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INTRODUCTION

1.1 Introduction to retail industry


The India Retail Industry is the largest among all the industries, accounting for over 10 per cent
of the countrys 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.
The total concept and idea of shopping has undergone an attention drawing change in terms of
format and consumer buying behavior, ushering in a revolution in shopping in India. Modern
retailing has entered into the Retail market in India as is observed in the form of bustling
shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment
and food all under one roof.
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 factors in the growth of the organized Retail sector in India. The
growth pattern in organized retailing and in the consumption made by the Indian population will
follow a rising graph helping the newer businessmen to enter the India Retail Industry.
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. Indian retail is expected to grow 25 per cent annually. Modern
retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India
dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7
billion business, growing at over 20 per cent per year. The future of the India Retail Industry
looks promising with the growing of the market, with the government policies becoming more
favorable and the emerging technologies facilitating operations.
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THE INDIAN RETAIL SCENE


India is the country having the most unorganized retail market. Traditionally it is a familys
livelihood, with their shop in the front and house at the back, while they run the retail business.
More than 99% retailers function in less than 500 square feet of shopping space. Global retail
consultants KSA Technopak have once estimated that organized retailing in India is expected to
touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is estimated at around Rs
900,000 crore, of which the organized sector accounts for a mere 2 per cent indicating a huge
potential market opportunity that is lying in the waiting for the consumer-savvy organized
retailer.
Purchasing power of Indian urban consumer is growing and branded merchandise in categories
like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly
becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian
retailers need to advantage of this growth and aiming to grow, diversify and introduce new
formats have to pay more attention to the brand building process. The emphasis here is on retail
as a brand rather than retailers selling brands. The focus should be on branding the retail business
itself. In their preparation to face fierce competitive pressure, Indian retailers must come to
recognize the value of building their own stores as brands to reinforce their marketing
positioning, to communicate quality as well as value for money. Sustainable competitive
advantage will be dependent on translating core values combining products, image and
reputation

into

coherent

retail

brand

strategy.

There is no doubt that the Indian retail scene is booming. A number of large corporate houses,
Tatas, Rahejas, Piramals, GoenkaIs have already made their foray into this arena, with beauty
and health stores, supermarkets, self-service music stores, newage book stores, every-day-lowprice stores, computers and peripherals stores, office equipment stores and home/building
construction stores. Today the organized players have attacked every retail category. The Indian
retail scene has witnessed too many players in too short a time, crowding several categories
without looking at their core competencies, or having a well thought out branding strategy.

STRATEGIES, TRENDS AND 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 centres, 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. 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 India.
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 Indian 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 countrys GDP and around eight per cent of the employment retailing 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 to 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

Low share of organized retailing


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Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

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 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 development plans till 2007 is
studied it shows the 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.

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. Indias 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.
INDUSTRY EVOLUTION

Traditionally retailing in India can be traced to

The emergence of the neighborhood is Kiranas stores catering to the convenience of the
consumers

Era of government support for rural retail: Indigenous franchise model of store chains run
by Khadi & Village Industries Commission

1980s experienced slow change as India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures
to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers

Mainly in urban areas, with facilities like car parking

Targeted to provide a complete destination experience for all segments of society

Emergence of hyper and super markets trying to provide customer with 3 Vs - Value,
Variety and Volume

Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.

At year end of 2000 the size of the Indian organized retail industry is estimated at Rs.
13,000 crore

RETAILING FORMAT IN INDIA


Malls:
The largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common

roof.

Examples

include

Shoppers

Stop,

Piramyd,

and

Pantaloon.

Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
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segments

and

have

established

themselves

strongly

in

their

sectors.

Discount Stores:As the name suggests, discount stores or factory outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable/ non-perishable goods.

Department Stores:Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs.
Further classified into localized departments such as clothing, toys, home, groceries, etc.
Departmental Stores are expected to take over the apparel business from exclusive brand
showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in
Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even
has

its

own

in

store

brand

for

clothes

called

Stop.

Hyper marts /Supermarkets:Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food
& grocery organized retail sales. Super Markets can further be classified in to mini
supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500
sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock
a limited range of high-turnover convenience products and are usually open for extended
periods during the day, seven days a week. Prices are slightly higher due to the convenience
premium
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MBOs:
Multi Brand outlets, also known as Category Killers, offer several brands across a single
product category. These usually do well in busy market places and Metros.

INDIAS NUMBER OF DOMESTIC GROCERY CHAINS AND EARLY FOREIGN


ENTRANTS

RECENT TRENDS

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph

India is rated the fifth most attractive emerging retail market: a potential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes
up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at 24%

Ranked second in a Global Retail Development Index of 30 developing countries drawn


up by AT Kearney.

Multiple drivers leading to a consumption boom:


o

Favorable demographics

Growth in income

Increasing population of women

Raising aspirations: Value added goods sales

Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban

Phenomenon with affluent classes and growing number of double-income households.

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.

Rural markets emerging as a huge opportunity for retailers reflected in the share of the
rural market across most categories of consumption

ITC is experimenting with retailing through its e-Choupal and Choupal Sagar is
rural hypermarkets.

HLL is using its Project Shakti initiative is leveraging women self-help groups is
to explore the rural market.

Mahamaza is leveraging technology and network marketing concepts to act as an


aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically
change buying behavior across the globe.

E-tailing is slowly making its presence felt.


RETAIL SALES 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 to take place by ensuring
mere availability of his product. Today, retailing is about so much more than mere
merchandising. Its 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 is LimeLite, Marico Kaya Skin Clinic and Apollo Hospitals, Apollo Pharmacies are
examples, to name a few, where manufacturers/service providers combine their own
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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 are characterized by use of modern management techniques, backed 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 when market power shifts
to organized retail.
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 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
countrys 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.

1.2 Introduction to Online sector


India has an internet user base of about 243.2 million as of January 2014.Despite being third
largest userbase in world, the penetration of Internet is low compared to markets like the United
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States, United Kingdom or France but is growing at a much faster rate, adding around 6 million
new entrants every month. The industry consensus is that growth is at an inflection point.
In India, cash on delivery is the most preferred payment method, accumulating 75% of the eretail activities. However, COD may harm e-commerce business in India in the long run and
there is a need to make a shift towards online payment mechanisms. Demand for international
consumer products (including long-tail items) is growing much faster than in-country supply
from authorized distributors and e-commerce offerings.
As of Q1 2015, six Indian Startup company:

Flipkart

Snapdeal

InMobi

Quikr

OlaCabs

Paytm (One97), have managed to enter the Billion-Dollar club

Market size and growth


India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6 billion in
2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce
market is travel related. According to Google India, there were 35 million online shoppers in
India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. CAGR vis--vis
a global growth rate of 810%. Electronics and Apparel are the biggest categories in terms of
sales.
Key drivers in Indian e-commerce are:

Burgeoning broadband Internet subscribers, 3G penetration, and recent introduction


of 4G in few cities.
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Explosive growth of Smartphone users, soon to be world's second largest smartphone


userbase.

Rising standards of living as result of fast decline in poverty rate.

Availability of much wider product range (including long tail and Direct Imports)
compared to what is available at brick and mortar retailers.

Competitive prices compared to brick and mortar retail driven by disintermediation and
reduced inventory and real estate costs.

Increased usage of online classified sites, with more consumer buying and selling secondhand goods

Evolution of Million-Dollar startups


like Jabong.com, Saavn, Makemytrip, Bookmyshow, Zomato Etc.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by
2016 and $850 Bn by 2020, estimated CAGR of 7%. According to Forrester, the e-commerce
market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57%
between 201216.
As per "India Goes Digital",a report by Avendus Capital, a leading Indian Investment Bank
specializing in digital media and technology sector, the Indian e-commerce market is estimated at
Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion
(87%) of this market today. Online travel market in India is expected to grow at a rate of 22%
over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing
industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000
Crore ($11.8 billion) in 2015.
Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year
2015 with both online travel and e-tailing contributing equally. Another big segment in ecommerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.
CLOSURE

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Though the sector has witnessed tremendous growth and is expected to grow, a lot of ecommerce ventures have faced tremendous pressure to ensure cash flows. But it has not worked
out for all the e-commerce websites. Many of them like Dhingana, Rock.in, Seventy MM
amongst others had to close down or change their business models to survive.
INFRASTRUCTURE
There are many hosting companies working in India but most of them are not suitable for
eCommerce hosting purpose, because they are providing much less secure and threat protected
shared hosting. eCommerce demand highly secure, stable an protected hosting. Cyber security
issues of e-commerce business in India would be required to be managed by Indian e-commerce
stakeholders in the near future. In fact, Indian government is planning to introduce cyber security
breach disclosure norms in India very soon. Recently Target corporation suffered a cyber attack
that has put it under litigation threat in multiple jurisdictions. Trends are changing with some of
eCommerce companies starting to offer SaaS for hoting webstores with minimal one time costs.
There could be various methods of ecommerce marketing such as blog, forums, search
engines and some online advertising sites like Google adwords and Adroll.
India has got its own version Cyber Monday known as Great Online Shopping Festival which
started in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes

shopping and Makemytrip.

"Cyber

Monday" is a term coined in the USA for the Monday coming after Black Friday, which is the
Friday after Thanksgiving Day. Most recent GOSF Great Online Shopping Festival was held
during Dec 10 to 12, 2014.
In early June 2013, Amazon.com launched their Amazon India marketplace without any
marketing campaigns.In July, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India
to expand business, after its largest Indian rival Flipkart announced $1 billion in funding.
FUNDING
As of 2012, most of the e-commerce companies are yet to start making money. However, due to
their growth prospects, many venture capital firms such as Accel Partners have invested
considerably. In one of the biggest fund raising, Flipkart.com, till November 2014, has raised
about USD 2.3 billion. Entertainment ticketing website BookMyShow.com raised 100 crores
investment by Accel Partners.
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On 10 July 2013, Flipkart announced it had received $200 million from existing investors Tiger
Global, Naspers, Accel Partners, and ICONIQ Capital. New investors making up the additional
$160

million

include

Dragoneer

Investment

Group, Morgan

Stanley

Wealth

Management, Sofina, Vulcan Inc. and more from Tiger Global.


Snapdeal - USD 50 million in 13 April.
In February 2014, online fashion retailer Myntra.com raised $50 million from a group of
investors led by Premji Invest, the investment company floated by Azim Premji, Chairman
of Wipro. May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for 2,000
crores. However, cyber law and e-commerce due diligence are still being ignored by investors
and financial institutions while investing in India.
In October 2014, KartRocket, an Indian e-commerce platform, announced granting of a Series A
round led by technology investor Nirvana Venture Advisors and 500 Startups, together with
Tokyo-based Beenos, previously known as Netprice.com.
Regulatory violations and unfair practices
Legal issues of e-commerce in India are generally ignored by e-commerce websites. This may
change in the near future as foreign companies and e-commerce portals would be required to
register in India and comply with Indian laws. E-Commerce websites dealing with nutraceuticals,
Bitcoin, Ayurvedic products, online pharmacies, online payment, online poker, etc. are violating
laws of India.
Enforcement directorate (ED) of India has already initiated legal actions against companies
dealing with Bitcoins in India. Tax liability of foreign companies like Google, Facebook, etc. is
also under consideration in India.
Similarly, illegal online sales of prescribed drugs by illegal online pharmacies of India are also
under scrutiny of regulatory authorities of India.
Myntra, Flipkart and many more e-commerce websites are under regulatory scanner of ED of
India for violating Indian laws and policies. US-based transport application provider Uber Inc
has also been questioned by the service tax department of India. In January, 2015, the Kerala
Commercial Taxes Department imposed a fine of INR 54crore on Flipkart, Jabong, Vector ecommerce, and Robemall Apparels, for doing illegal business in the state.
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The Federation of Publishers and Booksellers Associations in India (FPBAI) has also
questioned the predatory pricing tactics adopted by various e-commerce websites in India. The
Confederation of All India Traders (CAIT) has also decided to approach the Competition
Commission of India to oppose the predatory pricing tactics of Indian e-commerce websites.
Demands for introducing suitable provisions to regulate taxation, anti competitive practices and
predatory pricing of Indian and foreign e-commerce websites have also been raised.

1.3 Introduction to the topic


When products offer by a firm to the customer whose attributes are unknown, customer can
purchase that product on the basis of experience of others who have used that product or
experienced it themselves. We investigate the learning process of customers at the time of
purchase new product and factors which affect buying decision of the customers. Consumer can
often confronted with new products whose benefits and costs are not fully known to them.
Consumers can learn about the by trying it; however, by doing so, they bear the risk that the
experience will be negative. Instead, consumers can wait and observe whether other customer
like the product.
What Is Showrooming and Webrooming?
According to techopedia, showrooming can be defined as the following:
"Showrooming is when a shopper visits a store to check out a product but then purchases the
product online from home. This occurs because, while many people still prefer seeing and
touching the merchandise they buy, many items are available at lower prices through online
vendors. As such, local stores essentially become showrooms for online shoppers."
And, here is a definition of webrooming by Dr. Gary Edwards from Empathica:
"Webrooming is the opposite behavior to 'showrooming.' With showrooming, retailers are faced
with the challenge of customers coming into the store to browse and test products, only to
subsequently go home and actually complete their purchase online (often through a competitor.)
Webrooming, on the other hand, is when consumers research products online before going into
the store for a final evaluation and purchase."

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Showrooming Vs. Webrooming


Up until recently, there was a lot of gloom and doom talk about how showrooming was eating
into the profits of retailers, and that there was nothing they could do to combat its impact.
However, retailers have fought back and employed several means to offset showrooming's
impact, and the result has been the rise of webrooming.
According to a Harris poll in the U.S., 69% of people webroom, while only 46% showroom.
Some of the primary reasons for this have been offline retailers understanding the importance of
omni-channel selling, resulting in the adoption of an ecommerce storefront, in addition to a focus
on providing a better in-store customer experience. Whether that's through tactics like
knowledgable sales staff, in-store pick-ups of online orders, in-store Wi-Fi, or smartphone
discounts nudging shoppers to buy in-store, webrooming is creating waves in retail.
A good question to ask is what is it exactly that makes customers want to come in-store to make
or complete a purchase? Luckily for us, a report by Merchant Warehouse had some great insights
to help us better understand the trend. According to them, here's a few reasons customers would
webroom over showroom:

47% don't want to pay for shippings

23% didn't want to wait for the product to delivered

46% like to go to a store to touch and feel a product before they buy

36% will ask the store to price match a better price found online

37% like the option of being able to return the item to the store if needed
In the next section, I'll look at how retailers can turn those pain points into opportunities for their
retail store and bolster their business with an online presence for a complete experience.
What Retailers Need to Do
So with all the changes in consumer shopping behaviours, I've compiles a list of the top three
things that you as a retailer can do to keep up in order to take advantage of both showrooming
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and webrooming trends in an effort to build better customer relationships and ultimately increase
your bottom line.
1) Go Omni-Channel: According to Retail Touchpoint's global survey of customers, 60%
believe that multiple retail channels including web, social, mobile, and physical retail will be the
norm for most stores. If you want to keep up with those expectations, Shopify makes it really
easy with our ecommerce and POS software.
Also, as a bonus incentive 56% of their respondents said they would spend more money at
physical retail stores if those locations enabled shoppers to browse through their merchandise
online first.
2) Engage Customers with Great Service and Incentives : Human interaction is still a vital
driver behind why consumers in certain cases still prefer to purchase products in-store versus
online.
For example, a 2012 Nielsen poll indicated that 69% of its respondents thought in-store
purchases were "most reliable," and 68% said it was the "easiest" and the "most convenient" way
to shop. Retailers can take advantage of this by increasing interaction between sales staff and
customers and making it easier than ever to return, exchange, or refund products.

REVIEW OF LITERATURE
2.1 Introduction
The growth of m-commerce has impacted dramatically on retailers and consumers. The
developments within m-commerce is subject to two major technological advances; the
growth surge of smartphones and instant high speed mobile internet access (ZHANG et
18

al, 2013). Mobile technology is influencing consumers in-store experience, their


shopper purchase process and their involvement in stores. Research by Elliott (2013),
Pantano (2013) and Ellen (2014) all confirm that the growth of m-commerce is redefining
retailers operations. Headland (2013) establishes that this is as a result of an increase in
smartphone holders and smartphone usage, with digitally connected consumers
accounting for 40% of all consumers. A report published by eMarketer (a) (2014)
foresees a 16% increase on e- commerce sales this year and a 3.6% increase of retail
sales; these are minuscule in comparison to the anticipated increase of 64.8% in mcommerce. There are many routes consumers can take in order to complete their
purchasing journey. These include omni- channel retailing, online retailing and shopping
through their digital device. Many retailers initially struggled to compete in this
technologically driven market, however with the introduction of smartphone applications,
mobile marketing, QR codes and iBeacons, physical retailers have the ability to gain a
competitive advantage by incorporating smartphones into innovative ideas.
2.2 Consumer Shopping Experience
Newell (2013) states that technology is establishing new opportunities for interactive
technologies to create entertainment and shopping experience. Research by Pantano
(2013) explains that ubiquitous retailing is becoming an integral part of retailers
innovations. Bagdare and Jain (2013) states customer experience is changing and
contemporary retailing is evolving. Many retailers have created a customer experience
rather than an exchange process. According to Deloitte (2014), by 2016 smartphones in
relation to consumer shopping experience could impact 15-18% of in-store sales; this is
worth an estimated 35-43 billion. Research illustrates innovation has become essential
for firms to gain a better position in the market. Innovative firms have moved away from
the traditional retailing and integrated more innovative techniques (Gonzlez, 2014).
Today retailers can be seen integrating technology into stores to create a differential
advantage with technology and online capabilities. Analysis of this topic identifies that
there are many factors retailers must consider to create effective in store technological
experiences. Investigation of this research identifies the demand for retailers to connect
with mobile-savvy consumers. Research by Jay Sang (2013) portrays the hedonic aspect
of retail is becoming a critical factor within retailers decisions of technology adoption.
As a result of changing consumers, Frazer (2014) demonstrates retailers must have the
19

ability to seamlessly create a shopping experience by merging online and offline


environments.
2.2.1 Omni-channel Retailing
Rigby (2011) reveals that retailers believe consumers will never disappear, however he
illuminates that the surge of omni-channel retailing is changing consumers shopping
objectives. The above research illustrates that retailers have the ability to impress many
target markets by integrating technological interfaces. As a result of technologically
savvy consumers, retailers have now integrated omni-channel strategies as part of a
necessity for retail success. Research conducted by Berthiaume (2013) determines
developing omni- channel technologies such as social media and mobile are redefining a
typical store. OBrien (2014) defends Berthiaume indicating that the world of omnichannel has diminished traditional styles of retailing. Jaiswal (2014) further enhances O
Brien and Berthiaumes research by displaying that omni-channel strategies allow
retailers to engage with consumers, whilst enhancing in-store experience. In contrast to
the above researchers, Headland (2013) has suggested that omni-channels are nonexistent, rather retailers understanding consumers behaviours in relation to emotions and
their infrastructural nature. Walker Smith (2013) specifies that retailing is no longer fixed
to physical stores or websites. As a result of growing technology retailing experience now
moves with the consumer as a result of mobile technology integration. Further research
by Deloitte (2014) discovers that consumers now expect more from retailers in order to
enhance their in store experience.

2.2.2 Low Energy Bluetooth/Beacons


Consumers in-store experience has dramatically changed as a result of mobile internet
devices (MIDs). Consumers readily use their MIDs and their accompanying software in
order to enhance their shopping experience (Spaid & Flint, 2014). Analyses of the above
research justifies that it is not enough for retailers to purely sell their products and
services, they must create an experience for consumers in order to compete in a tough
technological market. This is further reinforced by Balasescu (2013); stating retailers
need the ability to stand up against competition. Taylor (2014) reinforces the above
research by concluding that consumer experience is shifting due to mobile technology.
20

He found that retail stores have attempted to combat the new mobile era by incorporating
devices equipped with Bluetooth Low Energy (BLE) technology (beacons) into their
physical stores. In contrast to the above research Saettler (2014) founded that 80% of
signals received in accordance to the beacons are inaccurate. Saettler (2014) confirms
targeting capabilities are within the most reoccurring problems marketers faces on
mobile interfaces. Saettler (2014) establishes that although iBeacon technology is an
effective source for retailers, it is being implemented in less than 1% of retailers. This is
as a result of consumer readiness and lack of information on technological interfaces
(Elliott, 2013). In contrast to these limitations portrayed by Elliott (2013) and Saettler
(2014) retailers should be aware that iBeacons are relatively cheap. Whiteside (2014)
indicates that one of the major advantages of the iBeacon is the extensive platforms it
performs through, as it is available on almost every leading smartphone. However,
Whiteside (2014) further concludes iBeacons can disclose problematic features as many
retailers are aware of data protection and opt against accepting the terms and conditions
of consumers personal data. Consumers can turn off their bluetooth consequently
rejecting retailers messages or advertisements.
2.3 Consumers Shopping Process
Havas (2013) and Ellen (2014) both support the above research conducted by Spaid &
Flint (2014), Havas (2013) has demonstrated that for many of us the internet has become
an integral part of consumers shopping process. Research by Ellen (2014) reinforces
Havas (2013) by stating that shoppers are becoming Mobile First. This reveals
consumers incorporate mobile technology in their purchase decision journey. Research
indicates consumers are willing to move between technology, environments and
communities in order to complete their tasks. This is a result of social media platforms
and online browsing for cheaper alternatives. Consumers have become less loyal to
retailers due to multiple shopping channels. Consumers are now more focused on value
and are willing to browse to satisfy their needs. In contrast, Pantano (2012) implies that
technology usage within retailers is limited due to consumers readiness and acceptance
of new innovative technologies. It also has a major dependency on consumer s skills and
abilities. In contrast to the above findings, studies show that 43% of consumers are loyal
to retailers. Research portrays these consumers are less likely to browse or buy online.
However Goodall (2011) depicts these consumers are of an older age. Liao-Troth (2012)
21

signals this is a result of Generation Y consumers being reliant on technology.


Consequently it is important for retailers to change to meet demands in order to retain
and gain a greater consumer base. Wilson (2014) suggests online and mobile value within
Ireland will reach 5.9 billion in the retailing sector. This is a 13.4% increase since 2013.
2.3.1 Connected consumer
Headland (2013) proposes consumers have adapted to the new world of shopping; she
suggests that consumers particularly women incorporate technological platforms when
shopping. The digitally connected consumer has risen a staggering 10% from 30% to
40% over the last two years. Research by Goodall (2011) has proven that 57% of
shoppers are comfortable shopping around and browsing the internet for better value.
Research conducted by IBIS shows an increase of 8.6% per year in online revenue
(Metrics, 2014). Studies show that only a third of shoppers try clothes on in-store. They
browse stores and search online in order to find cheaper alternatives (Changing Ways,
2013). These results show that retailers need to be innovative with their ideas in order to
gain and retain consumers.
2.3.2 Showrooming vs. Webrooming
As research by Havas (2013) clarifies, technology has become an integral part of
consumer's shopping process. Showrooming has become a shopping phenomenon over
recent years; this is a process by which consumers incorporate their phone to make
comparisons online whilst shopping in store. Showrooming Boom (2013) indicates that
there was a major showrooming increase between 2012 and 2013 with showroomers
almost doubling. It is known to retailers as the showrooming boom with participants
increasing by 158% from 2012 to 2013. As a result retailers sales dropped, research by
Miller (2014) indicates that 45% of consumers will purchase online rather than in store
for as little as a 2.5% saving. However a staggering 60% of consumers will buy online for
a saving as low as 5%. An article published by It all adds up (2014) verifies that 30% of
all online purchases are as a result of showrooming. However, Baker (2013) signifies that
retailers need to work with new trends as opposed to seeing it as a threat. The growth of
technological interfaces allows the transition of online and offline become more fluid.
Retailers should target their online consumers by offering incentives in order to change
their shopping process. However, further analyses of showroomers indicate that
consumers are moving from this way of shopping and adopting the webrooming lifestyle.
22

Webrooming is browsing for products online and then going into physical stores to
purchase products rather than purchasing online (Vujanic & Goldstein, 2014). Merchant
Warehouse (2014) reveals that more consumers are adopting webrooming over
showrooming. Research identifies that males predominantly webroom as opposed to
showroom. Results of a survey conducted by Merchant Warehouse reveals 75% of males
webroom as opposed to 63% of females. However, although retailers have been majorly
impacted as a result of online capabilities, the growth of webrooming identifies an
opportunity for bricks-and-mortar stores. The introduction of webrooming has seen
showroomers participation decrease. As previously discussed 75% of males now interact
in webrooming this is in comparison to 53% that involve showrooming in their
purchases. It is also evident in female shoppers with 63% engaging in webrooming and a
mere 40% engaging in showrooming (Merchant Warehouse, 2014).
2.4 Consumer Involvement
The introduction of the Consumer & Shopper Journey (C&SJ, 2011) Framework by ECR
Europe enhances the clarity of the following authors research. This framework is
defined as The mapping of the behavior and decisions of a group of
consumers/shoppers, from consumption through to Purchase and Post Purchase.
Research conducted by Aubrey and Judge (2012) has indicated technology is changing;
reshaping consumers behaviours and expectations. Bodhani (2012) suggests retailers
need to bring online capabilities into stores to further involve consumers in order to
increase opportunities and sales. Research by Miller (2012) supports Bodhani (2012) by
implying retail environments are now becoming an extension of the online world.
Simpson & Lobaugh (2014) identifies that digital technology influences 36% of retail
sales. This is expected to increase by a massive 50% before the end of 2014. Consumers
are increasingly using digital advances within their shopping journey. Smartphone
devices alone account for 19% of retailers overall sales. In order for retailers to compete
in a competitive market they need the ability to integrate innovative ideas into their stores
in order to further involve participation of consumers in-store. The article published by It
all adds up (2014) further specifies that 38% of consumers are willing to share their
mobile details with retailers in order to receive better deals. Research by Mki (2012)
shows that consumer involvement may disrupt service efficiency as no two consumers
require identical service.
23

2.4.1 Mobile Marketing


Research by Jones (2014) enlightens Havas (2013) identifying that technology has
created challenges for consumers. Theorists such as Ellen (2014), Newell (2013), Pantano
(2012, 2013) and Elliott (2013) imply that consumers are now using technological
interfaces to engage with retailers, it is vital that retailers ensure essential incentives to
increase consumers in-store involvement. Hamstra (2014) establishes that consumers who
receive in store beacon messages are 19 times more likely to interact with this particular
product. Although 19% of consumers have admitted that their shopping process within
retail stores has decreased as a result of mobile technology, 22% have increased their instore engagement (Jones, 2014). These results confirm that retailers have the ability to
use online capabilities to their advantage. Growth in mobile technology has seen the
surge of Quick Response (QR) codes and in-store apps. These mobile interfaces allow
consumers in stores to interact with online capabilities. Jay Sang (2014) indicates that as
a result of the growth splurge retailers should engage in mobile marketing in order to
build sustainable and profitable relationships with mobile-savvy consumers. Jaiswal
(2014) displays that early adopting retailers can take advantage of executing campaigns
that is in the hands of consumers. Jaiswal (2014) reveals that whilst 90% of retailers use a
mobile platform to advertise, retailers lack engagement as only 48% are actively using
mobile connections to become involved with their consumers.
2.4.2 Smartphone Applications Spaid & Flint (2014) have identified that consumer
shopping patterns have been fostered by software applications that assist consumers with
a variety of shopping processes. These applications are also a motivational tool for
retailers in order to change point-of-sale displays. Research illustrates that retailers
should incorporate and customise in store apps in order to meet and exceed customer
needs and expectations. In order to increase consumer involvement it is not enough for
retailers to simply have a presence online; they must merge online and mobile together to
impact on in store involvement (Brinker, Lobaugh & Paul, 2012). In contrast to the
above, a report published by eMarketer (b) (2014) suggests that although mobile
applications is where users spend most of their time, consumers use mobile phone
websites to purchase.
Example: US retailer Macys has incorporated a new feature onto their mobile app in
order to enhance consumer involvement whilst in store. The new indoor GPS feature
offers directions to consumers; it provides turn-by-turn directions in Macys massive
24

NYC flagship store. This app created by Meridian also allows consumers to Receive
brand offers based on where they are located within the store. (Fiegerman, 2012)
2.5 Conclusion
Research by many theorists including Ellen (2014), Pantano (2013), Elliott (2013) and
Newell (2013) has proven that mobile commerce is constantly developing which has a
major impact on both consumers and retailers. The above theorists identify that mobile
technologies have reshaped and redefined consumers shopper journey in terms of
experience, purchase process and involvement. Reports published from organisations
such as Deloitte and eMarketer have further reinforced the above authors as they provide
statistical figures enhanceing the research found. Consumers expectations are
developing along with mobile commerce, however it has been identified by Pantano
(2012) that consumers may not be aware of online capabilities due to lack of
technological knowledge. Therefore it is important for retailers to consider the simplicity
of technology implementation in stores. This will enhance the overall positivity of
consumer experience, purchase process and product involvement whilst using
technological interfaces.

RESEARCH METHODOLOGY

3.1 Objective
To find what percent of the respondents do webrooming
To interpret whether webrooming is threat or opportunity for online stores
To find the various factors that entice to purchase from a store instead of online
shopping
To find the effect of demographics on the various factors
3.2 Statement of the Problem
According to many theorists such as Ellen (2014), Elliott (2013), Headland (2013), Newell
(2013) and Pantano (2013) shopping is dramatically changing consumers buying behaviour.
Kourouthanassis & Giaglis (2012) define mobile commerce as services that are available whilst
consumers are on the move. Research conducted by Aubrey and Judge (2012) has indicated that
technology is changing and reshaping consumers behaviors and expectations. There is pressure
25

on retailers to create effective in store experiences for the shopper as consumers are well
informed as to the capabilities of retailers, as a result of new social technology platforms. Newell
(2013) also states that changes in technology are progressively linking in with consumers as
retailers are aware that physical conditions in- store impact on sales. Burdett and Mader (2014)
support the above research by stating that consumers now integrate technology such as their
online shopping experience in order to effortlessly compare products in-store with products
online.
3.3 Hypotheses
H1o= There is no significant difference between easiness in reach & trial, trust factor, visit
personally in store, monetary factor, knowledge factor, accountability factor on the basis of
qualification.
H2o= There is no significant difference between easiness in reach & trial, trust factor, visit
personally in store, monetary factor, knowledge factor, accountability factor on the basis of
profession.
H3o= There is no significant difference between easiness in reach & trial, trust factor, visit
personally in store, monetary factor, knowledge factor, accountability factor on the basis of
gender.
3.4 Research Process
The research process has four distinct yet interrelated steps for research analysis it has a logical
and hierarchical ordering:

Determination of information research problem.


Development of appropriate research design.
Execution of research design.
Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and
on-going.

Exploratory Research
The method I used for exploratory research was
26

Primary Data

Primary Data
New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative or
quantitative data that are newly collected in the course of research, Consists of
original information that comes
surveys,

from people and includes information gathered from

focus groups, independent observations and test results. Data gathered by the

researcher in the act of conducting research.


This is contrasted to secondary data, which entails the use of data gathered by someone other
than the researcher information that is obtained directly from

first-hand sources by means of

surveys, observation or experimentation. Primary data is basically collected by getting


questionnaire filled by the respondents.

Descriptive Research
STEPS in the descriptive research:
Statement of the problem

Identification of information needed to solve the problem


Selection or development of instruments for gathering the information
Identification of target population and determination of sampling Plan.
Design of procedure for information collection
Collection of information
Analysis of information
Generalizations and/or predictions

Data collection
Data collection took place with the help of filling of questionnaire. The common factor in all
varieties of the questionnaire method is this reliance on verbal responses to questions, written
or oral. I found it essential to make sure the questionnaire was easy to read and
understand to all spectrums of people in the sample.
The first-hand information was collected by making smart phone users fill the questionnaires.
The primary data collected by directly interacting with them. The respondents were contacted at
their place.
The data was collected by interacting with 162 users of smart phone, respondents who filled the
questionnaires and gave me the required necessary information. The required information was
27

collected by directly interacting with these respondents. Respondent plays an important role in
getting useful information regarding the project.
The questionnaire for collecting information from respondents comprises of two parts. The first
part collects the personal information , i.e Age, Gender, Qualification and Profession. The
second part is intended to collect research information based on different varialbles. This process
was done by doing IN DEPTH INTERVIEWS with the respondants.

Sampling Process:
While conducting the project work, population that researcher are interested in. As a result,
researchers use gather data. The sampling is the process by which researchers select a
representative part the population that can be studied for regarding the entire population. For the
report the survey population refers to NIT Kurukshetra & Kurukshetra University. The sample
refers to research and the sample sizes were 162.

Limitations of the study


Interviewer error
There is interviewer biasness in the questionnaire method. Open-ended questions can be biased
by the interviewers views or probing, as interviewers are guiding the respondent while the
questionnaire is being filled out.
The attitudes the interviewer revealed to the respondent during the interview can greatly affect
their level of interest and willingness to answer openly. As interviewers, probing and
clarifications maximize respondent understanding and yield complete answers, these advantages
are offset by the problems of prestige seeking, social desirability and courtesy biases.
Questionnaire error
The questionnaire designing has to be careful so that only required data is concisely reveled and
there is no redundant data generated. The questions have to be worded carefully so that the
questions are not loaded and does not lead to a bias in the respondents mind.
28

Respondent error
The respondents selected to be interviewed were not always available and willing to cooperate
also in most cases the respondents were found to not have the knowledge, opinion, attitudes or
facts required additionally uninformed response errors and response styles also led to survey
error.

Sampling error
I have taken the sample size of 162 people among them to find those who have browsed online
and purchased from store, which cannot determine the buying preference of the total population.
The sample has been drawn from only NITK & KUK only.

29

DATA ANALYSIS
Data analysis is a practice in which raw data is ordered and organized so that useful information
can be extracted from it. The process of organizing and thinking about data is key to
understanding what the data contains and does not contain. There are a variety of ways in which
people can approach data analysis, and it is notoriously easy to manipulate data during the
analysis phase to push certain conclusions or agendas. For this reason, it is important to pay
attention when data analysis is presented, and to think critically about the data and the
conclusions which were drawn.
Raw data can take a variety of forms, including measurements, survey responses, and
observations. In its raw form, this information can be incredibly useful, but also overwhelming.
Over the course of the data analysis process, the raw data is ordered in a way which will be
useful. For example, survey results may be tallied, so that people can see at a glance how many
people answered the survey, and how people responded to specific questions. There are various
tools and techniques available for the analysis of primary data collected through structured
questionnaire. Based on the objectives of the study various tools and techniques have been used
for the analysis of collected data. In the present study, ANOVA, factor analysis and t-test have
been employed with the help of SPSS 16.0.

Results and Findings


Research provides relevant data to help solve marketing challenges that a business will most
likely face--an integral part of the business planning process. In fact, strategies such as market
30

segmentation (identifying specific groups within a market) and product differentiation (creating
an identity for a product or service that separates it from those of the competitors) are impossible
to develop without market research.
DEMOGRAPHIC
1.Among the sample of 162 respondents 76 were male and rest 86 were female.which as shown
by following table:
GENDER
Percentage
Male
47%
Female
53%
2. From the sample of 162 respondents, 32 were undergraduate, 42 were graduate and rest 88
were post graduates or higher as shown below:
Qualification
Undergraduate
Graduate
PG or higher

Percentage
20%
26%
54%

3. Among 162 respondents, 120 were students and rest 42 were working respondents as
supported by following table:
Profession
Student
Working

Percentage
74%
26%

Q1. What form of shopping do you prefer?

31

52

shopping
preference
online

110

in store

Interpretation:1. In are research, we find that more customer would like to purchase from the physical store.
2. Almost, 68% respondents preferably like to purchase the product from in-store. So many
reasons are their for this credibility of retail stores(which will discuss in next parts).
3. Almost, 32% respondents like to purchase from online shopping websites like jabong, ebay,
flipkart, snapdeal, mytra etc. They check out the various schemes prevailing on different
websites for change in the product, price or discounts etc and buy form online portals preferably.
4. It shows that more customer believe on retail stores in comparison to
the online shopping portals.
Q2. Do you consider yourself a brand loyal customer?

32

56

brand loyalty
yes

106

no

Interpretation:1. It shows that 65% respondents do not consider themselves as brand


loyal customer. They switch their brand as per their convenience depending on the cost and
benefit basis.
2. 35% respondents consider themselves as loyal customers which means
they do not get affected by price or schemes of other brands of the product. They just go and
purchase the same brand towards which they are loyal.

Q3. Have you ever browsed online and purchased from retail store ?

33

46

ever done
webromming
yes
116

no

Interpretation:1. It is the most important factor which directly connected with the
objective of the study. It is called webrooming when customers browse online and buy from a
physical store thereon.
2. 72% respondents said YES, they have done webrooming at least once.
3. 28% respondents said straight NO. it means either these people directly
buy from a store with any browsing or they directly do online shopping

TEST TO CHECK WHICH FACTORS VARY WITH DEMOGRAPHIC


Oneway ANOVA by using profession
The various factors in the table are following: F1= easiness in reach & trial
F2= trust factor
F3= visit personally in store
F4= monetary factor
F5= knowledge factor
F6= accountability factor

34

COMPUTE

Between Groups
F1=mean(convenience,avail Within Groups
ability,tangibility,trial_ability) Total

Sum of Squares
.814
66.402

df
1
114

67.216

115

Between Groups
Within Groups

1.590
51.515

1
114

Total

53.106

115

Between Groups
Within Groups

.700
39.549

1
114

Total

40.249

115

Between Groups
Within Groups

1.131
86.361

1
114

Total

87.491

115

Between Groups
Within Groups

.102
86.976

1
114

Total

87.078

115

F6=mean(untrustworthiness

Between Groups
Within Groups

3.833
47.282

1
114

_of_online_retailing,aftersal

Total

51.115

115

COMPUTE
F2=mean(trust_on_retail_st
ore,past_experience,immidi

Mean Square
.814
.582

F
1.397

Sig.
.240

1.590
.452

3.519

.063

.700
.347

2.019

.158

1.131
.758

1.493

.224

.102
.763

.133

.716

3.833
.415

9.241

.03

ate_delivery,personal_attenti
on)
COMPUTE
F3=mean(feel_the_ambienc
e_ofstore,satisfied_with_sho
pping_instore,visit_purchase
personally)
COMPUTE
F4=mean(cash_discount,pri
ce_lesser_than_online)
COMPUTE
F5=mean(lack_of_tech_kno
wledge,unaware_of_online_
schemes)
COMPUTE

es_customerservice,account
ability)

Interpretation:
1. This table reveals that there is no significance difference on the basis of

profession except in F6 i.e. accountability factor in the opinions of the


respondents
2. It shows that there is significance difference in the opinions of the

respondents on the basis of untrustworthiness of online retailing, after sales


& customers service and accountability. It means respondents, who are
related with different

profession (student, working) have different opinion

about the same above quoted factor. It can be due to the reason that
students are less concerned with the accountability as compared to the
working respondents.

As there exist a difference hence hypothesis is rejected.


35

One way ANOVA by using Qualification


ANOVA
COMPUTE

Between Groups
F1=mean(convenience,avail Within Groups
ability,tangibility,trial_ability) Total

Sum of Squares
1.508
65.708

df
2
113

67.216

115

Between Groups
Within Groups

.602
52.504

2
113

Total

53.106

115

Between Groups
Within Groups

.281
39.968

2
113

Total

40.249

115

Between Groups
Within Groups

7.979
79.513

2
113

Total

87.491

115

Between Groups
Within Groups

1.266
85.812

2
113

Total

87.078

115

F6=mean(untrustworthiness

Between Groups
Within Groups

2.182
48.933

2
113

_of_online_retailing,aftersal

Total

51.115

115

COMPUTE
F2=mean(trust_on_retail_st
ore,past_experience,immidi

Mean Square
.754
.581

F
1.296

Sig.
.278

.301
.465

.648

.525

.140
.354

.397

.673

3.989
.704

5.669

.005

.633
.759

.834

.437

1.091
.433

2.520

.085

ate_delivery,personal_attenti
on)
COMPUTE
F3=mean(feel_the_ambienc
e_ofstore,satisfied_with_sho
pping_instore,visit_purchase
personally)
COMPUTE
F4=mean(cash_discount,pri
ce_lesser_than_online)
COMPUTE
F5=mean(lack_of_tech_kno
wledge,unaware_of_online_
schemes)
COMPUTE

es_customerservice,account
ability)

Interpretation:
1. This table reveals that there is no significance difference on the basis of qualification(UG,
Graduation, PG & higher) except in F4 i.e. monetary factor.
2. It shows that there is significance difference on the basis of qualification in the perception of
the respondents. It can be due to the different level of awareness of the respondents at different
stages of education .
Hence, hypothesis is rejected.
36

3. following table of POST HOC is showing where actually this difference is existing:
POST HOC TEST

Multiple Comparisons
Monetary Factor=mean(cash_discount,price_lesser_than_online)
Tukey HSD
(I) qualification

(J) qualification

Mean Difference

(I-J)
2.00
.75641*
3.00
.33333
2.00
1.00
-.75641*
3.00
-.42308
3.00
1.00
-.33333
2.00
.42308
*. The mean difference is significant at the 0.05 level.
1.00

dimension3

dimension2

dimension3

dimension3

Std. Error
.22476
.18757
.22476
.19695
.18757
.19695

Sig.
.003
.182
.003
.085
.182
.085

The table is showing that the difference is existing in the undergraduate and graduate
respondents. The difference can be due to the reason that the undergraduate respondents
are less concerned with the discounts or price difference existing in the retail & online stores

37

Independent Samples Test


Levene's Test for Equality of
Variances
F
COMPUTE

Sig.

t-test for Equality of Means


T
Df
Sig. (2-taile
-1.223
113
.
-1.205
95.951
.

Equal variances assumed


F1=mean(convenience,avail Equal variances not
ability,tangibility,trial_ability) assumed

.527

.469

COMPUTE

.012

.911

-1.920
-1.932

113
103.624

.
.

.704

.403

-1.575
-1.590

113
104.737

.
.

1.353

.247

.227
.223

113
94.425

.
.

5.795

.018

.726
.685

113
78.427

.
.

.584

.446

-1.424
-1.410

113
97.666

.
.

F2=mean(trust_on_retail_st

Equal variances assumed


Equal variances not

ore,past_experience,immidia assumed
te_delivery,personal_attentio
n)
COMPUTE

Equal variances assumed


F3=mean(feel_the_ambienc Equal variances not
e_ofstore,satisfied_with_sho assumed
pping_instore,visit_purchase
personally)
COMPUTE
F4=mean(cash_discount,pri
ce_lesser_than_online)
COMPUTE

Equal variances assumed


Equal variances not
assumed

F5=mean(lack_of_tech_kno

Equal variances assumed


Equal variances not

wledge,unaware_of_online_

assumed

schemes)
COMPUTE
F6=mean(untrustworthiness

Equal variances assumed


Equal variances not

_of_online_retailing,aftersale assumed
s_customerservice,accounta
bility)

Interpretation:
1.The table is depicting that there is no significant difference b/w the opinions of the male and
female respondents.
Hence the hypothesis is accepted.

CONCLUSION
38

1.Here, I found that mostly customer prefer shopping from a physical store. Study stated that68%
respondents preferably like to purchase the product from in-store which clearly supporting that
webrooming is an opportunity for retail stores.
2. As in present scenario customer is the king of market. Customer is not dependent on the
suppliers rather the suppliers are dependent on the customers. In the study, I found that 65%
respondents do not consider themselves as brand loyal customer. They wait for decrease in price,
taking feedback from family, friends, colleague and gathering the information from newspaper,
email, internet, T.V. advertisement, word of mouth and other sources like pamphlets and switch
when they want.
3. The study states that 72% respondents said yes they have done webrooming at least once
which clearly means that even after browsing from online customer prefer to buy from a retail
store. They switch their brand as per their convenience depending on the cost and benefit basis.
4. They have positive thinking about browsing the products online and then buy from a physical
store. It increases opportunity for the users & retailers both. It also helps in getting new
innovation in technical world plus shopping from an approachable and credible place. Internet
Industry is a fast moving industry. It is growing day by day and much revenue for the future
growth. But still most of the customers wish to buy from a on retail stores as my respondents
have stated.
5. Customer purchase decision affected by which sector he or she does. Students or working,
respondents have same opinion about the factor that entice to buy from a retail store in
preference to an online store.
6. On the basis of gender there does not exist any significant difference b/w the opinions of male
and female respondents.

7. On the basis of qualification( UG, Graduates, PG or higher) there exists a significant


difference b/w the opinions of the respondents and the difference existed in last factor i.e.
39

availability factor. By applying post hoc tool, I found that the difference existed in the opinions
of undergraduates and graduates.
8. On the basis of age we found that, customers have same opinion about factors that may entice
purchase from a retail store instead of buying from an online portal. So, through the help of our
study we can say that customers still less risk taker. They have some believe in their mind to
have some assurance from the physical retail stores.

RECOMMENDATIONS
40

1. Advertisement should be done of the retail stores also and the theme of the whole ad campaign
hould be unique and according to the target customer. It must carry more reliable information
about the product. This helps in giving assurance to customers.
2. For targeting different kind of sectors use different channels for creating information about the
new product and information should be useful for every sector.
3. Price should be near to the competitor and features should be more.
4. Multichannel/ omnichannel experience should be given to the consumers because consumers
are more willing to shop through multiple shopping channels to make a purchase. It has been
identified that it is vital for retailers to be innovative with technological platforms in order to
increase consumers shopping experience. However, it has been illustrated that some consumers
lack technological knowledge, as a result the positivity of their shopping experience is impacted.
It is within the retailers best interest to make the transition between online and offline
capabilities as smooth as possible in order to create an indisputable shopping experience for
consumers.
5. The criterion set before conducting this research was consumers within Generation X. These
are less technologically savvy consumers; I feels that further more research should be conducted
to supports this statement. Therefore, I recommends that further research of this topic should be
conducted on Generation Y as it will allow a deeper insight as to how Internet/technologies is
affecting the older consumer market.
6. The secondary research investigated exposed that technology is consistently advancing; a
report published in July by Kyrkos (2014) founded that consumers were adapting to
boomrooming. This is whereby consumers adapt both showrooming and webrooming and
intertwine them in order to proceed in purchasing. These is a process were consumers search
products online, then advance to stores in order to see the product but return online to make the
purchase. As a result of this recent finding the author would further recommend that retailers
monitor new market trends and ensure they implement effective technology strategies as opposed
to technological strategies that will be obsolete in the near future.

REFERENCE
41

1. Kyrkos, L, 2014, Boomerooming- Bad News for Bricks and Mortar Retailers,
redsnapper, viewed online 14 August 2014.
2. Frazer, M, & Stiehler, B 2014, 'OMNICHANNEL RETAILING: THE MERGING OF
THE ONLINE AND OFF-LINE ENVIRONMENT', Global Conference On Business &
Finance Proceedings, 9, 1, pp. 655-657, Business Source Complete, EBSCOhost, viewed
4 June 2014.
3. Wolny, J., & Charoensuksai, N. (2014). Mapping customer journeys in multichannel
decision-making. Journal of Direct, Data and Digital Marketing Practice, 15(4), 317326.
4. McALLISTER, C. W. (2014). U.S. Patent Application 14/311,215.
5. Rigby, D., Serow, E., Tager, S., & Cheris, A. (2014). Spotlight on technology.
6. DAvanzo, E., & Pilato, G. (2014). Mining social network users opinions to aid buyers
shopping decisions. Computers in Human Behavior.
7. Kemple, F. (2014). Analysing the changes in mobile technologies and how they have
impacted on consumer purchase behaviour in clothing retailers.
8. Malcolm, Hadley. Black Friday Arriving Early, on a Saturday. USAToday.com
(http://www.usatoday

.com/story/money/business/2014/10/30/black-friday-deals-all-

month/18169743/), October 31, 2014.


9. Millennials Social Shares Dont
(http://www.emarketer.com/Article/

Stop

with

the

Post.

eMarketer

Millennials-Social-Shares-Dont-Stop-with-

Post/1011360), October 24, 2014.


10. Mulpuru, Sucharita, with Vikram Sehgal, Carrie Johnson and Laura Naparstek. US
Cross-Channel Retail Sales Forecast: 2014 to 2018.
11. Forrester Research, September 3, 2014. OConnor, Mary Catherine. Can RFID Save
Brick-and-Mortar Retailers After All? Fortune.com (http://fortune.com/2014/04/16/canrfid-save-brick-and-mortar-retailers-after-all/), April 16, 2014. Q3 2014 Update
Retailers Who Get Mobile and Social Right Are Winning. MarketLive Performance
Index, vol. 26, October 2014.

12.Berthiaume, Dan. Toys R Us Details Holiday Omnichannel Moves; to Open 5 p.m.


Thanksgiving. Chain Store Age (http://www.chainstoreage.com/article/toys-%E2%80%98r-usdetails-holiday-omnichannel-moves-open-5-pm-thanksgiving), November 7, 2014.

42

13.Corporate Attitudes and Adoption Trends of Multi-Channel and Omni-Channel


Marketing. Platt Retail Institute, April 2013. Customer Desires vs. Retailer Capabilities:
Minding the Omni-Channel Commerce Gap. Forrester Research, January 2014. Available at
http://www.accenture.com/us-en/landing-pages/Documents/ Seamless/Accenture-hybrisForrester-new_2014.pdf (accessed November 15, 2014).

WEBLINKS
1. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom
%20Default/mid/1508/ArticleId/1339/Default.aspx
2. http://www.dailyfinance.com/on/just-looking-fee-customers-showrooming/

3. want-a-seamless-shopping-experience-across-store-online-and-mobilethat-many-retailers-are-struggling-to-deliver.htm/

4. http://www.upi.com/Business_News/Consumer-Corner/2013/12/08/Webroomingbeats-showrooming-this-holiday-season/UPI- 41461386500460/
5. http://www.crmbuyer.com/story/81323.html
6. http://shodhganga.inflibnet.ac.in/
7. http://www.vccircle.com/news/technology/2010/08/19/e-commerce-india-are-weinflection-point
8. Amazon.com. Introducing Amazon Echo.
http://www.amazon.com/oc/echo?tag=googhydr-20
&hvadid=48044343062&hvpos=1t1&hvexid=&hvnetw=g&hvrand=17226
078227904649669&hvpone
=&hvptwo=&hvqmt=e&hvdev=c&ref=pd_sl_1t8dwhoszp_e (accessed
November 14, 2014).

Research questionnaire
Sex:

a)male

b) female

a) Student

b) Working

Age:
Profession :

c)Non-working
43

Qualification:
higher

a) Undergraduate

b)Graduate

c) Post Graduate or

1. What form of shopping do you prefer (in case of buying clothes)


a.) Online
b.) in-store
2. Do you consider yourself a brand loyal customer (in case of buying clothes)
a.) Yes
b.) No
3. Have you ever browsed online for purchasing clothes and continue to purchase from store
a.) Yes
b.) No

3.

if your answer was yes to above question; rate these factors (WHEN
YOU BROWSE ONLINE BUT ULTIMATELY BUY FROM PHYSICAL STORE)

S.No FACTORS
.

1.
2.

Strongly
disagree

disagree

neutra
l

agree

Strongly
agree

Convenience
Availability
44

3.
4.
5.
6.
7.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19

Tangibility(touch,color,feel)
Trial ability(size/ fitting)
Accountability
Trust on retail store
Price lesser .than online
Past experience
Cash discount
Immediate delivery
Personal attention
Unaware of online
schemes/offers
Satisfied with shopping in
store
Visit & then purchase
personally
Lack of technological
knowledge
Feel the ambience of the
store
Untrustworthiness of online
retailing
After sales and Customer
Services

45