Theoritical Background To Study

EXECUTIVE SUMMARY
Information is a valuable asset and it needs to be shared among all the others. In this era
of fierce competition, one must have access to information at the speed of light.
Information technology helps us to manage this valuable asset in a professional manner.
Today, with the help of Internet, we can access worldwide information within no time.
To access information, one should have access to the Internet. There are many options of
getting connected to the Internet. One of the ways is through the existing cable network.
This is a new concept to the market.
This study was undertaken to evaluate the market that exists in the Bangalore city. The
study included understanding consumer, penetration of internet in their homes, and there
attitude towards on line shopping. Today the awareness toward the various portals and
the safety aspects associated with online shopping.
It is recommended to target the home, training institute and Internet browsing centers.
Users should perceive this service as high benefits and low cost associated with it. Word
of mouth is the best form of promotion for any online service. print and media ads should
be effectively used to promote the service. Cable operators who are the intermediaries for
this service should be involved in the promotion of this service. The ultimate motive of
this service should be customer satisfaction.
ALLIANCE BUSINESS ACADEMY
CHAPTER 1
THEORITICAL BACKGROUND TO STUDY

Till recently man, machine, money and management were the most important factors of
production. No doubt, they are still important for success of any organization. Another
element has been added to the above and that is information. As we enter 21st century,
managing information involves professional approach to deal with global dynamic
interactive environment. Information is considered as nervous system of any
organization. Therefore, one needs to have updated information all the time. This
information may be about the competitors, happenings in the market place and the lie.
One should have constant access to such information.
In order to access such information, there should be some network, which would provide
the information that is required. Internet provides this in todays age. The most important
aspect of information is that it should be available when it is needed. Internet service
providers provide this access. Continuous innovations in telecommunications have
enabled information to be shared across the globe.
With the demand growing for Internet access market, there seems to be a dearth of
efficient service providers. This has resulted in significant increase in the entrants in this
industry. These are various ways to access this information. It depends upon how the
service provider opts for providing this information.
This study would help the organization to skim the potential segments and establish itself
in the industry.
1.1 History of Internet:

Information has become an important resource of an organization. Gone are those days
when land, labor, capital and management were considered as factors of production.
Today information plays a vital role in deciding the fate of any organization.
Due to rapid advancement in communication technology the access to information from

any part of the world has become easy. This is all possible because of Internet. Internet is
nothing but a network of networks. In other words an Internet is formed by
interconnection of computer networks and individual computers all over the world via
telephone lines, satellites and telecommunication systems.
Far from being a single technological phenomenon, the Internet was born of several
technologies that gestated over a long period. The Internet started a ARPANET in 1969.
The seeds of Internet were sown with the linking of four university super computers. The
ARPARENT project names for and sponsored by the defenses departments Advanced
Research Project Agency, was an exercise in sharing information among scientists. The
project grew out of a DOD commissioned Rand institute study proposing a command
and control network that should be secure enough to withstand nuclear attack. Rand
proposed a system in which information would be digitized and dispersed through a
network of routers, each capable of rerouting traffic if a part of the network was
damaged. This packet switching system, revved up and improved by progressions of
technological advances, is essentially the underlying technology of todays Internet and
its all possible permutation and combinations.
Internet grew steadily throughout 70s. As more and more users thought of this they
would like to do using the network, new languages and technical enhancements emerged.
UNIX was developed in 1972 and new branches of the Internet formed with names like
Csnet and Bitnet. With each advance such as the organization of messages by subject
area and the ability to transfer files more users were attracted to the net. The Internet
became an inexpensive and attractive way for computer users to search out others with
information, views and ideas to share.
By 1984, various branches of the networks had merged. There were 500 host computers
on the net, and some people began calling it Internet.
In 1987, the National Science Foundation accepted the task of managing the backbone of
the net, and the network became know far and wide as Internet. Within years, as the
technologies evolved and as the personal computers spread to more offices and homes,
the net became accessible, not just to people who worked at computers all day, but to
anyone with a computer, a modem and a desire to get on board.
The major milestones were the introduction of the World Wide Web in 1989 in which
vast amount of information could be linked, and then the development of tools to access
the web. With the advent of hypertext markup language, it became possible to switch
relatively rapidly among all files and directories of the Internet. In 1993, the University of
Illinois wrote and released the first web browser a program that allowed users to make
links more quickly and easily.
The web was growing 340 percent annually. The number of host computers on the
Internet rose from 80000 in 1989 to 1.3 million in 1993 and 2.2 million in 1994. With
more new technologies in place, the first cyber radio station went online; the first movie
was broadcast over the net. In 1996, 36 years after ARPANET was switched on the NSF
backbone became commercially supported, and the business took off.
Where will all this lead? Will the computer replace TV and the telephone? This is a
difficult question to answer. We will have to wait and see. Only time will let us know!
1.2 Internet accessing technologies

1.2.1 What does Internet access technologies mean?
Internet access technologies has different meanings to different people. The three major
entities of an Internet access model are:
End users who offer internet service and other service, such as telephony or cable
TV
Data service providers who supply Internet access content service or other data
services, such as virtual private networking.
Telephony, wireless and cable service providers who provide connectivity
between end users and data service providers.
To the telephony, wireless or cable service providers, access is the network connection
from the end users home or business to the outside plant termination point within point
within the service node. The remainder of the telephony providers network would be
referred as switching or transport network.
In contrast, an Internet service provider views access as the connection from its customer
to its network. Here, the access is the connection from the end users hoe to the gateway
access node belonging to the ISP. Thus to the ISP the telephonys access, switching and
transport network are all part of the access.
1.3 Access Alternatives:

Internet access technologies fit in to four broad categories:
Twisted pair
Fiber / coax
Wireless
All fiber
Twisted pair telephone lines are the access media used by the vast majority of individual
residential subscribers today.
Fiber / coax systems were originally introduces for video broadcast applications. Because
these systems are inherently broadband, techniques have been developed to use this
advantage to provide high-speed data transmission, principally for residential Internet
access. Wireless Internet access has two origins: -
Satellite systems established for broadcast video, which have the ability to distribute the
data at high speeds and cellular / personal communication service (PCS) which are
designed to serve mobile users.
The predominant access systems for business users are optical fiber synchronous network
(SONET) and Synchronous Digital Hierarchy (SDH) systems. In future, passive optical
Network systems are expected became an all fiber access medium for residential users.
Technology options for accessing the net.
1.4 Dial up access using the telephone network.

A dial up connection can be defined as connection between two machines, which is
established over telephone lines using a modem service. Accessing the net using the
telephone network for dial up has been the primary level of access worldwide. Users have
preferred this means of access mainly due to economy, ease of installation and use.
Dial up access of Internet can be achieved at speeds of 9.6 Kbps to 56 Kbps depending on
the speed of the computer system at the user end, the quality of the telephone line and the
Internet access nodes.
The speed of Internet using has been a major constrain using a dial up line and this has
lead to the evolution of other Internet access technology like:
Leased lines
ISDN
DSL
The equipment which the user requires to access the Internet through dial up are
Computer systems, Telephone line, A 33 Kbps or 56 Kbps modem and an Internet
connection with a internet service provider (ISP). The user logs on to the ISPs post
computer using the dial up facility and its authenticated by the host server. Once the
authentication is complete, the user can avail Internet service like mail, WWW, FTP, etc.
1.4.1 Leased Line

Leased lines are dedicated circuits provided by the basic service provider (BSP), which
provide permanent connectivity to the Internet. Leased lines provide the last mile access
from the user premises to the ISP. They provide a permanent connection as compared to
temporary connection through dial up access. The quality of connection is far superior
to what is normally available through dial up because of the digital signaling, less
Noise, fewer exchanges.
Leased line enable hosting of service of all types and provides a platform for enterprise
intranets and extranets, apart from entry-level services such as messaging.
1.4.2 ISDN
ISDN stands for Integrated Services Digital Network ISDN is an all digital telephone
service that provides reliable voice data communication using the same wiring as an
existing telephone network.
ISDN offers low cost solutions for small office and those offices out of home. An
alternative to modems, ISDN offers greater speed for todays telecommuter. Because
ISDN is digital, it is not limited to frequencies the ear can hear. ISDN not only gives you
the full access to the full bandwidth of the telephone call. It also allows us two such
channels.
One of the most popular uses of ISDN service is to provide fast access to the Internet.
Another most popular use of ISDN is remote LAN access.
1.4.3 Digital Subscriber line:

DSL is proven technology that provides secure, reliable, high speed Internet access to
homes and offices using high bandwidth over ordinary copper telephone lines. XDSL
refers to variation of DSL such as ADSL, HDSL, and RADSL.
In DSL technology, the digital data does not require change into analog form and back. It
can be transmitted to your computer directly as digital data and this allows for the use of
much wider bandwidth.
The several variants of DSL technology use the ordinary pre existing copper telephone
lines to deliver high speed data service to users. DSL can operate over the same pair of
wires as an existing phone connection.
1.4.4 Cable:
Cable modems deliver multi megabit speeds by using a local cable TV network..
Cable modem is an external device that connects to computer to provide high speed data
access via cable TV networks. Instead of getting Internet connection through analog dial
up line, the access is through cable TV network. The cable modem has two connectors:
One for the cable TV wire and another for the computer.
Cable modems are capable of delivering speeds from 500 Kpbs to 1.5 Mbps or more,
depending upon the network architecture and load of the data traffic on the network.
1.5 Wireless Internet Access:

Wire less technologies offer an alternative to leased line in a very cost - effective
manner. Wireless offers const containment by completely eliminating the dependence on
the Telephone Company and their wires.
Using this technology, data is transmitted with wide spread spectrum technique that make
signal interception extremely difficult, and to increase security, all data is encrypted.
Wireless is perfect for short distance hops, between buildings for example. The cost
savings over the leased lines are substantial, enough to pay for the equipment quickly.
1.6 Cable Modem Technology:

Current Internet access is through 33.6 or 56 Kbps modem. This is referred as Voice
band modem technology. Like voicing band modems, cabling modems modulate and
demodulate data signals. However, cable modems incorporate more functions suitable for
todays high-speed Internet services.
In cable network, data from the network is referred to as down stream, where as data
from the user to the network is referred to as upstream. From a user perspective, a cable
modem is a QAM receiver capable of delivering up to 30 Mbps to 40 Mbps of data in 6
MHz cable channel. This is approximately 500 times faster than 56 Kbps modem. Data
from the user is sent in a flexible and programmable system under control of the head
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end. The data is modulated with data rates from 32 Kbps up to 10 Mbps. The upstream
and down stream data rates are flexibly configured using cable modems to match the
subscribers needs. For instance, a business service can be programmed to receive as well
as transmit higher bandwidth. A residential user may be configured to receive higher
bandwidth access to the Internet while being limited to low bandwidth transmission to the
network.
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CHAPTER 2
12
DESIGN OF THE STUDY

2.1 Statement of the problem:
Due to huge growth in the Internet market, the company has planned to enter this market
as an Online shopping portal. Formalities to enter are under process. Hence the research
was initiated to find the attractiveness of the market with respect to size of potential
market and factors affecting the market potential.
2.2 Objectives of the research:

To understand the consumer for the Internet in terms of awareness, usage pattern
and source of information preferred by the consumer.
To understand the features desired by the users of internet
To understand the penetration of Online shopping portal in the city of Bangalore
To carry out SWOT analysis
To design an effective and appropriate marketing strategy for the service the
company is planning to provide.
2.3 Scope of the study:

The scope of the study is limited to Bangalore city. This study can be used by the
organization to understand the attractiveness of the market and with respect to size of
potential of the service.
The proposed marketing strategy would help the organization to penetrate, grow and
sustain in the market.
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2.4 Research Methodology:

a) Type of research:
The study consisted of a survey through a structured questionnaire. Different
questionnaires were administered in the identified segments.
Date collected through primary source through structured questionnaire
Data collected through secondary sources
Through information available on the net
Through books, journals, etc.
b) Source of data
Primary Data: Collected through a questionnaire administered on 115 respondents.
Secondary Data: Collected from a variety of sources such as websites, academic
books, and from newspaper clippings.
c) Sampling Plan:
The sampling procedure was judgmental sampling. The sampling area was restricted to
ITPL and Koramangla in Bangalore city only. A fair representation of most of the areas
of Bangalore was obtained.
Type of Sampling: Convenient judgmental sampling.

Sample Size: 115 respondents from a diversified geographic area who represent a cross
section of the socio economic groups and from differing age groups.
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Research approach: Personal

Plan of Analysis: The mathematical tools used for this research were percentage and
judgmental for open ended questions. The data collected have been processed and
analyzed using simple statistical techniques and conclusions were tabulated.
2.5 Limitation of the study:

The main limitation of the study was that it relies solely on the primary data elicited
from the respondents, which may not be absolutely true in its perspective.
The analysis was based on the responses, which were assumed to be true.
The responses may have been affected by the respondents frame of mind at the time
of interview. Hence approximate generalization is arrived at.
As the sample is small, it may not be representative of the entire population.
2.6 Operational Definition of the Concepts:
Market: A market consists of all potential consumers sharing a particular need or want
who might be willing and able to engage in exchange to satisfy the need or want.
Marketing: Marketing is the social process by which individual and groups obtain what
they need or want through creating products and values with others.
Marketing Research: The American Marketing Association defines Marketing

research as The systematic gathering, recording and analyzing of data about problems
relating to the marketing of goods and services.
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Market Potential: Market potential is the total amount of units of a product that may
reasonably be expected to be sold by all the competitors distributing it in the market.
Product: Product is anything that can be offered to a market to satisfy a want or a need.
Products that are marketed include physical goods, services, persons, places,
organizations and ideas.
Price: Price is the amount of money that customers pay for the product.
Place: Place includes various activities the company undertakes to make the product
accessible and available to the target customers.
Promotion:
Promotion includes all the activities the company undertakes to communicate and
promote its product to the target market.
Segmentation:
Market segmentation refers to identify and profiling distinct groups of buyers who may
require separate products and / or marketing mixes.
Targeting:
Targeting refers to selection of one or more segments to enter.
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Positioning:
Positioning is the act of designing the companys offering and image so that they occupy
a meaningful and distinctive position in the target customers minds.
2.7 Chapter scheme:

Chapter 1 introduces the concept of Internet, Internet accessing technologies and details
of Internet over cables.
Chapter 2 deals with research design and comprises of statement of the problem,
objective scope, methodology adopted sampling plan, sample size, research instrument,
method of data collection, limitations of the study and operational definitions.
Chapter 3 deals with the profile of the respondents.
Chapter 4 deals with the analysis of the data collected.
Chapter 5 deals with the summary of the findings, conclusions and recommendations.
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CHAPTER 3
18
INDUSTRY PROFILE
A) ONLINE SHOPPING
Online shopping is the process consumers go through to purchase products or services
over the Internet.
3.1 Shop Online Safely

The Internet is an exciting tool that puts vast information at your fingertips. With a click
of a mouse, it lets you buy an airline ticket, book a hotel, send flowers to a friend, or
purchase your favorite stock.
Good deals, convenience, and choice abound on the Internet. But before you use all the
Internet has to offer, be cyber smart to make the most of your online experience.
3.1.1 Security on the Internet

Shopping online offers lots of benefits that you wont find shopping in a store or by mail.
The Internet is always open seven days a week, 24 hours a day and bargains can be
numerous online. Shopping on the Internet is no less safe than shopping in a store or by
mail.
3.1.2 Privacy on the Internet

Technology now provides companies with the ability to collect information about you
and potentially give or sell that information to others. While the Internet can serve as a
tremendous resource for information, products, and services, you should be sure to
safeguard your privacy online
Popular websites that allow online purchasing include Amazon, eBay, and Buy.com.
Online shopping is popular mainly because of its speed and ease of use.
Amazon.com, the online bookstore turned Internet department store, ranks as among the
most successful retailer in cyberspace.
A research company., found that Amazon not only raked in the biggest amount of online
sales last year, but it also ranked second in terms of browser satisfaction, which according
to the company predicts how likely a client will be to make a return visit and generally
indicates how satisfied
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Amazon.com ranked second on the satisfaction scoreboard

In terms of sales volume, computer-maker Dell ranked second, while office-supply store
Office Depot ranked third, even though their satisfaction score only reached 77 and 75,
respectively.
Online shopping is "here to stay, no matter what sector," said Dan Freeman, an assistant
professor at the business department of the University of Delaware.
Freeman said there is no major consumer segment that does not use the Internet, even
though older consumers are likely to be more wary of giving out credit-card numbers
online for purchases.
"There's really no particular product" that would not be a good item to buy online these
days, Freeman told United Press International, adding that Web site shopping was
particularly convenient for giving gifts or making purchases when stores are closed.
"People are having much better Web experiences than they did a couple of years ago,"
Larry Freed.
He said most of the growth in the retail industry has been in Internet shopping over the
past few years, rather than in the traditional stores. Also, Freed said, companies that have
focused solely on catering to their online clients, such as Amazon.com and
shopping.yahoo.com, tended to provide better Internet shopping experiences, with
everyone in the company, from the chief executive on down, focusing on Web sales.
Even traditional retail outlets, such as Westside, Lifestyle and Shoppers stop, cannot
afford not to offer online shopping, he said.
"The (shopping) Web site gives stores larger exposure," Freed said. "Without it, they're at
a disadvantage."
He added that customers often conducted product research online, even if they did not
buy via the Internet, or they browsed in actual stores but made their final purchases on
the company's Web site.
"The Web by itself is not the answer to all things," Freed said, "but it's indispensable now
for every retailer."
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COMPANY PROFILE
B) ABOUT GENISYS
Genisys Software is a member of $65 million Genisys Group headquartered in the UK.
Established in 1995, Genisys software helps organisations leverage cost benefits
associated with IT outsourcing to strategic cost effective locations by setting up dedicated
developments, maintenance and contact centre teams.
With a state-of-the-art development delivery center at Bangalore, India, which has
capacity of over 3000 professionals, Genisys has strong technical capabilities and uses its
proven delivery methodology to service companies from a variety of industries.
The Genisys Group of companies, founded by Ashok J. Rabheru in 1985, with
headquarters in UK and offices in the USA and India. The individual skills of each of the
specialist companies combine to provide all customers of the Genisys Group with high
value cost effective services and solutions
3.2 EXPERTISE
Genisys has acquired business knowledge across a variety of industries in the
technologies it focuses on. Over the years, through commitment to quality and
deliverables, it has built a strong client base in these industries. Genisys develops
business critical client-server applications and mainframe applications. It also builds
interfaces into legacy systems and Internet-enables clients. Genisys has delivered a
variety of solutions ranging from Decision Support Systems to Enterprise Application
Integration for a host of industries
Our customers include leading firms across the globe. This page displays a partial list of
our customers.
3.2.1 Application Development

Through proven processes and methodologies, Genisys offers its clients a gamut of
software services encompassing end to end solutions
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3.2.2 Feasibility Studies

Address specific requirements of clients and undertakes business and system analysis to
determine benefits, costs and risks. Other areas of business analysis include specification
analysis and design according to structured approaches, packages evaluation and
selection , system evaluation and prototype.
3.2.3 Application Development

Ensures compliance of the deliverables with agreed norms. The application development
process at a client's site comprises:

Migration Services
System Enhancements and Maintenance Services
Testing Services
Product Development & Support
3.2.4 Contact Centre Services

Global companies are increasingly shifting focus to their core capabilities by outsourcing
their crucial Customer Relationship Management operations. Genisys' Contact Centre,
strategically located in India, provides on-line voice and web based support services.
Through its focus on customer acquisition and retention, Genisys helps its clients achieve
a competitive advantage.
Genisys combines the highest caliber of people, processes and technologies to gain
maximum efficiency. Proven processes are in place to recruit, train and motivate
customer representatives. The service platform delivers a combination of highproductivity, economical, customer interaction expertise. Quality processes conform to
COPC standards.
The service delivery system is complete with a contingency business continuity master
plan to ensure that customer service is never compromised. A dedicated IPLC (FiberOptic) and Satellite link connectivity have ample redundancies built into the system to
provide a stable communication infrastructure.
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3.2.5 Inbound Contact Centre

1st, 2nd, 3rd Level Technical Support

Customer Service,
Billing Management
Sales Order Taking
3.2.6 Outbound Contact Centre

Lead Generation
Telesales
Direct Marketing
Customer Satisfaction surveys
Cross Selling
Customer Retention
3.2.7 Web Services

E-mail support
Online Website support
Co-browsing
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CHAPTER 4
24
DATA INTERPRETATION
From the data gathered during the course of the study following things are noted. The
analysis of the data is given in the chapters to follow.
Q.1 Could you please tell us about your familiarity with Internet?
Usage
Frequency
Percentage
Never heard about it
0.00
Heard about it but never used it
16
13.91
Use it occasionally (1-10 Hrs a month)
17
14.78
Use it frequently (11-30 Hrs a month)
34
29.57
Use it very frequently (>30 Hrs a month)
48
41.74
115
100.00
Total
Table 1:showing usage pattern of Internet among
users.
Percentage
100.00
13.91
14.78
Heard about
it but never
used it
Use it
occasionally
(1-10 Hrs a
month)
29.57
41.74
Total
Use it very
frequently
(>30 Hrs a
month)
Use it
frequently
(11-30 Hrs a
month)
0.00
Never heard
about it
120.00
100.00
80.00
60.00
40.00
20.00
0.00
Percentage
Graph 1: Usage pattern of Internet among respondents
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ANALYSIS
The usage pattern of Internet among the respondents interviewed provides an insight
into the usage pattern if Internet among them. The following table gives the
information about the usage pattern of Internet anon the respondents.
Majority of the respondents browse very frequently (41.74%). This means that these
respondents surf the net for more than 30 hours per month. In other words, these
respondents, on an average surf the net more than an hour daily.
There is another set of respondents who use it occasionally for various reasons. But
surprisingly there were few who had heard about it but never used it. (as per data
collected).
INFERENCE
From the table it is very clear that almost every one is aware of Internet. The usage
pattern varies a shown in table.
An interesting thing to be noticed is that majority of respondents use the Internet quite
frequently. This goes to say that the popularity of Internet is growing in the city of
Bangalore. Every one wants to have access to information as fast as possible.
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Usage of Internet among various age groups:
Age group
Total
15-20
11
21-25
11
23
26-30
12
15
32
31-35
11
18
36-40
14
26
>40
Total
16
17
34
48
115
Table 4.1.2 showing Internet usage among various age groups
The numbers 1,2,3,4,5 indicate the following:

1
Heard about it never used it
Use it once a while (1-10 hrs in a month)
Use it frequently (11-30 hrs a month)
Use it very frequently (>30 hrs a month)
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ANALYSIS
The table gives us the information about the distribution of respondents with respect to
the usage pattern.
Any product or service is targeted to certain segment based on certain variables. Age
is one of the factors based on which one can target certain segment. The usage pattern
of any product / service is different for different age groups.
If the usage pattern of Internet is mapped with the age groups of the respondents, we
get an idea of the age group or age groups which use the Internet most. The following
table provides us an insight into usage patterns for various age groups.
We already know the usage pattern among the respondents. Considering individual
age groups, we try to analyze the given data.
In the age group 15-20 yrs., respondents use the net somewhere between 10 to 30
hours per month. The respondents in this age group mostly are students and hence
some of them are yet to try the net. Respondents coding of second option indicate this.
In the age group 21-2 yrs., the distribution, as depicted in the table, falls mostly in 4th
and 5th option. This indicates that the respondents in this age group, like the above age
group, use it frequently.
In the age group 26-30 yrs. and 31-35 yrs., majorities of the respondents use the
Internet for more than 30 hours per month. This is because the respondents in these
age groups are mostly professional sand hence use the Internet heavily.
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The age group above 40 years is also an important, because, respondents in this groups
were not all that heavy users of Internet.
Since Internet is source of information, every age group requires information for some
application or other; the usage pattern is distributed among the last three options.
INFERENCE
Therefore, considering this we can say that Internet is used by each and every one
irrespective of age group. This conclusion is restricted to people residing in
apartments.
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Q2. Do you use computers in daily operations of business?
YES
71%
NO
29%
Table 4.2.1 : Shows the usage pattern of computers
USE COMPUTERS IN DAILY OPERATIONS OF

BUSINESS
NO
29%
YES
71%
YES
NO
Graph 4.2.1 shows the usage pattern of computers
ANALYSIS
Further in the analysis it has been seen that, the number of people who have heavy
usage of computers at office usually are confident about Online shopping.
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INFERENCE
It has been studied that most of the people are use computers in the daily business. It
has been found that most of the people find it difficult to do business without
computers.
Q.3 Where do you access internet?

Place of access
Percentage
At Home
27.83
At Offices
37.39
At Cyber Centers
33.04
Others
1.74
Table 4.3.1 place of internet access
PLACE WHERE INTERNET IS ACCESSES
Others
2%
At Cyber
Centers
33%
At Home
28%
At Offices
37%
At Home
At Offices
At Cyber Centers
Others
Graph 4.3.1 showing the places where Internet is accessed
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ANALYSIS
We could conclude that usage at offices is the highest in offices with 37.40% followed
by cyber centers and homes with 33% and 27.83% respectively
INFERENCE
It was noticed that people generally accessed Internet from offices.
Cyber centers and from home were also high on usage.
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Q.4 Do you own a personal computer
Ownership
Percentage (%)
Yes
41.74
No
58.26
Table 4.4.1: showing ownership of PC
Number of people owning a P C
Yes
42%
No
58%
Yes
No
Graph 4.4.1: Ownership of PC among Internet users.
ANALYSIS
From the above table we can say that, the penetration of PC is quite high. Therefore the
potential for Internet users is high in the selected segment. Even if PC is not there, an
user still access the net using the television. Therefore, there is a huge potential for
Internet over cable.
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INFERENCE
In order to access the Internet from the house it is necessary to have a personal computer
in the house. Therefore this has a direct effect on the users number of hours he or she as
the case may be, uses the Internet. Therefore it is necessary to understand the penetration
of PC in the households.
Q 4.4.2: Internet connection in households:

Internet connection
Percentage (%)
Yes
66.66
No
33.34
Table 4.4.2:showing Internet connection in houses.

Internet in home
No
33%
Yes
67%
Yes
No
Graph 4.4.2: Showing Usage of Internet At Home.
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ANALYSIS
Among the houses, which have PCs, 66.66 % of them have Internet connection. The
rest do not have for some reason or the other.
Now, looking at the overall scenario, it can be concluded that, among the number of
respondents interviewed, 27.83 % of them have Internet connection at their house.
INFERENCE
A large number of people who own PCs have an Internet connection.
In order to access the net form house a user necessarily has to have three things:
A telephone line
A PC
Subscription of the Internet
35
Q.5 Number of family members using the Internet at homes.

YES
99
NO
16
Table:4.5.1 Showing the number of family members using the Internet at homes
INTERNET USED BY OTHER FAMILY MEMBERS
14%
86%
YES
NO
Graph 4.5 :Showing the members in the family using internet.
ANALYSIS
Internet is a very fast growing impotence in the lives at home, and each one in the family
is associated with the Internet at home.
36
INFERENCE
The study suggested that 99 houses almost all the members above the age of 14 were
using Internet directly or indirectly, but were surely associated with the Internet. While
those who had not heard of Internet or never used Internet did not apply to this question
Q. 6 Activities conducted on the net.
Activity
Percentage
Emailing
36.00
Chatting
23.27
Online Shopping
13.09
Information Portals
25.82
Others
1.82
Total
Table 4.6.1 Activities on the net
100
Percentage
Others
2%
Information
Portals
26%
Online
Shopping
13%
Emailing
Chatting
Emailing
36%
Chatting
23%
Online Shopping
Information Portals
Others
Graph 4.6.1: Showing popular activities on the internet.
37
ANALYSIS
The Study suggested that Emailing was among the most popular activities performed
on the net, followed by searching on popular information portals followed by
Chatting.
INFERENCE
There were a number of activities which people perform on the net, which include
Emailing, Chatting, Online shopping, Information Portals and Others.
The study suggested that Emails were the most popular activity conducted on the net,
followed by searching the information portals.
38
Q.7 Is Online Shopping a safe mode of shopping?
Is Online shopping safe
Percentage
YES
86.12
NO
13.88
Table 4.7.1: Showing the perception about safety in online shopping.
IS ONLINE SHOPPING SAFE
NO
14%
YES
86%
YES
NO
Graph 4.7.1: Showing the perception about safety in online shopping.
39
ANALYSIS
Online shopping was performed by just 36 respondents from a sample size of 115, out
of which 86.11 % people felt that it was a safe mode of shopping, on the other hand
remaining felt that it could have implications which were unsafe.
1 respondent had faced a problem with delivery of goods purchased; in his case he
could never get his purchased items back.
INFERENCE
It was also seen that the people who responded that online shopping was not as safe, were
not directly affected by online shopping, rather they had heard that it was not safe.
40
Q 8. Source of Information before making a choice of an Online shopping Web site:
The source of information and the response of the users have been tabulated in the
following.
Source of information
Percentage of respondents
Print ads
12.90
Leaflets
0.00
Hoarding
0.00
Friends and relatives
58.06
Past experience
25.81
Banners
0.00
Internet
3.23
TV
0.00
Table 4.8.1 Showing source of Information Preferred by users
Sources of Information
58.06
25.81
0.00
3.23
0.00
Banners
Internet
TV
Hoarding
Past
experience
0.00
Friends
and
relatives
0.00
Leaflets
12.90
Print ads
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
Percentage of respondents
Graph 4.8.1 source of information preferred by the users
41
ANALYSIS
It is seemed that the most influential source of information is information from friends
and relatives and past experience .
The next influential factor is print ads. This includes Ads given in newspaper and
various magazines. The graph depicting the source of information coded by the
respondents is given below.
INFERENCE
Before making any choice, the consumer seeks the information about the product or
service from his personal and non-personal resources. These sources have a significant
influence on the buying of the consumer. The sources influencing the purchases on
Online Shopping Web sites.
42
Q. 9 Popular Online shopping portals.
Online shopping sites
Percentage
eBay.com
17.31
Yahoo shopping
1.92
Baazee.com
51.92
Indiatimes shopping
26.92
Others
3.85
Total
100
Table 4.9 Showing the different Online Web sites
Popular Online shopping Web sites
Others
4%
Indiatimes
shopping
26%
eBay.com
17%
Yahoo shopping
2%
Baazee.com
51%
eBay.com
Yahoo shopping
Baazee.com
Indiatimes shopping
Others
Graph 4.9 Showing the different Online Web sites
43
ANALYSIS
It was studied that the Online shopping Web site Baazee.com which has been purchased
by eBay.com was the most popular Web site in the city of Bangalore with 51.92 %
people who have visited it
INFERENCE
There are a number of Online shopping portals which are rather popular in Bangalore.
They include: eBay.com
Yahoo shopping
Baazee.com
Indiatimes shopping
44
Q.10 Most preferred online purchases.
Online Purchase
Percentage
Online Travel Bookings
47.22
Movie ticket booking
13.89
Household goods and grocery items
16.67
Online Bidding.
16.67
Others
5.56
Total
100.00
Table 4.10 Showing the Popular Online Purchases
Popular Online Purchaes
others
6%
Online Bidding.
17%
Household
goods and
grocery items
17%

Online Travel
Bookings
46%
Movie ticket
booking
14%
Household goods and

grocery items
Online Bidding.
others
Graph 4.10 Showing the Popular Online Purchases
45
ANALYSIS
This Research has suggested that Online Travel Ticket booking was the most popular
Online Purchase Activity performed,
Followed by Household goods and grocery items, Online Bidding. And also booking
Movie ticket Online.
People had a feeling that the online Movie booking was a growing and reliable
activity.
INFERENCE
The Researched aimed to further study the nature of the most often performed online
purchases, which generally included


Online Bidding.
46
CHAPTER 5
47
SWOT ANALYSIS
5.1 STRENGTHS
Qualified personnel to deliver the required goods
Well known name in the industrial segment
Ability to deliver quality service to the customers
Convenient Usage
Reliable delivery model
5.2 WEAKNESS
Low trust in online purchases
No transparency among the order processing
Delays in delivery
Non accountability in the process
Channel of distribution at present weak to deliver such kind of services
48
5.3 OPPORTUNITIES
Indian Internet market base is about 1 million subscribers with over 4 million
users. This would grow to about 10 million in FY04 at about 80% per annum.
Growing dependency on the internet
Growing queues for the same product in the market.
5.4 THREATS
Too many players in the market
Big chains of malls are introducing their own similar online shopping models
Threat from fraudulent companies which results in low trust on online shopping.
Delivery process is difficult to track.
49
SUMMARY OF FINDINGS
Any product or service is targeted to certain segment based on certain variables. Age
is one of the factors based on which one can target a perticular segment. The usage
pattern of any product / service is different for different age groups.
If the usage pattern of Internet is mapped with the age groups of the respondents, we
get an idea of the age group or age groups which use the Internet most.
In the age group 15-20 yrs., respondents use the net somewhere between 10 to 30
hours per month. The respondents in this age group mostly are students and hence
some of them are yet to try the net. Respondents coding of second option indicate this.
In the age group 26-30 yrs. and 31-35 yrs., majorities of the respondents use the
Internet for more than 30 hours per month. This is because the respondents in these
age groups are mostly professional sand hence use the Internet heavily.
The age group above 40 years is also an important, because, respondents in this groups
were not all that heavy users of Internet.
It was studied that the Online shopping Web site Baazee.com which has been
purchased by eBay.com was the most popular Web site in the city of Bangalore with
51.92 % people who have visited it
This Research has suggested that Online Travel Ticket booking was the most popular
Online Purchase Activity performed,
50
Followed by Household goods and grocery items, Online Bidding. And also booking
Movie ticket Online.
People had a feeling that the online Movie booking was a growing and reliable
activity.
Since Internet is source of information, every age group requires information for some
application or other; the usage pattern is distributed among the last three options.
Qualified personnel to deliver the required goods.
Well known name in the industrial segment.
Ability to deliver quality service to the customers.
Convenient Usage.
Reliable delivery model
Indian Internet market base is about 1 million subscribers with over 4 million users.
This would grow to about 10 million in FY04 at about 80% per annum.
Growing dependency on the internet.
Growing queues for the same product in the market.
Therefore, considering this we can say that Internet is used by each and every one
irrespective of age group. This conclusion is restricted to people residing in
apartments.
51
Further in the analysis it has been seen that, the number of people who have heavy
usage of computers at office usually are confident about online shopping.
It has been studied that most of the people use computers in the daily business. It has
been found that most of the people find it difficult to do business without computers.
In order to access the Internet from the house it is necessary to have a personal
computer in the house. Therefore this has a direct effect on the users number of hours
he or she as the case may be, uses the Internet. Therefore it is necessary to understand
the penetration of PC in the households.
52
RECOMMENDATIONS:
The firm can differentiate its services on the following dimensions:
Marketing Strategy
1. Promotion
The promotional mix for any product or service consists of following elements:
Advertising
Sales promotion
Personal selling
Direct marketing
Public relations
Internet
But in the case of an Online Shopping Portal we shall be looking forward to the following
Online Promotion
Advertising
Links which shall appear in the other popular Websites. Like Yahoo.com,
Rediff.com, msn.com, gmail.com, espn.com, askjeeves.com etc
Emails to prospective clients like

i)
Those who shop at other shopping Websites.
ii)
Those who have visited our site, but not purchased.
iii)
Those who have opened our regular pop-ups and advertisements.
iv)
Those who have got Shopping cards of other Chain of stores.
53
Print Promotion
Inserts in news paper and popular magazines.
News papers like

i)
Times Of India
ii)
Economic Times
iii)
Standard Charter
iv)
Dainik Bhaskar
v)
Shopping Guides
Magazines like
i)
Software journals
ii)
India today
iii)
Business World
iv)
Business Times
v)
The Week
vi)
Femina
vii)
Product catalogues
Newspaper ads, which would be in the above mentioned newspapers.

Island ads. Island ads are those print ads completely surrounded by news content.
Theyre common in magazines. Some newspapers run them in the stock tables.
Island ads are a very useful tool which could be used to bring the attention of the
readers towards our Shopping Website.
54
Catalogue
These could be sent to the prospective customers in the form of :
Mailers
Mailers are simple postal mails which are sent to the above suggested people.
They could also be distributed out areas of mass gathering like malls, shopping
stores
Word of mouth
Free advertising through world of mouth: Satisfied, loyal customers are likely
provide a firm with a strong word of mouth endorsements. This form of
advertising can be more effective than any paid advertising the firm may use and
has an added benefit of reducing costs of attracting new customers. The major
benefit is that, Word of mouth brings a lot of trust which is very difficult to bring,
especially in this product.
2. Financial incentives:
Cash On Delivery (C.O.D )
C.O.D is a delivery model where the Cash for he product purchased is given to
the courier delivery person who has brought the consignment
This model could be used specially to create trust in the prospective customers, as
safety was an important issue why people were apprehensive in using Online
shopping Websites.
55
3. Retention strategies:
The present users could be retained be providing them some attractive features like: Cash points
This is where the person gets points on every purchase, and these points could be
redeemed in the form of gift vouchers, etc
Free gifts on one time large purchases.
Providing Privilege cards.
Here the person gets a privilege card, in which we could cote the card number to
avail discounts and special offers.
Sending them Mailers
Posting them Catalogues
4. Features
Cash On Delivery
Safety
Safety is regarding the Fraudulent activities like crediting of account without
actual delivery of goods, or any other cash transfer issues
Privacy with regard to identity of customer.
Very User Friendly User Manual.
The user manual needs to be really comfortable and simple to use, with really
well explained steps and procedures.
56
Ordering ease:
This is where the customer logs in the purchase order but he is not comfortable to
do the step by step activity, here we should design a process where it is really
very easy for him to place the order
Efficiency in Delivery: Delivery refers to how well the service is delivered to the
customer. Since the service is delivered through the courier network, the service can
be availed easily on the customers doorstep
Quick Turn Around time this refers that the time cycle of order placing to order
processing to product dispatching and finally the Delivery should all be done with
utmost efficiency and Speed
5 Market Potential
From the survey, most of the respondents have opinion of friends and relatives, past
experience and preferred print ads as an influential source of information.
a. NON-USERS
They could develop as users by taking the following-steps: Create awareness about the brand, with the help of advertisements, Inserts, online
ads etc.
Create a trust in the safety of the service.
Design ways how they could be attracted towards the website by sending them
Mailers, Catalogs and Emails etc.
THE AIM: we should convert as many non-users in to Users.
57
b. USERS
They could be developed as a Loyal Customers, and ensure that they on shop through us.
This could be achieved by providing superior services and regular
Mailers
Catalogs
Emails
Privilege points, etc.
c. THE UNAWARE
They could be transferred in the User category by providing them information and given
the knowledge hoe it works
58
CONCLUSION
It is found that in order to access the Internet from the house it is necessary to have a
personal computer in the house. Today most of the people are aware of the internet and
its uses. Most of the people are quite habituated to the use of internet and are aware of the
online shopping. People use online shopping for the convenience that it provides.
Some of the most commonly purchased items on Internet are:


Online Bidding.
Most of the Online Purchases are done by the people in the age group of 26-30. and the
most visited online shopping websites are baazee.com and indiatimesshopping.com .
Though the internet familiarity is high the online shopping is low due to the following
reasons:
Safety
Security
Cost of shipping
Delay in delivery.
59
ANNEXURE
60
Annexure 1
QUESTIONNAIRE
Good Morning _____________ Sir/Madam, (as apt). I am a student of Alliance Business

Academy, a reputed management institute. I am currently conducting a Study on
behaviour of consumers for Internet and perception towards online purchases, as
part of University requirements. I would greatly appreciate if you would spare 5-10
minutes of your valuable time to answer few questions.
The information collected during the interview will be kept strictly confidential and
your identity will not be used for any commercial purpose without your express consent.
1. Could you please tell us about your familiarity with Internet?
Heard about it but never used it
Use it once a while (1-10 Hrs a month)
Use it frequently (11-30 Hrs a month)
Use it very frequently (>30 Hrs a month)
2 Do you use computer in your day to day operations of business?
Yes
No
61
3. Where do you access internet?
At home
At office
At a cyber centre
Others
4. Do you own a personal computer?
Yes
No
No
If coded 1,
a. Do you have an Internet connection?
Yes
5. How many members in your house use the net?
6. What are different types of activities you do on the net?

Emailing
Chatting
Online Shopping
Information portals
Others
62
7. Do you think online shopping is a good and safe mode of shopping?
Yes
No
8 What sources of information would you consider before making choice of Online
shopping Web site.
Print ads
Friends and relatives
Leaflets
Past experience
Hoarding
Banners
Any other (please specify)
9. Which are the online shopping portals that you prefer to shop on?
eBay.com
Baazee.com
Yahoo Shopping
Indiatimes shopping
Any other (please specify)
10. Please tick the appropriate with reference to a online shopping.
I would try to prefer it
I would wait till feed back is available
I would wait till the product is established
I will prefer not to try
63
11. Could you please tell us about your opinion of online shopping?
_____________________________________________________________
PERSONAL DETAILS:
a. Name of the respondent
________________________________________________________
b. Age group:
15-20 yrs
30-35 yrs
21-25 yrs
36-40 yrs
26-30 yrs
Above 40 yrs
c. Occupation:
Student
Housewife
Businessman
Retired
Professional
Others (please specify)_________________
64
BIBLIOGRAPHY
65
BIBILOGRAPHY
Charles W. Hill - International Business- Tata McGraw-Hill
Philip Kotler Marketing Management Prentice-Hall India
www.movietickets.com
www.thetrainline.com
http://cameras.ebay.in/
www.baazee.com http://www.ebay.in/
www.netgrocer.com
www.tesco.com
www.groceryshopping.net/
www.indianfoodsco.com/
66

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