CHAPTER 1

INTRODUCTION

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INTRODUCTION
Internet and Information technology have made tremendous contributions for business transformation witnessed nowadays all over the world. This has given birth to E commerce which encompasses several pre purchase and post purchase activities leading to exchange of products or service or information over electronic systems such as the internet and the other Telecommunication networks. Analyzing the competitive advantage of E-Commerce it is observed that E-Commerce enables simpler, faster and efficient business transactions. For developing country like India, E-Commerce offer considerable opportunity for growth. E-commerce leads to a boon for the current economic downturn. As Indias e-commerce market is worth about Rs 50,000 crores in 2012. About 80% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).

Company profile Business Type Year of Estd. Market Cover Company Turnover: No. of Employee : : : : Manufacturers 1999 Delhi -ncr Rs. 0.5 to 2.5 Crore Approx. 20 50

We are a leading 925 stamped Sterling Silverware manufacturer in India. We have a state of the art manufacturing facility and a huge team of skilled craftsmen capable to produce over 25000 Pounds of silverwares in a year. For over a decade, we are producing household silverware such as cutlery, flatware, dishware, and giftables with unmatched craftsmanship. It's our perennial endeavour to provide high quality products at competitive prices within the
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agreed timelines to all our customers irrespective of order size. Our farsightedness and proactive approach combined with intensive market research and analysis enables us to create irresistible array of contemporary and traditional masterpieces. Creativity is highly respected at Muskan, which is why, our product designers are always on the watch for intricate and challenging custom orders. We are preferred silverware manufacturer for MMTC Ltd, a Govt of India undertaking; it gives us immense sense of pride to be able to give a hand to MMTC to establish/maintain "Sanchi" (silverware brand of MMTC). We also carry out manufacturing for Central Cottage Industries Corporation of India Ltd, New Delhi along with a bunch of other renowned names in the industry. After serving India for over a decade, we have decided to take ourselves to the international market. This compels us to expand our team and find business partners in the rest of the world to be able to export and import sterling silver articles. We are interested in establishing bilateral trade relationship with prominent organizations in the world to exchange products and services that can give both of us business opportunities and edge over competition.

Deals In Import Of : Silver articles, silver bowl, silver jug & plate, silver napkin ring, silver photo frames, silver statues, silver utensils, silver swings, silver doors, silver tray, silver spoon, silver flower wash, silver glass, silver tea-set. Specialties Manufacturing Custom Designs, Manufacturing Ancient & Contemporary Artworks, Model for Production, Low Cost, High Quality Manufacturing Solutions, Guaranteed/Certified Silver Purity, Utmost Delivery Commitment, Customer Satisfaction Reverence

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CHAPTER 2

LITERATURE REVIEW

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LITERATURE REVIEW Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey communicates and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities the will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.

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Models of E-commerce
Business-to-Business (B2B): B2B e-commerce is simply defined as e-commerce between companies. This is the type of e- commerce that deals with relationships between and among businesses. About 80% of e- commerce is of this type, and most experts predict that B2B ecommerce will continue to Grow faster than the B2C segment. E.g.: indiamart.com, eindiabusiness.com, tradeindia.com etc. Business-to-consumer (B2C): Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (or e-tailing). Thus, the more common B2C business models are the online retailing companies such as flipkart.com Amazon.com, snapdeal.com etc. Business-to-Government (B2G): Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other governmentrelated operations. This kind of e-commerce has two features: first, the public Sector assumes a pilot/leading role in establishing e-commerce; and second, it
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is assumed that the public sector has the greatest need for making its procurement system more effective. Web-based purchasing policies increase the transparency of the procurement process (and reduce the risk of irregularities). To date, however, the size of the B2G ecommerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-Consumer (C2C): Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Online auction site eBay, Yahoo! Auctions are a couple of examples of C2C websites. Mobile Commerce in India Mobile is growing in India with more than 800 million subscribers across the country. The advancement in terms of adoption of smart phones with 3G enabled services is happening at a rapid pace. This of course has opened up the gates to mobile advertising, mobile application development and mobile commerce in India. According to BuzzCity's latest Report, India is top performing mobile advertising region in the whole of Asia. The growth in mobile advertising globally is tremendous with ads served on a year-on-year growth of39%. With respect to some number crunching, more than 126 billion ads were served in 2011, compared with 52 billion in 2010.
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In India, Mobile Commerce is still in the development phase as the use of mobile phones for carrying out transactions is very limited. However, the development is Taking place at a nice speed and in the coming years, Mobile Commerce is most likely to make its presence feel as companies and businesses have started understanding the benefits of Mobile Commerce. Some of the companies have even incorporated this technology. Airtel, ICICI, Reliance are some of the companies/businesses that are using this technology as their users are allowed to make limited purchases from their phones. For now, the users are mainly allowed to pay phone bills, utility bills, book movie tickets, book travel tickets with their cell phones. However, more services will be introduced in coming years. Security is one of the main concerns of Mobile Commerce as its very important to offer secure transactions and this is the reason why Mobile Commerce is still in the development phase in India. For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account with a cell phone in order to pay the utility bills. With the current rate of development, users will be soon allowed to purchase products, advertise, to take part in auctions and pay bills with the help of a cell phone, while they are on the move.

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Online Shopping In India

The Indian economy is slated to grow by upward of 6 % annually in the next few years which is among the highest rates of any big emerging economy. And quite a lot of this growth would be on the back of domestic consumption of goods and services. E-commerce is emerging as a great level given that organized retail is still not ubiquitous across the length and breadth of the country with large retail chains making up less than 10% of the market.

E-commerce is helping people in smaller towns in India access quality products and services similar to what people in the larger cities have access to. Its being forecast that close to 60% of online shoppers would come from beyond the top eight large cities by end of this year.

Increasing internet penetration has helped to expand the potential customer pool. Internet penetration is only about 10% (or about 121 million users) as against about 81% in the US and 36% in China. However this number continues to rise at a consistent pace because of falling prices for broadband connections.

Indians are also increasingly taking to mobile devices for not only search but shopping as well. The number of smart phone users is rapidly increasing in India and with 4G services about to take off its expected to get even more people going online. There are currently about 900 million mobile subscribers and this number is expected to touch 1.2 billion by 2015. Of these about 27 million are estimated to be active mobile internet users. More importantly, 20% users indicated intent to buy products through their
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mobile phones as against the current 4% and this number is expected to only increase in the next two to three years. Innovation is helping e-commerce companies break the inertia for online shopping by offering benefits to customers not traditionally available in a brick and mortar store. Business models include no question asked return policies ranging from 7 days to 30 days.

Free product deliveries and the industry dynamics changing cash on delivery model. The last innovation has really help unlock the potential as people can now order products and pay when they get physical delivery of the product. This has been a tremendous success because Indians are still reluctant to give their credit/debit card details online and want to have the psychological comfort that they would actually get the product once payment has been made. These innovations have led to further innovations downstream as ancillary businesses are developing to support these initiatives. Some companies have begun to develop support mechanisms for the entire cash on delivery model and are trying to reach the far flung corners of India, including in the interiors where traditional logistics companies are still not completely present. The logistics companies are also shoring up their act and have started to build specific verticals and expertise to address the requirements of e-commerce companies. Divyan Gupta is the Founder and CEO of Keshiha Services Pvt. Ltd, a company with interests in the internet, telecom, healthcare, education and advanced technology businesses has stated that, acceptance of online shopping as a secure shopping mode is has also helped to increase e-commerce uptake. Currently only about 10 million people do online transactions out of an approximate population of 200 million credit and debit card holders. However the latest industry report by First Data Corporation and ICICI Merchant Services indicate that there are about 150 million users that are readyfor eDayananda Sagar Business School Page 10

commerce. More importantly the report indicates that urban Indian consumers are now confident enough to make online purchases of up to US$500 as against US$40-100 in the recent past. So not only are the numbers of online shoppers projected to increase but there has been a real increase in the total value being spent online.

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CHAPTER 3 SCOPE OF THE STUDY

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SCOPE OF THE STUDY To determine which factor influences the consumer to go for online shopping. To find out which feature of the website attracts the user to purchase the product from the online shopping website. To find out the weather silver online shopping is beneficial for the user. To analyze which factors influence the user to buy online silver product.

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CHAPTER 4 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY The research mainly focus upon the definition of the problem ,objective of the study, significance of the study, research methodology, limitations of the study, and plan of the study. The research methodology includes questionnaire, collection of data, data interpretation (analyze) and suggestion if any.

Objectives To study attitude of customers towards online shopping. To find out the preferences of the consumer regarding the attributes of online shopping website. To identify the issues faced by the user while online shopping. To determine the parameters for choosing the particular shopping centre for purchase of silver items. To determine whether online silver shopping will be beneficial and on what factors.

DATA COLLECTION Data can be classified under two categories depending upon sources utilized. These categories are, 1) Primary data 2) Secondary data

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DATA COLLECTION TOOLS PRIMARY DATA COLLECTION Collected information from the customer of silver mushkan pvt. Ltd. Individually. Questionnaire. Keeping in view the objective of study a questionnaire was selected there is 12 in all. All questions are small in size and arranged logically. The language is so simple to understand and questionnaire is distributed among customers to satisfy the objective. Interviewing with the workers and ask the related questions to fulfil the objective and scope of my study.

SECONDARY DATA COLLECTION: o The secondary information is taken from company documents on website. o www.muskansilver.co.in (internal website )

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CHAPTER 5 DATA ANALYSIS & INTERPRETATION

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1. RATIO OF MALE AND FEMALE.

MALE 30 FEMALE 20 TOTAL 50

GENDER

40% 60%

MALE FEMALE

ANALYSIS AND INTERPRETATION: From the above graph I found that out of total 50 respondent 60% respondent are male and rest of 20%respondent are female so the product which id sold in mspl maximum customers are male.

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2. CUSTOMER AGE GROUP. AGE 18-25 23 25-30 19 MORE THAN 30 8

AGE
8

23

18-25 25-30 MORE THAN 30 YEAR

19

ANALYSIS AND INTERPRETATION: From the above graph I found that 48%customer age is in-between 18-25 year,38%customer are in between 25-30year and rest of 14%are more than

30years.so maximum customer who is using online shopping whose age is in between 18-25 year because they want change and also want to adopt the new-new technology.

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3. CUSTOMER OCCUPATION.

OCCUPATION SERVICE 30 BUSINESS 20 TOTAL 50

OCCUPATION

20 SERVICE BUSINESS 30

ANALYSIS AND INTERPRETATION: From the above graph I found that the 60%customer is service holder and rest of 40%customer is business holder. So service holder customer knows very well how to use internet and they do shopping with mspl product.

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4. ANNUAL INCOME LEVEL

ANNUAL INCOME LEVEL

1-5 LAKH 30

5-10LAKH 15

10&ABOVE 5

Annual Income Level

5

1-5LAKH 15 30 5-10LAKH 10&ABOVE

ANALYSIS AND INTERPRETATION: From the above graph I found that the customer who is shopping online the product 60% annual income is 1-5 lakh,30% customer annual income is in between 5-10lakhs and rest of 10%customer annual income is above then 10 lakhs, so customer buying behavior is depend on the monthly income as well as annual income.

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5. How much money do you spent in online shopping?

100-500 12

500-1000 17

1000-5000 9

5000 & ABOVE 12

18 16 14 12 10 8 6 4 2 0 100-500 500-1000 1000-5000 5000 & above

ANALYSIS AND INTERPRETATION: From the above graph I found that the customer who is shopping the product 24%customer doing shopping of more than 5000, 18%customer are shopping more 1000, again 24%customer are shopping more than 500, and 34%customer are shopping more than 500, and rest of 24%customer are shopping more than 100rupees, so I found that the income of the customer play a major role of buying the product.

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6. When do you feel the need to shop online?

When I need home delivery

When I want Something Uniques & Special

When I need to compare prices

When I dont have the time to find things in different markets

Other

17

12

10

18 16 14 12 10 8 6 4 2 0 When I want When I need home Something Unique delivery & Special When I need to compare prices When I dont have the time to find things in different markets

other

From the above we can depict the factor which motivates the respondent to shop online is when they need home delivery. The other factor which motivates to shop online when they compare prices of different products at a same place. The above graph also determines that people shop online when they dont have the time to find things in the market for the product to be purchased. Also respondent shop online when they want some unique & special product which they cannot find in the offline market

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7. What features in online shopping website attracts you?

Frequency Design of website Discounts offered advertisement Variety Value of money 13 12 16 6 3

percentage 26% 24% 32% 12% 6%

35% 30% 25% 20% 15% 10% 5% 0% Design of website Discounts offered advertisement variety Value of money percentage

ANALYSIS & INTERPATATION From the above diagram we can determine that people prefer online shopping when discounts offered are offered to them. Also the variety of product offering to the customer also forms an important factor which motivates the respondent to shop online. The other factor that motivates the user to shop online is when the product they purchase is of value of money. Also the design of website along with the different advertisement.

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8. If given an option to buy silver products online will you buy online?

Yes 17

No 22

Maybe 11

22%

34% Yes No

44%

Maybe

ANALYSIS AND INTERPRETATION:

The remaining percentage of the respondent may or may not buy silver online due the factors like physical examination and security issues. the above graph depicts that around 34% of respondent are willing to buy silver online if the option is given

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9. Do you think buying silver products online is beneficial?

Frequency 34 16 percentage 68% 32%

Yes No

Yes

no

32%

68%

ANALYSIS AND INTERPRETATION:

The above diagram depicts that most of the respondent think that buying silver is Beneficial which can be determined from the next question.

The remaining respondent thinks that online silver shopping will be not beneficial due the factors like forgery products, highly priced products and no guarantee of the product

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10. If yes, why do you think is beneficial?

Easy to order 17

Variety Discount & 12 13

Saves time 5

Avoid long 3

18 16 14 12 10 8 6 4 2 0 Easy to order Variety Discount & Offers Saves time Avoid long queues

ANALYSIS AND INTERPRETATION:

The above graph depicts that user respondent think that online shopping will be Beneficial as it will save their time to shop for silver items.

The next relating aspect why consumer will shop silver online as it will allow the user to avoid long queues resulting in reduction in time spent in shopping.

The other factors why online silver shopping will be beneficial as it will allow the user to shop all the silver at a particular place with discounts and offers.

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11. While shopping what affects your satisfaction the most?

Very Important

Somewhat Important

Not Important

Website User Friendly

23

17

Cash on delivery

27

29

Credit/Debit Card payment

22

22

Offers & Discounts

21

19

Free Shipping

29

12

30 25 20 15 10 5 0

Very Important Somewhat Important Not Important

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ANALYSIS AND INTERPRETATION: The above diagram depicts that website user friendliness forms an important factor when it comes to online shopping, more the website user friendliness will determine more number of visits on a website which will in turn results an increase in the sale truncations for the particular shopping site. Cash on delivery forms an important aspect of the online shopping website in Indian online shopping market, the above graph depicts that it does forms and most important part on the online shopping. The other mode of payment gateway through net banking and credit/debit banking also forms an important part of the online shopping website. When it comes to tracking of items service in online shopping most of the respondent think that it is an important service which allows the user to track their items in transit. When it comes to security aspect of the website Id & password forms an important aspect of the online transaction. The other aspect order confirmation is the like the shopping cart where the user gets the list of items he/she is going to purchase which avoids unnecessary purchase of the product , also forms an important part of the online shopping website. The above graph depicts that along offers & discounts, free shipping also forms as the most important factor for the online shopping website, which forms a motivating factor for the user to shop

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12. What are your issues regarding online shopping? People may select more than one checkbox, so percentages may add up to more than 100%. No guarantee 12 Possibility of forgery 13 Product highly priced 11 Too much clutter 7 Security issue 5 Physical examination 2

14 12 10 8 6 4 2 0 Possibility of Product Too much No guarantee forgery highly priced clutter Security issue Physical examination

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ANALYSIS AND INTERPRETATION:

The other factor which demotivates the user to shop online is the security issue, which consists of issues like phishing, hacking of accounts etc.

TEST
what features in online shopping website attracts you * While shopping at what Website UserFriendly your satisfaction the most? Crosstabulation

Count

While shopping at what Website UserFriendly your satisfaction the most?

Somewhat Very Important Important Not Important Total

what features in online shopping website attracts you

Design of website

14

14

Discounts offered

13

advertisement

17

18

Variety Total

0 23

0 21

3 4

3 48

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Chi-Square Tests

Asymp. Sig. (2Value

a

df

sided)

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

70.399

6 6 1

.000 .000 .000

64.670 35.857 48

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .25.

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CHAPTER 6 FINDINGS, SUGGESTIONS & CONCLUSION

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FINDINGS From the above data collected i observe that there is an increase in the number of respondent in online shopping as there is awareness about this concept in the market. Certain parameters which motivate the user to shop online are: User friendliness of the website. Discounts and offers, offered by the website. Cash on delivery form an important gateway in online transaction Free shipping is the most important factor which motivates the user to shop online. From the above data collection we can determine most of respondent agree to buy silver product online

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SUGGESTIONS

SMPL customers are business people and have high income and low income of people, so company should give the promotion programs targeting the lower class people. Company should focus on other media of advertisement other then television. Company should focus on persuasive advertising and highlighting the unique features and benefits of their products. Parched process should be user-friendly so customer feels happy when he will buy the product online. All the information should be on the company website so it willmake enable customer to understand regarding regarding all types of quire. Company should stand on its commitment.

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CONCLUSION

From the above data analysis it can be conclude that consumer buys goods from the online shopping website on the basis of factors like offers and discounts, variety of product available, free home delivery, website user friendliness and cash of delivery payment option. From the above data analysis it can be determined that most of the respondent would agree to buy silver items online rather than shopping of silver items with the traditional method. Out of the agreed respondent to buy online product, most of the respondent would think that it would be beneficial to shop online on the basis of factors like easy to order, variety, discounts offers, saves time and avoid long query.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

www.muskansilverarts.com

WIKIPEDIA www.allbusiness.com http://economictimes.indiatimes.com/ www.business-standard.com/

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