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Abstract This paper surveys e-tailing, from essentially two disciplines: To understand the changing customer needs and the emerging challenges for the retailers to survive in the competitive environment of electronic retailing. The retailing industry has provided a tremendous growth and opportunities and has a prominent impact on the economy because of high volume of sales generated and the number of employment it has created. Retailers perform a variety of functions such as product assortment, providing information, handling merchandise and completing transactions. The innovations and developments in Information and communication technologies (ICT) have exposed huge opportunities as well as challenges for the retail market in India. The challenge for retailers is to harvest ICT as a means of expanding existing market share, entering new markets, forging alliances with business partners and to achieve greater customer satisfaction level. Therefore for a company to survive, it has become a necessity to explore new ways to provide better and enhanced services with considerate changing customer needs. In the absence of physical constraints on online space; new product, product information, customized layouts and offerings, marketing campaign etc. can be added at low marginal cost. However, there are several barriers, both technological as well as operational, that has to be addressed in delivering value through the format of e-tailing. Keywords - e-tailing, product assortment, merchandise, ICT, alliances. 1. Introduction India is developing rapidly and if development is to be measured, how can we ignore the role of e- commerce in it. The internet user base in India might still be a mere 100 million which is much less when compared to its penetration in the US or UK but it's surely expanding at an alarming rate. The number of new entrants in this sphere is escalating daily and with growth rate reaching its zenith it can be presumed that in years to come, customary retailers will feel the need to switch to online business. Insights into 1, 1. Hitesh Keserwani Assistant Professor, Amity Business School, Amity University, Lucknow Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 A STUDY OF E-TAILING CHALLENGES AND SUCCESS FACTORS IN INDIA – AN EXPLORATORY STUDY 1 Hitesh Keserwani 47

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Abstract

This paper surveys e-tailing, from essentially two disciplines: To understand the changing

customer needs and the emerging challenges for the retailers to survive in the competitive environment

of electronic retailing. The retailing industry has provided a tremendous growth and opportunities and

has a prominent impact on the economy because of high volume of sales generated and the number of

employment it has created. Retailers perform a variety of functions such as product assortment,

providing information, handling merchandise and completing transactions. The innovations and

developments in Information and communication technologies (ICT) have exposed huge opportunities

as well as challenges for the retail market in India. The challenge for retailers is to harvest ICT as a

means of expanding existing market share, entering new markets, forging alliances with business

partners and to achieve greater customer satisfaction level. Therefore for a company to survive, it has

become a necessity to explore new ways to provide better and enhanced services with considerate

changing customer needs. In the absence of physical constraints on online space; new product, product

information, customized layouts and offerings, marketing campaign etc. can be added at low marginal

cost. However, there are several barriers, both technological as well as operational, that has to be

addressed in delivering value through the format of e-tailing.

Keywords - e-tailing, product assortment, merchandise, ICT, alliances.

1. Introduction

India is developing rapidly and if development is to be measured, how can we ignore the role of e-

commerce in it. The internet user base in India might still be a mere 100 million which is much less when

compared to its penetration in the US or UK but it's surely expanding at an alarming rate. The number of

new entrants in this sphere is escalating daily and with growth rate reaching its zenith it can be presumed

that in years to come, customary retailers will feel the need to switch to online business. Insights into

1,1. Hitesh Keserwani Assistant Professor, Amity Business School, Amity University, Lucknow

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014

A STUDY OF E-TAILING CHALLENGES AND SUCCESS FACTORS

IN INDIA – AN EXPLORATORY STUDY

1Hitesh Keserwani

47

increasing demand for broadband services, rising standards of living, availability of wider product

ranges, reduced prices and busy lifestyles reveal this fact more prominently thereby giving way to online

deals on gift vouchers. Going by the statistics (CRISIL, 2014) the E commerce market in India has grown

at a swift pace in the last 5 years from around Rs 15 billion revenues in 2007-08 to Rs 139 billion in 2012-

13, translating into a compounded annual growth rate (CAGR) of over 56 per cent. 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 market will grow at a healthy 50-55 per

cent 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. The report also suggests that the industry's revenues is expected to be more than double to

around 18 per cent of organised retail by 2016 from around 8 per cent in 2013. Yet, its share of the overall

retail (organised + unorganised) pie will be just over 1 per cent. That compares with 9-10% in the US and

UK, and around 4-5% in China.

Figure 1.1: Market Share of E - Commerce Sectors in INDIA

Source: (CRISIL, Feb,2014)

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Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 48

Figure 1.2: Comp13)-Comparative Picture Of Overall Retail Market In India (2012)

Source (CRISIL Report, Feb,2014)

Overall retail market in India Rs 25,286 billion in 2012-13

Organised retail Rs 1,767 billion

7.0% of overall retail

Online retail

Rs 139 billion

7.9% of organised retail

0.5% of overall retail

2. Anticipated Growth in Internet Penetration

One of the major catalysts for e-commerce is the breadth of Internet penetration in a country.

According to the report (The rise and rise of e-commerce in India, IBEF, January, 2013). The current

penetration rate in India is at 10.1 per cent penetration rate, India has a huge Internet consumer base of

around 125.0 million (as of 2011), the third largest in the world after US and China. By end-2012, the

number of Internet users is expected to increase to 150.0 million. A study conducted by IMRB and

IAMAI observed that of the total 99.0 million urban Internet users, 80.0 million were active compared to

31.0 million active users out of the total 38.0 million in rural areas as of June 2012. At its current pace,

this number could multiply three-fold to nearly 380.0 million by 2015, surpassing the US and China.

Notably, rural India has witnessed a significant increase in penetration of active Internet users – from 2.1

per cent in 2010 to 3.7 per cent in June 2012. However, even with its large consumer base, just 1.0 per

cent of the total (less than 10.0 million Internet users) is engaged in e-commerce activities, thus

reflecting a huge untapped opportunity. This number is expected to touch 39.0 million users by 2015 as

Internet penetration increases and ecommerce becomes more secured.

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 49

Figure 2.1: Users by mode to access Internet

Mobile phones are also proving to be an important factor in the e-commerce ecosystem owing to

its easy compatibility with the Internet. India has more than 900.0 million mobile users, of which around

300.0 million use data services. This number is expected to touch 1200.0 million by 2015. Also, more

than 100.0 million mobile users are expected to use 3G and 4G connectivity in the coming few years of

the total 900.0 million mobile users, a meagre 27.0 million are active on the Internet. Moreover, only 4.0

per cent of the active mobile internet users buy products through mobiles. However, mobile shopping is

on upward trend and is expected to increase five–fold to 20.0 per cent in the medium term.

1Hitesh Keserwani

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 50

Figure 2.2: Online population across regions

Source:

State of e-commerce in India -

Sept 2012

Asia pacific has added over 43 million users and is growing in line with the 7%

worldwide growth rate. Europe and North America have grown at 8% and 3% respectively. Latin

America's user base in the month of July 2012 stood at 134 million and grew from 120 million in July

2011. The online user growth has primarily been fuelled with improved network infrastructure and

growing need of online content consumption. With a growing user base, the engagement among online

users has also grown in the last 12 months time spent has increased over 5.4% per visitor and pages

viewed has grown by 7% per visitor. With the growth of 41% online users, India has seen a growth across

demographic segments.75% of total users between the age group of 15-34 years. In July 2012, the female

population contributed to almost 40% of total users. With 75% of online audience between the age group

of 15-34 years, India is one of the youngest online demographic globally. A study conducted by IMRB

and IAMAI observed that seeing the current pace of active internet users, this number could multiply

three-fold to nearly 380.0 million by 2015, surpassing the US and China.

2.1 E-Commerce: Global Trend

E-commerce globally has been on the rise. Both travel and retail have grown faster than several

other categories in India. Travel visitation has an overall reach of close to 40% worldwide and has grown

over 12% Y-o-Y. Retail visitation has an overall reach of close to 72% worldwide and has grown over

13% Y-o-Y. More than a billion people worldwide visit retail sites every month. In India, Travel has

always been ahead of the curve in terms of visitation and a transaction compared to world averages and is

at 44% penetration and has grown over 41% from last year. Retail has grown 43% and reaches 60%

penetration among online users, but is still below world averages. This shows the immense potential that

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 51

the retail category holds in India with online retail filling the distribution and convenience gap. The

ecosystem to support growth in online retail has also evolved including improvement in logistics and

awareness among brands in making the products available online.

Figure 2.3: Growth in Travel and Retail Sector

Source: State of Ecommerce in India - Sept 2012

2.1.1 Travel:The top 10 sites among the travel category show a good mix of travel options as well as

information sites showing online users seeking information on travel options on a regular basis. 1 out

of 5 online users in India visit the Indian Railways site.

Figure 2.4: Top Ten Sites

Source:

State of Ecommerce in India -

Sept 2012

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Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 52

Figure 2.5: Top Retail Sites & Unique Visitors

Source:

State of Ecommerce in India -

Sept 2012

Indian Railways is also among the most visited sites in India with over 12 million unique

visitors a month. The diagram above shows that the overlap in the category among the top 3 OTAs in

India. MakeMyTrip, Yatra and Cleartrip individually reach over 11.6%, 8.3% and 3% of total online

users respectively. But due to strong duplication among the OTA's the unduplicated reach among the top

3 OTA's is 16.4% of total internet users. The same trend is seen among travel information sites and travel

data aggregators in India.

2.1.2 Retail:

Retail category penetration has increased to 60% reach and has grown to 37.5 million unique

visitors a month, an overall growth of 43% annually. The growth has come across all retail categories

and most of them show promising transactions and conversion rates along with growth in visitors.

The top retail sites shown above in India have each seen a growth of over 100% in the last 12

months.

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 53

Amazon is the most visited retail site with most of the traffic slipt among Amazon.com,

ImDB and Junglee.com. Flipkart leads the way among the online retailers in India with 7.4 million

unique visitors a month, growing at 431% annually. Snapdeal has been close second with 6.9 million

uniques. Jabong and Myntra have been competing closely in the lifestlye category with over 5.3 million

uniques each. HomeShop18 has over 4 million uniques a month.

2.1.3 Average transaction size

Vertical e-Commerce categories including baby products, apparel, shoes and other lifestyle

categories have also shown tremendous growth. Wider assortment and product availability have helped

these retailers in growing business online. More retailers online have heavily depended on online

marketing to scale. The online marketing spends across all content categories and effective marketing

campaigns reaching out the right target audience have increased visitation and hence conversion among

retailers.

Figure 2.6:

Indian Payment Type Transaction Share

Source:

State of Ecommerce in India -

Sept 2012

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Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 54

Direct debit is the most commonly used payment type contributing to over 58% of the

overall payments in India. Cash on Delivery which has been a popular mode of payment method in retail

category and form close to 7% of the total transactions. Cash on delivery (COD) has a much higher

contribution among retail category with more and more online retailers using this option to increase trials

among customers. The average transaction size online in India across both Travel and Retail category is

$31 between Apr - Jun 2012. This amount is set to increase with consumer confidence in buying higher

priced products in the coming months.

2.1.4 Challenges for the retailers to survive in the competitive environment of electronic

retailing.

(i) Consolidation in the Retailing Industry Numerous retailers are facing imminent problems since they are unable to deliver high

levels of value relative to their more astute competitors. As a consequence, significant consolidation by big retailers is likely to take place.

(ii) Value Is KeySuccessful retailers are developing strategies that offer customers greater value over

competitors' and are sustaining them over time. To do so, they are focusing their energies on creating centres of excellence, such as connecting with their customers, being a leader in terms of the merchandise and assortment that they provide, and having excellent operations in place. Although retailers that provide value don't always do so at a low price.

(iii) Being InnovativeRetailers are more and more experimenting with their store formats. Additionally, they

are effectively designing and managing the various strategic levels to enhance the overall customer shopping experience. The problem with being known as an innovative retailer is that it can only remain innovative as long as its customers believe the innovations are fresh and exciting.

(iv) Cost Controls

Successful retailers, particularly those competing in the low price segment and many in The Big

Middle, are efficient and effective in integrating their suppliers, manufacturers, warehouses, stores, and

transportation intermediaries into a seamless value chain, in order to minimize system-wide costs, while

satisfying the service levels required by its customers. They are seeking out and using innovative

technology throughout their supply chains, to reduce costs and provide value for their customers. In the

last few years, retailers have invested in sophisticated merchandise optimization techniques that help

them make decisions about planning assortments, initial pricing, buying, allocation of merchandise to

stores, promotion, planning replenishment (rebuys), space management (planograms), and markdown

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 55

pricing. These techniques enable retailers to better control costs, buy, allocate, and promote the right

merchandise, and price and markdown merchandise. By utilizing these techniques, customers get what

they want, which translates into loyal customers and in many cases a competitive advantage.

2.2 Techniques to improve e-commerce business in India:

In the recent past, the India Government has significantly liberalized foreign direct investment

(“FDI”) in India. As per the regulations formed under the Foreign Exchange Management Act, 1999,

(“FEMA”) FDI is allowed on an automatic basis, (i.e. without any prior approval of the Ministry of

Commerce and Industry) upto a certain limit or fully, in most sectors. In July 2000, vide Press Note No. 7

(2000 Series), the Government has also allowed 100% FDI in e-commerce activities. However, this

investment is subject to the following conditions:

i). FDI is allowed only in companies engaged in B2B e-commerce activities and not in retail

trading; and

ii). 26% of the FDI has to be divested in favour of the Indian public within a period of five

years, if the companies are listed in other parts of the world.

Therefore, companies engaged in B2C e-commerce activities cannot obtain FDI on an

automatic basis. They would have to seek prior approvals from the Foreign Investment Promotion Board

under the Ministry of Commerce and Industry, which would consider such applications on a case-to-case

basis. The government of India has passed the Information and Technology Act to keep a check on the

transactions carried on via the electronic media and to make the process of Ecommerce safe and reliable.

The Act imposes heavy penalties and punishment on those who try to misuse this channel for personal

benefit or to defraud others. The law has also established the authentication of the electronic records.

Increase in the Cyber crime in e-commerce is causing concern among the credit card users in India. Now,

the government has opened Cyber Crime Police Station. Online complaints can be filed for both cyber

a n d N o n C y b e r c r i m e s , t h r o u g h a n o n l i n e f o r m w h i c h i s a v a i l a b l e a t

http://www.bcp.gov.in/english/complaints/newcomplaint.asp to accept complaints filed with digital

signatures. The Government of India has decided to impose service tax on e-commerce transaction and

that will result in making the net shopping expensive.

3. Research Methodology

The research has been conducted over a vast cross section of Metro and Non Metro cities of India.

To generate the response about the usage of internet and its associated services, questionnaire based

survey technique was used. Focused Group Discussion (FGD) was conducted to collect information on

the usage of the major services provided on the internet and the users' aspiration about them.

1Hitesh Keserwani

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 56

Pilot testing of questionnaire was done on a group of 50 respondents (internet users). Unwanted

and ambiguous questions were removed and some new alternatives were introduced in the questionnaire

after conducting the reliability analysis.

Sampling procedure used was multiple quota sampling. Quotas were formed on the basis of

relevant controlled characteristics like age, education and the nature of jobs.

The study has been performed only on the basis of primary data collected through survey.

Different scales like nominal scale, ranking scale, rating scale, 5 point Likert scale was used for

measuring various attributes. For measuring the attitude of internet users and the factors based on which

the customers select different services provided by internet, Likert scale was used.

It is evident from the above pie chart that approx. 50% of the respondents were from the age

group of 18-25 years and 30% belonged to the age group of 26- 40 yrs, thus making the total percentage

of respondents in the age bracket of 18-40 yrs. This sample composition is in tune with the assumption of

study, that the younger generation is more techno savvy as compared to the older generation, which is a

realistic assumption.

It was also found that 76.4% of the sample was well aware of the internet and its services, out of

which 37.2% belonged to the age group of 18-25 yrs and 21% of the age group in 26-40 yrs. (Refer Table

4.1)

4. Data Analysis

Figure 4.1: Age wise awareness of internet

Age Wise Distribution

50

30

10

10

18-25

26-40

41-50

>50

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014

Table 4.1: Awareness of internet

Age % not aware of Internet

% aware of internet Total

18-25 8.8% 37.2% 45.9%

26-40 11.5% 20.9% 32.4%

41-50 0.7% 9.5% 10.1%

>50 2.7% 8.8% 11.5%

Total 23.6% 76.4%

57

Nulls hypothesis and alternate hypothesis to show the association between age of

respondents and their awareness regarding internet and its services:

H :- There is no significant impact of age on the awareness of respondent towards internet and 0

its services.

H :- There is a significant impact of age on the awareness of respondent towards internet and 1

its services.

On testing it was found that there exists a strong association (Cramer V=0.523) between the age

and awareness of the respondent regarding internet and its services. This assumption (hypothesis) was

found to be correct at 10% level of significance. (Refer Table 4.2)

Nature of Job and Internet

To check whether there exists any association between the nature of job of the respondents and

his awareness to internet and its services, the following hypothesis were tested:

H :- There is no significant impact of nature of job on the awareness of respondent towards 0

internet and its services.

H :- There is a significant impact of nature of job on the awareness of respondent towards 1

internet and its services.

On further exploration, it was found that the people who work in private enterprises are more

prone to using internet and its services in their day to day working as compared to those in the

government sector over self employed. (Refer Table 4.3)

Table 4.2: Chi-square test

Value

d.f

Asymp. Sig. (2-sided)

Pearson’s Chi-Square 6.851

3

0.077

Therefore the null hypothesis is rejected.

1Hitesh Keserwani

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014

Table 4.3: Age and occupation of respondents

Age

Government

Private

Self Total

18-25

8.9%

20.3%

11.4% 40.5%

26-40

13.9%

12.7%

7.6%

34.2%

41-50

2.5%

7.6%

3.8%

13.9%>50

0%

8.9%

2.5%

11.4%Total

25.3%

49.4%

25.3%

58

After analyzing the data and testing the hypothesis it was also found that the

nature of job has a very strong association with the number of hours one uses the internet.

(Refer Table 4.4)

It was also found that the people employed in private sector showed the tendency of using

internet for more than 20 hours in a week whereas the majority of those employed in government sector

used internet for less than 5 hours.

Among the services provided by internet, chatting and email are most popular availed service

irrespective of age or qualification of the user. E-shopping is the least preferred service of internet (Refer

Table 4.5 [a] and 4.5[b]).

It was also found that the level of awareness regarding e-purchasing was found to be very low.

Since the mean is 2.0317 which shows poor awareness [1 signifies very poor awareness, 2.0317 is very

close to 1], (Refer Table 4.6)

Table 4.4: Chi-square test

Value

d.f

Asymp. Sig. (2-sided)

Pearson’s Chi-Square 14.091 4 .007

Therefore the null hypothesis is rejected.

Table 4.5 (a)

Mean Rank

Use For Email 2.77 Use For Chatting 2.50 Use For Surfing 2.55 Use For E buying 2.18

Table 4.5 (b): Kendall's Coefficient of Concordance

N

Kendall's W(a)

Chi-Square

Df

Asymp. Sig.

66

0.049

9.736

3

0.021

A Study Of E-tailing Challenges And Success Factors In India – An Exploratory Study

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 59

Table 4.6: Mean and standard deviation

N

Minimum

Maximum

Mean

Std. Deviation

Purchasing Habits on Net due to Online ads

221

1.00

5.00

2.0317

0.98806

Valid N (lis twise)

221

Studying the buying behaviour of the people who were aware of e-shopping concept discriminant

analysis was used to fit a model for the prospective e-shopper for various products under the assumption

that they were aware of e-shopping.

The model is:

Z= -3.155 + (-.427) Gifts + .370 Audio + .311 PCs + (-.256) Electrical Goods +.230

Jewellery + (-.205) Apparels + (-.170) Air/Rail Reservations + .136 Online Vacation + .069 Online Share

+ .062 FMCG + (-.046) Books. (Refer Table 4.7)

It was found that e-shoppers did maximum purchasing of gifts closely followed by

purchases in audio and PC segment.

Pooled within-groups correlations between discriminating variables and standardized

canonical discriminant functions Variables ordered by absolute size of correlation within function.a.

This variable not used in the analysis.The discriminatory model was found to be very efficient in classifying the e-shoppers

and non e-shoppers. (Refer Table 4.8)

Table 4.7: Structure MatrixFunction

1Orders for Gifts(a)

-.427Orders for Audio

.370Orders for PCs

.311Orders for Electrical Goods

-.256

Orders for Jewelry

.230Orders for Apparels

-.205Orders for Air/Rail Reservations

-.170

Orders for Online Vacation

.136

Orders for Online Share

.069Orders for FMCG

.062Orders for Books

-.046

Table 4.8: Wilks' Lambda

Test of Function(s)

Wilks' Lambda

Chi-square

d.f.

Sig.

1 .353 6.255 10 .793

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Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 60

Classification results for the model showed that it was able to classify the e-shoppers from the

non e-shoppers with 83 % efficiency.

Results also showed that the people growing in for e-shopping preferred this mode of purchasing

because they felt that they get products at cheaper prices but are apprehensive about the quality of the

product, which is the major deterrent in the popularity of e-shopping. E-shoppers preferred payments

through credit cards amongst all other modes of payment.

5. Findings

Looking at the results of the analysis done on the data collected the following conclusions can be drawn:-

·That awareness about internet and its services is 76.4% amongst 58.2% people in the age bracket

of 18-40. Further that internet usage is most common in people employed in private sector who

show a tendency of using internet for more than 20 hours in a week.

· Amongst all the services provided by internet chatting and email were found to be most popular

showing that e-purchasing is not so much preferred. The reason for this tendency was found out

to be that the people are apprehensive about the quality of the product sold on net, and

interestingly those percentages of people who prefer is only due to the cheap pricing of the

products and ease of payment.

·Those who make purchases through internet prefer to buy gifts, audios and PCs, however lack of

consumer trust in online transactions also becomes a hurdle in fulfilling online transactions at

times.

6. Conclusion

For promoting e-shopping as a medium for conducting business, the quality of the products

has to be increased and providing certain benefits like after sales service, guarantee and good

schemes. Online purchasing will popularize only if their dependability increase. Undoubtedly, the

power of the Internet to reach any part of the world holds terrific potential for enhancing

international trade and boosting global economy. Nevertheless, e-commerce is set to play a very

important role in the 21st century, the new opportunities that will be thrown open, will be accessible

to both large corporations and small companies. The role of government should be to provide a legal

framework for e-commerce so that while domestic and international trade are allowed to expand their

horizons, basic rights such as privacy, intellectual property, prevention of fraud, consumer protection

etc are all taken care of.

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Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 61

7. Limitation

The study explored the factors of consumer attitude in online shopping as taking sample of

experienced online consumers from both metro and non metro cities from a short period of time. So,

study may undertake more comprehensive work in similar dimensions like consumer satisfaction,

loyalty and retention etc.

The present study was focused towards understanding of consumer attitude towards online

shopping especially in Indian Market.

The present study focused on B2C transactions only. Similar studies can also be undertaken with

other types of transactions both internal and external.

Finally, the present study must be seen as a step further in understanding the subject of online

shopping and e-commerce transactions especially in the growing economy of the India. The findings of

this research strongly advocated the need for identifying consumer attitude and developing trust based

system towards the growth of any business transactions especially e-commerce.

8. Implication and Future Scope

As per the study conducted based on primary data and the data gathered from IAMAI website, the

following recommendations are proposed to boost up online shopping:

·Since people employed in private sector browse the internet the most, so they can be targeted as

the most potential customers who would be inclined towards e-purchasing. Therefore,

recommendation strategy (recommendation regarding various products like books, gifts,

jewellery, apparels, etc.) might increase the interest in buying.

·Further, for promoting e-shopping, customer should be provided convenience, value for money

or lower prices than the high street, ability to shop around for the cheapest item, and should be

less stressful.

·Since in study it was found that people do not prefer e-shopping as they are not confident on the

product quality. So, it is suggested that e-commerce websites must strengthen ordering process

and make it simple streamlined and fast.

·Also as the study revealed that the people of age bracket of 18-40 use the internet most and data

also highlighted that gifts followed by audio, PCs are purchased the most, so the strategy also

proposed to synergize the age bracket factor and purchase item factor to increase online selling

by e-marketers.

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1Hitesh Keserwani

Integral Review- A Journal of Management, Vol.7 No. 2, December 2014 62

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