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CHAPTER-1.......................................................................................................... 4
INTRODUCTION................................................................................................... 4
Introduction:....................................................................................................... 5
Ecommerce in Oman.......................................................................................... 5
Important factors influencing consumer preferences in Oman:..........................6
STATEMENT OF THE PROBLEM............................................................................ 7
NEED OF THE STUDY........................................................................................... 7
OBJECTIVES OF THE STUDY................................................................................. 8
LIMITATIONS OF THIS STUDY............................................................................... 8
CHAPTER-2.......................................................................................................... 9
REVIEW OF LITERATURE AND RESEARCH METHODOLOGY...........................9
LITERATURE REVIEW......................................................................................... 10
RESEARCH METHODOLOGY............................................................................... 11
Research design............................................................................................ 11
Data collection.............................................................................................. 11
Sample universe............................................................................................... 11
Sampling Technique:..................................................................................... 11
CHAPTER-3........................................................................................................ 12
THEORETICAL FRAME WORK...........................................................................12
Conceptual Framework of Online Shopping......................................................13
Online shopping............................................................................................. 13
History of Online Shopping............................................................................ 13
International e-commerce statistics..............................................................14
Customers..................................................................................................... 14
Product selection........................................................................................... 14
Product delivery............................................................................................. 15
ATTITUDE TOWARDS ONLINE SHOPPING...........................................................16
INTENTION TO SHOP ONLINE.........................................................................16
ONLINE SHOPPING DECISION MAKING...........................................................16
ONLINE PURCHASING..................................................................................... 16
CONSUMER SATISFACTION............................................................................. 17
BARRIERS TO GROWTH OF ONLINE MARKET....................................................18
Consumer Bias.............................................................................................. 18
Lack of Touch Feel-Try Experience..............................................................18
Mounting Competitive Pressures...................................................................18
Seasonality.................................................................................................... 18
Credibility in Payment System.......................................................................18
Untimely Delivery of Products.......................................................................18
Advantages of Online Shopping........................................................................18
Disadvantages of Online Shopping...................................................................19
CHAPTER-4........................................................................................................ 21
ANALYSIS AND INTERPRETATION...................................................................21
Q1: Gender of the respondents........................................................................22
Q2: Age of the respondents.............................................................................. 22
Q3: Educational of Respondents.......................................................................23
Q4: Occupation................................................................................................. 23
Q5. Annual Income................................................................................... 24
Q6: How often you use Internet........................Error! Bookmark not defined.
Q7: where do you frequently access Internet?.................................................25
Q8: Influence for use of the Internet.................................................................25
Q9: Internet usage gives a lot of benefits to personal life................................26
Q10: Product/commodity usually would you like to buy through online...........27
Q11: Maximum amount spent on online shopping...........................................27
Q12: Problems faced during online shopping (leave blank if not applicable)....28
Q13: Advertisement on online marketing.........................................................28
Q14: strategies of online marketing.................................................................29
Q15: Favorite online give rank..........................................................................29
Q16: Accuracy of product quality.....................................................................30
Q17: Timely delivery of products......................................................................30
Q18: About product warranty/guarantee..........................................................31
Q19: Satisfaction in online shopping than traditional marketing:.....................31
Q20: Additional features to be expected for the betterment of online shopping
......................................................................................................................... 32
Chapter-5........................................................................................................... 33
Summary and suggestions............................................................................. 33
FINDINGS.......................................................................................................... 34
SUGGESTIONS.................................................................................................. 35
CONCLUSION.................................................................................................... 36
Acknowledgement
Also, thank for the continuous support and kind communication which had
a great effect regarding to feel interesting about what I was on .However,
it would not have been possible without the king support and help of all .I
would like to extend my sincere thanks to all of them .Finally, I express my
sincere thinks and deep sense of gratitude to my family and friend for
giving timely advice in all the ways and in all aspects and doing the
project.
CHAPTER-1
INTRODUCTION
Introduction:
In Oman, More than 20% of the population made at least One (1) online
purchase in 2014.Despite Oman has one of the highest smart phone use
Middle East region, Only 8% of the population did mobile shopping. Most
of the items purchased online in Oman are groceries and music .However,
more then 1/4th of the population of Oman still Purchases products from
foreign websites.
High smartphone penetration has helped commerce to grow in Oman and
neighboring GCC countries .Oman and UAE has 2ed highest smartphone
penetration in gulf region after Qatar which has 79% penetration.
The biggest hurdle in e-commerce market is changing the mindset of
people .Customer want to buy products directly from shop .As per the
survey conducted Mordor intelligence ,we found that customer want to
touch and feel the product through which they perceive the quality of the
product
The study elucidates the situation of Oman and predicts the growth of its
E-commerce Industry .Report talks about growth market trends ,
progress ,challenges ,opportunities, technologies in use , growth forecast
major Companies ,upcoming companies and projects etc.in addition to it
,the report also talks about economic conditions of and future forecast of
its current economic scenario and effect of its current policy changes in to
its economy, reasons and implications on the growth of this sector .Lastly
the report is segmented by various types E-commerce available in the
country.
CHAPTER-2
REVIEW OF LITERATURE AND
RESEARCH METHODOLOGY
LITERATURE REVIEW
Nagesh (2009), describes that Oman retailing will see a sea of change in
the next five years driving consumption boom never seen in the history of
any country. From a drought situation we will see a flood of modern retail,
So Oman retail will be on a steady ground of sustained growth year after
year and thereafter.
Mohanty & Panda (2010) opines about retailing as a sector of Oman
occupies important place in the socio-economic growth strategy of the
country. Oman is witnessing retailing boom being propelled by increasing
urbanization, rising purchasing power parity (PPP) of ever growing Omans
middle class, changing demographic profiles heavily tilted young
population, technological revolution, intense globalization drive etc.
Akash (2011) states that Retail business in Oman, as anywhere else in
the world, plays a crucial role in an economy. Retail in Oman has the
potential to add value over Rs 2,00,000 crore ($45billion) business in the
coming years generating employment for some 2.5 million people in
various retail operations and over10 million additional workforce in retail
support activities including contract production and processing, supply
chain and logistics, retail real estate development and management.
Sahu (2012) describes that a rise in consumer confidence, improvement
in profitability and aggressive expansion plans signal better tidings for
listed players in the organized retail pace. Moreover, analysts believe
listed retailers could attract foreign investments by spinning off their
subsidiaries into separate companies which can provide a great
opportunity for the improvement of this sector.
Namita Bhandari and Preeti Kaushal (2013) in their study on online
consumer behaviour
using factor analysis and found the reasons for using online shopping like
trust, information
about the product and services, convenience, effortless shopping
Anand Sriram, This study gives an in-depth analysis of e-retailing in
Oman and gives a clear
picture, where Oman stands in e-retailing. The study depicts that Oman
has got lot of potential
to grab in this area. But we are still in the infancy stage due to
infrastructure shortage and security threats. This area has to be tapped
properly for more foreign exchange
Sunil Dutta, It contains different internet business models, internet
revenue generation models and the success of different models. The
article also depicts the prediction of the growth of internet users during
recent years.
Karim (2013) conducted a study on online shopping behaviour of
customers and documented
that online vendors can assure their consumers for transaction security
and avoid long delays in completing online orders and the hassle of
returning goods for better online shopping experience.
Morris (2013) conducted a study on More Consumers Prefer Online
Shopping Shoppers increasingly want whats called a seamless Omni
channel experience, meaning one in which retailers allow them to
combine online and brick and mortar browsing, shopping, ordering and
returning in whatever combo they would like.
RESEARCH METHODOLOGY
Research design
This is a descriptive research as it will clarify the doubts about E-commerce in Oman.
Data collection
Secondary data: We collected secondary data from different and various sources like online
reports related to advertising
Primary data: we collected the primary data by Questionnaire, Personal Interview, and
Interview with Marketing Professional. This method of data collection helped in gathering
opinions of different ages, gender etc.
Sample universe
Basis of sampling:
Sample should be a user of internet or should have knowledge about internet
20 numbers in all
Sampling Technique:
Judgmental Non Probability sampling is being used to select the individual units for better
productivity of the questionnaire.
CHAPTER-3
THEORETICAL FRAME WORK
Conceptual Framework of Online Shopping
Online shopping
Also known as e-tail from "electronic retail" or e-shopping is a form of
electronic commerce which allows consumers to directly buy goods or
services from a seller over the Internet using a web browser. Alternative
names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-
store, online store, online storefront and virtual store. Mobile commerce or
m-commerce describes purchasing from an online retailer's mobile
optimized online site or app. An online shop evokes the physical analogy
of buying products or services at a bricksand- mortar retailer or shopping
center; the process is called business-to-consumer (B2C) online shopping.
In the case where a business buys from another business, the process is
called business-to-business (B2B) online shopping. The largest of these
online retailing corporations are Alibaba, Amazon.com, and eBay.
History of Online Shopping
Michael Aldrich an English entrepreneur invented online shopping in 1979.
His system connected a modified domestic TV to a real-time transaction
processing computer via a domestic telephone line. He believed that
videotext, the modified domestic TV technology with a simple menu-
driven humancomputer interface, was a 'new, universally applicable,
participative communication medium the first since the invention of the
telephone.' This enabled 'closed' corporate information systems to be
opened to 'outside' correspondents not just for transaction processing but
also for e-messaging and information retrieval and dissemination, later
known as e-business. His definition of the new mass communications
medium as 'participative' was fundamentally different from the traditional
definitions of mass
Communication and mass media and a precursor to the social networking
on the Internet 25 years later. In March 1980 he went on to launch
Redifon's Office Revolution, which allowed
Consumers, customers, agents, distributors, suppliers and service
companies to be connected
on-line to the corporate systems and allow business transactions to be
completed electronically in real-time.
During the 1980s he designed, manufactured, sold, installed, maintained
and supported many online shopping systems, using videotex technology.
These systems which also provided voice response and handprint
processing pre-date the Internet and the World Wide Web, the IBM PC, and
Microsoft MS-DOS, and were installed mainly in the UK by large
corporations. The first World Wide Web server and browser, created by
Tim Berners- Lee in 1990, opened for commercial use in 1991. Thereafter,
subsequent technological innovations emerged in 1994, online banking,
the opening of an online pizza shop by Pizza Hut, Netscape's SSL v2
encryption standard for secure data transfer, and Intershop's first online
shopping system. The first secure retail transaction over the Web was
either by NetMarket or Internet Shopping Network in 1994. Immediately
after, Amazon.com launched its online shopping site in 1995 and eBay
was also introduced in 1995. Alibaba's sites Taobao and Tmall were
launched in 2003 and 2008, respectively. Retailers are increasingly selling
goods and services prior to availability through pretail for testing, building,
and managing demand.
International e-commerce statistics
Statistics show that in 2012, Asia-Pacific increased their international sales
over 30% giving
them over $433 billion in revenue. That is a $69 billion difference between
the U.S. revenue
of $364.66 billion. It is estimated that Asia-Pacific will increase by another
30% in the year
2013 putting them ahead by more than one-third of all global ecommerce
sales. The largest
online shopping day in the world is Singles Day, with sales just in Alibaba's
sites at US$9.3
billion in 2014.
Customers
Online customers must have access to the Internet and a valid method of
payment in order to
complete a transaction. Generally, higher levels of education and personal
income correspond
to more favourable perceptions of shopping online.
Product selection
Consumers find a product of interest by visiting the website of the retailer
directly or by searching among alternative vendors using a shopping
search engine. Once a particular product has been found on the website of
the seller, most online retailers use shopping cart software to allow the
consumer to accumulate multiple items and to adjust quantities, like filling
a physical shopping cart or basket in a conventional store. A "checkout"
process follows (continuing the physical-store analogy) in which payment
and delivery information is collected, if necessary. Some stores allow
consumers to sign up for a permanent online account so that some or all
of this information only needs to be entered once. The consumer often
receives an e-mail confirmation once the transaction is complete. Less
sophisticated stores may rely on consumers to phone or e-mail their
orders (although full credit card numbers, expiry date, and Card Security
Code, or bank account and routing number should not be accepted by e-
mail, for reasons of security).
Payment
Online shoppers commonly use a credit card or a PayPal account in order
to make payments. However, some systems enable users to create
accounts and pay by alternative means, such
as:
1. Billing to mobile phones and landlines
2. Cash on delivery (C.O.D.)
3. Cheque/ Check
4. Debit card
5. Direct debit in some countries
6. Electronic money of various types
7. Gift cards
8. Postal money order
9. Wire transfer/delivery on payment
10. Invoice, especially popular in some markets/countries, such as
Switzerland
11. Bitcoin or other crypto currencies
Some online shops will not accept international credit cards. Some require
both the purchaser's billing and shipping address to be in the same
country as the online shop's base of operation. Other online shops allow
customers from any country to send gifts anywhere.
The financial part of a transaction may be processed in real time (e.g.
letting the consumer know their credit card was declined before they log
off), or may be done later as part of the fulfilment process.
Product delivery
Once a payment has been accepted, the goods or services can be
delivered in the following
ways. For physical items:
Shipping: The product is shipped to a customer-designated address.
Retail package delivery is typically done by the public postal system or a
retail courier such as FedEx,UPS, DHL, or TNT.
Drop shipping: The order is passed to the manufacturer or third-party
distributor, who then ships the item directly to the consumer, bypassing
the retailer's physical location to save time,
money, and space.
In-store pick-up: The customer selects a local store using locator
software and picks up the delivered product at the selected location. This
is the method often used in the bricks and clicks business model.
Information on
Online shopping
Attitude
Intention
towards Decision Online
to shop
Security & Privacy online Making Purchase
online
shopping
Perceived
Usefulness
Perceived Ease of
use CONSUMER SATISFACTION
Perceived
Enjoyment
BARRIERS TO GROWTH OF ONLINE MARKET
Consumer Bias
Consumers often display a bias for brands that they know well and have
had a good experience in the past. Thus products of brands with a
favorable bias will score over the products of less popular brands. A few
would risk to buy expensive jewelry from an unknown jeweler online.
Lack of Touch Feel-Try Experience
The customer is not sure of the quality of the product unless it is delivered
to him and post delivery of the product, it is sometimes a lengthy process
to get a faulty or the unsuitable product changed. Thus, unless the
deliverables are as per the customers expectations, it is hard to infuse
more credibility in the e-Tailing market.
Mounting Competitive Pressures
To attract customers, the competing online players are adopting all means
to provide products and services at the lowest prices. This has resulted in
making the consumers choice-spoilt, who in turn surf various websites to
spot the lowest price for the product. Thus, although the number of
transactions is increasing, the value of the products sold is continuously
falling owning to high competition and leaner margins.
Seasonality
eTailing Market is faced by seasonal fluctuations. As told by an Industry
player, August to February is the peak seasons for sale, while March to
July is the dry seasons for sale. During the peak season, occasions that
drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas,
Mothers Day, Friendship Day etc are. On these occasions younger
generations prefers buying and sending gifts online.
Credibility in Payment System
Online frauds and breach are the biggest barriers to online sales. As a
result, prospective buyers prefer staying away from revealing their credit
card and bank details.
Untimely Delivery of Products
It might take a few minutes to search, book and pay for products and
services online, but the delivery of the product may take unreasonable
time.
Chart Title
50% 50%
Chart Title
5%
29%
67%
From the above chart we analyzed that (67%) of the respondents are in
the age group 18-25 years, followed by (28%) those who are in the age
25-35 years and the last (5%)who are in age 35-45 years.
16% 16%
26%
42%
This chart about the educational level of respondents it was found that)
42% (of them had a degree, and) 26% (of them had PUC.) 16 %( of the
respondents had Below SSLC, and master degree.
Q4: Occupation.
Chart Title
Student Lecturer orEmployee
Entrepreneur If other mention
20%
50%
30%
We found that the majority ( 50% )of respondents are students, and) 30%(
of our Questionnaire respondents are lecturer or employee and finally)
20%( of the respondents are Entrepreneurs .
Q5. Annual Income
.
Chart Title
Below 3000 3001-5000
10% 5,001-10,000
15%
1,0,001and Above
75%
The chart depict that (75%) of the respondent says below 3000, (15%) of
the respondent says 3001, 5000, (10%) of respond says 5,001-10,000and
(0%) says 10,001 and above
Chart Title
Everyday Weekly Fortnightly Montly
16%
37%
5% 42%
The above table and figure defines that the how often a person use the
internet facilities. (24%) of respondents use the internet weekly. (37%) of
people use internet monthly and (16%) of people use the internet every
day. (5%) of respondents they use internet Fortnightly.
Chart Title
Home College
Internet caf Other Place
5%
15%
30%
50%
The above table depicts about the where the Internet users access the
web at most (50%)of the respondent says use internet in college,(30%) of
the respond says use the internet in home ,and(15%) says use internet in
other place.
6%
22%
50%
22%
The above chart depicts that (50%) of the respond says advertisement,
(22%) of respond say friend and colleagues and the family and relatives
and (6%) say the other reason.
Chart Title
Strongly Agree Agree Moderate Disagree
5%
16%
32%
47%
Chart Title
Books Cloths
Furniture Cosmetics
Electronic Good Groceries
Cinema Tickets/Travel Tickets Other Products
19% 19%
10%
29% 10%
13%
The above chart describes that (29%) of respondent says buy through
online the groceries ,(19%) of respondent says buy through online the
other product and books ,(13%) of respond says the cinema
tickets/travel tickets , (10%)of respondent says buy the cloths and
furniture.
Q11: Maximum amount spent on online shopping
Chart Title
Less than 1,00 1,00-5,00
5,00-1000 Above
22%
6%
56%
17%
The above chart depicts that (56%)of the respondent says the spent on
online shopping less than 1,00,(22%) of respondent says the spent on
online shopping Above 1000,(17%) of respondent says spent 1,00-5,00and
(5%) says spent 5,00-1000.
Chart Title
Delay in Delivery
Product Mismatch/not as displayed
Not Delivered to convenient address
Cheap Quality/Damaged products
5%
37% 47%
11%
The above chart that (47%)of respondent says the more problems faced
during online shopping the delay in delivery ,(37%) of respondent says the
problem faced during online shopping the not delivered to convenient
address,(11%) of respondent says product mismatch/not as displayed
,and(5%)says cheap quality /damaged products.
Q13: Advertisement on online marketing
Chart Title
Very Good Good Moderate Not Good
20%
30%
50%
The chart depicts that (50%) of the respondent says the advertisement on
online marketing good, (30%) of the respondent says very good, (20%) of
the respondent says moderate and (0%) not good.
Chart Title
Very Good Good Moderate Not Good
25%
30%
45%
The above chart depicts that (45%) of the respondent says the strategies
of online marketing good, (30%) of the respondent says very good, (25%)
of the respondent moderate, (0%) not good.
Chart Title
Flipkart Amazon E-bay Snap Deal
Alibaba Olx Quicker
4%
7%4%
15% 26%
15%
30%
The above chart depicts that (29%) of the respondent says the favorite
online give rank the snap deal, (26%) of the respondent says Amazon,
(15%) of respondent says E-bay and Alibaba (7%) says Olx, and (4%) says
flipchart and Alibaba.
Chart Title
Highly satisfied satisfied Moderate Not Satisfied
20%
25%
20%
35%
The above chart depicts that (35%) of respondent says the accuracy of
product quality the satisfied, (25%) of respondent says the highly
satisfied, (20%) of respondent says accuracy of product quality the
moderate and not satisfied.
Chart Title
Highly satisfied Satisfied
Moderate Not Satisfied
5%15%
45%
35%
The above chart depicts that (45%) of respondent says the timely
delivery of products the moderate,( 35%)of respondent says the level of
satisfied , (15% ) says level of highly satisfied and( 5%) says level of not
satisfied.
5%
15%
25%
55%
The above depicts that ,(55%) of respondent says about product warranty
/guarantee the level of moderate ( 25%)of the respondent says satisfied
(,15%) says level of highly satisfied and (5%) says level of not satisfied .
Chart Title
Highly satisfied Satisfied
Moderate Not Satisfied
11%
16%
47% 26%
5%
26%
24%
8%
13%
24%
The above table chart depicts that (24%) more than of the respondent says
the additional features to be expected for the betterment of online shopping
the service management and safety,(5%) less than of the respondent says
the products warrant /guaranty.
Chart Title
Yes No
33%
67%
The above table figure states that 67% of respondents say that they are
ready to continue with the online shopping, as they are comfort with this
and they are satisfied with the services of E-retailers and the most the
online marketing save the time spent on shopping and also there is
possibility of getting all kind of products and services within a span of
time with the access of internet through systems and avoid the time
consumption for travel and wandering for products at market places. But
33% of respondents said (No) they didnt likes to deal with E-Commerce.
Chapter-5
Summary and suggestions
FINDINGS
Following are the findings of the present study the results are
presented here based on the primary data collected and interpreted
At the Oman the younger generations, most of the students were
Its the modern era even all will use the internet through the
gazettes so the use of internet was every day and it makes the
Most of the Customers use the Internet for the purpose of online
shopping at the home place rather than visiting for the nearest
net zone
Relatives and the other reasons like the self-interest make the
displayed in website
SUGGESTIONS
Following suggestions were drawn after the findings of the present
study, the suggestions includes the some feedback for the Customers
and also a review report for the E retailers in related to the upgrading
their services and make possible of 100% high satisfaction about their
marketing activities
E-retailers should focus on the delivery model for the better
services and reach the last consumers at easy and flexible time so
that the E-retailing will attract the more and more customers for
their products and services.
The customers preference will be the Electronics products and
most probably the Online shopping may extended only with the
supply of Electronic goods with more and more affordable prices,
there is need to advertise the domestic products
Consumers Should assess the different web portals for the products
and for the better services need to focused on the branded web
portals and avoided fake discounts offered and fraudulent
advertisements
The access of internet made it avail at remote places of Oman but
still people have the insecure feel on buying of products through
online because of the past facts of accessing wrong and also the
problems with delivery, the retailers need to come over with the
certain problems so that the online shopping makes more reliable.
CONCLUSION
Term changed as Customers is a king from the Supplier is a ultimate, now
a days every customers having his buying rights and negotiating rights,
so the attraction of customers with the products and services makes huge
completion over the suppliers and each and every one follow the different
delivery models for their products, the booming channel in this period is
attracting the educators is E-Retailing which had its own impact over the
consumers and created more and more customers. The study on the
perception towards the E-retailing in Muscat city given a positive opinion
on this model, the users of internet and users of Retailers services are
satisfied with the services and ready to continue with the same. Finally
conclude that the E-Retailing reached the customers of everywhere in the
world even it attracted positively towards the Oman , now the question for
the future study is what will be the impact on retailers in Oman who is
having the petty and small shops depending on few of the customers in
their locality!