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Table of contents

Sl. No Contents Page No.

1 Chapter 1- Introduction 6

2 Chapter 2 – Literature Review 12

3 Chapter 3 – A theoretical Framework-Online shopping 17

4 Chapter 4 – VKC,Dimesco footcare India Pvt.Ltd – An overview 32

5 Chapter 5 – Analysis and Interpretation 46

6 Chapter 6 – Findings, Conclusion and Suggestions 82

Annexure 87

Bibliography 91

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List of tables
Table no: Title Page number
Table 4.1 List of top ten e-commerce sites. 44

Table 5.1 Demographic profile of Respondents 46

Table 5.2 Response towards internet shopping 48

Table 5.3 Years of experience of respondents 49

Table 5.4 Information search habits of respondents 50

Table 5.5 Products that are usually purchased by respondents 51

Table 5.6 Respondent’s opinion about online shopping saving time 53

Table 5.7 Respondent’s opinion about online shopping saving money 54

Table 5.8 Respondent’s view about online shopping giving relaxation 55

Table 5.9 Mode of payment preferred by respondents 56

Table 5.10 Respondent’s opinion about security of transaction. 57

Table 5.11 Respondent’s views about company profile and brand identity 58

Table 5.12 Respondent’s views about security certification 59

Table 5.13 Respondent’s opinions on customer services provided 60

Table 5.14 Response towards product information provided by the sites 61

Table 5.15 Responds towards different options provided in online sites 62

Table 5.16 Response towards cost of delivery of goods purchased 63

Table 5.17 Response towards Speed of delivery 64

Table 5.18 Respondent’s opinion towards Simplicity of buying process 65

Table 5.19 Respondent’s opinion towards privacy of customer information 66

Table 5.20 Respondent’s opinion on the ability of site to track the orders 67

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Table 5.21 Response on speed of web sites 68

Table 5.22 Opinions of respondents towards the web site interface 69

Table 5.23 Responds towards the personal offers given by the sites 70

Table 5.24 Factor analysis, rotated Component Matrix 71

Table 5.25 Gender of respondents 72

Table 5.26 Independent sample T-test. 72

Table 5.27 occupation of the respondents 73

Table 5.28 One way anova 73

Table 5.29 Age of the respondents 74

Table 5.30 One way anova 74

Table 5.31 Education qualifications of respondents. 75

Table 5.32 One way anova 75

Table 5.33 Income level of respondents 76

Table 5.34 One way Anova 76

Table 5.35 Residential status of respondents. 77

Table 5.36 One way anova 77

Table 5.37 One way anova 78

Table 5.38 One way Anova 79

Table 5.39 One way anova 80

Table 5.40 Aggregate Mean Score table 81

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List of Figures
Figure Title Page
number number
Figure 1.1 Conceptual frame work 8
Figure 3.1 Consumer buying behavior process 28

Figure 3.2 Schematic diagram of theory of planned behavior 30

Figure 3.3 Technology Acceptance Model 31

Figure 4.1 offices of Dimesco 39

Figure 5.1 Response towards internet shopping 48

Figure 5.2 Years of experience of respondents 49

Figure 5.3 information search habits of respondents 50

Figure 5.4 Products that are usually purchased by respondents 51

Figure 5.5 Respondent’s opinion about online shopping saving time 53

Figure 5.6 Respondent’s opinion about online shopping saving money. 54

Figure 5.7 Respondent’s view about online shopping giving relaxation 55

Figure 5.8 Mode of payment preferred by respondents 56

Figure 5.9 Respondent’s opinion about security of transaction 57

Figure 5.10 Respondent’s views about company profile and brand identity 58

Figure 5.11 Respondent’s views about security certification. 59

Figure 5.12 Respondent’s opinions on customer services provided. 60

Figure 5.13 Response towards product information provided by the sites 61

Figure 5.14 Response towards different options provided in online sites 62

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Figure 5.15 Response towards cost of delivery of goods purchased 63

Figure 5.16 Response towards Speed of delivery 64

Figure 5.17
Respondents opinion towards Simplicity of buying process 65

Figure 5.18 Respondents opinion towards privacy of customer information 66

Figure 5.19 Respondents opinion on the ability of site to track the orders 67

Figure 5.20 Response on speed of web sites 68

Figure 5.21 Opinions of respondents towards the web site interface 69

Figure 5.22 Responds towards the personal offers given by the sites 70

List of charts

Chart Title Page number


Number

Chart.4.1 Organizational structure chart of VKC Group 35

Chart 4.2 Organizational structure chart of Dimesco footcare India Pvt.Ltd 38

Chart 4.3 Process flow chart (PU) 41

Chart 4.4 Process flow chart (stuck on) 42

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Chapter 1

Introduction
The introduction and implementation of internet technologies has created new market
for manufacturers and service providers and also has provided new arena for innovative marketing
strategies by the professionals. There are various reasons of shifting the customers buying patterns
towards online retail shops. The facility of comparing products with competitive products on the
basis of price, colour, size and quality is one of the biggest benefits of online shopping. Moreover
the product remains at its place even you purchase it. It looks hilarious but this is also one of the
most significant reasons reported by the online shoppers. The other popular names for online
shopping are virtual store, e-shop, web shop, internet shop, web-store and online storefront etc.
These days Mobile commerce or m-commerce is also one of the popular means of shopping. The
facilities of various coupon and discount scheme are also fascinating the customers in online
shopping.

The increasing consumer base, principally of youths, is playing a significant role in


the online shopping. Through this means, the shopper can buy the product from wherever he
wants. Because of wide communication network e commerce has become the new mediator
between the companies/manufacturers and their customers. The growth rate of India’s e-commerce
industry is fascinating. It was reported as 88% in 2013 which is a clear contrast picture of the
slower economic growth of India. The rising inflation rate in recent years has not slipped away the
performance of online shopping industry in India. Earlier the Indian customers were more attracted
towards electronic gadgets and mobile phones for online shopping but now the products indicative
of lifestyle, viz., watches, apparels, perfumes, beauty products are also in high demand through the
medium of online shopping. The market is also developing for books, jewellery, home appliances
and kitchen appliances etc. From the past few years, on-line shopping is the prevalent way of
doing dealings in the field of E-Business and is unquestionably going to be the future of shopping
in the human race.

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Statement of the problem

From the past few years, on-line shopping is the prevalent way of doing dealings in
the field of E-Business and is unquestionably going to be the future of shopping in the human race.
The increasing consumer base, principally of youths, is playing a significant role in the online
shopping. Even though there is an increase in the consumer demand, there are some security issues
reported regarding the online shopping and its delivery systems. These may resist the new entries
into the online shopping. So there is a scope of studying the influence of online shopping in
consumer behavior.
Scope and significants of the study
The rising inflation rate in recent years has not slipped away the performance of online shopping
industry in India. The youth population gives more scopes to conduct studies about the new
generation shopping methods, because youth is considered as the major consumers of technology
and related products and services. Scope of this particular study is the increasing demand among
the consumers and the rapid growth of the industry, along with that the recent news reports relating
to the online shopping and its problems in delivery, tax etc. also enhances the scopes and
significants of the study.
Objectives of the study
 To examine the factors influencing online shopping on buying behavior of consumers.
 To study the popularity and acceptance of online shopping among the consumers
 To examine the problems associated with the online shopping and to understand the scope
of improvement in this field.

Hypotheses
On the basis of review of literature the following hypotheses has been set:-

H0:1-There exist a significant relationship between Demographic factors (Age, Gender,


Occupation, Income, Educational, Qualifications, and Place of residence.etc) and consumer buying
behavior

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H0:2-There is a significant relationship between overall website quality and consumer buying
behavior.
H0:3-There is a significant relationship between web site competency and consumer buying
behavior.
H0:4-There is a significant relationship between website security and consumer buying behavior.
Variables of the study
Attractiveness, Competency of web site, Convenience, Website Quality, Security of website etc.

Conceptual frame work for the study


.

Attractiveness
Demographics Competency

Security Convenience

Website Quality

Online
Attitude Intention Decision
Purchase
Towards To Shop Making
Online Online
Shopping

Consumer buying behavior


Figure 1.1: Conceptual Frame work for the study

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Research methodology

The research methodology used for this study is describes as follows

Research design
The study is having a Descriptive research design, focusing the objectives of the study, a survey
was conducted with the help of a structured questionnaire to collect data about the influence of
online shopping on consumer behavior. The structured questionnaire was designed to collect
information about demographic profile of the respondents such as age, gender, occupation,
Income, Place of residence. In addition to this, various questions related to the experience of
internet usage, the purpose of using Internet, types of products purchased online, factors affecting
consumer behavior while online shopping etc. were asked from the respondents

Sources of data

Primary Data: Considering the time and budget constraints, the data were collected from people of
4 different districts of Kerala (Calicut, Malapuram, Trissur, and Palakkad).

Secondary Data: The secondary data were mainly collected from Journals, Websites, Articles, and
Text Books etc.

Sample size

Sample size of 120 was fixed for the study, the data were collected from people of 4 different
districts of Kerala.

Sample design

The total population may be the consumers of the four different districts. And this study considers
only 30 sample from each district. A structured questionnaire containing 25 questions, including
demographics and space for comments were provided to the respondents. Snowball sampling
method was selected as the other methods were impractical for this particular study.

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Tools for data collection

Data collected through

I) Structured questionnaire

II) Informal interviews

Tools for presentation

I) Tables

II) Charts

III) Diagrams

Tools for data analysis

Suitable mathematical and statistical tools are employed based on the results obtained after the
study. The tools were Percentage analysis, Mean, Standard deviation, Factor analysis, T-test,
Anova Etc.

Limitations of the study

 Limited sample size which may not exactly represent the entire population
 Personal Bias and non-respondents
 Time and resource availability
 Only certain factors are taken into consideration to measure Consumer online shopping
attitude and behavior.
 Inter firm comparison is not possible as the study is based on a particular firm.

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Chapterization

Chapter 1- Introduction

Chapter 2-Litrature review

Chapter 3- Theoretical frame work

Chapter 4- Company profile

Chapter 5- Analysis and Interpretations

Chapter 6-Findings, Suggestions and Conclusion

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Chapter 2
Literature review
 Perception towards online shopping: an empirical study of Indian consumers,
zia ul haq (2012).

This study tells that the Consumers are playing an important role in online shopping. The
increasing use of Internet by the younger generation in India provides an emerging prospect for
online retailers. If online retailers know the factors affecting Indian consumers’ buying behavior,
and the associations between these factors and type of online buyers, then they can further develop
their marketing strategies to convert potential customers into active ones. In this study four key
dimensions of online shopping as perceived by consumers in India are identified and the different
demographic factors are also studied which are the primary basis of market segmentation for
retailers. It was discovered that overall website quality, commitment factor, customer service and
security are the four key factors which influence consumers’ perceptions of online shopping. the
study revealed that the perception of online shoppers is independent of their age and gender but not
independent of their education & gender and income & gender Finally, the recommendations
presented in this research may help foster growth of Indian online retailing in future.

 Consumers’ attitude towards online shopping: factors influencing employees of crazy domains
to shop online Saad Akbar, Bangkok University (2011).

E-commerce offers many online marketing opportunities to companies worldwide and along with
high rapid growth of online shopping; it has impressed many retailers to sell products and services
through online channel to expand their market. Online shopping or marketing is the use of
technology (i.e., computer, internet) for better marketing performance. And retailers are mixing
strategies to meet the demand of online shoppers; they are busy in studying consumer in the field
of online shopping, to see the consumer attitudes towards online shopping and specifically
studying the factors influencing consumers to shop online. In this study, the multiple regression
analysis was employed to measure the relationship between 9 independent variables and
receptivity to online shopping. The score of Beta weight presented that all 9 independent variables
had positive statistical significant effect to Internet users to accept online shopping. Among the 9

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factors, the strongest influencers from highest to lowest were Price, Refund, Convenience, Auction
websites, Security, Brand, Search engines, Promotion and Online shopping malls. According to
independent t-test analysis for gender, there was significant different means between males and
females for online shopping malls and Auctions websites factors to receptivity on online shopping.
The means of female significant higher than male for these two factors. This study might
contribute not only to a better understanding on what and how strongly the factors are involved in
online consumer purchasing decisions but also this study provides e-retailer’s standpoint such the
effectively manage and recommendations. However, e-retailers should keep in mind that consumer
behavior might change in time to time especially in online market so the e-retailer should
investigate the consumer behavior in time to time and adapt the products and services to serve as
the customer requirements.

 A study of Indian online consumers & their buying behavior, Akur Kumar rastogi (2010)

This study attempts to analyze the features related to the buying behavior of online shoppers.
Consumer buying behavior in respect of online shopping was studied using different socio-
economic variables. It also provides a support that helps researchers understand the drivers of
consumers’ attitude and goal to shop on the Internet, and consumers’ perceptions regarding ease of
use and usefulness. Conclusions derived from the analysis can be used as useful guide for market
orientation. The outcomes of the study suggest that assessment of consumer buying behavior can
contribute to a better understanding of consumer buying behaviour in respect of online shopping.

 Consumer’s attitude towards online shopping, Factors influencing Gotland consumers to shop
online, Muhammad Umar Sultan and MD Nasir Uddin(2011)

In the era of globalization electronic marketing is a great revolution. Over the last decade
maximum business organizations are running with technological change. Online shopping or
marketing is the use of technology (i.e., computer) for better marketing performance. And retailers
are devising strategies to meet the demand of online shoppers; they are busy in studying consumer
behavior in the field of online shopping, to see the consumer attitudes towards online shopping.

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Therefore we have also decided to study consumer’s attitudes towards online shopping and
specifically studying the factors influencing consumers to shop online.
The population selected for the research is Gotland, and narrowed down to Gotland University
students, University cafeteria and Gotland Public library, the sample size selected for this research
is 100 and we have used convenience sampling technique. Our findings indicated that among the
four factors selected for this research the most attractive and influencing factor for online shoppers
in Gotland is Website Design/Features, following convenience the second most influencing and
thirdly time saving. Results have also showed that security is of important concern among online
shoppers in Gotland. The research has also found that there are some other factors which influence
online shoppers including, less price, discount, feedback from previous customers and quality of
product. For the second research question i.e. who are online shoppers in term of demography: the
correlation results for the age and attitudes towards online shopping has showed that elderly people
are not so keen to shop online. Whereas for education it is concluded that higher education makes
online shopping less attractive, for the income the correlation results are so weak hence we could
not conclude anything out of it. It is expected that this study will not only help retailers in Gotland
to devise successful strategies for online shoppers but it will also provide a base for similar studies
in the felid of consumer attitudes towards online shopping.

 E-commerce: It’s Impact on consumer Behavior ,Arjun Mittal (2013)

The main goal of the paper is to obtain quantitative describing the actuality of internet shopping in
the case of the India in order to explain the development of internet shopping and its impact on
consumer behavior. The paper build on the relevant literature and at the same time examines
consumer behavior by questionnaires. Furthermore, the future development of internet shopping
will be measured and deep comparison of consumer behavior between different countries. This
paper support the research questions that including recent trends and various issues in internet
shopping, and principle factors for consumer behavior. Also, the result of the study shows that
internet consumer trust and perceived risk have strong impacts on their purchasing decisions.
Consumer`s trust, privacy concerns, security concerns are the major factors for using internet for
shopping, the trust on websites influence to the purchasing decision of any consumer. More

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specifically, the empirical result suggests how the E-commerce companies make marketing
strategies according the research data and analyzing result.

 Consumer online shopping attitudes and behavior:;an assessment of research,


Na Li and Ping Zhang (2007)

Online shopping behavior (also called online buying behavior and Internet shopping/buying
behavior) refers to the process of purchasing products or services via the Internet. The process
consists of five steps similar to those associated with traditional shopping behavior (Liang and Lai
2000). In the typical online shopping process, when potential consumers recognize a need for some
merchandise or service, they go to the Internet and search for need-related information. However,
rather than searching actively, at times potential consumers are attracted by information about
products or services associated with the felt need. They then evaluate alternatives and choose the
one that best fits their criteria for meeting the felt need. Finally, a transaction is conducted and
post-sales services provided. Online shopping attitude refers to consumers. Psychological state in
terms of making purchases on the Internet.

 Understanding Online Shopping Behavior of Indian Shoppers, Dr. Renuka Sharma, Dr. Kiran
Mehta, Shashank Sharma (2014).

The growth rate of India’s e-commerce industry is fascinating. It was reported as 88% in 2013
which is a clear contrast picture of the slower economic growth of India. The rising inflation rate
in recent years has not slipped away the performance of online shopping industry in India.
Companies are using the internet to put across and commune the information. Simultaneously it
helps the companies to give an idea about their products and instantly getting the feedback of
customer’s fulfillment to get stimulated turnover for future. The primary objective of the current
study is to understand the online buying behavior of consumers in India. It has also made an
attempt to get information about the scope of improvement in online shopping website.

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 A study of the attitude towards online shopping: A conceptual model regarding intention
formation, the role of perceived risks, Vinay Kumar Sumit Mishra (2009).

Researchers typically study how levels of risk perception about online shopping affect and how
consumers use the channel to buy products. In this paper, researchers are attempting to study how
different types of attitudes towards online shopping are formed, considers both the benefit and the
risk of using the internet to do their shopping. Researchers pay particular attention to the concept
of online shopping skepticism where consumers may fully realize the benefit of using the internet
to do their shopping, but also express a certain level of concern about the risk of using that
channel.

References

1. Perception towards online shopping: an empirical study of Indian consumers, Zia ul haq
(2012)
2. Consumers’ attitude towards online shopping: factors influencing employees of crazy
domains to shop online Saad Akbar, Bangkok University (2011).
3. A study of Indian online consumers & their buying behavior, Akur Kumar rastogi (2010)
4. Consumer’s attitude towards online shopping, Factors influencing Gotland consumers to
shop online, Muhammad Umar Sultan and MD Nasir Uddin(2011)
5. Consumer online shopping attitudes and behavior:;an assessment of research,
Na Li and Ping Zhang (2007)
6. Understanding Online Shopping Behavior of Indian Shoppers, Dr. Renuka Sharma, Dr.
Kiran Mehta, Shashank Sharma (2014).
7. A study of the attitude towards online shopping: A conceptual model regarding intention
formation, the role of perceived risks, Vinay Kumar Sumit Mishra (2009).

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Chapter 3
A theoretical frame work – Online shopping
Introduction
Buying Behavior is the decision processes and acts of people involved in buying and using
products. Need to understand the concept is

 Why consumers make the purchases that they make?


 What factors influence consumer purchases?
 The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer.
Many factors, specificities and characteristics influence the individual in what he is and the
consumer in his decision making process, shopping habits, purchasing behavior, the brands he
buys or the retailers he goes. A purchase decision is the result of each and every one of these
factors. An individual and a consumer is led by his culture, his subculture, his social class, his
membership groups, his family, his personality, his psychological factors, etc.. and is influenced by
cultural trends as well as his social and societal environment. By identifying and understanding the
factors that influence their customers, brands have the opportunity to develop a strategy, a
marketing message (Unique Value Proposition) and advertising campaigns more efficient and
more in line with the needs and ways of thinking of their target consumers, a real asset to better
meet the needs of its customers and increase sales. Consumer behavior refers to the selection,
purchase and consumption of goods and services for the satisfaction of their wants.
There are different processes involved in the consumer behavior. Initially the
consumer tries to find what commodities he would like to consume, then he selects only those
commodities that promise greater utility. After selecting the commodities, the consumer makes an
estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing
prices of Commodities and takes the decision about the commodities he should consume.
Meanwhile, there are various other factors influencing the purchases of Consumer such as social,
cultural, personal and psychological. The explanation of these factors is given below. Consumer s
buyer behavior is influenced by four major factors:
1) Cultural,
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2) Social,
3) Personal,
4) Psychological.
These factors cause consumers to develop product and brand preferences. Although many of these
factors cannot be directly controlled by marketers, understanding of their impact is essential as
marketing mix strategies can be developed to appeal to the
Preferences of the target market. When purchasing any product, a consumer goes through a
decision process. This process consists of up to five stages:
Stage 1: problem recognition,
Stage 2: information search,
Stage 3: evaluation of alternatives,
Stage 4: purchase decision
Stage 5: post purchase behavior.
The length of this decision process will vary. A consumer may not act in isolation in the purchase,
but rather may be influenced by any of several people in various roles. The number of people
involved in the buying decision increases with the level of involvement and complexity of the
buying decision behavior. Consumer s buyer behavior and the resulting purchase decision are
strongly influenced by cultural, social, personal and Psychological characteristics. An
understanding of the influence of these factors is essential for marketers in order to develop
suitable marketing mixes to appeal to the target customer.
Cultural Factors - Culture and societal Environment
Culture is crucial when it comes to understanding the needs and behaviors of an individual.
Basically, culture is the part of every society and is the important cause of person wants and
behavior. The influence of culture on buying behavior varies from country to country therefore
marketers have to be very careful in analyzing the culture of different groups, regions or even
countries. Throughout his existence, an individual will be influenced by his family, his friends, his
cultural environment or society that will teach him values, preferences as well as behaviors to their
own culture. For a brand, it is important to understand and take into account the cultural factors
inherent to each market or to each situation in order to adapt its product and its marketing strategy.
As these will play a role in the perception, habits, behavior or expectations of consumers. For
example, in the West, it is common to invite colleagues or friends at home for a drink or dinner. In

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Japan, on the contrary, invite someone home does not usually fit into the local customs. It is
preferable to do that this kind of outing with friends or colleagues in restaurant. While if a
Japanese offer you a gift, the courtesy is to offer him an equivalent gift in return. McDonald s is a
brilliant example of adaptation to the specificities of each culture and each market. Well aware of
the importance to have an offer with specific products to meet the needs and tastes of consumers
from different cultures, the fast-food giant has for example: a McBaguette in France (with french
baguette and Dijon mustard), a Chicken Maharaja Mac and a Masala Grill Chicken in India (with
Indian spices) as well as a Mega Teriyaki Burger (with teriyaki sauce) or Gurakoro (with macaroni
gratin and croquettes) in Japan.

Sub-cultures
A society is composed of several subcultures in which people can identify. Subcultures are groups
of people who share the same values based on a common experience or a similar lifestyle in
general. Each culture contains different subcultures such as religions, nationalities, geographic
regions, racial groups etc. Marketers can use these groups by segmenting the market into various
small portions. For example in recent years, the segment of ethnic cosmetics has greatly expanded.
These are products more suited to non-Caucasian populations and to types of skin pigmentation for
African, Arab or Indian
Populations for example. It’s a real brand positioning with a well-defined target in a sector that
only offered makeup products to a Caucasian target until now (with the exception of niche brands)
and was then receiving critics from consumers of different origin. Brands often communicate in
different ways; sometimes even create specific products (sometimes without significant intrinsic
difference) for the same type of product in order to specifically target an age group, a gender or a
specific sub-culture. Consumers are usually more receptive to products and marketing strategies
that specifically target them.

Social classes
Social classes are defined as groups more or less homogenous and ranked against each other
according to a form of social hierarchy. Even if it’s very large groups, we usually find similar

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values, lifestyles, interests and behaviors in individuals belonging to the same social class. Every
society possesses some form of social class which is important to the marketers because the buying
behavior of people in a given social class is similar. In this way marketing activities could be
tailored according to different social classes. Some studies have also suggested that the social
perception of a brand or a retailer is playing a role in the behavior and purchasing decisions of
consumers. In addition, the consumer buying behavior may also change according to social class.
A consumer from the lower class will be more focused on price. While a shopper from the upper
class will be more attracted to elements such as quality, innovation, features, or even the social
benefit that he can obtain from the product.
Cultural trends
Cultural trends or Bandwagon effect are defined as trends widely followed by people and which
are amplified by their mere popularity and by conformity or compliance with social pressure. The
more people follow a trend, the more others will want to follow it. For example, Facebook has
become a cultural trend. The social network has widely grew to the point of becoming a must have,
especially among young people. It is the same with the growth of the tablet market. Tablets such as
i-Pad or Galaxy Tab have become a global cultural trend leading many consumers to buy one.

Social Factors
It includes groups (reference groups, aspiration groups and member groups), family, roles and
status. This explains the outside influences of others on our purchase decisions either directly or
indirectly. Social factors are among the factors influencing consumer behavior significantly. They
fall into three categories: reference groups, family and social roles and status.

Reference groups and membership groups


The membership groups of an individual are social groups to which he belongs and which will
influence him. The membership groups are usually related to its social origin, age, place of
residence, work, hobbies, leisure, etc. Reference groups have potential in forming a person attitude
or behavior. The impact of reference groups varies across products and brands. For example if the
product is visible such as dress, shoes, car etc. then the influence of reference groups will be high.
Reference groups also include opinion leader (a person who influences other because of his special
skill, knowledge or other characteristics). More generally, reference groups are defined as those

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that provide to the individual some points of comparison more or less direct about his behavior,
lifestyle, desires or consumer habits. They influence the image that the individual has of himself as
well as his behavior. Whether it is a membership group or a non-membership group. Because the
individual can also be influenced by a group to which he doesn’t belong yet but wishes to be part
of. This is called an aspiration group. This group will have a direct influence on the consumer who,
wishing to belong to this group and look like its members, will try to buy the same products. For
example, even if he doesn’t t need it yet, a surfing beginner may want to buy advanced brands or
products used by experienced surfers (aspiration group) in order to get closer to this group. While a
teen may want the shoe model or smart phone used by the group of popular guys from his high
school (aspiration group) in order to be accepted by this group. Some brands have understood this
very well and communicate, implicitly or not, on the social benefit provided by their products.
Within a reference group that influences the consumer buying behavior, several roles have been
identified:

 The initiator: the person who suggests buying a product or service


 The influencer: the person whose point of view or advice will influence the buying
decision. It may be a person outside the group (singer, athlete, actor, etc.) but on which
group members rely on.
 The decision-maker: the person who will choose which product to buy. In general, it’s the
consumer but in some cases it may be another person. For example, the leaders of a soccer
supporters group (membership group) that will define, for the whole group, which
supporter s scarf buy and bear during the next game.
 The buyer: the person who will buy the product. Generally, this will be the final
consumer.
Family
The family is maybe the most influencing factor for an individual. It forms an environment of
socialization in which an individual will evolve, shape his personality, and acquire values. But
also develop attitudes and opinions on various subjects such as politics, society, social relations or
himself and his desires. Buyer behavior is strongly influenced by the member of a family.
Therefore marketers are trying to find the roles and influence of the husband, wife and children. If

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the buying decision of a particular product is influenced by wife then the marketers will try to
target the women in their advertisement.
Here we should note that buying roles change with change in consumer lifestyles.
For example, if you have never drunk Coke during your childhood and your parents have
described it as a product full of sugar and not good for health. There is far less chance that you are
going to buy it when you will grow up that someone who drinks Coke since childhood.

Social roles and status


The position of an individual within his family, his work, his country club and his group of friends
etc. All this can be defined in terms of role and social status. A social role is a set of attitudes and
activities that an individual is supposed to have and do according to his profession and his position
at work, his position in the family, his gender, etc. and expectations of the people around him.. For
example, a consumer may buy a Ferrari or a Porsche for the quality of the car but also for the
external signs of social success that this kind of cars represents. Moreover, it is likely that a CEO
driving a small car like a Ford Fiesta or a Volkswagen Golf would be taken less seriously by its
customers and business partners than if he is driving a German luxury car. And this kind of
behaviors and influences can be found at every level and for every role and social status. Again,
many brands have understood it by creating an image associated with their products reflecting an
important social role or status

Personal factors

It includes such variables as age and lifecycle stage, occupation, economic circumstances,
lifestyle (activities, interests, opinions and demographics), personality and self-concept. These may
explain why our preferences often change as our `situation' changes. Decisions and buying
behavior are obviously also influenced by the characteristics of each consumer.

Age and way of life


A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values,
environment, activities, hobbies and consumer habits evolve throughout his life. Age and life-cycle
have potential impact on the consumer buying behavior. It is obvious that the consumers change
the purchase of goods and services with the passage of time. Family life-cycle consists of different

22
stages such young singles, married couples, unmarried couples etc. which help marketers to
develop appropriate products for each stage. For example, during his life, a consumer could change
his diet from unhealthy products (fast food, ready meals, etc.) to a healthier diet, during mid-life
with family before needing to follow a little later a low cholesterol diet to avoid health problems.
The factors influencing the buying decision process may also change. For example, the social
value of a brand generally plays a more important role in the decision for a consumer at 25 than at
65 years. The family life cycle of the individual will also have an influence on his values, lifestyles
and buying behavior depending whether he is single, in a relationship, in a relationship with kids,
etc. as well as the region of the country and the kind of city where he lives (large city, small town,
country side, etc.) For a brand or a retailer, it may be interesting to identify, understand, measure
and analyze what are the criteria and personal factors that influence the shopping behavior of their
customers in order to adapt. For example, it is more than possible that consumers living in New
York do not have the same behavior and purchasing habits than the ones in Nebraska. For a
retailer, have a deep understanding and adapt to these differences will be a real asset to increase
sales.

Lifestyle
The lifestyle of an individual includes all of its activities, interests, values and opinions. The
lifestyle of a consumer will influence on his behavior and purchasing decisions. For example, a
consumer with a healthy and balanced lifestyle will prefer to eat organic products and go to
specific grocery stores, will do some jogging regularly (and therefore will buy shoes, clothes and
specific products), etc.

Personality and self-concept

Personality is the set of traits and specific characteristics of each individual. It is the product of the
interaction of psychological and physiological characteristics of the individual and results in
constant behaviors. It materializes into some traits such as confidence, sociability, autonomy,
charisma, ambition, openness to others, shyness, curiosity, adaptability, etc. While the self-concept
is the image that the individual has or would like to have of him and he conveys to his entourage.
For example, since its launch, Apple cultivates an image of innovation, creativity, boldness and

23
singularity which is able to attract consumers who identify to these values and who feel valued in
their self-concept by buying a product from Apple.

Occupation
The occupation of a person has significant impact on his buying behavior. For example a
marketing manager of an organization will try to purchase business suits, whereas a low level
worker in the same organization will purchase rugged work clothes.

Economic Situation
Consumer economic situation has great influence on his buying behavior. If the income and
savings of a customer is high then he will purchase more expensive products. On the other hand, a
person with low income and savings will purchase inexpensive products.
.
Personality
Personality changes from person to person, time to time and place to place. Therefore it can greatly
influence the buying behavior of customers. Actually, Personality is not what one wears; rather it
is the totality of behavior of a man in different circumstances. It has different characteristics such
as: dominance, aggressiveness, self-confidence etc. which can be useful to determine the consumer
behavior for particular product or service.

Psychological factors
It affecting our purchase decision includes motivation (Maslow's hierarchy of needs), perception,
learning, beliefs and attitudes. Other people often influence a consumer s purchase decision. The
marketer needs to know which people are involved in the buying decision and what role each
person plays, so that marketing strategies can also be aimed at these people. Among the factors
influencing consumer behavior, psychological factors can be divided into 4 categories: motivation,
perception, learning as well as beliefs and attitudes.

24
Motivation
Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of a
need is which became pressing enough to lead the consumer to want to satisfy it. It is usually
working at a subconscious level and is often difficult to measure. The level of motivation also
affects the buying behavior of customers. Every person has different needs such as physiological
needs, biological needs, social needs etc. The nature of the needs is that, some of them are most
pressing while others are least pressing. Therefore a need becomes a motive when it is more
pressing to direct the person to seek satisfaction. Motivation is directly related to the need and is
expressed in the same type of classification as defined in the stages of the consumer buying
decision process. To increase sales and encourage consumers to purchase, brands should try to
create, make conscious or reinforce a need in the consumer s mind so that he develops a purchase
motivation. He will be much more interested in considering and buy their products. They must
also, according to research, the type of product they sell and the consumers they target, pick out
the motivation and the need to which their product respond in order to make them appear as the
solution to the consumers need.

Perception
Perception is the process through which an individual selects, organizes and interprets the
information he receives in order to do something that makes sense. The perception of a situation at
a given time may decide if and how the person will act. Selecting, organizing and interpreting
information in a way to produce a meaningful experience of the world is called perception. There
are three different perceptual processes which are selective attention, selective distortion and
selective retention. In case of selective attention, marketers try to attract the customer attention.
Whereas, in case of selective distortion, customers try to interpret the information in a way that
will support what the customers already believe.

Selective Attention

The individual focuses only on a few details or stimulus to which he is


subjected. The type of information or stimuli to which an individual is more sensitive depends on
the person. For brands and advertisers successfully capture and retain the attention of consumers is

25
increasingly difficult. For example, many users no longer pay any attention, unconsciously, to
banner ads on the Internet. This kind of process is called Banner Blindness. The attention level
also varies depending on the activity of the individual and the number of other stimuli in the
environment. For example, an individual who is bored during a subway trip will be much more
attentive to a new ad displayed in the tube. It is a new stimuli that breaks the trip routine for him.
Consumers will also be much more attentive to stimuli related to a need. For example, a consumer
who wishes to buy a new car will pay more attention to car manufacturers’ ads. While neglecting
those for computers. Lastly, people are more likely to be attentive to stimuli that are new or out of
the ordinary. For example, an innovative advertising or a marketing message widely different from
its competitors is more likely to be remembered by consumers.

Selective Distortion

In many situations, two people are not going to interpret information or a stimulus in the same
way. Each individual will have a different perception based on his experience, state of mind,
beliefs and attitudes. Selective distortion leads people to interpret situations in order to make them
consistent with their beliefs and values. For brands, it means that the message they communicate
will never be perceived exactly in the same way by consumers. And that everyone may have a
different perception of it. That is why it’s important to regularly ask consumers in order to know
their actual brand perception. Selective distortion often benefits to strong and popular brands.
Studies have shown that the perception and brand image plays a key role in the way consumers
perceived and judged the product. Several experiments have shown that even if we give them the
same product, consumers find that the product is or tastes better when they’ve been told that it’s
from a brand they like than when they’ve been told it’s a generic brand.

Selective Retention
People do not retain all the information and stimuli they have been exposed to. Selective
retention means what the individual will store and retain from a given situation or a particular
stimulus. As for selective distortion, individuals tend to memorize information that will fit with
their existing beliefs and perceptions. For example, consumers will remember especially the
benefits of a brand or product they like and will forget the drawbacks or competing products
advantages.

26
Learning
Learning is through action. When we act, we learn. It implies a change in the behavior resulting
from the experience. The learning changes the behavior of an individual as he
Acquires information and experience. For example, if you are sick after drinking milk, you had a
negative experience, you associate the milk with this state of discomfort and you learn that you
should not drink milk. Therefore, you don t buy milk anymore. Rather, if you had a good
experience with the product, you will have much more desire to buy it again next time. The
learning theories can be used in marketing by brands.

Beliefs and attitudes


A belief is a conviction that an individual has on something. Through the experience he
acquires, his learning and his external influences (family, friends, etc.), he will develop beliefs that
will influence his buying behavior. Customer possesses specific belief and attitude towards various
products. Since such beliefs and attitudes make up brand image and affect consumer buying
behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes
of customers by launching special campaigns in this regard. To change the brand s marketing
message or adjust it’s positioning in order to get consumers to change their brand perception.

Consumer buying behavior process


In the field of Consumer behavior research the classical model of consumer buying behavior is of
utmost important. We as persons take actions in purchasing and using products and services and
actions are derived by mental and social process. Behavioral science helps us to better understand
why we go for a certain product and why not, why we set priories while making decision

27
Figure.3.1: Consumer buying behavior process

Consumer decision process carries five stages, starting with Problem


recognition and following Information search, Evaluation of alternatives Purchase decision and
finally Post Purchase behavior. Problem recognition starts with the perception of need and moves
towards information search where consumer uses internal and external sources to analyze given
information and use that information in the next step of evaluation of alternatives. While
evaluating alternatives one assessing values of the products by giving weights. Once you have
successfully evaluated alternatives you will move towards purchase decision where you may
encounter three possibilities, from whom to buy, when to buy and do not buy. Once you have
actually made the purchase now it comes to Post purchase behavior, whether you are satisfied or
dissatisfied with your purchase, Solomon, bossy, askegaard and hogg (2006)
 Theories of planned behavior (TPB)

Theory of planned behavior proposed by Icek Ajzen (1988, 1991) actually provides a
link between attitude and behavior. Consumer action is guided by three considerations.
 Behavioral Beliefs

 Normative Beliefs

 Control Beliefs

28
TPB is basically an extension of theory of reason action (TRA) proposed by (Ajzen & Fishbein,
1980; Fishbein & Ajzen, 1975). As you can see in the below figure and as suggested by Icek Ajzen
(1988, 1991) intention serve as a central role to perform a behavior. Icek Ajzen (1988, 1991) also
proposed that a given behavior is influenced by the certain factors and these factors are assumed to
be captured by the intention. In Icek Ajzen (1988, 1991) words these intentions indicate as how
one is willing to put the effort in order to perform a given behavior. As you can see in the below
figure attitude towards behavior and subjective norm are basically the factors that influence
intention and as discussed above intention serve as a central role to perform behavior. On the other
side perceived behavioral control actually moves towards the actual behavioral by influencing the
intention.
 Behavioral belief: It’s about one’s belief about the final outcome of particular behavior,
Icek Ajzen (1988, 1991).
 Attitude toward behavior: It is about personal performance of individual’s positive or
negative evaluation Icek Ajzen (1988, 1991). It is considered as personal or 20 emotional
factor that can affect in a positive or negative manner, Icek Ajzen (1988, 1991).
 Normative belief: It is about individual’s particular behavior that can be influenced by
other important actors, Icek Ajzen (1988, 1991). These actors can be your friends, family
members, co-workers etc.
 Subjective norm: Its concerns with social normative pressures or other belief that can
affect one’s behavior whether a person should perform the behavior or not, Icek Ajzen
(1988, 1991).Subjective influence is basically the social influence factor.

 Perceived behavioral control: An individual's perceived ease or difficulty of performing


the particular behavior, Ajzen, (1988). A person’s way of performing a particular behavior
with some difficult or performing it easily, Ajzen, (1988).

 Control beliefs: Person’s beliefs about the presence of circumstances that may help or
prevent performance of the behavior, Ajzen (2001)

29
Schematic diagram of theory of planned behavior

Figure 3.2. Schematic diagram of theory of planned behavior by Ajzen, (1991)

(Source: Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes,
50, p. 179-211)

 Technology acceptance model (TAM)


Technology acceptance model (TAM) is an extension to Theory of reasoned action proposed by
(Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975), TAM is developed by (Fred Davis and
Richard Bagozzi (Davis 1989, Bagozzi & Warshaw 1992). TAM is basically information system
theory that covers how a user accepts and uses a technology, TAM outlines number of factors that
influence a user’s decision and at the same time it deals with the how and when users will use it.
The model deals with the acceptance of information technology. The external factors that influence
users to make a decision are:
 Perceived Usefulness (PU)

 Perceived Ease of Use (PEOU)


In Davis (1989) words Perceived Usefulness (PU) is the “the degree to which a
person believes that using a particular system would enhance his or her job performance" and

30
Perceived Ease of Use (PEOU) is the “degree to which a person believes that using a particular
system would be free from effort”. The main purpose of the TAM is to explain how a user accepts
a specific technology.

Figure 3.3: Technology Acceptance Model (TAM) by (Davis 1989, Bagozzi & Warshaw
1992).

As you can see in the above figure PU and PEOU are the external factors that influence the
behavior intention to use and then finally it moves towards the actual system use, as you can see in
the above figure author has explained that user will first consider that if he or she uses the
particular system that would be free from effort and that is PEOU factor and then this factor leads
to the one’s thinking that particular system will increase one’s job performance and that is PU
factor, and then he or she will move forward to think about creating and intention to use that
system and finally the will actually use the system.

31
CHAPTER 4
VKC, Dimesco footcare India Pvt.Ltd – An overview
VKC group of companies

“VKC group of companies are the leading footwear manufacture especially in southern region of
India. The group established on (August17) 1984 with a nominal capital and few employees. In
1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet manufacturing
unit with his two brothers. Later on Hawai straps were also inducted to the production line and in
1986 VKC group launched the first product with its own brand name in the market viz. VKC
Hawai with an initial production of 600 pairs per day. By 1989 the production increased to 5000
pairs a day and by 1996 it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC footwear manufacturing unit in the
Malabar Area of Kerala state with few of his friends. This product also got very good acceptance
in the market. The success of the first unit and the RPVC unit gave a signal to the business
community and the vast potential was seen by the various industrialists. This resulted in a rapid
change in the footwear industry itself. Within a few years the number of Rubber and RPVC unit
grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This
resulted in a big change and the multinational brands felt competitions from the local brands. In
1998 the group started the first Micro Cellular PVC footwear in Kerala with imported plant and
machinery. “Quality at low price” made the VKC groups products popular in the market day by
day. It also expanded its market to other southern states.

In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in the South
India. In 2003 the group ventured the first Injected EVA manufacturing unit in South –Central
India. In 2006 the group started backward integration to produce EVA compound for Injection and
started the first EVA compounding plant in the South –Central India. The unit went in 2007 the
group started manufacturing of PU DIP footwear.

During this period new bloods with technical, commercial and practical knowledge were inducted
and now the group consists of 25 working Directors and 100 share holders spread over 16 various

32
units. And have annual group turnover of Rs.4000 million. More than 4000 employees are working
in these units.

The company had achieved a prominent position in the footwear market of India. The main
markets, which are concentrated by the company, are Kerala, Tamilnadu and Karnataka.The good
quality and variety in models of VKC products help the companies to face the market competition.
The company has been able to maintain the quality of the products by adopting foreign
technologies. The group is now looking for further avenues in the field of footwear to stretch their
hands.

Who We Are:

Our Vision, Mission and Motto

Vision

To provide quality products to the customer at an affordable price.

Mission

To meet the market demand and to achieve a prominent position in the Footwear industry.

Motto

“Quality products at Affordable Price”

The Head Quarter of VKC group is in CALICUT and the plants of VKC group of companies are
situated in Kerala, Tamilnadu, Andra Pradesh and Gujarat. The following are the associate
companies of VKC group.

1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.


2. M/s. VEEKESY ELASTOMERS PVT.LTD.
3. M/s. VEEKESY POLYMERS PVT.LTD.
4. M/s. SANDLON TECHNOLOGIES PVT.LTD.
5. M/s. FORTUNE ELASTOMERS PVT.LTD.

33
6. M/s. CALTECH POLYMERS PVT.LTD.
7. M/s. SLIPONS INDIA PVT.LTD
8. M/s. DIADORA SHOES PVTLTD.
9. M/s. DIMESCO FOOTCARE INDIA PVT LTD.
10. M/s. FERRARI SHOES (INDIA) PVT.LTD
11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD
12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD
13. M/s. MORBIDO VINYL PVT.LTD.
14. M/s. SMARTAK FOOTCARE PVT. LTD.
15. M/s. VKC FOOTSTEPS INDIA PVT.LTD
16. VKC FOOTPRINTS GLOBAL PVT LTD
17. VKC FOOTWEAR INTERNATIONAL PVT LTD
18. M/s VEEKESY SANDALS INDIA PVT LTD

34
Chart.4.1: organizational structure chart of VKC Group.

CHAIRMAN

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

DIRECTOR

MANAGER

ASSISTANT MANAGER

MATERIALS FINANCE PRODUCTION SALES

DEPARTMENT HEAD PRODUCTION HEAD DEPARTMENT HEAD


DEPARTMENT HEAD

EXECUTIVE SHIFT ENGINEERS EXECUTIVE


EXECUTIVE

JUNIOR EXECUTIVE COORDINATOR JUNIOR EXECUTIVE


JUNIOR EXECUTIVE

SUPERVISOR

PERSONNEL
SKILLED WORKERS UNSKILLED WORKERS

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

35
Dimesco Foot care India Pvt. Ltd – A profile

M/s. Dimesco Foot care India Pvt. Ltd. is a group company of renowned VKC Group. It
is registered private limited company and incorporated on 15.03.2005 under the Companies Act,
1956. The commercial production of the company was started on 01.08.2006.

The founder of M/s. Dimesco Footcare India Pvt. Ltd. is Mr. V.K.C. MAMMED KOYA.
The management of the company now consist Si Directors. The Chairman of the Company is Mr.
V.K.C.Mammed Koya and Managing Director is Mr. V. Abdul Razak.

M/s. Dimesco Foot care India Private Limited is a footwear manufacturing company in South
India. The Company adopts Italian Technology for manufacturing of PU and Stuck on footwear’s.
The product group consists of Ladies, Gents, Boys and Children footwear with full PU and EVA
sole with synthetic leather upper.

The company market footwear under the brand name of “VKC Trends and VKC Pride”. The
aggressive marketing techniques adopted by the company through various media coupled with
consistent quality of the product at affordable price opened new era of footwear in Kerala market
replacing conventional products and other well established brands in this segment. Apart from
Kerala the company has a good market for their product in Middle East countries also. The
company keeps an eye on the ever changing trends of the footwear market and introduces
innovative models and concepts in EVA footwear so as to be the leader in this segment.

All affairs and day-to-day business administration of the firm is vested in the hands of Boards
of Director. They are in charge of various activities like Production, Finance & Marketing. The
board is assisted by qualified administrative staffs.

PRESENT BOARD OF DIRECTORS:

1. Mr. VKC MAMMED KOYA (Chairman)


2. Mr. V. ABDUL RAZAK (Managing Director)
3. Mr. V.P AZEEZ ( Director)

36
4. Mr. P.M. SHIRAZ (Director)
5. Mr. V.P MUSTHAFA (Director)
6. Mrs. SAJNA RAZAK (Director)
There are nineteen administrative staffs in the company. The total number of workers in this unit
is 220.

Company exports their products to all Middle East countries, Malaysia and Singapore .Export
turnover for last year is 1.82 Crore and total turnover in 2013-14 is 37.78 Crore

Products of VKC Dimesco

VKC PRIDE

VKC TRENDZ

VKC JUNIOR

37
Chart 4.2: Organizational structure chart of Dimesco footcare India Pvt.Ltd
CHCCCC
CHAIRMAN

DIRECTORS

MANAGER
(ADMINISTRATION)

ASSISTANT MANAGER

MATERIALS FINANCE PRODUCTION SALES

DEPARTMENT HEAD
DEPARTMENT HEAD DEPARTMENT HEAD PRODUCTION HEAD

EXECUTIVE EXECUTIVE COORDINATOR EXECUTIVE

VKC DIMESCO - OFFICES


JUNIOR EXECUTIVE JUNIOR EXECUTIVE SHIFT ENGINEERS JUNIOR EXECUTIVE

PERSONNEL SUPERVISORS

DEPARTMENT HEAD SKILLED WORKERS

EXECUTIVE UNSKILLED WORKERS

JUNIOR EXECUTIVE

38
OFFICES
OF
DIMESCO

KINALUR
(BRANCH)
KOLATHARA
(BRANCH) CHELEMBRA
(HEAD OFFICE)

Figure 5.1: offices of Dimesco

PROCESS OF MANUFACTURING

The EVA Co-polymer is mixed with other ingredients like Engage, ADC Blowing Agent, DCP,
Fillers, Activators and color pigments in a closed chamber (Kneader). To reduce the cost EVA
Crumb powder is also added. This mixed stock is dumped to a skip conveyor and transferred to a
twin-screw force feeder and to an extruder with perfect temperature control. This hot extruded
material is cut to small granules with a die face cutting machine at high rpm. The granules are
then passed through cyclones with the help of air blower and cooled and stabilized. This material

39
is then collected in a blender with high capacity. This helps the homogenizing of different batches.
The homogenized material is then packed and transferred to store.

TPR Compound is used to make TPR soles in a rotary injection moulding machine. The
TPR compound is fed to the machine hopper and injected to the mould. The EVA preformed
blocks are used to make EVA midsole. These midsoles are made by second forming machine. The
preformed blocks are fed on to a mould and heated for about 8-10 minutes at 160 degree. When the
time reaches the mould is transferred to the nearby station to cool down to normal temperature by
spraying water. After attain the room temperature the midsoles are taken out. (The upper are made
by cutting and stitching of synthetic leather EVA laminated sheets etc.) This mid sole and out sole
are then joined with adhesives with the upper on a conveyor. Depending up on the quality, one or
two coats of adhesives are applied. The manually joined upper and mid-bottom soles are pressed in
a sole pressing machine and the cooled in a chiller. This is then packed and sent to the market.

Polyurethane consists of two components viz Iso and Polyol. These two components are
stored in separate tanks and poured in a pre-fixed ratio for optimum result, to the mould in which
footwear uppers are fixed. The moulds are kept on the PU Conveyer. The footwear upper and
insole are made by cutting synthetic leather in the clicking machine and stitching work is done on
stitching machine, printing and embossing work is done on the upper and insole as per
requirement. The products are then demoulded after 3 - 4 minutes. The edges are trimmed by using
trimmer machine and packed in cardboard boxes on a packing conveyer.

40
Chart 4.3: Process flow chart (PU)

RAW MATERIALS
SYNTHETIC LEATHER
(ISO & POLYOL)

CLICKING PRINTING &


EMBOSSING

FINISHED UPPER STITCHING

MOULDING

DEMOULDING

TRIMMING

PACKING

41
Chart 4.4: Process flow chart (stuck on)

TPR SOLE FROM EVA MID SOLE FROM SYNTHETIC LETHER


EVA COMPOUND
ROTRY MACHINE MACHINE

CLICKING MACHINE

STITCHING MACHINE
APPLY ADHESIVE

FINISHED UPPER

HEAT ACTIVATION
THROUGH HEAT CHAMBER APPLY ADHESIVE

JOIN AND PRESS SOLE AND


IN SOLE PRESSING
MACHINE

PASS THROUGH CHILLER

PACKING

42
For the past few years, the Indian retail sector has been witnessing tremendous growth, and
contributing significantly to the country’s GDP. Though the country’ retail sector is highly
unorganized, organized retailing is growing at a rapid pace to grab a considerable market share.
According to our new research report, with the growth in organized retailing, the online retail
segment is emerging as a new platform in the market. It is estimated that the online retail market
will grow at a compound annual rate of around 39% during FY 2013 to FY 2016.

The report, “Indian Online Retail Market Analysis”, finds that online retail has been growing in
the country at an unprecedented rate. With the rising internet penetration and broadband
availability, and growing culture of Smartphones and tablets, people have started buying products
online. As per our study, the major reasons driving the online buying is cash-on-delivery facility,
and discounts & offers provided by the online retailers. The busy lifestyle in metros is also
propelling people to buy products online. On studying the latest trends and drivers, we observed
how the growing sales of kids’ products and grocery are expected to boost the online retail market
in India.

As per our research, online retail account for less than 1% of the total retail market in India, and
thus, presents a huge growth potential for international retailers. Domestic players are also
expanding their reach to the online customers. For understanding the market in a better way, we
also conducted a survey on consumer behavior towards online shopping. It revealed that metros or
tier-I cities have more awareness about online retailing as compared to tier-II & III cities. It was
also found that electronic products are most popular among online buyers. The survey also
analyzed buying habits, major reasons for online shopping, purchase preferences, and spending
patterns under different price bands.

The government is supporting the growth of organized retailing, and has allowed 100% FDI for
single brand retail outlets, and 51% for multi-brand retail outlets. Our report provides an insight
into the government policies and regulations (cyber laws), and various industry roadblocks which
will help clients understand the market structure. In order to study the competitive landscape, we
have also done a SWOT analysis of major players in the Indian online retail market, including
flipkart.com, snapdeal.com, and homeshop18.com. We are hopeful that this comprehensive
research work will prove decisive for the clients. The following table gives a glimpse of the top ten
leading e-commerce sites of 2014.
43
Table 4.1: List of top ten e-commerce sites.

Ranking Websites Services Offered

It is a mega online store


1 Flipkart
which offers wide range of
products including clothes,
books and Electronics.

It has unique business


2 Ebay India
concept where a seller can
.
sell the product directly to
buyer
It is online marketing and
3 Snapdeal
shopping company which has
existence in more than 400
cities in India
It has been a front runner in
4
Online shopping websites in
. Jabong
India and offer attractive
discounts, promotional and
deals for Indian customers on
many fashion, home décor
and lifestyle variants.

It retails many famous


5 Myntra
national and international
.
brands like Puma, Adidas,
John miller, Lotto and many
more

44
It offers wide range of
6 Tradus
wholesale and retail products
online. Tradus. com is an
Auction and shopping
company operate in many
European countries.

Junglee is an online website


7 Junglee
which provides electronics,
lifestyle, men & women
apparel, accessories, movie
CD/DVD, home décor
products etc.
It is an online shopping
8 Homeshop18
website and retail distribution
network company

.
An online mega store
9
Shopclues recorded highest growth in
year 2012 and Alexa ranked
1000 in mid of August -13.

It deals in many top national


10 Yebhi
& International brands and
products such as footwear,
fashion, accessories and
jewellery.

45
Chapter 5

Analysis & interpretation

Table 5.1: Demographic profile of Respondents

The following table reveals the Gender, Age, occupation, Education, Income, and residence details
of respondents who uses internet.

DEMOGRAPHIC PROFILE

Demographic Features Numbers of Respondents Percentage in Total


sample

GENDER

Male 63 52.5

Female 57 47.5

AGE

Less than 20 12 10

21-30 83 69.2

31-40 9 7.5

Above 40 16 13.3

OCCUPATION

Full time employment 37 30.8

Part time employment 14 11.7

Student 59 49.2

46
INCOME
Less than 10000 71 59.2

10000-15000 27 22.5

15000-20000 11 9.2

Above 20000 11 9.2

EDUCATION

Below plus two 25 20.8

Graduation 41 34

PG 36 30

Above PG 18 15

RESIDENCE

Rural 73 60.8

Urban 34 28.3

other 13 10.8

The above tables reveal that from the sample which we have collected, 52% are males and
remaining 48% are females. As far as the ages of the respondents are concerned 10% are below
years followed by 30-39 years with 69%. If we consider the educational qualifications 64% of
respondents are postgraduates & graduates and only 15% are having qualification above that, and
only 20%are below higher secondary level. As far as their monthly income is concerned 59% are
earning below 10000 rupees, most of these categories were student followed by 23% with an
income between 10000-15000 per month. Above 49% of the respondents were students, followed
by 31% fulltime employees. Most of the respondents were belonging to rural areas followed by
urban area 28%.

47
INTERNET SHOPPING

The following helps to reveals online shopping habits of respondents.

Table 5.2:Response towards internet shopping

Frequency Percentage

Never 13 10.8

Occasionally 46 38.3

Very often 61 50.9


Source: Primary data

Graphical representation of the above data is as follows

Figure5.1: Response towards internet shopping

61 percent people have been frequently using online stores for shopping, 38.3 percent are
occasionally using and Out of the sample taken only10.8 percent people have never used internet
for shopping.

48
EXPERIENCE OF USING ONLINE SHOPPING

Here the experience of the respondents in using online shopping is obtained.

Table5.3:Years of experience of respondents

Frequency Percentage

More than 5 Years 7 5.8

3-4Years 10 8.3
1-2Years 35 29.2

Less than 1Year 53 44.2


Source: Primary data

Graphical representation of the above data is as follows

Figure.5.2: Years of experience of respondents

The survey has shown that the maximum people have an experience of Less than a year or 1-2
years, only 8.3 percentage people have an experience of 3-4 years, just 7 people surveyed have an
experience of more than 5 years.

49
SEARCH FOR PRODUCT INFORMATION

It helps to find out how frequently people use internet for searching information about any
product or service.

Table5.4: information search habits of respondents

Frequency Percentage

Never 4 3.3

Often 60 50.0

Very often 43 35.8


Source :primary data

Graphical representation of the above data is as follows

Figure 5.3: information search habits of respondents

It has been documented that out of 120 people, 43 people are using the internet very often for
searching a product’s information, 60 people are using often. It has also shown the interest of the
respondents for a specific category of products on internet

50
PRODUCTS PURCHASED

It helps to find what types of products are usually purchased by of the respondents from online
stores.

Table 5.5: Products that are usually purchased by respondents

Frequency Percentage

*Electronics 51 42.5

Cloths 43 35.5

Footwear 38 31.7

*Services 36 30.0

Others 22 18.3

Source :primary data

Graphical representation of the above data is as follows

60

50

40

30

20

10

0
Electronics Cloths Footwear Services Others

Figure 5.4: Products that are usually purchased by respondents

51
It has been depicted that majority of the people (42.5%) buy electronic gadgets followed
by cloths (35.5%) and footwear’s (31.7%).There is good consumption of services through online
shops. Only 18.3% depends online stores for goods listed in others.

(*Electronics includes Mobiles, Laptops, CDs, Pen drives, Cameras, software, and all type of electronic gadgets;
Services include ticketing, hotels and all kinds of services available; Others include Books, Toys, Food items, House
wares, Ornaments, Flowers, Gifts and other utility products etc .)

52
ONLINE SHOPPING AND TIME SAVING

It helps to find whether the online shopping helps to save the time of the respondents.

Table 5.6:Respondents opinion about online shopping saving time


Frequency Percentage

Very Low 1 .8

Low 5 4.2
Neutral 25 20.8

High 51 42.5

Very High 26 21.7


Source: primary data

Graphical representation of the above data is as follows

Figure 5.5: Respondents opinion about online shopping saving time

The survey has shown that 64.2 percent respondents have agreed that online shopping saves time.
Thus the majority of the people agreed with the time saving quality of online shopping

53
ONLINE SHOPPING AND MONEY SAVING

It helps to find whether the online shopping helps to save money of the respondents.

Table 5.7: Respondents opinion about online shopping saving money

Frequency Percentage

Strongly disagree 4 3.7

Disagree 2 1.9
Neutral 27 25.0

Agree 62 57.4

Strongly Agree 13 12.0


Source: primary data

Graphical representation of the above data is as follows

Figure 5.6: Respondents opinion about online shopping saving money.

The survey showed that 12 percent respondents were strongly agreed and 57.4 percent respondents
were found agreed that online shopping saves their money. Only less than 5 percent respondents
were found disagreed to this statement.

54
MORE RELAXING SHOPPING

It helps to see whether online shopping gives more relaxation.

Table 5.8: Respondents view about online shopping giving relaxation

Frequency Percentage

Very low 0 0.0


Low 6 5.6
Neutral 18 16.7
High 67 62.0
Very High 17 15.7

Source: primary data

Graphical representation of the above data is as follows

Figure 5.7: Respondents view about online shopping giving relaxation

It is one of the important factors that encourages for online shopping. The survey conducted
showed that majority of the people strongly agreed to this reason and only 6 people out of 120
disagreed to call online shopping a more relaxing shopping.

55
MODE OF PAYMENT

This helps to find the most preferred mode of payment by the respondents.

Table 5.9:Mode of payment preferred by respondents

Frequency Percentage

Other 4 3.7

Card Payment 32 29.6

Fund Transfer 14 13.0

Cash on delivery 54 50.0


Source: primary data

Graphical representation of the above data is as follows

Mode of payment

Figure 5.8: Mode of payment preferred by respondents

The payment mode for online shopping included credit/Debit card, Cash on delivery, bank
transfer, others etc. The majority of people were found making cash on delivery, and through card
payment.

56
SECURITY OF TRANSACTIONS

It helps to find the importance of security of transaction in online shopping.

Table 5.10: Respondents opinion about security of transaction.

Frequency Percentage

No 33 30.6

Yes 75 69.4

Source: primary data

Graphical representation of the above data is as follows

Figure 5.9: Respondents opinion about security of transaction

This is a major factor for which the respondents may have different perceptions
for online shopping. The data collected from respondents regarding this showed that out of 120
people surveyed, 75 felt that online shopping is secure and 33 felt the opposite. The response
wasn’t obtained from 12 people.

57
COMPANY PROFILE AND BRAND IDENTITY IN MARKET

This helps to see how many of the respondents do consider the company profile and brand identity
of online shopping sites.

Table 5.11: Respondents views about company profile and brand identity

Frequency Percentage

Strongly Disagree 1 .9
Disagree 2 1.9
Neutral 17 15.7
Agree 59 54.6
Strongly agree 28 25.9
Source: primary data

Graphical representation of the above data is as follows

Company profile and brand identity

Figure 5.10: Respondents views about company profile and brand identity

This parameter may influence online shopping behavior of consumers to a great extent. Out of
120 people surveyed, 87 agreed that the profile of the company and brand is considered as an
important parameter for them while doing online shopping.

58
CERTIFICATION OF SECURITY

It helps to find how many of the respondents are considering security certification of online
shopping sites.

Table 5.12: Respondents views about security certification.

Frequency Percentage

Disagree 3 2.5

Neutral 26 21.7

Agree 55 45.8

Strongly agree 24 20.0


Source: primary data

Graphical representation of the above data is as follows

Figure 5.11: Respondents views about security certification.

Generally people look for security certificated websites for online shopping. Approximately 70
percent respondents were agreed to this. These respondents were agreed that they strongly value
security certification while online shopping

59
CUSTOMER SERVICES

It help to find how many of the respondents do consider the customer services provided by the
online shopping sites.

Table 5.13: Respondents opinions on customer services provided

Frequency Percentage

Strongly Disagree 1 .8
Disagree 4 3.3
Neutral 23 19.2
Agree 65 54.2

Strongly agree 15 12.5


Source: primary data

Graphical representation of the above data is as follows

Figure 5.12: Respondents opinions on customer services provided.

Consumers value customer service a lot and the survey revealed that the majority agreed to
the importance of this feature.

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DETAILED PRODUCT INFORMATION

Helps to see whether detailed product information provided by the online sites are useful or not.

Table 5.14: Response towards product information provided by the sites

Frequency Percentage

Strongly Disagree 1 .9

Disagree 4 3.7

Neutral 14 13.0

Agree 67 62.0

Strongly agree 22 20.4


Source: primary data

Graphical representation of the above data is as follows

Figure 5.13: Response towards product information provided by the sites

Eighty percent respondents were saying that giving detailed product information of e-tail stores
affect the decision of online shopping.

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WEBSITE OPTIONS

It helps to identify the response towards the different options provided in online shopping sites.

Table 5.15: Responds towards different options provided in online sites

Frequency Percentage

Strongly Disagree 0 0.0

Disagree 4 3.7
Neutral 18 16.7
Agree 64 59.3
Strongly agree 22 20.4
Source: primary data

Graphical representation of the above data is as follows

Figure 5.14: Response towards different options provided in online sites

Only 4 percent respondents were not agreed to this statement. Majority of the respondents
were convinced that an e-tail store giving large number of options is always preferred by them for
shopping.

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COST OF DELIVERY

It’s to find the respondents attitude towards the cost of delivery incurred for products
which are purchased through online shopping sites.

Table 5.16: Response towards cost of delivery of goods purchased

Frequency Percentage

Strongly Disagree 1 .9
Disagree 5 4.6
Neutral 24 22.2
Agree 57 52.8

Strongly agree 21 19.4


Source: primary data

Graphical representation of the above data is as follows

Figure 5.15: Response towards cost of delivery of goods purchased

Cost of delivery sometimes comes under hidden charges if not properly noted during online
shopping and majority of respondents were agreed to it. Thus it is also an important feature to
consider.

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SPEED OF DELIVERY

It’s to find the respondents attitude towards the speed of delivery incurred for products which
are purchased through online shopping sites.

Table 5.17: Response towards Speed of delivery

Frequency Percentage
Strongly disagree 0 0.0
Disagree 4 3.8
Neutral 25 23.8
Agree 47 44.8
Strongly Agree 29 27.6
Source: primary data

Graphical representation of the above data is as follows

Figure 5.16: Response towards Speed of delivery

This is another important feature of online shopping. Only 4 percent respondents were
disagreed to it and eleven percent respondents gave neutral opinion. Rest all the respondents said
that the speed of delivery affects their online shopping decision.

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SIMPLICITY OF BUYING PROCESS

This is to know how much a customer values the simplicity of buying process while purchasing
from an online shopping site.
Table 5.18:Respondents opinion towards Simplicity of buying process

Frequency Percentage

Strongly Disagree 1 .9

Disagree 2 1.9
Neutral 14 13.0
Agree 68 63.0
Strongly agree 23 21.3
Source: primary data

Graphical representation of the above data is as follows

Figure 5.17: Respondents opinion towards Simplicity of buying process


It is very important for the purchase process to be simple for encouraging online shopping.
Thus is has been considered a very important feature by majority of the people (84%). Only three
respondents were disagreed to this statement.

65
PRIVACY OF CUSTOMER’S INFORMATION

This is to know how much a customer values the privacy of customer’s information while
purchasing from an online shopping site.

Table 5.19: Respondents opinion towards privacy of customer information

Frequency Percentage

Strongly disagree 0 0.0

Disagree 4 3.7
Neutral 25 23.1
Agree 61 56.5
Strongly agree 18 16.7
Source: primary data

Graphical representation of the above data is as follows

Figure 5.18: Respondents opinion towards privacy of customer information

Every customer values this feature as privacy is the key concern for everyone. 18 people strongly
agreed to this feature and 61 agreed.

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ABILITY TO TRACK SHOPPING HISTORY

It is find customers consideration towards the tracking ability of online shopping sites.
Table 5.20: Respondents opinion on the ability of site to track the orders
Frequency Percentage

Strongly Disagree 0 0.0

Disagree 3 2.8

Neutral 34 31.5
Agree 45 41.7

Strongly agree 26 24.1


Source: primary data

Graphical representation of the above data is as follows

Figure 5.19: Respondents opinion on the ability of site to track the orders

It is also one of the important features as people expect to keep track of their shopping
history for keeping track of various information. As can be seen from the bar chart that majority of
the respondents like this feature of an e-tail store.

67
SPEED OF WEBSITE

This is to know how much a customer values the speed of website while purchasing from an online
shopping site.

Table 5.21: Response on speed of web sites

Frequency Percentage

Strongly Disagree 0 0.0

Disagree 0 0.0
Neutral 26 24.1
Agree 63 58.3
Strongly agree 29 17.6
Source: primary data

Graphical representation of the above data is as follows

Figure 5.20: Response on speed of web sites

This is a valuable feature to encourage online shopping by keeping the customers calm and
active. The majority of the people (75%) were found agreed to it, 24percent people were of neutral
opinion regarding this.

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WEBSITE INTERFACE

This is to know to what extent the website interface attract the online shopping customers.

Table 5. 22: Opinions of respondents towards the web site interface

Frequency Percent

Strongly Disagree 0 0.0

Disagree 2 1.9

Neutral 21 19.4

Agree 66 61.1
Strongly agree 19 17.6
Source: primary data

Graphical representation of the above data is as follows

Figure 5.21: Opinions of respondents towards the web site interface

This is another feature of online shopping which if considered by the customers visiting e-stores.
Majority of the respondents were agreed that the interface of online website is duly considered by
them.

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PERSONALISED OFFERS BY WEBSITES

This is to find whether the consumers are influenced by personal offers given by online
shopping sites.

Table 5.23: Responds towards the personal offers given by the sites

Frequency Percent

Strongly disagree 0 0.0

Disagree 2 1.9

Neutral 17 15.7
Agree 52 48.1
Strongly agree 37 34.3
Source: primary data

Graphical representation of the above data is as follows

Figure 5.22: Responds towards the personal offers given by the sites

The majority of the respondents showed their interest in excitement in personalized offers given
by online shops.

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Factor Analysis
Here with the help of Rotated Component Matrix factor analysis is done, so as to find the relevant
factors of the study.

Table 5.24: Factor analysis, rotated Component Matrix


Variables
Competency Attractiveness Security Convenience Website Quality

Speed of Website .823


Speed of Delivery .564
Cost Of Delivery .511
Customer Services .800

Personalized Offers .555


Company Profile and Brand Identity .510

Security Certification .885

Privacy Of Customers Information .606

Simplicity Of Buying Process .766

Ability to Track Orders .604

Website Interface .844


Websites Options .692

Detailed Information of Product .705


Source: primary data

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T- test
Table 5.25.: Gender of respondents
Gender Frequency
Male 63
Female 57

Total 120

Ho: There is no significant relationship between gender and consumer buying behavior
H1: There is a significant relationship between gender and consumer buying behavior.
Table 5.26: Independent sample T-test.

t-test for Equality of Means


T Df Sig. (2-tailed)

Consumer Buying Equal variances assumed 1.133 103 .260


Behavior Equal variances not assumed 1.133 102.044 .260

Since the significant value of independent sample t-test is more than 0.05, the calculated level of
significance is 0.260.That indicates it accepts the null hypothesis that there is no significant
relationship between gender and consumer buying behavior.

By using independent sample t-test it is seen that, the significance value is more than
0.05, so the null hypothesis is accepted, which means there no significant relationship between
gender and consumer buying behavior.
.

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ANOVA
Table 5.27:occupation of the respondents
occupation Frequency
Full time employment 37
Part time employment 14
Student 59
Unemployed 10
Total 120

Ho: There is no significant relationship between occupation and consumer buying behavior
H1:There is a significant relationship between occupation and consumer buying behavior
Table 5.28: One Way ANOVA
Sum of Squares Df Mean Square F Sig.
Between Groups 48.933 45 1.087 1.634 .038
Within Groups 39.257 59 .665
Total 88.190 104

. The significant value of one way anova is less than 0.05. The calculated level of
significance is 0.038 which is less than 0.05. That indicates it rejects the null hypothesis that there
is no significant relationship between occupation and consumer behavior

By using one way anova test it is seen that, the significance value is less than 0.05, so the null
hypothesis is rejected, which means there a significant relationship between occupation and
consumer is buying behavior.

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Table 5.29: Age of the respondents
Age Frequency

Less than 20 12
21-30 83
31-40 9
Above 40 16
Total 120

Ho: There is no significant relationship between age and consumer buying behavior
H1: There is a significant relationship between age and consumer buying behavior.

Table 5.30: One way anova


Sum of Squares df Mean Square F Sig.

Between Groups .864 3 .288 1.924 .130


Within Groups 15.127 101 .150
Total 15.991 104

The significant value of one way anova is greater than 0.05. The calculated level of significance is
0.130 which is greater than 0.05. That indicates it accept the null hypothesis that there is no
significant relationship between age and consumer behavior.

By using one way anova test it is seen that, the significance value is greater than 0.05, so the null
hypothesis is accepted, which means there no significant relationship between age and consumer
is buying behavior.

74
Table 5.31: Education qualifications of respondents.
Education Frequency
Below plus two 25

Graduation 41

PG 36
Above PG 18
Total 120

Ho: There is no significant relationship between education and consumer buying behavior
H1: There is a significant relationship between education and consumer buying behavior.
Table 5.32: One way anova
Sum of Squares Df Mean Square F Sig.
Between Groups .840 3 .280 1.866 .140
Within Groups 15.151 101 .150
Total 15.991 104

The significant value of one way anova is greater than 0.05. The calculated level of significance is
0.140 which is greater than 0.05. That indicates it accept the null hypothesis that there is no
significant relationship between education and consumer buying behavior.

By using one way anova test it is seen that, the significance value is greater than 0.05, so
the null hypothesis is accepted, which means there no significant relationship between education
and consumer buying behavior.

75
Table 5.33: Income level of respondents
Income level Frequency
Less than 10000 71
10000-15000 27
15000-20000 11
Above 20000 11
Total 120

Ho: There is no significant relationship between income level and consumer buying behavior
H1: There is a significant relationship between income level and consumer buying behavior

Table 5.34:One way Anova


Sum of Squares Df Mean Square F Sig.

Between Groups .722 3 .241 1.592 .196


Within Groups 15.269 101 .151
Total 15.991 104

The significant value of one way anova is greater than 0.05. The calculated level of significance
is 0.196 which is greater than 0.05. That indicates it accept the null hypothesis that there is no
significant relationship between income level and consumer buying behavior

By using one way anova test it is seen that, the significance value is greater than 0.05, so
the null hypothesis is accepted, which means there no significant relationship between income
level and consumer buying behavior

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Table 5.35: Residential status of respondents.
Residence Frequency
Rural 73

Urban 34
Other 13
Total 120

Ho: There is no significant relationship between area of residence and consumer buying behavior.
H1: There is a significant relationship between area of residence and consumer buying behavior.

Table 5.36:One way anova


Sum of Squares df Mean Square F Sig.

Between Groups .628 2 .314 2.085 .130

Within Groups 15.363 102 .151


Total 15.991 104

The significant value of one way anova is greater than 0.05. The calculated level of significance is
0.130 which is greater than 0.05. That indicates it accept the null hypothesis that there is no
significant relationship between area of residence and consumer buying behavior.

By using one way anova test it is seen that, the significance value is greater than 0.05, so
the null hypothesis is accepted, which means there no significant relationship between area of
residence and consumer buying behavior.
.

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Ho: There is no significant relationship between overall website quality and consumer buying
behavior

H1: There is a significant relationship between overall website quality and consumer buying
behavior

Table 5.37: One way anova

Sum of Squares df Mean Square F Sig.

Between Groups 6.246 4 1.561 16.022 .000


Within Groups 9.745 100 .097
Total 15.991 104

The significant value of one way anova is less than 0.05. The calculated level of significance is
0.000 which is less than 0.05. That indicates it reject the null hypothesis that there is no significant
relationship between area of residence and consumer buying behavior.
By using one way anova test it is seen that, the significance value is less than 0.05, so the null
hypothesis is rejected, which means there a significant relationship between overall website quality
and consumer buying behavior.

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H0: There is no significant relationship between overall website security and consumer buying
behavior.
H1: There is a significant relationship between overall website security and consumer buying
behavior

Table 5.38: One way Anova

Sum of Squares df Mean Square F Sig.

Between Groups 7.353 6 1.226 13.904 .000


Within Groups 8.638 98 .088
Total 15.991 104

The significant value of one way anova is less than 0.05. The calculated level of
significance is 0.000 which is less than 0.05. That indicates it reject the null hypothesis that there
is no significant relationship between overall website security and consumer buying behavior
By using one way anova test it is seen that, the significance value is less than 0.05, so the
null hypothesis is rejected, which means there a significant relationship between overall website
security and consumer is buying behavior.

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H0: There is no significant relationship between overall website competency and consumer buying
Behavior

H1: There is a significant relationship between overall website competency and consumer buying
behavior

Table 5.39: One way anova

Sum of Squares df Mean Square F Sig.

Between Groups 9.759 7 1.394 21.698 .000


Within Groups 6.232 97 .064
Total 15.991 104

The significant value of one way anova is less than 0.05. The calculated level of significance is
0.000 which is less than 0.05. That indicates it reject the null hypothesis that there is no significant
relationship between overall website competency and consumer buying behavior

By using one way anova test it is seen that, the significance value is less than 0.05, so the null
hypothesis is rejected, which means there significant relationship between overall website
competency and consumer buying behavior.

80
CONSUMER BUYING BEHAVIOR

Table 5.40 : Aggregate Mean Score table

Variables Mean Std. Deviation

Competency 3.910 .579

Attractiveness 3.882 .5182

Security Features 3.9630 .66874

Convenience 3.9537 .55900

Website Quality 4.0556 .53535


3.9521
Aggregate Mean Score

Five variables were set for calculation of Consumer buying behavior. This table shows the mean
and std.deviation of each variable.

From the table it is seen that the third variable, the last variable website quality shows the highest
mean and the second variable shows the lowest mean,Std.deviation.It shows that there no much
deviations in the opinions of the respondents. The aggregate mean score 3.9521 which is almost
reached the agreeing level.

From the above table it’s seen that most of the respondents agree
that the above variables are influencing them while online purchase of goods and services. Despite
the possibility of security issues and some defaults in delivery and transaction process, the majority
of the respondents said that in future too, they will continue their shopping through web stores and
they love to compare the various features of the selected product with the competitor product.
SUMMARY

This chapter presented the analysis & interpretation. The next chapter will give the findings,
conclusions and suggestions.

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Chapter 6

Findings, conclusion and suggestions

The introduction and implementation of internet technologies has created new market for
manufacturers and service providers and also has provided new arena for innovative marketing
strategies by the professionals. There are various reasons of shifting the customers buying patterns
towards online retail shops. The facility of comparing products with competitive products on the
basis of price, colour, size and quality is one of the biggest benefits of online shopping. Moreover
the product remains at its place even you purchase it.
From the past few years, on-line shopping is the prevalent way of doing dealings in the field of E-
Business and is unquestionably going to be the future of shopping in the human race. The
increasing consumer base, principally of youths, is playing a significant role in the online
shopping. Even though there is an increase in the consumer demand, there are some security issues
reported regarding the online shopping and its delivery systems. These may resist the new entries
into the online shopping. So there is a scope of studying the influence of online shopping in
consumer behavior
And the Objectives of the study is as follows
 To examine the factors influencing online shopping on buying behavior of consumers.
 To study the popularity and acceptance of online shopping among the consumers
 To examine the problems associated with the online shopping and to understand the scope
of improvement in this field.

On the basis of review of literature the following hypotheses has been set:-

H0:1-There exist a significant relationship between Demographic factors (Age, Gender,


Occupation, Income, Educational, Qualifications, and Place of residence.etc) and consumer buying
behavior
H0:2-There is a significant relationship between overall website quality and consumer buying
behavior.
H0:3-There is a significant relationship between web site competency and consumer buying
behavior.

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H0:4-There is a significant relationship between website security and consumer buying behavior.

This chapter gives a summary of the study and its findings and suggestions. It is divided into four
sections: chapterization Summary, Findings and Suggestions.

Chapterization

Chapter 1- Introduction: A brief description about the study including Statement of the problem,
Objectives of the study, Research methodology, conceptual frame work, Chapterization etc.

Chapter 2-Litrature review: Brief of different literature works related to the study

Chapter: 3-Theoretical frame work: Theories which are related to the study

Chapter 4- Industry and Company profile: Details of company and industry

Chapter 5- Analysis and Interpretations: Includes tables and charts and its interpretations.

Chapter 6-Findings, Suggestions and Conclusion: Includes findings, suggestions and


conclusions of the total study.

Findings

 The e-commerce market has a great potential for youth segment. If the demographic features
are considered carefully then it can be easily identified that maximum number of respondents
of online shopping are lying in age group of 18- 25 years.
 Only a few are not aware or not interested about online shopping, and the popularity of online
shopping is increasing by year’s coz; most of the respondents started the trend of online
shopping by last 2-3 years, and there is an increasing demand.
 People often use internet for product information which opens a great opportunity for opine
stores.

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 Most of the people buy electronic gadgets then apparels and services etc. Youth population is
mostly attracted towards online buying.
 Most of the respondents believe that online shopping help them to save both time and money,
People like to call online shopping a relaxed shopping.
 The most preferred mode of payment is found to be Cash on delivery; may be because of the
security and credibility reasons, Company profile and brand identity plays a crucial role in
online purchases.
 Most of the people are aware of the risk involved in online buying so they do check the reality
moreover as the products are purchased without physical touch or contacts, the customers are
in need of an efficient customer care service.
 People expect detailed product information from online stores so as to assure the required
quality in addition to that People always require large number of options in online sites.
 Most of the people prefer less or no cost of delivery and prefer maximum speed of delivery,
along with that privacy is a main concern for every customer.
 Consumers need the sites to be simple to use, and also concerned about the speed of websites,
and are very much concerned about their goods till they receive it.
 The website interface can influence the attention of consumers, and most of the consumers are
are very much attracted by the offers that are provided.
 There is no relation with Age, Gender, and Income as far as online purchase is concerned but
Occupation can influence consumer buying behavior.
 Rural, urban or semi-rural/urban consumers are same in their taste with regards to online
purchase.
 Consumers have concerns on web site quality and its competency.
 Most of the respondents want to continue their shopping through online sites.

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Conclusion

The current study is descriptive in nature and it has made an attempt to understand the influence
of online shopping in consumer behavior. Although statistical significance of various parameters
has not been examined but the generalized results obtained through data analysis has given clear
indication of increasing significance of online stores in people. The e-stores are frequently visited
by the shoppers. The ease and convenience provided by these stores for 24x7 has made very easy
shopping for consumers worldwide. The analysis discussed in the above section has documented
that the customers are also getting addicted to the online shopping and they do like various features
of online shopping as by rest of the world. But the statistics available has shown that market
requires further improvement, and is still not a fully developed market for e-tail stores. There is
huge scope of web-stores in various areas and in almost all the segments. The young population is
the biggest attraction of this industry and they may contribute substantially to the growth of online
shopping in India. The majority of internet users are youngsters, the majority of goods and services
demanded are related to only this segment. Travel planning is one of the biggest services used by
online shoppers. The present study has several implications for business strategists.

Suggestions
 There is wide mismatch in this segment compared with the global market therefore the e-
commerce companies in line with manufacturers and service providers should target this
segment for rapid future growth of their business.
 The buying behavior of youth can be elaborated through findings obtained through survey. By
focusing on various factors identified in this study, the corporate can make their marketing
strategies in better way. It will help to convert their potential customers into active customers.
 Creating a detailed profile of each customer would be a better strategy to concentrate
particularly to an individual customer or a group of customers so as to provide them
information, offers and related services to improve the quality of service and thereby
increasing sales.eg; Providing offers to students for school stationeries, books, bags, cloths
etc. in the beginning of an academic year.

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 By improving the after sales services, providing more secured payment options, timely
delivery of the goods with better packaging can further boost the demand of various products
and services through web stores.
 The market segments like toys, flowers and house wares must be targeted by the marketers on
through e-tail penetration. And the market for other products and services must be expanded
through more awareness among the customers.
 Simplicity and tracking ability helps to attract more and more new consumers to online
shopping.
 As many people has shown fear of unsecured transactions in online payment therefore the e-
stores specifically mention about the security of transactions of their e-stores which will
increase the faith of customers for online shopping.
 Further the strategist can also focus on the internet penetration plan of the government to
understand the future scope of size of online shopping in India.

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ANNEXURE
QUESTONNAIRE

I am Digin George, an MBA student of Department of Commerce and Management, University of


Calicut and this questionnaire is to collect data for a study on the “Influence of online shopping
on consumer behavior “The data shared will be kept confidential and will be used only for
academic purpose.
Digin George
IV MBA, DCMS, Calicut University.

Age : Less Than 20 20-30 31-40 Above 40

Gender : Male Female

Occupation : Full time Part time Student

Income : Less than 10000 10000-15000 15000-20000 Above 20000

Education : Below Plus Two Graduation PG Above PG

Residence : Rural Urban Others

1. How frequently you are Using Online shopping?

Very often often occasionally Never

2. How long you have been using online shopping?

<1Year 1-2Years 3-4Years More than 5 Years

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3. Do you Search internet for Product Information?

Very often often never

4. What type of Products are Preferred in Online Shopping?

Electronics Cloths Footwear Service others

5. What is your opinion about online shopping saving time save time?

Very High High Neutral Low Very Low

6. What is your opinion about online shopping saving money?

Very High High Neutral Low Very Low

7. Does Online Shopping give more relaxation?

Strongly Agree Agree Neutral Disagree Strongly Disagree

8. What Mode of payment you are preferred during online shopping?

Cash on Delivery Fund Transfer Card Payment others

9. Is security of transactions has an issue in online shopping?

Yes No

10. I consider Company profile and brand identity in market during online shopping?

Strongly Agree Agree Neutral Disagree Strongly Disagree

11. I consider Security certification of an online shopping website?

Strongly Agree Agree Neutral Disagree Strongly Disagree

12. Do you consider customer services provided by online shopping websites?

Strongly Agree Agree Neutral Disagree Strongly Disagree

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13. Do you think that detailed information of product affects the selection of online

shopping website?

Strongly Agree Agree Neutral Disagree Strongly Disagree

14. Do you think that a website giving large number of varieties with different options are

preferred more than a website giving lesser number of options?

Strongly Agree Agree Neutral Disagree Strongly Disagree

15. Does cost of delivery affect the decision of online shopping?

Strongly Agree Agree Neutral Disagree Strongly Disagree

16. Does speed of delivery affects the online shopping decision?

Strongly Agree Agree Neutral Disagree Strongly Disagree

17. Does the simplicity of buying process affect the online shopping decision?

Strongly Agree Agree Neutral Disagree Strongly Disagree

18. Do you think that privacy of customer’s information affects the online shopping decision?

Strongly Agree Agree Neutral Disagree Strongly Disagree

19. Do you think that the ability to track shopping history affect the online shopping decision?

Strongly Agree Agree Neutral Disagree Strongly Disagree

20. Do you think that the speed of website selected for shopping boost the online shopping

behavior?

Strongly Agree Agree Neutral Disagree Strongly Disagree

21. Do you think that the website interface for online shopping influences shoppers’ decision?

Strongly Agree Agree Neutral Disagree Strongly Disagree

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22. Do you think that personalized offers by website will stimulate you for online shopping?

Strongly Agree Agree Neutral Disagree Strongly Disagree

23. Have you ever face any problems in the delivery of products?

Yes No

24. Will you recommend online shopping to your friends?

Yes No

25. If yes, why? If no, why?

………………………………………………………………………………………………………
………………………………………………………………………………………………………..

Comments
………………………………………………………………...............................................................
...............................................................................................................................................................
...............................................................................................................

(Name the sites which are frequently used)

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Bibliography

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Computing Machinery. Communications of the ACM, 42(12), pp. 32-38, 1999.
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[14] E-commerce: It’s Impact on consumer Behavior ,Arjun Mittal pp. 112-115 (2013)
[15] Consumer online shopping attitudes and behavior:;an assessment of research, Na Li and Ping
Zhang , pp. 190-192 (2007)
[16]Understanding Online Shopping Behavior of Indian Shoppers, Dr. Renuka Sharma, Dr. Kiran
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