GROWTH OF E-RETAILING IN INDIA WITH FOCUS ON ITS
IMPACT ON CONSUMERS IN RETAIL SECTOR
A Thesis Presented To
The Department of Retail Management at
K J Somaiya Institute of Management Studies and Research, Mumbai
In Partial Fulfillment
Of the Requirements for the PGDM Retail Management
By
Malvika Negi
March 2019
Under the supervision of
Dr. Bharati Wukkadada
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STUDENT’S DECLARATION
I, Malvika Negi, declare that the master’s thesis titled ‘Growth of ERetailing in India with focus on its impact on consumers in retail sector’,
submitted by me in partial fulfillment of the requirements for the award of
PGDM-RM at K J Somaiya Institute of Management Studies and Research,
Mumbai, is the record of the work carried out by me during the period from
August’2018 to March’2019, under the guidance of Dr. Bharati
Wukkadada.
To the best of my knowledge the thesis is a record of authentic work carried
out by me during the said period and has not been submitted to any other
University or Institute for the award of any degree/diploma.
I further declare that the material obtained from other sources have been duly
acknowledged in the thesis.
Signature of the Candidate
Date:
March’19
Place: Mumbai
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CERTIFICATE OF FACULTY GUIDE
Certified that the work incorporated in the master thesis titled ‘Growth of ERetailing in India with focus on its impact on consumers in retail sector’
submitted by Malvika Negi was carried out under my supervision.
This is her original work and any such materials that have been obtained from
other sources have been duly acknowledged in the thesis.
Signature of the Faculty Guide
Date:
March’19
Place: Mumbai
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TABLE OF CONTENTS
Certificates………………………………………………………………………………...02
List of Figures……………………………………………………………...……………...05
List of Tables……………………………………………………………………….……..06
Acknowledgement………………………………………………………………….……..07
Executive Summary………………………………………………………………….……08
Chapter 1 - Introduction
09
Chapter 2 - Literature Review
14
Chapter 3 - Research Methodology
21
Chapter 4 - Data Analysis
22
Chapter 5 - Discussion and Summary of Results
33
Chapter 6 – Conclusion
35
References
36
Appendix A – Questionnaire used for collecting information
37
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LIST OF FIGURES
Figure 1: Consumer decision flow ...................................................................................... 15
Figure 2: Cognitive consumer behavior model ................................................................... 15
Figure 3: Theory of reasoned action ................................................................................... 16
Figure 4: Technology acceptance model............................................................................. 16
Figure 5: The 4S web-marketing mix model ...................................................................... 18
Figure 6: Trust model .......................................................................................................... 19
Figure 7: Gender ................................................................................................................. 22
Figure 8: Profile of respondents according to age & status ................................................ 23
Figure 9: Income group ....................................................................................................... 24
Figure 10: Frequency of online shopping ........................................................................... 25
Figure 11: Purchases made through internet ....................................................................... 25
Figure 12: Site preferences.................................................................................................. 26
Figure 13: Benefits derived ................................................................................................. 26
Figure 14: Preferred mode of payment ............................................................................... 27
Figure 15: Is online shopping safe ...................................................................................... 27
Figure 16: Amount spend in single transaction................................................................... 28
Figure 17: Delivery time ..................................................................................................... 29
Figure 18: Reputation of the company ................................................................................ 29
Figure 19: Guarantee & Warranty ...................................................................................... 30
Figure 20: Price of products ................................................................................................ 30
Figure 21: Security .............................................................................................................. 31
Figure 22: Product description ............................................................................................ 31
Figure 23: Overall satisfaction ............................................................................................ 32
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LIST OF TABLES
Table 1: Gender ................................................................................................................... 22
Table 2: Profile of respondents according to age & status ................................................. 22
Table 3: Income group ........................................................................................................ 23
Table 4: Frequency of online shopping............................................................................... 24
Table 5: Amount spend in single transaction ...................................................................... 28
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ACKNOWLEDGEMENT
I would like to express my gratitude to my institution K J Somaiya Institute of
Management Studies and Research, Mumbai for providing me with this opportunity.
I would like to thank my faculty guide Dr. Bharati Wukkadada for guiding and helping
me throughout my research on ‘Growth of E-Retailing in India with focus on its impact on
consumers in retail sector’.
I would also like to thank my parents and friends for constantly helping me in completion
of this project.
Lastly, I would also like to extend my heartfelt thanks to all the respondents for filling the
survey and helping me my research.
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EXECUTIVE SUMMARY
E-retailing appears successfully as a possible third alternative by which corporatized retail
can develop its outstanding share in the total retail pie. Technopak estimates that “ERetailing in India will grow multifold from the current 0.6 billion dollars to 76 billion
dollars by 2021”. The key reason for this tremendous growth lies in the established fact
that the market-enabling conditions and ecosystem creation for E-Retailing will outpace
the same for methodical brick & mortar retail. This growth will offer many economic
advantages to the Indian economy, besides bringing in immense benefits to local
consumers.
The key objective of the project was to carefully study the social awareness of E-Retailing
among the selected respondents of Delhi and Mumbai to examine the features of
this service, which are most liked by the users. For this specific purpose respondents from
different
age
categories
and
various occupations were surveyed.
Products most sought for and typically bought by consumers online across various web
portals were compared between the traditional mode of retailing and E-retailing.
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CHAPTER-1
INTRODUCTION
1.1 DEFINITION
“The Use of electronic communications and digital information processing technology
in business transactions to create, transform and redefine relationships for value creation
between or among organizations, and between organizations and individuals”
1.2 THE GROWTH OF E-RETAILING IN INDIA
E-retailing started in India in 1996 and now it is all set to become one of the successful
medium for day-to-day transactions. It was introduced as B2B platform in India but now it
has expanded itself in B2C and C2C platforms as well.
Between 2000 and 2005
The first wave of E-retailing in India where people were unaware or ignorant about its
presence, there were very few online shoppers and the E-infrastructure was not up-to the
mark. Because of which E-retailing witnessed a fall in the year 2001.
Between 2005 and 2010
Two major transformations took place in 2005 that helped India to build its E-retailing
story once again

Online Travel
The increase in consumer disposable income has driven the changes in their
lifestyle. People were willing to spend money on travelling and exploring new
places. This resulted in rise launch of online travel agents. People were given
option of booking tickets for both airplane and railway online. There was no need
for them to stand in big lines as now they could book ticket sitting at home at their
own convenience.

Online Retail
Increase in consumer disposable income driven the changes in their lifestyle. They
were willing to spend their money on things other than their basic necessities. It
resulted in rise of the need for convenience. Shoppers preferred to shop online
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while sitting at home instead of going out for the same. This leads to a launch of
many retailing websites.
2010 and 2015

Daily deals
In 2010, models like daily deals were introduced in India which saw a big
acceptance from the consumers at a very beginning. Since then, these sites have
witnessed a rise in the number of visits.

Social Media
It is an essential platform for E-retailing sites in order to reach out to consumers.
With the help of Facebook.com, Instagram etc these companies are able to
communicate to their customers and it is a two-sided communication where
customers can share their views to the audience. E-retailing sites also use these
platforms to promote or advertise their products/services.

In 2013, India’s E-retailing market grew to $16 billion, which shows there is a rise
in online retail trends against slower economic growth.
Upcoming Trend
It is really a hard task to predict consumer behavior so as the upcoming trends. It really
requires new facets to deal with E-Retailing challenges in order to sustain in the business.

Internet Penetration
With the ascent in web utilization, smart mobile phones have given significance to
availability and client experience. The acknowledgement of 4G innovation,
alongside the falling costs of advanced mobile phones, has brought about an
expansion in web use in the nation. Enhancements for the online payment front
have realized an ascent in the utilization of plastic cash by Indian buyers. Payment
gateways are currently increasingly secure through various dimensions of
verification. This has helped expanding clients' trust in doing on the web
purchases.
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
M-Commerce
India has in excess of 1500 million mobile owners, of which around 1200 million
have internet access. Likewise, in excess of 100 million mobile phones are
utilizing 4G network. Of the 1500 million mobile owners, just 1000 million are
active on the Internet. However, portable shopping is on upward pattern and is
relied upon to build multiple times in the medium term.

FDI in E-retailing sector
According to DIPP’s new guidelines on FDI in E-Retailing, the Indian
Government has allowed 100 per cent FDI in E-Retailing under automatic route is
permitted in the market placed business model of E-Retailing. However, FDI is
not permitted in the inventory based business model.
1.3 REASONS FOR THE EXPONENTIAL GROWTH OF E-RETAILING

Active internet users: Shopping as an encounter has changed in India. In prior days,
shopping was a fun and relaxation movement appreciated with family and
companions. Today, it is a performance movement, carefully affected and about
accommodation. The idea of shopping anything-anyplace whenever has given the lift
to the web based business industry in India. The majority of this has been
contributed by innovation.

Rising income level: Increase in consumer disposable income driven the changes in
their lifestyle. They were willing to spend their money on things other than their
basic necessities. It resulted in rise of the need for convenience. Shoppers preferred
to shop online while sitting at home instead of going out for the same. This is one of
the important reasons for the exponential growth of E-retailing in India.

Secure payment gateways and logistics: Digital India campaign and Demonetization
has spelt ponders for the web based business industry. For comfort and wellbeing,
customary purchasers are stopping a fixed measure of cash in portable wallets like
PayTm, Ola Money, Mobiwik, BHIM and so forth and utilizing it for fast
installments. Indeed, even banks have concocted their online wallets. There is
likewise
developing
mindfulness
about
utilizing
net
banking
and
charge/Mastercards. To benefit from this prominence, versatile wallets and banks are
additionally flooding clients with cashback and rebate offers.
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
User experience: Other than general internet shopping, clients are additionally
shopping on the web for weddings and celebrations, because of more extensive
scope of items being offered and forceful ads. The free and speedy shipment and
more extensive selection of items, alongside the simplicity of shopping on the web
when contrasted with coming up shopping, is likewise helping E-retailing assemble
momentum. Further, E-retailing organizations are doing fast business because of
offers.
1.4 BARRIERS TO E-RETAILING
Barriers in the growth of E-retailing in India are:

Online transaction & cyber safety issue: Even though it is believed that online
transaction are safe now but still we have to reach new facets in this field. There is
lot more to do due to the challenges of hacking, etc.

E-Infrastructural issues: Every business requires an infrastructure to support its
customers and operations which includes equipments, facilities and processes for all
functional area. Hardware, software, Internet, electricity, payment gateway delivery
process and responsive service might be a challenge

Tax structure in India: Taxation of E-Retailing is an important issue for India,
business and consumer who want to be party to E-Retailing. The tax laws, tax
evasions, basis of taxation, are crucial in terms of countries.
Difficulties like
uncertainty, double taxation, and jurisdiction issues make parties of E-Retailing
reluctant and affect development of E-Retailing.

Legal Issues: Law of the land plays important role in enhancing the indigenous as
well as foreign businesses. Contract Act, Intellectual property rights which includes
trade mark, trade secret & design, Patent, copy right etc., Information Technology
Act which deals with data security, authenticity, cyber laws etc. other legal issues
includes content regulation, advertisement, payment gateway, Foreign Direct
Investment, corporate structure and funding etc. plays important role in enhancing
the e-business.

Touch and feel factor: This is one of the major challenges which are directly
affecting the consumer behavior and thereby the demand of the products purchased
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through E-Retailing. This is one aspect which is directly linked with consumer
satisfaction which is very unpredictable.

Declining Margins of E-retailing companies: In order to satisfy its customers &
sustain in the competitive scenario and increase its base, the companies has to incur
huge cost in the form of fixed cost as well as running cost which definitely shrink the
margins in case turnover of the companies are not increasing in same line.

Logistics and Shipment Services: Logistics including material management plays
vital role in development of e-business. It is a real challenge to identify a economic,
reliable and cost effective logistic partner. Timely deliveries are an integral part of ebusiness and this is a great challenge too as it forms a great part of overall cost of ebusiness.
1.5 OBJECTIVE OF THE STUDY
The primary objective of the study is to evaluate the following:

Sites most preferred for online purchase by the consumers

Preferred mode of payment by the consumer

Kind of products purchased by consumer

Frequency of purchase of consumers
1.6 SCOPE OF THE STUDY
This study analyses the extent of awareness and usage of E-Retailing as a model for
purchasing and also studies the features most liked and beneficial to the consumers. Also
it talks about the most highly purchased products and the most frequently visited
websites for the same in Delhi and Mumbai. It further analyzes potential strategies
which will be adopted by or can be adopted by the e-retailing players in the market as
the industry evolves.
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CHAPTER- 2
LITERATURE REVIEW
2.1 ABSTRACT
The elements of consumer behavior are consistently developing with continuous
mechanical up degrees. Consumers are experiencing significant change condition of
being an e-consumer with effective dissemination of novel idea of internet shopping in
the previous three to four years. Another interesting theme for advertisers and
specialists has appeared to comprehend online consumer behavior. So as to
comprehend online consumer behavior, different models and structures have been
inferred by academicians and analysts. These models are of different elements which
are variable in nature. Since E-retailing and online consumer behavior are always
creating wonder with innovative headways, the factors are continue adjusting so as the
models. The key target of this thorough audit is to examine development of online
consumer behavior models related to the adjustment in factors. This audit additionally
makes future specialists in comprehension and picking most progressive models
dependent on their materialness of factors in wording factors influencing on the web
consumer purchasing behavior. For this examination, course readings and research
papers distributed were inspected. Key words: Online shopping, online consumer
behavior model, technology, E-retailing.
2.2 ONLINE CONSUMER BEHAVIOR
Consumer behavior is “how consumers think and behave when making purchase
decisions.” It is characterized as the investigation of understanding how the purchaser
settles on choice about spending his/her restricted assets, for example, time, exertion and
cash for acquiring. This definition is additionally pertinent in online customer conduct
aside from the utilization of innovation in buy choice. A purchaser choice to a great extent
administered by one's personal, social, psychological and cultural factors as shown in
Figure no.1
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Figure 1: Consumer decision flow
The Digital India program's vision is turning into a reality, where the present shoppers
have the intensity of taking buy choices in their grasp. With expanded utilization of
advanced mobile phones, an ever increasing number of organizations are beginning
applications for their items or administrations settling on basic leadership process quicker
and simpler. In view of this significant feature of online purchaser conduct can be whole
up as:

Factors affecting consumer behavior where shopping online

Technological factors of shopping online
Above mentioned factors are under uninterrupted change, the view of cognitive consumer
behavior model further supports these two aspects as depicted in figure no. 2.
Figure 2: Cognitive consumer behavior model
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2.3 THEORY OF REASONED ACTION
“The theory of reasoned action” (TRA), this was created from frame of mind investigate
from the Expectancy Value Models. Ajzen and Fishbein arranged the TRA in the wake of
endeavoring to rough the contrast among frame of mind and behavior. This TRA was in
connection to willful behavior. Later on, behavior appeared not to be 100% deliberate and
leveled out, this developed in the expansion of saw behavioral control. With this insertion
the theory was called the theory of planned behavior (TpB). The theory of planned
behavior is a hypothesis which foresees deliberate behavior, since behavior can be
determined and arranged.
Figure 3: Theory of reasoned action
TAM is based on the theory of reasoned action, Davis (1986). This model proposed that
the acceptability of an information system is determined by two main factors: perceived
ease of use (PEOU) & perceived usefulness (PU). Perceived usefulness refers to the
degree to which a person thinks that the use of a system will upgrade his performance.
Perceived ease of use refers to the degree to which a person thinks that the use of a system
will be easy.
Figure 4: Technology acceptance model
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While directing this examination, finding a coordinated, applicable and generally
acknowledged online customer conduct show was a test. It was set up that the
establishment of a large portion of the models was traditional speculations based of
Theory of reasoned action (TRA) and Technology Acceptance Model (TAM).
2.4 FUNDAMENTAL CONCEPTS OF ONLINE CONSUMER BEHAVIOR
“The 4S Web-Marketing Mix model”, the creator's commitment in the field of E-retailing
displayed the fundamental idea of advertising blend which was basic to carry on the
exercises of web showcasing. This new methodology of the web-showcasing Mix had
distinguished four S components to be specific degree, webpage, cooperative energy and
framework as appeared in figure no.5
Scope: Strategy & Objective
Market Analysis: Competition
basis, market potential, market
forecast, market trends
Potential Customers: Profiles,
motivation, behaviour, needs,
priorities
Internal Analysis: Internal
resources, processes, values
Strategic role of the web
activities:
Generic
typesEducational,
Relational,
Promotional, & Transactional
Site: Web Experience
What does the customer
expect in the site?
Domain name, content, design,
layout, atmosphere, aesthetics,
website positioning & the 4Ps
Why the customer will make
use of the site?
Simplicity, functionality, speed,
navigation,
interactivity
&
customization
What motivates customer to
come back?
System:
Technology,
Technical Requirements & site
Administration
Software,
hardware,
communication,
protocols,
content management, system
service, site administration,
hosting decisions, payment
systems, performance analytics
Synergy: Integration
Front
Office
Integration:
Integration with the physical
marketing
strategy
and
marketing activities
Back Office Integration:
Integration of the website with
organisational process, legacy
systems & databases
Third Party Integration
Create networks of partners who
will assist the commercial,
logistic & other site activities
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Figure 5: The 4S web-marketing mix model
"A descriptive model of online shopping process: some empirical results", The study
talks about the basics of web based shopping where the focal point of consideration was
on understanding web based shopping process. With regards to web based shopping the
normal issues, for example, how do online customers clarify their internet shopping
process? Is there a standard kind of web based shopping process? What is the degree of
one's internet shopping process? How do the hidden measurements impact online
customers' fulfillment with their online buys? Still the appropriate responses of these
issues stayed covert. The finding of this investigation dependent on top to bottom
meetings and a subsequent review distinguished three regular web based shopping parts:
intuitiveness, exchange, and satisfaction.
2.5 ROLE OF TRUST & ATTITUDE TOWARDS ONLINE BUYING
INTENSION
The role of trust and attitude is directly linked with consumer behavior so as an
important component in e-business success. When we talk about trust, the factors that
contribute for transaction trust are identified such as easy access to description & quality
of products and services, ease of placing orders, order confirmation, order tracking and
post-sales service, trusted seals, security and financial institutions. The emphasis was on
how websites can gain the trust of the buyers and deliver on the promises to lead long
term customer relationships. Privacy and security features of the website facilitate in
building trust which eventually leads to building bond.
Similarly attitude shift toward purchase intention by the consumer also contributed a lot
towards development of E-Retailing business
"A conceptual model of trust in the online environment", this examination explored
factors that affect of trust in E-retailing and introduced an integrative trust show. As
appeared in the figure no. 6 the model arranged different outer elements and inner
components. Trust was the key factor for rehash buys which in the end coordinated to
long haul responsibility.
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Figure 6: Trust model
2.6 THE DIGITIZATION OF EVERYTHING
“The digitization of everything how organizations must adapt to changing consumer
behavior” was a complete study on how the evolution has been occurring. Digitalization
of business is the key to survival in today's times. At the same time how we adapt to
changing consumer requirements & behavior is the key to success in e-retail business.
Organizations don't have a decision to be a piece of a continuous advancement
methodology. It took 10 years for the web to turn into an essential piece of our day by
day life yet in future will occur at a lot quicker pace. Most of total populace Generation
Y (the age conceived during the 1990s) who makes potential buyers and organizations
must address their advancing desires. Another term has taken birth 'Prosumer' that
implies purchaser who is keen on items/administrations of a brand and extra time to
transfer surveys about the item. There is a need to build up a start to finish advanced
technique and a total computerized working model that tends to providers and
representatives the same amount of as the clients. There is no denial that they have to
change their model based on the changing demand scenario and this change would be
just like IT development where the technology become obsolete so quickly.
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2.7 CONCLUSION
Internet shopping has left the strained period to another time of world where everyone
needs to part of online world. Essentially the emphasis was on structure 'trust' on internet
shopping site as there was substitution of sales rep of physical spot to another virtual
world. Trust prompts change in 'frame of mind' which impact buy expectation on the
web. Both these factors have changes over some undefined time frame. The most
evident elements of online purchaser conduct were/are saving money on schedule, cash,
endeavors stay steady inspirations. It has been seen that there is a solid requirement for a
basic incorporated model of online shopper conduct instead of convoluted models
accessible. The present purchaser is innovation shrewd and innovation upgradations are
self-learned.
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CHAPTER-3
RESEARCH METHODOLOGY
3.1 METHODOLOGY
A two stage Research was conducted:
3.1.1. Secondary Research
Information was drawn from websites of different e-retailing companies in order to
understand the services and features offered by the same. I also wanted to understand
and analyze the current scenario of e-retailing in India.
3.1.2. Primary Research
Primary Research was conducted through an online survey targeted at people of different
age group, income level and gender in order to understand their online shopping
behavior.
The questionnaire was prepared in order to get insights regarding:

Frequency of online shopping

Preference mode of payment

Features most liked

Products purchased most often

Sites mostly shopped from
3.2 SAMPLING PLAN
3.2.1 Elements
The target audience for the study included the people aged above 15 years. A sample
size of 100 was taken (only those aware about online shopping or e-retailing considered)
3.2.2 Sample size: 100 people.
The sample represent all the age groups (15-25, 26-34, 34-45 and above 45), occupation
groups (Service, Business, Students) and both the genders.
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CHAPTER-4
DATA ANALYSIS
4.1 DEMOGRAPHIC PROFILE
Respondents were asked regarding their name, age, sex, educational qualification and
annual income. The results are as listed below.
SEX
FREQUENCY
MALES
52
FEMALES
48
Table 1: Gender
Figure 7: Gender
The sample size for the research is 100, out of which 48% are females and the rest 52%
are males. Both these male and female are of different age group and have different
income level.
4.2 PROFILE OF RESPONDENTS ACCORDING TO AGE & STATUS
AGE STUDENT SERVICE BUSINESS PROFESSIONAL TOTAL
Below
1
0
0
0
1
18
18-30
31
31
12
7
81
30-45
0
2
4
4
10
Above
0
4
2
2
8
45
Total
32
37
18
13
100
Table 2: Profile of respondents according to age & status
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35
30
25
Below 18
20
18-30
15
30-45
10
Above 45
5
0
STUDENT
SERVICE
BUSINESS
PROFESSIONAL
Figure 8: Profile of respondents according to age & status
Majority of the respondents are service people and students that are within the age group
of 18-30 years. Next were the respondents of the age between 18-30 years who own a
Business (12) followed by Professionals (7) of same age group. The table also shows that
there is only 1 person below 18 years of age. There are in total 10 respondents who are in
the age group 30-45, and only 8 respondents who are more than 45 years old.
4.3 RESPONDENTS PROFILE ACCORDING TO MONTHLY INCOME
ANNUAL
FREQUENCY
INCOME IN RS.
0-5,00,000
7
5,00,001-10,00,000
26
10,00,001-15,00,000
18
Above 15,00,000
21
Dependent
28
Total
100
Table 3: Income group
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Figure 9: Income group
Majority of the respondents were from Dependent, closely followed by those who have
annual income ranging from 5,00,001 to 10,00,000. The above table shows very few, from
the income group less than 5,00,000. 39% of the respondents lied in the above 10,00,000
income group segment.
4.4 FREQUENCY OF ONLINE SHOPPING
RESPONSES
FREQUENCY
Frequently
32
Regularly
35
Occasionally
24
Rarely
3
According to the
6
need
Total
100
Table 4: Frequency of online shopping
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Figure 10: Frequency of online shopping
Most (35%) of the respondents make online purchase at least once a month followed by
32% of the Respondents who make purchase at least once a week. This shows that around
67% of the total respondents are frequent buyers and prefer online shopping than
traditional one. Out of all the Respondents, only 9% purchase stuff online once a year or
on the basis of their needs.
4.5 PURCHASES MADE THROUGH INTERNET
Figure 11: Purchases made through internet
Respondents were asked the items that they generally buy online. The results reveal that
the most bought items are Apparels, followed by Electronic goods, Books and Cosmetics.
As the disposable income in India is increasing, people have started spending more on
their clothes and gadgets, A very few number of respondents purchase furniture online and
household items online.
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4.6 PREFERENCES REGARDING E-RETAILING WEBSITES
Figure 12: Site preferences
Respondents were asked if they had brought any product through e-retailing. The results
show that, Most of the respondents prefer Amazon.com compared to Flipkart.com.
Whereas for Apparels Jabong.com is in the lead, preferred by 57 respondents followed by
Myntra.com which 51 respondents prefer. In case of groceries, 19 respondents prefer
Grofers.com and 14 preferred Bigbasket.com. Also it is apparent that shopclues.com is
only preferred by 8 respondents out of 100.
4.7 VIEWS ON BENEFITS DERIVED THROUGH E-RETAILING
Figure 13: Benefits derived
In this part of the questionnaire views of the respondents on the different products and
services available online was determined. The respondents were asked to specify their
views on the various enlisted statements. As we can see in the above figure, Most of the
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respondents (90%) shared the same view that convenience is the biggest benefit of
shopping online. Whereas 72% of the respondents feel it’s the variety of products that has
encouraged them to shop online, followed by availability of goods at cheaper rates and
discounts that they get on their every purchase.
4.8 PREFERRED MODE OF PAYMENT
Figure 14: Preferred mode of payment
In this part of the questionnaire views of the respondents on the preferred mode of
payment was determined. It is clear that 61% respondents preferred credit/debit card over
other modes of payment as it is more convenient than other options. Next was the cash
mode of payment. This is because consumer likes to pay only after checking whether the
goods received are in acceptable condition or not.
4.9 SAFETY WHILE SHOPPING ONLINE
Figure 15: Is online shopping safe
The respondents were asked whether they think that online shopping is safe or not. Most
of the respondents (57%) feel that online shopping is safe. Whereas 38% of the
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respondents feel that safety depends upon the E-retailing website from where they are
shopping. Out of 100 respondents only 5% feel that online shopping is not safe.
4.10 AMOUNT SPENT WHILE SHOPPING ONLINE
Figure 16: Amount spend in single transaction
RESPONSES
FREQUENCY
0-1000
10
1000-2500
25
2500-10000
36
10000-50000
22
Above 50000
7
Table 5: Amount spend in single transaction
Respondents were asked a question regarding the maximum amount that they spent on a
single purchase. 36% of the respondents spent around Rs. 2500-10000. Also we can see in
the above table that around 29% of respondents have spent more than Rs. 10000 in a
single purchase. Remaining 35% of respondents are those who have not spent more than
Rs. 2500 on a single purchase.
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4.11 IS DELIVERY TIME AN IMPORTANT FACTOR
Figure 17: Delivery time
The respondents were asked to rank delivery time as a factor in their decision to purchase
goods online, on the scale of 1 to 5, 1 being the least important and 5 being the most
important. As we can see 92% of the respondents have scored this factor 4 or more than 4.
This means Delivery time is a crucial factor while deciding to purchase goods online.
4.12 IS REPUTATION OF THE COMPANY AN IMPORTANT FACTOR
Figure 18: Reputation of the company
The respondents were asked to rank reputation of a company as a factor in their decision
to purchase goods online, on the scale of 1 to 5, 1 being the least important and 5 being the
most important. As we can see 94% of the respondents have scored this factor 4 or more
than 4. This means reputation of a company is also an important factor while deciding to
purchase goods online.
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4.13 ARE GUARANTEES & WARRANTY AN IMPORTANT FACTOR
Figure 19: Guarantee & Warranty
The respondents were asked to rank guarantees & warranty as a factor in their decision to
purchase goods online, on the scale of 1 to 5, 1 being the least important and 5 being the
most important. As we can see only 75% of the respondents have scored this factor 4 or
more than 4. Whereas there are still 25% of people who thinks guarantees & warranty are
not an important factor while deciding to purchase goods online, as they have scored it 3
or below.
4.14 IS PRICE AN IMPORTANT FACTOR
Figure 20: Price of products
The respondents were asked to rank price as a factor in their decision to purchase goods
online, on the scale of 1 to 5, 1 being the least important and 5 being the most important.
As we can see 87% of the respondents have scored this factor 4 or more than 4. Whereas
there are only 13% of people who thinks price is a neutral factor while deciding to
purchase goods online, as they have scored it 3. So we can conclude that After Reputation
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of the company and delivery time, Price is also an important factor while deciding to
purchase goods online.
4.15 IS SECURITY AN IMPORTANT FACTOR
Figure 21: Security
The respondents were asked to rank security as a factor in their decision to purchase goods
online, on the scale of 1 to 5, 1 being the least important and 5 being the most important.
As we can see 90% of the respondents have scored this factor 4 or more than 4. Whereas
there are only 10% of people who thinks security is a neutral or not an important factor
while deciding to purchase goods online, as they have scored it 3 or below. So we can
conclude that Security is an important factor while deciding to purchase goods online.
4.16 IS GOOD PRODUCT DESCRIPTION AN IMPORTANT FACTOR
Figure 22: Product description
The respondents were asked to rank product description as a factor in their decision to
purchase goods online, on the scale of 1 to 5, 1 being the least important and 5 being the
most important. We can see in the above graph that 76% of the respondents have scored
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this factor 4 or more than 4. Whereas there are 22% of people who thinks product
description is a neutral or not an important factor while deciding to purchase goods online,
as they have scored it 3 or below.
4.17 OVERALL SATISFACTION
Figure 23: Overall satisfaction
Respondents were asked whether they are satisfied with the experience of online shopping.
57% of the respondents are highly satisfied whereas 38% are somewhat satisfied and only
5 people said that they are indifferent, means neither satisfied nor dissatisfied.
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CHAPTER-5
DISCUSSION AND SUMMARY OF RESULTS
5.1 SUMMARY
In spite of an immense potential, long haul profitability of the e-retailing industry in India
is still under inquiry. After numerous long stretches of functioning, all the real e-retail
players are still yet to begin making benefits. In the wake of skinny edges and problematic
framework bringing about higher conveyance cost, the long haul benefit still appears a far
off plausibility.
Evolution of logistics in India will be a very significant factor in determining the route for
the e-retailing industry. Logistics evolution is required to realize the possible strong
growth.
Foreign Direct Investment (FDI) will also be a significant factor in designing India’s
future e-retail industry. Presently, global e-retailing giants are trying to get an entry into
Indian e-retail market. “Amazon has announced a two billion American dollar investment
operating on marketplace model.” FDI allowance can be a significant factor in attracting
huge investments that would lead to built of a better E-infrastructure and strong logistics
base in India.
The advancement of the present logistics suppliers and more players entering the 3PL area
will result in acknowledgment of the extensive capability of the e-retailing industry. Major
3PL players should be ready to the developing requests of the e-retailing industry along
these lines helping in rationalization of conveyance costs and furnish genuinely necessary
harmony between utilizing restricted logistics network and 3PLs. To take the alternative
and help the e-retailing industry to overwhelm infrastructural bottlenecks, reclamation of
the Indian Postal Service can be a distinct advantage. Coordinated effort of the solid lastmile ability with innovative up degree will facilitate the reliance on different methods of
transportation.
In the wake of taking an all encompassing perspective on the business patterns, Eretailing is guaranteed for an energizing time of blasting development in a time of three
to five years. This is relied upon considerable investments in supporting E-infrastructure
and innovative and game changing plans of action.
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5.2 RECOMMENDATIONS

In order to keep a check on the quality of products that are delivered and
manufactured by the E-retailing sites, the government should come with quality
certification for the same just like ISO 9000.

E-retailers should start spending more on advertising and promotions in order to
grab the attention of consumers and to create a differentiation with regard to their
competition.

The government should take steps in order to develop and improve E-infrastructure
facilities in India.

The government and the companies should organize E-retailing awareness
programs in order to educate consumers which would help them to increase their
acceptability and growth.

Government should also help E-retailing companies by providing sophisticated
infrastructure and by designing new policy to grow their business.
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CHAPTER-6
CONCLUSION

Majority of the respondents felt that customized good, quality & variety of
products were available through Internet. The
respondents perceived e-retailing
to be convenient as it was possible to order and receive the goods while sitting at
home without any sort of dependence on the middlemen.

Respondents were asked the preferred mode of payment and delivery. Majority of
those preferred credit card for payment and prefer faster delivery mode.

Most of the respondents viewed e-retailing to be on equal footing with retailing i.e.
they said that e-retailing was as good as traditional mode of
retailing and are
satisfied with their Online shopping experience.

95% of total aware respondents found e-retailing to be a beneficial mode of
retailing, because it provided various facilities to the consumer, viz. more variety,
cheaper goods. No hassles of physical purchase (transportation, traveling etc). The
companies were beneficial from their same product to more number of buyers;
they could develop and maintain good relations with new as well as existing
customers.

Responding to the questions on future of e-retailing, maximum respondents out of
those who were aware of e-retailing, responded that e-retailing can be very good
sale channel for electronic goods.

Next were the apparels, which can be sold effectively through Internet. Out of
total aware respondents of e-retailing majority of them viewed that most of the
companies will go in for e-retailing in future, so
as to maintain pace with the
changing environment and to reap benefits out of that.

The study concludes that e-retailing will completely spring up in coming years in a
developing country like India due to various efforts taken by the government and
also because the consumers have happily accepted and are using E-retailing sites to
fulfill their need.
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REFERENCES

http://en.wikipedia.org/wiki/E-retailing_in_India

http://www.business-standard.com/article/companies/5-things-you-didn-t-knowabout-india-s-E-retailing-industry-114111201035_1.html

http://timesofindia.indiatimes.com/tech/tech-news/Amazons-entry-has-fueledconsolidation-in-Indian-E-retailing/articleshow/38375470.cms

Constantinides E., (2002), “The 4S Web-Marketing Mix model”, Electronic
Commerce Research and Applications 1 (2002) 57–76

Chang Su-Jane., (2003),"A descriptive model of online shopping process: some
empirical results", International Journal of Service Industry Management, Vol.
14 Iss 5 pp 556 – 569

Srinivasan S., (2004),"Role of trust in e-business success", Information
Management & Computer Security, Vol. 12 Iss 1 pp 66 – 72

Mukherjee A. & et al, (2007), "Role of electronic trust in online retailing",
European Journal of Marketing, Vol. 41 Iss 9 /10 pp 1173 – 1202

Karjaluoto J., (2007),"A conceptual model of trust in the online environment",
Online Information Review, Vol. 31 Iss 5 pp 604 – 621 [8] Lim W., et al (2012),
“E-shopping: an Analysis of the Technology Acceptance Model”, Modern
Applied Science, Vol. 6, No. 4; April 2012.

Sharma R. & Mishra R., (2014), “A Review of Evolution of Theories and
Models of Technology Adoption”, IMJ, Volume 6 Issue 2
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APPENDIX A
QUESTIONNAIRE USED FOR COLLECTING INFORMATION
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