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ONLINE V/S RETAIL SHOPPING 2016

CHAPTER I

Introduction to Retail Marketing


What is traditional shopping?
Imagine going to a store, think of your favorite store in the nearest mall to where you
live. You get into the store, slowly walking from rack to rack, checking out the display,
putting a dress over your body and trying to check out your reflection on one of the
nearby full-view mirrors that are placed all around the store. You move on to the next
display rack, and probably make another selection and do the same thing you did earlier.
This is what traditional shopping is about. Having the ability to physically choose and
check out what an item or product is like, would look like, and what its features are. This
is why some consumers still prefer the traditional type of shopping over online shopping
because for one, it allows them to meticulously check out an item. Some consumers are
not quite certain with their own size, sometimes fitting a size that would normally be
bigger or smaller than their actual size. So in retrospect, while online shopping has not
just numerous benefits and advantages as explained by many online consumers as well
as studies and surveys, there are still conventional shoppers who like to check out the
product that they are interested in buying.

A shopping mall is a building or group of buildings that contains stores. The


stores are connected by walkways so that consumers can easily walk between the
stores. Malls can be built in an enclosed or open-air format.
"Shopping center" redirects here. For smaller street side shopping locations, see
Strip mall.
A shopping mall is a modern, chiefly North American, term for a form of
shopping precinct or shopping center, in which one or more buildings form a
complex of shops representing merchandisers with interconnecting walkways that
enable customers to walk from unit to unit. A shopping arcade is a specific form
serving the same purpose.

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Many early shopping arcades such the Burlington Arcade in London, the Galleria
Vittorio Emanuele II in Milan, and numerous arcades in Paris are famous and still
trading. However, many smaller arcades have been demolished, replaced with
large centers or "malls", often accessible by vehicle. Technical innovations such
as electric lighting and escalators were introduced from the late 19th century.
From the late 20th century, entertainment venues such as movie theaters and
restaurants began to be added. As a single built structure, early shopping centers
were often architecturally significant constructions, enabling wealthier patrons to
buy goods in spaces protected from the weather.
Malls, Open air centers and hybrid centers are the three main shopping centers.
Open air centers are a row of stores managed as a unit, with parking in front of the
stores. The common areas are not enclosed. A hybrid centre combines two or
more shopping centre types. A mall is defined by ICSC as a shopping centre
which is typically enclosed, climate controlled and lighted, flanked on one or both
sides by storefronts and entrances. On-site parking, either surface or structured is
usually provided around the perimeter of the shopping centre.
Development of shopping areas and building types
Headquarters of the International Council of Shopping Centers in the middle
skyscraper are the offices, the global trade association of the shopping center
industry, in Midtown Manhattan, New York City.
One of the earliest examples of public shopping malls comes from ancient Rome,
in forums where shopping markets were located. One of the earliest public
shopping centers is Trajan's Market in Rome located in Trajan's Forum. Trajan's
Market was probably built around 100-110 CE by Apollodorus of Damascus, and
it is thought to be the world's oldest shopping center a forerunner of today's
shopping mall. The Grand Bazaar of Istanbul was built in the 15th century and is
still one of the largest covered shopping centers in the world, with more than 58
streets and 4,000 shops. Numerous other covered shopping arcades, such as the
19th-century Al-Hamidiyah Souq in Damascus, Syria, might also be considered as

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precursors to the present-day shopping mall.Isfahan's Grand Bazaar, which is
largely covered, dates from the 10th century. The 10-kilometer-long, covered
Tehran's Grand Bazaar also has a lengthy history. The oldest continuously
occupied shopping mall in the world is likely to be the Chester Rows. Dating back
at least to the 13th century, these covered walkways housed shops, with storage
and accommodation for traders on various levels. Different rows specialized in
different goods, such as 'Bakers Row' or 'Flesh mongers Row'.
Gostiny Dvor in St. Petersburg, which opened in 1785, may be regarded as one of
the first purposely-built mall-type shopping complexes, as it consisted of more
than 100 shops covering an area of over 53,000 m2 (570,000 sq ft).
The March des Enfant Rouges in Paris opened in 1628 and still runs today. The
Oxford Covered Market in Oxford, England opened in 1774 and still runs today.
The Passage du Caire was opened in Paris in 1798. The Burlington Arcade in
London was opened in 1819. The Arcade in Providence, Rhode Island introduced
the retail arcade concept to the United States in 1828.The Galleria Vittorio
Emanuele II in Milan, Italy followed in the 1870s and is closer to large modern
malls in spaciousness. Other large cities created arcades and shopping centers in
the late 19th century and early 20th century, including the Cleveland Arcade,
Dayton Arcade and Moscow's GUM, which opened in 1890. Early shopping
centers designed for the automobile include Market Square, Lake Forest, Illinois
(1916), and Country Club Plaza, Kansas City, Missouri (1924).
An early indoor mall prototype in the United States was the Lake View Store at
Morgan Park, Duluth, Minnesota, which was built in 1915 and held its grand
opening on July 20, 1916. The architect was Dean and Dean from Chicago and
the building contractor was George H. Lounsberry from Duluth. The building is
two stories with a full basement, and shops were originally located on all three
levels. All of the stores were located within the interior of the mall; some shops
were accessible from the inside and out.
In the mid-20th century, with the rise of the suburb and automobile culture in the

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United States, a new style of shopping center was created away from downtown.
From early on, the design tended to be inward-facing, with malls following
theories of how customers could best be enticed in a controlled environment.
Similar, the concept of a mall having one or more "anchor stores" or "big box
stores" was pioneered early, with individual stores or smaller-scale chain stores
intended to benefit from the shoppers attracted by the big stores. Mall
construction in America was encouraged by the accelerated depreciation laws of
1954, which incentivized Greenfield development on the urban fringe. A second
stimulus came from legislation passed in 1960, which allowed investors to band
together in REITs (Real Estate Investment Trusts) to avoid corporate income
taxes. The laws helped to shape the familiar exurban landscape of malls, motels,
and fast food chains. By year end 2015, the total amount of retail space per person
in the United States will be 48.3 square feet. This is off from the high of 49.8
square feet set in 2009. It is projected that this figure will continue to decline
through 2020.

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History of Retail Marketing

These trends were vastly accelerated in the 18th century, as rising prosperity and social
mobility increased the number of people with disposable income for consumption.
Important shifts included the marketing of goods for individuals as opposed to items for
the household, and the new status of goods as status symbols, related to changes in
fashion and desired for aesthetic appeal, as opposed to just their utility.
The pottery inventor and entrepreneur, Josiah Wedgewood, pioneered the use of
marketing techniques to influence and manipulate the direction of the prevailing tastes.

As the century wore on a tremendous variety of goods and manufactures were steadily
made available for the urban middle and upper classes. This growth in consumption led
to the rise of 'shopping' - a proliferation of retail shops selling particular goods and the
acceptance of shopping as a cultural activity in its own right. Specific streets and districts
became devoted to retail, including the Strandand Picadilly in London.

The first display windows in shops were installed in the late 18th century in London.
Retailer Francis Place was one of the first to experiment with this new retailing method at
his tailoring establishment in Charring Cross, where he fitted the shop-front with large
plate glass windows. Although this was condemned by many, he defended his practice in
his memoirs, claiming that he:

Retailers designed attractive shop fronts to entice patronage, using bright lights,
advertisements and attractively arranged goods. The goods on offer were in a constant
state of change, due to the frenetic change in fashions. A foreign visitor thought
that London was "A world of gold and silver plate, then pearls and gems shedding their
dazzling lustre, home manufactures of the most exquisite taste, an ocean of rings,
watches, chains, bracelets, perfumes, ready-dresses, ribbons, lace, bonnets, and fruits
from all the zones of the habitable world".

Department stores
The next stage in shopping was the transition from 'single-function' shops selling
one type of good, to the department store where a large variety of goods were

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sold, ordered by department. As economic growth, fueled by the Industrial
Revolution at the turn of the 19th-century, steadily expanded, the affluent
bourgeois middle-class grew in size and wealth. This urbanized social group was
the catalyst for the emergence of the retail revolution of the period. The first
reliably dated department store to be established was Harding, Howell & Co,
which opened in 1796 on Pall Mall, London.

This venture was described as being a public retail establishment offering a wide
range of consumer goods in different departments. This pioneering shop was
closed down in 1820 when the business partnership was dissolved. Department
stores were established on a large scale from the 1840s and 50s, in France, the
United Kingdom and the United States.

Malls may be built of steel and concrete, but sociologically, they are microcosms
of American culture, reflecting, reinforcing and even helping mold core American
values like what it means to be human, why we work and what it means to live
the good life." So says James J. Farrell, author of One Nation under Goods.
Taking a look at malls and how theyve changed over time provides a glimpse
into how Americas mores and markers of success have evolved over the past
century.

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Precursors
Frenchman Aristide Boucicault created the first department store, Bon March, in
Paris in 1852. Soon, Americans followed suit and were jumping on the one-stop-
shopping trend and by the 1870s department stores like Macy's and
Bloomindaless were flourishing in the U.S. As the twentieth century progressed
and Americans increasingly took to their cars, many moved to the suburbs, giving
rise to the strip mall. This was followed by community shopping centers and then
regional shopping centers, the final precursor to the modern mall. The
intersections just off highways, prospering American suburbanites, and tax
policies favoring commercial development all provided a perfect breeding ground
for malls.

First Malls
The first modern shopping mall is generally credited to be South dale Shopping
Center, which opened in Edina, Minnesota in 1956. Designed by Victor Gruen, it
was the first venue to provide a fully enclosed, two-level, climate-controlled
shopping experience that included competing department stores to anchor
specialty shops. Such anchor stores would become a central foundation of
flourishing malls. Other innovations of Americas first mall included a central
interior courtyard and separation of car and pedestrian movement. Early mall
developers such as Gruen and James Rouse also wanted to encourage civic
engagement and so included things like public art and spaces for community
activities.
Spencer Plaza was built in 18631864, established by Charles Durant and J. W.
Spencer in Anna Salai, and then known as Mount Road, in the Madras
Presidency. The property originally belonged to Spencer & Co Ltd. Spencer & Co
opened the first Departmental store in the Indian subcontinent in 1895 and the
store had over 80 individual departments. After a few years, Eugene Oakshott,
owner of Spencer's, shifted the department store to a new building, which was an

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example of Indo-Saracen style of architecture. The building was designed by W.
N. Pogson. In 1983, the original building was destroyed in a fire. The present
Spencer Plaza was constructed on the same site measuring about 10 acres and was
opened in 1991. Spread across a million square feet built in three phases with
parking space for 800 cars, the plaza is one of the major hangouts for the people
of Chennai. The mall was developed by Mangal Tirth Estate Limited in January
1993.

Suburban and Urban


With large department stores anchoring a seductive collection of specialty shops,
parking lots on both levels, good security, harmonized architectural design, and
pleasant background Muzak, malls were comforting, convenient, centralized
shopping centers that projected an air of fun and modernity. By the early 1950s
malls were drawing in more retail sales than metropolitan downtowns, and by
1976 accounted for 78 percent of department store receipts.
Malls in Decline
There are about 1,000 enclosed malls left in America. Now viewed by many as
historical anachronisms -- as one prominent real estate developer put it -- many

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of these malls are suffering. Not one, new enclosed mall has opened in the U.S.
since 2006. Many developers and retail analysts predict the mall will soon
become extinct unless malls modify their shopping experience to align with the
times. Many big retailers have fled malls or gone out of business. Forces
contributing to the traditional malls decline include the rise of online shopping
and a newfound preference for Main Street, bricks-and-mortar shopping that
provides face-to-face, social interaction between retailers and consumer.

Malls Reinventing
To keep up with the times, malls are doing things like redesigning themselves to
look more akin to downtown squares -- adding dog parks, street-grid layouts,
restoring paved-over creeks and providing street-accessible shops. They are also
employing such strategies as enhancing technology, increasing their social media
marketing, and booking a wide array of events such as celebrity appearances,
book signings, and fashion shows. As one retail strategist put it, Americans are no
longer interested in simply shopping at "buildings with stuff"; they want an
experience that combines social gathering, entertainment and shopping with a

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pleasant, aesthetic environment.
Etymology

Retail comes from the Old French word taller, which means "to cut off, clip, pare,
divide" in terms of tailoring 1365. It was first recorded as a noun with the
meaning of a "sale in small quantities" in 1433 from the Middle French retail,
"piece cut off, shred, scrap, paring". Like in French, the word retail in both Dutch
and German also refers to the sale of small quantities of items.

Retail strategy

The retailing strategy is a marketing plan abstractly designed to offer its products
and services in a way that will optimize customer satisfaction. Service quality and
marketing mix strategy have significant and positive association on customer
loyalty. The marketing strategy effectively outlines all key aspects of firms
targeted audience; demographic and preference. Throughout a highly competitive
market, the retail strategy sets up long-term sustainability. It focuses on customer
relationships, stressing the importance of added value and customer satisfaction.
The retail mix is designed to complement the retail strategy through theoretical
tools such as the product, its quality and value, the promotions, place, and price.

Retail store design strategy

The design of a retail store is critical when appealing to its intended market, as
this is where first impressions are made. It can influence a consumers perception
of the quality of the store, visually communicating value. Certain techniques are
used to create a consumer brand experience, which in the long run drives brand
loyalty. The front of the store is paid close attention too, known as the
decompression zone" This is usually an open space in the entrance of the store to
allow customers to adjust to their new environment. An open planned floor design
is effective in retail as it allows customers to see everything. Depending on what

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side of the road cars drive on in the country, determines what way the store will
direct its customers. New Zealand retailer stores for instances would direct
customers to the left. Brands are now recognizing that human nature has a
conceptual profile and a sensory profile. Through the notions of sensory
stimulation retailers can engage maximum emotional impact between a brand and
its consumers by relating to both profiles; the goal and experience. By achieving
so it can influence purchasing behavior maximizing outcomes. This is done
through the relation of touch, smell, sight, taste and noise. It is common for a
retailer store to play music that relates to their targeted market. Jewelry stores like
Michel Hill have dim lighting to creating a sense of intimacy. Super markets offer
taste testers. Clothing garments are at arm's reach, allowing customers to feel the
different textures of clothing. Wooden floors also contrast with the carpeted
fitting rooms, which is designed to create a sense of homeliness when trying on
garments. Peter Alexandra is renowned for their scented candles. These aspects
outlined add to the sensory experience put in place to strategically achieve
customer satisfaction and retention. This will create future opportunity and help a
brand stand out in amongst the competitive market.

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Introduction to E-retailing

What is online shopping?

The act of purchasing products or services over the Internet. Online shopping has
grown in popularity over the years, mainly because people find it convenient and
easy to bargain shop from the comfort of their home or office. One of the most
enticing factor about online shopping, particularly during a holiday season, is it
alleviates the need to wait in long lines or search from store to store for a
particular item.

OR

Online shopping is the process whereby consumers directly buy goods or services
from a seller in real-time, without an intermediary service, over the Internet. It is a

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form of electronic commerce. An online shop, e-shop, e-store, Internet shop, web
shop, web store, online store, or virtual store evokes the physical analogy of
buying products or services at a bricks-and-mortar retailer or in a shopping center.
The process is called business-to-consumer (B2C) online shopping. When a
business buys from another business, it is called business-to-business (B2B)
online shopping.

A retailer or a shop is a business that presents a selection of goods and offers to


trade or sell them to customers for money or other goods. Shopping is an activity
in which a customer browses the available goods or services presented by one or
more retailers with the intent to purchase a suitable selection of them. In some
contexts it may be considered a leisure activity as well as an economic one.

. In ancient Greece, the agora served as a marketplace where merchants kept stalls
or shops to sell their goods. Ancient Rome utilized a similar marketplace known
as the forum. For example, there was Trajan's Market with tabernae that served as
retailing units.

Shopping lists are known to have been used by Romans, as one was discovered
near Hadrian's wall dated back to 75125 CE written for a soldier

Fairs and markets were established to facilitate the exchange of goods and
services. People would shop for goods at a weekly market in nearby towns.

The modern phenomenon of shopping is closely linked to the emergence of


the consumer society in the 18th century. Over the course of the two centuries
from 1600 onwards, the purchasing power of the average Englishman steadily
rose. Sugar consumption doubled in the first half of the 18th century and the
availability of a wide range of luxury goods, including tea and cotton saw a
sustained increase.

New Exchange opened in 1609 by Robert Cecil in the Strand. Shops started to

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become important as places for Londoners to meet and socialise and became
popular destinations alongside the theatre. Restoration London also saw the
growth of luxury buildings as advertisements for social position with speculative
architects like Nicholas Barbon and Lionel Cranfield.

Much pamphleteering of the time was devoted to justifying conspicuous


consumption Marketplaces dating back to the Middle Ages, expanded as shopping
centers, such as the and private vice for luxury goods for the greater public good.
This then scandalous line of thought caused great controversy with the publication
of Bernard Mandeville's influential work Fable of the Bees in 1714, in which he
argued that a country's prosperity ultimately lay in the self-interest of the
consumer

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The first World Wide Web server and browser, created by Tim Berners-Lee in
1990, opened for commercial use in 1991. Thereafter, subsequent technological
innovations emerged in 1994: online banking, the opening of an online pizza shop
by Pizza Hut, Netscape's SSL v2 encryption standard for secure data transfer, and
Intershop's first online shopping system. The first secure retail transaction over
the Web was either by Net Market or Internet Shopping Network in
1994.Immediately after, Amazon.com launched its online shopping site in 1995
and eBay was also introduced in 1995.Alibaba's sites Taobao and Tmall were
launched in 2003 and 2008, respectively. Retailers are increasingly selling goods
and services prior to availability through "retail" for testing, building, and
managing demand.

The increase in technology provides good opportunities to the seller to reach the
customer in much faster, easier and in economic way. Online shopping is
emerging very fast in recent years. Now a day the internet holds the attention of
retail market. Millions and millions of people shop online. On the other hand the
purchasing of product from traditional market is continuing since years. Many
customers go for purchasing offline so as to examine the product and hold the
possession of the product just after the payment for the product. In this
contemporary world customers loyalty depends upon the consistent ability to
deliver quality, value and satisfaction. Some go for offline shopping, some for
online and many go for both kind of shopping. While making any purchase
decision consumer should know the medium to purchase whether online shopping
or the offline shopping. Consumer should decide the channel for them which can
best suit to their need and wants and which can satisfy them. In this competitive
world how consumer can decide the particular medium for their purchase of
goods is very important to understand in a managerial point of view. The behavior
of online shopping is also known as online buying behavior and internet
shopping. Buying behavior means the purchase of good over internet using web
browser. Online shopping also consist the same five steps which is related to

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traditional shopping behavior. But rather than searching actively, many a times
potential consumers are attracted by the information about the product they want.
They see many products online and choose the best one which suits him/her. Then
they purchase that product and finally the transaction takes place and post sales
service provided by the online sites. Online shopping attitude and behavior are
related to the consumer. Previous studied have focused on why the products of the
online shopping is different from other products. Many studies have focused that
the high touch products that the consumer feels when they need to touch, smell or
try the product. It requires the offline shopping at the purchasing stage because it
cannot be done in the online shopping. Even with the increase in the online
shopping and the recognition that online shopping is more likely to impose the
pressure on offline shopping or traditional shopping. The research is very limited
in this area or field. Online or e-shopping is a kind of electronic shopping which
allow the consumer to purchase goods over the internet directly from the seller
using a web browser. There are some alternative names of online shopping those
are as follow- e-web store, e-shop, e-store, internet shop, web-shop, web-store,
online store, online store front and virtual store. Mobile commerce or m-
commerce is described as purchasing from the online retailer by the mobile
optimized online sites or application (app).

(Aldrich Archive, 1982) online shopping is invented by an English entrepreneur


Michael Aldrich in 1979. (Palmer& Kimberly, 2007) Tim Berners Lee is the one
who created the first World Wide Web server in 1990. It was opened for a
commercial purpose. There after many technological innovation emerged in 1994
like the online banking, the opening of online pizza shop by Pizza Hut, Netscape
SSL v2 encryption standard for secure data transfer, and Intershops first online
shopping system. In 1994 the first secure transaction was over the web either by
Net market or Internet shopping. Amazon was launched in 1995, it is the first
online shopping site of the world and after that eBay was introduced in
1995.Today many countries are doing online shopping but still some countries are

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at the starting point of the experiment of online shopping. In 1987, the merchant
account was launched that helped the software developers to sell their software
online easily. Swreg was the name of first software and the oldest software that is
still available. Future shop is a book for how new technology will change the way
of shopping and what the customer buy. It was published in the year 1992.

Factors affecting online

Online shopping becomes relevant in the last decade. The kind of business online retailer
are doing is proof enough that they are providing some benefits to customer which offline
shopping does not give to the customer. These are the factors affecting online shopping-:

Risk: When customer buy products from online shopping they do not touch or
feel the product in a physical sense .Hence we understand that lot of risk is
involve while buying an online product whether it will reach us on proper time or
not is also a concern and a also there may arise a risk of product size and color as
it may differ in real view or sense. Sometimes the product ordered is kind of
damaged.

Convenience: Online shopping is much more convenient than offline shopping.


Instead of taking out your vehicle and visit shop to shop you can just sit at your
home and do the shopping. It is convenient to sit at one place and shop the
product of our choice without moving from place to place. Once you have decided
on what you want to buy the payment process is seamless and the order is
delivered to your place. Online shopping makes things more convenient. We can
have a lot of choice over there in any kind of material we want to deal with that
too without any fear of dealing with any dealer or distributers. Online shopping is
convenient in its real sense as it do not carry any dealing with issues of asking for
wanted items or issues of asking for desired kind of items which helps in avoiding
the part of waiting, asking, questioning about the product.

Anxiety: Peoples anxiety of exploring the sites and experimenting over them is

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also a matter of concern. Sometimes people those who are not very known to any
sites like flip kart ,Myntra or any sites they just feel like its a tough kind of
activity over net and its complicated in there sense as they are not very fond of
doing online shopping as it takes a time to even understand the product about its
details. This particular activity makes them irritated and anxiesious over any kind
of fatal online dealing.

Previous online experience: How has been a persons experience in past as far as
online shopping is concerned is a major story of concern. Previous experience is
what matters actually as its hamper or sometime it keep good view or mood of
people. There are two experiences one is about good and another is about bad.
Both has its own and different affect in the mind of buyers. So these factors also
influence online shopping or e shopping.

Pricing Policy: Online retailers gets an inherent advantage in pricing as they


dont have to bear expenses like store rent, bills etc. They can pass their price
directly to customer and generally offer a lower price to customer than offline
market. Even when shipping charges are included than also it is better than the
offline shopping. Hence, determines the level of online shopping. Lower the
price- higher the mood to demand, higher the price lower the demand. Price of
any commodity also influences the purchasing power of any specific buyer.
Consumer generally prefer mild or normal price with good quality and do not
want to spend or expense lot for any kind of stuff. So buying and selling both are
simultaneously affected by the price of product.

Quality: The quality of product at online sites and offline stores vary a lot and
then this determines the frequency of online shopping. Quality also carries good
affecting nature over any kind of shopping. As consumer or buyer want to have a
good quality of product as they spent their huge sum of money. In general,
qualities is a primary need over any kind of purchasing as it somewhat secure or

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give a good sense of buying or kind of guarantee about the product preferred.

Online trust: It depends on customer perception whether they trust a particular


site and its product and services. Hence the frequency of online shopping also
depends upon whether they trust a particular site or not. People are different in
their nature and thoughts, some kind of people trust online dealing some kind of
people are in fear of online dealing. Trust 6 carry a lot of points examples- trust
about the same product size quantity weight and security etc.

Delivery time: The product ordered by the customer in online shopping takes a
minimum of six to seven days to deliver the product to the customer. But in
offline shopping the possession of the goods is immediately transferred to the
buyer. So this is a major factor which affects the online shopping. People want a
good delivery time; they prefer to get a product in a desired time or in short time
of duration. Duration is the second major factor affecting the demand of product.

Taste and preference: The taste and preference of the customer vary from
customer to customer and time to time, taste and preference also a factor which
influences online shopping. Taste and preference of age group also matters in
online shopping. Old people buy or purchase product for their kind of use. Young
generation or teenagers use to purchase their taste of product. Taste and
preference move in tend of ages and choices. Every customer or buyer choices are
different in nature as per their ages.

Information: The information given in the site may not be correct or may not be
appropriate information. The full information about the quality of the product may
not reach to the customer. Hence it will affect the online buying of the customer.
Information provided by the preferred sites may be not the same about the detail
of the product. May be with the provided 7 information and details customers are
not very satisfied. Sometimes it happens that even many customers use to buy the
product after their full knowledge of details as they prefers the detail are accurate

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and good in sense. Information related to product may vary in its real sense when
it arrives or delivered to relevant customer.

Variety: The kind of variety that a customer gets online is hard to match any
product purchased offline. The online retailers stock products from the entire
major brand and a customer can find any product in their listing no matter how
hard to find it is in the offline store. Online and offline both shopping provide
variety of range from various brands. Variety in it itself is the foremost dealing
factor which influence the market. Larger the variety of product in shop higher the
selling and vice-versa. People generally prefer to move where they get more
variety of products.

PROCESS OF ONLINE SHOPPING

A consumer uses web browser to connect to the home page of a merchants web site on
the internet.

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PAYMENT GATEWAY

METHODS OF PAYMENT

Online shoppers commonly use a credit card or a PayPal account in order to make
payments. However, some systems enable users to create accounts and pay by alternative
means, such as

Credit card

Debit card

Payment websites

PayPal

Wire Transfer

Electronic money of various types

Purchase order

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Checks and Money order

Mobile Payments

Bank Transfer

Cash On Delivery (COD)

Some online shops will not accept international credit cards. Some require both the
purchaser's billing and shipping address to be in the same country as the online shop's
base of operation. Other online shops allow customers from any country to send gifts
anywhere.

The financial part of a transaction may be processed in real time (e.g. letting the
consumer know their credit card was declined before they log off), or may be done later
as part of the fulfilment process.

Overall Buy
Projected Unique
Rank Web Site Reach Rate
Buyers Users
(%) (%)

23.5
1 www.Flipkart.com 2,330,000 23.6 10.2
million

17.9
2 www.Snapdeal.com 215,000 17,3 7.0
million

23.6
3 www.Amazon.com 188,000 23.7 8.2
million

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ONLINE V/S RETAIL SHOPPING 2016

4 Www.Paytm.com 186,000 2.3 2,226,000 8.4

5 www.ebay.in 185,000 8.3 8,089,000 2.3

6 www.Jabong.com 159,000 1.4 1,391,000 11.4

7 www.myntra.com 153,000 3.2 3,120,000 4.9

8 www. Shopclues.com 136,000 1.1 1,066,000 12.8

9 www. Pepperfry.com 133,000 1.33 1,154,000 4.2

10 Www.Homeshop18.com 100,200 1.002 2,344,000

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ONLINE V/S RETAIL SHOPPING 2016
CHAPTER II

REVIEW OF LITERATURE

Research dealing with shopping malls and / or hypermarkets attributes,


especially in the Indian context, is very less in number. Not many studies have
empirically analyzed the influence of an assortment of attributes on buying
behavior in shopping arcades and malls and customers shopping experiences.
Mostly the researches undertaken so far have been taken from the foreign
experiences, as they have come of age in the US, UK and European markets. An
earnest attempt has been made to delve into the relevant researches done on the
theme, presented henceforth as follows:

Brunner and Mason (1968) investigated the importance of driving time upon the
preferences of consumers towards regional shopping centers. They expressed that
although it is recognized that population, purchasing power, population density,
newspaper circulation, and other factors are influential in determining the
shopping habits of consumers, a factor which is generally overlooked is the
driving time required to reach the center. In this study, it was established that the
driving time required to reach a center is highly influential in determining
consumer shopping Center preferences. The most consistent and significant
driving time dimension in Delineating shopping center trade areas was found at
the 15-minute driving points, as Three-fourths of each centers shoppers resided
within this range.

Huff (1964 and 1966) concluded that the comparative size of the centers and the
convenience of access were the primary characteristics that consumers sought
when choosing a shopping center to visit.

From the study of Pan (2007, p.5), the author cited from Engel, Blackwell and
Miniard (1990), that defines purchasing intention as a psychological process of
decision-making. According to Pan (2007), "purchasing decision process" is when

24
ONLINE V/S RETAIL SHOPPING 2016

the relevant information is searched by the consumers that are motivated by the
fulfillment of demands according to personal experience and the external
environment; then after accumulating a certain amount of information, they begin
to evaluate and consider; and finally after comparison and judgement, they make
the decision on certain products.

In the recent study of Chen, Ching and Tsou (2007), the authors cited from Azjen
(1988); Azjen and Fishbein (1980), that the theory of reasoned action (TRA)
states that behavioral intentions formed through the attitude toward a behavior
and subjective norms lead to actual behavior given the availability of resources
and opportunities. A person's interest in performing a particular behavior is
reflected by the attitude toward a behavior and it is determined through behavioral
beliefs; these beliefs are obtained through a cognitive evaluation of outcomes
associated with performing the behavior and the strength of the association
between outcomes and behavior; while the evaluation produces either a favorable
or unfavorable response to the object, person, thing or event (Chen, Ching and
Tsou, 2007).

According to Monsuwe, Delleart and Ruyter (2004), there are five external factors
to understand consumer's intention to purchase in the internet which is the
consumer personality, situational factors, product characteristics, previous online
shopping experiences and the trust in online shopping. Consumer's trait includes
their demographic factors such as age, income, gender and educational level will
lead them to have the intention to shop online. For age factor, consumers that are
aged under 25 has more potential to shop in online because of their interest in
using new technologies to search for product information and compare and
evaluate alternatives (Wood, 2002). For educational level, higher educated
consumers are more likely to use the internet for their shopping medium because
they are more computer literate (Burke, 2002).

Situational factors will also lead a consumer to have the intention to shop in the
internet such as time pressure, lack of mobility, geographical distance, need for
special items and attractiveness of alternatives (Monsuwe, Delleart and Ruyter,
2004). Time pressure can be the insufficient time for consumers to shop in
traditional stores because of their hectic lifestyle. Consumers are able to shop any

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ONLINE V/S RETAIL SHOPPING 2016

time of the day or night in the comfort of their home; especially for consumers
who have little amount of free time because of extended working hours
(Wolfinbarger, et, al,. 2001). For consumers that lack of mobility might be caused
by their inability to reach the traditional store. Geographical distance is referred to
as the far distance between the consumer's residential area and the shopping mall.
Need to special items could be the consumer's needs of customized products to
suit their demand (Monsuwe, Delleart and Ruyter, 2004).

Product characteristic is also another factor that will influence the consumer's
intention to purchase in the internet. Product characteristic can be tangible or
intangible; standardized or customized. In an online context, lower tangibility of a
product is caused by the lack of physical contact and assistance in the shopping
process; consumer's intention to shop on the internet will be low when there is a
need to seek advice from a salesperson regarding the considered product
(Monsuwe, et. al., 2004). Products such as car, computers, perfume, perfume or
lotion has the lower potential to be purchased by the consumer because it requires
more personal knowledge and experience (Elliot, et. al., 2000).

Another factor that influences the consumer's intention to purchase in online is the
previous online shopping experiences. Consumers will continue to shop in the
internet in the future is because they are satisfied with the online shopping
experience and it was evaluated positively (Shim, Eastlick, Lotz and Warrington,
2001). Consumer's perceived risk will tend to reduce when they are satisfied from
the shopping experiences (Monsuwe, Delleart and Ruyter, 2004).

The last factor that will influence consumer's intention purchase in online is the
trust in online shopping. According to Lee and Turban (2001), reasons that
consumers choose not to shop online is because consumers lack of trust in online
shopping. Attitude towards security transaction such as payment security,
consumer information privacy, return policy, and product shipping guarantee
predicts online purchasing intentions for apparels product (Kim, et. al., 2003).
Similarly, consumer's trust towards online shopping is based on the level of
security and privacy.

Price is a form of monetary that people use for any transactions. It is predicted
that price of a product differs in online and offline shopping. According to Xia

26
ONLINE V/S RETAIL SHOPPING 2016

and Monroe (2009), consumers will save in monetary when there are price
promotions on specific products. In an online context, consumers are more likely
to depend on the price cues to determine the quality of a product which are
presented in the web site because they cannot see or touch the actual product
(Jiang and Rosenbloom, 2005). The study of So, Wong and Sculli (2005) resulted
that when there is the presence of promotional offers, consumers will have higher
intention to purchase in web-shopping; purchasing decisions and choice making
from alternative evaluations can be made easily when there is the presence of
promotional offers.

According to Xia and Monroe (2009), their study resulted that consumers with a
shopping goal are more responsive towards promotional messages such as "pay
less" and "discount" while consumers without shopping goal are responsive
towards promotional messages such as "save more" and "free gift". Xia and
Monroe (2009, p.691) cited from (Monroe, 2003) that price promotion have
several benefits such as to increase demand, adjust fluctuations in supply and
demand, and increasing consumers' purchasing over time.

According to Parasuraman, Zeithaml and Berry (1988), perceived quality and


price are thought if as a cue to assume a product's value. Xia and Monroe (2009)
viewed that at a certain point, perception of lower quality of the product will
evoked when there is a price reduction or there will be questions on the retailer's
intention to reduce the price. Price will be a primary factor when consumers
search product in a web and this would show that customer behavioral intention
are related to the price cues that are more readily accessible from memory (Jiang
and Rosenbloom, 2009).

According to Liu, He, Gao and Xie (2008), it is important for e-tailers to provide
varied types of merchandise and preferential price because customer satisfaction
is still based on product price and product variety; to create competitive
advantage, small e-tailers should offer more product choices for the consumers
and offer competitive prices.. In online shopping, consumers are able to compare
prices on the internet in different web sites and they will have the material benefit
because they can analyze and compare prices based to enhance their decision to
purchase (Liu, He, Gao and Xie, 2008). According to Jin and Kim (2003), diverse

27
ONLINE V/S RETAIL SHOPPING 2016

consumer groups with various motivations and economic conditions can be


satisfied through discount stores that are available in Korea.
Jackson, Stole and Brantley (2011) in their paper expressed that the customer
segments seek out relevant shopping venues based on their shopping wants an
needs. Knowledge of the preferences of distinct consumer groups is useful in the
development of marketing communications and promotional strategies, as well as
for designing mall configurations that are likely to generate patronage and
repatronage due to the value creating potential of the mall. Advertising materials
could express the specific attributes the mall has to offer to the cohorts
comprising its customer base, either by gender, generation, or both. When a
retailer or mall owner finds that a large segment of its consumers are from
particular segments (e.g. generation, gender), the company can focus on segment
relevant ways to facilitate and promote a shopping experience that will drive
shopping value and create potential for repatronage.

Review of literature of online shopping

In the literature review, many authors have done their research on the customer's
perceived risk when shopping in the internet. There is few articles available which
compares the factors contributing the intention to purchase in online and offline
shopping for apparels. This study will discuss more on the factors that will
contribute to the consumer's purchasing intention for apparels which comprises of
price attractiveness, time saving, perceived risk, enjoyment and excitement,
tangibility and high interactivity.

Price attractiveness

Price is a form of monetary that people use for any transactions. It is predicted
that price of a product differs in online and offline shopping. According to Xia
and Monroe (2009), consumers will save in monetary when there are price
promotions on specific products. In an online context, consumers are more likely

28
ONLINE V/S RETAIL SHOPPING 2016
to depend on the price cues to determine the quality of a product which are
presented in the web site because they cannot see or touch the actual product
(Jiang and Rosenbloom, 2005). The study of So, Wong and Sculli (2005) resulted
that when there is the presence of promotional offers, consumers will have higher
intention to purchase in web-shopping; purchasing decisions and choice making
from alternative evaluations can be made easily when there is the presence of
promotional offers.

Time saving

Time is also perceived as one of a factor that relates with intention to purchase in
a shopping context. It is believed that consumers have their own perception of
time, whether or not to shop from the internet. According to Hansen and Jensen
(2009), accomplishing the shopping trip as soon as possible refers to the time-
saving oriented consumers and they prefer store choices favoring quick shopping;
people who dislike shopping and approaching for time saving retail stores refers
to the economic shoppers or known as "problem-solvers".

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ONLINE V/S RETAIL SHOPPING 2016
CHAPTER -3

PLAN OF STUDY

Introduction

Research
According to Robert Ross, Research is essentially an investigation, a recording and
analysis of evidence for the purpose of gaining knowledge.
The goal of research is to discover new facts, establishment of new relationship,
creation of new concepts, and verification of existing concepts, finding a solution to a
problem or satisfying ones desire to know.
Research design
Research Design is the conceptual structure with in which research is conducted. It
constitutes the blueprint for the collection of measurement and analysis of data. It is the
method of finding solution to a problem and adding a new knowledge to the existing
body of knowledge.
Title of the study
A study on different aspects of Online Shopping versus Mall Shopping
Objectives of the study
To obtain detailed information about mall shopping and online shopping.
To collect primary data from customers in a mall regarding their opinion
To make a comparative analysis between mall shopping and online shopping
based on customer opinion.
To provide suggestions for improvement of customer experience in both.
Scope of the study
To analyze whether online shopping is more convenient way of shopping or mall
shopping is considered convenient.
The study would be based upon the primary data that will be collected through the means
of questionnaire by the direct approach.

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ONLINE V/S RETAIL SHOPPING 2016
Research Methodology
Research methodology explains the overarching theoretical and philosophical
frameworks which guide the researcher. It aims at the employment of the correct
procedures to find out solutions.
Sampling
It is the subject on which measurement is taken from the whole population. It is the unit
of study. A part of the population is known as sample. The process of drawing a sample
from the larger population is called as sampling.
1. Sample unit: The sampling unit consist of respondents from all walks of life.
Example: different age groups, sex, nationality, etc.
2. Sample time: Sample time is the total time taken or used to find the result from
the sample unit.
3. Sample size: The number of elements include in the sample is called the
sampling size. The sample size in this study is 50 customers in Elements Mall,
Bangalore.
Type of Research
It is a comparative research. It is require to find out the difference between the online
shopping and offline shopping.
Data Collection
Data collection is of two types. They are:
Primary data collection: the data collected by observation, personal interview,
telephone interview, by mailing questionnaires and survey.
Secondary data collection: The data collected by obtaining from existing records,
publications, journals, magazines, etc.
Plan of analysis
There are four division of age group in the questionnaire to examine which group
is going for more online shopping and which group is going for more offline
shopping or mall shopping.

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ONLINE V/S RETAIL SHOPPING 2016
CHAPTER IV
DATA COLLECTION AND ANALYSIS

1. Age groups of samplings.


Particular Percent
Below 20 35%
20-30 35%
30-40 26%
40-50 4%

Age groups
40.00%
35.00% 35.00%
35.00%

30.00%
26.00%
25.00%

20.00%

15.00%

10.00%
4.00%
5.00%

0.00%
beow 20 20-30 30-40 40-50

Interpretation-:

The above graph tells the Age group of samplings that have been collected during the
survey.

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ONLINE V/S RETAIL SHOPPING 2016
2. Division of gender in samplings.
Particular Percent
Male 54%
Female 36%

Method Of Shopping

70.00%
62.00%
60.00%

50.00% 38.00%

40.00%

30.00%

20.00%

10.00%

0.00%
male female

Interpretation-;

The above chart is shown the number of male samplings i.e. 62% and rest 38% are
female samplings

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ONLINE V/S RETAIL SHOPPING 2016
3. Type of shopping preferred
Particular Percent
Online Shopping 58%
Retail Marketing 42%

Method Of Shopping

60.00% 58.00%

50.00%
42.00%
40.00%

30.00%

20.00%

10.00%

0.00%
Online Mall

Interpretation-:

The above graph shows what shopping methods do people prefer between online
shopping and retail or mall shopping, there are some people who prefer both the
method. The data is based upon the survey which I took thorough questioner in
Orion mall. 58% of people like online shopping and 42% of people like offline.

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ONLINE V/S RETAIL SHOPPING 2016
4. Frequency of visiting shopping malls

Particular Percent
Very Often 35%
Often 35%
Rarely 26%
No 4%

People Preception Of Visiting Mall


4%

Very Often
26% 35%
Often
Rarely
NO

35%

Interpretation-:

The above pie chart shows how often people like to visit malls. As green and blue color
shows 35% of people like to go very often and rarely, and 35 % of people like to go often
where as no one like not to visit malls.

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ONLINE V/S RETAIL SHOPPING 2016
5. Opinion regarding Usage of online shopping

Particular Percent
Yes 73%
NO 27%

Have You Ever Used Online Shopping


80.00%

70.00%
60.00%
50.00%
40.00% Have You Ever Used Online
30.00% Shopping

20.00%
10.00%
0.00%
Yes
NO

Interpretation-:

This chart shows the percentage of people who had made online shopping. In the pie
chart we can see 73% of people had mad online shopping where as 27% of people
didnt. These 27% of people are shown as nil if further online shopping related question.

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ONLINE V/S RETAIL SHOPPING 2016
6. People usually like to visit shopping mall on.

Particular Percent
Weeks Days 19%
Weekends 35%
Holidays 36%
Occasionally 10%

When People Visit Mall


40.00%
35.00% 36.00%
35.00%

30.00%

25.00%
19.00%
20.00%

15.00%
10.00%
10.00%

5.00%

0.00%
Weeks Days Weekends Holidays Occasionally

Interpretation-:

This chart shows when people like most to visit malls. The percentage of people visit to
mall is higher in holidays by 36% whereas 45% people like to go occasionally and on
weekends. Remaining 19% like to visit on weeks days.

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ONLINE V/S RETAIL SHOPPING 2016

7. People thinking about advertisements as good source of information


regarding shopping malls

Particular Percent
Yes 64%
No 36%

36%

Yes
NO

64%

Interpretation-:

This graph shows people thinking about advertisements as good source of information
regarding shopping malls. 64% of people are agree with the sentence where as 36%are
won't.

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ONLINE V/S RETAIL SHOPPING 2016
8. People mostly like to visit online shopping on

Particular Percent
Weekly 20%
Monthly 42%
Occasionally 26%
None 12%

How Often Do You Have Online


Shopping

None 12.00%

Occasionally 26.00%

Monthly 42%

Weekly 20%

0% 10% 20% 30% 40% 50%

Interpretation-:

This chart shows when people like most to visit online shopping . The percentage of
people visit to mall is higher on monthly bases 42% whereas 26% people like to shop
occasionally and 20% on weekly bases. Remaining 12% of them dont shop online.

39
ONLINE V/S RETAIL SHOPPING 2016
9. The expenditure of individual per month in shopping mall.

Particular Percent
100-500 24%
500-1000 22%
1001-2000 40%
5000 14.%

How Much Do You Usually Spend in


Shopping Mall Per Month

5000 14.00%

1001-2000
40%

500-1000 22.00%

100-500 24%

0% 5% 10% 15% 20% 25% 30% 35%


40%

Interpretation-:

The above chart tells the expenditure of individual per month in shopping mall 24% of
them spend 100-500, 22% of sampling spend 500-1000, major i.e. 40% of samples spend
1001-2000 and 14% of samples spend 5000.

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ONLINE V/S RETAIL SHOPPING 2016

10. Ratings given by sampling to the employee behavior in shopping malls out of
5

Particular Percent
1 2%
2 10%
3 28%
4 34%
5 26%

40%
40%

35%

30%

25% 25%
20%
15%
15%
15%
10%
5%
5%
0%
1
2
3
4
5

Interpretation-:

When it comes to employee rating at mall, 40% of people had rate them the highest 3
where as 25% of people had rate them 4 and 15% of people had given 5. We can also see
the 5% people had rated 1 and 15% had rated 2.

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ONLINE V/S RETAIL SHOPPING 2016
11. Rate of experience give on shopping online out of 5.

Particular Percent
1 8%
2 6%
3 18%
4 36%
5 32%

40%
36%
35%
30% 32%

25%
20% 18%
15%
8%
10%
6%
5%
0%
1
2
3
4
5

Interpretation-:

When its come to rating for online shopping experience , 36% of people had rate them
the highest is 4, where as 32% of people had rate 5 and 18% of people had given 3. We
can also see the 8% people had rated 1 and 6% had rated 2.

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ONLINE V/S RETAIL SHOPPING 2016
12. Availability of new style and designs in

Particular Percent
Shopping mall 30%
Online shopping 66%
Street shopping 4%

Products Of New Style And Designs


Are Available At Shopping Malls

4%

30%

shopping mall
online shopping
street shopping

66%

Interpretation-:

The above pie chart show the people believe about the product of new style and
designs and there availability at online shopping. As we can see 66% people
thought online shopping and 30% Retail shopping.

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ONLINE V/S RETAIL SHOPPING 2016
13. Percentage of people shopping daily use products from shopping malls

Particular Percent
Yes 30%
No 70%

Do You Purchase Daily Use Products

30.00%

Yes
70.00% No

Interpretation-:

Above chart shows that 70% of people dont purchase daily use product from mall where
as 30% do.

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ONLINE V/S RETAIL SHOPPING 2016
14. People perception on difference between shopping mall & general store

Particular Percent
Yes 80%
NO 20%

Do You Feel Difference Between Mall And


General Store

20%

Yes
No

80%

Interpretation-:

In the above pie chart it is shown that what people really think about the difference
between shopping malls and general store. 80% of people believe yes there is a difference
where as 20% of people doesnt think so.

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ONLINE V/S RETAIL SHOPPING 2016
15. Consumers perception on quality of product are available in malls

Particular Percent
Yes 40%
NO 60%

Do You Think Highly Priced And Superior


Quality Products Are Only Available At
Shopping Malls

40.00%

60.00% Yes
NO

Interpretation-:

In the above pie chart it is shown that what people really think about the high price and
good quality product availability in malls and other shop. 60% of people believe yes
where as 40% of people dont think so.

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ONLINE V/S RETAIL SHOPPING 2016
16. Expenditure on online shopping per month

Particular Percent
100-500 24%
500-1000 22%
1001-2000 29%
5000 25%

Expenditure per month online shopping

5000
25.00%

1001-2000
29%

500-1000
22.00%

100-500
24%

0%
5%
10%
15%
20%
25%
30%

Interpretation-:

The above chart tells the expenditure of individual per month in shopping mall 24% of
them spend 100-500, 22% of sampling spend 500-1000, major i.e. 29% of samples spend
1001-2000 and 25% of samples spend 5000.

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ONLINE V/S RETAIL SHOPPING 2016
17. People recommend others to use online shopping.

Particular Percent
Yes 85%
NO 15%

Do You Recommend Others To Use Online


Shopping

15%

Yes
No
85%

Interpretation-:

Above chart shows that 85% of people recommend others to use online shopping
where as 15% doesnt support for online shopping.

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ONLINE V/S RETAIL SHOPPING 2016
18. Which mall do you prefer the most for shopping?

Particular Percent
Orion 40%
Mantri 28%
Garuda 10%
Forum 15%
Other 7%

People visits Mall

7.00%

15.00%
40%

10%

28.00%

Interpretation-:

Above chart shows that 40% of people visit Orion mall, 28% of them go to Mantri
mall , 10% of them go to Garuda mall , and rest of them i.e. 7% of them visit other
malls

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ONLINE V/S RETAIL SHOPPING 2016
19. Which is the most commonly used website for shopping?

Particular Percent
Flip kart 30%
Amazon 36%
Myntra 20%
Jabong 10%
Yepme 4%

Commonly Used Website

4%
10.00%
30%

20%

36.00%

Interpretation-:

Above chart shows number of people commonly used shopping website , 36% of samples
shop on Amazon ,30% of them use Flipkart , 20% of them shop on Myntra , 10% of them
Jabong and rest use 4% on Yepme .

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ONLINE V/S RETAIL SHOPPING 2016
20. The frequency of traditional shopping has been reduced due to online
shopping

Particular Percent
Yes 62.5%
NO 37.5%

70.00%

60.00%

50.00%

40.00%

30.00% 62.50%

20.00% 37.50%

10.00%

0.00%
Yes NO

Interpretation-:

The frequency of traditional shopping has been reduced due to online shopping 62.50%
samples believe its true and rest 37.50% dont believe.

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ONLINE V/S RETAIL SHOPPING 2016
21. Most common products purchased online.

Particular Percent
Gadgets 40%
Accessories 37%
Daily products 5%
Other products 18%

Most Common Products People Purchase


Online
45%
40%
35%
30%
25%
20% 40%
37.00%
15%
10% 18.00%
5%
5.00%
0%
Gadgets Accessories Daily Products Others Goods

Interpretation-;

The above graph shows us the most commonly purchased products online. 40% of the
samplings purchase Gadgets, 37% of them would like to purchase accessories, 5 % of
them purchase daily products and rest 18% buy other products.

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ONLINE V/S RETAIL SHOPPING 2016
22. Payment method used for online shopping?

Particular Percent
COD 50%
Cheque 5%
Debit\credit card 30%
Other 15%

Payment Method

50%
45%
40%
35%
30%
50%
25%
20%
30.00%
15%
10% 15%
5% 5%
0%
COD Cheque Dbit/Credit Card Other

Interpretation-;

The above graph shows us the payment method which sampling would like in online
shopping. 50% of the people like Cash on delivery, 30% of them would like to pay with
Debit/credit card, 5 % of them use cheque.

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ONLINE V/S RETAIL SHOPPING 2016
Retail v/s Online Author's Calculation

Preference of the product with same price both in shop and on internet

31.30%

Internet
68.70%
Shop

This Study shows that if the product has same price both in the market shop and internet
then , nearly 68.7% of population prefers buying the product over the internet as it saves
time and transportation cost added while buying the product. But, in case of shop only
31.3% prefers may be due lack of technological resources to do the purchase .Moreover,
it gives the customer a sense of inspecting the product buying.

Does online shopping is as secure as traditional shopping?

50%
40%
30%
40%
20% Sales
10% 42.70%
17.30%
0%
Yes
No
Sometimes

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ONLINE V/S RETAIL SHOPPING 2016
The Graph clearly shows what customers think about online shopping, with 42.70%
sometime think its secure sometime it is not as compared to traditional shopping.40%
customer think online shopping is as secure as traditional shopping, while 17.30 %
believe it is not secure.

Type of advertisement mostly attracts

Retail

Discountsn Ads
Sale Ads
Festivel Ads
Other

There are various reasons why people are attracted to shop offline- most prominent
reasons are discounts ads, sales ads, festive ads and other miscellaneous ads attracts
customers to shop offline. India where festivals are regarded as most auspicious
moments, ads play important role in promoting offline shopping. festive ads plays the
major role with 38% in attracting the customers to go for offline shopping, followed by
sales ads with 36% this type of ads are great events to attract customers by showing ads
to customers about sales for a limited period of time. The discount ads which covers up
23 % comes next to sales ads in attracting customer for offline shopping, While
remaining 3% are other miscellaneous ads such as off season etc. Also somewhat attracts

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ONLINE V/S RETAIL SHOPPING 2016
people.

Online

6%
28% 39.30%
Discount Ads
Sale Ads
Festivel Ads
26.70% Other

Advertisement plays a major role for making a site a brand in the market. Moreover,
advertisement attracts its customer towards them to make income. The type of
advertisement that attracts the customer towards them is discount ads which are 39.3%,
which give the customer a reason to buy their products at reasonable prices. Also the
sales ads bring more customers nearly 26.7% of total customer gets attracted to it. The
festive season is the time duration during which major of the population do their
shopping is 28% and if ads related to it is published then it brings more customer to them.

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ONLINE V/S RETAIL SHOPPING 2016
CHAPTER V

FINDINGS AND CONCLUSION

Findings on online shopping

Among the top findings of the survey, as put forth by Online Shopping, are the following:

Convenience was listed as the top reason for shopping online by 74% of the
respondents, and at the same level were purchase goods in online. This is good
news for e-tailers, as the value proposition for online shopping is clear in the
minds of shoppers.

27% of our respondents said they arent purchase of their goods online. We
believe this bodes well for e-tailers as online shopping is gaining acceptance.

95% of respondents look for products information and service information


before purchasing.

Conclusion on online shopping

After having detail study on Online Shopping one can see a great change in the
behaviour of people in many manners like their attitude, buying pattern. In earlier
times people use to do manual shopping but now as time changed people are
becoming busy and due to which technology has brought a new revolution i.e.
Online Shopping.

As we started doing survey it came to in notice that young age group people i.e.
15-30 uses or prefer online shopping because it is time and energy saving. But
middle-age group does not prefer much because they have wrong perception that
by seeing the product one can get the goods of proper quality. And even some
people does not prefer using plastic money i.e. credit cards.

In 95% of the purchases, the terms and conditions were available before entering

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into a purchase process, but the legal requirement to inform about the cooling-off
period was only met in 82% of the purchases. This means that in 18% of the
purchases, the Mystery Shopper was not informed about the legal right to
withdraw from the contract. This is a rather disturbing result. However, it was
worse to discover that the websites contained information about the legal
warranty and the rights connected to it in only 37% of the purchases. Furthermore
the information given about these rights was only correct in 80% of the cases.

In only 68% of the purchases did the trader provide information to consumers on
the process of completing the purchase. The figure is higher when it comes to
providing the consumers with the possibility to review the details of the order
before placing it. This possibility was provided for in 89% of the purchases. The
obligation to provide this information follows from the E-commerce Directive.

Findings on shopping mall

45% of respondents look for not to waste of their time.

Reason for shopping mall by 44% of the respondents, and at the same level was
purchase goods in online. This is good news for e-tailers, as the value
proposition for online shopping is clear in the minds of shoppers.

56% of our respondents said they were purchase of their goods in shopping
malls. We believe this bodes well for as shopping is gaining acceptance.

55% of respondents look for product checking and service information before
purchasing.

Conclusion on shopping mall

The share of modern retail market in India was around 5% in 2008 is very low
compared to countries in the west, where the share of modern retail to the total
retail is 75-80 percent. Therefore there is tremendous potential for the modern

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retail formats like malls to grow in India. Mall boom in India started in 2003 and
continues to thrive after a setback in 2008-09 because of recession. There are
malls which are doing well including those established in the formative years like
Ansal Plaza, Delhi. However malls which jumped into the fray without any
planning and strategy are having troubles with low footfalls and low retailer
occupancy. This research was conducted with the intention to help developers in a
capital intensive sector to avoid the mistakes of the past and benefit from being a
part of the booming retail sector.

One of the important conclusions is that there is a lack of clarity amongst mall
developers regarding positioning and image. As shown in the table 8, the focus is
on image which is a combination of functional and psychological attributes of the
mall [117]. Hence there is an attempt to provide aesthetic design, range of retail
outlets, good ambience, good security and so on. All these are important functions
of mall development and mall management. However apart from focussing on the
above, there is no effort to develop a positioning strategy which is critical for the
success of a mall. Without a positioning strategy, all the malls are similar to each
other. Hence, it can be reasoned that, such lack of differentiation is the reason
behind increasing retailer vacancy levels and reduced shopper footfall.

Another important conclusion from the study is that positioning constructs,


convenience, shopping experience, entertainment, property management and
ambience have a positive influence on shopper satisfaction. Convenience has the
highest impact on the mall, followed by shopping experience. The least positive
influence is caused by the positioning construct ambience, perhaps because it is
taken for granted as all the malls are able to provide good ambience. It could not
be proved in the study that promotions positively influence shopper satisfaction.

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CHAPTER-VI
RECOMMENDATIONS AND SUGGESTIONS

Recommendation on online shopping

They should provide complete information about their products and should make
site simple so that common people can understand how to make purchase - As in
online one purchase goods through credit cards but one can use the approach of
cash payment during delivery - One can use more animation through which they
can attract more customers - One can use the approach of credit points i.e. if one
purchase for the first time they get credit points due to which if they purchase for
the second time they can get discount of that much points. Due to which one
increase the repurchase.

Suggestions on online shopping

Security for consumers personal details.


More details about the latest products and service information
Web site design can easy to understand for consumer.
No minimum purchase for free Shipping.
Decrease the shipping misplacement.
More offers for consumers.
Delivery of goods has to deliver within 36 hours.

Recommendation on shopping mall

One can use more animation through which they can attract more customers.
They should provide complete information about their products and should make

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mall simple so that common people can understand how to make purchase.
As in shopping mall purchase of goods through credit cards but one can use the
approach of cash payment during delivery
One can use the approach of credit points i.e. if one purchase for the first time
they get credit points due to which if they purchase for the second time they can
get discount of that much points. Due to which one increase the repurchase.

Suggestions on shopping mall

More products and services information for consumers.


Free parking for consumers vehicles.
Events for festivals.
Proper emergency exit for people.
Lotteries for who comes to shopping mall regularly.

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CHAPTER-7

LEARNING OUTCOME

By this internship project I have learnt and gain knowledge about the way that the people
think and also what type services they like and more. In this particular project that is
online shopping versus mall shopping, I came to the conclusion that most of the people
prefer online shopping, because it consumes less time and the people have provided with
lots of variety of goods and services and also different brands in same products.

But the people also like to visit malls for window shopping, entertainment, to eat, drink
and other stuff like that. Most of the people visit malls to hangout with friends and
families and also they like to play games and watch movies in malls.

In the view of shopping the majority of people prefer online shopping because the people
are like upgrade themselves in using technology, and use the benefits they get. And
remaining people prefer mall shopping because they cant touch or trail the product
before they buy it and also they care about quality of product before they buy it.

The majority of people who use online shopping are youth, because they dont like to go
to malls and spend the time in trailing the product before they buy. But in online
shopping they read or look at the reviews and ratings which had given by experts or the
users of the product and then they decide to buy that particular product.

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Bibliography

http://www.ijcsmc.com/docs/papers/June2013/V2I6201328.pdf

https://en.wikipedia.org/wiki/Online_shopping

https://en.wikipedia.org/wiki/Shopping_mall

http://www.wsj.com/articles/survey-shows-rapid-growth-in-online-shopping-1465358582

http://www.shoppingnavigator.co.uk/benefits-of-online-shopping.php

http://www.differencebetween.net/business/product-services/differences-between-online-
and-traditional-shopping/

Wikipedia
Slide share
Shodhganga
Google

Annexure

1. What method of shopping do you prefer?

Online shopping Mall shopping

2. Do you visit shopping malls?

Very often often rarely No

3. Have you ever used online shopping?

Yes No

4. When do you prefer going to shopping malls?

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Week days weekends holidays occasionally

5. How often do you have online shopping?

Weekly monthly occasionally

6. How much do you normally spend in shopping malls in a single shopping?

Less than 500 between 500-1000 between 1001-2000 more than 5000

7. Do you consider advertisements as source of information regarding shopping malls?

Yes No

8. How would you rate your experience in shopping malls out of 5?

1 2 3 4 5

9. How would you rate your experience shopping online out of 5?

1 2 3 4 5

10. Where do you think products of new style and designs are available at?

Shopping malls online shopping Street shopping

11. Do you purchase daily use products from shopping malls only?

Yes No

12. Do you feel any type of difference between shopping mall and general store?

Yes No

13. Do you think highly priced and superior quality products are only available at
shopping malls?

Yes No

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14. How much do you usually spend on online shopping per month?

Rs.100-1000 Rs.1001-5000 Rs. more than 5000

15. Do you recommend others to use online shopping?

Yes No

16. Which mall do you prefer the most for shopping?

Orion Mantri Garuda Forum Others

17. Which is the most commonly used website for shopping?

Flipkart Amazon Myntra jabong yepme

18. Have you reduced the frequency of traditional / mall shopping due to online
shopping?

Yes No

19. What are the most common products you purchase through online?

Gadgets accessories daily products other goods

20. What would be your best payment method if you buy online?

COD Cheque Debit/credit card others

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