Beruflich Dokumente
Kultur Dokumente
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.
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
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
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.
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
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
6
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
7
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.
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%
Favorable demographics
Growth in income
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.
IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically
change buying behavior across the globe.
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.
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
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
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
13
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
"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.
14
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
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.
16
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
17
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
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
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
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:
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,
focus groups, independent observations and test results. Data gathered by the
Descriptive Research
STEPS in the descriptive research:
Statement of the problem
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.
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.
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%
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
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
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
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.
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
Sig.
.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
ore,past_experience,immidia assumed
te_delivery,personal_attentio
n)
COMPUTE
F5=mean(lack_of_tech_kno
wledge,unaware_of_online_
assumed
schemes)
COMPUTE
F6=mean(untrustworthiness
_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.
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-
Stop
with
the
Post.
eMarketer
Millennials-Social-Shares-Dont-Stop-with-
42
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
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