company.
Whether in towns, cities or more rural areas, there has been significant economic and
social change which has altered the ability, perception and behavior of consumers with
regard to shopping and retailing. The needs and desires of consumers have changed in
different ways, although there are constant needs, in the general sense, such as access to
food and clothing. The consumption of products has varied considerably for example, red
versus white meat consumption. The willingness and capability to travel to obtain these
needs has also changed. It is probably true that most small shops are less able to satisfy
these new demands than are larger outlets and businesses. In the light of the above
observation it is necessary to study the mechanisms that grocery shops implement in a
turbulent business environment.. consumers are also very conscious of their choice of
products reflecting the “right” social class in which they wish to be categorized by their
friends and peers. The more sophisticated black consumers would buy products such as
clothing and furniture at up market stores in traditionally white areas while those who are
less privileged and thus from a lower social class, would buy from the townships because of their lack of access to the malls, low income and consumption.
Problem statement
Grocery retailings h a v e h i g h levels of competition. Some are faced with outlets
from some of the best managed businesses in the world e.g.Big Bazar,D’Mart small
retailers have to be as effective and efficient as possible to increase her profit. Big retails shop
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display all the Varity of product ,consumer can easily access all the product ,so that consumer
can compare all the product with each other, and consumer directly purchase the product . In
small glossary shop , consumer can not have access the product , so that small glossary shop
need to do marketing strategy to increase profit .
Purpose of the study
Empirical support for the relationship between the marketing strategy and financial
performance of a business has been provided by a number of studies. The majority of these
studies have been based on the Profit Impact of Marketing Strategy.
Objectives of the study
i.)
To ascertain the marketing strategies that maximizes their profitability.
ii.) To contribute to a more comprehensive understanding of variables that impinges on the
marketing strategy and performance of grocery shops.
Methodology
Population and sample
Approximately 30 grocery shops owned by black individuals pimpri chinchwad area .
The selection of grocery shops was done according to the following criteria as :
(i) Shop space, on average, should be between 50 - 300 square meters
(ii) Turnover of not less than Rs. 150 000 annually
(iii) Assets less than Rs. 500 000.
(iv) Less than 10 employees, including the owner if he/she is self employed in the shop.
Research instrument
The empirical research component of the study consisted of a self administered
questionnaire. The questionnaire designed used several questioning techniques.
Data gathering
The researcher visited grocery shops and collected data .The researcher covered the area
of study in 4 weeks, whilst approximately 30 min were required to complete the questionnaire.
Results and Discussions Major Findings
Price is an important factor for marketing strategy mix , Retailers in pimpri chinchwad
area developed marketing strategy base on price. but according to the study findings, the
retailers in pimpri chichwad area need to adopt the other 3 Ps of the marketing strategy,
namely product, place and packaging in order to be more profitable
Customer care
In the study at hand there was strong agreement (61% strongly agree, 33% agree) by
respondents with the statement that customer interests should come first. The respondents
believed in the saying that “the customer is king”. However, a cause for concern is that when
it comes to researching about their customer preferences it becomes clear that grocery shops
in Pimpri chichwad do not put into practice what they preach because 61% do not measure
their customer satisfaction levels on a regular basis. There are variations between what
owners/managers believe is the guiding philosophy in their business and what the grocery
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shop implement in order to achieve that guiding philosophy since they do not constantly
measure the needs and wants of their customers.
Pricing
A total of 69% of the grocery shops, in pimpri chichwad , do not follow a constant mark
up policy. This implies that the product prices in the grocery shop can vary on a day to day
basis. The fact that grocery shops in pimpri chinchwad do not practice constant pricing
policies may imply that two different consumers may buy the same commodity within a few
minutes of each other at a different price. This results in customer defection as customers may
feel cheated. A total 67% of the respondents agreed that they offer discounts to their customers
on a regular basis. A further 33% indicated that they, at times, offer discounts to loyal
customers. A logical approach to pricing is, in effect, a comparison of the impact of a decision
e.g. the effect which a 10% discount will have on the profits of the retail firm. It involves the
increase or decrease in revenue not just of the product under consideration, but of that of the
entire business. If the proposed price change leads to a greater increase in total receipts than in
total costs, it will, therefore, lead to increased profits.
Research
A total of 8% of the respondents consult customers at least once per year. A further 17%
meet customers’ 2 to 3 times per week. Furthermore, 22% indicated that they consult their
customers every month. A further 11% meet their customers every 2 to 3 months. In addition,
17% of the respondents also indicated that they consult their customers at least once a year.
However, a cause for concern is the 25% of the retailers that do not consult their customers.
Product preferences change within a short space of time, and such grocery shops will not be
able to match up with the changes in customer preferences. This implies that 25% of the
respondents are not offering pro ducts on the basis of market driven demand. This negatively
affects the financial performance of the small retail firm because 25% of the grocery shops in
Pimpri chinchwad , who do not meet the needs and wants of their customers, may find
themselves with stock that is outdated because customers do not buy those products.
Advertising
In small retailer advertising do through the word-of –mouth .According to this research
93% respondent agree that physical con- tact methods such as word of mouth and touts to
convey information about their product offering to their customers rather than non physical
methods such as community radio,
Product differentiation
Most of the consumer purchase their product in super market. Monthly shopping ,
branded item consumer purchase in super market . This could explain why grocery shops in
the townships are not completely dissatisfied with the variety of products which they stock
.According to the study only 20% of consumer are dissatisfied with the variety of product
maintain in small glossary shop. Remaining
Quality
All of the grocery shop owners/managers in pimpri chinchwad agree that quality
work should be valued. Small retailers in pimpri chinchwad area do not measure customer
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expectation on regular basis . so that they cannot possible to deliver the product as per
customer requirement.
Packaging
Packaging is an important factor. According to this research , 89% of respondent agree
that small retailer in pimpri chinchwad area they buy some item in bulk and divided in to small
size. The majority of 79% of respondent agree that the packaging is not good. This aspect
should be given consideration taking into cognisance that some grocery shops were using
recycled bottles of cooking oil to sell paraffin. Only 8% of respondents agreed that they check
the expiry dates of their products before dividing. This is a serious cause for concern when a
majority of the respondents had agreed that they divide the items that they buy into smaller
quantities.
Distribution
The major advantages of small retailer shop that consumer directly connected to the
retailers. so that retailer easily find out the customer changing requirement . A total of 22%
of the respondents disagreed with the statement that they know their competitors very well. A
total of 36% neither agreed nor disagreed with the statement. Only 42% of the
respondents in Pimpri chichwad that they know their competitors very well.
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Online Advertising
Dr. Yuvraj Rajaram Thorat
Vice Principal
Appasaheb Jedhe Mahavidyalaya Pune, India.
Yuvrajthorat2012@gmail.com
ABSTRACT:
Consumers use Internet for many purposes than simply entertainment or
information. Online advertising offers potential benefits like target ability, tracking,
deliverability, flexibility, interactivity, etc. that are not available through traditional
media. Present paper focus on online advertising. It highlights on its advantages and
limitations. It also gives suggestions for better online advertising.
Introduction:
Advertising on the Internet is almost a necessity for modern businesses, especially
those that do business outside of their local community. Advertising is the branch of marketing
that deals with communicating to customers about products, brands, services and companies.
The Internet, as a global communications medium, provides advertisers with unique and often
cost-effective ways of reaching advertising audiences. Consumers use the Internet to assist
them in nearly every aspect of life, creating countless opportunities to place relevant, targeted
ad messages. Thus consumers use the Internet for more than simply entertainment or
information, as they do with radio, television, magazines and newspapers. Advertising on the
Internet has unique advantages and disadvantages.
Advantages of online advertising:
1)
Targeting:
Online advertising may use geo-targeting to display relevant advertisements to the user's
geography. Publishers can offer advertisers the ability to reach customizable and narrow
market segments for targeted advertising. Advertisers can customize each individual ad
to a particular user based on the user's previous preferences.
2)
Low Cost:
Online advertising, and in particular social media, provides a low-cost means for
advertisers to engage with large established communities. The low costs of electronic
communication reduce the cost of displaying online advertisements compared to offline
ads.
3)
Wider geographical reach:
Online advertising gives your campaigns global coverage, which helps your online
campaigns reach more audiences.
4)
Speed:
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Once ad design is complete, online ads can be deployed immediately. The delivery of
online ads does not need to be linked to the publisher's publication schedule.
Furthermore, online advertisers can modify or replace ad copy more rapidly than their
offline counterparts. Online advertising is faster than any of the offline advertising
activities.
5)
Measurability:
Online advertisers can collect data on their ads' effectiveness, such as the size of the
potential audience or actual audience response, how a visitor reached their
advertisement, whether the advertisement resulted in a sale, and whether an ad actually
loaded within a visitor's view.
6)
Informative:
In online advertising, the advertiser is able to convey more details about the
advertisement to the audience and that too at relatively low cost. Most of the online
advertising campaigns are composed of a click-able link to a specific landing page,
where users get more information about the product mentioned in the advertisement.
7)
Flexible Payment:
In offline advertising you need to pay the full amount to the advertising agency
irrespective of the results. But in online advertising there is the flexibility of paying for
only qualified leads, clicks or impressions. Thus payment flexibility is another added
advantage of online advertising and marketing.
8)
Better ROI:
Since online advertising is mainly focused on performance based payment, ROI is sure
to be far better when compared with offline advertising. The performance of online
advertisements can also easily track and analyze and adjust so as to improve ROI.
9)
Presentation:
Advertisers have a wide variety of ways of presenting their promotional messages,
including the ability to convey images, video, audio, and links. Unlike many offline ads,
online ads also can be interactive. For example, some ads let users input queries or let
users follow the advertiser on social media. Online ads can even incorporate games.
10)
Better Branding:
Any form of advertising helps in improving the branding and online advertising stands
high in improving the branding of your company, service or product. If the digital
advertising campaign is well planned, there are chances of getting brand name spread
virally over a larger audience.
11)
Easy audience engagement:
Most of the online advertisement platform makes is easy for the audience to engage with
ads or products. As an advertiser we would be able to get more feedback from the
audience and thereby improve the quality of our ads going forward.
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Disadvantages of online advertising:
1)
Customers Ignore Advertisements:
Consumers are so used to seeing advertising on television, hearing radio commercials
and flipping through advertisements in magazines, they've developed an aversion to all
forms of advertising. This is also the case with online advertising, where consumers can
avoid clicking banner advertisements, bypass ads in online videos they watch and close
pop-up advertisements as soon as they come up on their screens. Customers are in
control of which advertising messages they want to click and respond to.
2)
Trustworthiness of advertisers:
Scammers can take advantage of consumers' difficulties verifying an online person’s
identity, leading to artifices like phishing (where scam emails look identical to those
from a well-known brand owner).
3)
Consumers get distracted:
When customers visit a website, they typically have a goal in mind, whether it's to catch
up on the latest celebrity gossip, read the news, chat with friends, and download music
or shop for a specific item. Websites present customers with various options that can
easily distract them and pull their attention from your online advertisements.
4)
Technical Obstacles:
The nature of a lot of display advertising is intrusive, so pop-up blockers Any software
or application that disables pop-ups on a Web browser can often prevent ads from being
served as they were intended by the advertisers. Most browsers now block pop-ups
unrequested window that opens on top of the currently viewed window.. There are also
extensions available for the Firefox browser, such as Ad block Plus, that will block
advertising on Web pages. Technologically savvy consumers are increasingly using
these methods to limit the advertising that they see.
5)
Viewing Problems:
Website downtime, lags in website or video loading and browser complications can
reduce the number of times consumers see online advertisements and how well they see
them. When technical issues occur, companies lose the opportunity to broadcast
advertisements for their products and services and may lose potential sales. Viewing
problems can occur because of problems with a website or if a consumer is using a smart
phone or other mobile device to view a website, has a slow connection speed or does not
have the correct applications and programs installed on his computers for proper
viewing.
6)
Copyright problem:
Your advertising materials are automatically available for everyone in the world. They
can copy it, regardless of the legal limitations. Trademarks, pictures and logos can be
copied and used for commercial purposes. In traditional advertising, such as TV, radio
and newspaper advertising, where pictures must be replicated, copying the content is
much more difficult.
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7)
Click Fraud:
Depending on how you pay for your online advertising, you may encounter a common
form of ad-result fraud based on inflated click through results. If your ad placement
costs rely on the number of clicks your messages receive, your competition can pay
people to inflate the click rate and drive up your costs.
8)
Anti-targeting technologies:
Some web browsers offer privacy modes where users can hide information about
themselves from publishers and advertisers. Among other consequences, advertisers
can't use cookies to serve targeted ads to private browsers. Most major browsers have
incorporated Do Not Track options into their browser headers, but the regulations
currently are only enforced by the honor system.
9)
Privacy concerns:
The collection of user information by publishers and advertisers has raised consumer
concerns about their privacy.
Suggestions for effecting online advertising:
1.
Keep it simple.
2.
Use of animation to attract the audience.
3.
Keep Innovating.
4.
Placing advertisement in the right content vehicles.
5.
Determine optimal frequency can be the factor, which determines the effectiveness of
any advertising campaign.
6.
Keep it short.
7.
An effective presentation.
8.
Follow advertising ethics.
9.
No outrageous claims and no misleading information.
10. Make sure that offer should be something worthwhile.
Conclusion:
The Internet is likely to continue to play a large role in individuals' lives in the
foreseeable future. No doubt, online advertising offers potential benefits like target ability,
tracking, deliverability, flexibility, interactivity, etc. that are not available through traditional
media. But it doesn't mean that online advertising is the superb way of advertising. It has many
limitations also. Success of online advertising requires sound strategy, management
understanding, commitment and integration of Internet with companies overall marketing
strategy. Several factors will influence the future of online advertising like privacy issue, legal
issue, and security issue, infra structural and above all market itself.
REFERENCES:
[1] Dr.Subhash Ghai, E-Marketing, Prism Books,Jaipur,2011.
[2] Kamlesh K.Bajaj & Debjani Nag, E-Commerce,Tata Mc-Graw Hill Education Pvt.Ltd.
,New Delhi,2011.
[3] S.Jaiswal, E-Commerce, Galgotia Publications Pvt. Ltd. ,New Delhi,2006.
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[4]
[5]
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Hanary Chan,Raymond Lee,Tharam Dillon & Elizabeth Chag, E-Commerce, John
Wiley & Sons,Ltd,England,2001.
J.S.Panwar, Marketing in the new era, Response books, New Delhi, 1997.
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Encapsulating Green Knowledge GAP Among Millennial with
Reference to Organic Food Category
Nidhi Raj Gupta
ASM’s IBMR, Chinchwad ,
Pune, India
ABSTRACT:
All over the globe every country is talking about green; green fuel, green economy,
green education, green industry etc. When it comes to India we are developing country
and our 70% population is rural and from agriculture background. India is considered
as the youngest country in the world. India has more than 50% of its population below
the age of 25 and more than 65% below the age of 35. It is expected that, in 2020, the
average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan.
People who born between 1980 to 2000 considered being millennial. Study tries to
indentify the gap of green knowledge among these millennial with special reference to
organic food category.
When we talk about framing the nation with young ones, it is very necessary to
understand their level of knowledge and necessity to change or adapt. Green knowledge
deals with all such aspect which directly or indirectly affects our ecosystem. It starts
journey from human body to their surroundings. These surroundings could be their
home, their work place. This paper restricts itself for organic food only and tried to
understand the awareness gap among millennial.
Keywords: Millennial, organic Food, Green Knowledge.
Introduction
India has more than 50% of its population below the age of 25 and more than 65%
below the age of 35 that’s the reason why India being pronounced as young country in the
world. Millennials (also known as the Millennial Generation or Generation Y) are the
demographic cohort following Generation X. There are no precise dates when the generation
starts and ends; most researchers and commentators use birth years ranging from the early
1980s to the early 2000s.These group directly contribute to the economy of nation.
A fractured group
Additionally, millennials are not one big, sustainable, homogenous group. We see some
big differences between younger millennials (ages 18 to 24) and older millennials (ages 25 to
33)
Study tries to understand the knowledge gap among these millennials for organic food.
Organic foods are foods produced by organic farming. While the standards differ worldwide,
organic farming in general features cultural, biological, and mechanical practices that foster
cycling of resources, promote ecological balance, and conserve biodiversity.
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Early consumers interested in organic food would look for non-chemically treated, nonuse of unapproved pesticides, fresh or minimally processed food. They mostly had to buy
directly from growers.
To be certified organic, products must be grown and manufactured in a manner that
adheres to standards set by the country they are sold in. In India NPOP, (National Program for
Organic Production) gives such certification.
There is widespread public belief that organic food is safer, more nutritious, and tastes
better than conventional food. These beliefs are promoted by the organic food industry
Psychological effects such as the “halo” effect, which are related to the choice and
consumption of organic food, are also important motivating factors in the purchase of organic
food. The perception that organic food is low-calorie food or health food appears to be
common
Now it is very important to understand that millennials orientation for organic food as
well their overall knowledge gap.
Objectives:
1.
To know the awareness level for organic food among millennials.
2.
To understand their level of inclination toward organic food.
Literature Review
The results indicate that environmental consciousness and appearance consciousness
positively influence attitude toward buying organic personal care products. Hee Yeon
Kim, Jae‐Eun Chung, (2011). That much of what has been commonly referred to as “green
marketing” has been underpinned by neither a marketing, nor an environmental, philosophy.
Five types of misconceived green marketing are identified and analyzed: green spinning, green
selling, green harvesting, enviropreneur marketing and compliance marketing. Ken
Peattie, Andrew Crane, (2005). It indicate that label users tend to be female, highly concerned
about climate change and air pollution, currently engage in environmental practices, involved
in environmental issues, and are more likely to be informed through traditional media outlets.
Nancy Engelhardt Furlow, Cynthia Knott,2002. Organic food is understood as opposed to
conventional food, itself seen as overly processed, un-pure and ultimately unnatural. This, for
some, grants organic food with naturalness and purity. The main reason for consumers to
choose organic food is a profound dissatisfaction with conventional agricultural practices and
the impacts these eventually have on food products most respondents expressed the fact that
they regarded organic food as significantly healthier than non-organic food. However, a
striking fact was the emphasis put by some on the health benefits for their children that
resulted from organic food consumption while being totally oblivious to the impact on their
own health. Mmedo Médéric Duffort, August 2006. Previously, people with higher level
incomes were found to be more environmentally concerned and people with higher levels of
education also reportedly demonstrate more environmentally conscious behavior (Roberts,
1996). Journal of Applied Business and Economics The main environmental concerns for
college-age students are health issues followed by wildlife and waste. On the other hand,
working adults are concerned about health issues, waste and energy conservation (Stafford,
Stafford & Chowdury, 1996). A consumer’s environmental knowledge is positively related to
their intention to purchase the product advertising to be green (Manrai, Manrai, Lascu, &
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Ryans, 1997). A study by Pickett, Kangun, and Grove (1994) indicated that it is not
demographics that determine a consumer’s conservation habits, but rather psychological and
social variables are considerably more powerful.
It has been seen in several research papers that there is a difference between knowledge
and practice of organic food. Specifically knowledge gap for organic food under FMCG
categories found nil in India, and under millennial category, very less has been found. So,
based on such gap following hypothesis has been made.
Hypothesis:
H0: Awareness level is low for organic food under FMCG category in millennials.
Ha: Awareness level is high for organic food under FMCG category in millennials.
Research Methodology:
Method of data collection:
Primary data were collected by the survey method in which the structured questionnaire
distributed and recollected from the respondents.
Questionnaire Design:
The questionnaire had questions on demographic details of the respondents including
gender, age. The other questions were included to know the respondents “overall knowledge
and inclination towards organic food categories. To know the major factors behind the
knowledge gap, rank method and simple dichotomous method were used.
Sample Unit:
Supermarket’s Customers
Sample Method:
Convenient non-probability sampling method was used to collect data from the
respondents.
Sample Size:
110
Data Analysis &Interpretations:
The data was collected, edited and coded data were analyzed with the help of SPSS 22.0.
The “Chi Square” test used to test the hypothesis.
Analysis & Discussion: Overall knowledge & Inclination towards Organic Food divided
among Older & Younger Millennials:
The detailed information about the respondents are summarized in the following tableVariables
Older
Yes No Younger Yes No Total
Millennials
Millennials
Awareness for organic food
Willingness to buy Organic
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48
48
47
0
1
62
62
62
54
0
8
110
110
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Food
Willingness to buy if price is
high
48
27
21
62
52
10
110
Have you seen advertisement
48
12
36
62
22
40
110
Table 1: Awareness & Inclination Summary
Overall perception about reachability & availability of organic food:
To know both groups’ differentiation & homogeneity about their perception F-Test
Two-Sample for Variances & ANOVA has been done.
Older Millennials Younger Millennials
Mean
9.6
12.4
Variance
84.3
37.3
Observations
5
5
df
4
4
F
2.260053619
P(F<=f) one-tail
0.224550666
F Critical one-tail
6.388232909
Table 2: F-Test Two-Sample for Variances
F-Test Interpretation:
Since F<Fcrit then automatically p>0.05.is considered. So, Sample doesn’t have equal
variance.
Summary
Count Sum Average Variance
Older Millennials
5
48
9.6
84.3
Younger
5
62
12.4
37.3
Millennials
Super Market
2
43
21.5
0.5
Metros Only
2
12
6
8
Exclusive Stores
2
33
16.5
4.5
Out Of India
2
9
4.5
24.5
Not Convenient
2
13
6.5
12.5
Table 3: Anova: Two-Factor without Replication
Source of
Variation
Rows
Columns
Error
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df
19.6 1
456 4
30.4 4
MS
F
P-value
F crit
19.6 2.578947368 0.183567 7.708647
114 15
0.01123 6.388233
7.6
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9
Table 4: ANOVA Summary
ANOVA Interpretation: The table value for v1=3 and v2= 3, where v1=( c-1) v2=(c-1)
(r-1) at 5% level of significance is 9.28.The calculated value is lower than table value, so there
is no significant relation between awareness availability medium and millennials .
Composite Method of Ranking: Knowing rank for motivational factor for using
organic food among millennials.
Rank Order
4
3
2
1
Mp
0.445
0.393
0.195
0.185
Zj
0.055
0.107
-0.305
– 0.315
Rj
0
0.052
0.25
0.26
Table: 5 Composite Ranking Method
Interpretation:
Graphically it can be seen this interval scale that has been derived from the paired
comparison data using composite standard method, is an area under normal curve.

Hypothesis Testing: Chi Square is used for testing the hypothesis.

H0: Awareness level is low for organic food under FMCG category in millennials.

Ha: Awareness level is high for organic food under FMCG category in millennials.
Oi
Ei
Oi - Ei (Oi - Ei )2 (Oi - Ei )÷Ei
27
23.1
3.9
15.21
0.658442
35
17.8
17.2
295.84
16.62022
14
38.8
-24.8
615.04
15.85155
34
30.1
3.9
15.21
0.505316
2
X
33.63553
d.f = (2 – 1) (2 – 1)
Interpretation:
Since the table value of X2 at 1 df at 5% LOS is 3.841, and calculated value is 33.63
which is higher than the table value of X2(3.841). Hence the null hypothesis H0 does not hold
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good. This means that alternative hypothesis Ha: “Awareness level is high for organic food
under FMCG category in millennials.” Stands proved.
Findings/Conclusion
Study reveals that there is sufficient knowledge among millennials on general level. But
under the surface they don’t have such information. They are very concerned about
surrounding, and inclination for purchasing found also high. One interesting fact came that
there is significant difference in opinion among fractured group of millennials which is
younger and older group.
Companies can canvas the organic food industry by maximum means of communication.
Communication impact was very low in sample. Knowledge gap was found low among
Millennials. Connotes, they know about organic food as a whole phenomenon. As companies
more penetrate the market, people will be more noticed.
References
1.
http://www.emeraldinsight.com/doi/abs/10.1108/07363761111101930 assessed on 11th
Nov 2015 at 3pm
2
."Green marketing: legend, myth, farce or prophesy?", Qualitative Market Research: An
International Journal, Vol. 8 Iss: 4, pp.357 – 370
3
.http://t.www.na-businesspress.com/JABE/Jabe103/FurlowWeb.pdf assessed on 18th
Nov 2015 at 8pm
4.
http://s104030255.websitehome.co.uk/organic_food_meanings
_full.htm#_Toc14471 221 assessed on 02 Dec 2015 3pm
5.
Deloitte Millennials survey India 2015
6.
http://www.coreperformance.com/knowledge/nutrition/organic-food.html
7.
Public secrets in public health: knowing not to know while making scientific knowledge
assessed on 02 Dec 2015 3pm
8.
Health-related determinants of organic food consumption in the Netherlands HNJ
Schifferstein, PAMO Ophuis - Food quality and Preference, 1998 – Elsevier
9.
Consumer motivations in the purchase of organic food: a means-end approach R Zanoli,
S Naspetti - British food journal, 2002 - emeraldinsight.com
10. Who are organic food consumers? A compilation and review of why people
purchase organic food RS Hughner, P McDonagh, A Prothero… - Journal of consumer
…, 2007
11. Exploring the gap between attitudes and behaviour: Understanding why consumers buy
or do not buy organic food M McEachern, C Seaman, S Padel… - British food …, 2005
- emeraldinsight.com
12. Who buys organic food? A profile of the purchasers of organic food in Northern Ireland
A Davies, AJ Titterington, C Cochrane - British Food Journal, 1995 13. Eating 'green': motivations behind organic food consumption in Australia S Lockie, K
Lyons, G Lawrence… - Sociologia ruralis, 2002 - Wiley Online Library
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Customer satisfaction in Retail Banking in Navi Mumbai
Dr. Latha Sreeram
Associate Professor – Finance
ITM Business School, Navi Mumbai
Email: lathas@itm.edu
CA Geetanjali Pinto
Associate Professor – Finance
ITM Business School, Navi Mumbai
Email: geetanjalip@itm.edu
ABSTRACT:
The advancement in technology has led to evolution in the Banking Industry.
Banks are now offering diversified products to their customers at competitive rate. In
addition to this, the economic recession has also led to change in perception of
customers towards banks. In India too, Banks have realised that there is a definite link
between positive customer experience and customer loyalty. Banks have also realised
that during the period of economic recession, there could be a dilution in the trust.
The purpose of this study is to measure the overall satisfaction of retail banking
customers and highlight the major factors that contribute towards the customer
satisfaction and also enhance the customer base. This study will also assess the factors
that will help in maintaining customer satisfaction in the moment of economic crisis. The
research method involved the survey of 225 customers of nationalized banks, private
banks and co-operative sector banks in Navi Mumbai. The study revealed that customers
are mainly concerned about certain features like interest rates, transaction cost,
benefits, access through internet, mobile and ease of transaction. It also revealed that
since the adoption of technology by customers is very poor, banks should encourage
customers to shift from the traditional form of branch banking to banking through the
mobile / internet which in turn will enable banks to improve the quality of their service.
Keywords: Retail banking, customer satisfaction
INTRODUCTION:
In India, Financial services industry is continuing to experience huge growth as
government and regulators come together to meet the Financial Inclusion target set by Reserve
Bank of India. The diversified products coupled with technological advancement has an
impact on expectations of customers. Banking industry is evolving to become very
competitive and they have initiated various servile initiatives to win customer loyalty.
In Banking industry relationship marketing plays a crucial role in its success as it is a
service oriented industry. There is a definite link between positive customer experience and
customer loyalty. Banks are vying for customer retention by trying to provide a positive
customer experience and evolving differentiated products and services at an affordable cost
and generating sustainable profits for their business. Since technology is reconceptualising the
relationship between the banks & customers, banks must understand the customer needs and
predilection towards distribution channels.
The banks must use their branches for initiating relationships rather than for routine
transactions which can be done through lower-cost, self-service digital channels. During this
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Omni channel transition, success hinges on making digital channels convenient and defectfree, and on converting branches to more sales-oriented purposes. Nordea, one of the largest
Scandinavian banks, has shrunk and modified its branch network so that only 45% of branches
now manually handle cash, down from 85% in 2009, and they focus instead on advice and
sales.
Indian banking sector is constantly expanding and improving with diversified patterns of
ownership due to an active participation of local and foreign stakeholders. This study has
been conducted in Navi Mumbai where there are totally 94 branches of public sector banks, 32
SBI and associated banks and 89 private sector banks.
The Objectives of The Study are as Follows:
1.
To measure the overall satisfaction of retail banking customers and highlight the major
factors that contribute towards the satisfaction scale and also enhance the customer base.
2.
To determine the opportunities that help in achieving and maintaining customer
satisfaction in this moment of economic crisis for fostering loyal customers
The study is specific only to nationalized banks, private banks and co-operative sector
banks in Navi Mumbai. The study covered factors such as transaction charges, specialized
services, personal contact, call centre competence, internet or mobile competence, financial
advisory role, range of products provided, proximity to the house, and transparency
procedures. The sample size of the study were 225 respondents selected from different banks
in Navi Mumbai. The questionnaire was tested for validity and reliability.
Literature Review
The concept of customer satisfaction of retail banking customers has been analysed for a
very long time now. Value creation and delivering to customers has been viewed with upmost
priority by all organisation and is considered very important for its long term sustainability.
Ivanauskiene et al. (2012), have assessed the factors of customer’s perceived value in
retail banking sector during the period of economic recession. This study revealed that in the
period of economic recession certain factors such as the reliability and security of bank, good
psychological climate when contacting with bank personnel, the quality of service provision,
the competence of contact personnel are rated higher by customers. Meanwhile, certain other
factors such as the established long-term relationship, personal beliefs, social integration, the
opinion and recommendations of relatives, acquaintances and/or friends are rated lower.
According to Kotler & Caslione (2009), customers have easier access to information,
and the life cycle of competitive advantages has shortened dramatically. Thus customers more
often consider switching the service provider.
Ankit Shah (2012), had carried out a research in Vadodara (Baroda), Gujarat (Western
India) to explore the major factors that lead to customer satisfaction in retail banking in India.
The paper also develops a conceptual framework of relationship marketing practices followed
by Indian banks by capturing the perspectives of customers with respect to their satisfaction
with various services. The findings revealed that customer satisfaction, a transaction-specific
attribute, is dependent on various factors viz.: services provided by the banks, risk and privacy
implemented by the banks, the image or personality of the banks, banking convenience,
pricing policies, charges levied and maintenance of relationship with the customers.
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According to Ms. Jayshree Chavan et al. (2013), customer satisfaction is a transactionspecific attribute and is dependent on many different factor viz.: Tangibility, E- fulfilment,
Convenience & Availability, Accuracy, Responsiveness, Empathy, Promptness, Personal
Assistance. Their study was specific only to public sector, private sector and co-operative
sector banks in Sangli and Solapur district in Western Maharashtra.
Data Analysis
In the research that follows, the number of individual consumers surveyed were 225 in
number. The respondents were surveyed on their relationships with their banks, their levels of
satisfaction, what they were looking for from the institutions, and their intentions and demand
going forward.
The survey was conducted from November 2013 to January 2014 in Navi Mumbai. Navi
Mumbai was selected as a region mainly because of Increase in level of commercial activity
and density of Bank branches.
Findings of the Study
Background of Respondents:
The survey was designed to seek details about the respondent’s age, gender, and their
views on impact of the global economic crisis. The findings of the study revealed that 77% of
the respondents are male and 23% are female. Of the total respondents 43.33% of respondents
are in the age group of 20-30 years. The next largest group of the respondents is in age group
of 31-40 years (27.33%). About 10.67% respondents are from the age group of 40-50 years.
12% of respondents are from age group of 51-60 years. Only 6.67% respondents are in age
group of 61 and above.
The survey details clearly indicated that 46% of the respondents hold 2 accounts and
more than a quarter of the respondents have 3 accounts. Though the longevity of the
relationship with the customer does not indicate maximization of business it is imperative to
maintain good relations with productive customers.
Impact of the Economic Crisis on Trust in Banks:
The loom of economic crisis has definitely lead to customers diversifying their exposure
and taking services from more than 1 institution due to dilution in trust. Further economic
crisis has led to decrease in trust World over. As far as India is concerned the economic crisis
does not have a profound effect of trust the customers have in banks as only 30.67% of the
respondents have replied in affirmative about the dilution in trust they have in banks. The
balance 69.33% have stated that the crisis has made no difference at all to the level of trust
they have in their primary bank.
Transactional Charges
Transaction charges and pricing of products are decisive for the viability of the bank.
It not only plays a crucial role in the margin but also provides a plethora of opportunities
for the bank. The current economic slowdown coupled with cost pressure and unlimited
expectations from the customers has made pricing a challenging task for the banks.
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Transaction charges are fixed by taking into consideration the degree of competition on one
hand and the regulatory constraints on the other.
The results of the study suggest that approximately one-fourth of the respondents are
dissatisfied with the fees and it plays a major role in influencing their decision to shift to
another bank. Furthermore the respondents have identified transaction charges as a crucial area
where there is scope for improvement.
Specialized Service
Banks being a part of service industry, and providers of undifferentiated services and
products have to strive to maintain service quality in order to maintain a comparative
advantage in marketplace.
Most of the banks rarely provide tailored products and services. In order to stay in the
lead of the curve and meet customer demands the focus must be Quality centric.
The survey results show that 30% of the respondents were not satisfied with the
specialized services provided by the banks indicating clearly that in the current scenario the
expectation on product offerings are not limited to no-frill accounts but ones that are
customized according to their personal circumstances and spending habits.
Personal Contact with Staff
With evolving technology and emerging alternate channels in the banking sector the
customer- bank relationship has become impersonal in contrast to the traditional branch
banking which provided affability in their relationship.
The results of the study indicate that 32.66% of the customers expect the banks to
improve the personal relationship with better use of tapping alternate channels of
communication. In this back drop it would be better for the Banks to scrutinize grievance
records, customer complaints etc. to track the difficulties faced by the customers. Banks can
monitor the social media and generate a holistic view of customers and aid in customer and
marketing support.
Call Centre
The current technology has led to consistent interactions between customers and the
banks. Customers expect that their doubts are clarified instantly and take umbrage if they have
to speak many times to restate the same information thus leading to a situation of erosion of
customer satisfaction. This is serious challenge to the retail banks especially if the services are
outsourced. The unsatisfied customer has a negative perception about the services of the bank
as he or she has no knowledge that the services are outsourced and perceived them as the bank
staff.
The findings of this study indicates that with respect to call centre services of banks, that
42% were dissatisfied with the call centre services and while 48% were satisfied and the
balance were very satisfied. This indicates that banks have to train their staff and develop their
business with their existing customer base whilst a number of the banks in Navi Mumbai are
not providing the level of service as per the customers’ expectations this will definitely impact
their bottom line.
Internet/ Mobile competance
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Banks have made significant progress from a physical world to a digital world.
However, the customers still have a choice to choose the channel that they would like to use
depending upon their needs and comfort level. Banks have a great opportunity to improve their
performance with the use of technology. Technology can be used by the banks to check
fraudulent account activity or for giving expert advice. The use of technology can help to
expedite the work of the customer. However at times slow or confusing technology interface,
may annoy the customers.
The Reserve Bank has expressed its disappointment over the lower-than-expected spread
of mobile banking in India, saying the awareness levels of this tool has been wanting. The
upward graph in usage of smartphone technology has led to a new distribution channel the
banks have to contend with. This combined with the spurt of social media have forced the
banks to monitor their performance and evolve loyal customers.90.47% of adults in the India
have a mobile phone, making this a all-pervasive channel for reaching customers. Many
customers are beginning to prefer the ease and efficiency of these alternate channels. Banks
are widening their reach by persuading the customers to use the lower-cost internet and mobile
channels. The results of this study have indicated that the overall adoption is marginally poor
except for usage of ATM services. Of the total respondents, only 34% use mobile banking
compared to ATM usage of 86.67% and personal visit to banks was 78%.
Financial Advisory Competance
This survey also focussed on customer satisfaction with respect to advisory competence
of the retail banks. The results of the study clearly indicated that 34% of the respondents were
not satisfied with the competence of the bank in providing financial advisory services. A few
of the respondents have communicated that they use the services of the bank in the last stage
after checking the social media and personal sources. Hence retails banks in Navi Mumbai
need to enhance the accessibility to a multiple range of secure information sources in the
process of financial advisory.
Range of Products or Services
Banks be it public or private offer diversified products including convenient banking
hours, mobile/telephonic banking, internet banking, life insurance, wealth and investment
products etc. Since all the banks have diversified their portfolio, there is tough competition
among all the banks. This in fact is beneficial for the customers, since the competition ensures
that the pricing of the products by different banks becomes extremely transparent.
Banks must not only offer different delivery channels but must also ensure that they are
well coordinated and deliver the right products through the right channels. Banks are taking a
huge risk of being left behind unless they adopt alternate proposal for providing wide variety
of products. Of the 225 respondents surveyed 21.33% used the banks for current accounts,
32% used the banks for Insurance products, 15.33% used it for mortgage and 32.67% used it
for credit card facilities.
The results of the study shows that 27.33% of the respondents are not satisfied with the
range of products provided by the bank indicating that the customers want a single platform to
meet all their financial needs.
Proximity of the Branch
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Proximity of the bank to the customer base was another factor which was surveyed. The
results connoted that this was the major factor that contributed to the satisfaction level at
90.67%. This has indicated that retail banks in Navi Mumbai have established branches closer
to their customers thus reducing the fatigue and the cost incurred to reach their banks. Thus of
all the factors that were analysed in checking the customer satisfaction distance from the
customer base has emerged as the key determinant. But this could pose a major threat to retail
banks in Navi Mumbai as residential areas are expanding rapidly but the banks cannot
establish new branches at that pace as it increases the cost structure significantly for the
concerned banks.
Transparency
Transparency in pricing of products offered by banks is essential in order to maintain
customer satisfaction. The clarity in pricing is also mandatory as laid down by the regulators.
The survey results signalled that more than half of the customers were not happy with the
transparency over pricing and some of the respondents have communicated that they have no
idea about the cost they pay to the banks annually.
Impact of Social Media
The emergence of social media has led to a new crisis that banks are forced to reckon
with. But it can be used constructively, by not using it for controlling its image but as a vital
contributor to develop its strategy of receiving feedback for their products and also as a means
for customer interaction. If the banks continue to hold it only as a source for information
dissemination then it will not be able to attract the younger generation of customers. The
results of this study reveal that most of the respondents use the medium for commenting on
their service at 36% followed by commenting on their service at 20% clearly indicating that it
is a powerful medium which cannot be ignored by the banks.
Conclusion:
Since the customers want the best product at the least price they are willing to
multi- bank. Customers are intensifying their search for the best rates, products and services.
Customers’ increasing willingness to change banks. With this background banks must design
financial products with latest features that customer’s value. Customers are mainly concerned
about certain features like interest rates, transaction cost, benefits, access through internet,
mobile and ease of transaction. However, for more complex products like portfolio
management, the customer’s dependency on the bank is based on quality of advice.
For any financial product, such as a current account, credit card, loan facility, etc., it is
important that there should be a correct balance between the price of the product and its value
to the target customer. It is also necessary that certain basic facilities should be offered in a
particular category of financial product to improve its credibility. They should spell out
clearly about their achievements, enabling the customers to know what they can expect from
the bank & improve the trust that they place on their bank. The customers’ further look for
branches of the banks and ATM vending machines should be present at convenient locations
such as near schools, railway station, hospitals etc. Banks should shift from the traditional
form of branch banking to banking through the mobile / internet. More and more services
should be provided through the online / mobile banking. Other than the traditional use of ATM
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for withdrawal of cash and checking account balance etc., ATM's can be put to use in more
innovative ways such as to book tickets or enabling cash transfer via smart phones etc.
Since a large number of people prefer to use internet /mobile as a channel for their
banking transactions, we suggest that the banks in Navi Mumbai should make more use of the
technology and also encourage more customers to adopt it. Further the concept of
segmentation can be applied in provision of differentiated products based on their age,
profession etc. paving the way for targeting a particular segment and catering to the needs
efficiently. This will also enable then to improve the quality of their services. Products can be
designed individually for High Net Worth Individuals, young adults, pensioners, low-income
group customers etc.
Banks should also strive to offer good quality of service consistently whether it through
mobile, internet or branch visit. Significance must be given to quality of service.
Understanding what the customers want will differentiate the winners from the losers in the
retail banking space.
REFERENCES:
[1] Abdullah Aldlaigan and Francis Buttle 2005, “Beyond satisfaction: customer attachment
to retail banks”, International Journal of Bank Marketing, Vol. 23 No. 4, pp. 349-359.
[2] Ankit Shah 2012, “Market Research On Factors Affecting Customer Satisfaction In
Retail Banking In Vadodara, Gujarat,Western India”, Bauddhik, Volume 2, No.-1, JanApril-2012, pp. 16-32.
[3] Gounaris, S.P., Tzempelikos, N.A., & Chatzipanagiotou, K. 2007, “The relationships of
customer-perceived value, satisfaction, loyalty and behavioral intentions”, Journal of
Relationship Marketing, 6(1), 63–87.
[4] Jayshree Chavan and Mr. Faizan Ahmad 2013, Factors Affecting On Customer
Satisfaction in Retail Banking: An Empirical Study. International Journal of Business
and Management Invention, Volume 2 Issue 1, pp. 55-62.
[5] Kotler, P., & Caslione, J.A. 2009, Chaotics: the business of managing and marketing in
the age of turbulence. New York, NY: AMACOM.
Krishnan M S, Ramaswamy V, Meyer Mary C and Damien Paul 1999, “Customer
Satisfaction for Financial Services: The Role of Products, Services and Information
Technology”, Management Science, Vol. 45, No. 9.
[6] Neringa Ivanauskienė, Viltė Auruškevičienė, Vida Škudienė and Šarūnas Nedzinskas
2012, “Customer Perceptions of Value: Case of Retail Banking”, Organisations and
markets in Emerging Economies, Vol. 3 No. 1(5), pp. 75-88.
Reserve Bank of India, Statistical Tables Relating to Banks in India – 2012-13,
www.rbi.org.in/scripts/AnnualPublications
[7] Yang, Z., & Peterson, R.T. 2004, “Consumer perceived value, satisfaction and loyalty:
the role of switching costs”, Psychology and Marketing, 21 (10), 799–822.
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The Applicability of Servqual Model to Improve the Customer Satisfaction
In Healthcare Sector
Prof. Sandeep L. Sarkale
Assistant Professor,
ASM’s IIBR
Pimpri, Pune, India
ABSTRACT:
Improvement of health care requires making changes in processes of care and service
delivery. Quality in tangible goods has been described thoroughly by marketers but quality of
intangible goods such as services has yet lot to be done. SERVQUAL as an effective approach
and its role in the analysis of the difference between customer expectations and perceptions
has been highlighted. SERVQUAL is presented by its authors as a measurement method of
quality which can be applied easily to the different service sectors. However, some attempts to
implement the model to areas different from the original ones have presented problems,
especially in respect of the management of the five dimensions, the number and the wording of
questions and the scale used. SERVQUAL instrument among several tools of measuring
service quality and patient satisfaction is the most widely used tool. On the basis of extensive
literature review, the paper outlines the importance of SERVQUAL is necessary to improve
the customer i.e. ultimately patient satisfaction.
Keywords: SERVQUAL, service quality, customer satisfaction
Introduction:
Health services include all services dealing with the diagnosis and treatment of disease,
or the promotion, maintenance and restoration of health. They include personal and nonpersonal health services.
Health services are the most visible functions of any health system, both to users and the
general public. Service provision refers to the way inputs such as money, staff, equipment and
drugs are combined to allow the delivery of health interventions.
Improving access, coverage and quality of services depends on these key resources
being available; on the ways services are organized and managed, and on incentives
influencing providers and users.
Service quality and customer satisfaction are very important concepts that organizations
must understand in order to remain competitive in business and hence grow. It is very
important for organizations to know how to measure these constructs from the consumers’
perspective in order to better understand their needs and hence satisfy them.
Good service delivery is a vital element of any health system and is crucial to the
achievement of health-related Millennium Development Goals. Service delivery is therefore a
fundamental input to population health status, along with other factors, including social
determinants of health. The precise organization and content of health services will differ from
one country to another, but in any well-functioning health system, the network of service
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delivery should have the following characteristics: comprehensiveness, accessibility,
continuity, people-centeredness, coordination, accountability and efficiency. This signifies an
coherent approach to health services organization in which primary, or first contact, level –
usually in the context of a local health system/district – acts as a driver for the health care
delivery system as a whole.
The main purpose of this study is to investigate the relationship between patient
perception of healthcare quality, patient satisfaction, and patient trust and the mediating effect
of patient satisfaction. Study aim also to test the significance of socio-demographic variables
in determining healthcare quality, patient satisfaction, and patient trust. Patient perception of
healthcare quality was measured using modified SERVQUAL model and results indicate that
it appears to be a consistent and reliable scale.
Patient satisfaction enhances hospital image, which in turn translates into increased
service use and market share (Andaleeb, 1988). Satisfied customers are likely to exhibit
favorable behavioral intentions, which are beneficial to the healthcare provider’s long-term
success. Measuring the degree of patient satisfaction can help facilitate hospital service
provision and management, as well as increase and maintain the quality of the service
provision. Patients’ quality perceptions have been shown to account for 17-27 percent of
variation in a hospital’s financial measures such as earnings, net revenue and asset returns.
In some literatures, customer satisfaction has been defined as a cyclical model which
explains the relationship between customer satisfaction and customer loyalty. According
McAlexander (2003) customer satisfaction is an antecedents of loyalty where as Compton
(2004) opined that the customer loyalty drives the expectation value that eventually drives the
value of customer satisfaction in future purchase (Compton, 2004).
The studies have clearly confirmed the Appropriateness of SERVQUAL dimensions as
distinct and conceptually clear. It is proved as simpler and more consumer centric compared to
other scales. The Perception – Expectations framework proved the existence of perception
differences between customers and service provides and the reality of perception differences
between consumers across countries due to cultural factors. Many authors of these studies
conclude that SERVQUAL meets all tests of rigorous and Appropriateness and suggest that it
is a perfect tool.
This paper endeavors’ to fill the gap in the service quality which determine customer
satisfaction and attitudinal loyalty literature by exploring the dimensions of customer
perceived service quality with that of the expected service quality in the context of the health
care sector.
Objectives of the study:
1.
2.
3.
4.
To determine the overall service quality perceived by consumers in grocery stores and
identify those dimensions that bring satisfaction to consumers.
To identify the most effective ways of closing service quality gaps and chooses which
gaps to focus on.
To evaluate the relationship between patient perceptions of healthcare quality, patient’s
satisfaction and patient trust.
To identify the most important dimensions of service quality that affects the customer
satisfaction in hospital.
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Expected deliverable/yield:
i.
The importance of customer satisfaction in healthcare sector through service quality
ii.
Depicting the significance of SERVQUAL model
iii. To study customer satisfaction through measuring the service quality
iv. Portraying the disparagement associated with SERVQUAL model in the measurement of
customer satisfaction
Review of Literature:
Many scholars and service marketers have explored consumers’ cognitive and affective
responses to the perception of service attributes in order to benefit by providing what
consumers need in an effective and efficient manner. Consumer satisfaction (e.g. Cadott et al,
1987; Churchill & Surprenant, 1982; Fornell,1992; Oliver, 1997) and PSQ (e.g. Parasuraman
et al, 1985, 1988; Rust & Oliver, 1994; Zeithaml et al, 1996) have been considered the
primary intervening constructs in the area of service marketing because ultimately they lead to
the development of consumer loyalty or re-patronization of a product or service. Service
quality is a central issue in services marketing and has been discussed in a Number of writings
even
before the well-known SERVQUAL research by Parasuraman et al. (1985).According to
Zeithaml and Bitner (1996) service quality is “the delivery of excellent or superior service
relative to customer expectations” .
Service quality is recognized as a multi-dimensional construct (Pollack, B., L., 2008)
and researchers have listed a variety of service quality determinants (e.g. Albrecht and Zemke,
1985; Parasuraman et al., 1985; Gro¨nroos, 1990; Johnston, 1997). Gro¨nroos (1984)
postulated two types of service quality: technical quality (i.e. what the customers actually
received from the service), and functional quality (i.e. the manner in which the service is
delivered). Consumer perception of service quality is a complex process. Therefore, multiple
dimensions of service quality have been suggested (Brady & Cronin, 2001).
One of the most popular models, SERVQUAL, used in service marketing, was
developed by Parasuraman et al (1985, 1988). SERVQUAL is based on the perception gap
between the received service quality and the expected service quality, and has been widely
adopted for explaining consumer perception of service quality. Originally 10 dimensions of
service quality were proposed (reliability, responsiveness, competence, access, courtesy,
communication, credibility, security, understanding the consumer, and tangibles). Later these
were reduced to five (reliability, responsiveness, empathy, assurances and tangibles).
Therefore, the patient is the center of healthcare’s quality agenda (Badri et. al.,2007). Scotti,
Harmon and Behson (2007) conducted a study that supports the argument that the perceived
quality is one of the determinants of patient satisfaction.
Above discussion signifies that patient i.e. patient satisfaction is directly implies to the
apparent service quality. Therefore, it is important to conduct a literature survey to determine
patient satisfaction to understand how the measurement of service quality.
Service quality and customer satisfaction:
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Service quality is a concept that has aroused considerable interest and debate in the
research literature because of the difficulties in both defining it and measuring it with no
overall consensus emerging on either (Wisniewski, 2001). There are a number of different
"definitions" as to what is meant by service quality. One that is commonly used defines service
quality as the extent to which a service meets customers’ needs or expectations (Lewis and
Mitchell, 1990; Dotchin and Oakland, 1994a; Asubonteng et al., 1996; Wisniewski and
Donnelly, 1996). Service quality can thus be defined as the difference between customer
expectations of service and perceived service. If expectations are greater than performance,
then perceived quality is less than satisfactory and hence customer dissatisfaction occurs
(Parasuraman et al., 1985; Lewis and Mitchell, 1990). Always there exists an important
question: why should service quality be measured? Measurement allows for comparison
before and after changes, for the location of quality related problems and for the establishment
of clear standards for service delivery. Edvardsen et al. (1994) state that, in their experience,
the starting point in developing quality in services is analysis and measurement. The
SERVQUAL approach, which is studied in this paper is the most common method for
measuring service quality.
Quality is one of the things that consumers look for in an offer, which service happens to
be one (Solomon 2009, p. 413). Quality can also be defined as the totality of features and
characteristics of a product or services that bear on its ability to satisfy stated or implied needs
(Kotler et al., 2002, p. 831). It is evident that quality is also related to the value of an offer,
which could evoke satisfaction or dissatisfaction on the part of the user. The aim of providing
quality services is to satisfy customers. Measuring service quality is a better way to dictate
whether the services are good or bad and whether the customers will or are satisfied with it.
The Distinction between Customer Satisfaction and Service Quality:
Customer Satisfaction
Service Quality
Customer satisfaction can result from any The dimensions underlying quality
dimension, whether or not it is quality related.
judgments are rather specific.
Customer satisfaction judgments can be formed Expectations for quality are based on
by a large number of non-quality issues, such as ideals or perceptions of excellence.
needs, equity, perceptions of fairness.
Customer satisfaction is believed to have more Service quality has less conceptual
conceptual antecedents.
antecedents.
Satisfaction judgments do require experience Quality perceptions do not require
with the service or provider.
experience with the service or provider.
Source: Service Quality and Customer Satisfaction: Antecedents of Customer’s Re-Patronage
Intentions, Fen Sheau Yap et al. (2007), Sunway Academic journal-4.
Customer satisfaction can be experienced in a variety of situations and connected to
both goods and services. It is a highly personal assessment that is greatly affected by customer
expectations. Satisfaction also is based on the customer’s experience of both contact with the
organization and personal outcomes. Some researchers define a satisfied customer within the
private sector as “one who receives significant added value” to his/her bottom line—a
definition that may apply just as well to public services.
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Customer satisfaction is the degree to which a customer perceives that an individual,
firm or organization has effectively provided a product or service that meets the customer’s
needs in the context in which the customer is aware of and / or using the product or service.
Satisfaction is not inherent in the individual or the product but is a socially constructed
response to the relationship between a customer, the product and the product provider /maker.
To the extent that a provider / maker can influence the various dimensions of the relationship,
the provider can influence customer satisfaction.
Importance of Customer Satisfaction Satisfying customers is one of the main objectives
of every business. Businesses recognize that keeping current customers is more profitable than
having to win new ones to replace those lost. Management and marketing theorists underscore
the importance of customer satisfaction for a business’s success (McColl-Kennedy &
Schneider, 2000; Reichheld & Sasser, 1990). Accordingly, the prestigious Malcolm Baldrige
National Quality Award recognizes the role of customer satisfaction as the central component
of the award process (Dutka, 1993).
SERVQUAL Model:
As stated earlier service quality has been defined differently by different people and
there is no consensus as to what the actual definition is. We have adopted the definition by
Parasuraman et al., (1988), which defines service quality as the discrepancy between a
customers’ expectation of a service and the customers’ perception of the service offering. The
SERVQUAL authors identified five Gaps that may cause customers to experience poor service
quality.
The five contributory factors of customer service:

GAP 1: Gap between consumer expectation and management perception: arises when
the management or service provider does not correctly perceive what the customers
wants or needs.

GAP 2: Gap between managemen0074 perception and service quality specification: this
is when the management or service provider might correctly perceive what the customer
wants, but may not set a performance standard.

GAP 3: Gap between service quality specification and service delivery: may arise
pertaining to the service personnel. This could arise due to there being poor training,
incapability or unwillingness to meet the set service standard.

GAP 4: Gap between service delivery and external communication: consumer
expectations are highly influenced by statements made by company representatives
and advertisements. The gap arises when these assumed expectations are not fulfilled at
the time of service delivery.

GAP 5: Gap between expected service and experienced service: this gap arises when the
consumer misinterprets the service quality.
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SerQual
Source Zeithami Parasuraman and Berry, Delivering Quality Service
According to this model, SERVQUAL scale has proposed by Parasuraman et al. (1988)
for measuring Gap 5. Parasuraman et al. (1985) mentioned ten factors for evaluating service
quality (including tangible, reliability, responsiveness, courtesy, credibility, security,
accessibility, communication and understanding the customer). These ten factors are
simplified and collapsed into five factors.
These five dimensions are stated as follows (Van Iwaarden et al., 2003; Shahin, 2006):
1)
Tangibles: Physical facilities, equipments and appearance of personnel.
2)
Reliability: Ability to perform the promised service dependably and accurately.
3)
Responsiveness: Willingness to help customers and provide prompt service.
4)
Assurance (including competence, courtesy, credibility and security): Knowledge and
courtesy of employees and their ability to inspire trust and confidence.
5)
Empathy (including access, communication, understanding the customer): Caring and
individualized attention that the firm provides to its customers.
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Fig: Five dimensions of service quality Parasuraman et al., (1985), Zeithmal et al.,
(2002); Yang & Fang (2004); Liu & Arnett (2000); Riel et al.(2001), Delone and Mclean
(2003)
Factors affecting Customer Satisfaction:
Matzler et al., (2002), went a step forward to classify factors that affect customers’
satisfaction into three factor structures;
1.
Basic factors: these are the minimum requirements that are required in a product to
prevent the customer from being dissatisfied. They do not necessarily cause satisfaction
but lead to dissatisfaction if absent. These are those factors that lead to the fulfillment of
the basic requirement for which the product is produced. These constitute the basic
attributes of the product or service.
2.
Performance factors: these are the factors that lead to satisfaction if fulfilled and can
lead to dissatisfaction if not fulfilled. These include reliability and friendliness.
3.
Excitement factors: these are factors that increase customers’ satisfaction if fulfilled
but does not cause dissatisfaction if not fulfilled which include project management.
Criticism of Servqual Model:
Criticisms of SERVQUAL
Notwithstanding its growing popularity and widespread application, SERVQUAL has
been subjected to a number of theoretical and operational criticisms which are detailed below:
Theoretical criticisms:

Paradigmatic objections: SERVQUAL is based on a disconfirmation paradigm rather
than an attitudinal paradigm; and SERVQUAL fails to draw on established economic,
statistical and psychological theory.

Gaps model: there is little evidence that customers assess service quality in terms of P –
E gaps.
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Process orientation: SERVQUAL focuses on the process of service delivery, not the
outcomes of the service encounter.
Dimensionality: SERVQUAL’s five dimensions are not universal; the number of
dimensions comprising service quality is contextualized; items do not always load on to
the factors which one would a priori expect; and there is a high degree of inter
correlation between the five dimensions (Reliability, assurance, tangible, empathy and
responsiveness).
Operational criticisms

Expectations: the term expectation is polysemic meaning it has different definitions;
consumers use standards other than expectations to evaluate service quality; and

SERVQUAL fails to measure absolute service quality expectations.

Item composition: four or five items cannot capture the variability within each service
quality dimension.
Conclusion:
In the era of globalization, competition has become a key issue in all sorts of industry as
well as service sectors. Literature survey suggests that patient satisfaction and perceived
service quality both should be considered together for the stability of a health care
organization in a competitive environment. Researchers have suggested different models and
methods of measuring patient satisfaction considering service quality as one of the
antecedents. Different literatures established that SERVQUAL is a popular model for
measuring service quality where as some other researchers pointed out its draw backs.
Although many limitations of SERVQUAL approach have been identified by different
researchers, the same instrument is applied in different health care organization for measuring
service quality and patient satisfaction. Therefore, it is required to go deeper into the subject
matter of the applicability of SERVQUAL model in Indian context.
The absence of objective measures to assess the quality of services increases the degree
of complexity in relation to its assessment. There are several models proposed in the literature
to evaluate such an attribute, during and after the experience of acquisition, ranging in
numerical representation, principle characteristics and conclusions about their applicability. In
this article, the employment of an evaluation model developed in the context of marketing and
applied to the area of health demonstrates the growing concern of health institutions and
professionals themselves regarding user satisfaction. Furthermore, it reinforces the possibility
of using existing models, adapting them to the health segment, in order to obtain a model that
most closely approximates the reality of these services. The monitoring of the quality of
services, according to the various existing models, not only permits the planning of assertive,
highly effective strategies of intervention, but also the monitoring of the responses to these
actions, contributing to scientific and technological advances.
Following major Conclusions are drawn after careful analysis of data and discuss these
of:

This study is helpful in the identification of factors that determine customer satisfaction
with the quality of services provided in healthcare organization.

In order to improve service quality, it is necessary to contact employee and take a
feedback from patients regularly and assess their service experiences.
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Reliability, competence, courtesy, tangibles, assurance and credibility factors are
considered most important by patients. These factors determine customer’s satisfaction
in any hospital and may be different from determinants of satisfaction with healthcare
sector as a whole.
Determinants identified are Reliability, competence, courtesy, tangibles, assurance and
credibility apart from these factors there are some others also which may also play an
important role in understanding of service quality such as communication, security,
responsiveness, empathy and access.
The study thus provides a direction for healthcare whereby areas for improving services
may be identified and user (patient) satisfaction, specifically in hospital, may be
enhanced. Like the external customers, an internal customer too considers categories of
service attributes, such as reliability and responsiveness, in judging the quality of
internal services.
With the knowledge of the internal service quality dimensions, the service organizations
can then judge how well the organization or employee performed on each dimension and
managers could identify the weakness in order to make improvement. Indian hospitals
need to concentrate on reliability and responsiveness, the dimensions of service
The significant gaps and importance was associated to reliability, responsiveness,
empathy and all servqual dimensions implying that the health center is still only “cure
centre” and not “care centre”. Leadership should be committed to create a service
oriented culture that permeates to all levels of the organization.
Scope of Future Work:
This study largely focused on SERVQUAL being the measurement tool for measuring
the service quality. With the development of healthcare industry, some areas which are not
covered in this study are interesting and need to be explored. In addition, the limitation and
shortcoming of this study also provide implications for future research. Future research could
add extensions to this study. This research needs further analysis. While this research yields a
number of very interesting results, we believe that there are a number of things that should be
done to confirm our results. Firstly medical tourism in India contributing maximum percentage
all over world which gives the financial support to government and also decreasing the
unemployment problem. Secondly, education in medical science is now more advantageous to
improve knowledge and standard. Thirdly, healthcare industries are in competitive global
market to give a service all over India. At the end, in this competitive market, service quality
is one of the key elements which bring customer satisfaction.
This paper has raised several conceptual and operational difficulties surrounding
SERVQUAL which are yet to be resolved. The following represent a set of questions which
SQ researchers should address:
(1) Do consumers always evaluate SQ in terms of expectations and perceptions? What other
forms of SQ evaluation are there?
(2) What form do customer expectations take and how best, if at all, are they measured? Are
expectations common across a class of service providers?
(3) Do attitude-based measures of SQ perform better than the disconfirmation? Model? Which
attitudinal measure is most useful?
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Is it advantageous to integrate outcome evaluations into SQ measurement and how best
can this being done?
What are the relationships between SQ, customer satisfaction, behavioral intention,
purchase behavior, market share, word-of-mouth and customer retention?
References:
[1] Ali Dehghan, Service Quality & Loyalty: A Review, ISSN 2052-2576, Vol. 1, No. 2,
2013
[2] Chingang Nde Daniel Lukong Paul Berinyuy, Using the SERVQUAL Model to assess
Service Quality and Customer Satisfaction
[3] C.N. Krishna Naik, Swapna Bhargavi Gantasala, Gantasala V. Prabhakar, Service
Quality (Servqual) and its Effect on Customer Satisfaction in Retailing, European
Journal of Social Sciences – Volume 16, Number 2 (2010)
[4] Dr. Ranajit Chakraborty, Anirban Majumdar, Measuring consumer satisfaction in health
caresector: the applicability of servqual, Journal of Arts, Science & Commerce.
[5] Dr. M.Basheer Ahmed Khan, S.Raghunandan, Servqual Revisited. A systematic review
of literature, International Journal in Multidisciplinary and Academic Research
(SSIJMAR), Vol. 2, No. 2, March-April (ISSN 2278 – 5973)
[6] Dr. Arash Shahin, SERVQUAL and Model of Service Quality Gaps: A Framework for
Determining and Prioritizing Critical Factors in Delivering Quality Services
[7] Dinesh Amjeriya, Rakesh Kumar Malviya, Measurement Of Service Quality In
Healthcare Organization, International Journal of Engineering Research & Technology
(IJERT) Vol. 1 Issue 8, October - 2012 ISSN: 2278-0181
[8] Emrah Cengiz, Measuring Customer Satisfaction: Must Or Not? Journal of Naval
Science and Engineering 2010, Vol. 6 , No.2, pp. 76-88
[9] Francis Buttle, SERVQUAL: review, critique, research agenda, European Journal of
Marketing 30, 1- Received October 1994 Revised April 1995
[10] K. Ravichandran, B. Tamil Mani, S. Arun Kumar, S. Prabhakaran, Influence of Service
Quality on Customer Satisfaction Application of Servqual Model, International Journal
of Business and Management, Vol. 5, No. 4; April 2010
[11] Mileide Morais Pena, Edenise Maria Santos da Silva, Daisy Maria Rizatto Tronchin,
Marta Maria Melleiro, The use of the quality model of Parasuraman, Zeithaml and Berry
in health services.
[12] Parasuraman, A., & Grewal, D. (2000). The Impact of Technology on the QualityValue- Loyalty Chain, A Research Agenda. Journal of the Academy of Marketing
Science, 28(1), 168-174.
[13] Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Refinement and Reassessment
of the SERVQUAL Scale. Journal of Retailing, 67(4), 420-450. Parasuraman, A., Berry,
L. L., & Zeithaml, V. A. (1994). Alternative Scales for Measuring Service Quality: A
Comparative Assessment Based on Psychometric and Diagnostic Criteria. Journal of
Retailing, 70(3), 201-308.
[14] Parasuraman, A., Zeithamal, V. A., & Berry, L. L. (1988). SERVQUAL: A MultipleItem Scale for Measuring Consumer Perceptions of Service quality. Journal of retailing,
64(1), spring.
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[15] Ygge, B.; Arnetz, J. (2001), Quality of paediatric care: application and validation of an
instrument for measuring parent satisfaction with hospital care. International Journal for
Quality in Health Care; 13(1): 33-43.
[16] Zineldin M (2006). The quality of health care and patient satisfaction.Int. J. Health Care
Quality Assurance, 19(1): 60-92.
Web Resources:
Source: Boundless. “The Gap Model.” Boundless Marketing. Boundless, 21 Jul. 2015.
Retrieved 02 Dec. 2015 from https://www.boundless.com/marketing/textbooks/boundlessmarketing-textbook/services-marketing-6/service-quality-51/the-gap-model-254-4140/
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The Study of Consumer Behavior of Winery Industry in Nasik
RajuRamdasGhandas
Research Scholar
ASM’s IBMR Research Centre, Pune, India
ghandas.raju@gmail.com
Prof. (Dr.) OmprakashHaldar
Professor
Dr. D Y Patil School of Management
Lohegaon, Pune, India
ABSTRACT:
Wine is just not a drink; it’s a complete life style drink. Until recently most of the
Indian consumers were unable to relate themselves to wine but off late a few have been
able to associate with it. Increasing health consciousness and spend on corporate and
personal entertainment has given a boost to wine industry. Thus the area of attributes
influencing wine purchase decision behavior is chosen as the scope of study for the
paper
Indians, comparative to other western countries, barely consumes wine, they
prefer to have liquor which has a high percentage of alcohol. Indian wine market is
growing at 30% per annum and metros like Mumbai, Bangalore and Delhi produce
80%wine consumers in India. Wine Industry in Nasik plays a vital role as Nasik is
known as wine capital of India, most renowned vineyards of the country are located
here.
Keywords: -Indian consumer, Wine Industry, Wine capital, Nasik
1
Introduction
1.1
The Wine Industry in India
In India the three major wine producing regions are Maharashtra, Karnataka and
Himachal Pradesh. Of these, Maharashtra is the largest producer and consumer of wine. After
a decade of steady growth from 2000 to 2010, India‘s wine production dropped from 13.0
million liters (ML) in 2010 to 11.0 ML in 2011 and improved slightly in 2012 to 11.5 ML (1.3
million cases). The wine production estimates of Maharashtra and Karnataka is 14.2 ML (1.58
million cases) in 2014, as cooler temperatures during February and March improved grape
yields and quality. The expanded production of key wineries has steadily raised the production
of Karnataka and was estimated at 5 ML (555,000 cases), a jump of 1.3 ML (145,000 cases)
from the previously. [1]
The decrease in wine production was mainly due to growers switching to table grapes
and other crops, change in consumers drinking habit, drop in tourism, high land cost and state
level land ceiling, wine policies and rupee devaluation. Even with all these obstacles the
governments of Maharashtra and Karnataka have supported domestic wine industries by
relaxing excise duties on local wines, easing distribution restrictions and providing fiscal
incentives to establish wineries and vineyards, imposing excise taxes on imported and wines
from other states. Especially Maharashtra has eased the license requirements and regulations
for establishing wineries and wine retail outlets and established two wine industrial parks to
facilitate investment in the industry [2]
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1.1.1 Wine consumption
India ranks 77th in terms of world wine consumption. The per capita consumption in
India is only 0.07 L/person/year. The country accounts for 0.8% of the total wine consumed in
Asia. In India 80% of wine consumption is confined to major cities such as Mumbai (39%),
Delhi (23%), Bangalore (9%) and Goa (9%) [3]. Major factors adding to the higher wine
consumption are growing population, higher disposable incomes, relaxation on government
regulation and policies. Red wine is the most popular type of wine consumed in India followed
by white and Rose wines. The consumption pattern of wine varieties is as follows: red wine
accounting for 45% of consumption followed by white wine at 40%, sparkling wine at 10-15%
and rosé at 1-5%. There was an increase of 16.3% wine consumption between 2012 and 2013.
More than 61% of wine consumption is of red category and is expected to grow by 71.6%
between 2013 and 2017. In 2013 it was reported that 0.93 million cases of Indian wines were
consumed as against to 0.28 million cases of imported wines [4]. Wine consumption appeared
to be nil from 2000-2002 and improved slightly in a progressive manner from 2003, dropped
in 2009 and slightly improved in 2010 and then the consumption levels reached gradually to
15 ML in 2014
The Indian wine industry is in its nascent stage. The per capita consumption of wine in
India is only 10ml per annum as 100liters per year in Argentina and 65 litres in the European
country. However, the Indian wine industry has been continuously growing over the last ten
years. Awareness about the benefits of wine drinking is also on rise and wine is gradually
becoming a part of urban Indian life style. Rising of Indian population and exposure to new
culture is adding to the higher consumption.
The share of wine in total alcoholic beverage market in India is 0.14% with a total
consumption of about 13.6 lack litres per annum during FY 00. The Indian wine industry is
growing @25-30% per annum for the last 5 years and consumption has gone up to 20 lack
litres during FY 04. The %age of imported wine to total wine consumption in the country has
gradually decreased from 56% in FY 00 to 39% in FY 04.Most of the importers wine segment
is fragmented over 1000 labels from various countries, mainly from France.
As per the types of wine consumed, red wine has the largest market share (455 of total
wine consumed)followed by white wine(40%), Delhi (30%), Goa(8%),& Bangalore(6%)
contribute about 85%of total wine consumption.
1.1.2 Wine exports
Cabernet Sauvignon, Sauvignon Blanc and Chenin Blanc are the export quality wines to
raise the stature of Indian wine in the global market. China, Singapore, Japan, Nepal and
Bhutan are the potential markets for Indian wines and is gaining greater acceptance in US and
France also. Presently, Indian wines are largely being imported by Malaysia, UAE, Bhutan,
Germany, UK, Sri Lanka, Maldives and New Zealand. There was a modest rebound of 2.6 ML
in Indian wine exports during 2010 and had reached 739,000 L (2,100 cases) in 2012. The
country’s wine export was accounted for about 80 to 100 crores and is expected to increase
by 500 crores in the next five years [5]. India has the potential to become one of the major
exporters of wine not only in Asia but also the world because of innovativeness in wine
quality and marketing. According to the data of Ministry of Commerce, wine exports in 2013
were approximately 1.8 ML valued at nearly US $7 million. In the first seven months of 2014,
exports have increased by 20% especially for sweeter wines to Bhutan and Vietnam and
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export sales have grown by almost 40% by value compared to 2013 and have reached nearly
US $ 4.4 million [1]
1.1.3 Wine imports
Current Indian reported trade data suggests that the top three wine suppliers to India are
France, Australia, and Italy and wine imports from “New World” wine countries is growing
especially for Australian, American, South African and New Zealand products while imports
from France and Italy have fallen [6]. After the setbacks of 2001 and 2008 due to the ban on
imported wines and Mumbai terror attacks, there was a huge drop in Indian wine imports.
Sales of imported wine are through hospitality (63%) and retail (30%) sectors, the two major
marketing segments [7]. There was an increase in wine imports since 2009 and reaching a high
of 44,000 HL in 2011 and are on pace to match that level in 2012. The Indian Ministry of
Commerce reports the wine imports in 2013 equaled nearly 4 ML and totaled almost US $25
million.
1.1.4 The Indian consumer
As more and more Indians travel overseas for business and pleasure, adopt new lifestyle
pattern and yearn for the good thing in life, domestic wine consumption too gas
correspondingly increased. City dwellers still remain the major guzzlers, prices
notwithstanding.
Realizing the need to nurture a trend of drinking wine, vineyard are going all out by
organising plantation visits, informative facility tours combine with tasting sessions. These
impart the nitty gritty of selecting and appreciating a wine as also the correct way to drink it.
Enthusiasts are taken through the routing of “see, swirl, smell and sip” with the beautiful
ambience of the vineyard this exercise is a sure fire winner. Experts on hand also suggest the
best red to go with the tandoori chicken. Thus emerges a long-term friendship with the
beverage.
For those keen to enjoy a glass or celebrate there is no need to venture to a pub or
restaurant as retail stores too have begun to stock wines.
1.1.5 Engineering success
Put very simply wine is fermented fruit juice. Yet producing bottle after bottle of the
perfect spirit demands state of the art winery and equipment. Establishment big wineries often
imported machinery from Europe. Indian firms too have acquired necessary expertise to
machinery necessary for wineries. Data cone wine machineries pvt.ltd is one such firm.
Established too are now going in for cooling system and fermentation tanks manufactured in
India.
1.1.6 A support hand
The government of Maharashtra too is chipping in to support the wine industry. It has
awarded wineries the status of food processing industry instead of alcoholic beverage and has
also abolished excise duty on wines. Maharashtra industrial development corporation (MIDC)
has setup wine parks at Sangli and Nasik .
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1.1.7 Let the good time roll
Though doctors continue to research ad debate health benefits of the beverage, the wine
industry has every reason to rejoice. Industry experts predict India to emerge as one of the
largest wine producer in the world.
1.1.8 Localisation of the Wine Industry:
The following are the major wine producing regions in the country:
1.
Nashik Region (Maharashtra)
2.
Sangli Region (Maharashtra)
Most of the Indian wineries are located in these two regions including the largest
Chateau Indage and Sula Vineyards. Chateau Indage is a winery located in Narayangaon,
which is located close to Pune. Sula Vineyards is situated in Mumbai. There are 54 wineries
across the country. Out of them, 52 wineries are in Maharashtra, including 28 wineries in
Nasik district, 8 in Sangli, 9 in Pune, 3 in Solapur, 2 in Buldhana and 1 in Usmanabad. The
Maharashtra Industrial Development Corporation has set up two Wine Parks in the State:
Vinchur, near Nasik (151.36 Hectares) and Palus, near Sangli (53.70 Hectares).
3.
Bangalore Region (Karnataka)
The third largest wine producer of India, Grover Vineyards has its winery situated in this
region.
4.
Himachal Region (Himachal Pradesh)
Chateau Indage has planted merlot, cabernet and sauvignon blanc grape varieties in
Kullu and Manali where it is planning to get into production in three years.
1.1.8.1 Major Indian Wine Companies:
Most of the wineries in are located in Nashik in the state of Maharashtra in the south
west of India. At present, India has about 60 wineries with an estimated investment of about
USD 60 million.
The following three wine companies are the major wine producing companies in India:

Chateau Indage Limited, Pune: This is the largest, both by volume as well as
valuation. They are the pioneers of the wine industry in India with their wineries at
Narayangaon (on the Pune – Nashik road), Indage launched the sparkling wine Marquise
de Pompadour in 1986, Riviera soon after, and Chantilli in 1989. They were also the first
to make ‘Bottled in India’ wines which has since been discontinued.

Grover Vineyards Limited, Bangalore: This was set-up near Bangalore in 1989 after
the promoters tested soil and climatic conditions in various locations – including their
native Maharashtra – and settled on the area north of Bangalore as being ideal. Their
first wines were launched in 1992, and the company has remained remarkably focused
on delivering good value wine.

Sula Wineyards, Nasik: This was the first marketing-savvy wine company. Sula is also
the only Indian wine company to be present in all price and product segments.
The following are the other top Indian wine companies:

Sankalp Wines: Their Vinsura wines (launched in 2003) are now available throughout
India. They are based in the Vinchur Wine Park outside Nashik.

Renaissance Wines: This is located outside Nashik and has excellent packaging and
very drinkable wines.
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ND Wines: This is also located outside Nashik.
Vintage Wines: They produce the best wine in India today – while their production is
tiny (some 100,000 litres in 2006) their regular range (Chenin Blanc, Syrah, Chardonnay
& a Cabernet Sauvignon) sold under the Reveilo label has won critical acclaim.
Mandala Valley: This is a Bangalore-based company that has produced its first wines in
2006 under contract in Maharashtra, at the Solapur –based Mohini Wineries. The
company has also set up vineyards in Karnataka.
Flamingo Wines: This is the second winery in the Vinchur Wine park outside Nashik,
and produces a reasonable range of wines – but has been struggling to establish sales &
distribution and has sold little of their wines so far.
Vinicola: This is in Goa, and it makes a wide range of wines using traditional
techniques, and sells the resulting product largely in Goa, with a volume exceeding
75,000 cases annually.
1.1.8.2 Other Wineries:

Girana Valley Wine Yard

Indogrape Winery

Kalyani Wines and Beverages

Maharaja Winery

Mohini Wineries

Sahayadri Hills Vineyards

Shivprasad Wines

Bosca (baramati grape industries)

Bluestar winery

Dajeebah wines (datacone wine industry)

N.C. Fine wines

Prathmesh wines

Princess (in-vogue creations)

Pyramid wines

Rajdheer wines

Sailo wines

Saikripa winery

Shaw Wallace

Vinbros & Co.
1.2
Scope & Significance –

The scope of study extends to the Renaissance Winery pvt.ltd. Nasik. The study will
provide information to the company regarding the performance & choice of customer
towards the product.
The scope is very important tool to know about a consumer’s attitude towards quality,
easy availability, performance, features & most important price
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The scope of study is not limited only with the judgment the level of customer
satisfaction of the winery industries; it comes to know the knowledge regarding the
customer attitude & other foremost factor of buying preferences.
The study also provides the essentials information regarding the consumer or end users
area of their dissatisfaction and the area of focus, so as to achieve the good market share.
The study will enable the company in improving the promotional activities to capture
good and huge sales.
2.
Objectives of the Research Study:
2.1
Main Objective –
To study the consumer buying behavior for Renaissance wine.
To identify the buying pattern of consumer.
To study customer perceptions about product.
To known the consumption pattern for Renaissance wine.
To find out the factors which influences the buying behavior.
To study factors considered for purchase of wine.
To get feedback and Information about company from management & customers.
1.
2.
3.
4.
5.
6.
3.
3.1
Research Methodology of the Study:
Research Design - Empirical Research – This study will be based on experiences,
observation and data collected & analysis thereafter and the area of the study is Nasik.
3.2. Population – Customers who visited winery for purchasing wine – 100 nos.
3.3
Sample Design3.3.1 Main Study

Sample Size – 100 respondents

Target Area– Nasik City

Sampling Technique - Convenience sampling & Simple Random Sampling
3.4


3.5
I.
II.
III.
IV.
Data Collection Methods –
Primary data-Interviews &Questionnaire, Survey
Secondary data-Journals, Magazines, Periodicals, Annual reports, Bulletins and websites
Limitations:
The study was limited to few customers in NASIK city and its nearby area only
The time frame considered is very limited. In the time period of 2 months analysis of the
trend of the entire company is comparatively difficult.
Few of the respondents were ignorant for survey.
Study conducted of the consumers who visited the Renaissance winery outlet.
3.6
Assumption of the study:
Winery industry customer’s expectations and preferences will help the Wine producers
to define their strategies and offerings to satisfy the customers belong to Nasik City.
4
Analysis and Findings:
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4.1
The 100 total respondents’ include16% women and 84% men.
Age group
21-34 35-44 45-54 55-64 >65
% of Respondent 45
18
17
13
7
Out of 100 respondents 45%consumer are from 21-34 age group.18% consumer are
from 35-44 age group, 17%are from 45-54 group, 13% are from 55-64 age group and 7% are
from more than 65age.
It shows maximum consumer are from 21-34 age group and minimum are from more
than 65 age group
4.2
Occupation of the respondents
Occupations
No. of Cars
Engineers
10
Doctors
6
Farmer
18
Student
11
Business Executives
30
Govt. Employees
25
Total
100
Out of 100respondents 10%consumer are Engineers,6% are Doctors,18%are Farmer,
11% are Student,30% are Business Executives and 25% are Govt. Employees.
It shows maximum consumer are Business Executives & Govt. Employees
4.3
Income of respondents
Income in Rs./month 0-25000 25000-30000 30000-35000 35000-40000
% of Respondents
6%
14%
37%
43%
Out of 100 respondents 43% consumers are having income more than 35000-40000 per
month.37%consumer having income between 30000-35000, 14% consumer having income
between 25000-30000 & only 6%consumer having income less than 25000.
4.4
respondents living in Nasik or out of Nasik
Attributes No. of Respondents % of respondents
Yes
72
72%
No
28
28%
Total
100
100%
Out of 100 respondents 72% living in Nasik and rest of live out of Nasik.
4.5
Favorite wine of consumer
Brand name
White Red
No. of Respondents 25
75
% of respondents
25%
75%
Out of 100 respondents 75 % consumer prefer Red wine,25% white. It shows red wine is
the most famous.
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4.6
Frequency of consumers consume Renaissance wine
Period
Daily Weekly Monthly Occasionally
%of respondent 23% 22%
45%
10%
Out of 100 respondents 45%consume wine Monthly,23% consume wine daily,22%
consume wine weekly, remaining 10%consume Occasionally. It shows most of consumer
consume Renaissance wine Monthly.
4.7
Reason (Time) of consumption of wine
Time of consumption % of respondents
Formal part
12%
Informal party
8%
In Stress
15%
Family get-together
20%
Festival
20%
With friends
25%
Out of 100 respondents 12% consume wine in formal party,8% consume wine in
informal party,15% consume wine in stress,20% consume in family get-together,20%
consume in festival & remaining 25% are consume wine with friends.
It shows most of respondents consume wine with their friends.
4.8 Quantity of consumption
Quantity
% of consumption
30ml
18
60ml
50
90ml
22
More than quantity specified 10
Out of 100 respondents18% consume wine 30ml,50% consume 60ml,22% consume
90ml & remaining 10% are more than quantity.
It shows most of respondents consume 90ml.
4.9 Factors affecting purchase decision
Attributes
Taste Brand name Price Quality Total
No. of respondents 32
45
7
16
100
% of respondents
32% 45%
7%
16%
100%
Out of 100 respondent 45% consumer take a purchase decision on the basis of brand
name, 32% on taste &16% quality &7% on price.
It results most of consumer taken decision on the basis of brand name.
4.10 Awareness of renaissance wine
Source
Friends Wine shop Hording Internet Advertisement Preferences
keeper
Groups
% of
28
25
15
12
8
12
Respondent
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Out of 100 respondent 28% consumer are aware of renaissance wine from friends, 25%
from Wine keeper, 15% from Hoardings, 12% from Internet, 80% from Advertisement &
12%from Preferences Groups.
It results most of consumer are aware from Friends.
4.11 Prices of Wine at Renaissance winery
Rate
Lower Ok Higher
% of Respondents 27%
59% 14%
Out of 100 respondents 59% customers think that prices of wine at Renaissance winery
are “OK”, 27% think Price is “Lower” than the other whereas only 14% think that the prices
are “Higher”
4.12 Customers view about Renaissance winery location
Views
Good Better Best Can’t tell
Location 35
15
45
5
Out of 100 respondents 35% Customers responded as Good to the Location of
Renaissance winery, 15% responded Better, 45% responded as Best. Most of the Customers
responded as Best.
4.13 Mostly preferred company
Wineries
Renaissance wine N.D .wine Sula wine Sanklecha wine Other
% of respondents 45%
8%
38%
5%
4%
This graphical presentation shows the majority of Renaissance wine in Nasik city. 45%
consumers are purchase the Renaissance wine,8% consumers are purchase the N.D. wine,38%
consumers are purchase the Sula wine,5% consumers are purchase Sanklecha wine & others
are purchase the Other wine.
4.14 Taste of Renaissance wine.
Attributes
Excellent Good Average poor Total
% Of Respondents 42%
23% 17%
18% 100%
Out of 100 respondents 42% consumer think taste of Renaissance wine is excellent,
23% good, 18%poor & 17% think that is average.
If show most of consumer judge the Renaissance as an excellent wine.
4.15 How Renaissance wine differs from other wine brand.
Attributes
smoothness Quality/taste Smell Status style Total
% of Respondents 12%
52%
15% 21%
100%
Out of 100 respondents 52% consumer have opinion that Renaissance wine has more
demand of quality or taste, 21% because of Status, 15% because of smell & 12%because of
Smoothness.
It shows that Renaissance wine is different from other wine brand because of Quality.
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4.16 Overall response of renaissance wine
Remark No. of respondents % of Respondents
Excellent 30
30%
Good
36
36%
Average 26
26%
Poor
8
8%
Total
100
100%
From the above graph 30% respondents give excellent response for Renaissance
wine.36% give the goo mark & 26% hive the average remar,8% give the poor remark for
Renaissance wine.
5.



Suggestions :
Now a day, Indian wine industry is growing rapidly, for development, growth & survival
in the competition; they should improve their performance in the week areas like launch
more product which are attract to the buyers, show the more benefits of wine.
To arrange the cultural programmes, wine exhibitions, shows, demos in the companies,
hotels campus area in which the information of the existing & up-coming products is
given for awareness of the customer.
To expand the sales area of Renaissance wine in other cities and also to introduce wine
in international market.
Conclusion:
The Indian wine market has witnessed promising growth since last five years. But, there
are still lot more exciting challenges ahead. The Indian market and research institutes should
concentrate on storage, transport facilities, wine exports, promotion through media campaigns
and wine festivals, environmental issues, production technology, plant health management, pre
and post-harvest technology, climatic changes.
Extensive analysis has done on behavior of wine consumers situated in Nasik City only.
At the end of the study, Wine industry customer’s expectations, taste and preferences
effectively investigated which will help the wine producers to define their strategies and
offerings to satisfy the customers belong to Nasik City and same can be predicted for the other
part of India.
6.
7.
[1]
[2]
[3]
[4]
References:
Dhruv S, Adam B (2014) Wine production and trade update. USDA Foreign
Agricultural Service, GAIN Report Number IN4095, Global Agricultural Information
Network.
Sathish BS, Chandra S (2012) Wine marketing an untamed market in India. Radix Int J
Res Soc Sci 1: 1-17.
Thaliath A, Kumar DN (2014) Impact of quality factors and internal factors in the
buying decisions of wine patrons: Critical factors in bench marking wine tourism
development and management. Int J Recent Scientific Res 5: 1091-1097.
Bhaduri S (2014) Wine consumption in India to increase 73.5% in four year.
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[5]
[6]
[7]
[8]
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APEDA (2012) APEX update showcasing Indian agri exports. Agricultural and
Processed Food Products Export Development Authority (APEDA). Ministry of
Commerce & Industry, Govt. of India 18.
Sood D (2012) Wine market update 2012. USDA Foreign Agricultural Service, GAIN
Report Number IN2162, Global Agricultural Information Network: 1-23.
(2012) Indian wine industry report prepared by Western Australian Trade Office-India,
Department of Agriculture and Food-WA Mumbai: 1-22.
www.indialawoffices.com
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Effect of Online Retail Boom over Retail Business in India
Dr. Pragya Dheer
Assistant Professor
Department of Commerce and Management
University of Kota, Kota
Email Address: pragyadheer@gmail.com
Dr.K.C.Goyal,
Professor of Management,
ASM’s Institute of International Business &
Research,
Pimpri Pune 411018
Email: goyal.Kailash333@gmail.com
ABSTRACT:
Online retailing, often referred to as online shopping or e – tailing, which is
growing every day in India. Although most studies in the past have pointed out that
process has been rather slow and unsuccessful in gathering much steam with the Indian
user, the trend is changing now and a good number of savvy online user are making big
purchases on the digital space. Retailers comprises of a large section of the population
and larger population is dependent upon these retailers. But the advent of e – stores with
their attractive incentives and wide varieties has slapped on their face the fear of
uncertainty and helplessness. This study looks into the various aspects about how retail
business are being affected and also the various recovery mechanism, they are coming
up to counter those e – stores in their race of survival.
Keywords: E – Stores, fixed retailers, window shopping, online retailing, mall shopping.
Introduction:
Today’s consumers are blessed with enormous choices. Not only among different
products and brands, but also among diverse retail formats such as shopping malls, hyper
markets, speciality stores, department stores and online electronic shopping system.
Purchasing products or services over the Internet, online shopping has attained immense
popularity in recent, mainly because people find it convenient and easy to shop from the
comfort of their home or office and also eased from the trouble of moving from shop to shop
in search of the good of choice. Online shopping (or e-tail from electronic retail or e-shopping)
is a form of e-commerce which allows consumers to directly buy goods and services over the
internet through a virtual shop. Some of the leading online stores currently in India are
Amazon, Flipkart, Snapdeal, Homeshop18, Myntra etc.
Retail is a process of selling goods and services to customers through multiple channel
of distribution. Retail stores may be small or big but they mostly operate in the same line as
“purchasing to sale”. Retail form of business is as old as civilization and is the most basic
form of business. Types of Retail Stores are like- (i) Departmental Stores - A department store
is a retail store which offers wide range of products to the end-users under one roof. In a
department store, the consumers can get almost all the products they aspire to shop at one
place only. (ii) Discount Stores - Discount stores also offer a huge range of products to the
end-users but at a discounted rate. The discount stores generally offer a limited range and the
quality in certain cases might be a little inferior as compared to the department stores. (iii)
Supermarket - A retail store which generally sells food products and household items, properly
placed and arranged in specific departments is called a supermarket. A supermarket is an
advanced form of the small grocery stores and caters to the household needs of the consumer.
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(iv) Mom and Pop Store (also called Kirana Store in India) - Mom and Pop stores are the small
stores run by individuals in the nearby locality to cater to daily needs of the consumers staying
in the vicinity. They offer selected items and are not at all organized. (v) Malls - Many retail
stores operating at one place form a mall. A mall would consist of several retail outlets each
selling their own merchandise but at a common platform.
The Internet has many advantages over retail stores i.e., customers can get varied
choices, whereas at the bookstore at the corner of the street or the nearby cloth store hardly
offers 5000 references on its stalls or 20 designs of a particular garment of same size, Amazon
has got hundreds of thousands of variety. Internet is full of online retailers offering 10 times or
even 100 times more products than the average retailer can possibly dream of.
Retail shopping online in India has gone from being obscure to a booming part of the
GDP, making up to 14-15 % of the same. India is one of the five main retail hubs of the world
that has a lot of scope for growth in the online sector. Online retail stores in India have taken
the retail market by surprise. In both rural and urban area, people love to browse online retail
stores in India. Retail online shopping in India is growing at a break-neck speed with everyone
finding representation for their brands online to make a mark or stay visible.
Online retail shopping in India is a vast and varied affair. From supermarkets to
specialty shopping stores, you will find everything you want to buy here. Whether it is
apparel, shoes, socks, plumbing material, furniture, jewellery, food items or anything else you
can imagine, you can order it online and have it home delivered. Retail online shopping in
India includes the biggest online retail brands to the local ones that are seeking a portion of the
lucrative pie.
Review of Literature:
Some of the research works that came across during the study are as follows:
Solomon, 1998 in his study “Consumer behavior is the study of the processes involved
when an individual selects, purchases, uses or disposes of products, services, ideas, or
experiences to satisfy needs and desires”. In view for the Internet to spread out as a retail
channel, it is imperative to realize the consumer’s mind-set, intention and conduct in light of
the online buying practice: i.e., why they employ or falter to use it for purchasing? Consumer
attitudes seem to have a significant influence on this decision.
Schiffman, Scherman, & Long, 2003 in his study researched that “yet individual
attitudes do not, by themselves, influence one’s intention and/or behavior. Instead that
intention or behavior is a result of a variety of attitudes that the consumer has about a variety
of issues relevant to the situation at hand, in this case online buying. Over time the Internet
buyer, once considered the innovator or early adopter, has changed. While once young,
professional males with higher educational levels, incomes, tolerance for risk, social status and
a lower dependence on the mass media or the need to patronize established retail channels
(Ernst & Young, 2001; Mahajan, Muller & Bass, 1990),
Sultan and Henrichs (2000) in his study concluded that the consumer’s willingness to
and preference for adopting the Internet as his or her shopping medium was also positively
related to income, household size, and innovativeness. Vijay, Sai. T. & Balaji, M. S. (May
2009), revealed that Consumers, all over the world, are increasingly shifting from the crowded
stores to the one-click online shopping format. However, in spite of the convenience offered,
online shopping is far from being the most preferred form of shopping in India. A survey
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among 150 internet users, including both users and non-users of online shopping, was carried
out to understand why some purchase online while others do not. The results suggested that
convenience and saving of time drive Indian consumers to shop online; while security and
privacy concerns dissuade them from doing so. The work of Kim and Park (2005) using U.S.
samples suggests that their positive attitudes as well as willingness to search for pre-purchase
information leads to a strong likelihood that they will buy online. Online shoppers, are
required to have computer skills in order to use the Internet for shopping. Hence, those who
are not comfortable with using the computer, will likely do their shopping at the traditional
store, modern shop, or discount store (Monsuwe , 2004) because it will be faster shopping
there than in the Internet shop. Goldsmith and Flynn (2004) state that the home catalog is
another traditional selling channel where people can shop at home because of the varieties of
products offered in the catalog. They can order through the phone or by mail. It is convenient
except that they are not able to touch and feel products before purchasing.
Research Methodology:
Objectives of the Study:
To analyse the effect of online retailing on retail store business in India.
Hypothesis of the Study:
The null Hypothesis (Ho) considered for the study is “There is no impact of online
retailing on retail business in India”.
The alternative Hypothesis (H1) considered for the study is “There is impact of online
retailing on retail business in India”.
Research Design:
The present study is exploratory research in its initial stage followed by descriptive
research.
Sources of Data:
This study is primarily based on the collection of secondary data. To analyse the effect
of online retailing on retail business, data are collected from published reports of crisil and
media releases. For the performance of online retailing, the published annual report of online
retailing leaders are used such as Amazon Inc., Flipkart etc.
Analysis and Interpretation:
In the last seven years, online retail -- both direct and through marketplaces – has had a
helluva ride, going from nascence to critical mass. So much so, today it has started to threaten
the traditional brick-and-mortar retail. Recognising the danger, many physical retailers have
started to establish or beef up their online presence.
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Online retail market size and growth
Source: CRISIL Research
India’s online retail industry has grown at a swift pace in the last 5 years from around Rs
15 billion revenues in 2007-08 to Rs 334 billion in 2014-15, translating into a compounded
annual growth rate (CAGR) of over 22.26 times. The 9-fold growth came on the back of
increasing internet penetration and changing lifestyles, and was primarily driven by books,
electronics and apparel.
CRISIL Research expects the buoyant trend to sustain in the medium term, and estimates
the market will grow at a healthy 1.5 times CAGR to Rs 504 billion by 2015-16. The entry of
new players in niche segments such as grocery, jewellery and furniture, along with large
investments by existing players in the apparel and electronics verticals, will be the drivers.
In terms of size, India’s online retail industry is very small compared with both
organised and overall (organised + unorganised) retail in the country. This speaks volumes of
its potential. We expect the industry’s revenues to more than double to around 18 per cent of
organised retail by 2016 from around 8 per cent in 2013.
Impact on business of traditional retailers evident
Over the past 9 years, competition from online retailers such as Flipkart (in books, music
and electronics), Myntra and Jabong (in apparel) has eaten into the revenues of physical
retailers. Specifically, competition in the last three years has been intense compelling many to
go online even as their net store additions slowed.
To stay in the game, traditional retailers have been working on their internet strategy.
For instance, Shoppers Stop, which started its online store in 2008, has boosted presence and
improved features and user interface to bring its online visage on a par with leading ecommerce websites. The company is also trying to leverage its physical network by giving
customers the option to return products at its stores. Apart from Shoppers Stop, Croma has an
online store with options such as store pickup and cash on delivery. Even manufacturers of
retail products such as Titan Industries (watches, jewellery, eyewear, etc) and Aditya Birla
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Nuvo (apparel - Allen Solly, Louis Philippe, Peter England, etc) have set up beachheads in
cyberspace.
Going ahead, we believe more and more traditional retailers will board the online
bandwagon.
Conclusion
It may be concluded that, the Null Hypothesis (Ho) is rejected whereas the Alternative
Hypothesis i.e. “There is impact of online retailing on retail business in India” is accepted.
That is, online retailing in India is also on the boom along with the other developed countries
and so to cope up with this situation and to save their businesses, retailers in India has also
started to join internet retailing, whether along with internet shopping leaders such as Amazon
Inc. Flipkart etc or separately such as big basket etc.
REFERENCES:
Journals:

Anthony d. Miyazakiand Ana Fernandez prepared a report on “Consumer perceptions of
privacy and security risks for online shopping” issued in “Journal of Consumer Affairs”
volume 35, issue 1, pages 27–44, summer 2001

Kathleen Seiders, Constantine Simonides, Douglas J Tigert prepared a report on “The
impact of supercenters on traditional food retailers in four markets” in International
Journal of Retail & Distribution Management”, ISSN: 0959-0552

EunjuKo and Doris H Kincade prepared a report on “ The impact of Quick Response
Technologies on Retail Store Attributes” published in “International Journal of Retail &
Distribution Management”

Soyeon Shim, Mary Ann Eastlick and Sherry Lotz prepared a report on “Assessing the
impact of internet shopping on store shopping among mall shoppers and internet users”
in the “Journal of Shopping Centre Research”

Bo Dia, Sandra Forsythe and Wi-Suk kwon prepared a report on “The impact of online
shopping experience on risk perception and online purchase intention: Does product
category matter?” published in the Journal of “Electronic Commerce Research”, VOL
15, NO 1, 2014

Ruby S, prepared a paper on “Assessing the Impact of Online Retailing on Mall
Shoppers and Internet Users”, published in the Journal of GALAXY International
Interdisciplinary Research Journal, VOL 2 (1), Jan 2014.

Amit Saha, prepared a paper on “A Study on the Impact of online shopping upon retail
trade business”, published in IOSR Journal of Business and Management, 2014.

Dr. Gagandeep Nagra, Dr. R. Gopal, prepared a paper on “An study of Factors Affecting
on Online Shopping Behaviour of Consumers”, International Journal of Scientific and
Research Publications, Volume 3, Issue 6, June 2013.
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Product Customization Vs Homogenization in International Marketing
Vishal Weldode
Pad. Dr. D. Y. Patil Institute of MCA ,MBA ,
Akurdi ,Pune-411044
vishal.weldode009@gmail.com
ABSTRACT:
Companies marketing their products and/or services in overseas market are faced
with the dilemma of whether to regularize or alter their product offerings. This decision
concerns firms commencing to market their products in foreign countries as well as
those already operating internationally and is considering expansion into further
markets.
The evenness of products across cultures is increasingly becoming an important
issue that the managers of global firms are today facing. As international marketing
receives significant research attention in today’s generation, it seems the cost benefits
and administration of standardization strategies has simplified the international
marketing approach as well as being an attractive choice for many firms.
While the desirability of marketing adaptation vs. standardization has long been
debate within both academic and business circles, empirical studies investigating the
conditions under which each strategy becomes appropriate have been rare. This article
provides a formal investigation of the correlates of product and promotion adaptation in
MNC ventures. A conceptual framework of product and promotion adaptation in
multinational ventures is proposed to integrate the diverse perspectives on the issue of
standardization versus adaptation. The conceptual framework is further specified in a
testable form and tested via data collected by a series of in-depth interviews with
different forms of customers. The results support the contingency perspective recently
emerging in the standardization literature, and suggest that the degree of the various
aspects of product adaptation (i.e., upon and after entry) and promotion adaptation (i.e.,
positioning, packaging/labeling, and promotional approach) are significantly influenced
by company, product/industry, and export market characteristics. However, the profile
of the correlates varies across the various aspects of product and promotion adaptation.
Keywords: Consumer behavior; Culture; International retailing
Introduction
International marketing is becoming a major trend in modern business. To this effect,
numerous studies concerning the consumer demand and purchase behavior for different
products across national boundaries have been and are still being undertaken. International
marketing is defined as the process of management responsibility in identifying, anticipating
and satisfying customer requirements across international boundaries. They go on by
mentioning that within international marketing, companies are involved in making global
decisions in one or more variables of the marketing mix. Consequently, companies wishing to
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enter international markets are faced with the challenge of considering the options of whether
to standardize or adapt the elements of their marketing mix, that is, four “Ps”.
Interestingly, the concepts of product standardization and adaptation are not new ones in
regard to global marketing strategies. Product standardization and adaptation empirical
investigation were performed since the 1970s. Where, according to Doole and Lowe , product
standardization strategy refers to a uniform representation of all aspects of the product such as
the quality, the materials been used, product name, and packaging for all markets, regardless
of location around the world. On the contrast, product adaptation is when changes and special
modifications are made in order to adjust to each market in question.
On the other hand, product alteration strategies are also being considered as perhaps the
most influential aspect for Multinational Corporations. Seeing that past research has
established that regularization of the product enhances performance outcomes, more recent
theories suggests that this may not always be the case. In today's globalized world, the choices
of regularity versus alteration of international products are no longer being seen as an
inflexible choice. Instead, combinations of the two options are being regarded, given the
dependent factors at a given time on a given market.
However, with the emergence of homogeneous markets worldwide, it is still a question
of whether MNCs will or will not intermix both the regularization strategies and alteration
product strategies. To that effect it would perhaps be more interesting to look beyond the
dichotomy of Regularization and adaptation as product strategies, that is not necessarily
comparing which is the better option of these two comparisons. A research agenda was placed
on investigating the level of alteration or regularity of products by Multinational Corporations
(MNCs). Based on the illustrations and findings of the research, it was concluded that the
choice of either complete Regularity or alteration is not an all-or nothing proposition, but a
matter of degree. Hence MNCs should strive to incorporate ingredients of both approaches
based on a clear understanding of the dynamics of the served markets respectively.
In the last decades, business in general has increased and most companies have extended
their product offerings across national boundaries and cultures respectively. The researchers
have also observed that in the quest to maintain a market share in the escalating competition in
international markets as well as to realize profits, multinational corporations (MNCs) are
constantly faced with the challenge to remain economically afloat by deciding which product
strategy to use as they enter and strive to survive in international markets.
In addition, Czinkota and Ronkainen have pointed out that it is vital to note that
companies have four basic alternatives when deciding to internationalize their products:
i.
Selling the same product everywhere.
ii.
Make changes and adjustments on already existing products for different markets.
iii.
Creation of new products for foreign markets.
iv.
Merging all differences from the markets into one product where this
v.
be introduced as a global product.
Moreover, despite the various interpretations of the motivations behind the choice of
product strategy, one common theme is the challenge faced by multinationals to both national
and cultural identity, a topic that has become popular in the field of international business
and/or marketing. Therefore, as the product being part of the marketing mix it is crucial for the
strategy to be analyzed with caution and finally conducted suitably across cultures.
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Problem Statement:
When MNCs expand their products to international markets they have to consider the
two approaches of Customization and Homogenization in order to formulate their global
product strategy.
As the world becomes smaller and the markets are seen as being the same, others have
been advocating a Homogeneous product strategy as they view the market to be the same as it
is increasingly becoming homogeneous.
However, it is inevitable to note that in as much as global marketing may seem the
solution to generate profits at lower production costs, cultures around the world are very
different and as such consumer preference over products will vary. However in reality, both
strategies seem to be considered and used at the same time .Is it then safe to say that the
industry that the MNCs are active in is also a very important factor for the choice of the level
of Regularization and Customization to be used in their international product strategy?
It is also noted that most studies have analyzed the characteristics of the actual product
rather than the product as a whole.
One such area of interest is the fast food industry that has expanded globally in recent
years.
Objective

To share a new knowledge to the already existing field of study

To investigate the extent to which the companies operating (the MNCs to be specific) in
today’s turbulent global business environment are favoring a product Homogenization or
product customization strategy respectively.
Literature Review
Fayerweather (1969) in his seminal work in international business strategy described
the central issue as one of conflict between forces toward unification and those resulting in
fragmentation. He pointed out that within a multinational firm, internal forces created
pressures toward the integration of strategy across national boundaries. On the other hand,
differences in the sociodultural. political and economic characteristics of countries as well
as the need for effective relations with the host society, constitute fragmenting influences
which favor adaptation to the local environment.
This theme has been elaborated further in subsequent discussions of international
business strategy. Doz (1980) for example, characterizes the conflict as one between the
requirements for economic survival and success, (the economic imperative), and the
adjustments to strategy made necessary by the demands of host governments, (the political
imperative).
Economic success or profit- ability in international markets is viewed as
contingent on the rationalization of activities across national boundaries.
Recent discussion of global com- putative strategy (Porter 1980, 1985) echoes the
same theme of the dichotomy between the forces which have triggered the globalization
of markets and those which constitute barriers to global competition. Factors such as
economies of scale in production, purchasing, faster accumulation of learning from operating
worldwide, decrease in transportation and distribution costs, reduced costs of pro- duct
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adaptation and the emergence of global market segments have encouraged competition on a
global scale. However, barriers such as govern- mental and institutional constraints, tariff
barriers and duties, preferential treatment of local firms, transportation costs, differences in
customer de- mind, etc., call for nationalistic or “protected niche” strategies.
Similar arguments have characterized the debate concerning uniformity vs. adaptation
of marketing and advertising strategies. In this context, greater attention has generally been
focused on barriers to standardization (Buzzell 1968, Elinder 1964). Differences in customer
behavior and response patterns, in local competition, in the nature of the marketing infrastructure, as well as government and trade regulation have all been cited as calling for,
and in some eases rendering imperative, the adaptation of products, advertising copy,
and other aspects of marketing policy (Miracle 196$, Dunn 1966, Donnelly and Ryans
1969, Ryans 1969). Yet, some advocates of a uniform or standardized strategy worldwide,
especially in relation to advertising copy, have emerged—who point to a growing
internationalization of life-styles, and increasing homogeneity in consumer interests and tastes
(Britt 1974, Falt 1967, foote 1967, Killough 1978). They have, for example, noted
benefits such as development of a consistent uniform image with customers worldwide,
improved planning and control, exploitation of good ideas on a broader geographic
scale, as well as potential cost savings.
Compromise solutions such as “pattern standardization” have also been proposed
(Peebles, Ryans and Vernon 1978). In this case, a global promotional theme or positioning is
developed, but execution is adapted to the local market. Similarly, it has been pointed
out that even where a standardized product is marketed in a number of countries, its
positioning may be adapted in each market (Keegan 1969). Conversely, the positioning
may be uniform across countries, but the product itself adapted or modified.
Although this debate first emerged in the 1960s, it has recently taken on a new
vigor with the widely publicized pronouncements of proponents of “global standardization”
such as professor Levitt and Saatchi and Saatchi. Levitt, for example, in his provocative
article (1983) slated:
“A powerful force (technology) now drives the world to- ward a single converging
commonality. The result is a new commercial reality—the explosive emergence of global
markets for globally standardized products, gigantic world-scale markets of previously
unimagined inanities.
1985). Opportunities for standardization are also likely to occur more frequently
among industrialized
nations, and especially the Triad countries where customer
interests as well as market conditions are likely to be more similar than among
developing countries (Hill and Still 1983, Huszagh, Fox, and Day 1985, Obmac
1985).
An examination of such counter- arguments suggests that there are a number of
dangers in espousing a philosophy of global standardization for all products and services,
and in relation to all markets worldwide. Furthermore, there are numerous difficulties and
constraints to implementing such a strategy in many markets, stemming from external market
conditions (such as government and trade regulation, competition, the marketing
infrastructure, etc.), as well as from the current structure and organization of the firm’s
operations.
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Methodology
The main purpose of this study is to investigate the extent to which Multi National
Corporations (MNCs) adopt either product Homogenization or customization strategies across
cultures as well as to investigate any differences between different markets in relation to MNC
Company’s product offering. Hence, this study deals with multinational companies selling
products internationally. To reach this understanding of the occurrence of product
homogenization and customization the study will therefore mainly be that of a descriptive one.
However, in aiming to improve the understanding of the aspects of both product
standardization and adaptation strategies, the researchers will also employ some exploratory
aspects in the study.
Research philosophy
Pragmatism philosophy will be adopted as the study strives to understand the practical
implications of deciding which product strategy to use in relation to differences in cultures as
regards the purposes of the study
Research approach
Deductive approach, as the nature of the research is that of a descriptive one.
Sample selection criteria
Choosing the sample for the online survey, the websites presented in the English
language are considered. English language has become the international language that can be
understood and spoken through almost everywhere in the world today, therefore have made
this a primary criteria in the choice of the countries to be investigated for ease of observation
in relation to the study.
Observations
The long discussion in international marketing as to whether companies should
Customize or Homogenize their international marketing approach and market entry methods
continues to be a focus of research. With the general increase in globalization, it is hardly
surprising that the study of motivations of MNCs in deciding which product strategy to use has
attracted considerable attention in recent years. In an attempt to go beyond the dichotomy of
product standardization and adaptation, assumptions about the two contrasting theories studies
have focused mainly on cultural differences. While some research has focused only on the
advantages and disadvantages of either strategy, others have also suggested a future possibility
of standardization as being the sole product strategy across cultures. The theory selected in the
following paragraphs give an insight into the study as they give the various perspectives on
previous studies in relation to the research topic. But in order to understand the concept of
going beyond the dichotomy, it is crucial to fully understand the concepts of culture,
Homogenization and Customization as regards to the product strategies as per the decisions of
Multi National Corporations (MNCs).
Increased ease of access to a wider range of material has also increased the need for
careful and clear critique of literature sources. Key literature sources used have been published
material, journals and academic articles as well as academic theses. Having reviewed the
literature on product standardization and adaptation, the authors synthesize the concepts into
their own concept through this summary.
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Having in mind the different concepts captured from the reviewed literature, it is
interesting to note that one of the main questions centers on the choice of which product
strategy to implement across cultures. Further the problems that have been analyzed to date
are that of the choice of product internalization strategy is highly dependent on culture, and the
nature of product.
It is worth noting that from a company’s perspective it is strongly recommended to
reflect on both strategies when wanting to develop a global product strategy while considering
the market characteristics, the company’s characteristics and the industry they operate in. As
mentioned above the industry plays a significant part in the choice, as in the car industry
almost non-adaptation may be needed, same it is with the technological industry. As for the
fast food industry as per the basis of this study, the success of the product strategy is vital to
consider the culture of the foreign markets. Suffice to say, in order to be accepted and to
succeed in the foreign markets, a level of adaptation must be inevitably coupled with a global
strategy with standardization as the main concept.
But despite the issue of globalization and the similarities of markets, the question of
whether to standardize or adapt a product is one that has been mind boggling for many years.
A very interesting observation that is pointed out in the literature is that in aiming to succeed
in international markets, finding a balanced product strategy as regards standardization and
adaptation somewhat depends on the type of industry that the company is operating in. An
example would be, in the fast food industry where adaptation is inevitable due to different
cultures and customer’s preferences.
In considering the reviewed literature, it can hence be concluded that the rigid
dichotomy between total product standardization and total adaptation of the international
marketing strategies of MNCs is considered neither feasible nor undesirable. It can be
concluded from the past research that culture still plays a critical part in the choice of product
strategy and as long as the different cultures remain heterogeneous, no matter how
homogenous the global market will become, total product standardization may not be accepted
across cultures. Therefore, for multinational corporations the best and most cost effective
strategy for product internationalization is a combination of a standardized strategy with some
significant modifications.
Conclusion:
The main conclusion of this research is augmentation of the argument that a global
market strategy should serve as the conceptual link and action mechanism that provides
substance and rationale to striking a tradeoff between the two indispensable global strategy
ends of standardization and adaptation. This balanced relationship can only be created when
focus is devoted to building brand equity and inserting standardization of quality through
emphasizing the concept of global customer grounded on the adoption of generic customer
needs and characteristics as bases for segmentation away from cultural peculiarities. On the
other hand, market orientation should be maintained to guard against overlooking significant
and relevant product-related cultural differences through the proportionate adoption of cultural
and social segmentation factors. Striking such a balance between global brand equity and
culture-specific market orientation should be expected to result in marketing positioning
strategies that are a true reflection of a carefully and realistically blended mix of
differentiated and undifferentiated elements throughout all strategic dimensions of the
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marketing mix variables. In particular further research on these variables will enhance our
understanding.
REFERENCES:
[1] Claudia Maria Chocano “The standardization vs. adaptation debate in international
marketing” University of Texas at Austin, 1992.
[2] Philip R.Cateora;John l Graham “ International Marketing” Thirteenth Edition; Tata
McGraw-Hill Publishing company Limited.
[3] Kotler, P., Armstrong, G., Saunders, J., & Wong V Principles of Marketing. Seventh
Edition, U.K.: Prentice Hall International Editions
[4] Kulkarni, S. (Dr.) and Lasser, W. (Dr.), McDonald’s Ongoing Marketing Challenge:
Social Perception in India. OJICA-Online Journal of International Case Analysis,!
Volume 1, Issue 2, pp. 2-17.
[5] Gerald Albaum ;Edwin Duerr; International Marketing and export Management ;Fifth
edition;Pearson Education.
[6] Justin Paul ; Ramnek Kapoor “ International Marketing” Tata McGraw Hill Education
Pvt Ltd.
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The Impact of E-Commerce on Competition in the Retail Brokerage
Industry
Divya Bagla
Infront of Dadhi Mathi School Baharli Bundi , Bundi (Rajasthan)
Email Id- bagla.deepika01@gmail.com
University – Career Point University, Kota (Rajasthan)
ABSTRACT:
This paper analyzes the impact of e-commerce on markets where established firms
face competition from Internet-based entrants with focused offerings. In particular, we
study the retail brokerage sector where the growth of online brokerages and the
availability of alternate sources of informationand research services have challenged
the dominance of traditional brokerages. We develop astylized game-theoretic model to
analyze the impact of competition between an incumbent full service brokerage firm with
a bundled offering of research services and trade execution and anonline entrant
offering just trade execution. We find that as consumers’ willingness-to-pay forresearch
declines, the incumbent finds it optimal to unbundle its offering when competing with
theonline entrant. We also find that the online entrant chooses a lower quality of trade
execution whenfaced with direct competition from the incumbent’s unbundled offering.
The analytical modelmotivates a unique field experiment placing actual simultaneous
trades with traditional full-serviceand online brokers, to compare order handling
practices and the quality of trade execution. We discuss the relevance of our findings for
quality differentiation, price convergence and profit decline in avariety of markets where
traditional incumbents are faced with changes in the competitivelandscape as a result of
e-commerce.
Keywords: E-commerce, impact of IT, unbundling, execution quality.
E-COMMERCE
The buying and selling of products and services by businesses and consumers through an
electronic medium, without using any paper documents. E-commerce is widely considered the
buying and selling of products over the internet, but any transaction that is completed solely
through electronic measures can be considered e-commerce. E-commerce is subdivided into
three categories:
1.
Business to business or B2B (Cisco)
2.
3.
Business to consumer or B2C (Amazon)
Consumer to consumer or C2C (eBay)
This paper analyzes the impact of e-commerce on markets where established full-service
firms offering a broad range of goods and services face competition from Web-based entrants
with narrower product offerings. In particular, we study the retail brokerage market, which
experience draped growth in the share of online brokers providing low-priced trade
executions. Retail brokerage represents one of the most successful applications of ecommerce; for instance, the number ofonline accounts grew from 7 million in 1998 to over 31
million in 2003, with online brokersresponsible for 28% of U.S. retail trades in 2002.
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The global ecommerce industry saw impressive growth in 2014 with goods and services
worth $1.5 trillion bought by shoppers via desktops, tablets and smartphones. Advertisers are
now spending an increasing proportion of their marketing budgets on Internet advertising. This
ad spend is forecast to surpass $160 billion in 2015, of which more than $58 billion will be
spent on Display advertising. (Source: e Marketer) At Criteo, we believe 2015 will be another
exciting year for the ecommerce industry as mobile shopping further matures and consumer
mindshare continues to be split across multiple devices. Working with thousands of advertisers
and publishers, we see billions of online transactions, providing us with unique insights into
online shopping behavior. Here are our top 7 predictions of what advertisers can expect and
must prepare for in 2015:
1.
Mobile share will grow to 40% of e Commerce transactions globally.
2.
Cross-device marketing will be real and drive significant value for advertisers.
3.
Programmatic buying will drive rapid growth in native advertising.
4.
Brick-and-mortar retailers will focus even more on online strategies.
5.
Mobile apps focus will shift to re-engagement.
6.
Automated ad formats will offer even greater flexibility.
7.
Acquisitions and consolidation will continue to intensify in the ad-tech industry.
E-Commerce and It’s Effect across Different Industries
Travel Industry
The development of e commerce ever since it was first introduced in 1991 has gradually
had an increased influence on the travel industry in a number of ways. It’s changed the way
travel services conduct their business. Travel service providers such as airline companies,
hotels and rental car companies have been granted the ability to restructure their sales
strategies. Before online selling became possible the traditional travel agencies known as brick
and mortar agencies handled the majority of sales for companies in the travel industry. These
traditional agencies have slowly been driven out of business. The availability of online sale
methods has been beneficial to the travel service provider companies and opened up
opportunity for the online travel agencies.
Book Industry
The book industry before the book ecommerce industry emerged was constructed as
typical retail company contained a supply chain, warehouse, store planning, inventory,
customer relationship, employees, etc. For example, when a customer purchased a book:
customers are able to examine the book; business created a relationship with customer;
normally customer would travel to where the store was located. College student would
purchase their books at the campus bookstore or a bookstore located within the campus. These
bookstores would hire additional employees to stand at the door entrance to assist students on
what book needed for the semester. Normally, the bookstore will have the information on what
book the student need since they have all the books categorized by the class and the professor
teaching the class. Within ten to fifteen minutes, students would have found the book they
needed. Since the bookstore was formally designed to assist customer, the bookstore would
have additional products that student might need.
Distant Education
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Education has manifested just like everything else in life. Technologies have advanced
which have enhanced education and also made it easier for students to learn. Online education
through e-commerce has allowed students at home to earn degrees online without ever leaving
the house.
Stock Brokerage
In the past, when an investor wanted to place an order, they had to call up their brokers
and place the order through the phone, so that they could then enter the order in their system
which was linked with trading floors and exchanges. These kinds of brokers arealso known as
full-service brokers, and they are called like that because they will also serve as financial
advisors to the investors, as investors will come to them to research information.
Entertainment
The entertainment industry has undergone some of the most drastic changes of all the
industries affected by E-commerce. The Entertainment Industry consists of 3 major areas.
These are Music, Movies, and Television. There was a definite way of how these 3 mediums
were purchased and distributed before the advent of E-commerce. The Music Industry was the
first part of the Entertainment Industry that was impacted. Before you would go to the store
and buy your favorite CD or cassette. They would release new music on Tuesdays and if you
wanted that new release you would stand in line with the other fans to be one of the first to get
your hands on the newest album by your favorite artists. The industry had fans and the artist in
a compromised position holding the only means of distribution. Then came illegal
downloading of music.
Conclusion
As you can see E-commerce has forever changed every industry it’s touched. What was
the standard foundation of business practices even as little as 20 years ago is no longer
relevant. The move to E-commerce has affected every aspect of peoples’ lives from the way
they travel to how they travel, to how they make and spend their money, to how theyentertain
themselves. It had spawned endless options and made powerhouses of companies that were
not so long ago operating out of their parents garages. One thing we can assume about ECommerce is that it is definitely here to stay and it will continue to evolve until it is
considered traditional business practices. E-commerce provided a way to monetize these
innovations in the first place. Without the ability to make money there would be no reason to
create these innovations in the first place. Why do people work, to make money? This is the
foundation of business and innovations in E-commerce have fanned the fires of innovation.
Whether you’re an EBay shop-aholic, or you don’t even like checking your email you must
admit one thing. The E-commerce way of life is now part of your life whether you like it or
not.
Bibliography
[1] http://ecommerce.networksolutions.com/ecommerce_what_is_ecommerce.asp
[2]http://newmedia.medill.northwestern.edu/courses/nmpspring01/brown/Revstream/
history.htm
[3] http://www.ecommercetimes.com/
[4] http://pages.stern.nyu.edu/~bakos/ebrokers.pdf
[5] http://en.wikipedia.org/wiki/Stockbroker
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A study of Indian Over-the-Counter Drug(OTC) Market with special
reference to Indian Pharma Industry: Opportunities and Challenges
VanrajTilekar
Research Scholar
Institute of Business Management & Research
Chinchwad, Pune 411019
ABSTRACT:
Over-the-counter medicines are those drugs for which no prescription is required
from any healthcare professional. The same can be purchased from any retail
pharmacies or other retail outlets. These drugs are often used for treatment of minor
ailments such as heartburn and pain relief, though there is a large possibility of adverse
side effects and casualties. The OTC drug market in India is poised for a stupendous
growth in recent times. Changing consumer perception towards OTC drugs,
Transformed outlook of OTC drugs as a FMCG product, Rising spent on media
promotion for OTC drugs, Wider distribution and reach of markets including rural
pockets etc., have significantly contributed to this status of the products. That’s why big
giant FMCG companies like HUL, ITC etc. are also showing their interest to invest in
the profitable OTC drugs market. However, there is a need for further strategies in place
to offer the much needed makeover for OTC drugs in India. This category is much
celebrated by every marketer considering its growth prospects and consumption aspects.
This case study reviews the current state of OTC drugs marketing in India by
highlighting the growth drivers, major categories, major players, Brands on offer,
insight into consumer behaviour during times of illness and evolving approaches of OTC
marketers across the marketing-mix elements. This case study presents an overview of
the OTC drugs market, related challenges and opportunities and strategies required to
retain the vigour and build a space for itself in the minds of the consumers.
Keywords: OTC drug Marketing, OTC Vs FMCG, OTC Case study, OTC Marketing
strategy
Introduction
The OTC segment in India is not identified separately. Instead, anything that does not
fall in the prescription drugs category is classified as being Over The Counter. The phrase
“OTC” has no legal recognition in India, all the drugs not included in the list of “prescriptiononly drugs” are considered to be non-prescription drugs (or OTC drugs). Prescription-only
drugs are those medicines that are listed in Schedules H and X of the Drug and Cosmetics
Rules. Hence “OTC Drugs” means drugs legally allowed to be sold “Over the Counter” by
pharmacists, i.e. without a prescription from a healthcare professional or Registered Medical
Practitioner. In India OTC drug marketing has always been challenging and consists of special
uniqueness. However many pharmaceutical companies like Ranbaxy labs Ltd, Glaxo Smith
Kline, Abbott Healthcare etc. has successfully established their OTC brands in urban and rural
parts in India. It is expected that the OTC market to grow at a Compound Annual Growth Rate
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(CAGR) of approximately 18% till 2013- 14. So it can be easily estimated that there is a huge
opportunity for growth.
According to pwc, the OTC drugs market in India is expected to grow to the tune of US$
11 billion by year 2020a CAGR of 18%, with the potential to reach US$13 billion – at an
aggressive CAGR of 20%.
As indicated in exhibit -1, there are four key drivers of the OTC market in India which
have really widened the market base and present huge growth prospects. These are wider
distribution channel, direct to consumer advertisements, increased consumer awareness and
low price controls. By and large the OTC products are available in at the pharmacy counters.
In addition, some are even sold by general merchants and grocery retailers too. Hence the
product access is made easy by the marketers. Further, media advertisement and in-store
displays push the sale sizeably. To an extent the OTC product advertisements are better than
the FMCG products and have a good recall and recognition too. Vicks Vaporub, Amrutanjan
pain balm, Vicks action 500 are great hits at the home box office. These advertisements also
result in higher consumer awareness and low price controls leading to affordability for the
products. Thus the Indian OTC market looks very dynamic and positive.
Objective of the study
This research study was undertaken with the following objectives:

To understand the current scenario of OTC drug market in India.

To highlight the different opportunities and challenges of this drug marketing in India.
Review of Literature
Mickey Smith (2001) in his book “Pharmaceutical marketing in 21st Century” has
explained the change taking place in the Pharmaceutical industry today within the world of
Pharmaceuticals marketing in serious transition. The book goes beyond the 4 Ps of marketing.
The book provides lucid but brief review of excellence in Pharmaceutical industry. The author
also points out on marketing medicines for self-medications gives a new area of the field.
More and more pharmaceutical companies implementing the switch strategy of prescribed to
OTC, one because there is a worldwide trend person to take charge of their own health
secondly the companies understand that after patent expiry of a drug , the drug can be
switched to OTC.
AnshalKausherh (2006) in his book on “Pharmaceutical Marketing, Emerging Trends”
Pharmaceutical marketing explains on the changing global economy and specifically with
more concern over healthcare. The Pharmaceutical industry is besieged with a number of
issues – competition from generic drugs, shrinking patent protected life, change healthcare
policies of Government and Global competition etc. The author also highlights of the new
strategy of reaching out the consumers. DTCA - Direct to consumer advertising. DTCA can
provide a competitive advantage particularly is marketed with OTC alternatives are available
also the pace of Rx to OTC switches, one bound to accelerate as more blockbuster patient
expires making a brand differentiation ever more crucial.
Research Methodology
The descriptive study has been done based on secondary data which has collected from
various published and unpublished journals, various articles available on various websites,
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textbooks and different popular journals to analyze the current scenario of the OTC Drug
market.
Indian OTC Drug Market:
India is currently ranked 11th in the global OTC market in size, with an expectation that
it will get to the 9th position within five years. Currently the Indian OTC market constitute
19% of total Indian Pharmaceutical Market. It is expected to grow at a CAGR of
approximately 18% - 20% till 2020. The changing environment of pharmaceutical industry
have resulted in a new and nascent staged OTC sector with a huge market resulting in more
and more companies launching their products aggressively under OTC umbrella which is the
main reasons for the booming OTC sector. Since these drugs do not require a prescription,
they are more affordable and accessible to consumers. By placing widely used balms,
painkillers and cough syrups under OTC, they can be easily sold at the counters of grocery
stores and other stores without a drug license. One of the most beneficial options for the
consumer is the availability of good quality drugs at the lowest possible cost, due to
competition. OTC drugs are comparable to fast moving consumer goods. Most FMCG
companies, like Hindustan Unliver, Procter and Gamble are entering the OTC sector and
expanding their market over areas that have remained inaccessible. One of the primary
obstacles for pharmaceutical companies is their reach to the remote regions of the country. The
only way of reaching these areas is through FMCG companies, but this represents a threat to
the pharmaceutical companies. Grocery stores and post offices are better in terms of getting to
the remotest regions. It is estimated that as the chemists reach is about 4% while that of a
general store is 14%, a grocer is 52% and others 22%. If OTC drugs are administered through
these types of stores then sales can increase exorbitantly.
Growth drivers of OTC Market in India:
1.
Rising Awareness about Preventive Care has driven the growth of various categories
like nutraceuticals, vitamins and dietary supplements. People now feel and know that
prevention in long term not only saves the overall healthcare cost but also keeps them
healthy on a day to day basis.
2.
Self Medication Tendency: Due to:

Higher education levels

Lack of time for small ailments in today’s stressful lifestyle.

Cost saving on consulting fees which they have to pay to doctors
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3.
4.
5.
6.
7.
8.
a.
b.
9.
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Lifestyle Factors: With busy lifestyles, people are looking for quick and easy solutions
to their problems. Some products which have made use of this need of consumers are
Amrutanjan ,DigeneFast Melt, Vicks Vapocool signifying quickness of their products.
Changing lifestyle habits boosted the growth of gastrointestinal OTC products by 8% in
2013. (Nicholas hall)
Product Innovation Introduction of smaller packs (a concept of FMCG industry) has
also driven the access of products in terms of: • Being economical and affordable to
masses • Convenience in carrying. Ex; Amrutanjan balm comes in a 5g pack which is
convenient to carry for consumers.
Promotion
Use of Mass Media: Heavy promotion and marketing campaigns through TV, Print and
digital promotion led to increase in the demand for these products.
Endorsements by Celebrities: Mary Kom for Polycrol Gel, SonaliBendre for Volini,
Salman Khan for Revital. Using Mary Kom strengthened the position of Polycrol gel in
East India to No.1 position
Channels Development Availability of products in hypermarkets, grocery stores and
healthcare specialist retailers led to increase in sales as it increases convenience for
consumers to shop for such products while making their day to day shopping.
Rural Penetration :Rural penetration initiative by many companies like Ranbaxy,
Mankind, Pfizer, Dabur India Ltd which has increased the accessibility of their brands in
Tier 2 &Tier 3 cities. Ex. Ranbaxy and Pfizer partnered with ITC to distribute their
range of OTC products Revital, Pepfiz, Volini&Chericof
Product Innovations:
ENO launched tablets with different flavors and packaging, whereas traditionally it has
been only in powder formats. The entire antacids category is close to (US$125mn) in
2013 where ENO is around $ 40 million with 32% Market share. ENO also launched
Refreshing liquid (ENO GEL).
Polycrol Extra Strong is packaged in a portable transparent bottle with an informative
label that helps consumers understand how it works in the stomach.
Evolution of Digital Media: Ranbaxy has used extensively the use of digital media to
promote Revital, Volini and Pepfiz. The Pepfiz campaign was conducted via Facebook
and asked participants questions about food of choice to be declared India’s Biggest
Foodie.
Revitalfacebook page alone has a liking by more than 3.5 lakh people, Amrutanjan roll
on balm has more than 40,000 likes . This provides an active platform for the brands to
engage and converge with the consumers.
Evolving approaches by OTC Brands across Marketing-Mix Elements
So much of growth, well backed by market dynamics and persuaded by future prospects,
the Indian OTC market is poised for a great deal of business. This is well seen through various
marketing initiatives put forward by some of the brands in recent times. When we have a look
at ‘how these brands strategically viewthis opportunity and work out plans across the 4 Ps of
the marketing mix?’, some interesting insights can bedrawn. The existence of OTC products in
India can be attributed to way back in 1980s, wherein the birth of television media has just
happened and opened gates for brand commercials. Till then it was print and radio which
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provided the connect between the brand and the market. Once the TV media became vibrant
with the introduction of satellite TV and DTH services, the reach got widened and today many
OTC brands have become household names.

Product – OTC products have created a space for themselves in the consumers’ mind as
most of themarketers termed it as Consumer Healthcare Products. This is a good
positioning platform to convince the customers that it is not a prescription drug. Further
the ayurvedic preparation of the product also instils required believability among the
users. Thus the brand positioning became relevant and various branding exercises have
been taken up by leading marketers. This has led to a perception among consumers that
these OTC brands are similar to that of other FMCG brands. ‘Product form’ innovation
is also common and the popular OTC pain remedies are now available in liquid, cream,
gel and spray forms. This is a remarkable push for OTC brands and marketers took cues
from this and started promoting their brands through various ways.

Price – OTC products have the pricing advantage compared to other consumer products
since theywear the mask of a medicated product. Hence the pricing of these products are
ranging from moderate to premium. Most of these products are priced on the basis of
benefit offered. In certaincases the price is offset by appropriate packaging strategy
(discussed in detail under Packaging). By and large the pricing though little above the
average ranges still consumers never mind to buy due to the urge for quick remedies to
ailments. This is one major difference in consumer perception for FMCG products and
OTC drugs.

Promotion – In recent years, the media has experienced lot of OTC brands launched in
an aggressiveway in the market. To name a few, Eno, Revital, i-pill, Volini, Vicks Multipain, Iodex gel and so on., Therelative advertising spend by these brands are also quite
sizeable. For e.g., GSK-one of India’s leading OTC marketers roughly spends 1/6th of its
total income from operations on advertising and sales promotion[5]. Some of the trends
observed in the OTC brand promotions in recent times are:

Frequent advertising leading to stronger brand recall

Higher brand awareness through wider media presence (across all media options)

Better consumer connect with celebrity endorsements

Attractive POP displays to stimulate brand preference

Well designed communication strategies to diffuse brand benefits and advantages

Place – OTC products make use of the huge pharmaceutical distribution network in
India to reach outthe various segments of the market. Except for cold rub/ pain balm and
the likes, some other OTC products are also prescribed by the physicians through whom
the sale is triggered. In addition to the pharmacies, even general merchants and
organised retail stores have started selling popular and fast moving OTC brands. Hence,
the market reach is good and relatively larger than FMCG products. But still, the sale
through electronic channel (online) is still a distant reality as such a mindset is not yet
set among the consumers.

Packaging – Given the significance of packaging for OTC marketing, it is discussed
along with thetraditional 4Ps. As mentioned earlier the packaging strategies are
offsetting the pricing effect on various OTC products. For example, Vicks has various
size of packaging for its cold rub with varying content volume and pricing. Similarly,
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antacid liquid and cough syrup are available in sachet for one time use which results in
affordable pricing image and lot of convenience to use.
Thus the OTC marketers are devising various marketing strategies across the elements of
marketing mix and effectively marketing the products across every possible promotion
avenues.
Exhibit-1-Key Drivers of Indian OTC Market
Source : India Pharma Inc.: Capitalising on India’s Growth Potential-pwc report 2010
Exhibit-2- Major OTC categories
OTC
Category
Established
Emerging
Expected
Products
Cough, cold, acidity, aches/pain
Cuts/wounds & burns, antacid, health supplements, constipation, diarrhoea
Vitamin, oral health, anti-obesity, anti-stress, sexual wellness (Men &
Women)
Exhibit-3-Popular OTC Brands across various categories
OTC Categories
Aches/Pain
Digestives
Antacids
Cold rubs and Analgesic Balms
Vitamins/Health Supplements
Medicated skin treatment
Analgesic /Cold Tablets
Antiseptic Creams/Liquids
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Popular Brands
Volini, Moov, Iodex, Vicks Multi-pain, Fast
Relief
Pudinhara, Hajmola
Gelusil, Digene, Eno, Pepfiz
Vicks, Amrutanjan, Zandu
Chyawanprash, Nutrigain, Revital, Calcium
Sandoz
Krack, Itchgurad, Mederma, RingGuard
Dolo, Aspirin, Crocin, Vicks action 500,
D’Cold
Dettol, Savlon, Boroplus
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OTC Categories
Glucose Powders
Cough Syrup
Throat Lozenges
Medicated Dressings
Baby Gripe Water
Ayurvedic
/Preparations
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Popular Brands
Glucon-D, Gluco vita, Dabur Glucose-D
Benadryl, Daburhonitus
Halls, Vicks, Strepsils
Johnson & Johnson Band-Aid
Woodwards, Dabur
Medicines Himalaya, Ayur, Vicco labs & lot more
Exhibit-4-Major Players in the Indian OTC Market
Name of the firm
Ranbaxy
GSK - GlaxoSmithKline
P&G
Piramal Health Care
Dabur India Ltd.,
Emami Limited
Amrutanjan
Vicco labs
Johnson & Johnson
ManKindPharma
Reckitt Benckiser
Popular OTC brands offered
Revital, Volini, Chericof, Pepfiz, Garlic Pearls
Otrivin, Eno, Crocin, Iodex
Vicks
Saridon, I-pill, Polycrol
Glucose-D, Chyawanprash, Hajmola
Boroplus, Zandu, FastRelief, MenthoPlus
Amrutnajan Pain Blam, Cold rub
Turmeric Skin Cream, Narayani Cream
Benadryl, Band-Aid, Nicorette, Pepcid
Gas-o-Fast, Prega News, Heal-o-Kind
Dettol, Krack, Moov, ItchGuard, RingGuard,
Strepsils
Exhibit-5-Celebrity endorsements of OTC Brands
OTC Brand
Endorsed by
Polycrol gel
Mary Kom
Volini
SonaliBendre /Trisha
Revital
Salman Khan
Vicks Multipain relief ViratKohli
Dabur Glucose-D
SouravGanguly& Amitabh Bachchan
Crocin Pain Relief
KapilDev
Iodex Ultra Gel
SainaNehwal
DaburChyawanprash Amitabh Bachchan
Exhibit 2, 3, 4 & 5 are compiled from various online sources /company websites
The Road Ahead for OTC Products
With a huge potential and projected growth of the OTC market, the pharma industry is
more serious about its OTC business. In addition consumer goods marketers are also eying a
share of this pie with few brand launches in recent times. The cascading effect of OTC market
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growth is felt on other industrial hubs like media, retail and logistics. The following section
analyses the probable opportunities and challenges available to OTC marketers:
Opportunities:
In the phase of increasing customer confidence in OTC brands, opportunities are
gradually emerging up. Customer preferences for OTC drugs also have created the necessity
for brand building with significant brand image. Government and different pharmaceuticals
companies are taking several initiatives to create awareness about different drugs and shift Rx
to OTC and thereby brand building has become more importance. A strong brand image also
ensures customer loyalty and better sales. As an example the brand image of Crocin is so
strong in the market that paracetamol (generic name) has almost lost its significance. A
consumer may not even think of a second alternative in the case of a fever or minor ache.
However the demographic differences will be identified new avenues of opportunities will
also come under light. In the same time the scope of retailing of drugs increase which indicates
that a bunch of sales personnel will be employed.
Challenges:
OTC drugs along with their opportunities are also coming with challenges. Due to nonprescription in nature the future of OTC brands is unknown and uncertain. On the other hand
the perception is always there in people mind that is whatever the doctor prescribes that is
good, otherwise not. Due to this phenomenon home-made medicine are posing challenges for
OTC drugs. Meanwhile the growth of OTC drugs has also created an inherent challenge and
that is competition among known brands. In India most maximum population are living in
rural areas where the literacy rate is very low which creates a tough challenge for
Pharmaceuticals companies to establish awareness for their brands. That’s why multi-dollar
companies are spending huge for promotion. That means the extend promotion drive would be
enhanced, that will create more and more challenges.
Conclusion:
The logic behind promoting OTC in companies prospective was to identify a new
segment of market which can be used for companies marketing drive when its product or
brand growth become stagnant. It is significant that almost all brands Ranbaxy labs Ltd those
are now under OTC once was under the prescribed drug list. Soon the figure of sales reached
to a culminating point company thought to place this product under a new scheme i.e. OTC. In
the last few decades OTC drugs have become very successful but the challenge is this success
may attract malpractices of introducing drug without proper testing under the category of
OTC. More simply it can be explained by giving the example Revital. Revital was part of
prescribed drugs and it is having a considerable exposure in the market. Now it is becoming
under OTC. If a new brand lunched directly under this category without proper testing then
such lunch may cause severe consequences. On the other hand OTC drug promotion in rural
areas is very much related to enhance knowledge of health and element
without enhancing the knowledge the consumption of brands may cause bitter consequences.
In a nutshell the brand share having opportunities and as well as challenges, but the sale of
such drugs must be controlled by a sound regulatory framework, which is for the time being is
nonexistence. This issue must be focused on near and remote future.
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REFERENCES
[1] NidhiChowdhry, “ A Case Study on OTC Market – Choice to Enter?”, Advances in
Economics and Business 3(2): 2015, 45-49
[2] B. Lakshmi, VaishaliLakhani, “Perceptual Gap Analysis of Pharma OTC Products:
Consumer and Product Executives”, IJSPR, 3(1), 2015, 116-136.
[3] OPPI Organization of Pharmaceutical producers of india, 46th Annual Report 20112012.
[4] www.pwc.com/India, India Pharma Inc.: Capitalising on India's Growth Potential, CII
Pharma Summit 2010, 22 Nov (1).pdf.
[5] Vijay Bhangale, OTC Marketing of Drugs, International Marketing Conference on
Marketing & Society, 8-10 April, 2007, IIMK, 397-402.
[6] Mickey Smith “Pharmaceutical Marketing in 21st Century’ Viva Books Pvt. Ltd., New
Delhi 2001.
[7] AnshalKausherh “Pharmaceutical Marketing, Emerging Trends “ICFAI University
ICFAI Press, Hyderabad 2007.
[8] GautamKumra, PalashMitra, ChandrikaPasricha McKinsey Report, India Pharma 2015,
Unlocking the potential of the Indian Pharmaceutical Market, McKinsey &Company
2005.
[9] KumudKandpal, “OTC Market in India: Some Growth Drivers”, Medicinman, June
2014, 23-24.
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Telecommunication - A way to change basics of Marketing
Smt. Arti Sharma
Smt. Vaneeta Raney
Sr.Assistant Professor
BMM-coordinator faculty
VIVA Institute of management and research
SIES. College, Sion {W}
Virar (E), Thane
Mumbai
arti_shri@yahoo.com
E-mail: vaneeta80@gmail.com
ABSTRACT:
Telemarketing has created a low cost solution to directmarketing whereas to the
customer it may bring differentresponses. They may be happy to receive such calls or
maybe annoyed, inconvenienced, or even psychologicallyharmed by numerous hang-up
calls during the day. Thereonit becomes interesting to find out that which are the
productsand services that are frequently marketed and whichproducts and services are
readily accepted by customersthrough this medium. It is important to know the
perceptionand attitude of the customers toward telemarketing for itssuccess. This paper
focuses on mostly understanding the concept of telemarketing, common problems
faced, and most preferred ways of improving them.
Keywords : Telemarketing, customer, communication, receive
Introduction :
Telemarketing (telesales) is a form of direct marketing in which a consultant using the
phone or any other means of communication to contact potential clients and market products
and services. Potential customers are identified and classified by various means such as a
history of purchases, Previous surveys, participation in contests or requests for employment
(e.g. via Internet) names can also be purchased from another company database or obtained
from telephone directory, or other public or private list. The classification process serves to
find those potential customers most likely to buy the products or services offered by the
company in question.
Literature Review
Definition of Telemarketing
It is called telemarketing or telesales, a combination del marketing Spanish, discipline
that he makes the product or service to the market efficiently and cost-effectively, with the
strategy to reach the customer to inform, stimulate the purchase of it and sell it, by telephone.
It is what is known as selling over the phone, that sometimes it is quite annoying, when used
in uncontrolled form.
Telemarketing is a means of communication, a channel of information and a space for
sale as valid, as it is for example the radio or television. The process of outsource
telemarketing campaigns to other cities in the same country is known as near shore and
outsource the service to other countries is known as offshore or relocation. Before customary
telephone operators were vendors offering products and services regardless of the needs of
consumers but only its economic benefit, today the Tele operator no longer considered a seller
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but counsel depending on the item that one is working (commercial, financial, advertising,
etc.).
The work of an advisory no longer confined only to do the work of selling old, but it has
the obligation to understand and conform to the real needs of their clients, advise them and
bring them hand suggesting solutions that correspond to them.
Concept of Telemarketing
The telemarketing or Telemarketing is an activity of marketing that allows instant, live,
two-way contact between the supplier and the consumer.The telemarketing saves costly
personal visits, they contact more prospects per day and kept satisfied clients, with base in
good care, and the opportunity to response to the competition.
Objectives of the campaign
Reduce selling expenses replacing personal visits by phone calls.
Increase profits per sales concept to reduce costs and increase sales volumes, since we
can cover a market more big.

Generate new business in Territories not covered by the sales staff.

Improve service to customers, through a contact more often.

Vendors specialize in closing techniques, since over the phone you can prospect, classify
and qualify customers.

Optimize the costs of advertising, through accounts more promising, because that is
better

Known to consumers.

Promotion most diffused.

Respond more quickly when the competition.

Better control of accounts

Revive inactive accounts.

Provide service more personalized.

Extend Sales force with minimum costs.

Introduce new products.

Improve the way sell, since it avoids facing pollution, the high price of transport and
distances that are increasingly larger.
There are basically two ways to use the phone in marketing activities:
Emerging or telemarketing entry; andActively or outbound telemarketing
The phone started being used by the Bell Telephone Company, to promote the sale of
extensions, telephone exchanges, and ads in the yellow pages, technically from Alejandro
Graham Bell produced in 1876 the first phone. For 1935 already had written books on sale
using the phone. Phone companies are which immediately discover the advantages of this
means of communication to make contact with your subscribers to give them support, and
promote related services. The phone provides varied functions in both products and services
marketing:
Market research companies often use telemarketing techniques to find potential or
background of a client's business clients or to poll the acceptance or rejection of a product,


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brand or company in particular. Opinion polls are conducted in a similar way. Telemarketing
techniques can also be applied to other forms of marketing using Internet or fax messages.
To sell:
In favorable conditions, sales can be made by phone on so seamlessly in the client's
Office. To achieve greater effect on sale by phone is recommended to dispatch previously
printed material, in such a way that upon receiving the call the client has information relating
to the offer.
The phone call is ideal for making quick sales, when there are special offers. The phone
is a fast medium for making contacts with clients. When prices are subject to fluctuations, or
the existence of merchandise is small, the telephone call is advantageous.
To promote sales:
Inaccessible markets, you can reach easily. It allows expanding local markets. Recovery
of the lost accounts. It helps to maintain the name of the product.
The first massive campaign of selling by phone was developed in 1970 by Ford Motor
Co. and executed by ITC, possibly the world's best known company offering telemarketing
services. In that campaign were twenty million calls, by 15,000 homemakers specially hired
and trained to make sales using the phones on their homes. Following a carefully programmed
script (script), they made a million calls a day, in order to determine who prospects for the
purchase of a new car were.
On average, each call took a minute. They generated 340,000 positive contacts, 187,000
of which were "valid", i.e. who were interested in purchasing within the next six months.
Attributed to this program, saleswere $65.00 dollars per unit sold, sum the company
considered much lower than its other promotional programmes developed. After this success,
ITC designed and executed a campaign by phone for the sale of subscriptions to the magazine
World. They use a rigorously selected clients list, and again a carefully studied sales
presentation. Sales by phone produced three times subscriptions than direct mail.
Input telemarketing
Much emphasis is given to how to handle the calls that are received in the companies, as
a result either of normal advertising campaigns or direct response campaigns. Many
companies, on the other hand, considered that answer the phone does not form part of the
marketing of a company. In fact it is. Companies that do not care that their phones are well
answered, are losing incredible business opportunities, and damaging its image.
The receptive telemarketing has had a huge spread, since 1981, and the installation of
the numbers 800 and 900, which have reversed the billing of calls, those who receive them.
Response centers began as an economical way of providing service to customers, who did not
know how to manipulate computers every day more sophisticated.
Answers centers installed by companies such as General Electric, AT & T, for the calls
to their 800 numbers, quickly went on to become a powerful marketing tool. Information that
customers provided, duly registered in a data bank, these companies provided important
information to design new products, increase sales, and get referrals (evidence) with great
potential of purchase.
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Telemercado output
The main advantages of the telemarketing of output, are basically cost, coverage, and
productivity. Personal sales are every day more onerous. Considering this factor, for many
organizations it is difficult to maintain a personal sales team covering the potential market
through visits. On the other hand, the increase in competition, makes that companies have to
reduce their costs, which prevents them from maintaining personal sales teams to cover the
potential market. Volumes and some customers purchase rotation does not justify personal
visits.
Cover the market potential, through personal visits, made more difficult by different
reasons, such as the growth of cities, increase of vehicles and traffic problems generated by
him. The companies for their part have increased product lines, to increase the potential
market. This situation has created a gap between the market potential and the ability of sellers
to cover that market. Companies have difficulties to cover potential market, only basis for
personal sales.
Personal sales occupy an important place within the company’s marketing mix. But it is
no longer possible by cost and coverage, resorting to personal sales to visit all potential
customers.
The telemarketing is considered an industrialization of communication services
persuasive is one of the many ways that you are buying the so-called industrialization of
'services'.
It should train very well to the seller in the mode of communicating, pauses, emphasis
that should not be exaggerated, for persuasive communication, whose only tool is the word.
Here the sympathy cannot be represented with a smile or another friendly gesture, unable to
display product to verify what we are saying; the confidence will receive you customer in
words. Yes we can show our patience and our knowledge of what you intend to sell,
answering all the questions with much bias and precision, without neither tiring with long and
tedious explanations, especially type techniques, that the person concerned or intend to whom
interest, is unknown. It is preferable to talk about what is necessary and practical way, taking
account of the characteristics of the product and its applications; guarantees in case of not
work properly or does not correspond with the offer, besides ensuring the delivery and the
mode of payment.
It can be used as single action or complement those carried out face to face.
Potential customers are selected databases that can buy, choose at random (e.g.
phonebook, it is not very efficient, but the only way if you don't have other resources) or
through surveys carried out previously.
Negative perceptions and criticism
Telemarketing has been negatively associated with various scams and frauds, such as
pyramid schemes, and with deceptively overpriced products and services. Fraudulent
telemarketing companies are frequently referred to as "telemarketing boiler rooms" or simply
"boiler rooms". Telemarketing is often criticized as an unethical business practice due to the
perception of high-pressure sales techniques during unsolicited calls. Telemarketers marketing
telephone companies may participate in telephone slamming, the practice of switching a
customer's telephone service without their knowledge or authorization.
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Telemarketing calls are often considered an annoyance, especially when they occur
during the dinner hour, early in the morning, or late in the evening. Some companies have
capitalized on these negative emotions. Since 2007 several forums have sprouted and act as
complaint boards where consumers can voice their concerns and criticism. In response some
telemarketing companies have filed lawsuits against these portals.
Robotic telemarketing
A recent trend in telemarketing is to use robocalls: automated telephone calls that use
both computerized auto dialers and computer-delivered pre-recorded messages in a sales pitch.
Some can simulate a personalized phone call through personalized pre-recorded messages.
These calls often include intentionally deceptive tactics, with computer recorded messages
saying things like "Don't panic but this is your final notice" or "We have already attempted to
contact you through the mail." The messages are often outright lies, intended to incite concern
or fear in the potential customer.
Robo calls are known for failing to add numbers to their do-not-call list and repeatedly
interrupting individuals at all hours of the day.
Telemarketing has recently been advanced to implement a programmed women’s voice
as the operator instead of hiring a real women to perform the task. This attempt showed to be
unsuccessful. However, some scholars may argue that such technological advancements
reinforce commoditization of a woman’s speech as a marketable entity and lead to “gendered
hierarchy of communication”. Since many telemarketing calls now originate offshore, beyond
the reach of US legal or regulatory agencies, the National Do Not Call Registry is usually
ignored, as well as FTC regulations, and every possible number is called in an area code block.
Some automated services are sophisticated enough to analyze the audio from the answering
party, and if it determines that a human did not respond, will call repeatedly until one does or a
limit is reached. This may be coupled with a fake Caller ID display ("spoofing") to mislead the
call recipient into answering, or even thinking it is a local number calling. These are not
actions of legitimate businesses.
Telemarketing techniques are increasingly used in political campaigns. Because of freespeech issues, the laws governing political phone calls are much less stringent than those
applying to commercial messages. Even so, a number of states have barred or restricted
political rob calls.
With new technology, telemarketing has expanded to include video conferencing calls,
as well, although those are typically conducted with existing customers.
Telemarketing is often used to try to sell a product or service, but it can also take the
form of surveys or information gathering. For instance, political campaigns use telemarketing
heavily prior to elections to inquire about voting preferences.
When companies call new customers, the activity is referred to as cold calling. This
means the consumer has not purchased from the company before nor have they requested a
call from the company. Companies can buy a list of potential customers to call from a list
service, which will provide a list of consumers who have similar interests or purchasing
histories who fit the company's target market.
There are many industries that rely heavily on telemarketing, such as:

Cable and Internet services

Home security systems
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Financial services
Vacation and time share
Laws Affecting Telemarketing
There are many federal and state laws that govern how companies can telemarket their
products. One type of law protects cell phone users from receiving telemarketing calls to their
cell numbers. Additionally, two other common and impactful laws are:
1.
Telemarketing curfews There are rules that govern what time telemarketers can make
calls to private phone numbers. The federal laws state that telemarketers cannot call
before 8:00 am or after 9:00 pm in the individual's local time zone. Likewise,
telemarketing calls cannot be made on Sunday or holidays. Each state can alter the
federal laws if they restrict the times even further. They cannot extend the federal
curfew, but each state is allowed to restrict the curfew times to later than 8:00 am and
prior to 9:00 pm locally.
2.
Do-Not-Call List The Do-Not-Call List is an opt-in service that allows consumers to add
their telephone number to the federal list of phone Numbers Company cannot call. This
law applies specifically to companies calling consumers that do not have an established
business relationship with the company.
The future of telemarketing in India
Telemarketing has grown very rapidly over the past 15 years. As telemarketing grows,
many important new trends emerge that can shape and influence telemarketing in the future.

Global multilingual telemarketing: "We will see global telemarketing expand a
hundredfold in the future," says Ken Knecht, an expert of telemarketing. "As
international telephone rates come down, it will be possible to take calls from anywhere
in the world and place them, too."

Tighter labor market: Labor market experts predict a 39% increase in marketing and
sales positions in coming years, making it one of the fastest-growing segments of the
economy. As opportunities for telemarketing grow, the supply of qualified help will
slow. To attract and retain employees, employers will have to offer a whole host of
benefits designed to meet the needs of a new generation of workers. Part-time, flexible,
and stay-at-home jobs are expected to increase as employers make their workplaces
more family friendly. More generous family-leave policies and child-care subsidies can
also be expected, because they help lower turnover and improve productivity.

Increasing focus on Sales and Service: Many people believe that telemarketing is the
perfect growth tool for an economy that is moving from a manufacturing to a service
base. "The more people this industry trains, the greater the potential for the service
industry," "Telemarketing is all about customer contact, dealing with the public. It gets
us away from the old manufacturing mentality." says Henry Greene, an expert of
telemarketing.

Privacy Legislation: One trend that will absolutely affect the telemarketing industry is
the increasing demand for privacy regulation. Neither legislation nor technology will
have much impact on the business-to-business segment of telemarketing. Buying and
selling products and services is the heart of business, and it will continue despite the
controls placed on outbound consumer telemarketing.
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
The Electronic Superhighway: Much is made of the new 'electronic superhighway' that
is projected to replace today's telecommunication system. Now being constructed
through an alliance of cable, telephone and software companies, and the system is
expected to permit interactive communications between homes and businesses. Without
a doubt, telecommunications technology will be essential in making the electronic
superhighway a reality. The new interactive media can replace the need for a live voice
on the phone.

Marketing of Telemarketing: The concern for quality is in the marketing portion of
telemarketing. The level of marketing expertise of clients, whether internal or external,
will certainly continue to increase. The industry needs to stay a step ahead of the
complexity of challenges and opportunities that the future will bring.
The ability to coordinate with and use state-of-the-art marketing research, direct mail,
print advertising and the electronic media must improve. And the systems, software and
hardware required to use effectively the innovative new methodologies that have been
developed must be created. Taking the considerations above into account, it can be anticipated
that several driving forces will continue the expansion of telemarketing:
1.
Continuing demand for convenience and speed in the transaction of business.
2.
Continued improvement in the capabilities and the price performance of computer
technologies and telecommunication.
3.
The abundance of software support systems that facilitate the development of more
extensive and more creative databases about customers and potential customers.
4.
Continued increase in the cost of other forms of communicating with customers.
5.
Increase in the knowledge of how to develop and operate successful telemarketing
programs
Tele marketing companies
1.
DMC Associates & JEM Sales and Marketing
2.
Vocal Heart Info Tech Private
Charitable organizations, alumni associations, and political parties often use
telemarketing to solicit donations. Marketing research companies use telemarketing techniques
to survey the prospective or past customers of a client’s business in order to assess market
acceptance of or satisfaction with a particular product, service, brand, or company. Public
opinion polls are conducted in a similar manner. For our tele-industry, the wake-up call is no
Often, telemarketing companies will make calls from a list and keep track of prospective
customers and existing customers. They would then call the individuals on the list and make a
persuasive sales pitch or an outbound call. Inbound calls are when the customers themselves
will call the sales agents to ask about the products or to make orders. The call agent will still
make some kind of promotional attempt, especially if the customer is yet unsure.
There are a lot of controversies surrounding this marketing practice. Some would regard
it as an unethical (not to mention sometimes annoying) business tactic because of the
persuasive and high pressured sales techniques and pitches that some agents use. There are
also some telemarketers who will generate panic or pressure in the customer, making them
concede to the sale. A lot of people are also against this practice simply because it is
annoying. Telemarketers call at any time of the day, usually at dinner time. This can be very
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disruptive for the client and their family. Often times, they will hang up before a sales pitch is
even begun.
In response to the complaints, there have been organizations that were formed in hopes
of banishing this practice. There are ongoing debates between this industry and these
organizations. There are also government regulations and bills waiting to be passed to regulate
telemarketing practices.
Today, many people are no longer depending on home phones for communication, using
their mobile phones more often. This is also presents a problem for telemarketing lists because
mobile numbers are often kept private or unlisted.
The telemarketing industry can still be very useful and effective if used right.
Telemarketers should make effective sales pitch founded on honesty and integrity. They
should safeguard the rights of the consumers so this industry can still continue to flourish.
Case Study
IBM Software Group UK conducted a multi-stage telemarketing project with the
Business Advantage Group Plc to improve their go-to-market strategy and increase their
success in working with independent software developers as part of the IBM Software
Investment Initiative (SII). Firstly in depth profiles of software developers were gathered to
provide accurate information on potential partners. At the second stage the SII value
proposition was discussed with the selected group of software developers and appointments
made with the IBM Business Development Managers. The project delivered the required
number of qualified appointments (counted as those businesses with which IBM continued
negotiations after the initial visit). Early signs are that Business Development Managers have
been able to be more effective with their selling time, with the time taken to reach contract
stage cut by at least a third in some cases.
Conclusion :
People working with telephone sales and consultancy usually have few opportunities to
influence their own work. This research points to some possible practical improvements which
are as follows. People should be taught how to adjust their desks, which are often electrically
adjustable. Occupational therapists should be available to offer advice. Physiotherapist
services should be used more, Computer programs and computers often crash and must be
made to work better, People should be able to choose a computer mouse and keyboard to suit
them, not wait until neck and back problems occur, Training should include more than just the
computer programs which are used to call people and register conversations, for instance
office and email programs, There should be a greater choice of headsets to chose from, Staff
should be motivated to move around more, both during breaks and in their spare time, Regular
eye tests for over-45s as many experience too much eye strain.
References :

www. Burson Marsteller.com

www.bayt.com/en

www.smallbusiness.chron.com
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A Study of Consumer Behavior and its Impact on Marketing
Prof. Vilasani
Mr. Bajaj
Sinhagad Institute of Business
Sinhagad Institute of Business Administration
Administration & Computer
& Computer Application,
Application,
Lonavala
Lonavala
bajajseapee@gmail.com
vilasani@gmail.com
ABSTRACT:
With the current scenario of marketing, it has become essential to study the
consumer behavior. Consumers are seen as the kings of the markets. No business
organization can run without consumers. All the business activities ultimately terminate
with consumers and aim for consumer satisfaction. The study of customer behavior is
based on the buying behavior of consumers, where the customer plays three distinct
characters of a user, a payer and a buyer.
Consumer buying behavior is now an inseparable and integral part of the strategic
market planning. For developing a firm framework to study the consumer behavior, one
should begin by a proper consideration and study of the evolution in the area of
consumer research also the various paradigms of thought influencing the particular
discipline. A set of those dimensions are noted in the literature which is helpful for the
characterization and differentiation of various perspectives in consumer research.
There is an argument that consumer behavior had itself distinctly emerged in the
1960s as a field of study; and it is broadly characterized by two paradigms, one is the
positivist and other is the non-positivist. The paradigm of the positivist envelops the
economic, cognitive, behavioral, motivational and the situational perspectives which are
referred as the traditional ones because they pre-date the concept of the paradigm of the
non-positivist. Apart from this, the positivist paradigm is still considered the dominant
one, as it emphasizes the superiority of human reason. On the other hand, the nonpositivist paradigm encompasses the interpretive perspectives that are postmodern
which are emerged in recent past during the period from post-1980 to date. Here, the
rational view states the idea of a social culture that is homogeneous in nature which
thereby denies the complex cultural and social world in which the consumers reside.
The traditional perspective of the positivist has a utilitarian approach of the
benefits from consumption. While the perspective of the non-positivist places a greater
emphasis over choice and its symbolic dimensions. A non-positivist research endeavor
deals with the ultimate objective of achieving a better understanding of the consumer
behavior which does not specifically consist of the intent of influencing the consumer
processes. This article strives to denote the various thought streams that can prove a
guide for future consumer research.
Keywords: Consumer behavior, Buying Behavior, consumer research, Positivist
Paradigm, Non-Positivist Paradigm
Introduction:
Marketers always consider consumer behavior being of a great interest to them. The
consumer behavior knowledge guides the marketer to aptly understand how the consumers
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intentionally think, emotionally feel and select their product from various alternative products,
different brands and in what way the environment, family, reference groups and salespersons
influence the consumer’s decision of choice. In this way, culture, society, personality and
psychology are crucial factors impacting the consumer’s behavior. Most of the stated factors
which impact the behavior of consumers are uncontrollable factors and much beyond the reach
of the marketers but they cannot be unconsidered while understanding the complex and
unperceived behavior of consumers. Consumer behavior is the effective study of “the
processes involved when individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires” (Solomon 1995, 7). In the context
of marketing, the term “consumer “ defines not just the act of purchasing, but it also defines
patterns of buying aggregately including the activities of pre-purchase and post-purchase
decisions. The pre-purchase activities may consist of the awareness for a need or a want, also
seeking for the evaluation of product information about and the brands which might be
satisfying it. On the other hand, the post-purchasing activities consist of the evaluation of the
item purchased and utilized and reducing any anxiety regarding the purchase decision of the
items that are not frequently bought and those that are expensive. These activities directly
imply for purchasing and repurchasing decisions and they influence marketers at different
degrees.
Engel, et al. (1986, 5) defines consumer behavior as “those acts of individuals directly
involved in obtaining, using, and disposing of economic goods and services, including the
decision processes that precede and determine these acts”. A general observation gives very
limited insight of the complexity in the nature of the choice of the consumers. The researchers
of behavioral sciences have sought more resolved methods and concepts to investigate, to
understand, to predict and to more effectively control consumer behavior.
Psychology, sociology and social psychology are the disciplines which are most widely
indulged in this endeavor that has become a gradual academic industry with its own right.
This article tends to represent a review of the literature in the ares of consumer buying
behavior, it also give a gist of importance of the factors impacting the consumer behavior in
the light of dominant and positivistic perspectives including an overview of the traditional
perspectives. It also gives a glimpse of the debate between non-positivist and positivist
perspectives of consumer behavior.
Objectives:

To know and study the importance of consumer behavior.

To figure out the impact that the behavior of consumer causes on marketers.
Research Methodology:
Research design: Applied Research
Scope:

The basic purpose served in this article is the identity of various thought streams which
could assist in a way for the future consumer researchers.

In today’s world, how and why the marketers should learn from the behavior of the
consumers and should take rapid progressive efforts towards it.
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About the study:
The personality and perception of the consumers play a vital role for justifying the
behavior of the consumers.
Factors affecting the personality of consumers:
There are broadly two factors which influence the consumers mainly for decision
making, those are aversion of risk and innovativeness. Aversion of risk is a measure as to what
extent the consumers should have the certainty and surety of what they purchase. Consumers
that are highly risk adverse are required to be very sure and confident about their buying
decision. On the other hand, consumers that are less risk adverse can bear some uncertainties
and risks in their purchase decision.
The second factor, innovativeness, is a globally determined measure capturing the
extent to which the consumers are willing to take firm chances and experiment in finding new
ways for doing things. The literature of shopping motivation envelops numerous measures of
the characteristics of an individual (e.g., variety seeking, innovative, cosmopolitan and
venturesome) thus, risk aversion and innovativeness were included for capturing many of
these traits.
Factors affecting the perception of consumers:
Perception is a mentally compiled process, where an individual selects the information
and facts from his environment, organizes them and then he draws significant meanings and
correlations from them.
Perceived Fit:
Perceived fit is a measure of the attitude that how correct and effective a specific
channel of distribution is for a certain product .Morrison and Roberts (1998) jotted that the
perception of consumer of a perceived fit between a product/service and a channel of
distribution is highly influential to determine if that channel can be considered for a certain
service. In reality, it was the perceived fit that was found to be more important than the
preferences of consumers for the method of distribution or for a service.
Quality:
In this world of competition, it is becoming important for the marketers to provide the
best quality product in the market which will help in attracting more customers, also the
marketers can demand higher price for superior quality products.
Packaging:
Packaging helps to establish a direct linkage with the consumers at the very point of
purchase because it can very noticeably change the perceptions that the consumers have for a
specific brand. An outstanding design of the packaging draws the attention of many
consumers. In the earlier days, packaging was considered to be not more than only a container
containing and protecting the product, but today, researches are conducted by the management
regarding right and attractive packaging right from the product development stage itself.
Packaging is concerned with innovation, shelf appeal, aesthetics and convenience for the
consumers too which helps in forming a perception in the minds of the consumers regarding a
particular product and its associated purchase or non-purchase decisions.
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Findings:

All the business activities ultimately terminate with consumers and aim for consumer
satisfaction. The study of customer behavior is based on the buying behavior of
consumers, where the customer plays three distinct characters of a user, a payer and a
buyer. Consumer buying behavior is now an inseparable and integral part of the strategic
market planning.

The knowledge of consumer behavior guides the marketer to aptly understand how the
consumers intentionally think, emotionally feel and select their product from various
alternative products, different brands and in what way the environment, family,
reference groups and salespersons influence the consumer’s decision of choice.
Suggestions:
The marketers should keenly observe the behavior of the consumers and also the factors
and reasons effecting it, also the competitor’s product purchase decision by the
consumers should be analyzed and appropriate and quick actions should be taken for the
firm to be more successful.

Conclusion:
The scenario of competition in today’s world is rapidly changing and higher success is
gained by those companies that can react and strategize to these changes quickly and
promptly. Due to the developments in technology, the outer physical differences and basic
difference in appearance of the products have decreased considerably. Differentiations must be
made on the value and meanings associated with a particular product instead of their physical
features. An effective differentiation of brand can be made possible by building the personality
of the brand. In brand personality, the consumer sees a brand as his friend due to the brand’s
provision of emotional benefits to him.
Overall, there is an argument that the consumer behavior study is evolving rapidly as
the researchers identify and implement new techniques and interdisciplinary perspectives for
understanding the nature of purchase and the behavior of consumption. This broader view tries
to study the consumer behavior in the light of quickly evolving lifestyles, priorities, values and
social contexts.
Various consumer research theories on consumer research were empirically tested after
the middle twentieth century. The distinct and practical emphasis awaited the development in
the field of marketing of the business curriculum. In particular, the consumer’s process of
buying is more important to the practitioners of marketing than the process of consumption.
From the perspective of a practitioner, consumer research is crucial to enable him for
understanding the changing needs, wants and motivation of consumers and for devising the
most apt mix for his market.
The consumer behavior’s dynamic nature implies rapid development of product,
changing ways of communications, and the strategies of distribution in order to be more
effective for the marketer. It is the concept of marketing, as articulated by various scholars of
marketing (e.g., Alderson 1965, Levy 1969, Kotler 1972 and Bagozzi 1975) that helps in
capturing various essential characteristics of the modern marketing that tends to dominate
thinking in this field.
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The decision making process of consumers and the associated behavioral outcomes are
to be studied for bringing about change and prediction. However, the aspect of consumer
research is far beyond the perspective of management, where consumption is in the primary
focus. In the galaxy of events that are involved in the experience consumption, the decision of
purchase forms only a small component. The researchers on consumers should expand their
view to examine the process of decision making. The researcher’s point of focus should move
beyond positivism and into naturalism for achieving a broader understanding regarding the
impact of consumption depicted on the consumer without a specific intent for changing or
influencing the process. Though certain outcomes may be significant to the practice of
marketing, the overall aim for such a research endeavor is to attain a better understanding
regarding consumer behavior.
REFERENCES:

Consumer Behaviour, D.M. and Deshpande, R. (1989), “Situational Ethnicity and
Consumer Behaviour”

Consumer Buying Behaviour – A Literature Review A. Abdul Brosekhan, Dr. C. Muthu
Velayutham

www.wikipedia.com
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FDI in Retail Boon or Bane
Prof. B.M.Hiremath
Dr. C.R. Gudasi
Associate Professor and Head of
Associate Professor
the department
Department of Commerce
Department of commerce
S.V.E.Society’s Arts, Commerce And
KLE Society’s G I Bagewadi
B.C.A College Harugeri, India.
College Nipani, India.
Email: bmhiremath27@gmail.com
ABSTRACT:
The Indian consumers have undergone a remarkable transformation. Just a
decade or two ago, the Indian consumers saved most of their income, purchased the
bare necessities and rarely indulged themselves. Today, armed with a higher income,
credit cards exposure to the shopping culture of the west and a desire to improve their
standard of living, the Indian consumers are spending like never before. Organized
retail with its variety of products and multitude of malls and supermarkets is fueling
their addiction. Their new mentality, in turn, is fueling the growth of organized retail in
India. This paper firstly speaks about the global giants’ entry to India and their myths
and realities.
Keywords: FDI, Retail market, Wal mart, Carrefour, super markets, hyper markets,
shopping malls, kirana stores
Introduction:
Historical Indian retail market consisted of weekly markets, village fairs and mela’s and
the 19th century gave birth to the retail outlets which took the form of convenience stores,
Mom and Pop stores/ kirana stores. This helped the consumers on to stick to a particular store
for their day to day requirements and also avail the credit purchasing facility. And in the
1980’s people have seen the new formats like supermarket, departmental stores and discount
stores entering into the Indian retail space.
The country has witnessed a retail revolution in recent years particularly in urban
revolutionary changes in the last few years- from poorly stacked ‘kirana’ stores. Today most
families prefer to purchase their goods at ‘one stop shops’ where everything is available under
one roof. The grocery industry is one of the most important industries in the Indian economy
The price of food and other staples has a day to day impact on the lives of consumers. Industry
Big houses like Tatas , Piramals , Rahejas , S.Kumar’s , Biyanis , RPG, Reliance have already
made their presence felt in organized retailing by investing significantly in either of the format
like malls / big departmental stores / chain stores/discount storesEvolution of Indian Retail
Industry Barter system was known as the first form of Retail Followed by Kirana Stores and
Mom & Pop Stores Finally Manufacturing era necessitated the small stores and specialty
stores It was a seller’s market till this point of time with limited number of brands available
1980s experienced slow change as India began to open up economy. The latter half of the
1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.
Evolution of Indian Retail Industry Post 1995 onwards saw an emergence of shopping
centers Emergence of hyper and super markets trying to provide customer with 3 Vs - Value,
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Variety and Volume Expanding target consumer segment.Hyper marts/supermarkets Momand-pop stores Departmental stores Convenience stores Shopping malls E-trailers Discount
stores Vending Specialty stores Retail formats in India.
Indian retail Industry is Fifth largest in the world. The current penetration pegged at 5-7
per cent. Accounts for 24% of country’s GDP and 8% of the total employment.
Objectives
Having presented the immense potential and current status of the entry of the global
giants to Indian retail industry, this paper continues to flesh out the Indian retail story with the
objective of highlighting some of the major concerns that organized retailers will have to
consider as they venture into the Indian market. The objective of the paper has five
dimensions:
i.
Discussion about the myths and realities of global giant’s entry to India.
ii.
Overview the two faces of retail sector – Challenges and key success factors.
iii. Review the impact of Organized Retailing on the Unorganized Sector.
iv. Recommendations before allowing FDI in Multi brand Retailing.
Methodology
The paper is based on secondary data published in journals, books, web sites. Based on
available literature and research material, the present paper makes an estimation of the future
taxation on Indian economy. And this topic is explained with images.
FDI in Retail
In 2010, the Indian retail market was valued at Rs.26,100 billion of which the share of
modern retail was a paltry 7 per cent. The sector was expected to grow to Rs. 32, 100 billion
by 2013 with the share of modern retail being 10 per cent. 0 100 200 300 400 500 600 200607 2007-08 2008-09 2009-10 2010-11 2011-12 Rs.in ‘000 crores, India was ranked as the
twelfth largest consumer market and it is expected to be the fifth-largest consumer market by
2025 after the US, Japan, China and the UK. In 2010, India attracted the largest number of
new retailers among emerging and mature markets. The total retail business in India has grown
at 13 per cent annually, from Rs.19, 320 billion in 2006-07 to Rs.39, 400 billion in 2011-12.
With huge growth potential, Indian retail industry has been heralded as one of the
sunrise sectors. By 2015, according to the Investment Commission of India, the retail sector
would grow to USD 660 billion i.e., almost three times its current levels. However, in-spite of
the recent advancements in retailing and its huge contribution to the economy, retailing is still
among the least evolved sectors and the growth of organized retailing is critically slower
compared to the rest of the world. Food retail trade accounts for 63 per cent of total retail sales
in the economy and thus, is a very large segment of the total economic activity of our country.
It holds a vast employment potential and hence, attracts the attention of Government and
foreign major retailers. Enhancing the efficiency and improving the food retail sales would
have a cascading effect on employment and economic activity in the rural areas for the
marginalized workers. Even without any significant involvement of FDI, the corporate owned
sector in retailing is expanding briskly at a high rate.
In India, FDI in cash and carry wholesale with 100 per cent ownership was allowed in
1997 under the Government approval route. Later on in 2006, it was brought under the
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automatic route. Simultaneously, 51 per cent investment in a single brand retail outlet was also
permitted. But till 2013, FDI in Multi-Brand retailing was prohibited in India. Many global
retailers like Wal-Mart, Metro, Woolworth, Staples etc., which wanted to establish and capture
some market share in India are now trying to leverage on the policy of 100% in cash and carry
wholesales route for multi-brand retailing. Similarly, retailers like Debanham, Espirit, Nokia,
Zara, Mark & Spencer, Ham leys, etc., are leveraging policies based on 100% for single brand
retailing. Significant foreign retailers’ presence is seen in Apparel, Fashion, Luxury and food
retailing using either the franchise or licensing route. Recently many global players like
Amazon & Flipkart are taking advantage of online retailing and hence are targeting Indian
consumer by setting up relationship with supply chain companies to deliver products to the
end-customer, thus, bypassing the need to create physical retail stores. To attract Indian
consumers to buy their products online, Crate and Barrel has launched India specific website.
To target Indian consumer, identical efforts are expected by other leading global retailing
giants leveraging on 3G and smart phone apps, spread of internet and social networking.
As retailing still is a very much local industry, the FDI in multi-brand retailing will only
benefit existing organized players in terms of attracting foreign capital and will not change
considerably the retail landscape in terms of formats proliferations - benefiting customers,
generating huge employment or investment in supply chain or back end investment as has
been envisaged in the policy.
It is expected that many transnational retailers will use online route or e-commerce to
attract Indian consumer to start with before setting up physical presence to test the market.
Beneficial Stakeholders
The performance of foreign direct investment till date is round about the satisfactory
level barring the certain issues and challenges. Today, we have more than $303.48 billion as
foreign exchange reserves and above foreign debts are around about $297.5 billion which we
can further improve through export promotions, liberal opportunities of investment for foreign
investors. The future of foreign retail players is also uncertain like that of Indian retail players.
No doubt the opening of the investment opportunities for the foreign investor will make the
Indian industries more competitive and some of them may have to struggle for the survival
such as small retailers and shop keepers. It has been observed from the above analysis that FDI
approval given by the Government will benefit almost all the sectors of the economy. There
are some people who are trying to mislead people for their own selfish benefit and are
opposing the entry of foreign retailers into India. FDI in retail sector will not only benefit the
society but will also help in the economic growth of the country. The Indian retail industry is
gradually inching its way towards becoming the next boom industry. As such, there are many
beneficial stakeholders of FDI in retail sector in India as detailed below:
Farmers and Agriculturists
The large retail chains are in a position to provide better price signals to farmers and to
serve as a platform for enhanced exports. Thus, the organized retail has the potential to drive
efficiencies in this chain by
(i) Increasing price realization for farmers by 10–30 percent through sourcing directly or
closer to the farm
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(ii)
Reducing handling and wastage by 25–50 percent through consolidation as well as
investments in technology, either directly or through aggregators and
(iii) Upgrading the farmers’ capabilities by providing know–how and capital.
SME’s
FDI helps SMEs to supply in large volumes, increase quality and become a vendor to
international players and increase the quality of products and become cost competitive in
global arena.
Consumers And Society
Investments that would flow in agricultural back end and supply chain would ensure
food security through curbing wastages and improving quality for our future generations.
Furthermore, it would lower prices for consumers that can help curb inflation. With its ability
to drive efficiencies and leverage the scale, modern trade is able to increase affordability for
consumers and can lower the cost of monthly consumption basket by as much as 5-10 per cent.
Global Giants in India
Wal-Mart
Wal-Mart has emerged as one of the largest corporations in the world, and definitely
the largest in retail. It started only fifteen years ago. In May 2009, Wal-Mart was ready to
open its first store in India. The reason for Wal-Mart’s entry in India was clear – The Indian
middle class. The world’s biggest retailer had been silently working on its strategy for India
for around two years. Mom-and-pop stores and traditional distribution networks dominated the
$375 billion Indian retail market. Wal-Mart’s first outlet was set to launch in the city of
Amritsar, Punjab in North India. The first store air-conditioned and built over 50,000 sq. ft.
was on the outskirts of the city, Amritsar. The store employed 200 locals and was likely create
500 indirect jobs. In the first few weeks itself, the company had managed to sign on close to
35,000 members. A typical Wal-Mart store sells 60,000 different items; a super centre sells
120,000 items. Wal-Mart is one of the best beneficiaries of corporate led globalization, and
has made communities dependent on supplies from thousands of miles away for everyday
items – including the food we eat and the clothes we wear. If Wal-Mart and other retail chains
get a foothold in India, it will mean displacement of small retailers and farmers. Yet Wal-Mart
is spreading myths about its corporate reach and its predatory growth. These myths have been
totally exposed in the best seller “Wal-Mart effect” by Charles Fishman.
Myth I “Localization”
In an article Wal-Mart’s vision of India published in the Financial Express, 1st June
2007, Raj Jain, President, emerging markets, Wal-Mart has stated: “One key reason for WalMart’s success is localization. We carry local products from local suppliers that appeal to local
tastes, needs and fashions.”
Myth II: “An ally of small retailers”
Wal-Mart is presenting itself as an ally of the small retailers it will destroy. “The Joint
Venture will sell quality merchandise directly to retailers – big and small, including ‘mom and
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pop’ or kirana stores. The purpose is to establish an efficient supply chain linking farmers and
small manufacturers – who have limited infrastructure or distribution strength.”
Myth III: “Provide Quality Jobs”
“Provide quality jobs to India’s unskilled workforce. We expect to provide direct and
indirect jobs to thousands of Indians.”
Myth IV: “Help develop and grow local suppliers”
Wal-Mart’s profits are based on destroying local production and local retail. In 2004,
WalMart bought products from fifty three hundred factories in sixty countries around the
world. This is not local supply. Wal-Mart pushes prices so low that local producers cannot
supply. In 1991, Ridlen Adhesives was abandoned by Wal-Mart because they could not lower
the prices further. As Nancy Ridlen, the owner reports, Wal-Mart said: “We don’t want to pay
50 cents for these glue sticks. We’ll pay 45 cents. Either you take it or we’ll go elsewhere.”
This is what has happened to every product, from locks to lawn movers from shirts to jeans.
And every producer who was destroyed had been tempted by Wal-Mart’s large volumes. As
Jim Wier, who said no to Wal-Mart states: “They had the lure of the Wal-Mart volume? Once
they get hooked on the volume, it’s like getting hooked on cocaine. You’ve created a monster
for yourself.” Let us not fall into the trap of Wal-Mart’s myths. Let us not create a monster for
India’s small producers and retailers.
Carrefour
French retail major Carrefour, the second-largest in the world in terms of revenue (euro
90 billion) after Wal-Mart, is going slow in India, even as its rivals are chalking out bold
expansion plans in the country.
Ever since Carrefour launched its first store in India, a cash-and-carry wholesale format
store at Seelampur, East Delhi on 30th December 2010, the retailer has maintained an
awkward silence on its expansion plan for the country. Interestingly, Carrefour’s only cashand-carry store in Asia at present is in India. The group has a total of 151 cash-andcarry stores
- 137 in France, 13 in Europe (excluding France) and 1 in Asia.
Experts point out three specific reasons why Carrefour is quiet on its India expansion.
First, it wants to be clear about the country’s FDI policy on multi-brand retail before it
formulates a concrete cash-and-carry strategy here. (Currently, FDI is not permitted in multibrand retail, but the government is said to be in a review mode. And, Carrefour has kept its
potential Indian partner for multi-brand retail guessing). Second, the French retailer set up
shop in India only towards the end of December last year and it may still be watching the
market before embarking on an expansion plan. Third, economic slowdown, cost cuts and
related business decisions in many of its European markets have forced it to turn more than
cautious.
Myths and Realities about the Global giants arrival to India
Myths
Realities
Price
Prices of different items The rates at which the vendors sell are less as
are less here.
those in the corporate retail shops.
Middlemen
Corporate retail is
They are becoming the new mega middlemen
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Employment
Better deal or
Best deal
Myths
throwing away
middlemen
They are creating
employment. The
employment potential
projected is 2 million
jobs.
Farmers are getting
better deal.
Corporations are
friends of farmers and
consumers.
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Realities
and creating monopolies by becoming the
wholesaler, distributor and the retailer.
They are robbing livelihoods many more times
then the number of jobs they are going to create.
For creating 2 million jobs they are going to
destruct 40 million livelihoods in retail sector
Corporations are buying from existing mandis
and not straight from farmers at this point of
time, so there is no question of farmers getting a
better deal. In future when the corporation will
have control over the whole supply chain of food,
farmers will have no place to sell other than these
corporations. Then our farmers will face
monopsony as the farmers of the west are facing
now.
Fresh Products
Corporate retail sell
The hawker sells much fresher than any of these
shops. Long distance supply chain and
fresh.
refrigeration means stale fruits and vegetables.
Local Economy Corporate retail is
They have destructed local economy wherever
promoting local
they have gone, and are doing the same in India.
Promotion
Attacks on the reliance stores in Ranchi and
economy.
Indore are preemptive action by people
dependent on local economy.
Efficient Supply Corporate entry will
The supply chain gets more centralized, and the
Chain
make the supply chain
average distance traveled by food increases
more efficient. They are manifolds. In scientific, social and ecological
Management
more scientific than the terms this is inefficient compared to our hawkers
existing system.
Push or Pull
There is huge consumer The corporations are pushing the agenda, never
demand for corporate
have people in India demanded for corporation
Strategy
retail.
led retail.
Grow without
There is room for all, as The corporate retail chains cannot prosper
Indian economy is
without killing the small businesses. The
Kill
growing at an enormous experience of west shows us the truth.
pace.
Money saving
Corporation led shops
Corporations are propagating the habit of
or money
sell cheap and
wasteful consumerism among the Indian
wasting
consumers save money consumers.
shopping
shopping there.
FDI in Organised retail Industry- Farmers' Perspective
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Multi-brand global retail giants like the Wal-Mart, Metro and Carrefour have entered
and may enter into multi brand retail in Indian retail markets if this bill gets approved.
However, the expansion of supermarkets in developing countries is expected. In India,
growing middle class with changing consumption patterns are ideal for supermarkets to
prosper. The total size of Indian retail sector, including organized and unorganized sector is
$300 billion, where currently the organized sector accounts for 2% only but near future the
supermarket retail chains are going to play major role in agro-food sector in India. The
supermarkets concerns are stable, year around supply with high quality and competitive prices.
Supplying to large chain supermarkets gives both potential and large opportunities to our
Indian farmers. The biggest challenge is to follow the strict guidelines by the retail groups in
terms of quality and safety standards since most of the farmers usually deliver their goods to
open markets or to local wholesalers. Mainly Indian farmers are marginal and small who are
having average farm size of 3.3 acres, lack of infrastructure and poor post harvesting practices.
In India 40% of harvests are lost in storage and transportation. India is the second largest
producer of fruits and vegetables but the country is loosing Rs.1 trillion per annum, (estimated
50% of produce) going waste due to lake of storage facilities and difficult to link to far-away
markets. We need large investments to improve our agriculture infrastructure in terms of seed
supply, agrichemicals, processing, machinery, storage facilities, rural transportation and
supply chain linkage to support the current retail trends. This could be achieved through
private investors preferably by organized retailers whether domestic or Global. If it truly
improves the farmer’s income, agriculture growth and food security, there is no need to be
concerned about FDI or domestic. Before bringing the global retailers into the multi brand
retailing in India, the following points should be considered.
a)
First and foremost... the multinational retailer’s trade practices should not dampen the
spirit of Indian farmers and consumers. FDI – Retail should be a process of integrating
Indian economy to the global economy as well as farmers can be integrated into the
world class retail market not on the mercy or control of global retail giants.
b)
The Government should make sure that the farmers will receive the remunerative price
should be between 60% - 70% (based on product category) of the price paid by the
consumer.
c)
International retailers should be mandated to work with farmers to improve yields by
enabling them provide quality inputs, best farm technologies, timely credit and
remunerative prices for their produces.
d)
Government needs to identify the trends and ways of supporting farmers to meet the
needs of modern supply chains and marketing systems to enable with the supermarket
sector.
e)
Government should ensure that the agro produces should be procured from the local
producers and local people must be given priority in employment opportunities in
processing and supply chain.
Challenges faced by the Retail Sector
Supply chain
Finance Minister Pranab Mukherjee had in his 2010-11 budget speech said “... the
second element of the strategy relates to reduction of significant wastages in storage as well as
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in the operations of the existing food supply chains in the country. This needs to be
addressed.” India is the seventh largest country (land mass: 3.2 million sq. kms.) with varying
climatic conditions over the country. Taste and preferences of people vary strongly all across
the country. Catering to people in 35 states and union territories is equivalent to catering to
people in 35 countries, leading to complexities in merchandise/ inventory management.
Infrastructure has been developing at a rapid pace over the past decade but has still a
significant ground to cover; the planned expenditure of US$ 1 trillion in the 12th five year
plan will help bridging this gap. There exists a need for retail to concentrate on developing a
strong back-end support especially for perishable products to help reduce wastages which is
estimated to be at 40 percent of national produce.
Channel conflicts
Globally, retailers maintain a direct relationship with their suppliers. Due to the complex
taxation structure and geographic spread of the country, most FMCG companies have
developed regional distribution and re-distribution network. Cutting out the distribution
network will hurt operating structures of distributors, who as an industry body in the past have
opposed FMCG companies selling directly to retailers. There exists a need for a retailer to
work closely with the suppliers in an attempt to shorten the supply chain network resulting in
saving time and money.
Location and rental
Finding the right location with the right rental for stores has been a challenge for all
retailers. Rent forms a large portion of the total expenditure (6 to 11 percent of the revenue) in
retailer’s income statement and can more often than not convert a profitable store into loss
making. The challenge for a retailer would be to find the right location for their stores either in
malls or as a standalone store to be able to generate enough footfalls. A retailer could evaluate
option of setting up a property development/ management arm that would be able to source/
develop stores at lower rentals.
Unique Indian customer
The Indian consumer experiencing modern retail has now warmed up to this idea.
Buying habits have still not changed, where people prefer to buy most of the fruits and
vegetables on a daily basis. The Indian consumers have a strong preference for freshly cooked
food over packaged food mainly attributed to dietary patterns, poor electricity supply, low
penetration of refrigerators and a family structure where one of the primary roles of the
housewife is feeding the family. There is also an impact on the basket size because of
nonavailability of personal transport facilities, due to which the consumers prefer to buy
smaller quantities from stores conveniently located near their homes.
Regulatory
Currently, indirect taxation structure is complex in India with varying tax rates,
multiplicity of taxes and multiple tax enforcement authorities. Goods and Service Tax likely to
be implemented in 2011 will replace a host of levies like excise, sales tax, value-added tax,
entertainment tax and luxury tax. This is likely to have an impact on the supply chain model
and cost structure of distributive trade, followed by consumer packaged goods companies.
Opening a new store requires a lot of licenses, which have to be obtained from different
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government departments leading to considerable lead time in opening up of the stores. A push
has been made by existing retailers to get the government to have a single window clearance
for getting all the licenses at one place to speed up the process.
Private Labels
Private labels enable retailers to offer products at a better price point attracting footfalls
to the store. This, in turn, not only translates to better margins by cutting out middlemen but
also enhances retailers bargaining power with supplier. Penetration of private labels in
emerging markets is expected to be about 6% of retail sales which in India is estimated to be
about 10 – 12%. The concept is still at a very nascent stage in India given the age of modern
retail in India. Few players have introduced private labels in the category of Food & Grocery,
Apparels, Consumer Durables etc. but reservations still exists towards acceptance of these
products with the Indian consumer. Private labels offering competitive pricing proposition has
helped to generate interest and a slow but steady acceptance from the Indian consumer.
Key Success Factors
Efficient Supply Chains
Highly fragmented supply chains coupled with infrastructure issues and the vast
geographical spread of the Indian market pose huge challenges to the retailers. Indian retailers
have to enhance their supply chains to succeed in the cost conscious market. Segments such as
food and grocery have to cope with very highly unorganised supply chains. Also, the rising
customer expectations would necessitate supply chains with quick reaction times.
Ability to penetrate rural market
The urban area has been the focus of Organised Retail which has led to increased
competition. Rural India is home to 72 Crores consumers across 6 lakh villages. 17% of these
villages account for 50 % of the rural population as well as 60 % of rural wealth. Hariyali
Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej JV), Choupal Sagar (ITC), Kisan
Sansars (Tata), Reliance Fresh, and others such as the Naya Yug Bazaar have already ventured
into the retail market.
Leveraging Technology
The Organised Retail layers have to leverage IT and technology to sustain business
growth through innovation and differentiation. A numbers of retail players like DLF Retail,
Khadims, Diamexon Diamonds have expanded their SAP footprints to simplify business
processes, reduce costs and adapt to the changing industry landscape. GPS and RFID
technology can help in logistics and inventory management.
Customized solutions
The Indian retail market is very heterogeneous in nature. The dynamics for various
segments change with the geography and other cultural factors. The challenge for the retailer
is to keep this heterogeneous nature of the target market in mind and to balance it with other
issues like economies of scale.
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Investing in retail brand (store brand)
A strong retail brand is a critical success factor. The retailers should invest in brand
building activities which would help them in attracting new customers as well as retaining the
existing ones. The strong retail brand will allow the retailers to push through “private labels
“which would strengthen their bottom line.
Customer Relationship Management (CRM)
The retailers have to come up with innovative CRM activities to retain their customer
base and to add on to their brand value. CRM activities like loyalty programs have been
received well by the customers in the past.
Impact of Organized Retailing on the Unorganized Sector
Unorganized retailers in the vicinity of organized retailers experienced a decline in their
volume of business and profit in the initial years after the entry of large organized retailers.
The adverse impact on sales and profit, however, weakens over time. There was no evidence
of a decline in overall employment in the unorganized sector as a result of the entry of
organized retailers. The rate of closure of unorganized retail shops in gross terms was found to
be 4.2 per cent per annum, which is much lower than the international rate of closure of small
businesses. The rate of closure on account of competition from organized retail was found to
still lower, at 1.7 per cent per annum. There was competitive response from traditional
retailers through improved business practices and technology upgradation. Consumers
definitely gained from organized retail on multiple counts. Overall consumer spending has
increased with the entry of the organized retail. While all income groups saved through
organized retail purchases, the lower income consumers saved more. Thus, organized retail is
relatively more beneficial to the less well-off consumers. Proximity is a major comparative
advantage of unorganized outlets.
There was no evidence of an adverse impact by organized retail on intermediaries. There
is, however, some adverse impact on turnover and profit of intermediaries dealing in products
such as, fruit, vegetables, and apparel. Over two-thirds of the intermediaries planned to expand
their businesses, in response to increased business opportunities opened by the expansion of
retail.
Farmers were found to benefit significantly from the option of direct sales to organized
retailers. The average price realization for cauliflower farmers selling directly to organized
retail was about 25 per cent higher than their proceeds from sale to regulated government
mandis. The profit realization for farmers selling directly to organized retailers was about 60
per cent higher than that received from selling in the mandis. The difference was even larger
when the amount charged by the commission agent (usually 10 per cent of sale price) in the
mandi is taken into account.
Large manufacturers have started feeling the competitive impact of organized retail
through price and payment pressures. Manufacturers have responded through building and
reinforcing their brand strength, increasing their own retail presence, 'adopting' small retailers,
and setting up dedicated teams to deal with modern retailers. The entry of organized retail is
transforming the logistics industry. This will create significant positive externalities across the
economy. Small manufacturers, however, did not report any significant impact of organized
retail.
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Recommendations
(i) Modernization of wet markets through public-private partnerships.
(ii) Facilitating cash-and-carry outlets, like Metro, for sale to unorganized retail and
procurement from farmers, as in China.
(iii) Encouraging co-operatives and associations of unorganized retailers for direct
procurement from suppliers and farmers.
(iv) Ensuring better credit availability to unorganized retailers from banks and micro-credit
institutions through innovative banking solutions.
(v) Facilitating the formation of farmers' co-operatives to directly sell to organized retailers.
(vi) Encouraging formulation of "private codes of conduct" by organized retail for dealing
with small suppliers. These may then be incorporated into enforceable legislation.
(vii) Simplification of the licensing and permit regime for organized retail and move towards
a nationwide uniform licensing regime in the states to facilitate modern retail.
(viii) Strengthening the Competition Commission's role for enforcing rules against collusion
and predatory pricing.
Conclusion
The objective is modernization of Indian retail. To achieve it we need to move on three
fronts: first, the government has to proactively assist traditional retailers in competing
successfully with the organized retail by modernizing themselves; second, remove the
domestic regulatory and interstate movement restrictions on retail; and third, allow foreign
entry into multi-brand retail. Corporate retailing in India is witnessing considerable growth.
The share of corporate retail in overall retail sales is projected to jump from around 3%
currently to around 9-10% in the next three years. A number of large domestic business groups
have entered the retail trade sector and are expanding their operations aggressively. Several
formats of corporate retailing like hypermarkets, supermarkets and discount stores are being
set up by big business groups besides the ongoing proliferation of shopping malls in the
metros and other large cities. This will have serious implications for the livelihood of millions
of small and unorganized retailers across the country. Large organized retail is controlled
across the world by many governments. An appropriate regulatory framework for the
organized retail sector in India has to be framed keeping in mind the Indian specificities. India
has the highest shop density in the world with 11 shops per 1000 person. If the corporate retail
starts spreading in India without any control and if the Government brings in Foreign Direct
Investment in the sector, the potential social costs of the growth and consolidation of
organized retail, in terms of displacement of unorganized retailers and loss of livelihoods will
be enormous. Regulation needs to be more stringent and restrictive.
Retailers entering the Indian market need to ensure that they have considered the
opportunity along with the challenges to maximize their returns. Retailers will need to bank on
the local knowledge brought in by their partners/employees/ service providers to be able to
reduce the lead time required by them to set-up operations and get a foothold in the Indian
market.
REFERENCES:
[1] Charles Fishman (2006), “The Wal-Mart Effect: How the World's Most Powerful
Company Really Works--and How It's Transforming the American Economy”
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[2]
[3]
[4]
[5]
[6]
[7]
[8]
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DIPP. (2010), Discussion paper on foreign direct investment (fdi) in multi-brand retail
trading, Department of Industrial Policy and Investment Promotion, New Delhi.
Joseph, Mathew and Nirupama Soundararajan (2009), “Retail in India: A Critical
Assessment”, Academic Foundation, NewDelhi.
Mukherjee Arpita and Nitisha Patel (2005), “FDI in Retail Sector: India”, Academic
Foundation, New Delhi.
Reardon, T. and J.A. Berdegué. (2007), “The Retail-Led Transformation of Agrifood
Systems and its Implications for Development Policies”, Background Paper prepared for
the World Bank’s World Development Report 2008: Agriculture for Development,
Rimisp and MSU: January.
Reardon, T. and R. Hopkins (2006), “The Supermarket Revolution in Developing
Countries: Policies to Address Emerging Tensions among Supermarkets, Suppliers and
Traditional Retailers”, The European Journal of Development Research, vol. 18, No. 4,
pp. 522-545.
“Wal-Mart’s vision of India” The Financial Express, 1st June 2007
An analysis of liberalization of the retail sector and beneficial stakeholder in india with
special reference to FDI in retail, journal of business and economic policy vol 1 no.2
Dec 2014 ISS 2375-0766
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Impact of Online Shopping on Retail Business
Miss. Sangeeta P.Sansuddi (Assistant Professor)
KLE’s G.I.Bagewadi Arts, Science,
commerce UG AND P.G. College,
Nipani. India
E-mail : sansuddisangeeta@gmail.com
ABSTRACT:
In this paper an attempt has been made to highlight the impact of the increasing
trend of online shopping over the various fixed shop retailers. Retailers comprise of a
large section of the population and a larger population is dependent upon these
retailers. But the advent of e-stores with their attractive incentives and wide varieties
has slapped on their face the fear of uncertainty and helplessness. This study looks into
the various aspects about how retail businesses are being affected and also the various
recovery mechanisms they are coming up with to counter those e-stores in their race of
survival. This paper also unravels the effect upon the profitability of the various
concerns due to increasing trend for online shopping. Although the periodicity of the
study is less yet an effective attempt has been made to enlighten the scenario along with
concrete suggestions.
Keywords: E-stores, fixed retailers, turnover, profit-margin, window-shopping.
Introduction
Purchasing products or services over the Internet, online shopping has attained immense
popularity in recent mainly because people find it convenient and easy to shop from the
comfort of their home or office and also eased from the trouble of moving from shop to shop
in search of the good of choice. Online shopping (or e-tail from electronic retail or e-shopping)
is a form of e-commerce which allows consumers to directly buy goods and services over the
internet through a virtual shop. Some of the leading online stores currently in India are
Amazon, Flipkart, Snapdeal, Homeshop18, Myntra etc. Retail is a process of selling goods and
services to customers through multiple channel of distribution. Retail stores may be small or
big but they mostly operate in the same line as “purchasing to sale”. Retail form of business is
as old as civilization and is the most basic form of business.
Types of Retail Stores are like- Departmental Stores - A department store is a retail store
which offers wide range of products to the end-users under one roof. In a department store, the
consumers can get almost all the products they aspire to shop at one place only.
Discount Stores - Discount stores also offer a huge range of products to the end-users
but at a discounted rate. The discount stores generally offer a limited range and the quality in
certain cases might be a little inferior as compared to the department stores.
Supermarket - A retail store which generally sells food products and household items,
properly placed and arranged in specific departments is called a supermarket. A supermarket is
an advanced form of the small grocery stores and caters to the household needs of the
consumer. Mom and Pop Store (also called Kirana Store in India) - Mom and Pop stores are
the small stores run by individuals in the nearby locality to cater to daily needs of the
consumers staying in the vicinity. They offer selected items and are not at all organized.
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Malls - Many retail stores operating at one place form a mall. A mall would consist of
several retail outlets each selling their own merchandise but at a common platform.
The Internet has many advantages over retail stores. Firstly, the choice, whereas the
bookstore at the corner of the street or the nearby cloth store hardly offers 5000 references on
its stalls or 20 designs of a particular garment of same size, Amazon has got hundreds of
thousands of variety. Internet is full of online retailers offering 10 times or even 100 times
more products than the average retailer can possibly dream of.
For an e-commerce website, the costs of storing and referencing a product represent a
small fraction of the cost as compared to the cost of storing and referencing a product for
"physical" stores. From the customer satisfaction and availability of services, online shopping
is creating a major impact upon the retail stores.
Importance of the Study
This study is very much relevant to present times as this will make awareness about the
impact of e-stores upon retail stores. The sudden surge in online shopping and customers have
adjusted to it to a greater extent which it a real cause of concern for the thousands of retailers
who have a small shop offering a small variety of products which are their source of
livelihood. This study wants to unravel the real scenario and also look into the threat that
looms over the various small scale retailers. In this study an attempt has been made so that
retailers are aware of the upcoming that is expected to loom over their business in the near
future so that they can appropriate arrangements to face such challenges. Dynamism stands the
base of the current scenario and as a result of that anything that remains stagnant will be
surpassed by others. It’s time the retailers start thinking deep into this aspect and come up with
better and advanced strategies.
Methodology
This paper is based on secondary data. The information is collected from the various
journals, websites and books. This paper attempts to analysis of the turnover and profit margin
from the online retail sales and also attempts to forecast the future online retail sales in the
year 2019.
What is Driving Consumers to Online?
In the developed world, 77 out of every 100 people are now connected to the internet.
This high level of internet penetration coupled with a generation brought up online and
familiar with the digitally connected lifestyle, we think has led to comfort in sharing their
personal details online. With this comfort in using both the internet and sharing personal
details, it seems inevitable that savvy retailers would capitalize on these favorable market
characteristics.
According to research by Macquarie Bank, the online drive by consumers is being
driven by primarily by three things:
Price – in a largely price transparent world, consumers are able to use the internet to
quickly and easily compare prices online. Websites such as Static Ice and Shopbot aggregate
pricing from various retailers and display them sorted by price. International retailers who
have the existing advantage of lower labour and occupancy costs have been further helped by
the strength of the Australian dollar, which made their prices relatively cheaper still.
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Convenience of the shopping experience – Consumers cite convenience as being one of
the reasons of their shift to buying online. Consider that you can do all your research, order
and have your goods delivered to your doorstep without setting foot outside of your own
home, or looking up from your mobile screen.
The range of products available online – Physical constraints can inhibit retailers from
displaying or carrying a full range of items, in contrast to online-only retailers who can display
any and every product they sell, and only pay for warehousing and postage costs. Amazon for
example, has an operating cost to sales ratio half that of its in-store peer average. Furthermore,
certain products are simply unavailable offline, for example, media and entertainment content
available from US and UK that do not have local distribution licenses.
There is evidence to suggest that as consumers become more comfortable with the
experience of purchasing online4, that convenience and product range become relatively more
important as a deciding factor to continue shopping online. Price is the gatekeeper.
Online Retail Market- Breakup by Products:
Source : PWC Reports eolutio of e-commerce in India
What are the Impacts to Retailers?
Analysis by Exane BNP Paribas shows that in Europe, retailers face the combination of
stagnating retail sales, rapidly rising online sales and modestly growing space; causing
reduced sales density – a measure of sales productivity on the basis of space.
On the other hand, retailers are being forced into investment spending in order to
develop new channels to compete with the online entrants.
Combining these issues, European retailers are facing a deteriorating external
environment, existing high fixed costs, as well as increased capital expenditure, which means
that retailer margins are likely to decrease.
BNP estimate that the shift to multi-channel by European retailers will lead to a 24%
reduction in operating profits. It’s likely however, that this fall in profit will not simply be
borne by the retailer alone.
What are the Retailers doing for this?
Globally, retailers have had to adapt to the changes ongoing in the market in order to
survive. The retail response to changes facing the industry appears to be toward strong, more
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personalized engagement, flexibility and community. PSFK in its 2012 report The Future of
Retail described several key trends (amongst others) emerging in retail:

Shoppers and retailers trading data for more personalized service

Retailers using shopper data to construct personalized shopping experiences

Shoppers developing a community around a brand, and act as an ‘affiliate’ for the brand
improving retail stickiness.
In Europe, where the prevailing culture of online shopping is more mature, retailers are
investing in developing multiple channels with which to do business with shoppers. The multichannel approach means that retailers are ideally indifferent to where a purchase occurs, in
person, online, through a mail order catalogue. The key to success in this strategy appears to
be a seamless integration across the different channels to ensure a consistently engaging,
quality experience for the customer.
Neiman Marcus the United States luxury store is a great example of integrating multiple
channels. Neiman developed a location-aware iPhone application called NM Service, which
enables an opt-in service letting customers program the app with their preferences which are
pushed to sales staff as the user enters the store. The sales associate at the store is provided
with the user’s social media information as well as the selected preferences of the application.
The app also works in reverse, allowing customers to set up appointments with sales staff and
identify who the manager of a store is.
Australian retailers currently enjoy the highest retail margins globally, according to
Macquarie Bank4. The high retail margins are driven by unique structural factors in the
Australian retail market, mainly labour and occupancy costs. Occupancy costs drive around
half of a retailer’s operating cost base. Retailers are pursuing productivity gains as a way of
reducing their labour costs and there is evidence that this investment in productivity is
resulting in price competitiveness. This increased price competitiveness should help traditional
‘Bricks and Mortar’ (‘B&M’) retailers clawback some of the substitution away to online
retailers by customers.
B&M retailers appear to be undertaking an integrated, multi-channel approach.
In order to compete against online players, it is clear to us that retailers are focusing on
shopping centers that provide the following favorable characteristics:

High productivity

Growth potential

Efficient layouts

Positive competitive dynamics

High shopper traffic
These characteristics are critical for landlords to ensure that their shopping centers
perform. Ultimately, landlords must have a clear understanding of the value they are creating.
If landlords can satisfy retailers on the above characteristics they will have a strong shopping
centre.
How the Internet is Affecting Retail? - Permanently
E-commerce is experiencing an unparalleled expansion for over a decade. From a few
percent ten years ago to almost 20% for certain categories of products, the Internet has become
a major sales channel in the B2C globalized commerce.
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What are the benefits of e-commerce on traditional commerce? What are the
implications on our lives? What is the future of retail in the medium term? I'll try to offer my
perspective and my analysis of the situation.
Obvious Advantages for Users
The Internet has many advantages over traditional commerce (physical) represented by
our shops. Firstly, the choice. Whereas the surviving bookstore at the corner of the street
hardly offers 5000 references on its stalls, Amazon has got hundreds of thousands of books.
Internet is full of online retailers offering 10 times or even 100 times more products than the
average retailer can possibly dream of.
For an e-commerce website, the cost of storing and referencing a product represents a
small fraction of the cost of storing and referencing a product for "physical" stores.
As clearly explained through Chris Anderson's best-seller “The long tail”, online players
have lower storage and listing costs than physical stores, allowing websites to list clearly more
products than traditional shops.
They can provide best-seller products (the head of the curve) along with less known
products (the long tail). Insert a drawing here (long tail curve)
The second advantage of e-commerce websites compared to traditional shopping seems
to be the price.
E-tailers exert significant pressure on selling prices offered to users. They almost always
offer better prices than their traditional counterparts. This aggressiveness of selling prices can
be explained by two factors:

Mode of operation. The e-retailer has fewer expenses than the physical store.

Sales volumes. E-shopping is more likely to negotiate its purchase price and get
discounts from suppliers. This advantage is all the more important that we are currently
experiencing a crisis that strongly impacts the purchasing power of consumers.

Open 24/7, 365. This is even more important given consumers have less free time (as
travel time and work time increases). Businesses, despite extended opening hours can
not compete with e-tailers.
And here are three competitive advantages of electronic commerce on the physical
shops. (But look closer, another phenomenon linked to the optimization of usage of internet
undermines traditional commerce.)
Side Effects Still Underestimated
Internet is not just a big mega store or cornucopia. It is also, and this is less often
discussed, a great tool for linking supply and demand, otherwise known as a market place.
Yesterday, we used to struggle to sell our old stuff; today, with Internet, via eBay or
other market places, we can sell or trade our products with great ease.
This global massive optimized relationship between supply and demand inevitably leads
to a contraction of the new goods market.
More interestingly, this always growing second-hand market has created new
consumption habits.
Suppose I buy a brand new book for $15 on Amazon. Once I've finished reading it, I can
probably sell it for at least $10 on any second-hand website (like eBay, Craigslist or
Priceminister).
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The whole process harms twice the traditional bookseller. The first time when I buy the
book through amazon. The second when I sell it as a second-hand. In doing so, I have
consumed the "action of reading" and not the "book object". The Internet allows the
emergence of new habits which impact seriously on the historical consumption.
The second-hand market is steadily increasing also being helped by global crisis and
decreasing consumer purchasing power. Everyone is now both a customer and a supplier.
Future of the online retail sales in India:
Analysis of the online retail sales in India:
From the above figure it is clear that online retail sales in India is drastically increasing.
In the year 2009 2.5 US dollars in the year 2011 6.3 US dollars in the year 2014 17 US dollars
and in the year 2019 it may be 100 US dollars.
Online Retail Market in India:
No missed sale due to non availability of desired size.
Larger variety can be displayed with better visual merchandising.
Minimum inventory carrying costs and real estate costs.
Cost saving can be passed on to consumer as discounts.
Following figure describe the online retail market in India




Online Retail Category Wise Taxation AND GMV
Usage of online or offline marketing:
44% of the Indian retailers use mix of both online and offline marketing activities.
Findings, Suggestions and Conclusions
Findings:
E-commerce is consistently taking up a larger proportion of consumer time and
spending. There are several driving factors for consumers to shop online with price,
convenience in shopping and wide range of available products being the primary. The major
findings of the study are as follows:
1.
Turnover and profit margin of the retailers has considerably decreased in the past few
years.
2.
Retail stores are now-a-days more engaged in services related to customer satisfaction.
3. Although the retailers are not able to keep a wide variety in their stock, they attempt to
keep the best of them so as to affect more sales.
4.
Customers are seen to make window shopping at an alarming higher rate to have a
physical look at the product and buy that product online at a reduced rate.
5.
Retail stores are now starting up with home delivery services of their various products at
the door step of their customers.
6.
The consumers become more comfortable with the experience of purchasing online with
the convenience and product range become relatively more important as a deciding
factor for shopping online.
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Suggestions:
Retailers have to change their attitude towards the market. Today’s is a consumer market
and as a result the priority is the consumer satisfaction. The firm has to be in the good books
of the consumer. Better quality products, fair price and friendly after-sale services are the
basic areas in which the business has to concentrate to a remarkable extent. Additional
services should be provided to the consumers to woe them and build upon a loyalty which in
turn would ensure a stable sales in the years to come.
Conclusion:
The face of retail has changed. The advent of technology in recent period being the
primary reason for it. Today, retailing means going into shopping centers, going online and
going mobile. In all these, small retailers miss out somewhere. But the nearby store is always
the most important concern for all reason and seasons. It needs to revive not just survive. The
retail stores needs to simply uplift its pattern of business and face the competitive world with a
more positive outlook. E-stores and retail stores both have to survive, none at the cost of the
other. It’s not just about the livelihood it gives to the thousands of people but also the
convenience and the steadfastness of a fixed retail store.
REFERENCE:
[1] Internet Retailing Boom 2.0, Morgan Stanley Research Asia Pacific June 2011.
[2] CEO of Land Securities and AMP Capital Research September 2013.
[3] Asia Insight: Internet Retailing Boom 3.0 Morgan Stanley June 2012.
[4] www.scibd.com
[5] www.google.com
[6] www.forbes.com
[7] www.boostthenews.com
[8] Asia Insight: Internet Retailing Boom 3.0 Morgan Stanley June 2012.
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Globalization and its Impact on Retail Industry
Prof. Dr. S.G. Hundekar
Prof. C.V.Koppad
Chairperson,
Associate Professor,
Department of Commerce
Department of commerce
KLE Society’s G I Bagewadi College Karnatak University Dharwad, India.
Nipani , India
Email: sghundekar@yahoo.com
Email: cvkoppad22@gmail.com
ABSTRACT:
This paper provides detailed information about globalistion and its impact on the
growth of retailing industry in India. The Indian retail industry is divided into organised
and unorganised sectors. Organised retailing refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales tax, income tax, etc. These
include the corporate-backed hypermarkets and retail chains, and also the privately
owned large retail businesses. The study observes that most Indian retail players are
under serious pressure to make their supply chains more efficient in order to deliver the
levels of quality and service that consumers are demanding. Long intermediation chains
would increase the costs by 15 per cent.
Key Words: Globalisation, Retailing, Organised Sector, Unorganised Sector, FDI
Objectives of the Study
1.
To understand the retail industry in India.
2.
To identify investment opportunities in retail sector.
3.
To identify challenges and opportunities in retail sector.
4.
To analyse the growth of retail sector in India .
5.
To offer recommendations.
Methodology :
The paper is based on secondary data published in journals, books, web sites. Based on
available literature and research material, the present paper makes an estimation of the future
taxation on Indian economy. And this topic is explained with images.
Introduction
This paper provides detailed information about globalistion and its impact on the growth
of retailing industry in India. It examines the growing awareness and brand consciousness
among people across different socioeconomic classes in India and how the urban and semiurban retail markets are witnessing significant growth. It explores the role of the Government
of India in the industry's growth and the need for further reforms. In India the vast middle
class and its almost untapped retail industry are the key attractive forces for global retail giants
wanting to enter into newer markets, which in turn will help the India Retail Industry to grow
faster. The paper includes growth of retail sector in India, strategies, strength and opportunities
of retail stores, retail format in India, recent trends, and opportunities and challenges. This
paper concludes with the likely impact of the entry of global players into the Indian retailing
industry. It also highlights the challenges faced by the industry in near future.
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The retail market in India has been valued at US$ 833 trillion by the year 2013 and the
growth of retail in India is very fast paced. Simultaneously, the consumers spending have also
gone up exponentially as the last four years. The consumer spending in India surged to 75 per
cent. Also, the organized sector had promised to grow at a CAGR of 40 per cent by the year
2013. With a contribution of 14 percent to the national GDP and employing 7 per cent of the
total workforce in the country, the retail industry is heralded as one of the significant pillars of
the Indian economy. According to the Investment Commission of India, the retail sector would
grow to US$ 660 billion by 2015, i.e. almost three times its current levels. The modern
retailing with 6 per cent share stands at US$ 26 billion and is projected to reach 1.3 trillion
USD by 2018 (at a CAGR of 10%). Until 2011, the Indian Central Government denied
Foreign Direct Investment (FDI) in multi-brand retail, forbidding foreign groups from any
ownership stake in supermarkets, convenience stores or other retail outlets. Even single-brand
retail was limited to 51 per cent shareholding and subjected a bureaucratic processing. In the
late 2012, the Government of India unveiled a Foreign Direct Investment Policy allowing
foreign retailers to own up to 51 per cent in multi-brand retail and 100 per cent in single brand
retail. It is expected that these stores will now have full access to over 200 million urban
consumers in India, approximately 47 per cent of who are below the age of 30 years with high
levels of consumption.
The Indian retail sector was liberalized with a view to attract FDI motivated by low
domestic savings rates, accompanied by inefficient financial intermediation, which hampered
their strategies to finance growth in retail. The capital has perennially been one of the scare
resources that are required for economic development in the areas of health, poverty,
employment, education, research and development, technology up gradation and global
competition. The flow of FDI in India from across the world will help in mobilizing the funds
at cheaper cost for better technology, employment generation, and upgraded technology
transfer, scope for more trade, linkages and spillovers to domestic firms. The FDI could also
pave way for proper tapping of natural resources, development of basic economic
infrastructure and improvement in the balance of payments position, among others. The
liberalized retail would help flow of several benefits to stakeholders like consumers,
unorganized trade, farmers, producers, the exchequer, etc
Background
The Indian retail industry is divided into organised and unorganised sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets etc.
These include the corporate-backed hypermarkets retail businesses. Unorganised retailing, on
the other hand, refers to the traditional formats of low-cost retailing, for example, the local
kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart
and pavement vendors, etc.
Positive Aspects of Globalization
Increased free trade between nations
Increased liquidity of capital allowing investors in developed nations to invest in
developing nations
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The business market in the world has no boundaries, they can Market their products in
any part of the world.
Corporations have greater flexibility to operate across borders
Global mass media ties the world together
Increased flow of communications allows vital information to be shared between
individuals and corporations around the world
Greater ease and speed of transportation for goods and people
Reduction of cultural barriers increases the global village effect
Spread of democratic ideals to developed nations
Greater interdependence of nation-states
Negative Aspects

Increased flow of skilled and non-skilled jobs from developed to Developing nations as
corporations seek out the cheapest labor

Foreign salaries attracted a lot of human capital which affected our Productivity

Lead to a great dissatisfaction among the Under Developed/developing countries.
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Increased the chances of inferiority complex among these nations.
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Increased likelihood of economic disruptions in one nation effecting all nations

Corporate influence of nation states far exceeds that of civil society organizations and
average individuals

Greater risk of diseases being transported unintentionally between Nations

Spread of a materialistic lifestyle and attitude that sees consumption as the path to
prosperity
Investment Opportunities in the Retail Sector
AT Kearney's study on global retailing trends found that India is the least competitive as
well as least saturated of all major global markets. This implies that there are significantly low
entry barriers for players trying to setup base in India, in terms of the competitive landscape.
The report further stated that global retailers such as Walmart, Carrefour, Tesco and Casino
would take advantage of the more favourable FDI rules that are likely in India and enter the
country through partnerships with local retailers.
Other retailers
Such as Marks & Spencer and the Benetton Group, who operate through a franchisee
model, would most likely switch to a hybrid ownership structure. A good talent pool,
unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs
is expected to make India overtake the world's best retail economies by 2042, according to
industry players. The retail industry in India, according to experts, will be a major employment
generator in the future. Currently, the market share of organised modern retail is just over 4
per cent of the total retail industry, thereby leaving a huge untapped opportunity.
The Potential of The Indian Retail Sector
The high growth projected in domestic retail demand will be fuelled by
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The migration of population to higher income segments with increasing per capita
incomes
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An increase in urbanization
Changing consumer attitudes especially the increasing use of credit cards
The growth of the population in the 20 to 49 years age band
There is retail opportunity in most product categories and for all types of formats
Food and Grocery: The largest category; largely unorganised today
Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in
the next 10 years
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Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years

Opportunities for investment in supply chain infrastructure: Cold chain and logistics.

India also has significant potential to emerge as a sourcing base for a wide variety of
goods for international retail companies
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Many international retailers including Wal-Mart, GAP, JC Penney etc. are already
procuring from India.
The sector is expected to see an investment of over $30 billion within the next 4-5 years,
catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak
estimates.
Of the total organised retail market of Rs 550 billion, the business of fashion accounts
for Rs 300.80 billion, which translates into nearly 55 per cent of the organised retail segment
in the country.
Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the
country's retail market of Rs 12,000 billion. Commanding such a large chunk of the organised
retail business in India, fashion retailing has indeed been responsible for single handedly
driving the business of retail in India.
Challenges & Opportunities
Retailing has seen such a transformation over the past decade that its very definition has
undergone a sea change. No longer can a manufacturer rely on sales tov Today, retailing is
about so much more than mere merchandising.
It's about casting customers in a story, reflecting their desires and aspirations, and
forging long lasting relationships. As the Indian consumer evolves they expects more and
more at each and every time when they steps into a store. Retail today has changed from
selling a product or a service to selling a hope, an aspiration and above all an experience that a
consumer would like to repeat.
For manufacturers and service providers the emerging opportunities in urban markets
seem to lie in capturing and delivering better value to the customers through retail. For
instance, in Chennai CavinKare's LimeLite, Marico's Kaya Skin Clinic and Apollo Hospital's
Apollo Pharmacies are examples, to name a few, where manufacturers/service providers
combine their own manufactured products and services with those of others to generate value
hitherto unknown. The last mile connect seems to be increasingly lively and experiential.
Also, manufacturers and service providers face an exploding rural market yet only marginally
tapped due to difficulties in rural retailing. Only innovative concepts and models may survive
the test of time and investments
However, manufacturers and service providers will also increasingly face a host of
specialist retailers, who arev characterized by use of modern management techniques, backed
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with seemingly unlimited financial resources. Organized retail appears inevitable. Retailing in
India is currently estimated to be a US$ 200 billion industry, of which organized retailing
makes up a paltry 3 percent or US$ 6.4 billion. By 2010, organized retail is projected to reach
US$ 23 billion. For retail industry in India, things have never looked better and brighter.
Challenges to the manufacturers and service providers would abound manufacturers and
service providers would aboundv to organized retail.
Challenges in Retailing
The industry is facing a severe shortage of talented professionals, especially at the
middle-management level
Most Indian retail players are under serious pressure to make their supply chains more
efficient in order to deliver the levels of quality and service that consumers are demanding.
Long intermediation chains would increase the costs by 15 per cent.
Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports
has further led to the impediment of a pan-India network of suppliers. Due to these constraints,
retail chains have to resort to multiple vendors for their requirements, thereby, raising costs
and prices.
The available talent pool does not back retail sector as the sector has only recently
emerged from its nascent phase. Further, retailing is yet to become a preferred career option
for most of India's educated class that has chosen sectors like IT, BPO and financial services.
Even though the Government is attempting to implement a uniform value-added tax
across states, the system is currently plagued with differential tax rates for various states
leading to increased costs and complexities in establishing an effective distribution network.
Stringent labor laws govern the number of hours worked and minimum wages to be paid
leading to limited flexibility of operations and employment of part-time employees. Further,
multiple clearances are required by the same company for opening new outlets adding to the
costs incurred and time taken to expand presence in the country
The retail sector does not have 'industry' status yet making it difficult for retailers to
raise finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreign players
resulting into limited exposure to best practices
Non-availability of Government land and zonal restrictions has made it difficult to find a
good real estate in terms of location and size. Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions.
Opportunities
Retailing in India is gradually inching its way toward becoming the next boom industry.
The whole concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling shopping centers, multi-storied
malls and huge complexes offer shopping, entertainment and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of organized
retailing and growth in the consumption by the Indian population is going to take a higher
growth trajectory.
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The Indian population is witnessing a significant change in its demographics. A large
young working population with median age of 24 years, nuclear families in urban areas, along
with increasing workingwomen population and emerging opportunities in the services sector
are going to be the key growth drivers of the organized retail sector in
Growth of Retail Sector in India
Retail and real estate are the two booming sectors of India in the present times. And if
industry experts are to be believed, the prospects of both the sectors are mutually dependent on
each other Retail, one of India's largest industries, has presently emerged as one of the most
dynamic and fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country's GDP and around eight per cent of in India is
gradually inching its way toward becoming the next boom industry
As the contemporary retail sector in India is reflected in sprawling shopping centers,
multiplex malls and huge complexes offer shopping, entertainment and food all under one
roof, the concept of shopping has altered in terms of format and consumer buying behavior
ushering in a revolution in shopping in India. This has also contributed large-scale investments
in the real estate sector with major national and global players investing in developing the
infrastructure and construction of the retailing business. The trends that are driving the growth
of the retail sector in India are
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Low share of organized retailing
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Falling real estate prices
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Increase in disposable income and customer aspiration
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Increase in expenditure for luxury items
Predicted mall distribution space in India
SOURCE: CII Report/ Retail Scenario in India
Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas, along
with increasing working- women population and emerging opportunities in the services sector.
These key factors have been the growth drivers of the organized retail sector in India which
now boast of retailing almost all the preferences of life Apparel & Accessories, Appliances,
Electronics Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many
more. With this the retail sector in India is witnessing rejuvenation as traditional markets make
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way for new formats such as departmental stores, hypermarkets, supermarkets and specialty
stores.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If II cities are no longer behind in the
race. If projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the
Tier II cities. The government of states like Delhi and National Capital Region (NCR) are very
upbeat about permitting the use of land for commercial development thus increasing the
availability of land for retail space; thus making NCR render to 50% of the malls in India.
Retail space distribution in Delhi, NCR
SOURCE: CII Report/ Retail Scenario in India
India is being seen as a potential goldmine for retail investors from over the world and
latest research has rated India as the top destination for retailers for an attractive emerging
retail market. India's vast middle class and its almost untapped retail industry are key
attractions for global retail giants wanting to enter newer markets. Even though India
has well over 5 million retail outlets, the country sorely lacks anything that can resemble a
retailing industry in the modern sense of the term. This presents international retailing
specialists with a great opportunity. The organized retail sector is expected to grow stronger
than GDP growth in the next five years driven by changing lifestyles, burgeoning income and
favorable demographic outline
Reason for the Growth of Retail Industry
(i) Existing Indian middle classes with an increased purchasing power
(ii) Rise of upcoming business sectors like the IT & engineering Firms
(iii) Change in the taste and attitude of the Indians
(iv) Effect of globalization Heavy influx of FDI in the retail sectors in India
(v) Big Bazaar Crossword, Ebony Retail HoldingsLtd., Food Bazaar, Globus Stores Pvt.
Ltd., Food World Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Titan Industries
(vi) Reliance Retail Ltd
(vii) New entrants like Wal-Mart Stores, Carrefour, Tesco, Boots Group
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Recent Trends
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Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
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India is rated the fifth most attractive emerging retail market: a potential goldmine.
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Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes
up 3 percent or US$ 6.4 billion
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As per a report by KPMG the annual growth of department stores is estimated at 24%
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Ranked second in a Global Retail Development Index of 30 developing countries drawn
up by AT Kearney.
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Multiple drivers leading to a consumption boom:
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Favorable demographics
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Growth in income
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Increasing population of women
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Raising aspirations: Value added goods sales
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Food and apparel retailing key drivers of growth
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Organized retailing in India has been largely an urban phenomenon with affluent classes
and growing number of double-income households
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More successful in cities in the south and west of India. Reasons range from differences
in consumer buying behavior to cost of real estate and taxation laws.
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Rural markets emerging as a huge opportunity for retailers reflected in the share of the
rural market across most categories of consumption
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ITC is experimenting with retailing through its e- Choupal and Choupal Sagar -rural
hypermarkets
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HLL is using its Project Shakti initiative- leveraging women self-help groups - to
explore the rural market
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Mahamaza is leveraging technology and network marketing concepts to act as
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An aggregator and serve the rural markets.
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IT is a tool that has been used by retailers ranging from Amazon.com to eBay to
radically
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Change buying behavior across the globe
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'E-tailing' slowly making its presence felt.
Recommendations
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Grant full status to retail
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Permit FDI in Retail in phases
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Invest in supply chain infrastructure
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Ease distribution - infrastructure creation octroi
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Ensure single window clearance for retail chains
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Organize market for real Estate
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Organize market for real Estate • Ensure proper rent laws
Conclusion
The retail sector has played a phenomenal role throughout the world in increasing
productivity of consumer goods and services. It is also the second largest industry in US in
terms of numbers of employees and establishments. There is no denying the fact that most of
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the developed economies are very much relying on their retail sector as a locomotive of
growth. The India Retail Industry is the largest among all the industries, accounting for over
10 per cent of the country's GDP and around 8 per cent of the employment. The Retail
Industry in India has come forth as one of the most dynamic and fast paced industries with
several players entering the market. But all of them have not yet tasted success because of the
heavy initial investments that are required to break even with other companies and compete
with them. The India Retail Industry is gradually inching its way towards becoming the next
boom industry
REFERENCES
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Economic Survey (2010
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A Report on Indian Retail Industry
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Corporate catalyst India
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CII Report/ Retail Scenario in India
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www.fibre2fashin.com
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Report on ICICI Bank
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British Retail Consortium
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ICRIER Report
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Emerging Trends in Online Marketing
Mrs. S. A. Deshpande
Assistant Professor
KLE’s G.I.Bagewadi Arts, Science, Commerce UG
and P.G. College, Nipani. India
ph.No.08338-220116
Mobile.No : 8897984343
E-mail : suparnad2007@gmail.com
ABSTRACT:
Marketing is at the core of all business activities. The worldwide web is a very
diverse marketing platform used by most organizations for marketing all types of
products and services. Online marketing includes social marketing, word ads, banner
ads, video Advertisement etc. Like other forms of market, internet marketing has its
advantages and disadvantages. The ability to pinpoint target customers, accurate
measurement of effectiveness of marketing strategies and customer relationship
management are the major advantages of online marketing. On the internet the level of
consumer exposure varies greatly when compared to traditional media. Visibility is the
prime prerequisite for online marketing, traffic cannot increase if people don’t have
sufficient knowledge about the company and its offerings. Website marketing services
increase website visibility by optimizing and promoting the website. Understanding the
current trends and adapting to the ever demanding needs of consumers and technology
advancements are vital to the real success of online marketing.
Keywords: Online Marketing, Social Marketing, E-mail Marketing, Real time
Marketing, Content Marketing,
Introduction
With PC penetration growing rapidly across the world and the globalized markets, the
companies are increasingly using new digital tools extensively for customer service, product
development and advertising online. The internet has become an essential medium for all the
companies to market their products & services. Now with increasing local search and people’s
new habit of searching on the Internet first, all businesses should include some online
marketing in their marketing mix. The art of online marketing involves finding the right online
marketing mix of strategies that appeals to target market and will actually translate into sales.
Objectives of the Study
1.
To understand the concept of Online Marketing.
2.
To know the Types & Strategies of Online Marketing.
3.
To understand the benefits of Online Marketing.
4.
To identify prevailing trends & anticipating emerging trends in Online Marketing.
Methodology
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The paper is based on secondary data published in journals, books, web sites. Based on
available literature and research material, the present paper makes an estimation of the future
taxation on Indian economy. And this topic is explained with images.
Online Marketing
“Online Marketing is the art and science of selling products or services over digital
networks, such as the internet and cellular phone networks.”
Types of online Marketing
Various types of Online Marketing are listed below:

Search Engine Marketing
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Search Engine Optimization
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Email Marketing
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Social Media Marketing
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Pay-Per-Click
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Article Marketing
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Video Marketing
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Affiliate Marketing
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Search engine marketing (SEM) is a form of Internet marketing that involves the
promotion of websites by increasing their visibility in search engine results
pages (SERPs) primarily through paid advertising.
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Search engine optimization (SEO) is the process of affecting the visibility of
a website or a web page in a search engine's unpaid results—often referred to as
"natural," "organic," or "earned" results. In general, the earlier (or higher ranked on the
search results page), and more frequently a site appears in the search results list, the
more visitors it will receive from the search engine's users. SEO may target different
kinds of search, including image search, local search, video search, academic
search,[1] news search and industry-specific vertical search engines.

Email marketing is directly marketing a commercial message to a group of people
using email. In its broadest sense, every email sent to a potential or current customer
could be considered as e-mail marketing. It usually involves using email to send ads,
request business, or solicit sales or donations, and is meant to build loyalty, trust, or
brand awareness. Email marketing can be done to either sold lists or a current customer
database. Broadly, the term is usually used to refer to sending email messages with the
purpose of enhancing the relationship of a merchant with its current or previous
customers, to encourage customer loyalty and repeat business, acquiring new customers
or convincing current customers to purchase something immediately, and
adding advertisements to email messages sent by other companies to their customers.

Social Media Marketing is the process of gaining website traffic or attention
through social media sites. Social media marketing programs usually center on efforts to
create content that attracts attention and encourages readers to share it across their social
networks.

Pay per click (PPC), also called cost per click, is an internet advertising model used to
direct traffic to websites, in which advertisers pay the publisher (typically a website
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owner or a host of website) when the ad is clicked. It is defined simply as “the amount
spent to get an advertisement clicked.”[1]
Article marketing is a type of advertising in which businesses write short articles about
themselves, their company or their field of expertise as a marketing strategy. A primary
style for the articles includes a bio box and byline (collectively known as the resource
box) about the business. Internet article marketing is used to promote the authors
expertise of their market, products or services online via article directories. Article
directories with good web page ranks receive a lot of site visitors and may be considered
authority sites by search engines, leading to high traffic.
Video marketing is the practice of creating a promotional video for a product or service
and uploading it to the Internet. Video marketers rely less on words and more on
creating a "buzz" around their product that will prompt viewers to act in a certain way.
Marketing in this manner can be a cost-effective method of advertising because many
websites allow businesses to upload their videos free of charge.
Affiliate marketing is a type of performance-based marketing in which a business
rewards one or more affiliates for each visitor or customer brought by the affiliate's own
marketing efforts. The industry has four core players: the merchant (also known as
'retailer' or 'brand'), the network (that contains offers for the affiliate to choose from and
also takes care of the payments), the publisher (also known as 'the affiliate'), and the
customer.
Four ways to Conduct Online Marketing
Creating an Electronic Storefront
Companies can buy space on a commercial online service or it can open its own Web
site. These sites are designed to engage consumers in an interaction that will move them
closer to a purchase or other marketing outcome.
Placing Ads Online
Companies can place online ads in three ways:
1.
Classified ads in special sections of major commercial online services.
2.
Ads in certain internet newsgroups set up for commercial purposes.
3.
Buy online ads that pop up while people are surfing the web. Such ads include banner
ads, popup windows, “tickers” and “roadblocks”
Participating in Internet Forums, Newsgroups, or Web Communities
Companies may participate in or sponsor internet forums, news groups, and bulletin
boards that appeal to specific special interest groups.
Use Online E-Mail or Web Casting
Companies can send out customer newsletters, special product or promotion offers based
on customer buying histories. Web-casting or “push” programming delivers information of
interest to consumers’ desktops.
Online Marketing Strategies
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Strategies have to be formulated in order to have a successful presence on the web.
Developing a successful internet marketing strategy is an essential part of online marketing
success. In order to succeed, develop and implement a strategic plan that includes all of the
following:

Develop a Great Product

Develop a Web Site to sell

Develop a killer marketing strategy
Each step plays an important role in the overall strategy and must be developed to its
fullest potential. If even one step fails, the chances of success will be minimal.
Develop A Great Product
Try to develop a product which can be delivered to customers over Internet. The key to
developing a great product is exclusiveness. The product should be unique and not be in
competition with- of other similar products. Try to give potential customers exactly what they
want. Develop a high-quality product that fills a void to increase the chances of success.
Develop a product with large geographic target and a wide appeal. A great product will fulfill
a need or desire and provide instant gratification. The product should not only deliver the
quality, but should over deliver by living more importance to customer’s satisfaction.
Develop A Website To Sell
After developing a great product, the next step will be developing a web site. The web
site must be specifically designed to sell the product. Everything within the web site should
have one purpose getting the visitor to take action. Words are the most powerful marketing
tools. The right words will turn the visitors into customers. Every word, sentence and headline
should lead the potential customer to order page. Write web site copy as the management is
talking to just one person. Identify a problem and validate that one visitor’s need for a
solution. Continue to write and explain why the product is the solution of their problem. Tell
them exactly what the product will do or them. Why it will solve their problems and how.
Pack with more benefits and persuade the customers.
Develop A Killer Marketing Strategy
Online Marketing Strategy is the final process of strategic plan. The plan must include
both short-term and long-term strategies in order to succeed.
Short Term Marketing Strategies include:

Participating in Forums

Search Engines

Classifieds
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Social Book Marking Sites

Giving Away Freebies
Long Term Marketing Strategies include:

Have a Blog / Website

Online Advertising

Directory Listings

Participating in Social Media

Online Networking / Social Networking Sites
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Email Marketing
Have a Blog / Website: The first step to successful marketing online is to have a home
base on the Web. It doesn’t really matter whether it is an official website or a blog or a
combination of both. Either will give a Web address where people can find and a
convenient way of referring, two things that will facilitate marketing online efforts.
Business people should have a blog on their website or serving as a website because if
the management blog regularly and have something relevant to say, that will develop a
following and some of those people will help marketing online efforts by spreading the
work about the organization and its products or services.
Online Advertising: There are two cost models, CPM and CPC. CPM stands for Cost
per Thousand Impressions. With this type of online marketing, basically buy space on a
web page and pay for a certain number of impressions, or the number of times the ad is
going to be displayed. CPC stands for Cost-Per-Click advertising. In this model, pay
only for the number of times a viewer clicks on the ad, not on the number of times it’s
displayed. Google Ad Words is perhaps the best known Pay-per-click marketing online
program. Types of ads used predominantly include banner ads, link ads, in-text ads,
video ads, image ads, fixed banners.
Directory Listings: Adding business to appropriate directory listings (local directory
listings, business directories, etc,) is another way of marketing online that takes little
time and is relatively inexpensive. There are also a lot of specialized online networking
groups/sites that promote marketing online.
Participating in Social Media: Joining the conversation on Twitter, Face book and
forums, posting on Flicker and YouTube, commenting on other people’s blogs, are all
opportunities for marketing online. Marketing online through social media requires a
much more subtle technique than marketing online through advertising or directory
listings. With all social media, the trick is to participate intelligently and actual attempt
to converse rather than just advertising your produce or services.
Online Networking: It’s a powerful tool for marketing online giving the opportunity to
connect with potential customer partners and colleagues. Besides being a great source of
support and information, groups also provide some online marketing opportunities.
Other members may be potential customers or referral sources as they get to know about
the company.
Email Marketing: Email marketing is one of the best and most powerful ways of
marketing online. Once an email --- has been developed, marketing message can be sent
directly to people who have already indicated some interest in products or services.
Email is an excellent tool for building a relationship with customer letting the
organizations build both repeat business and good word-of -mouth through marketing
online efforts.
Benefits of Online Marketing
Online Marketing provides various benefits to both consumers and also the marketers by
way of marketing more efficiently and effectively along with greater savings.
Benefits to Consumers
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Convenience: Customers can shop 24 hours a day from anywhere without going to the
store physically.
Interactive and Immediate: Consumers can interact with the seller’s site to find the
information, products, or services they desire, then order or download them on the spot.
Tracking the purchase
Consumers have to pay for their product /service before they receive it. It is important
that consumers feel reassured when this happens. The websites allow consumers to track
their purchase from order, dispatch to transportation before delivery to their home
address. Again this reassures the consumer and makes them feel that they are obtaining a
good service online.
Convenient comparison of products and services
One of the greatest advantages for the customer is that they can compare products or
services they wish to purchase from the comfort of their own homes. Instead of visiting a
number of different retail outlets, the user simply has to open different window tabs to
compare prices or features of the product/service they wish to purchase. Many retailing
websites offer the facility where different products they sell can now be easily
compared. There is also price comparison websites that customers can use to get the best
possible price for their products.
Cheaper and More Flexible
If the customers do their shopping online from this they save the travel cost and less
time; if we go to the shopping we have to look around for the product we want to buy
but online it’s just one click of a button.
Benefits to Marketers
1.
Customer Relationship Building: Companies can interact with customers to learn
more about their needs and to build customer databases.
2.
Reduce Costs and Increase Efficiency: It avoids the expense of maintaining a physical
store, costs of rent, insurance, and utilities. Digital catalogs cost less to produce than
printing and mailing paper catalogs.
3.
Greater Flexibility: Unlike offline marketing online marketing strategies can be
adjusted daily or even hourly, adapting product availability, prices, and promotions to
match changing market conditions by changing a graphic or wording and do it without
any problems.
4.
Access to Global Markets: The Internet is a global medium, which allows buyers and
sellers to click from one country to another in seconds.
5.
Track Real - Time Results: It allows tracking real-time results using online analytics to
determine how marketing campaign is performing.
6.
Target Specific Demographics in Advertising: It allows in targeting specific
demographics such as gender, age, location, specific income levels, education levels and
occupation.
7.
Instant Conversion Ability: Through online marketing marketers can get the ability to
convert a customer instantaneously. Through online marketing not only potential
customer’s information can be captured, but also capture a sale instantaneously by a few
clicks of a mouse.
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Measure Results: If offers companies unprecedented results tracking and customer
behaviour measurements, easy analysis of results and cross checking ensure the money
that is spent provides benefits.
Success of Online Marketing
Internet had changed the way in which purchase of books, tickets and shopping is being
done by the customers. One needs to go no further than look at examples like Amazon and E
bay. In India, IRCTC, the online ticketing arm of the Indian railways, is the first example that
immediately comes to mind. But then there are rising companies like make my trip,
travelguru, flipkart, rediff to just name a few. Other areas where it has changed the outlook of
businesses are jobs (example: monster, naukri), real estate (example: indiaproperty, 99 acres,
magic bricks), cinema theatres (example: book my show), stock market (example: money
control). The success tasted by these companies show the potential and the way forward for
the other companies to emulate.
Prevailing Trends in on Line Marketing
These trends have moved through the hype cycle and are very relevant and impactful for
marketers:
Social marketing: Marketers should focus on new uses for idea management, market
research, social media engagement, social analytics, and social campaigns.
Advocacy/loyalty marketing. Brand can focus on turning their best customers into advocates
by giving them the tools and the ability to become their salespeople.
5.
Underlying digital marketing trends
Lead management. B2B marketers are now investing in B2C technologies to maximize
data mining, customer segmentation, behavioral analytics, multichannel campaigns, and real
time marketing. Email marketing. No, email isn’t dead. It’s still valuable since more email
marketing is being consumed on the go, through multiple devices and is still extremely
measurable.
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Top online marketing channels in 2015
New Emerging Trends
Real-time marketing: This moves in customer time as consumers create links to each
other and to brands.

Quantified self: This includes IoT, wearable computing and is estimated to be a $5B
market in less than 2 years.

Digital marketing hubs: These hubs assemble all the data together to be used
across the organization and in real-time.

Multichannel attribution: This set of techniques link specific actions marketers
take to consumer actions.

Content marketing : Marketers need to build a content marketing supply chain and
determine how to create, curate and cultivate content.

Responsive design : This is especially important across mobile and after Google’s new
mobile friendly search policy.

Video Streaming: One of the most dramatic changes that the Internet has fostered is
video streaming. Now more consumers watch online video and less cable TV than ever
before. There is a huge market for online videos that businesses can fill with their own
content.

Mobile payment and mobile coupons: Besides being communication devices, gaming
platforms, and cameras, mobile phones are now being used as tools for payments and
coupons. It’s more than a gimmick: Consumers like to use mobile payments.

Video ads will start dominating: Video ads are certainly nothing new, with social
channels like YouTube dedicated to hosting billions of videos and advertising platforms
like Facebook and Bing already offering advertisers video options. Google is finally
getting on board with in-SERP video advertising. It’s a sign that users are becoming
more accepting of video ads online, and as that trend continues, expect to see more types

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of video ads popping up in more unexpected places. With Google’s ownership of
YouTube, the possibilities are virtually limitless.
App indexing will lead to an explosion of apps: Google has offered app indexing for a
while, but as the ranking possibilities for apps become more complex, more business
owners realize the online visibility advantages of a dedicated app. A mobile-optimized
site works wonders for appealing to the mobile crowd, but soon, apps will begin to
replace them. Apps can do everything that websites can, except in more intuitive,
convenient, accessible ways. We’re still several years away from apps completely
replacing websites as a medium.
Mobile will dominate desktop: Year2015 was a big year for mobile—not only did
Google announce that mobile traffic finally overtook desktop traffic in 10 different
countries, it was also the year they released the “Mobilegeddon” algorithm update to
phase out sites not optimized for mobile. But apparently, you don’t have to have an
optimized desktop site in addition to a mobile version—according to Google, a mobileonly site with no desktop counterpart is perfectly acceptable. This alone won’t be
enough to drive down desktop traffic, but it’s clear what side of the fence Google’s on;
they’re banking on desktop traffic fading away, meaning the smart money rests on
mobile-focused online marketing.
Digital assistants will lead to a new kind of optimization: Search engine optimization
(SEO) and pay-per-click (PPC) advertising are two highly popular strategies for getting
your site seen by thousands of previously unknown visitors. But the rise of digital
assistants is going to lead to a new kind of optimization. Digital assistants like Siri and
Cortana do utilize traditional search engines, but only when necessary to find
information. The key to optimizing in this new format is to make sure your business
information is easily accessible to these assistants, rather than trying to funnel people to
your site specifically.
Virtual reality will emerge: There are dozens of different virtual reality devices set to
release in the next few years, some of which are dedicated for specific applications like
video games, and others which are available for general use. Oculus Rift, arguably the
most hyped VR device, is set to release in the first quarter of 2016. Oculus Rift and other
VR devices will introduce an entire new medium of online advertising, with integration
to popular social media platforms, video channels, and even forms of direct messaging.
There’s always a chance VR could fizzle as a temporary fad, but there are billions of
dollars of funding in limbo, ready to bet otherwise.
Wearable technology and the Internet of Things (IoT) will pave new ground: While
not quite to the level of virtual reality, wearable “smart” devices should start gaining
more traction. 2015 saw the unveiling of the Apple Watch, a first-generation smart
watch, but more smart watches and similar wearable devices should start emerging next
year. Such devices will change the landscape of local marketing, and will do more
to blur the lines between “online” marketing and “real” marketing.
Advertising will become more expensive: Competition in the online marketing world
has increased dramatically over the course of the past few years. All those new online
marketing competitors will drive the prices for online advertising even higher.
Realistically, online ads are pretty cheap, but the increases in price may drive some
smaller companies out of the landscape.
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There’s no guarantee exactly when or how these trends will manifest, as much of that is
driven by consumer adoption, but it’s worth hedging your bets in at least a few of these tent
pole technologies and strategies.
Conclusion
In the digital marketplace, content and its presentation are the most important factors
that decide the fate of any online business. Easily accessibility and quality content can
catapult the website within the top rankings. By creating and implementing a balanced
marketing strategy, using both short-term and long-term strategies, one can drive a steady
stream of targeted traffic to their web site. This simple strategy of any business can guarantee
the success of online marketing. Companies would however have to be on the lookout for
changing trends in the marketplace and use it to their advantage. Marketing through mobile
and its apps is a concept which has gained relevance today. But, would Desktop search
continue to be the leader in future or not is not known. Whether a company continues to use
desktop or not depends upon the future acceptance of . So, companies would forever have to
change their marketing ploys according to the emerging trend.
REFERENCES
[1]
Philip Kotler and Gray Armstrong “Principles of marketing”, 13th Edition Prentice
Hall,
[2]
http://www.inc.com/guides/biz_online/online-marketresearch.html.
[3]
http://www.linkedstrategies.com/about-linkedin/
[4]
http://sbinfocanada.about.com/od/onlinebusiness/a/marketi ngonline.htm.
[5]
www.forbes.com
[6]
www.google.com
[7]
www.boostthenews.com
[8]
www.wikipedia.com
[9]
www.ictactjournals.in/IJMS_papers
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A comparative study of Analysis & Impact of E-Banking Services on
Customer Satisfaction of Public and Private Banks with Special Reference
to Pune Region
Prof.Sachin Misal
Assistant Professor
Sinhgad IMCA,Narhe,
Pune, India
Prof. Sunil Joshi
Assistant Professor
Sinhgad IMCA,Narhe,
Pune, India
Prof. Shivaji Mundhe
Professor & Director
Sinhgad IMCA,
Narhe,Pune , India
ABSTRACT:
Information Technology has become a necessary tool in today’s organizations.
Banks today operate in a highly globalized, liberalized, privatized and a competitive
environment. In order to survive in this environment banks have to use Information
Technology. Information Technology has introduced new business paradigm. It is
increasingly playing a significant role in improving the services in the banking industry.
Indian banking industry has witnessed a tremendous developments due to sweeping
changes that are taking place in the information technology. Electronic banking has
emerged from such an innovative development. Modern technology is seen as a solution
for most of the problems that the banking sector faces today. Even at present, India is a
relative unbanked country as the credit-to-GDP ratio is one of the lowest in the
developing economies. So banks are facing the dual challenge of increasing penetration
and high growth trajectory. The banking industry can kill two birds with one stone that
is with help of technology. Tremendous progress took place in the field of technology
which has reduced the world to a global village and it has brought remarkable changes
in the banking industry. Branch banking in the brick and mortar mode has been
transformed into click and order channel mode.
Keyword: e-banking,information technology, ECS,telephone bamking,credit casd
1.
Introduction
Banks play a very important role in the Indian financial market as they are the biggest
source of credit and attract most of the savings from the population. Banking is necessary for
the economic development of all the nations of the world Because a developed banking system
holds the key as well as serves as a barometer for the economic health of a country. Banking
Industry is one of the most successful and strong industry of our country. During the last few
decades, an information technology plays a vital role in the banking sector to provided
different products and services to their customers. The arrival of Information technology made
the banks to change the nature of financial services offered to its customers. Due to incredible
propagation of Information and communication technology the concept of money has been
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radically changed. Different kinds of business sectors have been merged in a single that can be
accessible in a global. So the business takes a new name Electronic business or E-business,
which has dispelled the geographical bar among countries. Information Technology and
Communication has influenced every sectors of business.
E-banking is the term that signifies and encompasses the entire sphere of technology
initiatives that have taken place in the banking industry. E-banking is a generic term making
use of electronic channels through telephone, mobile phones, internet etc. for delivery of
banking services and products. The concept and scope of e-banking is still in the transitional
stage. E-banking has broken the barriers of branch banking. E-banking as early as 1997 under
the brand name infinity. E-banking is a genetic term encompassing internet banking, telephone
banking, and mobile banking. In other words, it is a process of delivery of e-banking services
and products through electronic channels such as telephone, internet, and cell phone. Ebanking is an umbrella term for the process by which a customer may perform banking
transactions electronically without visiting a bank. Delivery of bank’s services to a customer at
his office or ome by using electronic technology is called E-banking.” The quality, range and
price of these electronic services decide a bank’s competitive position in the industry. Ebanking is defined as “the automated delivery of new and traditional banking products and
services directly to customers through electronic, interactive communication channels.” Ebanking is a convenient and secure way to access customer account 24 hours a day, 7 days a
week, through the Internet.
2.
Statement of the Problem
Due to globalization business operations are changed the life of human being into the
machines. Pune having more number education institute, automobile industry, manufacturing
companies & information Technology hub. So that pune having well educated professional &
business people carry out their operation online. The uses of new gadgets, smart phones,
laptop, and internet for day to day operations are increased. Availability of less time
Consumers’ behavior is changing day by day & the expectation are changed in banking.
Mobility, independence of time and place, and flexibility has become key words for customer
satisfaction. The features of E-banking includes24 hours and 7 days availability, immediate
access, and the absence of physical borders. The internet has been one of the key drivers in
promoting E-banking in the banking sector.
There is huge competition among the public & private banks to attract customers. The
more number of customers is key to survive in the global competition. Banks are using
information technology for their day to day operations & to provide customer oriented banking
services to satisfy the customer by giving best service within time. So there is need to analyze
the impact of e-banking on customer satisfaction. Therefore the researcher attempted
“Analysis and Impact of e-banking services on customer satisfaction of public and private
banks with special reference to Pune region.”
3.
Need of the study
The growth of e-banking with the increase in the range of interface options available to
access online , banking solution has resulted in a steady increase in the number of customers
interacting through remote channels, to a greater extent than before. In a climate of increasing
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online competition banks that have chosen to retain extensive branch networks are re-aligning
the roles of staff in these branches and moving towards a relationship driven sales culture.
Pune is an educational & smart city where maximum number of professionals and
business people carry the commercial activities through online banks. To know how far the
customers of the banks are utilizing different e-banking services & are they satisfied with the
services of e-banking, therefore there is need to study the Impact of e-banking services on
customer satisfaction of public and private banks.
4.
1.
2.
3.
4.
5.
6.
Objectives of the study
To study the working pattern of Public and private e-banking system in Pune Region.
To understand and study the problems faced by the customers from the Public and
private sector banks.
To evaluate, analyze and compare the opinions and satisfaction level of customers about
the e-banking services provided by the Public and private banks.
To propose the relevant conceptual framework of E-banking.
To find out the problems of e-banking services and to recommend suggestions for
betterment of customers satisfaction in e-banking services
To suggest the remedial measures to improve the e-banking services.
5.
Statement of hypothesis
H0: The public and private banks customers have similar satisfaction with e-banking
practices.
H1: The public and private banks customer don’t have similar satisfaction with e-banking
practices
H0: There is no significant relationship between service quality dimensions and overall
customer satisfaction in e- banking.
H1: There is significant relationship between service quality dimensions and overall
customer satisfaction in e- banking in public and private banks
6.
Scope of the study
Public and private banks and the qualities of the e-banking services in the area of
reliability, responsiveness, security, easy use, accessibility and efficiency. Also the research
analyses the problems faced by the customers while using the e-banking services. The research
evaluates the relationship between the activities undertaken through e-banking services by the
customers, the qualities of e-banking services and the problems of e-banking services.
The geographical scope of the study is limited to pune region because the researcher is
working affiliated institute of SPPU. The scope of research based on customer satisfaction
regarding the e-banking services of public and private banks in pune region. The research
discusses the opinion of the customers regarding the e-banking services provided by the
Universe & sample size:
For the present study Population & sample size as follows.
Population (N): Following table gives information about public & private banks in
Pune.
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S.NO
Bank Name
( Public)
No Of
Branches
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S.
No
1
Bank Name( Private)
AXIS Bank Ltd.
No Of
Branches
31
2
Citi Union Bank Ltd.
01
1
Allahabad Bank
07
2
Andhra Bank
08
3
Bank of Baroda
71
3
DCB Bank Limited
01
4
Bank of India
138
4
Dhanlaxmi Bank Ltd
01
5
Bank of Maharashtra
202
5
ICICI Bank Ltd
75
6
Canara Bank
61
6
IndusInd Bank Ltd.
10
7
Central Bank of
India
75
7
ING Vysya Bank Ltd.
05
8
Corporation Bank
34
8
Karnataka Bank Ltd.
04
9
Dena Bank
29
9
Indian Bank
17
11
Indian Overseas
Bank
08
Kotak Mahindra Bank
Ltd.
RBL Bank.
14
10
12
Oriental Bank of
Commerce
24
11
The Catholic Syrian
Bank Ltd.
02
13
Punjab National
Bank
26
12
The Federal Bank Ltd.
17
14
Punjab & Sind Bank
05
13
The HDFC Bank Ltd.
141
15
Syndicate Bank
27
14
01
16
Union Bank of India
74
The Jammu &
Kashmir Bank Ltd.
17
United Bank of India
05
15
02
18
UCO Bank
26
19
Vijaya Bank
19
20
IDBI Bank Ltd
85
21
Bharatiya Mahila
Bank
01
22
State Bank of India
159
The Karur Vysya
Bank Ltd.
The Lakshmi Vilas
Bank Ltd.
The south Indian Bank
Ltd.
Yes Bank Ltd.
23
State Bank of
Bikaner & Jaipur
04
Tamilnadu mercantile
bank Ltd
02
24
State Bank of Patiala
03
25
State Bank of
Hyderabad
10
26
State Bank of
Mysore
04
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19
09
01
09
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State Bank of
Travancore
03
28
Post Bank of India
14
Type of bank
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Total Number of
Banks
Total Number of
Branches
Total Number of
manager
28
19
47
1139
363
1499
1139
363
1499
Public Bank
Private banks
Total
Sample size (n):
Type of bank
Public Bank
Private banks
Total
Number of
Banks (n)
28
19
47
Total
Number of
Branches(n)
89
76
165
Manager(n)
89
76
165
Customer(n)
193
193
386
1.
Sources of data collection
1.
Primary data:
The primary data is collected through formal and informal discussion with managers and
customers of the banks, structured and unstructured interviews, Telephonic interview,
observation; Web based questionnaires, Schedule method. The structured questionnaire
has been prepared for collecting opinion from E-banking service users.Questionnaire has
been distributed among the account holder of public & private banks and then collected
filled -questionnaire from them, for study purpose.
2.
Secondary data:
Secondary data has been collected from annual reports of banks and Reserve Bank of
India, internet, books, published articles, E-banking business journals.
7.
Knowledge contribution likely outcomes
The knowledge outcome from the study will beneficial to Banker, Customer, and
Society, Government which described in detail.
Bankers
The study is aimed to ascertain the attitude and satisfaction of the bank customer
towards its e-banking products and facilities. This will bring out several critical factors
essential for enhanced quality in customer service which is pre-requisite for the bank’s
business growth
Customer Satisfaction
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The banks need to aim at higher customer delight which remains the key factor for
sustained business growth with higher profitability. The study will focus on various key
factors contributing towards customer satisfaction and dissatisfaction. Analysis of the same
with final findings /suggestions would definitely help the bankers to improve upon the
deficient areas observed in the study.
Customer retention / loyalty
Barring exceptions or compulsions, every customer would like to have best services,
failing which he/she may switch over to another bank providing comparatively better services.
Sustaining the competition
With the increased competition, the customers are becoming more demanding. To meet
the customer’s needs and demands, the findings of this study will become handy to the bank
management.
Growth of banking sector / industry
With satisfied customer, leading to optimum business growth & better profitability, the
fundamentals of Indian banking would further get strengthened.
Customers
Direct benefits to the customers
After implementation of the suggestions which will be provided in the study, the
customers will be benefited the most, as the Bank management is expected to take required
steps to improve the customer service.
Customer satisfaction
The focal point of the study is to understand the satisfaction level of the customers. The
whole study is customer centric by identifying their attitude, psyche, taste, preferences, needs,
demands & apprehensions if any, and to provide remedial measures, which contribute towards
customer satisfaction. Thus, the major benefit accrues to the customers alone and is the
primary beneficiary of the study.
Security / safety leading to loyalty and confidence
E - Banking products & services are being extended on electronic platform including
internet. Even though every bank has its own safety measures to safeguard the interest of its
customers from potential threats arising out of online intruders, still many instances have come
to the light where the safety measures have failed to protect the customer’s / bankers’ interests.
Due to the apprehension of potential threats to their account, many customers prefer not to
have much on-line transactions through internet facilities. Once the identify appropriate safety
measures and informing the same to them, they will feel more secured and their loyalty
towards their bank will increase.
Saving time
The study will identify the areas where the latest technology can be adopted by the
banks to improve upon the existing facilities. This will not only save time but also money and
energy.
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More convenience
It will be much more convenient and faster. Banking transaction can be done easily from
your home/office. Customer will be benefitted by e-banking products / services, provided they
make effective use of the services /facilities extended for their convenience.
Customized products
The study will bring out the customer expectation and will reveal the deficiencies, if any
in the existing system.
Society
With better customer service after implementing suggestion, the social impact will be
positive towards higher economic growth & better standard of living. The broader aim and
objective of a research proposal is to ensure that the outcome should be beneficial to the
society. The current study would identify the problem areas and subsequently suggest
measures to overcome the same. The bankers after implementation of the suggestion would
derive immense benefits through customer happiness and improvement of their operational
efficiency etc.
Government
Banks remains the backbone of any economy; better customer satisfaction shall lead to
higher growth rate of business / economy. Better customer service, higher operational
efficiency would lead to higher rate of growth in banks business with higher operational
efficiency, profitability of the banks would improve, which will contribute a higher amount of
taxes to the government.
Similarly this will boost the economic growth and contribution to the government exchequer
through increased collection of direct and direct taxes.
8.
Bibliography/ Webliography
Books
1.
“Basic Financial Management”- M Y Khan ,P K Jain
2.
“Financial Management”-Prasanna Chandra
3.
Kothari C.R. –Research Methodology and Techniques, Second Edition, Wishwa
Prakashan.
4.
Gupta, V. E-Banking: Global Perspectives. IIM Publication.
Research papers
1.
Pallab Sikdar1, Munish Makkad2: “ INTERNET BANKING in INDIA – A
PERSPECTIVE on BENEFITS and CHALLENGES INVOLVED”in International
Journal of Engineering, Business and Enterprise Applications, 5(1), June-August, 2013,
pp. 15-23
2.
DR. ROSHAN LAL*;DR. RAJNI SALUJA:”
E-BANKING: THE INDIAN
SCENARIO”in Asia Pacific Journal of Marketing & Management ReviewISSN 23192836 Vol.1 (4), December (2012) Online available at indianresearchjournals.com pp.1623
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4.
5.
6.
7.
8.
9.
10.
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Uppal R K, “E-Age Technology- New Face of Indian Banking Industry: Emerging
Challenges and New Potentials”, Journal of Social and Development Sciences, Vol. 1,
No. 3, April 2011, pp. 115-129.
Bhasin Niti, “Banking Development in India 1947 to 2007: Growth, Reforms &
Outlook”, New Century Publications, New Delhi, 2006, pp. 185-189.
Krishnamoorthy, V. and R. Srinivasan (2013), Internet Banking as a tool for Customer
Relationship Management – A Study on Customer Perspective, Indian Journal of
Research, Volume 2, Issue 2, pp 187-190
Dixit, N. and S. K. Datta (2010), Acceptance of E-Banking among Adult Customers: An
Empirical Investigation in India, Journal of Internet Banking and Commerce, Volume
15, No. 2, pp 2
Akram Jalal , Evaluating the Impacts of Online Banking Factors on Motivating th
Process of E-banking Sustainability Vol. 1, No. 1; September 2011 ISSN 1925-4725 EISSN 1925-4733,pp 32www.ccsenet.org/jms Journal of Management and
Yap, K., D. Wong, C. Loh, and R. Bak (2010). Offline and online banking - where to
draw the line when building trust in e-banking. International Journal of Bank Marketing
28(1), 27-46., http://dx.doi.org
Dr. Priya Anand Irabatti,” Customer Satisfaction of Online Banking in SBI and ICICI-A
Comparative Study in Pune City”in International Journal of Techno-Management
Research, Vol. 01, Issue 01, June 2013 ISSN: 2321-3744,pp11-15
Liu, C. & Arnett,K. P. (2000). Exploring the Factors Associated with Website success in
the context of Electronic Commerce. Informatin and Management 38(1), pp. 23-34.
Website Visited
1.
https://www.rbi.org.in/
2.
www.statebank.com
3.
www.icicibank.com
4.
www.hdfc.com
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Online Retailing in India: A Retrospect
Ishita S. Patil
Dr. Sushama S Patil
Associate Professor at Ramanand Arya Student of ASM’s IIBR
Pimpri, Pune, India
D.A.V. College,
Bhandup, Mumbai and Research guide at
North Maharashtra University,
Jalgaon, India
sushmapatil2610@gmail.com
ABSTRACT:
Retailing is a critical function in the economy which helps to meet the gap between
the consumers and the rest of the supply chain. Online retail is one of the crucial parts
of retailing in India and is growing at phenomenal rate since last few years.
Internet retailing saw the fastest growth in retailing in 2014. Demand was entirely
generated by urban consumers, who had access to the internet and computers. As the
penetration of computers was still low in India, 2014 witnessed the growth of another
channel, namely mobile internet retailing. Volume sales of smartphones registered
growth of 69% in volume terms during 2008-2013.
India as an emerging economy although growing, still has several challenges on
economic, technological, social and cultural front. These challenges do have a bearing
on the functioning of business and their success patterns. This paper intends to take a
stock of the state of the online retail sector in India, its growth drivers and restrainers
which are inherent to the nature of the business as well as contextual and seeks to
understand which factors are more relevant and critical to the growth of the sector in
the country.
Keywords: Vibrant, Online Retail, Growth drivers, Restrainers.
Introduction:
India is emerging as one of the fastest growing economy, and the entire world is looking
forward to explore the Indian market. The key reasons driving impressive growth story
forward are Increase in disposable income, demographic dividend, growing consumerism,
fundamentally strong banking system and aspiring rural markets. Technology diffusion,
Innovations and Huge FDI are playing the role of catalyst in the process of growth across the
sectors. With solid economic fundamentals and growth of information technology, $520 Bn
Indian retailing industry is emerged as one of the fastest growing sector.
INCON - XI 2016
207
ASM
A
M’s Inteern
nattion
nal E-J
E ou
urn
nal on
n
O going
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g Res
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arch
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i Ma
Mana
ageem
men
nt & IT
I
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SN – 232
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065
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R tailling
Ret
g is
i one
o e of
o the most
m t dyn
d nam
mic in
ndu
ustrriess an
nd witn
w nesssin
ng sea
s a of cha
c ang
ges in
n sincee
laast deecade. The
T e peeneetraatio
on off in
nterneet acr
a ross Ind
I dia haas imp
i paccteed eve
e ery
y asspeect off liife,, frrom
m
co
om
mmu
uniicaatio
on to co
onsu
um
mpttion
n, ent
e terttain
nm
men
nt to
t bus
b sin
nesss. Ind
I dia raank
ks 3rd
3 d in
n th
he nu
umb
berr of
o
in
nterrneet use
u ers in th
he wo
world
d with
w h 240
2 0 Mn
M usserss and
a d grrow
win
ng at ph
hen
nom
men
nall raate.. With
W h suc
s ch a
hu
ugee in
nteernet useerss, In
ndiian
n on
nline reetailin
ng has
h s reeally tak
ken
n off and
d has
h s reeached
d to
t $ 2.3
2 Bn
n in
n
ju
ust few yearss an
nd is grrow
win
ng at
a pheno
om
men
nal rate ho
oweeveer it
i still
s l very
v y sma
s all as co
om
mpaared
d to
o
In
ndiia reta
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g mar
m rkeet of
o $ 520
5 0 Bn.
B . Also
A o wh
when co
om
mpaared
d to oth
o her deeveelop
ped
d and
a d eme
e erg
ging
g
eccon
nom
miees the
t e siize off In
ndiaan on
nlin
ne reta
r ailiing
g iss veery
y minu
m usccule.
O jecttiv
Obj
ves off th
he Stu
S udy
y:
T e obje
The
o ecttivees of
o the
t e sttud
dy:

T tak
To
ke a rev
r iew
w of
o onl
o linee reetaailin
ng ind
dusstry
y in
n India.

T an
To
naly
yzee th
he fac
f ctorrs imp
i pacctin
ng thee grow
g wth
h of
o Ind
I dian
n onli
o inee reetaiilin
ng ind
i dustry
y.
H torrica
Hist
al Per
P rsp
pecctiv
ve of On
nline Reeta
ailiing
g:
R taillerss acro
Ret
a osss th
he wo
world
d hav
h e reco
r ogn
nizzed
d th
hat thee in
nteern
net is tra
t ansfforrmiing
g th
he wa
way tha
t at
cu
usttom
merrs sho
s op, ree-sh
hap
ping
g the
t hiigh
h sttreeet as
a a res
r ultt. Man
M ny off uss now
n w sho
s op fro
f om ou
ur hom
h mes
an
nd on
n th
he mov
m ve unr
u resstricteed by
y sttorre ope
o eniing
g tiimees. Only
O y 20
2 yeearss ago
a o mos
m st of
o uss were
w e
ob
bliv
vio
ouss to
o th
he ex
xistten
ncee off th
he in
nterrneet as
a a pla
p ace to
o sh
hop
p. Teesco
o and
a d Asd
A da daabbled
d with
w h
ho
om
me sho
opp
pin
ng ser
s rviccess viia the
t e co
om
mpu
uterr in
n th
he mid--19
980
0s, bu
ut itt was
w s no
ot unt
u til thee in
nveenttion
n
off th
he Wor
W rld Wide
W e We
Web by
b Tiim
m Bern
nerrs-L
Leee th
hatt wid
w desp
preead
d co
onsum
meer use
u e of th
he In
nterrneet
beecaam
me a po
osssibiilitty.
T e In
The
ndiian
n Onl
O linee Ret
R taill Sttorry:
I a waay,, e-C
In
e Com
mm
merce in
n Ind
I dia was
w kick
k k-starrted
d in
i 20
004
4 wh
when eBa
e ay staarteed itts
op
perratiion
ns in
i Ind
I dia by
y acqu
a uirring
g Avn
A nish Baj
B jaj’’s Ba
Baazeee.com, whic
w ch waas Ind
I dia’s lar
l rgesst onl
o linee
au
ucttion
n port
p tal. This
T s was
w s fo
ollo
ow
wed by
y tw
wo
o IIT-D
Deelhii an
nd ex
x-A
Amaazo
on em
mplloy
yees Sac
S chin
n Ban
B nsaal
an
nd Biinn
ny Ba
Bansaal sta
s artin
ng Fllipk
karrt in 200
2 07 by
y in
nveestiing
g 2 lak
kh rupeees each ass an
n onli
o inee bo
ook
k
reetaiilerr. In
I thee sam
s me yeear,, Muk
M kessh Baansal, Ashu
A uto
osh
h Law
L wan
nia an
nd Viineeet Saaxeenaa sttartted
d an
n
on
nlin
ne po
ortaal to
t cus
c stom
mize go
ood
diess calleed Myn
M ntraa. The
T esee piion
neerrin
ng com
c mp
paniess haad to un
ndeergo
o
m ny a hur
man
h dlee an
nd pivot cou
untllesss tiimees to arrrive at
a the
t op
ptim
maal mod
m dell fo
or rea
r aching
g out
o to thee
In
ndiian mark
m kett, with
w h itts own
o n uniq
u quee user
u r beh
b haviiorr. Wit
W th per
p rsev
verran
ncee, th
hesse eco
e ommeerce por
p rtals
sttartted
d win
w nin
ng the trus
t st and con
c nfid
den
ncee of
o Ind
I dian pop
p pullatiion
n and
a d peeop
plee grad
g duaally
y star
s rted
d
IN
NC
CON - XI
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shopping online. But the game changer that provided the much needed growth steroid was
Cash on Delivery, which made online shopping very accessible in a country like India where
the credit and debit card penetration is extremely low. This unique payment collection model
even gave birth to startups like Gharpay. In 2010, Snapdeal an online platform started
providing daily deals but pivoted into an e-commerce company via the marketplace model.
Snapdeal is one of the first online marketplaces in India. Internet penetration in India has been
increasing exponentially – in 2006 there were only 21 million active internet users, which rose
to 243 million users by June 2014 and is expected to cross 300 Mn by January 2015.
Simultaneously, the number of active mobile internet users grew to 185 million. The
significant rise not only brought heavy data usage in the form of social networking, but it also
gave a thrust to the e-commerce in India. India’s ecommerce market is estimated to have
reached about $10-16 billion last year, with an annual increase of 88% and analysts project
that by 2020 it could be worth a whopping $60-80 billion.
The major players in the Indian online retailing are very upbeat and are ready to scale
the operation to push the boundaries and these efforts are being made to pull in more and more
investment to move fast to acquired the major share and build the necessary capabilities for the
sustainable growth, If we look at the investment activities in year 2014. All the major players
are successful in raising adequate funds to fulfill their long-term objectives.
History of Online Retailing in India:

1991: Introduction of E-Commerce
The year 1991 noted a new chapter in the history of the online world where e-commerce
became a hot choice amongst the commercial use of the internet. At that time nobody would
have even thought that the buying and selling online or say the online trading will become a
trend in the world and India will also share a good proportion of this success.

2002: IRCTC teaches India to Book ticket online
India first came into interaction with the online E-Commerce via the IRCTC. The
government of India experimented this online strategy to make it convenient for its public to
book the train tickets. Hence, the government came forward with the IRCTC Online Passenger
Reservation System, which for the first time encountered the online ticket booking from
anywhere at any time. This was a boon to the common man as now they don’t have to wait for
long in line, no issues for wastage of time during unavailability of the trains, no burden on the
ticket bookers and many more. The advancements in the technology as the years passed on
have been also seen in the IRCTC Online system as now one can book tickets (tatkal, normal,
etc.) on one go, easy payments, can check the status of the ticket and availability of the train as
well. This is a big achievement in the history of India in the field of online E-Commerce.

2004-2006: eBay acquired Baazee.com and entered the fledgling India market

2007: Flipkart and Myntra started
Though online shopping has been present since the 2000 but it gained popularity only
with deep discount model of Flipkart. In a way it re-launched online shopping in India. Soon
other portals like Amazon, Jabong, etc. started hunting India for their businesses.
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2010: Flipkart pioneered the Cash on Delivery (CoD) model, increasing e- commerce
reach dramatically Myntra expanded its catalogue to retail fashion and lifestyle products
Flipkart acquired WeRead. Snap Deal acquired Grabbon.com
2011: Flipkart acquired Mime360 (a digital platform company) Flipkart acquired
Chakpak.com (a Bollywood news site that offered updates, news, photos and videos)
2012: Flipkart acquired Letsbuy.com (that specialized in electronics) for an estimated
$25 million cash & stock transaction, rumoured to be facilitated by the common
investors Tiger Global and Accel Partners Flipkart launched Flyte Digital Music Store,
which was later shut down in 2013 due to lack of expected traction Fashion andyou
acquired Urban Touch for an estimated $30 million cash & stock transaction in a bid to
consolidate Indian Postal Service undertook a major IT project to modernize its
operations and be a referred partner for e-commerce players to reach the widest number
of PIN codes across India Rocket Internet backed Jabong started operations in 2012
Myntra acquired the Sher Singh private label created by Exclusively.in. SherSingh
specialized in sports inspired lifestyle apparel while Exclusively.in specialized in ethnic
wear Junglee was launched by Amazon.in as a price aggregator and comparison tool.
This marked Amazon’s low cost baby steps in the Indian market, especially at a time
when the FDI regulations were in a state of flux.
2013:Myntra acquired San Francisco based Fitiquette (virtual fitting room) in an
undisclosed cash & stock deal, to solve the online fit/size problem of fashion retailing
Myntra piloted a one hour delivery system in Delhi & Bangalore for delivery addresses
located within a 5 kilometer radius of their warehouse by process innovation and
reducing lag time Amazon, which does not provide Cash on Delivery facility in another
country across the world, started providing Cash on Delivery option in India to keep up
with the market norm Flipkart launched its own payment gateway to third party
customers under the brand name PayZippy Jabong launched its third party logistics firm
JaVAS and later sold it off to Gurgaon based QuickDel Logistics.
2014: Flipkart acquired Myntra for an undisclosed sum and shortly thereafter revealed
that they raised an additional $210 million led by DST Global. This was followed by
Flipkart raising another $1 billion at an enormous valuation of $7 billionFlipkart’s
logistics arm eKart was thrown open to third party retailers. Myntra launched their
private label Roadster with mega budget campaigns that were hitherto run only for
branded goods SnapDeal acquired Doozton, a product discovery platform that enabled
personalized way of listing and recommending merchandise Amazon tied up with BPCL
in Mumbai and Delhi & local grocery stores allowing customers to pick up their
packages from the retail chain In&Out run by BPCL at select filling stations, and quietly
expands to all categories that major retailers are present, and stocks 15 million products,
5 million more than Flipkart Amazon tied up with Narayana Murthy through his private
investment firm Catamaran Ventures, aiming to bring offline small sellers and SMBs
online and take advantage of the fast growing online customer base in India Amazon
announces plans to invest $2 billion in building out the Indian operations Snapdeal and
Flipkart expand their categories to incude adult toys, sexual wellness etc.
US-based Amazon commits $2 billion in India's e-commerce space. SoftBank invests
$627 million in Snapdeal, $210 millin in Ola cabs. Flipkart gets $1.7 billion in funding,
taking valuation to $7 billion. Reliance Group exits Yatra.com with 12-fold increase in
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original investment. Footfalls during festive season drop in shops in favour of ecommerce. Physical retail segment demands level field, regulations vis-a-vis e-retail.
2015:In July 2015, price comparison service website MySmartPrice raised $10 million
from Accel Partners and Helion Venture Partners. In September 2015, PepperTap raised
$36 million from Snapdeal and others.Hopscotch India focuses on bringing thousands of
brands to moms in India. They have raised USD 12.8 Million in 2 rounds from 7
investors, including Facebook Cofounder Eduardo Saverin, voylla online first digital
fashion jewellery, Jaipur-based fashion jewellery brand Voylla has raised $15 million
(About Rs 98 crore) in funding from private equity firm, Peepul Capital.
Factors Impacting Online Retail in India:
1.
Penetration of Internet Access
With 19.5 Million internet users in 2005, today we have more than 290 Million users in
2014, India ranked third after US and China in terms of Internet subscribers. Access to internet
is prerequisite to online retail. Basic infrastructure and large customer base has made it
affordable for large population. However, most of the internet users are concentrated in the
urban pockets, large population (to the tune of 60%) still don’t have access to seamless and
affordable internet connectivity owing to the large capital requirement to install the basic
infrastructure and road blocks. Rural India is emerging as one of the major market for all types
of goods and services. Going forward, access to internet across the length and breadth on India
will play huge role in penetration of online retail rural markets.
2.
Innovations & TechnologyAs per the classification of the goods by American economist Philip Nelson, goods are
classified as Search Goods and Experience Goods. Search goods like Pen, Paper books and
music CDs etc., does not need experience by customers and are easy to be sold via internet
where as in case of Experience goods like Cloths, Jewellery, Restaurant, customers would like
to have the first hand experience before purchase. In comparison with online retail brick
mortar model, it does offer better experience by offering trial/demonstration to the customer
before the actual transaction. However retailers across developed countries with better internet
access, bandwidth, innovative technologies like augmented reality, virtual reality, 3D
technology and innovative web applications have been successful overcome this issue. Use of
innovative technologies will help to push the sales of online retail in India in future.
3.
Mobile Phone Penetration
Today we have more than 900 Mn mobile users in India, out of which 270 Mn mobile
users are using internet. It is expected to grow exponentially to the tune of 519 Mn mobile
internet users by 2018. Affordable smart phones and economical data usage plans are the
drivers for mobile internet users. The tiny screen is emerging as the driving force for the
Indian online retail. Today all the major online retail players have presence on mobile with the
innovative and user friendly mobile applications. In US, The mobile revolution has reached
another milestone: Consumers now spend more time interacting with online retailers on
smartphones and tablets than they do on desktops and laptops.
55% of all time spent with online retail in June 2013 occurred on a mobile device, finds
web and mobile measurement firm comScore. 45% occurred on desktops and laptops.
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Specifically, smartphones accounted for 44% of retail Internet minutes while tablets accounted
for 11%. Since consumers now spend more than half of their time on retailers’ web sites using
their smartphones and tablets, mobile can’t be viewed simply as an ancillary device or action,
it now epitomizes how consumers think and act when they interact with retailers. Retailers
have to continue to invest to make sure they get their mobile offerings right, or will
increasingly risk alienating customers and leaving significant money on the table.
4.
Lenient Return Policies:
The ease of return has been shown to be important to customer decisions. Robert and
Tibben-Lemke (1999) found in their survey that 63% of their respondents thought that a clear
and attractive return policy was one of the most important aspects for an organization
(Manufacturers and Retailers) to stay competitive. Two other surveys by Pinkerton (1997) and
Trager (2000) found that over 70% of consumers stated that they investigate the organization’s
return policy before they decide to shop. (Hsiao and Chen, 2011)Lenient return policies seem
to have a positive impact on purchasing behaviors. Post return spending has been shown to
jump 158% to 457% to that of pre return spending (Bower and Maxham, 2012). Padmanabhan
and Png (1997) found that lenient return policies can be a competitive.
5.
Infrastructure:
One of the key reasons of success of the online retail is “Convenience” in the form of
delivery of the goods on the fastest possible way. All the major online retailers are allocating
their resources in building the capacities towards delivering goods this effect. To access the
huge Indian market needs state of the art road and storage infrastructure to optimize the time
to delivery. In this aspect, India as a country fares considerably low as compared to developed
country. As per the current state of the infrastructure in India, this is surely one of the major
factors restricting the growth of online retail in India.
6.
Payment options:
Trust is one the crucial factor in the growth of the online retailing across the world. To
build the trust, retailers have come with innovative ways to build the trust among the online
buyers. Lenient payment options like Cash on delivery have been instrumental in addressing
the trust factor boosting the online retail. Credit card- Availability of easy credit facility for
more than 45 days has been another major factor in boosting the online retail.
However as compared to developed economies, India still has long way to go ahead. One of
the major restraining factors along with infrastructure and network accessibility is availability
of easy credit facilities.
7.
Goods return:
With the very positive outlook towards the growth of the E-retail in future, one of the
predominant factors which playing role in the growth of E- retailing worldwide is Trust policy
of the E-retailers. Over the years E- retailers have been successful in building the trust factor
with the help of customer friendly return policy for the online goods purchase. However, the
recent surveys and studies have found that, very customer friendly return policies are hurting
the profit margins of the E-retailers making it very enviable to operate with these
circumstances.
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Conclusion:
India is looked upon by many leading retailers across the world as its home to the more
than 1.3 billion people. However online retailing has reached total of $2.3bn by 2013 due to
major constrains of internet penetration and infrastructure capabilities. Increasing online
penetration remains the key to realizing true potential of online retail in India. Access to
internet in rural India is still major issue, However with 900 million mobile subscribers and
penetration of smart-phones will be driving the online retail in future. Logistic and Transport
infrastructure is another major issue hindering the growth of online retail outside the
boundaries of Metropolitan and tier-1 cities. Timely delivery is the key driving factor of online
retail, planned infrastructure on road & highways across the tier-2 and tier-3 cities would help
to improve the online customer base in the interior of the country. Low credit card penetration
and complex tax laws also impede the ability to conduct online transaction by Indian online
customer. With the GST discussions are on, it is expected that GST will bring big change in
the online retailing as it will be transparent and ease of operation for retail players. Despite the
hurdles, India’s large population base presents retailers with tremendous long term opportunity
in future.
REFERENCES:
Research Papers and Journals

Kothari, C. R., Research Methodology Methods and Techniques, 2nd Revised Edition,
New Age International (P) Ltd. Publishers, 2010

Tripathi, P. C., Research Methodology in Social Sciences, 6th Revised and Enlarged
Edition, Sultan Chand & Sons, 2007

ChetanBhagat, Retail Management, OXFORD.

Berman& Evans, Retail Management, Pearson Education.

Bellman, S., G. L. Lohse, and E. J. Johnson, “Predictors of Online Buying Behavior”,
Communications of the ACM (Association for Computing Machinery), Vol. 42, No, 12:
32-38, 1999.

Liang, T. P. and J. S. Huang, “An Empirical Study on Consumer Acceptance of Products
in Electronic Markets: A Transaction Cost Model”, Decision Support Systems, Vol. 24:
29-43, 1998

Zhou, L., L. Dai, and D. Zhang, “Online Shopping Acceptance Model – A Critical
Survey of Consumer Factors in Online Shopping”, Journal of Electronic Commerce
Research, Vol. 8, No. 1:41-62, 2007

Sarbapriya Ray (2011), Emerging Trend of E-Commerce in India: Some Crucial
Issues,Prospects and Challenges, Computer Engineering and Intelligence System,
Volume 2, No.5

Jayendra Sinha (USA), Jiyeon Kim (USA), (2012), Factors affecting Indian consumers’
online buying behavior, Innovative Marketing, Volume 8, Issue 2

Bhavya Malhotra,(2014), E-Business: Issues & Challenges in Indian Perspective, Global
Journal of Business Management and Information Technology, Volume 4, Number 1,
pp. 11-16
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Syed Md Faisal Ali Khan, Vivek Devrat Singh, Dr. Chanchal Chawla and Dr. Divya
Rana(2014), Factors Effecting Purchase Decision in Online Retail System in India,
International
The Evolution of Retailing: Reinventing the Customer Experience, KPMG LLP
Websites

http://www.iamwire.com/2014/07/e-commerce-in-india-past-present-future/27805

https://en.wikipedia.org/wiki/E-commerce_in_India

https://www.internetretailer.com/2009/02/26/the-history-of-e-commerce

https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/BBGRetail.pdf

http://www.open.edu/openlearn/money-management/management/businessstudies/historyonline
http://www.onlinemarketing-trends.com/2014/07/top-10-geographical-marketswith.html

http://www.retailresearch.org/onlineretailing.php

http://www.open.edu/openlearn/money-management/management/businessstudies/historyonline-retail

http://yourstory.com/2014/08/indian-e-commerce-ecosystem/
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Marketing Of Health Services In Gorakhpur District: A Micro Level
Analysis
Dr. Poonam Ojha,
Department of commerce, Marwar Business School,
Gorakhpur, Uttar Pradesh, India
Email- poonamojha9999@gmail.com
ABSTRACT:
The study is based mainly on primary data which have been collected through
questionnaire and personal interviews with the health service centers, medical
practitioners and their respective clients. In order to make the study intensive and
purposeful, a sample survey has been conducted representing urban as well as rural
segment of the Gorakhpur district. In case of customers, the sample represents different
income groups, professional and social groups. As regards the size of the samples, a
random sample of 150 hospitals/ nursing homes, 300 doctors and 500 customers has
been selected on the basis of convenience sampling. To know the availability of health
services and marketing strategies adopted by hospitals/ nursing homes/ medical
practitioners both at national level as well as at Gorakhpur district level, secondary
information have also been used. This secondary information has been conducted from
various published sources which include: journals, national health profile, books etc.
The data so collected have been classified analyzed and interpreted by the use of various
suitable statistical tools and techniques. The two objectives of the study are: (i) to know
the facilities provided by the district nursing homes/hospitals and; (ii) to know the
marketing strategies adopted by them for marketing of health services.
Key words: marketing of services, health services, marketing, services
Introduction
In order to know the ground realties about availability of health centre, services offered
by them, their marketing strategies, role of price as well as non-price competition in marketing
the health services and satisfaction level of customers in Gorakhpur district, a comprehensive
survey was conducted. A well structured questionnaire consisting of three parts i.e. Part-I for
Nursing Homes/ Hospitals, Part-II for patients and Part-III for Doctors and Medical
Practitioners has been designed. A sample of 150 Nursing Homes/ Hospitals, 500 patients and
300 doctors has been selected on the basis of convenience sampling.
The responses/ feelings/ satisfaction level, expectations of the patients are presented
herewith.
Socio-Economic Profile of sample (Nursing Homes/ Hospitals)
Table 1
Classification of sample Nursing Homes/ Hospitals on the basis of their Geographical
location
Location No. of Nursing Homes/ Hospitals Percentage
Urban
100
67
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Location No. of Nursing Homes/ Hospitals Percentage
Rural
50
33
Total
150
100
Source: Questionnaire
It is evident from the table 1 that 150 Nursing Homes/ Hospitals have been selected as
sample for the purpose. Out of 150, one hundred constituting 67 percent of total sample were
located in urban area and rests 50 constituting 33 percent were located in rural areas of
Gorakhpur district.
The following table 2 depicts that out of 50 rural nursing homes/ hospitals, 40 are owned
by private people/ organizations/ institutions and only 10 are run by government departments/
organizations whereas the number of urban nursing homes/ hospitals run by government
departments is 20 and rest 80 are owned by private people/organizations/institutions. Hence, it
could be observed that only 20% of nursing homes/ hospitals are owned by government and
remaining 80% are owned by private sector, which shows the inadequacy of public ownership
in the field of health services in the district which is against the principle of welfare state.
Table 2 : Classification of sample Nursing Homes / Hospitals on the basis of Ownership
Type of Ownership
Rural
40
10
50
Private
Public
Total
No. of Nursing Homes/Hospitals
Urban
Total
Percentage
80
120
80
20
30
20
100
150
100
Source: Questionnaire
Table 3 : Classification on the basis of number of beds
No. of Beds
Rural
1-250
251-500
501-750
Above-750
Total
45
5
Nil
Nil
50
No. of Nursing Homes / Hospitals
Urban
Total
45
90
31
36
21
21
3
3
100
150
Sourrce: Questionnaire
It is evident from the table 3 that 90 hospitals, (rural and urban area each having 45
hospitals) constituting 60 percent of total sample have less than 250 beds and rest 36 having
251 – 500 beds, 21 having 501-750 beds and only three are having more than 750 beds. It is
also observed that only three hospitals, (two governments and one private) are imparting their
health services with the help of more than 750 beds. In rural areas of Gorakhpur district most
of the hospitals, around 90 percent, are having less than 250 beds which reveals in adequacy of
health services in rural areas.
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Table 4 : Classification of sample nursing homes/ hospitals on the basis of their medium
of communication
medium of
communication
a) Doctors
b) MR/PRO’s
c) Patients
d) Staff Members
e) Publicity
Total
No. of Nursing Homes / Hospitals
Rural
Urban
Total
Percentage
10
10
20
13.33
7
30
37
24.67
20
30
50
33.33
3
10
13
8.67
10
20
30
20.00
50
100
150
100
Source: Questionnaire
It is clear from table 4 that the hospitals have five mediums for communicating their
health facilities to the patients in the district i.e. Doctors, MR/ PRO’s, Patients, Staff members,
and publicity. In rural areas most of the hospitals about 40 per unit have patient to patient
communication as a tool for popularizing their services among rural masses followed by
doctors, mouth publicity, MR/ PRO’s and staff members as tool of communication whereas in
urban areas the most popular tools of promoting health services are MR/ PROs and patients
followed by publicity and staff members. At district level patient to Patient communication is
most popular than that of other tools of communication, as is evident from the table that shows
1/3rd of sample nursing homes/ hospitals their opinion in the favour of patient to patient
communication. Patient to patient communication would be effective only when the
customers/ patients are satisfied with the quality of services offered by health centres. It can be
interpreted here that it is the quality of services and satisfaction of customers/ patients which
play significant role in popularizing the health services in the city.
Table -5 Classification on the basis of specialization of doctors.
Specialists
a) Gynecologist
b) Pediatrics
c) Dentist
d) Cardiologist
e) Radiologist
Total
No. of Nursing Homes / Hospitals
Rural
Urban
Total
20
47
67
20
30
50
10
13
23
4
4
6
6
50
100
150
Percentage
44.67
33.33
15.33
2.67
4
100
Source: Questionnaire
It is observed from the table 5 that the highest numbers of sample nursing homes/
hospitals (44.67%) are delivering the Gynecological services followed by Pediatrics services
(33.33 percent), Dentist Services (15.33 percent), Cardiologist services (2.67 percent), and
Radiologist services 4 percent respectively. An attempt has been made to know to what extent
the health centres of the district are fulfilling the aspirations of patients. For this a sample of
500 patients, 200 from rural area and 300 from urban area has been selected on the basis of our
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convenience. The opinions of sample patients regarding their satisfaction are presented
herewith.
Socio-Economic Profile of Patients
Table -6 : Classification of sample of Patients on the basis of their Geographical
Location
Location
Rural
Urban
Total
No. of Patients
200
300
500
Source: Questionnaire
It is clear from the table 6 that 500 patients comprising of 300 from urban area and 200
from rural area have been selected as respondents on the basis of our convenience for the
purpose. An attempt has been made to give the proper representation of male, females of rural
and urban area, patients of all age, income and educated groups of the district.
Table -7 Classification on the basis of Age Group
Age Group
(In years)
0-14
15-30
31-50
Above 50
Total
No. of Patients
Rural
55
30
40
75
200
Urban
100
40
60
100
300
Total
Percentage
155
31
70
14
100
20
175
35
500
100
Source: Questionnaire
It is clear from the table 7 that the highest number of sample patients falls in the age
group of more than 50 years followed by below 14 years, 31-50 years and 15 to 30 years as is
evident from the table that 175 respondents belong to age group of above 50, 155 belong to
age group of below 14. 100 come from the age group of 31-50 and 70 come from the age
group of below 15-30 years.
Table -8 Classification of sample patients on the basis of Sex
Sex
No. of Patients
Rural
Urban
Total
%
Female
75
100
175
35
Male
125
200
325
65
Total
200
300
500
100
Source: Questionnaire
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An attempt has been made to include both male and female patients in the sample. The
number of male patients is 325 (65 percent) and female patients are 175 constituting 35
percent of total sample. Urban respondents include 200 males and hundred females where as
rural respondents comprises of 75 female and 125 male patients.
Moreover, from the following table 9 an attempt has also been made to know the
different types of medical facilities utilized by sample respondents. It is observed that the
highest number of sample patients (170 out of 500) have been using Obstetrical and
Gynecological facilities in the district. Pathological and Diagnostic facilities are used by least
number of sample patients (65 in each case) in the district. The numbers of sample patients
using surgical and maternity facilities have been 105 and 95 respectively. It can be interpreted
here that most of the people of the district are suffering from obstetrical, Gynecological and
Surgical diseases which offers the opportunities to open up the hospitals/ nursing homes with
these facilities.
Table -9 Classification of sample on the basis of facilities utilized by patients
Facilities Utilized
No. of Patients
Rural
Urban
Total
%
a) Pathology lab
b) Diagnostic Centre
c) General Surgery
d) Maternity
e) Obstetrical and Gynecology
25
25
30
45
75
40
40
75
50
95
65
65
105
95
170
13
13
21
19
34
Total
200
300
500
100
Source: Questionnaire
Table -10 : Determinants of satisfaction level of Respondents
Determinants
Excellent Good Satisfactory Moderate Poor Weighted
Avg.
1. Cooperative Staff
75
225
165
35
0
3.68
2.
Behaviours
of 90
230
145
35
0
3.75
doctors
3.
Hygienic 100
130
70
90
60
2.94
Environment
4. Hospitalization
45
75
115
160
105 2.59
5.Environmental
0
35
90
180
195 1.89
Sanitation
Source: Questionnaire
Respondents have different psychological view point towards the services of the health
centres. Various determinants-cooperative staff, behaviour of doctors, hygienic environment,
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A
M’s Inteern
nattion
nal E-J
E ou
urn
nal on
n
O going
On
g Res
R sea
arch
h in
i Ma
Mana
ageem
men
nt & IT
I
E SS
E-I
SN – 232
2 20--00
065
5
ho
osp
pitaalizzattion
n and
a d en
nviiro
onm
men
ntal saniitattion can
c n reve
r eall th
he qu
ualiity off seerv
vicee pro
p vid
ded
d by
b a
paartiicu
ularr heallth ceentrre.
T blee -1
Tab
10 dep
d piccts thee weig
w ghtted
d av
verrag
ge of
o all
a thee dete
d erm
min
nan
nts wh
hich rev
r vealls the
t e op
pin
nion
n
off reesp
pon
ndeents to
ow
ward
ds serviices pro
p ovid
ded
d by
b the
t e heallth ceentrress. Beh
B hav
viou
ur off do
octtorss got
g thee
hiigh
hest wei
w igh
htag
ge (3.75
5) rev
r veaalin
ng tha
t at resp
r pon
ndeentts are
a e happ
py wiith
h th
he beh
b hav
vio
our off do
octtorrs
bu
ut sim
mulltan
neo
oussly
y th
hey
y arre unh
u hap
ppy
y with
w h th
he no
on--preeseencce of
o doccto
ors at th
he pre
p emiisess in
n case
c e
off ru
uraal hos
h pittalss esspeeciaally
y PHC
P C’s.
Fiig 1 : Det
D term
miina
ants of
o sati
s isfa
acttion
n lev
l el of
o Reesp
pon
ndeentts
Coo
C
opeeraativ
ve staaff haas got
g t th
he hig
gheer weeig
ghtaagee (3
3.6
68) in
ndiccatting
g goo
g od ratting fro
f m thee
reesp
pon
ndeent’’s sid
de. Beh
B hav
viou
ur is goo
g od, bu
ut no
ot theeir attten
ndaancce in
n case
c e of Gov
G vern
nm
men
nt
ho
osp
pitaals. Res
R spo
ond
den
nts aree les
l s sati
s isfiied
d with
w h hyg
h gien
nicc env
e viro
onm
men
nt (2..95
5). Th
his iss laack
k of
o
clleaanliineess in
n th
he Gov
G vern
nm
men
nt hos
h spitals. Neeith
herr th
he do
octtors nor
n r staf
s ffs taakee in
nitiiatiivee to
o
im
mprrov
ve theesee co
ond
ditiion
ns. Th
hey
y com
me forr so
om
me hou
h usee and do
on’’t bot
b therr abo
a out ho
ospitaalization
ns
(2
2.95).. Th
he waash
h ro
oom
ms an
nd uriinaals aree very
v y dirt
d ty and
a d em
mit fo
oull od
dorr. Thu
T us,, th
he hea
h alth
h centtres
esspeeciaally
y PH
PHCss in
n ru
uraal are
a as neeed
d to
o im
mprov
ve thee area
a as of ho
osp
pitaalizzatiion
n keeep
pin
ng hyg
h gieenicc
en
nviiron
nm
men
nt in the
t prrem
misees, en
nvirron
nm
men
ntall saanittatiion
n.
T blee -1
Tab
11 : Clas
C ssificcatiion
n off sa
am
mplle on
o the bas
b sis of lev
vell off sa
atissfa
actiion
n
Levell of Sati
Le
S isfa
facttion
a Sati
a)
S isffacttory
y
b) Un
nsaatissfaccto
ory
T al
Tota
No
o. of
o Pa
Patieentss
Ru
ura
al
Urba
Ur
an
2
26
1 9
129
(13)
( 3)
(43
17
74
71
(8
87)
( 7)
(57
20
00
3 0
300
(4
40)
( 0)
(60
To
ota
al
15
56
(31)
34
45
(69)
50
00
( 00))
(30
Sou
urcee: Qu
Q esttion
nnaairee
(*
*) figu
f urees in
i bra
b ack
ket ind
diccatee perccen
ntag
ge.
IN
NC
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An effort is being made to know the level of satisfaction of consumers with the services
offered by nursing homes/ hospitals in both the areas – rural and urban of the districtsatisfaction of consumer is perceived as a key point to the success of any organization in
modern era of competition. The sample respondents were interviewed in this regard. It is
observed that services offered by health centres i.e. nursing homes/ hospitals do not fulfill the
aspirations of the patients in the district as is clear from the table 11 that only 31 percent
patients are satisfied and 69 percent sample patients are not satisfied. Rural patients are more
dissatisfied with the quality of facilities and services and with the behaviour of the doctors and
nursing staff. It is depicted in the table 11 that health services in rural areas fulfill aspiration of
only 13 percent of patients where as rest 87 percent are fully dissatisfied. In an informal
interview most of them expressed their dissatisfaction with the poor quality of facilities rude
behaviour of doctors and nursing staff and distant location of hospitals from their villages.
Because of distant locations poor transportation facilities people of villagers do not avail the
facilities. Poor transportation and roads and more sample respondents of both urban and rural
areas of the district expressed their dissatisfaction more with government hospitals in
comparison to private nursing homes/ hospitals.
Table -12 Classification on the basis of Source of Contact:
Sources
No. of Patients (500)
Rural
Urban
Total
%
a) Doctor
b) PRO’s
c) Staff Members
d) Publicity
e) Patient (user)
Total
14
1
8
33
44
100
Source: Questionnaire
An attempt has been made to know the sources by which sample patients came into the
contact of hospitals/ nursing homes. The motive of this attempt is to know the effective
sources of contacts of the sample patients in the district. The highest number of patients (220
out of 500 i.e. 44 percent) expressed that they came into the contact with the help of the users
of the facilities / services of the concerned hospitals / nursing homes. 165 respondents (33
percent) expressed that they went to the hospitals/ nursing homes because of the hospital’s
publicity. A very insignificant role of PRO’s can be observed as a source of contact in the
district. Staff members along with doctors are also proved as an ineffective mode of contact as
is clear from the (table 6:12) that only 8 percent availed the facilities of sample hospitals
because of the efforts made by staff members and 14 percent availed because of the efforts of
doctors of the sample nursing homes/ hospital in the district.
Table -13 Classification of Sample of Doctors on the basis of location
Location No. of Doctors/ Medical Practitioners
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0
15
65
100
200
Rural
100
Urban
200
50
5
25
100
120
300
70
5
40
165
220
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Location No. of Doctors/ Medical Practitioners
Total
300
Source: Questionnaire.
In order to know the opinion of doctors/ Medical Practitioners about sample of 300
doctors has been selected effectiveness of non-price competition on marketing of health
services, practicing in sample nursing homes/ hospitals. The number of sample doctors from
sample hospitals/nursing homes working in rural area is 100 and 200 doctors & from each
sample nursing homes/ hospitals working in urban area of district.
Table -14 Classification on the basis of Sex
No. of Doctors / Practitioners
Sex
Rural Urban Total
Male
90
Female 10
Total
100
120
80
200
190
110
300
%
63.33
36.67
100
Source: Questionnaire
The male and female doctor’s proportion is 63:37, as per the table 14; the number of
male doctors in sample is 190 whereas the number of female doctors in the sample is 110. The
percentage of female doctors in the sample in rural area is only 10 percent.
Opinion of sample doctors/ medical practitioners about the effectiveness of marketing
strategies in the District.
In order to test the second objective of the study, a sample of 300 doctors has been
selected, 100 from 50 hospitals chosen from rural area and 200 from urban sample hospitals.
The purpose of interviewing doctors was to know which marketing strategy – price
competition or non-price competition was more effective in popularizing the services and
attracting the customers/ patients. Price competitive strategy consists of fees/ charges charged
by doctors & hospitals from patients. Non-price strategies include appointing PRO’s, Dalal’s,
quality of services, organizing special camps, advertisement, publicity etc. The sample
doctors/ medical practitioners selected from rural hospitals opined that both price as well as
non-price competition are equally effective in popularizing the facilities offered by hospitals
both government and private in rural areas of the district.
Table -15 : Opinion of Doctors regarding Price as well non-price Competition
Rural area
Type of competition
E
Price competition (fees and 80
charges for services)
Non-Price
Competitions 60
(Dalal, Agent, Hoardings,
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Urban area
Total
NE
Total
E
NE
Total
20
100
30
170
200
300
40
100
190
10
200
300
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Rural area
Type of competition
E
NE
Urban area
Total
E
NE
Total
Total
Pamphlets, Wall painting,
Paternal, Publicity, electronics
media special camps, quality
of services)
*E-Effective **NE-Not effective
Source: Questionnaire
It is clear from the table 15 that in rural area both Price as well as non-price
competition are effective whereas in urban area non-price competition is more effective in
marketing the health services in the district. It also reveals that out of 100 doctors from rural
area, 80 expressed their positive opinion in favour of price competition whereas 170 out of
200 doctors from urban area expressed their negative opinion about the effectiveness of price
competition. But in case of non-price competition 190 out of 200 doctors of urban area and 60
out of 100 doctors of rural area expressed that this strategy is most effective in popularizing
the services and attracting the customer towards health services in the district.
Findings of the Study and Conclusion
Keeping in view the significance of marketing and dealing with the above objectives,
the study has examined the following findings –
1.
2.
Health service centers do not fulfill the aspirations of their customers.
Non-price competition strategy is more effective in marketing of health services.
Thus, we can conclude that in Gorakhpur district there is inadequacy of health services
in health centers and whatever the services rendered are unsatisfactory. Moreover non-price
competition is more effective as marketing strategies.
References:
[1] Services Marketing, Lovelock, C.H., 1991, Prentice Hall International
[2] The Essence of Services Marketing, Payne, a, 1993 Prentice Hall International
[3] Principles of Service Marketing, Palmer, A, 1994, McGraw-Hill.
[4] The Marketing of Services, Cowell, D.,1991, Butterworth Heinemann
[5] Marketing Services, Berry, L., and Parasuraman, A., 1991, the free Press, Macmillan
Inc.
[6] Services Marketing, S.M.Jha; Himalaya Publishing House.
[7] A.V. Srinivasan; Health case in India – A Profile and the future.
[8] A Study of Customer satisfaction Among the Patients Admitted to a cardiac Intensive
case unit in a corporate Hospital, A Hyderabad-Walt air
[9] Anderson, S: ‘Operation Research in Public Health, Public Health reports.
[10] Department of Health & Children (2001) Quality Fairness: A Health System for you,
Dublin: Govt. Publications.
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[11] Department of Health & Children (2004). Report on Health Strategy. Dublin: Govt.
publications.
[12] Dranove, D., Simon, C. & White, w. (1998). ‘Determinants of managed care
penetration’, Journal of Health Economics.
[13] Reddy, P.C. 1997. ‘Health care Opportunities in India’, Asian Hospital.
[14] Economic and Political Weekly
[15] Indian Journal of Marketing
[16] Times of India
[17] The Hindu
[18] Journal of Service Research
[19] Annual Report of District Statistical Office, Gorakhpur.
[20] Annual Report IMA and GP’s Association
[21] Annual Report of Health Ministry, Government of India, New Delhi.
[22] Annual Report of Indian Medical Council, State Government, Lucknow.
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General Study On Effectiveness Of Advertising On Radio Channels In Pune
City: A Survey Of College Students
Prof. Ganesh Lande,
Prof. Sunil Darawade,
RMD Sinhgad Management School
Assistant Professor,
Kondhapuri, Pune,India
Indira Institute of Management
Pune,India
ABSTRACT:
“Advertising is a form of marketing communication used to promote or sell
something, usually a business’s product or service.” The radio operations started in
India by All India Radio (AIR) in the year 1930. Commercial advertisements
broadcasted on the radio for getting effective consumer response. In the decades of
1970, 1980 and 1990 the radio broadcasting was more popular in India. Hence it has
got the opportunity to the businesses to advertise their products and services on the
radio. Later the term is developed as commercial advertising. The effectiveness of the
radio advertising is very high in the previous decades but now a days TV channels
advertising is dominating the radio advertising.
Radio advertising hold a marginal share among the media category like
newspaper and television. The present paper aimed at to measure the effectiveness of
radio advertisement among the college students. The study also focuses on the
broadcasting of radio advertisements is significant or not in the opinion of college
students.
Key Words: Advertising, Marketing, Effectiveness, Radio advertising, Price, Promotion
etc.
Introduction:
All India Radio (AIR) officially known as ‘Akashwani’ (the voice from the sky)
established in the year 1930 and is the national public radio broadcaster of india and division
of Prasar Bharati. In India, FM broadcasting began on 23rd July 1977 and then onwards the
progress of radio broadcasting grown in the sense of entertainment, spreading news,
advertising products and services etc. All India Radio (AIR) was the sole government
undertaking was operating radio activities up to 1993. Government of India took the initiative
to privatize the radio broadcasting in India then after the many private players entered into
radio broadcasting. The radio advertising is known as commercial advertising.
Commercial radio is a radio station that generates revenue through advertising, also
called as radio commercials. The advertisements are released by companies which find the
commercial radio to be a good medium to take their message to their customers. Several
companies also sponsor popular programmes to reach out to their audience. However, the
commercial radio should have a large listener base to attract the advertisers. This, in turn,
depends on the kinds of programmes the radio station broadcasts.
When VIvidh Bharati started airing commercials on radio, India got its first commercial
radio in 1967. Chanda committee recommended some suggestions on the broadcasting of
commercials were accepted by Government of India and the operations were started in the
year 1967. The first commercials were beamed from the Mumbai-Pune-Nagpur beam of
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Vividh Bharati. Today, Vividh Bharati runs commercials from several broadcast stations
across India. It also has an all-night service to entertain listeners. Some of the popular
programmes broadcast on Vividh Bharati are Jaimala, Special Jaimala, Hawa Mahal, Inse
Miliye, Sangeet Sarita, Bhoole Bisre Geet, Chitralok, Sargam Ke Sitare, Ujale Unki Yadon Ke,
and Chhayageet. These programmes have entertained generations of radio listeners in India.
The advertising for Vividh Bharati is accepted at all its Commercial Broadcasting
Service Centers, which are located in important Indian cities. Besides this, the Central Sales
Unit of All India Radio, which is located in Mumbai, offers single window booking facility
under which advertisers can choose airtime and the radio stations where their ads can be
broadcast under a single contract.
Objectives of the Paper:
1.
To study the concept of commercial advertising.
2.
To study the effectiveness of advertising on radio in Pune city.
3.
To know the significance of radio advertising among the college students.
Research Methodology:
Data Collection:
Primary data was collected through questionnaires which were circulated among the
college students. For secondary data collection some websites were surfed and important
matter was reviewed.
Sample selection:
Survey method was adopted for data collection so the sample was selected randomly.
150 responses were collected for the study out of that 12 responses were rejected due to
insufficient data.
Hypothesis
H0: Radio advertisements are effective.
H1: Radio Advertisements are not effective.
Data Analysis:
Data analysis was done by using charts and tables.
Literature Review:
Influence of Radio Advertising:

Panagopoulos and Green, 2008, the Paper discusses on the differential effects of
advertising campaign of leading and challenger retail firms on expected sales of products
reveal that radio advertisement produce substantial arousal among the consumers and it
will help to increase in the sales of retail stores. The advertising is required in the leisure
season in the metropolitan cities.

Hubbard, 1978; Yadav, 1994, the argued in their study as the creative strategies used in
radio commercials are different and 4 advertising firms adjust their communication
strategies in response to the specific needs of different consumers. The Central Place
theory advocates that products with higher price and lower buying frequency influence
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Ongoing Research in Management & IT
E-ISSN – 2320-0065
positively the perception of consumer on the promotional communication of stores
delivered through the radio programs and outdoor advertising.
Effectiveness of Advertising on Radio Channels:
Kiran Manaral, 2001, The Advertising Club, in editorial article says that once upon a
time radio is a powerful medium of advertising in India. But now day television advertising
gives more benefits rather than radio commercials. Hence the significance of radio advertising
is getting lower. Radio in India has undergone three phases. In the mid-1990s, the government
allowed Private operators to own and operate private FM radio channels in metropolises. The
second phase saw more private FM channels and the third phase saw FM channels now in the
process of rolling out in small towns. Further information given as According to Pitch
Magazine, advertising revenues from radio reached Rs. 885 crores in 2010 when compared
with Rs. 681 crores in 2009. Radio’s share of the ad pie still is humble though, at just 3.7 per
cent, though the growth has been heartening at 30 per cent. Internationally though, the normal
share of pie that radio enjoys is between 10 and 12 percent which does indicate how far radio
needs to go in India. Currently FM radio reaches 40 million listeners the four main metros and
350 million in 91 cities and town. With 800 new stations slated in 300 towns, the reach will
definitely jump and consequently radio’s share of advertising pie.
Data Collection:
Table No. 1. Listening of Radio Advertisements
Sr. No. Gender Yes No Total
1
Male
38 45
83
2
Female 30 25
55
Total
68 70 138
Source: Field Data, 2015
Table No. 2. Frequency of Listening Radio Advertisements
Sr. No. Gender Always Sometimes Rarely By Mistake Total
1
Male
9
12
11
2
Female
Total
12
21
8
20
6
17
6
38
4
30
10
68
Source: Field Data, 2015
Table No. 3. Radio Advertisement contents / message
Sr.
No.
1
2
Gender
Excellent
Very Good
Good
Fair
Male
Female
Total
4
8
12
9
6
15
6
8
14
14
4
18
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Poor
Total
5
38
4
30
9
68
Source: Field Data, 2015
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Table No. 4. Effectiveness of Radio Advertisements
Strongly
Agree
Agree Neither Disagree
Strongly
Disagree
Total
M
F
M F M
F
M
F
M
F
M F
12
16 9
7
5
5
4
2
0
38 30
9
14 8
4
4
5
5
4
4
38 30
13
8
8
4
2
7
3
0
38 30
Radio
Advertisements
8
are more attractive
Radio
Advertisements
2 are effective to build the 11
brand
Use
of
Radio
Advertisements helps to
17
3 improve awareness about
Product or service
1
6
Source: Field Data, 2015
Table No. 5 : Purpose of Non-listening of Radio Advertisement
1
2
3
4
5
6
Purposes
Poor Delivery of Information
No Proper attention on Advertisement
More options for radio channels
Feel as disturbance in the programme
Listening only for entertainment
All the above
Total
Male
03
17
13
06
05
01
45
Female
2
9
8
5
1
0
25
Source: Field Data, 2015
Table No. 6. Radio advertising is effective
Sr. No.
1
2
Gender
Yes
No
Male
35
48
Female
21
34
Total
56
82
Source: Field Data, 2015
Total
83
55
138
Findings:
During The study it was found that the Radio advertisements are more attractive to build
brand image in the mind of the college students. It helps to improve the awareness about the
product.
Limitations of the study:
Data collection is limited to Pune City and opinions are collected only from college
students. The biased answers may be collected. Time is the significant factor in data
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collection. It was very difficult to collect the data from the college students. Colleges selected
from Pune city only.
Conclusion:
The Advertising on radio is a powerful medium of advertising in India. Hence it has
wide scope to advertise on radio to create a good brand image into the mind of the customer &
induce them to trial the product.
Bibliography:
1.
https://en.wikipedia.org/wiki/Akashvani_%28radio_broadcaster%29 accessed on 11th
November, 2015 at 11.00am.
2.
“What is commercial radio and how it has grown in India”, Article posted by Sunil
Saxena
in
Multimedia
on
March
8,
2014;
viewed
at
th
http://www.easymedia.in/commercial-radio-grown-india/ accessed on 11 November,
2015 at 11.31am.
3.
https://en.wikipedia.org/wiki/FM_broadcasting_in_India accessed on 11th November,
2015 at 11.10am.
4.
Panagopoulos, C and Green, D. P. 2008. Field Experiments Testing the Impact of Radio
Advertisements on Electoral Competition, American Journal of Political Science, 52:
156-168.
5
Rajagopal, “Role of Radio Advertisements as a Behavioral Driver among Urban
Consumers”, accessed research paper on 12th November, 2015 published on the
http://www.sibresearch.org/uploads/2/7/9/9/2799227/rajagopal_wp-04-2010.pdf.
6.
http://www.theadvertisingclub.net/index.php/features/editorial/3267-how-effective-isradio-advertising accessed on 13th November, 2015 at 2.30pm.
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General Study On Effectiveness Of Advertising On Radio Channels In Pune
City: A Survey Of College Students
Prof. Ganesh Lande,
Prof. Sunil Darawade,
RMD Sinhgad Management School
Assistant Professor,
Kondhapuri, Pune,India
Indira Institute of Management
Pune,India
ABSTRACT:
“Advertising is a form of marketing communication used to promote or sell
something, usually a business’s product or service.” The radio operations started in
India by All India Radio (AIR) in the year 1930. Commercial advertisements
broadcasted on the radio for getting effective consumer response. In the decades of
1970, 1980 and 1990 the radio broadcasting was more popular in India. Hence it has
got the opportunity to the businesses to advertise their products and services on the
radio. Later the term is developed as commercial advertising. The effectiveness of the
radio advertising is very high in the previous decades but now a days TV channels
advertising is dominating the radio advertising.
Radio advertising hold a marginal share among the media category like
newspaper and television. The present paper aimed at to measure the effectiveness of
radio advertisement among the college students. The study also focuses on the
broadcasting of radio advertisements is significant or not in the opinion of college
students.
Key Words: Advertising, Marketing, Effectiveness, Radio advertising, Price, Promotion
etc.
Introduction:
All India Radio (AIR) officially known as ‘Akashwani’ (the voice from the sky)
established in the year 1930 and is the national public radio broadcaster of india and division
of Prasar Bharati. In India, FM broadcasting began on 23rd July 1977 and then onwards the
progress of radio broadcasting grown in the sense of entertainment, spreading news,
advertising products and services etc. All India Radio (AIR) was the sole government
undertaking was operating radio activities up to 1993. Government of India took the initiative
to privatize the radio broadcasting in India then after the many private players entered into
radio broadcasting. The radio advertising is known as commercial advertising.
Commercial radio is a radio station that generates revenue through advertising, also
called as radio commercials. The advertisements are released by companies which find the
commercial radio to be a good medium to take their message to their customers. Several
companies also sponsor popular programmes to reach out to their audience. However, the
commercial radio should have a large listener base to attract the advertisers. This, in turn,
depends on the kinds of programmes the radio station broadcasts.
When VIvidh Bharati started airing commercials on radio, India got its first commercial
radio in 1967. Chanda committee recommended some suggestions on the broadcasting of
commercials were accepted by Government of India and the operations were started in the
year 1967. The first commercials were beamed from the Mumbai-Pune-Nagpur beam of
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Vividh Bharati. Today, Vividh Bharati runs commercials from several broadcast stations
across India. It also has an all-night service to entertain listeners. Some of the popular
programmes broadcast on Vividh Bharati are Jaimala, Special Jaimala, Hawa Mahal, Inse
Miliye, Sangeet Sarita, Bhoole Bisre Geet, Chitralok, Sargam Ke Sitare, Ujale Unki Yadon Ke,
and Chhayageet. These programmes have entertained generations of radio listeners in India.
The advertising for Vividh Bharati is accepted at all its Commercial Broadcasting
Service Centers, which are located in important Indian cities. Besides this, the Central Sales
Unit of All India Radio, which is located in Mumbai, offers single window booking facility
under which advertisers can choose airtime and the radio stations where their ads can be
broadcast under a single contract.
Objectives of the Paper:
1.
To study the concept of commercial advertising.
2.
To study the effectiveness of advertising on radio in Pune city.
3.
To know the significance of radio advertising among the college students.
Research Methodology:
Data Collection:
Primary data was collected through questionnaires which were circulated among the
college students. For secondary data collection some websites were surfed and important
matter was reviewed.
Sample selection:
Survey method was adopted for data collection so the sample was selected randomly.
150 responses were collected for the study out of that 12 responses were rejected due to
insufficient data.
Hypothesis
H0: Radio advertisements are effective.
H1: Radio Advertisements are not effective.
Data Analysis:
Data analysis was done by using charts and tables.
Literature Review:
Influence of Radio Advertising:

Panagopoulos and Green, 2008, the Paper discusses on the differential effects of
advertising campaign of leading and challenger retail firms on expected sales of products
reveal that radio advertisement produce substantial arousal among the consumers and it
will help to increase in the sales of retail stores. The advertising is required in the leisure
season in the metropolitan cities.

Hubbard, 1978; Yadav, 1994, the argued in their study as the creative strategies used in
radio commercials are different and 4 advertising firms adjust their communication
strategies in response to the specific needs of different consumers. The Central Place
theory advocates that products with higher price and lower buying frequency influence
INCON - XI 2016
231
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Ongoing Research in Management & IT
E-ISSN – 2320-0065
positively the perception of consumer on the promotional communication of stores
delivered through the radio programs and outdoor advertising.
Effectiveness of Advertising on Radio Channels:
Kiran Manaral, 2001, The Advertising Club, in editorial article says that once upon a
time radio is a powerful medium of advertising in India. But now day television advertising
gives more benefits rather than radio commercials. Hence the significance of radio advertising
is getting lower. Radio in India has undergone three phases. In the mid-1990s, the government
allowed Private operators to own and operate private FM radio channels in metropolises. The
second phase saw more private FM channels and the third phase saw FM channels now in the
process of rolling out in small towns. Further information given as According to Pitch
Magazine, advertising revenues from radio reached Rs. 885 crores in 2010 when compared
with Rs. 681 crores in 2009. Radio’s share of the ad pie still is humble though, at just 3.7 per
cent, though the growth has been heartening at 30 per cent. Internationally though, the normal
share of pie that radio enjoys is between 10 and 12 percent which does indicate how far radio
needs to go in India. Currently FM radio reaches 40 million listeners the four main metros and
350 million in 91 cities and town. With 800 new stations slated in 300 towns, the reach will
definitely jump and consequently radio’s share of advertising pie.
Data Collection:
Table No. 1. Listening of Radio Advertisements
Sr. No. Gender Yes No Total
1
Male
38 45
83
2
Female 30 25
55
Total
68 70 138
Source: Field Data, 2015
Table No. 2. Frequency of Listening Radio Advertisements
Sr. No. Gender Always Sometimes Rarely By Mistake Total
1
Male
9
12
11
6
38
2
Female
Total
12
21
8
20
6
17
4
30
10
68
Source: Field Data, 2015
Table No. 3. Radio Advertisement contents / message
Sr.
No.
1
2
Gender
Male
Female
Total
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Excellent
4
8
12
Very Good
9
6
15
Good
6
8
14
Fair
14
4
18
Poor
Total
5
38
4
30
9
68
Source: Field Data, 2015
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Table No. 4. Effectiveness of Radio Advertisements
Strongly
Agree
Agree Neither Disagree
Strongly
Disagree
Total
M
F
M F M
F
M
F
M
F
M F
12
16 9
7
5
5
4
2
0
38 30
9
14 8
4
4
5
5
4
4
38 30
13
8
8
4
2
7
3
0
38 30
Radio
Advertisements
8
are more attractive
Radio
Advertisements
2 are effective to build the 11
brand
Use
of
Radio
Advertisements helps to
17
3 improve awareness about
Product or service
1
6
Source: Field Data, 2015
Table No. 5 : Purpose of Non-listening of Radio Advertisement
1
2
3
4
5
6
Purposes
Poor Delivery of Information
No Proper attention on Advertisement
More options for radio channels
Feel as disturbance in the programme
Listening only for entertainment
All the above
Total
Male
03
17
13
06
05
01
45
Female
2
9
8
5
1
0
25
Source: Field Data, 2015
Table No. 6. Radio advertising is effective
Sr. No.
1
2
Gender
Yes
No
Male
35
48
Female
21
34
Total
56
82
Source: Field Data, 2015
Total
83
55
138
Findings:
During The study it was found that the Radio advertisements are more attractive to build
brand image in the mind of the college students. It helps to improve the awareness about the
product.
Limitations of the study:
Data collection is limited to Pune City and opinions are collected only from college
students. The biased answers may be collected. Time is the significant factor in data
INCON - XI 2016
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Ongoing Research in Management & IT
E-ISSN – 2320-0065
collection. It was very difficult to collect the data from the college students. Colleges selected
from Pune city only.
Conclusion:
The Advertising on radio is a powerful medium of advertising in India. Hence it has
wide scope to advertise on radio to create a good brand image into the mind of the customer &
induce them to trial the product.
Bibliography:
1.
https://en.wikipedia.org/wiki/Akashvani_%28radio_broadcaster%29 accessed on 11th
November, 2015 at 11.00am.
2.
“What is commercial radio and how it has grown in India”, Article posted by Sunil
Saxena
in
Multimedia
on
March
8,
2014;
viewed
at
th
http://www.easymedia.in/commercial-radio-grown-india/ accessed on 11 November,
2015 at 11.31am.
3.
https://en.wikipedia.org/wiki/FM_broadcasting_in_India accessed on 11th November,
2015 at 11.10am.
4.
Panagopoulos, C and Green, D. P. 2008. Field Experiments Testing the Impact of Radio
Advertisements on Electoral Competition, American Journal of Political Science, 52:
156-168.
5
Rajagopal, “Role of Radio Advertisements as a Behavioral Driver among Urban
Consumers”, accessed research paper on 12th November, 2015 published on the
http://www.sibresearch.org/uploads/2/7/9/9/2799227/rajagopal_wp-04-2010.pdf.
6.
http://www.theadvertisingclub.net/index.php/features/editorial/3267-how-effective-isradio-advertising accessed on 13th November, 2015 at 2.30pm.
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Organic Food: A Study on Demographic Characteristics and Factors
Influencing Purchase Intentions among Consumers in Pune
Prof. Sneha Alan
Prof. Kajal Maheshwari
S.B. Patil Institute of Management, Pune
S.B. Patil Institute of Management, Pune
Sector No. 26, Near Akurdi Railway
Sector No. 26, Near Akurdi Railway
Station, Nigdi, Pune -44, (India)
Station, Nigdi, Pune -44, (India)
Kajaljuly28@gmail.com
snehaalan19@gmail.com
ABSTRACT:
This study was done to gain knowledge about consumers’ intention to purchase
organic food products and their demographic characteristics. Data were collected
through personal interaction & also send through email. A total of 451 respondents
were studied. The data obtained from the survey were analyzed using chi-square test..
Among the organic buyers majority consumers believed that organic food it is Healthy
for me & my family, Free from Preservatives (GMO,Pesticides, chemical fertilizers,
Growth Hormones)& also have more Nutrient value-(Rich in Vitamins & Minerals)
Result indicated that the intention to purchase organic products were heavily influenced
by the perception on organic product like its healthy for me & my family,safe for
environment.
Keywords: Organic Foods, Purchase Intention, Demographics, Pune
1.
Introduction
1.1 W hat is organic Farming?
Organic foodstuff is produced with a commitment to respect biological and ecological
processes. Organic agriculture is based on a holistic viewpoint that perceives nature as more
than just the separate, individual elements into which it may be split. The principles of organic
farming are found in ecology, a science concerned with the interrelationship of living
organisms and their environments. The concept of organic farming also covers economic and
social aspects of agricultural production, local as well as global.
The aim of organic farming is to support and strengthen biological processes without
recourse to synthetic fertilizers and pesticides and the genetic modification of organisms.
Hence, this method takes a mainly preventive approach to controlling weeds, pests and
diseases.
In order to ensure that organic products are indeed produced according to organic
farming principles, they, or rather the whole production and handling process from the farmer
to the consumer must be certified “organic”. By certification, a third party (an accredited
body) gives written assurance that a product labeled as organic is produced according to
recognized standards for organic farming.
1.2
Indian Domestic Market
Organic agriculture in India & Significance of organic agriculture for Indian farmers
In the Indian context, organic farming can be significant in two distinct ways:
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1.
2.
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To increase the efficiency and sustainability of production: Organic farming can help to
reduce production costs (especially where labor is cheap compared to input costs) and to
increase or stabilize yields on marginal soils. This is especially relevant for smallholders
in marginal areas where Green Revolution agriculture has lead to a depletion of soil
fertility and to high debts because of increase in input costs.
To increase product value: In areas where farmers have access to established organic
markets within the country or abroad, products can achieve a higher price compared to
the conventional market. Especially in the trend of decreasing prices for agricultural
products, this can be an important way to stabilize or even increase incomes.
2.
Objective of Study
The objective of this study is to understand intension of local consumers towards organic
food. These consumers are among those who have experience consuming or buying organic
products and those who never purchase any organic products. Specifically the study aims to:
(a) To study descriptive analysis on demographic characteristics in regard to organic food
items
(b) To understand the factors that influence purchase intention of organic food among
consumers
Hypotheses
H1: There is significant difference in importance a customer attached of frequency of
buying different organic food items
H2: There is a significant difference in the importance customer attached to the various
reasons for purchasing organic food item
3.
Literature Review
The aim of this study is to examine the model of consumer’s purchase intention towards
organic food in Indonesia. Its model presents the relationship among healthy consumption life
style, attitude toward organic food, and purchase intention of organic food. This study uses
survey data gathering from 250 mothers who have a child or children. Result indicates that
healthy consumption life style are a good predictor for attitude toward organic food,
meanwhile attitude toward organic food directly influence to purchase intention toward
organic food. (Budi Suprapto, 2012)This study attempted to gain knowledge about consumer
attitude towards organic food products. With a sample of 177 respondents the data obtained
from the survey were analyzed with chi-square test, ANOVA, and correlation analysis. Result
indicated that people do aware of what is happening to the surroundings with regards to the
environment and ecology problems and most consumers perceived that organic food product is
healthier. They portray a positive attitude towards organic food and exhibit willingness to pay
at certain amount of price. However there are still fewer facts to show whether consumers’
knowledge and awareness would influence their actual purchase intention towards organic
food. (Juhdi)
The objective of this research was to understand how demographic variables relate to
peoples decision-making concerning the purchase of organic foods in India. This study clearly
demonstrates how demographic variables, such as educational attainment, cost of organic
products, number of visits to weekly organic bazaar and economic recession affect the
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development of domestic organic markets and peoples purchasing behavior regarding organic
foods in India. Their food choices are highly affected by demographic variables. People in
India have a deep interest in organic food. The study show that even though organic food is
free of chemical pesticides and is good for the environment and consumers health, its use is
ultimately and easily affected by the demographic variables of the consumers. People are
influenced through local community markets, and most lack sources of information related to
organic food. (Hioki, 2012)
In the study by Magnusson et al. (2001) demographic differences were explored in
relation to the intention to buy organic products. The aim was to collect knowledge about
Swedish consumers’ perception of organic food. The authors studied attitudes towards buying
organic food, perceived price, perceived availability, purchase frequency, and purchase
criteria. The TPB model was used as a conceptual framework. Data were gathered by a selfadministered survey spread by e-mail to respondents. The total number of responses was
1,154. The results provided evidence that just small proportion of consumers expressed the
intention to buy organic food. Based on the data analysis, woman and respondent under 40
years more likely will buy organic product than men and older consumers. The level of
education and family size has not been found as significant factors for the intention to buy.
With regard to attitudes toward buying, again woman expressed more positive attitudes.
Furthermore, higher education and younger respondents had more positive attitudes. Limited
availability of organic products has not been found as an obstacle to purchase the products.
The majority of respondents stated importance of price of organic food that does not exceed
the price of conventional food. Almost half of the respondents often or always refrain from
purchase because of a higher price.
This paper presents the results conducted who buys the organic food items & those who
do not buy. Again, to be highlighted the objective of this paper is to gain knowledge about
consumers’ intention towards organic food products. To that consumer knowledge, perception
towards organic food, belief about organic food, availability and intention of buying organic
food were studied with a sample of 451 respondents.
4.
Research Design
Sample for the Study and the Measurement Instruments
The survey was conducted. Potential respondents were approached from the data
collected who are the regular customer of organic shop (those who are the buyers) and
structured questionnaire were filled through email, personal interaction, telephonic. The
respondents were requested to fill up the questionnaire. As a result, a total of 451
questionnaires were collected. The questionnaire was designed especially to elicit consumers’
buying pattern and their views on organic products. The respondents’ were asked on frequency
in buying organic product, shopping places, the type of organic products bought and the
reasons for buying. The items in this section were measured using 5-point Likert scale (1 is
low and 5 is high).
5.
Data Analysis
The data obtained from the survey were analysed to test the hypothesis using SPSS
package through Friedman Chi Square test.
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5.1
Demographic Analysis of the Respondents
Four Hundred Fifty one respondents participated in the survey. Majority were male
43.8% were female and 55.43% and their ages ranged between 18 to 60 years and above. Most
respondents 67.18% were married and 29.7% is unmarried and out of that 63.64 % have the
children below 18 years of age and 35.03% do not have children below 18 years of age.
5.2
Demographic Analysis of the Respondents in Organic Products Consumption
The respondents were asked to indicate their food buying behaviour related to organic
foods. With five options out of 323 respondent who are aware of organic food said 32.20 %
buys every week, 9.268% buys 2-3 times a month, 4.334% buys once a month , 31.27% said
they bought rarely (less) than a month and 22.91 % said they do not bought the organic food of
the sample.
How often do you buy organic food ?
Source: Field Data
5.3
Type of Organic Products Consumed
In order to examine the volume and type of organic products consumed, respondents
were further examined their level of organic product consumption. Their buying pattern is
examined by looking at the type and volume of products that they bought. The measurement
used was in percentage.
Frequency of buying organic food items
Research Question: Is there a difference in the importance a customer attached of
frequency of buying different organic food items
H0: There is no difference in importance a customer attached of frequency of buying
different organic food items
H1: There is significant difference in importance a customer attached of frequency of
buying different organic food items
Statistical Test: Friedman Chi Square test
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Variable & Measurement: Respondents were presented with following six option. On
how often they purchase organic food items. Each reason were measured on 5 point scale (1=
Always (90-100%), 2= Often (65-90%), 3= Sometimes (35-65%), 4=Rarely (35%), 5= Never.
Level of Significance  = 0.05
Test Statisticsa
N
233
Chi-Square 111.100
df
5
Asymp. Sig. .000
Observation: χ² (5) = 111.100, P = 0.000, N = 233
Conclusion:
Since the P value (0.000) is less than the level of significance (0.05) the null hypothesis
is rejected. Hence it is concluded there is significant difference in importance a customer
attached of frequency of buying different organic food items In order to find where the
difference lies we refer to the rank table.
Ranks
Mean
Rank
Fresh vegetables
2.76
Fresh fruits
3.31
Herbs and spices
4.03
Milk and milk products
3.87
Cereals & Pulses
3.30
Stimulants (sweets/coffee/ tea/ cocoa)
3.73
Source: Field Data
From the rank table it can be seen that Fresh vegetables has a mean rank of 2.78, Fresh
Fruits has a mean rank of 3.31, Herbs and Spices has a mean rank of 4.03, Milk and Milk
Products has a mean rank of 3.87, Cereals & Pulses has a mean rank of 3.30, Stimulants
(sweets/coffee/ tea/ cocoa) has a mean rank of 3.73
Hence from the rank table it can be concluded that the top 3 organic food items that is
frequently purchased by customers are: Herbs and Spices, Milk and milk products, Stimulants
(sweets/coffee/ tea/ cocoa)
Consumer Perception and Knowledge Related to Organic Products
Reasons for Consuming Organic
Research Question: is there difference in the importance a customer attached for the
various reasons for buying organic food item
H0: There is no difference in the importance the customer attached for the various
reasons for organic food item
H1: There is a significant difference in the importance customer attached to the various
reasons for purchasing organic food item
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Statistical Test: Friedman Chi Square test
Variable & Measurement: Respondent were presented with following seven reasons for
not purchasing organic food items. Each reason were measured on 5 point scale ( 1= Strongly
Agree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree), Level of Significance  =
0.05
Test Statisticsa
N
236
Chi-Square 251.010
df
6
Asymp. Sig. .000
Observation: χ² (6) = 251.010, P = 0.000, N = 236
Conclusion: Since the P value (0.000) is less than the level of significance (0.05) the null
hypothesis is rejected.
Hence it is concluded that there is a significant difference in the importance customer
attached to the various reasons for purchasing organic food item.
In order to find where the difference lies we refer to the rank table.
Ranks
Mean Rank
It is Healthy for me & my family
4.80
Free from Preservatives , GMO,Pesticides , chemical
4.57
fertilizers, Growth Hormones
More Nutrient value-( Rich in Vitamins & Minerals)
4.46
Safe for environment
4.39
Tastier than non organic
3.35
Provide peace of mind when I consume organic
3.15
Support farmers initiative
3.27
Source: Field Data
From the ranks table it can be seen that It is healthy for me & my family has a mean rank
of 4.80, Free from Preservatives, GMO, Pesticides , chemical fertilizers, Growth Hormones
has a mean rank of 4.57, More Nutrient value-( Rich in Vitamins & Minerals) has a mean rank
of 4.46, Safe for environment has a mean rank of 4.39, Tastier than non-organic has a mean
rank of 3.35, Provide peace of mind when I consume organic has a mean difference of 3.15,
Support farmers initiative has a mean difference of 3.27
Hence from the rank table it can be concluded that the top 4 reasons for purchasing
organic food products are It is Healthy for me & my family, Free from Preservatives (GMO,
Pesticides , chemical fertilizers, Growth Hormones), More Nutrient value-(Rich in Vitamins &
Minerals), Safe for environment,
6.
Discussions and Conclusion
In Pune, the organic food is considered at the introductory stage where many people are
not aware about it. The interest to conduct this study is to have better understanding among
Pune consumers’ choice of food products and what they perceive about organic food. Many
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studies indicated that one major factor that considered to be the barrier to organic food
consumption is its price & availability. Consumers perceived organic food contain health
benefits contribute as an important attributes in this study. Most respondent among buyers of
organic food believed that organic food is healthier compared to conventional grown food.
This is consistent with previous study (Chinnici et al., 2002; Pearson, 2002) that discovered
health and Free from Preservatives, GMO,Pesticides , chemical fertilizers, Growth Hormones
are the reasons found to be essential in food choices of organic consumers.
Given the broad range of possible factors that influences organic food decision making,
there are others that might considered as barriers to organic food consumption among Pune
instead of price. Trust is considered as the top most barrier by the respondent for not buying
organic For instance, knowledge on organic food as well as action taken by the government
either to inform or to create awareness has not reach the satisfactory level in encouraging
sustainable consumption with organic food.
Marketing Strategy
Therefore, knowing how consumer perceived organic food product by understanding the
reasons of buying would probably help the marketers of organic food to establish a proper
communication message. Hopefully the intended message would be appealing for consumers
who fall within the same category of buyers who exhibit their interest towards organic food
products. In addition, education of consumers must become one of the first objectives for
organic producers& at the same time to build the trust among customers. An important task is
to increase the consumers’ knowledge what organic products are all about and how to
differentiate it in the market place. For such reason, marketing strategies for organic food
product must be targeted towards those segments of consumers most appreciative of the
positive attributes of organic food.
REFERENCES:
[1] Budi Suprapto, T. W. (2012). Model of Consumer’s Buying Intention towards Organic
Food: A Study among Mothers in Indonesian. IPEDR , 29.
[2] Chinnici, G., D’Amico, M., & Pecorino, B. (2002). A multivariate statistical analysis on
the consumers of organic products. British Food Journal, pp. 187-199.
[3] Hioki, A. J. (2012). Organic bazaar consumers in India: A case study of the IIRD, India,
Aurangabad. Journal of Food, Agriculture & Environment, 10 (2), 103-106.
[4] Juhdi, S. N. (n.d.). Consumer’s Perception and Purchase Intentions towards Organic
Food Products: Exploring the Attitude among Malaysian Consumers.
[5] Magnusson, M. A. (2001). Attitudes towards Organic Food among Swedish Consumers.
British Food Journal, , 209-226.
[6] http://indiacurrentaffairs.org/organic-farming-in-india
[7] http://www.ecoworld.com
[8] Report by Salvador V.Garibay’ and Katke Joyti –Research Institute of Organic
Agriculture (FIBL) and ACNielsen ORG-MARG
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“The Impact Of Service Quality Dimensions On Customer Satisfaction- A
Study Of Mc.Donalds
Prof. R. Nageswar Rao
Affiliation: OSD,Osmania University
Mailing address: Hyderabad
E-mail Address (s): nagsuj123@gmail.com
Vandana.S
Affiliation: Principal,
Mailing address: Vidya Daini college of
Management studies,Hyderabad.
E-mail Address (s):
vandana_samba20@rediffmail.com
Vani.H
Affiliation: Research Scholar,
Osmania University
Mailing address: C/O:R.V.Indira,
1-9-312/6/b/c-10,Vijay pratap apts,
Achyuth reddymarg, Hyderabad-500036
E-mail Address (s): vanikotla16@gmail.com
Prof.R.Nageswar
Rao1/Dr.Vandana.S2/Vani.H3
OSD,OU/Principal/Research Scholar.
ABSTRACT:
Across all service sectors, either private or public, the issue of service quality
remains a critical one as businesses strive to maintain a comparative advantage in the
marketplace. Thus, the primary goal of this article is to analyze the effects of service
quality dimensions on Customer Satisfaction in McDonalds, Hyderabad. The present
study strives to develop a valid and reliable instrument to measure customer perceived
service quality. This study was used to gather data relevant to the proposed hypothesis
from a convenience sample of 100 customers of McDonalds, and valid questionnaires
were collected and used for analysis. Through a survey of 100 regular customers, a six
dimensional service quality instrument is revealed, which is empirically tested for
reliability. The findings of this study shows the direct significant impact of service
quality on customer satisfaction, and this effect had appeared through three dimensions
(responsiveness, assurance, convenience) and there is no direct effect of other
dimensions on customer satisfaction.
Keywords: Service Quality Dimensions, Customer Satisfaction, loyalty
Introduction
Service quality is a concept that has attracted considerable interest and debate in the
marketing literature because of the difficulties in both defining it and measuring it with no
overall consensus emerging on either. One that is commonly used defines service quality as
the ability of the organization to meet or exceed customer expectations. It is the result of the
comparison that customers make between their expectations about a service and their
perception of the way the service has been performed (8). If expectations are greater than
performance, then perceived quality is less than satisfactory and hence customer
dissatisfaction occurs (8).
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The importance of Customer satisfaction as a core concept in marketing has led to
numerous studies over past decades. The literature supports that satisfied customers are willing
to buy more services or products, recommend them to others, and less price sensitive. Hence,
satisfaction is an essential factor related to company's future profit by increasing the customer
retention rate.
Service quality and customer satisfaction are considered as significant issues in most
service industries. High and unique quality is a way to win customers and make them loyal for
a long time. Management literature proposes many concepts and approaches concerning how
to deal with service quality. There are also many different concepts how the notion “service
quality” should be understood (9).
Dimensions of service quality
The SERVQUAL scale was developed by Parasuraman et al. in 1985, and refined in
1988, 1991 and 1994 which would be used to measure service quality across a broad range of
service categories. Within the SERVQUAL model, service quality is defined as the gap
between customer perceptions of what happened during the service transaction and his
expectations of how the service transaction should have been performed. Formerly 10
dimensions of service quality were proposed (reliability, responsiveness, competence, access,
courtesy, communication, credibility, security, understanding the consumer, and tangibles).
Later these were reduced to five (reliability, responsiveness, empathy, assurances and
tangibles). The later model of five quality dimensions (RATER) considered the following
issues:

R: Reliability: Ability to perform the promised service dependably and accurately.

A: Assurance: Ability, knowledge and politeness of employees to inspire trust and
confidence

T: Tangibles: Physical facilities, equipment and appearance of employees

E: Empathy: Individualized, caring attention that the firm provides to its customers

R: Responsiveness: Willingness to help customers and provide timely service.
Review Of Literature
Service quality has been widely discussed in service management literature [11, 3].
Many researchers have tried to define the construct. Generally, they have agreed that service
quality should be studied by using customer perspective [3,4,5]. Given this, researchers
propose that service quality is customer evaluation on the superiority of service performance
provided by a service company [13]. More clearly, Zeithaml [13] explained that service
quality is “the consumer's judgment about a [service]’s overall excellence or superiority”.
Zeithaml [13]’s definition on service quality is the widely quoted definition of service quality
[28, 29]. Referring to the previous explanation, it can be stated that service quality is customer
evaluation on the superiority of service performance provided by a service company [13].
Thus, fast food restaurant service quality is fast food restaurant customer evaluation on the
superiority of the services provided by fast food restaurant [8].
Customer satisfaction is the internal feelings of every individual which may be
satisfaction or dissatisfaction resulting from the assessment of services provided to an
individual in context to customer’s anticipation by an organization (6). Service provides are
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continuously trying to improve the service just to satisfy their customer because higher
customer satisfaction will leads towards customer loyalty.
The most important concept of customer satisfaction is accepted all around the world is
the expectancy disconfirmation theory (1). This theory was presented by Oliver in 1980, he
presented that satisfaction stage is the resultant of Distinction between anticipated and
supposed performance. Satisfaction will be encouraging when the actual level of services or
products is better than the anticipated (positive disconfirmation), whereas (negative
disconfirmation) when the product or services level is lower than expected (6).
Consumer satisfaction research began in the marketing field in the 1970s and is currently
based on the “disconfirmation of expectations paradigm” (2). This paradigm says consumer
brand evaluation involves comparing actual performance with some standard. Three outcomes
are likely:
(1) Confirmation, where performance matches standards, leading to neutral feelings.
(2) Positive disconfirmation, where performance is deemed better than standard, resulting in
satisfaction.
(3) Negative disconfirmation, where performance is deemed worse than standard, resulting
in dissatisfaction.
Therefore, it is commonly accepted that to determine satisfaction or dissatisfaction,
comparisons must be made between customers’ expectations and the perceived performance of
the product or service (Yi ,1990).
This leads to following hypothesis (based on SERVPERF):
H1: Tangibles is positively associated with Customer Satisfaction.
H2: Reliability is positively associated with Customer Satisfaction.
H3: Responsiveness is positively associated with Customer Satisfaction.
H4: Assurance is positively associated with Customer Satisfaction.
H5: Empathy is positively associated with Customer Satisfaction.
H6: Convenience is positively associated with Customer Satisfaction.
Method of Data Obtainment
Data was collected from 100 customers who regularly vistit McDonalds and the study
restricted to Hyderabad only. Statements of the SERVQUAL instrument were modified
(Parasuramanet al., 1991;Sharma and Ojha 2004; Negi, 2009) to best fit in the context. The
study survey consisted of two sections: service quality dimensions, measured using 34 items;
customer satisfaction, measured using three items. Respondents are asked to indicate their
agreement level of each item of the sections on the five-point Likert scale anchored by
‟strongly agree (=1)” to ‟strongly disagree (=5)”.
Table:1 Reliability Analysis
S.No Variable
Cronbach’s Alpha No Of Items In Scale
1
Loyalty
0.718
5
2
Customer Satisfaction
0.769
3
3
Tangibles
0.602
5
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S.No Variable
4
Reliability
5
Assurance
6
Empathy
7
Complaint Handling
8
Convenience
9
Responsiveness
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Cronbach’s Alpha No Of Items In Scale
0.637
7
0.696
5
0.610
4
0.703
2
0.687
3
0.678
5
Theoretical Model Tested
Table:2 : Results Of The Regression Analyis
Paths
Beta T-Value P-Value Result
0.102 .863
0.391
Not Supported
Tangibles Customer Sfaction
Reliability
Customer Satisfaction
0.324 2.590
0.011
Supported
0.088 0.819
0.415
Not Supported
Responsiveness-  Customer Satisfaction
0.047
Supported
Assurance

Customer Satisfaction 0.289 2.01
0.10 0.098
0.922
Not Supported
Empathy
 Customer Satisfaction
0.286 2.17
0.033
Supported
Convenience  Customer Satisfaction
Reliability showed a positive effect on Customer Satisfaction (β=0.324, p <0.001)
Therefore, H2 confirmed (Table II). In addition Assurance had a positive effect on Customer
Satisfaction (β =0.289, p <0.001) Therefore, H4 was supported. Also convenience had positive
effect on Customer Satisfaction (β=0.286, p <0.01) Therefore, H6 was supported.
Conclusions and Implications
The resulting instrument is devised after a review of the literature and exploratory
investigations followed by a series of acceptable validation procedures. On the basis of the
findings revealed during the exploratory investigations, complaint handling and convenience
dimensions were added in the original SERVQUAL scale.
Further, the study highlighted the relative importance of service quality attributes, an
attempt was made to identify the contribution of each service quality dimensions in predicting
overall customer satisfaction. Reliability scored the highest (β=0.324, p<0.001) followed by
the dimensions of Assurance (β=0.289, p<0.001) and Convenience (β=0.286, p<0.01).
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Findings of this study provide helpful guidelines for service industry to understand key
drivers of customer satisfaction. Looking at each individual dimension, Customer perceived
Reliability at the first important place in predicting overall customer satisfaction. For this,
service providers need to pay attention on providing promised service accurately.
Additionally, Assurance appeared at the second important place in predicting overall customer
satisfaction, it is suggested that the employees should resolve the customer's complaints timely
and that the customer's queries are taken seriously. This implies that company should invest in
empowering the contact employees and providing them with adequate resources so that they
can take prompt actions to customer queries. For this, they need to ensure that the employees
are able to make important decisions regarding customers' requirements at their level, thereby
providing adequate responsiveness. Additionally, Convenience factor also appeared at the
third important place in predicting overall customer satisfaction, thus, the service providers
need to focus on providing the outlets at different locations to meet the customer expectations.
Limitation And Future Research
This research focused on service quality and its effect on customer satisfaction.
However, the research did not study the association between customer satisfaction and
retention of customers. The results coming from the service industry might not be applicable
to other service businesses. In other service fields, building a broader understanding of the
effect of the factors related to customer satisfaction should create new possibilities in terms of
understanding how to increase satisfaction.
REFERENCES
[1] Barsky, J.D. (1992), “Customer Satisfaction in the Hotel Industry: Meaning and
Measurement”. Hospitality Research Journal , Vol. 16(1), pp. 51-73
[2] Cadotte, E., Woodruff, R. &Jenkins, R. (1987), “Expectations and norms in models of
consumer satisfaction”, Journal of Marketing Research, Vol. 24, No. 3, pp. 305-14.
[3] Clemes, M. D., Gan, C., Kao, T, H., and Choong M. An Empirical Analysis of Customer
Satisfaction in International Air Travel. Innovative Marketing 2008; 4: 50-62
[4] LeBlanc, G. and Nguyen, N. Searching for excellence in business education: an
exploratory study of customer impressions of service quality.International Journal of
Educational Management 1997; 11(2): 72 – 79
[5] Nagata, H., Satoh, Y., Gerrard, S., and Kytömäki, P. The dimensions that construct the
evaluation of service quality in academic libraries. Performance Measurement and
Metrics2011; 5 (2): 53 – 65.
[6] Oliver, R. L. (1980), “A cognitive model of the antecedents and consequences of
satisfaction decisions”.Journal of Marketing Research. Vol. 17, pp. 460-469.
[7] Park, J.W., Robertson, R., and Wu, C.L. Investigating the Effects of Airline Service
Quality on Airline Image and Passengers’ Future Behavioural Intentions: Findings from
australian international air passengers.The Journal of Tourism Studies2005; 16(1): 2 –11
[8] Parasuram, A, Ziethaml, V.A., and Berry, L.L, “A Conceptual Model of Service Quality
and its Implication for Future Research”, Journal of Marketing, Vol. 49, pp. 41-50, 1985.
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[9]
[10]
[11]
[12]
[13]
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Salami, C.G.E. and Ajobo, R.T. Consumer Perceptions about Fast Food Restaurants in
Asaba. Global Journal of Management and Business Research 2012; 12(1): 75-81
Urban W “Service quality gaps and their role in service enterprises development
Yi, Y. (1990), “A critical review of consumer satisfaction”,in Zeithaml, V.A. (Ed.),
Review of Marketing 1990, American Marketing Association, Chicago, IL, pp. 68-123.
Yusoff, W.Z.W., Ismail, M. and Ali, A.S. Understanding the Services Provider
Perspective towards Better Service Quality in Local Authorities.Journal of Facilities
Management 2010; 8 (3): 226-230.
. Zeithaml, V.A. Consumer Perceptions of Price, Quality and Value: A Means and Model
and Synthesis of Evidence. Journal of Marketing 1988; 52: 2-22
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In – Store Advertising Audience Measurement Principals
Ajay Sankhe,
Mumbai
PHD Student – Marketing
Objective
Audience Delivery measure is being developed to provide the industry with a planning
and tracking tool similar to those available for other measured media, such as print and
broadcast.
Background
No doubt measurement will provided new insights, both positive and challenging as to
the placement and value of in store advertising.
Executive Summary
The in-store Advertising industry has begun the process of becoming a measured
medium. The independent availability of in-store advertising measurement is expected
to significantly increase the productivity and effectiveness of marketer’s and retailer’s
spending. In addition, in-store may now be better footing to earn larger share of the media
budget if advertisers find these results compelling.
The paper explains the measurement methodology for:

Weekly Reach (With an Opportunity To See-OTS).

Frequency.

Impressions/Gross Rating Points (GRP).

Cost Per Thousand Impressions (CPM).
Early on the research faced the question of media vehicle. In traditional media the
vehicle might be a television program, or a magazine issue, not the ad itself. For in-store
advertising, we concluded the store is the vehicle, so an OTS is an exposure to the store, not
necessarily the in-store advertising itself. This concept and the resulting measures for the
supermarket and c-store channel are explored using chain specific data and channel- wide
estimates.
In the meantime, this progress allows marketers and POP producers to allow in-store
inclusion in the planning and selection process with other ‘traditional’ forms of media and to
apply the same performance yardsticks.
Approach
While none of the current media measures were found to fit “as is,” the principles that
underline them are readily adapted to a new in-store audience measurement system. At their
core, the measures for in-store like other media need to provide a measure of the consumer’s
“Opportunity To See” the advertising. This concept has been so ingrained in the media world
that it is short-handed: OTS. As the term OTS implies, audience measures don’t guarantee an
attentive consumer carefully absorbing the ad message; rather it implies open eyes (or ears) in
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front of the media vehicle – an opportunity. In traditional media the vehicle might be a
television program, or a magazine issue – not the
Ad itself. For in-store advertising today, we consider the store to be the vehicle, so an
OTS is an exposure to the store, not necessarily the ad itself. We anticipate that, as POP ad
exposure measurement evolves, the vehicle exposure measurement may be refined to an area
of the store in proximity to the display through the use of shopper basket analyses or PersonalPeople-Meter (PPM) panels. Starting with the basic exposure measure we can build a small
number of key media planning and buying measures:

Exposure : One person with an OTS, also called an Impression.

Audience: The total exposure or impressions for a specific media vehicle during a
defined time-period, e.g., store-week.

Gross Impressions: The sum of all impressions for a campaign or specified portion of a
campaign.

Rating: Audience as a percent of the targets population

Gross Rating Points, GRPs’. Gross Impressions as a percent of the relevant populations;
also the sum of the rating points for a campaign of specified portion of a campaign

Target Rating Points, TRPs: Target audience Impressions as a percent of the relevant
target population.

Reach: The net percent of the target population with an “opportunity to see” the
advertising (audience reach) in a given timeframe.

Frequency of message delivery among those reached – Often expressed as an average,
but could be a frequency distribution of exposure levels.

Cost per thousand, CPM: The cost of a vehicle, or campaign divided by the total
impressions, in thousands – the basic method of pricing media.
Targeting media directly to shoppers [Shoppers vs Users] is actually more effective, but
is different from the traditional methods with which media people are familiar. Over the past
few years, most media people have adopted Regency Theory, which states that the closer the
ad exposure is to the purchase occasion, the more effective it will be. This theory lends
support to in-store advertising.
In-store is more analogous to broadcast or radio in that consumers “tune-in” for the
content. In case of the store the content draw is to purchase products. In fact, in-store
advertising, arguably, can be said to have a tighter connection between content and
commercial because they relate to a specified product or service in the store.
Definitions & Data Sources
Potential Weekly Reach is defined as the maximum reach achievable by an in-store
message. The maximum assumes 100% store penetration.
Actual Weekly Reach is defined as Potential Reach adjusted to reflect the actual store
penetration level achieved. This reflects the fact that not every store will execute the
campaign. The execution level, or proof of performance, is a critical element in this in- store
audience measurement methodology.
To develop the Potential Reach measure for in-store, two approaches were developed.
The first approach (Approach A) assumes the availability of consumer – based information,
while the second (Approach B) uses store measures and reasonable averages and
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approximations. While Approach A is the more accurate, and therefore preferred, the data are
not always available.
Potential Weekly Reach – Approach A
To derive the number of household that shop in a store or chain in a week (or an average
week) several sources can be used including:

retailer tracking

household panel services

diary panel services

custom data collection
In addition, depending upon the unit of measure in the available data the following
measures may also be needed on a chain – or channel – specific basis: average number of
target person shopping on a trip (in the example below we people
per
transaction
as
“adults”). estimated number of trips per week per person.
The weekly person with an opportunity- to- see calculation is shown below using two
chains from the Mumbai market.
Approach A – Supermarket Examples
Chain A Chain B
Unique household trips (Avg./store/week) (1) 5,437 8,161
times Ave. no. of adults per transaction (2) 1.25 1.25
divided by Estimated number of trips per week (2) 1.5 1.50
equals Weekly Potential Reach per store 4,531 6,801
times Store count 122 160
equals Weekly Potential Reach for chain 552,782 1,088,160
divided by Population = Share of market 21.4% 42.3%
The results show that in-store advertising in all 122 Chain A store creates a potential
reach of 552, 782 shoppers in a week or 21.4% of the market, while Chain B’s 160 stores
creates a potential for almost double (1,088,160) or 42.3% of the market. These two chains
represent as much as 63% of the weekly potential reach, yet only 53% of the ACV( All
Commodity Volume ), reinforcing their importance in delivering in-store ad messages.
In practice, the weekly potential reach of the two chains in our example should not be
added together. The duplicated reach between them should be deducted to obtain the net reach
of the two – chain combination. Ad other chains are added to the schedule, the duplication
between their reach and the previously combined chains will also have to be factored out. This
can be achieved through panel analysis or use of industry averages based on sampling of
consumers. In the absence of market of-specific data a reasonable estimate should be used.
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Potential Weekly Reach – Approach B
If the needed household data are not available, Approach B provides a close
approximation to the preferred approach.
Approach B uses the estimated weekly store All Commodity Volume (total store sales)
and average transaction size to calculate the number of transactions. Once transactions are
computed, the adjustments for people per transaction and trip per week described above are
used to achieve the same Weekly Reach with an opportunity -to-see. An example is shown
below.
Approach B
Chain C
Rs. 61,58,400 Store weekly ACV
divided by Rs. 800 Transaction size
equals 7,692 Avg. weekly trips – duplicated
times (est) 1.25 Adults per transaction
divided by (est) 1.50 Trips per week
equals 6,410 Weekly Potential Reach per store
During the POPAI ( Point Of Purchase Association of India) Convenience channel
study, participating retailers provided sales, transaction and transaction size information.
Applying Approach B methodology provides an average weekly potential reach per store of
3,910 adults. There chains and industry average information are provided in Table 2.
Actual Reach
Most in-store media planning and purchasing today involves an estimation of actual
execution. Monitoring store-level execution ensures placement and provides the data required
to adjust Potential Reach to Actual Reach:

actual store penetration (execution).

display condition (damaged, obscured, fully functional, etc.)

proximity of the POP to the product.
The actual store penetration is crucial to developing an accurate actual or realized
reach.
Today , store penetration levels can only be measured with sufficient accuracy through
visual inspection of a store to confirm in-store ad placement . These store audits, conducted
routinely, randomly or during key weeks (sweeps concept) should be performed by a variety
of third-party services who are independent from those using the audit results.
During the Supermarket Study, sponsor – selected brands from eight categories were
audited weekly for 20 consecutive weeks by IRI. The same study is comprehended and then
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local Indian numbers are studied with the help of studies released by Indian Retail Forum and
Retailer Association of India Across 10 brands in one of thecategories audited, manufacturer
pre-printed signage was present on 40% of the displays in Chain A and 50% in Chain B.
Actual Reach
Chain A Chain B
weekly Potential Reach - People 552,782 1,088,160
- % of market 21.4% 42.3%
times Audited execution level (% of store weeks) (1) 40% 50%
[what about % ACV for this instead of
store?]
Equals Avg. Weekly Actual Reach OTS – People 221,113 435,264
- % of market 8.6% 21.2%
(1)
Source : IRI International audits ( Customised to Indian Retail Forum / Retailer
Association of India) numbers. The resulting Actual Weekly Reach tells a revealing
story about audience delivery. Chain B with 30% more stores than Chain A (160 vs.
122) delivers 2.5 times the actual weekly reach. In addition, marketers can now evaluate
the cost to reach Chain B’s 435,264 people or 21.2% of the market in a manner similar
to broadcast and print.
Frequency
According to the RAI ( Retailer Institute Of India ), the average shopper makes 1.5
trips to Supermarkets in week. The comparable number for Convenience stores is 1.7 trips per
week according to Indian Retail Forum ( IRF). In the absence of market-store-type and chainspecific data, this provides a reasonable estimate.
Rating Points
Once reach and frequency are developed, a Gross Rating Points measure can be easily
computed. To distinguish between in-store and out-of-store media, a separate name has
been developed: In-store Rating Points (IRP’s). IRP’ s are defined as reach (%) times
frequency. Using the reach example earlier, assume
the following in-store conditions:
Chain A Chain B
Pre-printed sign Pre-printed
In-store advertising vehicles & standee sign
Length of placement 2 weeks 1 weeks
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Reach for the event : week 1 week 2 week 1
Actual Execution (% of stores) 40% 40% 50%
Reach 8.6 8.6 15
Frequency 1.5 1.5
IRP’s 12.9 12.9 22.5
2 week total IRP’s 25.8 22.5
Over the two weeks, each chain generated roughly 25 IRP’s but most likely at different
costs. Marketers and retailers can use IRP’s to value the advertising audience delivery and
judge the respective payouts (Table 4 providers a calculation worksheet).
Cost per Thousand impressions (CPM)
A sampling of in-store advertising vehicle costs was fathered for this analysis from
sponsors of the In -store Advertising Supermarket Study in early 2001. No representation is
being made as to the representative nature of these costs for the industry at large. Rather they
are used as examples to demonstrate the calculations and make comparisons
to
other
media CPM.
CPM = POP cost per event (divided by)
Audience (in 1000’s)
The POP cost per event includes the cost of POP material, any specific ad placement
fees, and the labor cost for setting up the material in – store for all the stores with placement.
The audience, also known as reach, represents the actual number of people (in a week) who
have the opportunity-to-see the material.
Carrying forward the example from the Reliance Retail / Big Bazar chains above, the
CPM for each Chain and their specific execution can be calculated, as shown below.
CPM Calculations
Chain A Chain B
Pop Cost Total stores 122 160
times % with placement 40% 50%
equals Stores with POP material 49 80
times POP cost per store (1) 27 15
equals Total Cost Rs.1,323 Rs.1,200
Audience Week 1 221,113 435.264
Week 2 221,113 ----_____
442,226 436,264
CPM = POP COST per event ______ Rs.2.99 Rs.2.75
Audience (in thousands)
(1)
Include POP material cost at store level, ad placement fees, and labor to setup in – store.
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Once CPM measures are calculated, in – store CPM can be compared to other media.
Application of Audience Delivery Measures
1.
In store Advertsing can now be evaluated and planned with the same discipline afforded
print and broadcast. The methodology outlined in this paper will provide reasonable
audience estimates, on par with traditional media
2.
Marketers will be able to include in store advertising vehicles as a part of the media
planning process. Marketers and Retailers will both be able to judge the reach of In store
activities along with the cost of delivering that reach. These measures will also be part of
retail execution.
3.
When armed with independent statistically valid evidence of the sales response from a
particular combination of POP Materials , marketers , sales forces and retailers will have
compelling reasons to focus on execution and measurement – to achieve the maximum
potential incremental sales , fully leverage both the promotional event or product
placement and leverage the POP ( Point Of Purchase ) expenditure.
4.
This research can enhance market’s knowledge , enhance the quality of In store
advertising and increase the value of the medium.
5.
In store advertising will now not only be measured , but will set the standard for
planning and tracking the link between audience delivery and short term sales response.
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The Role Of Internet In Tourism Marketing
By- Shripad Bapat
Asst. Prof.IMCOST, Thane
Email- bapatsk@gmail.com
Sudarshan Kale
Asst. Prof.IMCOST, Thane
Email- bapatsk@gmail.com
Shilpa Kulkarni
Asst. Prof.IMCOST, Thane
Email -shilpsunil@gmail.com
Abstract
Tourism is the one of the world's largest industry whose growth, economic
significance and potential are phenomenal across the globe. The increasing
competitiveness in the global tourism market encourages tourism operators to
investment more in promotion, resources, knowledge and quality in order to achieve
satisfactory growth. Therefore, it is extremely important to be in touch with the latest
technological trends and have the knowledge required to effectively respond to the
challenges of global competition. The importance of Internet in tourism sector is
increasing day by day. Internet is useful in acquiring information and purchase of
tourism products and services. In this paper, the changes in tourism industry caused by
the introduction of Internet technology and advantages and disadvantages of using the
Internet in tourism are analyzed. Organizational information systems and the Internet
have resulted in new ways and methods of conducting business.The present paper have
been written with the extensive research on contemporaneous data, websites on tourism
related aspects. There are certain challenges, reservations and issues related the access,
adoption, growth, and implementation of the online technology in tourism. However, it’s
very much in our hands to overcome the weaknesses by making optimum use of the
technology.
Keywords: Internet, Tourism industry, Global trends, Tourism marketing
“The Role Of Internet In Tourism Marketing”
Introduction:
The World Wide Web an Internet based technology has changed the dimensions of the
entire business world across the globe. The major limitations in traditional business methods
have been suddenly overcome. World has closer providing ample choice of products and
services to the consumers. The distance and time barriers are no more the hindrances for
anybody to opt services as desired from anywhere anytime. Internet has also served as a major
source of information for planning, coordinating and organizing. Communication has become
simpler with the advent of technology and hence people find it easier to accomplish what they
desire with effective use of online services. On the other hand businesses find it beneficial as
the Internet comes handy right from the procurement of resources to marketing and smarter
delivery of goods and services to the customers. This has boosted customer satisfaction and
multiplied the reorders to businesses from loyal customers. Rather it would not be an
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exaggeration if one would say Internet is a real boon to businesses of the era. It is providing an
array of advantages indeed.
When it comes to the service industry, few things need to be well understood. It is that
characteristics of the services those differentiate them from the products those need to be
focused upon by the service providers before leaping in to the business. Services are
characterized by following –
1. Services are Perishable
2. Services have fluctuating Demand
3. Intangibility
4. Inseparability
5. Heterogeneity
6. Pricing of Services
7. Service quality is not statistically measurable.
(A)
Tourism Industry:
Tourism is travel for pleasure; also the theory and practice of touring, the business of
attracting, accommodating, and entertaining tourists, and the business of operating
tours. Tourism may be international, or within the traveler's country. The World Tourism
Organization defines tourism more generally, in terms which go "beyond the common
perception of tourism as being limited to holiday activity only ", as people "traveling to and
staying in places outside their usual environment for not more than one consecutive year for
leisure, business and other purposes".
Looking at the above definitions it becomes obvious that the tour operators are involved
in a serious business of selling and fulfilling dreams of the ever busy host of consumers who
prefer moving around the globe for pleasure and refreshment. Tourism has far more evolved in
various dimensions nowadays and can be further classified in categories like=
1.
Pleasure Tours
2.
Business Tours
3.
Adventure Tours
4.
Medical Tours
5.
Pilgrimage Tours
6.
Educational Tours
…and many more.
Tourism further can be domestic or international, and international tourism has both
incoming and outgoing implications on a country's balance of payments. Today, tourism is a
major source of income for many countries, and affects the economy of both the source and
host countries, in some cases being of vital importance.
C)
Relation of Tourism With Other Industries:
Tourism is influenced by various other business sectors like the Hotel and Food
Industry, Travel Agent Businesses, Transportation Modes, Hospitality and Resort Sectors,
Marketing and Advertising Agencies etc.
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Tourist when are on long journeys cannot carry more of perishable food products and are
dependent on local food sources making the Hotel Industry grow. Hotels provide dual
facilities for tourists with regards to lodging and boarding.
Travel becomes possible when proper bookings of transport facilities are pre-organized.
Reserving flight, train or bus tickets for tourists is a biggest business filed by travel agents and
has no match when it comes to dependency of tourists.
The Airways, Waterways and Roadways all play significant role in tourism as they
decide the convenience factor, time spent in travel and monetary budgets of tourists. The
transport mode choice of the tourist is one of the key components in customizing tours for
various destinations.
Resorts and places like Entertainment Parks, Water Kingdoms and Public-Parks are
tightly engrossed with tourism as they solely exist with an aim to attract tourists in huge
numbers.
Tourism Marketing and Advertising focuses on understanding tourist expectations and
aligning tour packages to suit their needs.
Tourism development in a nation is highly sensitive to the job opportunities and
prospects for aspirants in all these areas. The economy of the nation flourishes when citizens
are encouraged to travel and foreigners are attracted to the nation for touring and extensive
stays. It depends on the attractiveness of the destination. Here is where Tourism Marketing
plays a significant role.
D) Role of Marketing in Tourism:
All 7 Ps of the Marketing Mix are actively considered while marketing is effectively
implemented for tourism business.
Following are the key roles of Tourism Marketing:
1.
Tourist when plan their travel programs are basically influenced by what they review
from the early experiences of other tourists. Online reviews are now-a-days popularly
analyzed before destination for tour is decided.
2.
Advertisements done by tour operators attract tourists to select their general or
customized packages for different tours.
3.
Tour Operators can customize tours for individuals or groups based upon their
feedbacks.
4.
Countries are promoting locations for developing tourism based businesses which in turn
boosts the national economy.
5.
Customer satisfaction is ensured by providing quick and required services for the tourists
based on the tourist expectation study.
6.
Segments of tourists based on their demographic factors can be analyzed while planning
and arranging tours for different groups and promoting and targeting specialized tours
like Honeymoon packages, Senior Citizen packages, Ladies Special tours etc. by
different tour operators.
Tourism marketing is different because the customer purchases a series of services, but
is left with very little concrete value at the completion of his trip. As a result, the marketing
initiatives have to emphasize the value of the memories, make the collection of services easily
accessible and add value through additional programming and other factors. A key challenge
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is to convince potential customers that the item they are purchasing provides good value for
the price, and that the services will be as described and expected. The eight P's of marketing
tourism summarize the special approach that is required. Many small businesses market
tourism products and employ these marketing strategies.

Product - The product is the collection of services that have features and benefits.
Standard features and benefits include the normal amenities of a hotel room, for
example. Good marketing adds special features, such as free breakfasts or free Internet.

Price - The price has to match the product, but good marketing makes the price seem
more attractive. The operator can either add features to the product and keep the price
the same or give a discount for the same features.

Promotion - The promotion gives details of the product and the price. The key
characteristics of the promotion are the method of communicating the information, the
content of the promotion and the cost to the operator. The promotion has a target market,
and the method and content of the promotion has to appeal to the people who it reaches.
The price the members of the target market are willing to pay has to cover the cost of the
promotion.

Place - Place refers to the location where the customer buys the collection of services.
Ideally, the operator who sends out the promotion uses it to encourage the potential
customer to visit the operator's location and complete the purchase. With the
convenience of online payments, the operator may find that the best strategy is to direct
potential customers to an attractive website where they can complete the purchase.

People - Since the product is a collection of services, the people who provide the
services are a key to the success of the transaction. Operators must have top-level
service to initially complete the sale and to encourage repeat customers.

Planning - The key service component of the tourism experience is planning. The
customer expects that the experience will correspond closely to what he purchased. The
only way to ensure that kind of correspondence is to execute according to detailed plans,
and have contingency planning in place for problems.

Programming - One way to add value to the standard product and to distinguish a
particular offering from competitors is to offer exclusive programming. Customers will
purchase a product that caters to their particular interests. Special programming can
address such preferences and draw in additional customers.

Physical Evidence - If possible, the provision of physical evidence that the customer
experienced the particular tourism product can help sales. Providing professional
photographs of the customers at key events or the supply of branded products are
effective strategies for promoting particular tourism products.
E)
Role Of Internet In Tourism Marketing:
Internet has changed the entire dimensions of the business world. The traditional offline
businesses have changed to online mode and e-businesses have now been more successful.
Every function in a business is being automated and interlinked. This has been possible
through the wide spread Internet connectivity. Even rural areas of the nations across the globe
are now accessible just because of the network that strongly resides as backbone of any online
business.
Internet plays significant role in following areas of tourism marketing INCON - XI 2016
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1.
Tour Planning (Product) through Marketing Plan –
Tourism is not lagging behind in the effective utilization of Internet. The service
offerings those tourists are looking for are not mere one time tour packages but memories for
life time. Tourists cherish these experiences for years ahead and hence making the tours
memorable is the real challenging task. Right from this realization comes into picture the
phase of Tour Planning and which is backed by a sound Marketing Plan. Every marketing
effort should begin with a plan, and tourism marketing is no different. The marketing plan is
your road map and details the attractions in your area. It forces you to set a budget on your
promotional spending. At the end of each tourism season, you can use your marketing plan to
set goals and make changes for next year. For example, if revenue at one attraction did not
meet expectations, perhaps it needs product development -- some upgrades to make it more
appealing to visitors -- or better advertising. Internet comes handy here for the marketers to
understand the nerve of their customers i.e. tourist. They can resort to online websites where
they can promote the tour destinations, tour packages and expect tourists to register their
choice or preference. Based on the information collected the tour plan can be ready that
ensures best satisfaction.
2.)
Deciding the Pricing (Tour Budget) –
With the Online bookings lot of cost saving is ensured to provide competitive prices.
Tour Operators can provide best prices by having travel agents working in synchronization
with the transport industry. For eg. Airlines may offer discounted rates to avoid their seats
going empty in slack seasons.
3.)
Promotion (Tour publicity) –
The most significant aspect of promotions is market reach. Internet ensures that
maximum viewers get information about the tourism destinations those are attractions for the
tourists at a single mouse click.
4.)
Place (Locations for travel) –
In tourism marketing Place indicates the location across the globe that the tourist may
prefer to travel. Internet provides picturesque views for various exotic destinations thus
providing the tourists choice of a number of places to plan their tours.
5.)
People (Tourists and Tour Operators) –
Internet is best communication channel to bring together the tourists and tour operators
on a common platform. It is always difficult to judge an intangible aspect like a feel of service,
experience and courtesy. To overcome this difficulty a tourist can read reviews about the
facilities and services available at unknown destinations before they plan. The convenience
that they obtain influences their decisions. The tour operators find it useful as online bookings,
online money transfer and even online feedback registration provides them end to end
convenience.
6.)
Planning (Experience) –
To experience what one has imagined or desired requires a sound plan and a perfect
execution. Internet helps tour operators to provide what is committed through proper planning
that will ensure avoiding problems like over booking.
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7.)
Programming (Differentiation) –
Any service can attract the consumer if it introduces an edge over the consumer
expectations. Internet helps tour operators to provide this differentiation through features like
quick and confirmed reservations, easy payment modes, removal of time barriers etc.
8.)
Physical Evidence (Packages) –
Internet provides for a trust relation between tour operators and tourists as it helps
overcome the distance barrier between tourist and tour locations selected. Through various
photographs and informative articles shared on Internet the tourists are attracted to
destinations they have never visited earlier.
F)
Conclusion:
Internet acts as a bridge between demand and supply in the tourism industry. Internet
helps tour operators in advertising and promoting their services, planning and marketing their
tours to a maximum reach while ensuring that it records the expectations of consumers of the
service. Internet helps development of the tourism industry through critical analysis of tourist
requirements and selling them the most appropriate tour for a memorable experience.
F)





REFERENCES:
https://en.wikipedia.org/wiki/Tourism
http://smallbusiness.chron.com/tourism-marketing-56473.html
http://smallbusiness.chron.com/eight-ps-marketing-tourism-42140.html
http://dialnet.unirioja.es/descarga/articulo/4909355.pdf
http://google.co.in
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To Study The Relationship Between Monthly Income (Rs.)And
Amountspent By Customers On Online Purchase
Ms. Shilpa Kulkarni
Assistant Professor (IMCOST, Thane)
shilpsunil@gmail.com
Mr. Omkar Vaidya
Student, MMS (Marketing), IMCOST
omkar.vaidya4@gmail.com
Ms. Kripali Danani
Student, MMS (Human Resource), IMCOST
E-mail:- kripalid29@gmail.com
ABSTRACT
Recently the diffusion of internet is increased among the customers. Customers are
using it for the purchase of Household goods, electronic gadgets and Reservations etc.
This research paper will attempt to Study the relationship between Monthly Income &
single online purchase amount. A total number of customers taken for the study are 200.
Chi square test used for analysis of this study. The results show that there is a direct
relationship between monthly income and their spending pattern. Other demographic
factors like age, gender and occupation also included in it. This study will help Marketer
to analyse income as a demographic factor while formulating marketing strategies.
Key Words- Online Purchase, Spending patterns, Income, Chi Square Test
Introduction
Online shopping is becoming increasingly popular for a variety of reasons. There are certainly
outside factors such as increasing difficulty getting to traditional stores and the hassles
often associated with shopping in malls and other traditional stores may contribute to the
increased interest in online shopping. However, there are also many benefits which make
online shopping an excellent option for many busy shoppers. Some of these benefits include
convenience, comparison shopping capabilities and express shipping options. Several other
factors like age, income, occupation etc. are also affecting on online purchases
The internet has played a significant role in our daily life in that people can talk through
the internet to one who is actually on the other side of the Earth, can send email around the
clock, can search information, can play game with others, and even can buy things online.
Meanwhile, Internet shopping has been widely accepted as a way of purchasing products and
services It has become a more popular means in the Internet world. It also provides consumer
more information and choices to compare product and price, more choice, convenience, easier
to find anything online ((Butler and Peppard, 1998)). Online shopping has been shown to
provide more satisfaction to modern consumers seeking convenience and speed ((Yu and Wu,
2007)). On the other hand, some consumers still feel uncomfortable to buy online. Lack of
trust, for instance, seems to be the major reason that impedes consumers to buy online. Also,
consumers may have a need to exam and feel the products and to meet friends and get some
more comments about the products before purchasing.According to traditional consumer
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decision model, Consumer purchase decision typically starts with need awareness, then
information search, alternative evaluations, deciding to purchase and finally, post-purchasing
behavior.
Literature Review
Online shopping has provided researchers with a rich set of questions and wealth of new
information on consumer behavior and decision-making. Dating from the late 1990s, these
studies provide both scholars and retailers with additional perspective on how the Internet has
altered consumption and the factors that have facilitating this change. Information on the
demographics, socioeconomics and consumer behavior of Internet shoppers has recently been
synthesized into an Online Shopping Acceptance Model (OSAM) by Zhou et al. (2007).
Online purchasing appears to be most related to convenience (Zhou et al., 2007) in addition to
recreation and economic advantages (Donthu and Garcia, 1999; Korgaonkar and Wolin, 1999;
Li et al. 1999; Swaminathan et al., 1999). The higher efficiency of e-commerce has reduced
buyer search costs (Bakos, 1997) and produced lower prices for several online goods and
services than their offline counterparts (Brown and Goolsbee, 2002; Brynjolfsson et al., 2003;
Lee et al., 2003), offering the promise of products supplying good value to economic
shoppers. Online purchasing has also been facilitated by enhanced Internet accessibility as
prices have steadily dropped and connections have become faster. Sultan and
Henrichs(2000)in his study concluded that the consumers’ willingness to and preference for
adopting the Internet as his or her shopping medium positively related to income, household
size and innovativeness.
Objectives of the Study
1.
To review the tendency of people to spend on online purchase as per demographic
factors like Age, Education, gender, occupation.
2.
To analyses the Relationship between Monthly Income and Single online purchase
amount in Rupees
Hypothesis
The study is based on the following Hypothesis.
H0 :- Monthly Income and Single Online Purchase Amount are independent.
H1 :- Monthly Income & Single Online Purchase are dependent on each other.
Research Methodology
In a view to precede the research in a systematic way the following research
methodology has been used. By means of obtaining detailed opinion of the customers, this
research falls under the category of descriptive research. Both primary and secondary data
collection was made. To collect the primary data questionnaire is prepared. The questionnaire
includes questions on demographic variable and the respondents were asked to respond the
multiple choice questions. The questionnaires were widely circulated to the customers.
Respondents are selected using convenient sampling method through direct method and also
through email.
It is assumed that all 200 respondents are using internet.
Sample size: 200 respondents
Sample selection: Random sampling method
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Sources used: Primary data, Secondary data and Questionnaire
Sampling Location: Mumbai
Limitations of the study
1.
The study is based on sample which is very small hence the results cannot be
generalized.
Analysis and interpretation
To analyse the two hypotheses, different demographic variables are considered. They are
Gender, Age Group, Education and Occupation of the respondents.
Sr.
No
Gender
Frequency
Monthly Income
Amount Spend on
online purchase
300050005000
10000
Less
than
20000
8
2000040000
4000060000
Above
60000
10003000
22
28
17
25
32
15
More
than
10000
9
1
Male
2
Female
17
23
19
5
45
17
14
4
Total
25
45
47
22
70
49
29
13
Age
1
Below 20
1
0
0
0
2
2
1
0
2
20-35
13
6
5
2
37
9
6
1
3
35-50
7
20
19
7
13
18
12
7
4
Above 50
4
19
23
13
18
20
10
5
Total
25
45
47
22
70
49
29
13
Education
1
Undergraduate
7
13
6
0
20
11
3
0
2
Graduate
17
28
25
6
42
25
14
4
3
Postgraduate
1
4
16
16
8
13
12
9
Total
25
45
47
22
70
49
29
13
4
20
21
9
2
Occupation
1
Private employee
13
16
23
2
Govt. Employee
2
23
13
4
14
13
6
3
3
Businessman
0
4
11
14
5
4
11
8
4
Student
3
0
0
0
22
9
3
0
5
Other
7
2
0
0
9
2
0
0
Total
25
45
47
22
70
49
29
13
Sr.
No
1
Gender
Percentage (%)
Monthly Income
Male
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Less than
20000
32
2000040000
48.88
4000060000
59.57
Above
60000
77.27
10003000
35.71
Amount Spend on
online purchase
300050005000
10000
65.3
51.72
More than
10000
69.23
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Sr.
No
2
Gender
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Percentage (%)
Monthly Income
Female
Total
Less than
20000
68
2000040000
51.11
4000060000
40.42
Above
60000
22.72
10003000
64.28
100
100
100
100
100
Amount Spend on
online purchase
300050005000
10000
34.69
48.27
100
100
More than
10000
30.76
100
Age
1
Below 20
4
0
0
0
2.85
4.08
3.44
0
2
20-35
52
13.33
10.63
9.09
52.85
18.36
20.68
7.69
3
35-50
28
44.44
40.42
31.81
18.57
36.73
41.37
53.84
4
Above 50
16
42.22
48.93
59.09
25.71
40.81
34.48
38.46
Total
100
100
100
100
100
100
100
100
Education
1
Undergraduate
28
28.88
12.76
0
28.57
22.44
10.34
0
2
Graduate
68
62.22
53.19
27.27
60
51.02
48.27
30.76
3
Postgraduate
4
8.88
34.04
72.72
11.42
26.53
41.37
69.23
100
100
100
100
100
100
100
100
52
35.55
48.93
18.18
28.57
42.85
31.03
15.38
2
Private
employee
Govt. Employee
8
51.11
27.65
18.18
20
26.53
20.68
23.07
3
Businessman
0
8.88
23.4
63.63
7.14
8.16
37.93
61.53
4
Student
12
0
0
0
31.42
18.36
10.34
0
5
Other
28
4.44
0
0
12.85
4.08
0
0
Total
100
100
100
100
100
100
100
100
Total
Occupation
1
Interpretation :It reveals that 77.27% male having monthly income above 60,000 spend more i.e. 69.23
on online purchase and 68% of the female having monthly income less than 20,000 spend
more i.e. 64.28% on online purchase.
It reveals that age group of 35-50 have high monthly income i.e. 44.44% and also spend
maximum i.e. 53.84% on online purchase
It is also seen that postgraduate people have high monthly income i.e. 72.72% and also
spend more i.e. 69.23% on online purchases
It reveals that Businessman has high monthly income i.e. 63.63% and they spend more
i.e. 61.53% on online purchase.
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Table 1
Time spend on
Internet daily
Monthly Income
Percentage
Below
20,000
20,00040,000
40,00060,000
Above
60,000
None
Below
20,000
20,00040,000
40,00060,000
Above
60,000
None
12
8
1
2
2
25
18
14
6
5
2
45
12
23
4
5
3
47
8
7
2
3
2
22
22
36
0
0
3
61
48
32
4
8
8
100
40
31.11
13.33
11.11
4.44
100
25.53
48.93
8.51
10.63
6.38
100
36.36
31.81
9.09
13.63
9.09
100
36.06
59.01
0
0
4.91
100
0-4 hrs
4<hrs
Once a Week
Once a Month
Rarely
Total
Interpretation:- It reveals that maximum 48% of the customer having monthly income
below 20,000 uses internet for 0-4hrs, whereas minimum 4% uses it for once a week.
It reveals that maximum 40% of the customers having monthly income 20,000-40,000
uses internet for 0-4hrs, whereas minimum 4.44% uses it for Rarely.
It reveals that maximum 48.93% of the customer having monthly income 40,000- 60,000
uses internet for more than 4hrs, whereas minimum 6.38% uses it for Rarely.
It reveals that maximum 36.36% of the customer having monthly income below 20,000
uses internet for 0-4hrs, whereas minimum 9.09% uses it for once a week and Rarely.
Table 2
How often do you use
internet for shopping
Monthly Income
Percentage
Below
20,000-
40,000-
Above
20,000
40,000
60,000
60,000
None
Below
20,000-
40,000-
Above
20,000
40,000
60,000
60,000
None
Once a week
2
2
2
4
15
8
4.44
4.25
18.18
4.59
At least once a month
4
11
16
5
21
16
24.44
34.05
22.72
34.42
Once in 2-6 months
11
14
12
5
16
44
31.11
25.53
22.72
26.22
Rarely once in a year
8
18
17
8
9
32
40
36.17
36.36
14.75
Total
25
45
47
22
61
100
100
100
100
100
Interpretation:- It reveals that 44% uses internet for shopping once in 2-6 months,
Whereas 8% uses for once a week.
40% of the customer having monthly income 20000-40000 uses internet for shopping
Rarely once in a year. Whereas 4.4% uses it for once a week.
36.17% of the Customers having income between 40,000-60,000 uses it Once a year &
4.25% uses once a week.
36.36% having income above 60,000 uses it rarely once in a year & 18.18% uses it once
in week.
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Table 3
Do you use internet
prior to shopping for
collecting information
Yes
Monthly Income
Below
20,00020,000
40,000
19
31
40,00060,000
34
Above
60,000
15
None
52
Percentage
Below
20,00020,000
40,000
76
68.88
40,00060,000
72.34
Above
60,000
68.18
No
6
14
13
7
9
24
31.11
27.65
31.81
Total
25
45
47
22
61
100
100
100
100
None
85.24
14.75
100
Interpretation: 76% having monthly income below 20,000 says that they uses internet
prior to shopping for collecting information. Whereas 24% says that they don’t use internet
prior to shopping for collecting information.
68.88% having monthly income 20,000-40,000 says that they uses internet prior to
shopping for collecting information. Whereas 31.11% says that they don’t use internet prior to
shopping for collecting information.
72.34% having monthly income 40,000-60,000 says that they uses internet prior to
shopping for collecting information. Whereas 27.65% says that they don’t use internet prior to
shopping for collecting information.
68.18% having monthly income above 60,000 says that they uses internet prior to
shopping for collecting information. Whereas 31.81% says that they don’t use internet prior to
shopping for collecting information.
Interpretation: It reveals that 24% of the customer having monthly income below
20,000 prefer to do their shopping of Cinema tickets, whereas minimum 4% prefer to do of
Books/CD’s, Furniture and Airplane/railway tickets.
20% of the customers having monthly income 20,000-40,000 prefer to buy Electronic
Gadgets & 2.22% buys Airplane/Railway tickets.
19.14% of the customers having monthly income 40,000-60,000 prefer to buy Electronic
Gadgets & 6.38% buys cloths & cinema tickets.
22.72% of the customers having monthly income above 60,000 prefer to buy Computer
products & 4.54% buys Designer Jewellery.
Validation of Hypotheses
Assumption: Out of 200 responses 61 Students are not earning so they are excluded
from the sample.
Monthly Income
Below 20,000
20,000-40,000
40,000-60,000
More than 60,000
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Select an approximate amount you would spend on a single online purchase.
Below 1,000
1,000-3,000
3,000-5,000
5,000-10,000
7
16
1
1
4
20
16
3
1
8
21
13
3
3
1
8
More than 10,000
0
2
4
7
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Table 6 : Results of Hypotheses
Sr.
no.
1
2
Hypotheses(H01)
H0 : Single Online Purchase amount is Independent
of Monthly Income.
H1 : Single Online Purchase amount dependent on
Monthly Income
At 5% level of significance
Cal
Chi
square
68.12
Table
square
21.026
----
----
chi
Result
D.F.
L.O.S.
12
5%
----
----
H0
is
Rejected
H1
is
Accepted
The table value of chi square at 5% significance level for 12 degrees of freedom is
21.026. The calculated value of chi-square is 68.12, which is greater than the table value;
therefore the null hypothesis is rejected. The result shows that Single online purchase amount
is dependent on Monthly Income.
Conclusion
Thus, this study has analysed the Spending pattern of customers is depended on their
monthly income. The study concluded that High income group people spend more on
purchases. They prefer to buy costlier commodities such as Electronic gadgets & computer
products. There is good number of customers including Private employees, Govt. employees,
Businessmen using internet for Online purchases. Online websites should concentrate more to
the female segments as results prove that females shop more in online shopping as compared
to men. It reveals that age group of 35-50 have high monthly income i.e. 44.44% and also
spend maximum i.e. 53.84% on online purchase.So companies should devise the policies and
strategies to magnetize more number of people in this segment in future also.
REFERENCES
1.
Anonymous, (2009),“How to shop online more safely,” http://www.microsoft.com/
protect/fraud/finances/shopping_us.aspx, Microsoft.com.
2.
Bigné-Alcañiz, E.,Ruiz-Mafé, C.,Aldás-Manzano, J. andSanz-Blas, S, (2008), “Influence
of online shopping information dependency and innovativeness on internet shopping
adoption”, Online Information Review, vol. 32, no. 5, pp. 648-667.
3. Online Shopper Behavior: Influences of Online Shopping Decision-Chayapa
Katawetawaraks ,Cheng Lu Wang.
4.
Online Marketing-a customer-led approach(Book)-By Richard Gay.Alan Charlesworth
and Rita Esen
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A study on advertising and promotional strategies & its effect on Sales on
Sahara Aamby Valley City, w.r.t World Hotels
Prof Archana .A.Borde
Sinhgad Institute of Business Administration & Computer Application.
Email I.d: archanaajitborde@gmail.com
ABSTRACT
Aamby Valley City is a city developed by Sahara Group mainly for premium
segment of the society. Having which is spread across -----acreas of land.As tourisim is
also one of the main focus of Aamby The study is focused on analysis of the promotional
and advertising strategies of Sahara Aamby valley, World Hotels and its effect on the
sales, and to analyze the competitors advertising and promotional strategies.
The Study was conducted with primary objective to understand the various
advertising strategies adopted by various Hotels in Aamby Valley City. It also gave an
insight into the segments catered and the customer expectations and the various
promotional strategies practiced by the Hotels catering to the premium segment.
Keywords Advertising, Promotion, Strategies, Aamby Valley.
Introduction to AAMBY Valley City, World Hotels
Aamby Valley City is a township developed by the Sahara India Pariwar in Pune district
in the Indian state of Maharashtra. It is about 23 km away from Lonavala, 87 km away from
the city of Pune and 120 km away from the city Mumbai. The township is connected by road
from Lonavala. The township is also connected by air from Mumbai and is equipped with its
own airstrip. It has an average annual rainfall of 4000mm (155 inches) from June to
September. The city is spread over 10600 acres of hilly terrain.
Vision of AAMBAY Valley
To ensure that the interests of the Pariwar are kept paramount and justice prevails in
every sphere and at all levels to safeguard the interests of all Kartavyayogi Karyakartas.
Objective of AAMBAY Valley
Where honesty is the foundation, justice is the ultimate reward. No delay in ResponseNo denial in justice.
Historical Background
Planned by the best Master planners and architects of the world, the lifestyle city offers
best comfort Index with a pleasant and rejuvenating climate all-round the year. The Valley of
peace and happiness consists of 3 man-made lakes, 11 water bodies and boasts of 25kms of
shore length. The city pride itself in its fully functional, dedicated all weather Airport, and the
world class infrastructure comes complete with electric Club Class convenience including an
Equestrian course, Aquatic bay for water sports, Adventure Zone 19th north, Fine dining,
Entertainment and leisure Hubs. The crowning centerpiece is the 18-hole floodlit
championship Golf course meandering over 256 acres of emerald turf with a fully equipped
PGA Golf Academy to impart advanced professional training. A state-of-the-art Healthcare
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Management System is in place and the city is also home to International School Aamby
[ISA], a fully residential Academic institution offering global curricula. The hill city also has a
3-tier security and crisis management system to ensure a relaxed, safe and secure environment.
Within the picturesque environs, Aamby Valley City aesthetically combines the allencompassing facets of luxurious living, business conveniences and conferences, leisure and
recreation. Offering superlative lifestyle, the aspiration city has real estate options ranging
from the furnished Timber Chalets, Contemporary Villas, Furnished Lifestyle Apartments,
Venetian Styled Lakeside homes, Elegant Golf Apartments and Luxurious Floating Villas,
Each of these residences is superbly crafted and well-appointed with eclectic pick of new-age
fixtures, accessories and comforts.
With a host of never imagined indulgences, Aamby Valley City, in an impeccable blend
of a professional approach, aesthetic orientation and meticulous planning, offers the very best
in premium, luxurious and high class living.
Fact Sheet About Aamby Valley City
Project Started
Land Total area
Open Area
Could be used for Construction
Average Altitude
Annual Rainfall
Relative Humidity
Water Bodies length
Temperature
Climate










Earlier 1920
Over 10,600 plus Acres
91 % forever
9%
766 m above MSL
Avg 4000 mm (157”)
41 % - 68 %
3 man- made Lakes, II water Bodies & over
25 kms of shore
Avg. Min. 12 °c- max. 32° c
Pleasant &rejuvenating round the year
Objectives
The study was carried on by interviewing hundred customers visiting world hotels and
thirty employee from sales and marketing department with the following objective
1.
To study the Effects of promotion and advertising on sales for Sahara Aamby Valley
City, World Hotels.
2.
To know what kind of advertising activities does World Hotels implement.
3.
To know the close competitors and their promotional strategies.
Methodology
The study has adopted descriptive and analytical research methodology normally
adopted in conducting management research.
The objective of the study was to understand the competition faced by the Hotels at
Aamby Valley city, the various promotional activities and advertising activities practiced
adopted by World Hotels and its impact on Sales. A questionnaire was circulated among
hundred customers and thirty employees visiting the World Hotels. The study was carried on
by interviewing hundred customers visiting world hotels.
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Data Analysis
1.
Frequency of customers visiting world Hotels first time and having offered discounts.
Fig 1.1
Fig 1.2
Out of the survey of hundred customers it was found that sixty eight customers visited
regularly and 32 customers visited first time. Whereas discounts were offered to new
customers only. Out of 32 lucky customers 12 were offered discounted rates 10 were offered
gift vouchers and 10 were offered discounted memberships
2.
Opinion of customers on service provided by world hotels and willingness to visit again
and recommendation to closed one
Fig 2.1
Fig 2.2
From Fig 2.1Out of 100 customers, 4 customers said that the services were average, 30
said its good, 50 said very good and 16 said its excellent. From Fig 2.2Out of 100 customers
98 of them were willing to visit and recommend World hotels to closed ones, and only 2
customers were not willing to visit and not willing to recommend also.
3.
Opinion of Customers on advertisements & types of advertisements of world hotels and
the impact of advertisements.
Fig 3.1
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Fig 3.2
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Out of a survey of 100 customers 67 have seen ads by World Hotels and 37 have not
seen any ads. 25 customers have seen internet ads, 2 have seen broad cast ads, 50 have seen
outdoor ads and 23 have seen other kind of advertising. 25 have been attracted by the ads, 54
by word of mouth and 24 by other source.
4.
Customers awareness on similar service providing organizations like Hilton Hotels and
club Mahindra?
Fig 4.1
Fig 4.2
Out of 100 customers 96 were aware of the competitors and only 4 were unaware. , 60
customers come to know about Club Mahindra from ads and 36 customers come to know
about word of mouth
5.
Customers visiting competitors hotels and awareness about the hotels
Fig 5.1
Fig 5.2
ut of 100 customers only 33 have been to Competitors hotels like Club Mahindra and
Hilton . 14 have seen the ads, 64 come to know from word of mouth and 22 come to know
from other sources.
6.
Comparison on customers opinion on various advertising strategies adopted by
competitors.
Better ads Better promotional techniques
World Hotels
9
11
Club Mahindra 5
4
Hilton Hotles
4
4
Total
19
14
Out of 19 customers 9 have voted for World Hotels and 5 have voted for club Mahindra
and 4 voted for Hilton in terms of better advertising. And 11 customers have voted for World
Hotels and only 4 customers have voted for club Mahindra and 4 for Hilton Hotels in terms of
better promotional techniques.
Findings
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1.
2.
3.
4.
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World Hotels have a very good brand image from the customers’ point of view.
Sahara Aamby Valley World Hotels uses good promotional strategies to bind their
customers but the can push hard on their advertising strategies.
World hotel is well known to all the customers and customers have a positive feedback
of their promotional activities.
Sahara Aamby Valley World Hotels have a upper hand in their both advertising and
promotional activities as compared to Club Mahindra and Hilton Hotels
Conclusions
1.
The focus of the project was mainly on the promotional and advertising activities of
Sahara Aamby valley, World Hotels and its effects on sales, the ads put up by World
Hotels are limited which do not have a major impact on sales but improvisation on
advertising can lead to much higher sales in future.
2.
Sahara Aamby valley, World Hotels has very well established itself as a world class
hotel brand, but due to the lack of advertising activity the publicity and what all facilities
and services offered by Sahara Aamby Valley are unknown to new customers.
Recommendation of the study.
1.
Sahara Aamby Valley City, World Hotels can increase their sales by carrying out special
promotional activities during off season.
2.
Broadcast advertising activities can be increased by World Hotels Sahara Aamby Valley
City.
3.
Consistency in advertising related activities should be considered.
Bibliography

Broachers and pamphlets of World Hotels Sahara.

Magazines of world hotel

Philip Kotler’s “basics of marketing”.

http://www.saharastar.com/the-hotel.aspx?pg=th

www.aambyvalley.com

www.hilton.com

www.clubmahindra.com
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Emerging Marketing: - Green Marketing
(From Industry Perspective: A Case Study Method)
Prof. Radha S Mahatme
Mr. Ranjeet D. More
Assistant Professor
Assistant Professor
ASM’s IIBR
Pratibha Institute Of Business Management
radhamahatme@asmedu.org
ranjeet_more59@rediffmail.com
ABSTRACT
Green marketing refers to the process of selling products and/or services based on
their environmental benefits. Such a product or service may be environmentally friendly
in it or produced and/or packaged in an environmentally friendly way. Green marketing
is growing greatly as increasing numbers of consumers are willing to back their
environmental consciousnesses.
In this study some cases I tried to analyze to fulfill the objectives of this research.
The objectives being to study the concept of Green Marketing & to study the advantages
of Green Marketing. All the data collected is secondary data through internet websites.
Finally it has been concluded that green marketing helps companies to become an
environment friendly company, to have advantage over competitors & to fulfill their
corporate social responsibility.
Key Words: Green Marketing, Environmental Consciousnesses .Corporate Social
Responsibility.
Introduction
According to the American Marketing Association, green marketing is the marketing
of products that are presumed to be environmentally safe. Thus green marketing incorporates a
broad range of activities, including product modification, changes to the production process,
packaging changes, as well as modifying advertising. Yet defining green marketing is not a
simple task where several meanings intersect and contradict each other; an example of this
will be the existence of varying social, environmental and retail definitions attached to this
term. Other similar terms used are Environmental Marketing and Ecological Marketing.
The legal implications of marketing claims call for caution. Misleading or overstated
claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission
provides some guidance on environmental marketing claims. This Commission is expected to
do an overall review of this guidance, and the legal standards it contains, in 2011.
Ongoing debate
The popularity of such marketing approach and its effectiveness is hotly debated.
Supporters claim that environmental appeals are actually growing in number–the Energy Star
label, for example, now appears on 11,000 different companies' models in 38 product
categories, from washing machines and light bulbs to skyscrapers and homes. However,
despite the growth in the number of green products, green marketing is on the decline as the
primary sales pitch for products. On the other hand, Roper’s Green Gauge shows that a high
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percentage of consumers (42%) feel that environmental products don’t work as well as
conventional ones. This is an unfortunate legacy from the 1970s when shower heads sputtered
and natural detergents left clothes dingy. Given the choice, all but the greenest of customers
will reach for synthetic detergents over the premium-priced, proverbial "Happy Planet" any
day, including Earth Day. New reports, however show a growing trend towards green
products.
Confusion
One challenge green marketers -- old and new -- are likely to face as green products is a
message become more common is confusion in the marketplace. "Consumers do not really
understand a lot about these issues, and there's a lot of confusion out there," says Jacquelyn
Ottman(founder of J. Ottman Consulting and author of "Green Marketing: Opportunity for
Innovation.") Marketers sometimes take advantage of this confusion, and purposely make false
or exaggerated "green" claims. Critics refer to this practice as "green washing".
Objectives
1.
To study the concept of Green Marketing.
2.
To know the effectiveness of Green Marketing.
Research Methodology
All the data collected is secondary data. It is collected from sources like different
websites & books. Research type is exploratory research.
Theoretical Background
In this contemporary world, an ecological issue such as global warming interests both
the marketing practitioners as well as the consumers. The term “green marketing” simply
denotes all the activities intended to generate as well as facilitate any exchange in order to
satisfy human needs such that satisfying these needs happen with the most minimal input on
the environment. Companies all across the globe have started differentiating their products and
services by using go-green concern and have started utilizing ecological marketing approach
as a mere competitive edge.
This green marketing approach is largely used as a gimmick by the gigantic corporate
houses in order to make a difference in the consumer’s point of view when it comes to major
market decisions.
Marketing and advertising has always been a prime mover of economic activity. They
create a huge direct and indirect employment, a flow of money and initiate consumer activity
that is a lifeline of any economy.
Owing to the criticality and necessity in business and revenue generation, marketing
activity has mindlessly taxed the precious resources to achieve its motives and targets. The
resultant is visible in the form of ruthless ecological destruction, depleting resources and
energy crisis. The global concern for sustainable development has highlighted the need for
going green in every sphere of human life; and that includes marketing.
Green Marketing for better future
Green marketing means deploying resources in a manner that reduces adverse impact on
the environment. It incorporates processes that take care of sustainable ecological
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development and advancements in technology simultaneously. Digital advent is effectively
helping ‘greening’ of marketing activity by changing the very fundamental methods of
marketing. Green marketing can be effectuated,

By utilizing greener mediums of marketing like internet marketing. The internet has
been the key-initiator creating paper redundancy. Hitherto traditional marketing methods
relied heavily on paper that gobbled a chunk of our green cover.

By using mobile phones and cellular network to send messages directly to prospective
customers. It can do away with the need of circulating pamphlets, brochures and other
printed
material.
By using solar, wind and other non-conventional energy resources for illumination. It
can reduce our dependence on traditional energy resources that are generated by fossil
fuels or natural resources.

By doing away with the use of plastic and other non-biodegradable materials used
commonly in marketing and packaging. Internet marketing can, instead, reach
consumers’ homes without depending on these.
Green marketing from the core
Other than these outwardly methods of going green, the campaign will be effective and
successful in a true sense only if it is incorporated at the root of every process including
designing, manufacturing, marketing and waste disposal. Internet marketing has already
affected the marketing methods and strategies. More and more companies are adopting this
eco-friendly method that rides on advantages offered by the internet. Consumer awareness
program shall also be crucial in this aspect. Eco-aware consumers can opt for the product and
methods that are less taxing on the environment. Large consumer preference for greener
products will compel the manufacturers to adopt eco-friendly practices.
CASE – 1
Challenge:
For several years now, the bottled water industry has faced public scrutiny because of its
environmental impact. It was once fashionable to carry a bottle of water, but in the past two
years the media and public environmental figures have taken a public stance against the
industry, and bottled water now has a bad reputation. As consumers become more sensitive to
environmental issues, many of them have chosen to reduce their personal environmental
footprints by drinking less bottled water or giving it up altogether. As a result, an industry that
once grew in the double digits year over year has for the past two years been declining at
nearly just as quick a pace. But demand still exists for the product because water remains the
healthiest drink available and consumers understand the importance of hydration in a healthy
lifestyle. The public’s criticism is specifically of the plastic bottle’s negative environmental
impact. So in this declining market, there is an increasing demand for a more environmentally
responsible choice and the company that finds a way to significantly reduce their bottle’s
environmental footprint will have a clear advantage.
Strategy:
Naya has long been the leading bottled water company in terms of environmental
positioning, a leadership that comes at an appropriate time given the recent spotlight that has
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been shone on the industry. When the public movement towards environmentalism started
ramping up, Naya had already initiated efforts to become better environmental stewards. For
instance, before the wave of criticism hit the industry, Naya had already decided to dedicate
half of their label space to promoting recycling. At the time it was not clear that prioritizing
environmental efforts would eventually become a competitive advantage – they simply knew
it was their responsibility to promote responsible choices.
Naya has fully committed itself to improving their environmental footprint, and has
placed this value at the core of their corporate philosophy: “To offer natural spring water of
exceptional quality while reducing our environmental footprint.” As part of that commitment,
Naya donates 1% of their revenues to environmental causes and is now certified by 1% for the
Planet. This commitment encourages many initiatives, all centered on either water or reducing
the impact of the bottle – Naya’s two main imperatives. On the topic of water, Naya has
developed a wealth of expertise in protecting their spring and ensuring that its flow is
continuously renewed. So in the spirit of sustainability, they have decided to share this
expertise to help clean up other waterways in the province of Quebec. Through the Naya Fund
and in partnership with La Fondation de la Faune du Québec (Quebec’s wildlife foundation),
Naya is donating $300,000 over three years to clean up six urban rivers and streams. They
have also entered into a partnership with Adopt a River to incorporate a water education and
protection curriculum into several high schools’ science programs. Naya’s second set of
initiatives involves sensitizing people to the importance of recycling to reduce the impact of
the plastic bottle. The Naya Fund supports several different organizations such as la Table de
recuperation hors foyer and the Consortium Écho-Logique, both of whom work to promote
recycling in public areas. Through these partnerships, Naya installs recycling bins in public
walkways in urban areas and mobilizes a “Naya Squad” to sensitize people to the importance
of recycling and encourage people to use the bins.
In addition to financing numerous environmental programs, Naya continuously
examines how they can reduce the impact of their own operations, notably in the production of
their bottles. In fact, the challenge of making the plastic bottle more environmentally-friendly
has been a predominant question over the past few years at Naya. The popular answer to this
challenge is to reduce the quantity of plastic contained in each bottle, a technique called
lightweighting, which also happens to be cost-reducing. Naya examined the different
possibilities for carbon-reduction in the manufacturing process and concluded that while
lightweighting does reduce carbon emissions substantially, it is nowhere near the reduction
obtained by using recycled plastic instead of virgin plastic. Naya made the difficult choice to
transition to recycled plastic, a decision that meant significantly reducing carbon emissions but
consequently increasing costs while most competitors were reducing them.
It took almost two years to plan the process of incorporating recycled plastic into their
bottles, a long and arduous step that was nevertheless imperative to Naya because it would
ensure that the end result be of top quality. First, a plethora of tests was required to ensure that
recycled plastic was safe to drink from, and that no dangerous organic compounds would be
released into the spring water. Second, because recycled plastic does not have the same
viscosity as virgin plastic, there is a risk that the bottles could develop micro-fissures in them
that would let the water seep out over time. It took many months to perform the quality
assurance tests and adjust the machinery to ensure that it was compatible with the use of
recycled plastic. Finally, because recycled plastic is yellow in color, Naya had to work with
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their suppliers find solutions that would avoid color distortion of the bottle. With all these tests
and analyses complete, and with a Health-Canada approval in hand, Naya could finally
proceed to the implementation of the project. To ensure a quality transition, Naya followed
scientific protocol and moved through three phases of rigorous testing for 9-12 months,
increasing the percentage of recycled content at each step. In the first quarter of 2008 the first
25% recycled plastic bottle was launched, in March of 2009 they moved to 50%, and finally in
December of 2009 Naya launched their first bottle made from 100% post-consumed recycled
plastic.
While clearly prioritizing recycled plastic, Naya never put lightweighting aside.
Simultaneously while moving progressively towards 100% recycled plastic, they also initiated
two separate lightweighting projects which collectively allowed them to reduce the weight of
their bottles by over 30%.
Results
Today, Naya is the first and only spring water company in the world to offer their
products in 100% recycled plastic bottles. Thanks to their commitment to continuously
reducing their carbon footprint, Naya was also the first Canadian company to have had the
carbon footprint (full product lifecycle) of some of its products certified by the Carbon Trust, a
world renowned leader in measuring companies’ carbon footprints. Specifically, Naya reduces
the full lifecycle carbon footprint of its 1.5L bottle by 30% when using 100% rPET versus the
same bottle made with virgin plastic, as certified by the Carbon Trust.
The 100% recycled plastic bottle is clearly great news for Naya and all the stakeholders,
including the retailers as well as consumers. But is also great news for the bottled water
industry as a whole. After hearing about this new innovation, Naya believes that other bottled
water manufacturers are now scrambling to figure out how they too can incorporate 100%
recycled plastic in their bottles and similarly reduce their carbon footprints in order to remain
competitive. By leading with this innovation, Naya is putting pressure on their competitors and
ensuring that the whole industry significantly improves their environmental impacts,
something that would not have happened otherwise. What’s more, Naya already has clear
plans to continue innovating to further reduce their carbon footprint. Naya is proud to have
been the one to lead their industry with the 100% recycled plastic bottle, but they realize that it
is only a step in the right direction and that there will be more exciting and game-changing
innovations to come.
The lesson to be learned through Naya’s green innovation case is that when you believe
that change is possible, when you are obsessed with making a difference, it can be done. Even
companies who operate in the most criticized industries can lead the way to better alternatives.
This is the story of a small Canadian company that made a huge difference by doing
something different, by going against the flow and leading their industry to improve their
environmental footprint.
CASE – 2
About:
PlantBottleTM packaging is a PET plastic package made with up to 30 percent of its
material derived from plant based waste material. This redesigned plastic package represents a
significant step in the journey to becoming the future of recyclable bottles. Using plant-based
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material to replace a portion of the petroleum used in PET plastic allows Coca-Cola Canada
Ltd. to reduce its use of non-renewable resources.
PlantBottle™ packaging currently is made through a process that turns sugar cane and
molasses, a by-product of sugar production, into a key component for PET plastic. The sugar
cane being used comes from predominantly rain-fed crops that were processed into ethanol,
not refined sugar. Ultimately, the Company’s goal is to use other types of plant-based waste,
such as wood chips or wheat stalks, to produce recyclable PET plastic bottles.
Products available in the PlantBottle™ package will include Coca-Cola, Coke Zero, Diet
Coke, DASANI, Sprite, Fresca, Barqs, and Fanta. All Canadian products available in the new
plant-based bottle will be bottled in Coca-Cola Bottling Company facilities in Calgary, Alberta
and Richmond, British Columbia.
The goal is to produce up to 2 billion PlantBottles globally by the end of 2010 and
continue to innovate until the Company has a bottle that is made with 100 percent plant-waste
material while remaining completely recyclable.
Why?:
44% of consumers are more concerned about the environment now than they were one
year ago. Tend to be influential, politically, liberal and optimistic

The “green*” population tripled in size in 16 months

72% of consumers agree that “companies should make it easier for me to do the right
thing, like being more environmentally friendly, eating right, etc.”

Concern about packaging waste is increasing at a higher rate than any other
environmental issue

Strategy:

Position the Coca-Cola System and its brands, led by DASANI® and sparkling brands,
as industry leaders in eco-friendly packaging innovation with the introduction of a PET
bottle that is both renewable and recyclable.

Enhance the brand experience for consumers to further strengthen the affinity they have
for our brands

Lead PET packaging innovation

Environmental credibility – Plantbottle™ is a first step towards achieving a longer term
vision of delivering every beverage in 100% renewable and recyclable material

Addresses consumers’ attitudes and behaviors around sustainability, including lifestyle
changes, view of corporate responsibility and a desire for environmentally friendly
packaging
Consumer Target: The DASANI® target is 25 – 35 year old women and men who make
efforts to maintain their personal interests, health and appearance despite the hectic demands
of work and life. They are also concerned about the environment and want to do their part to
be good stewards of the planet
Launch: Leverage sponsorship of the Vancouver 2010 Olympic Winter Games- all
sparkling soft drinks and DASANI will be served in PlantBottleTM at the Vancouver 2010
Olympic Winter Games
Global launch plans also include availability in Denmark and the United States.
Throughout Denmark, Coca-Cola, Coca-Cola Light and Coca-Cola Zero in 500mL and 2L
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sizes are now available in the PlantBottle™. And for select markets in the
States, including Seattle, San Francisco, and Los Angeles, the PlantBottle™
DASANI in several sizes and Coca-Cola in two-liter bottles, starting in
package launches are being planned in other markets, including Japan and
China’s Shanghai Expo in 2010.
Western United
will be used for
January. Future
Mexico and for
Challenges:
Consumers are skeptical of green marketing – 70% think “green” is a marketing tactic
(Mintel “American Living” Jan ’08 and “Green Marketing” May ’08). The messaging must be
authentic, clear and measurable.
Results:
PlantBottle™ introduction and market launch put The Coca-Cola Company on the
forefront of bio-based packaging innovation.
Bio content:

Up to 30% of the PlantBottle™ is made from plant-based material

In Denmark, up to 65% of the PlantBottle™ is made from a combination of recycled and
plant-based material, with 50% coming from recycled content.
Return On Investment:
Consumer

Differentiate vs. competition through PlantBottle™ leadership.

Drive consumer trust and preference for our brands by strengthening connections on
health and sustainability
Customer
Drive shopper trust and preference for their retail brand by strengthening connections on
health and sustainability
System

Continue to build reputation among retail and industry communities as a leading partner
on health and sustainability issues

Reduce dependence on volatile petroleum-product prices and minimize regulatory
threats against plastic bottles
Case – 3
Challenge:
Canon Canada Inc was going to market with a Green Branding strategy called
“EcoSense” based on our new eco-friendly technologies for our PIXMA line of printer
products. With this new strategy we saw a contradiction in our campaign and the portrayal of
our ink cartridges inside plastic packaging at store level. The plastic packages were deemed
recyclable – however more research revealed that this plastic was not readily acceptable in
many recycling facilities across Canada and therefore would end up being disposed of in the
landfill. The disposal of these packages amounted to approximately over 150,000lbs of plastic
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being diverted to the landfill and did not bold well to the green campaign Canon was
introducing. The plastic packages, while being very secure, also presented a problem for
consumers as they were difficult to open and could lead to injuries if opened in the wrong
way.
The challenge for Canon Canada was how to effectively repackage our inks in a more
eco-friendly package, to coincide with our EcoSense campaign, while still maintaining the
security and shop ability of these inks at store level.
Strategy:
Canon Canada immediately started to identify which avenues would best be suited to
solve the challenge at hand – after analyzing our competitors along with what we currently do
on our smaller ink packages – it was deemed that a paperboard package would be the most
viable option to achieve the desired result. Jones Packaging was brought in as the company of
choice to tackle this challenge as they have a track record of working with sustainable
packaging and are at the cutting edge in terms of green manufacturing practices. Canon
Canada worked collaboratively to design a new retail ink package made entirely out of 100%
recyclable paperboard (Please refer to Figure 2: Paperboard Clamshell). The design was
structured to combat a number of issues that Canon Canada faced in launching a new retail ink
package:

The package was designed to keep the ink safe and secure – tamper proof package
security measures were put into the package to ensure the safety of the ink at retail level.
As well, magnetic tagging strips were added to the cartons to provide a higher level of
store security.

The package was designed as a universal solution to our ink needs – this ensured
economies of scale in production and less wasted materials.

The new paperboard package was shrunk in size approximately 10% overall – this
ensured that retailers would not need to re-plan their shelves with the new package and
allowed for a smooth transition once the package was launched.
The next stage in the strategy was to gain retailer acceptance before the large scale roll
out to ensure our retail customers would accept the new design. After showcasing the new
design to the key ink retailers, they were all on board for the new package and were pleased
with the EcoSense Brand presented by Canon.
Results:
By creating a new eco-friendly paperboard package, Canon Canada was able to produce
the following results:

The package was now 100% recyclable and accepted in all Blue Box Programs across
Canada – thus eliminating the approximate 150,000lbs of plastic waste originally headed
to landfills.

Since the overall package size was decreased by 10%, the transition for retailers was
smooth and seamless and all of them were happy with the green packaging in their
stores.

The decrease in package size, along with a 28% decrease in weight, allowed for more
packages to be put into a container – effectively reducing transportation costs by
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removing trucks from the road, cutting fuel consumption and reducing the amount of
greenhouse gas emissions released into the air.

The difficult to open plastic containers were eliminated and the package is now safer and
more convenient for the end consumer to use.

Currently, all the paperboard being used in the new package is governed by the SFI
(Sustainable Forestry Initiative) which ensures that all paper products come from wellmanaged forests, backed by a rigorous, third-party certification audit. This label is
displayed proudly on our ink package and acts as a sign to consumers that the package
has been created with our future in mind.

The new design was recognized as a sustainable package by the Packaging Association
of Canada (PAC) at the PAC Leadership Awards on April 22, 2008.

It also won an Eco Excellence Award and an Excellence Award – For Achievement in
Packaging at the 2009 Paperboard Packaging Council Carton Competition on March 20,
2009 in Atlanta, Georgia.
Overall, the switch to a 100% recyclable paperboard package not only presented Canon
Canada with some incredible results, it also provided a cohesive green strategy in the
marketplace along with our EcoSense brand printers. This campaign, along with the new
packaging was well received by our retailers.
Findings
1)
By leading with this innovative Green Marketing, companies are putting pressure on
their competitors and ensuring that the whole industry significantly improves their
environmental impacts.
2)
Companies are gaining shoppers & consumer trust and preference for their brands by
strengthening connections on health and sustainability.
3)
Most of the companies are continuing to build reputation among retail and industry
communities as a leading partner on health and sustainability issues.
4)
They started reducing dependency on volatile petroleum-product prices and minimize
regulatory threats against plastic bottles.
5)
For companies like Canon the decrease in package size, along with decrease in weight,
allowed for more packages to be put into a container – effectively reducing
transportation costs by removing trucks from the road, cutting fuel consumption and
reducing the amount of greenhouse gas emissions released into the air.
Conclusion
It has been concluded that green marketing helps companies to become an environment
friendly company, to have advantage over competitors & to fulfill their corporate social
responsibility.
Bibliography
1)
Avoiding green marketing myopia : Jacquelyn A. Ottman
3)
Green marketing Trends : Julie Stein & Ann Koontz
3.
www.greenmarketing.net/strategic.htm
4
www.articlesbase.com/marketing-articles.html
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