1.

1 INTRODUCTION

The increase in technology provides good opportunities to the seller to reach the customer in
much faster, easier and in an 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 customer‟s 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. The focus of the study is on the consumer‟s choice to shop on internet and
at the traditional stores at the information gaining period. However online shopping is easier
for the people and less price than the offline shopping.

In the simplest terms, retail and E-commerce seem to be very similar: retail and E-commerce
both refer to what happens when a product from a business is sold to an individual consumer
for their own use, except one of them is done exclusively through the Internet. Retail can be
conducted a number of ways: in a brick and mortar establishment like a shopping mall or
grocery store, online, person-to-person sales, or even direct mail. E-commerce, on the other
hand, refers to commercial transactions that are primarily made electronically through the
Internet. There is something known as “retail E-commerce sales,” which are the sale of goods
and services where the business and transaction take place of the Internet either through an
extranet, Electronic Data Interchange (EDI), or similar online systems.

Today, many merchants fall somewhere between brick and mortar retail and E-commerce.
Traditional retail or the shopping experience where you go out to a certain establishment to
purchase a good or service is certainly alive and well. This most basic form of shopping will
likely always exist. However, many stores exist both as a brick and mortar storefront as well
as an online shop. Take for instance stores like Target, Wal-Mart, or Forever 21. Each of
these places can be visited and shopped with via their online websites or you can take a trip to
the nearest store and walk around the actual establishment. While online shopping is popular
and the numbers have steadily continued to increase over time, this does not mean that brick
and mortar stores like shopping malls, groceries, and convenience stores are going obsolete.

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On the contrary, both mediums are still thriving. It‟s simply that the world‟s shopping habits
have changed, leading to an ever-changing future as tech continues to evolve.

The biggest impact e-commerce has had on consumer shopping habits is that consumers can
shop from anywhere, anytime. They no longer have to wait until store hours to make a
purchase. While the ability to research and shop online has been around for a while, mobile
has taken E-commerce to the next level because shoppers can use the device at any point
during the sales cycle.

The rise of mobile shopping has blurred the line between the physical store and the online
experience. Rather than having two distinct channels, both channels can be used in
conjunction to optimize the shopping experience. Though some of the legacy brick-and-
mortar brands have had trouble keeping up with the growth of E-commerce, it isn‟t the kiss
of death to physical stores. In fact, big companies like Amazon and Alibaba have opened up
brick-and-mortar locations.

The rise of internet companies in India started in the mid-1990s. The first Indian internet
companies mainly featured online classifieds, matrimonial and job portals. The low
penetration of internet, lack of awareness and lack of development and confidence in online
payment systems were reasons for Indian internet companies not actively engaging in E-
commerce. It was only in the mid-2000s, after the dot com bubble burst that e-commerce
industry in India started to take off. The first e-commerce services available were mainly
offered in the travel industry. With the proliferation of low cost carrier airlines, ticket offering

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started to be made online. Even today travel booking websites hold a majority share of the
Indian E-commerce space. A couple of years later, the online retail industry started taking
shape and it is rapidly growing today as brick and mortar stores are being replaced by click-
only models or brick cum click models of business.

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 1.2 INDUSTRY PROFILE

E-commerce

Essentially, E-commerce (or electronic commerce) is the buying and selling of goods (or
services) on the internet. From mobile shopping to online payment encryption and beyond, E-
commerce encompasses a wide variety of data, systems, and tools for both online buyers and
sellers. Most businesses with an E-commerce presence use an E-commerce store and/or an E-
commerce platform to conduct both online marketing and sales activities and to oversee
logistics and fulfillment.

Types of E-commerce

 Business-to-Consumer (B2C)
B2C E-commerce encompasses transactions made between a business and a
consumer. This is one of the most widely used sales models in the E-commerce
context. When you buy shoes from an online shoe retailer, it is a business-to-
consumer transaction.
 Business-to-Business (B2B)
Unlike B2C, B2B E-commerce relates to sales made between businesses, such as a
manufacturer and a wholesaler or retailer. This type of E-commerce is not consumer-
facing and happens only between business entities. Most often, business-to-business

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 sales focus on raw materials or products that are repackaged or combined before
being sold to customers.
 Business-to-Business (B2B)
Unlike B2C, B2B E-commerce relates to sales made between businesses, such as a
manufacturer and a wholesaler or retailer. This type of E-commerce is not consumer-
facing and happens only between business entities. Most often, business-to-business
sales focus on raw materials or products that are repackaged or combined before
being sold to customers.
 Consumer-to-Business (C2B)
C2B reverses the traditional E-commerce model (and is what we commonly see in
crowdfunding projects)
C2B means Individual consumers make their products or services available for
business buyers. An example of this would be a business model like iStockPhoto, in
which stock photos are available online for purchase directly from different
photographers.
 Business-to-Administration (B2A)
This model covers the transactions made between online businesses and
administrations. An example would be the products and services related to legal
documents, social security, etc.
 Consumer-to-Administration (C2A)
Same idea here, but with consumers selling online products or services to an
administration. C2A might include things like online consulting for education, online
tax preparation, etc. Both B2A and C2A are focused on increased efficiency within
the government via the support of information technology.

History of E-commerce

It was initially introduced about 40 years ago in its earliest form. Since then, electronic
commerce has helped countless businesses grow with the help of new technologies,
improvements in internet connectivity, and widespread consumer and business adoption.

 CompuServe is founded – 1969

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 Founded by electrical engineer students Dr. John R. Goltz and Jeffrey Wilkins in
1969, early CompuServe technology was built utilizing a dial-up connection. In the
1980s, CompuServe introduced some of the earliest forms of email and internet
connectivity to the public and went on to dominate the E-commerce landscape
through the mid-1990s.
 Michael Aldrich invents electronic shopping - 1979
English inventor Michael Aldrich introduced electronic shopping in 1979, which
operated by connecting a modified TV to a transaction-processing computer via
telephone line. This made it possible for closed information systems to be opened and
shared by outside parties for secure data transmission – and the technology became
the foundation upon which modern E-commerce was built.

 Boston Computer Exchange launches – 1982

When Boston Computer Exchange launched in 1982, it was the world‟s first E-
commerce company. Its primary function was to serve as an online market for people
interested in selling their used computers.
 Book Stacks Unlimited launches as first online book marketplace - 1992
Charles M. Stack introduced Book Stacks Unlimited as an online bookstore in 1992 –
three full years before Jeff Bezos introduced Amazon. Originally the company used
the dial-up bulletin board format, but in 1994 the site switched to the internet and
operated from the Books.com domain.
 Netscape Navigator launches as a web browser - 1994
Marc Andreessen and Jim Clark co-created Netscape Navigator as a web browsing
tool, and formally announced its introduction in October of 1994. During the 1990s,
Netscape Navigator became the primarily used web browser on the Windows
platform before the rise of modern giants like Google.
 Amazon and eBay launch - 1995
Jeff Bezos introduced Amazon in 1995 primarily as an E-commerce platform for
books. That same year, Pierre Omidyar introduced AuctionWeb, which would later
become what we know today as eBay. Since then, both have become massive E-
commerce selling platforms that enable consumers to sell online to audiences around
the globe.

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 PayPal launches as E-commerce payment system - 1998
Originally introduced as Confinity by founders Max Levhin, Peter Thiel, Like Nosek
and Ken Howery, PayPal made its appearance on the E-commerce stage in late 1998
as a money transfer tool. By 2000, it would merge with Elon Musk‟s online banking
company and begin its rise to fame and popularity.
 Alibaba launches -1999
Alibaba Online launched in 1999 as an online marketplace with more than $25
million in funding. By 2001 the company was profitable. It went on to turn into a
major B2B, C2C, and B2C platform that‟s still widely used today.
 Google introduces Google AdWords as an online advertising tool - 2000
Google Adwords was introduced in 2000 as a way for E-commerce businesses to
advertise to people using the Google search tool. With the help of short text ad copy
and display URLs, online retailers began using the tool in a pay-per-click (PPC)
context.
 Amazon introduces Amazon Prime membership - 2005
Amazon introduced Amazon Prime in 2005 as a way for customers to get free two-
day shipping for a flat annual fee. The membership also came to include other perks
like discounted one-day shipping and later access to streaming services like Amazon
Video and members-only events like “Prime Day.” This strategic move helped boost
customer loyalty and incentivize repeat purchases. Today, free shipping and speed of
delivery are the most common requests from online consumers.
 Square launches - 2009
Square was founded in 2009 by Jack Dorsey and Jim McKelvey. The first Square app
and service launched in 2010. Square allowed offline retailers to accept debit and
credit cards in their brick-and-mortars and absolutely anywhere for the first time ever.
The idea occurred to Dorsey when in 2009 when McKelvey (a St. Louis friend of
Dorsey at the time) was unable to complete a $2,000 sale of his glass faucets and
fittings because he could not accept credit cards.
 Square launches – 2010
Square was founded in 2009 by Jack Dorsey and Jim McKelvey. The first Square app
and service launched in 2010. Square allowed offline retailers to accept debit and
credit cards in their brick-and-mortars and absolutely anywhere for the first time ever.
The idea occurred to Dorsey when in 2009 when McKelvey (a St. Louis friend of

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 Dorsey at the time) was unable to complete a $2,000 sale of his glass faucets and
fittings because he could not accept credit cards.
 Google Wallet introduced as digital payment method - 2011
Google Wallet was introduced in 2011 as a peer-to-peer payment service that enabled
individuals to send and receive money from a mobile device or desktop computer.
By linking the digital wallet to a debit card or bank account, users can pay for
products or services via these devices. Today, Google Wallet has joined with Android
Pay for what is now known as Google Pay.
 Apple Pay introduced as mobile payment method - 2014
As online shoppers began using their mobile devices more frequently, Apple
introduced Apple Pay as a mobile payment and digital wallet tool that allowed users
to pay for products or services with an Apple device.
 Shoppable Instagram is introduced - 2017
Instagram Shopping launched in 2017 first with E-commerce partner BigCommerce.
Since then, the service has expanded to additional E-commerce platforms and allows
Instagram users to immediately click an item, and go to that product‟s product page
for purchase.
 Cyber Monday sales exceed $6.5B -2017
In 2017, E-commerce growth breaks a new record with online sales breaking $6.5
billion on Cyber Monday – a 17% increase from the year before. Mobile sales also
break records with an excess of $2 billion in sales made via mobile devices.

ADVANTAGES OF E-COMMERCE

 Save Time – Do you have the specific list that you want to buy? With just a couple of
clicks of the mouse, you can purchase your shopping orders and instantly move to
other important things, which can save time.
 Save Energy – Admit it, it is tiresome to shop from one location and transfer to
another location. What is worse is that there are no available stocks for the
merchandise you want to buy. In online shopping, you do not need to waste your
precious energy when buying.
 Comparison of Prices – The advanced innovation of search engine allows you to
easily check prices and compare with just a few clicks. It is very straightforward to

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 conduct price comparisons from one online shopping website to another. This gives
you the freedom to determine which online store offers the most affordable item you
are going to buy.
 24/7 Availability – Online shopping stores are open round the clock of 24 x 7, 7 days
a week and 365 days. It is very rare to find any conventional retail stores that are open
24 x 7. The availability of online stores give you the freedom to shop at your own
pace and convenience.
 Hate Waiting in Lines – When buying items online, there are no long lines you have
to endure, just to buy your merchandise. The idea of shopping online is cutting down
those bad habits of standing in a long line and just waiting. Every online store is
designed with unique individual ordering features to purchase the item.
 Easy to Search Merchandise You Want to Buy – You are able to look for specific
merchandise that includes model number, style, size, and color that you want to
purchase. In addition, it is easy to determine whether the products are available or out
of stock.

DISADVANTAGES OF E-COMMERCE

 Personally Check the Item – If you are one of those shoppers who want to touch,
see, and test the product personally, at online shopping, you are not able to do so.
Online stores are only showing product description and photos of the merchandise,
which can be a disadvantage for many online shoppers.
 Returns Can Be Costly - It's essential to be aware of the return policy for any E-
commerce retailer you are considering doing business with. The majority of sites do
not pay return shipping if you have to send something back, so it often costs you more
money than you planned to spend if you need to exchange an item.
 Diminished Instant Satisfaction – Unlike buying at retail stores, you are able to use
the product instantly after you buy it, which can be satisfying. However, online
shopping requires patience to wait for the item to arrive at your door step about 2 to 3
days or even longer depending on the location you've ordered it from.
 Shipping Adds to Cost - What looks like a bargain might not be such a good deal
when the shipping and handling charges are tallied and added to the total? Make sure
that you look closely at exactly how much you are likely to need to pay to have your

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 merchandise delivered to your door - or to the person you are purchasing it for -
before finalizing your purchase decision.
 Dealing with Unknown Vendor - When you are shopping online, unless you are
purchasing from a well-known e-seller like Amazon or the online arm of a department
store. You really don't know who you are doing business with. Anybody can open an
online store - especially with products that are easy to access through a drop-shopping
company - but not everyone is honest and reputable.
 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 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.

OFFLINE SHOPPING/ RETAILERS

An offline store that sells smaller quantities of products or services to the public. A business
that operates as a retail outlet will typically buy goods directly from manufacturers or
wholesale suppliers at a volume discount and will then mark them up in price for sale to end
consumers. Offline shopping as simply known as retailer / retail store.

A retailer purchases goods or products in large quantities from manufacturers directly or

through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing
can be done in either fixed locations like stores or markets, door-to-door or by delivery.

ADVANTAGES OF OFFLINE SHOPPING

 Information - What generally happens is that the information provided by a

shopkeeper isn‟t correct. Also this information doesn‟t always suit our needs. And we
buy products according to what they say when we ourselves don‟t have adequate
knowledge about the products. Such purchases are based on goodwill when we
happen to know the shopkeepers.
 Authenticity - Offline shopping is more authentic than online shopping. While
buying the product we can feel the texture of it and know what it‟s like. We exactly
know what we are buying while buying anything offline. But in online shopping, we
don‟t always know what exactly we are buying. This is because what we see on the
websites is not always what we buy when the product reaches us.

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  Taste and preference - The taste and preferences of the customer change from time
to time. While buying any product from a store we have the flexibility and the choice
to try out outfits. But while buying any product from a website we don‟t have this
facility. Therefore, buying offline caters more to the changing taste and preferences of
the customers.
 Bargaining Power - In offline store a customer can do physical bargaining to the
seller unlike shopping online. In online shopping a customer cannot do bargaining as
the price of the product is fixed. Some of the customer purchased products depending
upon bargaining so they do not go for online shopping as they feel shopping online is
more costly than the market.
 Product Delivery – The offline store can deliver the product at the time of purchase
of item if it has in stock. Delivery is lesser in the case of offline stores.
 Tangibility of the product - At the store the customer gets to touch and feel the
pro1duct they purchase before buying which help the customer to take the decision to
buy the product or not whether the product will suit the customer need or not.
Whether, we can and see feel a product is also a reason which determines whether a
person‟s wants to go for shopping or not.

DISADVANTAGES OF OFFLINE SHOPPING

 Less number of choices - There are limited numbers of choices when it comes to
offline shopping. The numbers of varieties are limited. The ranges of products
available in the shops are limited. Sometimes, the stocks are old and are up for
discount and sale. Basically in offline or any shop we get less numbers of choices as it
consists of manual work.
 Time consuming - It takes a lot of time to go shopping to a store. Distance from
home or workplace to the store is time consuming. It is also time consuming while
trying out the outfits in a store or even going through other products. In off-line
shopping customer move one place to another and one shop to another in search of
their desired product.
 Lesser Reviews – In the case offline shopping we didn‟t have more reviews about the
product. We need find out the reviews but we can‟t collect more at a time. Online give
more buyer reviews under one head.

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  High Cost – More cases offline stores get higher price for their product because of
their cost. They have more costs like Rent, Salary to staff, Tax amounts...etc. It will
lead to increase the price of the product.

Indian Mobile Industry

The third largest Smartphone market in the world currently, India is far from being saturated.
With more than 185 million connections as of now and another half a billion to be added by
2020, the sheer scale of the market is attracting domestic and foreign players like and in the
recent past The industry has witnessed huge inclination of mobile handsets manufacturers to
manufacture phones in India.
The government in the recent time has shown explicit interest in the “Digital India” and
“Make in India” plans and mobile manufacturers are to play an important part in that. The
government aims at using the mobile penetration to contribute to the economic and social
development in India by delivering digital inclusion to the still unconnected population,
financial inclusion to the unbanked population and to deliver innovative apps and services.
The recent plan of the government to launch a mobile application (app) which would serve as
the single point access to all the governmental services is one prime example.

Low cost production due to cheap resource, proximity to markets and the huge market
potential are the drivers to this inclination. As of March 2016, India has already taken the
second position in the list of biggest markets globally after China, overtaking USA. The
mobile ecosystem directly provided employment to 2.4 million people in India in 2015, both
in the formal and informal sector. These statistics although are for the while mobile
ecosystem and not only for handsets. With the current penetration of around 80% for mobile
phones, India is set to achieve 94% penetration by the year 2020. In addition, the Smartphone
segment is fast overpowering the feature phone segment and is set to grow from 148 million
to 690 million.

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TOP FIVE LEADING E-COMMERCE SITES

Ranking Websites Service offered

1 Flipkart It is a mega online store which offers
wide range of products including
clothes, books and Electronics.

2 EBay India It has unique business concept where

a seller can sell the product Directly
to buyer.

3 Snap deal It is online marketing and shopping

company which has existence in
more than 400 cities in India

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4 Jabbong It has been a front runner in online
shopping websites in India and offer
attractive discounts, promotional
and deals for Indian customers on
many fashion, home
décor and lifestyle variants

5 Myntra It retails many famous national and

international brands like Puma,
Adidas, John miller. etc

IMPACT OF E-COMMERCE ON MARKETS AND RETAILERS

Impact on Markets

 Promotion of Products
Through E-commerce product can be promote in an interesting way and with lots of
information directly to the customers which reduces the cost of offline promotion
because internet can interact a lot of customers and save amount of cost of
advertisements can be used in different areas of business.
 Customer Service
Customer service can be enhanced because customers can search detailed information
about product or marketplace which offers the product and can compare the prices of
different market places.
 Brand Image
New business men can establish their brands on internet by using attractive images at
an affordable price.
 Advertisement

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 Traditionally the advertisements were one- way to attract customers and let them
know about the new product or market place but now through e-commerce
advertisements are two-way in which customer can browse the market place and
product, can compare the prices and also can ask questions to the online retailers.
 Customization
Customized products can be made available according to the needs of customers. It
will make a good place of business in market and new customers will be attracted.
 Order Making Process
Traditionally to take orders from customers, intermediaries are used which takes a lot
of time and expenses but with E-commerce the order taking is so easy which reduces
a lot of time and expenses and they can make more sales.
 Customer Value
Traditionally attaining a big value from the customers was the main interest. Only
customers were attracted and it was the biggest target but now sellers make long term
relationships with customers to attain long term value by offering them special
discounts.

Impact on Retailers

 Turnover
Due to e-commerce the turnover of offline retailers has reduced which is a warning
signal for the enterprise.
 Profit Margin
On the arrival of online shops in the market offline retailers are suffering from
pricing. To survive in market, they have to sell product in law prices which covers
only their operational costs and they do not get any profit margin.
 Discount
Offline retailers sell their products at discounted rates because online stores offer
heavy discount to the customers and to stay in the market and to attract the customers
they have to sell the products at discounts.
 Variety of Stocks
Variety of goods is offered by online stores to which offline retailers cannot compete
because at the end of year the left over stock can give a huge loss to the retailer.
 Customer Services

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 Offline retailers are providing different services at which online stores fails. Repair
and goods of services, home delivery and after sales services also like online shops.
 Window Shopping
Low prices offered by online stores leads to window shopping by customers at
physical stores and they buy product online. Due to which they have prospective
customer‟s more than actual customers.
 Advertisement
Offline retailers focus only on the advertisements so that they can attract customers
and increase their sales. They do not leave a single chance to advertise.

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 1.3 COMPANY PROFILE

A dealer of mobiles and tablets, Lokha in Thamarassery City has been providing an
extraordinary service to the citizens ever since its establishment in 2017. Making available a
wide range of mobiles and tablets of all renowned national and international brands such as
OPPO, Apple, Gionee, Sony, Samsung, Vivo, XOLO, Google, Honor, HTC, Huawei, etc.,
this is surely a one-stop shop for the young and the old. Connecting people, this mobile store
ensures to offer its products at the best prices and offers thus helping the buyers to buy their
favourite gadget at cheap. High on quality, all its products carry the warranty of their
respective brands making them reliable for purchase. Customers have an option to choose
from vast range of products under its roof leaving an almost endless choice for them. The
shop stands located in a very prominent location of the city, on the premises of , Bank Road.
Finding the showroom is easy owing to its favourable seat Bank Road. Undoubtedly it is one
of the best Mobile Phone Dealers in Thamarssery City, Kozhikode.

Over the years, mobile phones became smaller, thinner, lighter, more powerful and
unbelievably „smart‟. Their glasses have become virtually unbreakable. Dust and water don‟t
affect them. Their cameras became increasingly sophisticated and their memory as well as
processing power became exceptionally fast. With more computing power in our hands that
massive computers of a generation ago, we can now conduct business, send emails,
communicate and be entertained in countless ways. Innovative applications enable us to do
tasks that were unimaginable just a few years ago. Henceforth, mobile technologies will

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become all that and much more, relying on artificial intelligence and nano-technologies to
become even more ubiquitous part of our lives. Loka digital will ever be part of the amazing
journey into the future.

Values of the organization

 Transparency and integrity in all our dealings.

 Delight our customers with our services.

 Committed and answerable to our customer at all times.

 Deal in products and services of high quality and reliability.

 Best after-sales service to every customer than ever before.

 Support, strengthen and involve in social service initiatives.

 Committed to environmental well-being and good practices.

VISION

To be a globally respected wealth creator with an emphasis on customer care and a culture of
good corporate governance.

MISSION

To create and nurture a world-class, high performance environment aimed at delighting our
customers.

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 1.4 OBJECTIVES OF THE STUDY

Primary Objective

 To find out how the e-commerce affecting the retail mobile sellers.

Secondary Objective

 To study the changes made in business pattern to achieve customer satisfaction.

 To analyse the efficiency of after sale service.

 To analyse the online buying behavior of customers.

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 1.5 SCOPE OF THE STUDY

Scope of the study is to discuss about how the e-commerce was affecting to the retail mobile
sellers. E-commerce has bloomed over the years and is one of the fastest-growing domains in
the online world. Though it took some time for this to be accepted by the end-users, today we
are at a point where the majority of the people love to shop online and also analyze the
buying behavior of customers. This study tries to analyze how the customers will choose the
channel of the shopping either the way of e-commerce or traditional.

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 1.6 RESEARCH METHODOLOGY

Research is a process of steps used to collect and analyze information to increase our
understanding of a topic or issue". It consists of three steps: pose a question, collect data to
answer the question, and present an answer to the question.

Research methodology is a way to solve the research problem. The various steps that are
generally adopted by a researcher in studying his research problem along with the logic
behind them are explained. This entire means that it is necessary for the research to design his
methodology for his problem as the same, many differ from problem to problem. Research is
a common practice refers to the search of knowledge. In this study descriptive research is
used.

RESEARCH DESIGN

A research design is plan that specifies how data should be collected and analysed. In this
study descriptive research is used.

POPULATION

A population is the aggregate of the units study in any field of enquiring. It is a collection of
individuals or of their values which can be numerically specified.

DATA COLLECTION

 Primary data

 Secondary data

PRIMARY DATA

Primary data are those which are collected afresh and for the first time and thus happen to be
original in character. It is the back bone of any study. It is obtained from respondents with the
help of widely used and well known method of survey, through a well-structured
questionnaire and interview.

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SECONDARY DATA

Secondary data are those which have already been collected by someone else and which have
already been passed through the statistical process. In this case one is not confronted with the
problems that are usually associated with the collection of original data.

Secondary data either is published data or unpublished data. Secondary data is collected from
govt. publications, journals, magazines, financial records, websites and annual publications of
the company. In this study secondary source used is websites.

TOOLS USED FOR DATA ANALYSIS

Researcher used the analysis with help of MS Excel and MS Word. The collected data was
analyzed by using percentage analysis method with the help of questionnaire, graphs and
tables.

SAMPLE SIZE

Sample size used in this project is 50 respondents.

SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio in making comparison between two or more data
and to describe the relationship. Percentage can also be used to compare the related terms the
distribution of two or more sources of data.

Number of respondents

Percentage = X 100

Total no.of respondents

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 1.7 LIMITATIONS OF THE STUDY

 Due to this sample size taken is 50. It will affect the accuracy of data.

 Finding of study are based on given data.

 Some of the respondents were reluctant to share the information with the researcher.

 Most of the respondent was busy and the data supplied by them may not be exact and
accurate.

 The time required to collect information was very less.

 Some of the customers did not take the questionnaire seriously; they did not fill it
with care and accuracy.

 The recommendations are subjected to time and cost constraint

 Sampling has its own limitations, which would have resulted in minor errors

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 2.1 REVIEW OF LITRATURE

Internet shopping is still in evolutionary stage in India and very few studies have undertaken
research exploring customer acceptance and diffusion of internet shopping in India. Although
there has been a dearth of internet shopping related studies in Indian context, theoretical
exploration can be based on various international studies carried out in other countries.

The online consumer market place is growing at an exponential rate. At the same time,
technology has enhanced the capacity of online companies to collect, store, maintains,
transfer and analyze vast amount of data from and about the consumer who visit their web
sites. This increase in the collection and use of data has raised public awareness and
consumer concern about online privacy. Number of studies has been done in this field some
of which are discussed below: Several past studies revealed the difference of shopping in the
traditional shopping channel and online shopping channels.

Arvind Panagariya (2000) reported that access to e-commerce, which in the WTO pariance
often means access to e-exports, has two components that must be distinguished sharply.
Access to Internet services and access to services that can be traded electronically. The
former deals with to access to Internet infrastructure while the latter relates to specific
commitments in electronically tradable services. E-commerce offers unprecedented
opportunities to both developing and developed countries. In the short run, the gain are likely
to be concentrated in developed countries have more to benefit. This is because, in the short
run, developing countries lack the infrastructure necessary to take full advantage of Internet.
For many countries, especially developing ones in these countries, most consumers do not
have computers or Internet access. A likely scenario, therefore, is one in which a handful of
independent entrepreneurs will receive the product by Internet, convert it into physical form
such as CDs and sell the latter to consumers. But this activity may itself be costly using up
real resources. Buy in the long run. They can Leapfrog, skipping some of the stages in the
development of Information Technology through which developed countries have had to
pass.

Elizabeth Goldsmith and Sue L.T. McGregor (2000) analyzed the impact of e-commerce
on consumers, public policy, business and education. A discussion of public policy
initiatives, research questions and ideas for future research are given.

24
Diana Oblinger (2001) reported that one is that education and continuous learning have
become so vital in all societies that the demands for distance and open learning will increase.
As the availability of the Internet expands as computing devices become more affordable and
a energy requirements and form factors shrink, elearning will become more popular. In
addition to the importance of lifelong learning, distance education and e-learning will grow in
popularity because convenience and flexibility are more important decision criteria than ever
before. E-learning will become widely accepted because exposure to the Internet and e-
learning often begins in the primary grades, thus making more students familiar and
comfortable with online learning. In fact, for many countries, distance education has been the
most viable solution for providing education to hundreds of thousands of students.

Jackie Gilbert Bette Ann Stead (2001) reviewed the incredible growth of electronic
commerce (e-commerce) and presented ethical issues that have emerged. Security concerns,
spamming, websites that do not carry an “advertising” label, cyber squatters, online
marketing to children, conflicts of interest, manufacturers competing with intermediaries
online and “dinosaurs” were discussed.

Patric Barwise (2001) reported that probability 99 % of e-commerce today is done using
PCs either desktops or Laptops. For B2B e-commerce this is unlikely to change for B2C e-
commerce however, things will be more complex, there will be wider range of relevant media
including interactive digital TV and a range of mobile and wireless service there will be huge
difference between different consumers ownership of equipment and access technology.
Some will have broadband access and others have no digital communication at all.

Andrew D. Mitchell (2001) examined the key issues that electronic commerce poses for
Global trade, using as a starting point the General Agreement on trade in services (GATS),
the World Trade Organization (WTO) agreement most relevant to e-commerce.

Nir B. Kshetri (2001) this paper attempts to identified and synthesized the available
evidence on predictors of magnitude, global distribution and forms of e-commerce. The
analysis indicated that the twin forces of globalization and major revolutions in ICT are
fuelling the rapid growth of global e-commerce.

Prithviraj Dasgupta and Kasturi Sengupta (2002) reported that the recent growth of
Internet Infrastructure and Introduction of economic reforms in the Insurance sector have
opened up the monopolistic Indian Insurance market to competition from foreign alliances.

25
Although the focus of e-commerce has been mainly on business to consumer (B2C)
applications the emphasis is now shifting towards business to business (B2B)applications.
The Insurance Industry provides an appropriate model that combines both B2C and B2B
applications.

James Christopher (2004) examined all the best elements of E-commerce does not
guarantee consumers will visit or remain loyal. But looking at what they want and their
satisfaction levels of other well established e-tailors such as Amazon and eBay who have
already invested significant resources to understand what consumer‟s needs, wants and
desires. Perhaps it would be useful to emulate these established pure players since they have
been and continue to be highly successful as retain high marks for customer satisfaction.

Werther H and Ricci F.(2004) Reported that e-commerce in travel and tourism industries
are continuously increasing despite of tough economic problems. This industry is adopting
application of B2B and B2C. This industry has changed the ways of do business for
traditional ways to modern way i.e. e-commerce via web and other online transaction
software. Web is changing the behavior of consumers are well as they are becoming less
loyal, take less time for choosing and consuming the tourism products. As this industry is
service oriented business industry, companies are implementing various new techniques to
satisfy consumer needs and providing information to them through web and different value
generating strategies like value extraction, value capture, value addition value creation.
Travel and tourism is information based service oriented business and the product is termed
as “confidence good” and prior comprehensive Assessment of quality is impossible however
due to use of e-commerce feedbacks from consumers can be obtained in short span of time
and this services can be enhanced accordingly. Due to adoption of e-commerce in travel and
tourism industry consumers are becoming more powerful players as they can choose their
destination and sites in few minutes whereas travel agents, travel websites etc see diminishing
power in sales however they are providing new market functionality using new technologies
to attract more consumers. Many tour operator, travel agents online travel agents are using
these strategy to attract more consumers however using more high-tech technologies needs
huge investments need more high skill human resource etc.

Kim (2004) examined there are main two factors for conducting successful e-commerce
strategy which are security of the e-commerce system and user friendly web interface.
Security means not only securing own system but also providing security assurance to users

26
who are using the sites or online software user friendly web interface give consumer trust and
it‟s easy to convenience for customers. Beside these factors other factors are also essential to
succeed which are top management support, IT infrastructure and customer acceptance. Top
management support plays vital role as per Kim as they are the decision makers and their
support and decision will direct the company to use the strategy. Further he also explained
that with-out proper IT structure and skilled human resources, e-commerce strategy will fail.
One of the factors he explained is customer acceptance; customer acceptance means the way
customer accepts the web or online software of the company and it should have very rich
contents and very easy to use these factors will decide whether business will get more
customers.

Young Jan Choi 1, Chung Suk Suh (2005) reported that the economic consequences of the
death of geographical distance due to the emergence of e-marketplaces. It has shown that
overcoming spatial barriers by means of e-marketplaces lowers the price level. Since e-
marketplaces achieve economies of scale by aggregating dispersed demands, they allow the
company to have more varieties that did not exist before their emergence.

Zabihollah Rezaee, Kenneth R. Lambert and W. Ken Harmon (2006) reported that the
rationale for infusion of e-commerce education into all business courses is that technological
developments are significantly affecting all aspects of today‟s business. An E-commerce
dimension can be added to the business curriculum by integrating e-commerce topics into
existing upper-level business courses. Students would be introduced to E-commerce
education and topics covered a variety of business courses in different disciplines eg.
accounting, economics, finance, marketing, management, management information systems.
To help assure that all related business courses in all disciplines such as eg. accounting,
finance, economics, marketing, management, information systems pay proper attention tothe
critical aspects of e-commerce, certain e-commerce topics should be integrated into existing
business courses .

Mauricio S. Featherman, Joseph S. Valacich & John D. Wells (2006) reported that as
companies oracle to digitize physical based service processes repackaging them as online e-
services, it becomes increasingly important to understand how consumers perceive the
digitized e-service alternative. E-service replacements may seem unfamiliar artificial and
non-authentic in comparison to traditional service processing methods. Consumers may
believe that new Internet - based processing methods expose them to new potential risks the

27
dangers of online fraud identity theft and phishing Swindles means schemes to steal
confidential information using spoofed websites, have become common place and are likely
to cause alarm and fear within consumers.

Law and Bai (2008) on their research paper mentioned there are two types of customers who
use travel companies websites, those are buyers and borrowers. Buyers are those people who
actually intend to buy the services whereas browsers are those who intend to surf and get
information only. Those browsers can be converted to buyers by improving the website
contents making it attractive, provided very rich in contents and very user friendly to use. As
more and more travel companies are applying these strategies, the increase in percentage of
website buyers and browsers are also increasing day by day, this is due to adaption of e-
commerce technology in travel and tourism industry.

Iyer and Eastmen (2014):- found that the population of senior who are more literate, more
knowledgeable and who are more aware of the technology and those who have a positive
behavior towards online shopping and internet are more into online shopping. But the
population of senior who are less aware of the internet and the shopping sites are less
involved in the shopping sites because they do not have a positive attitude towards online
shopping rather they are much more interested in offline shopping and the seniors who are
more involved in the internet uses more online sites for purchasing the goods over the
internet. The senior which have more knowledge about the internet and the shopping sites
they compares both the shopping i.e. online and offline shopping for their purchasing of
goods. However their knowledge and the use of internet by them have no connection with
their age and their satisfaction level while purchasing online.

Danaher (2003):- focused on the loyalty of the 100 brands over the online shopping and
offline shopping of 19 product of the grocery. They compared the grocery items of both the
shopping with starting model which is a new segmented of Dirichlet model, this model has
very dominant features which gives the exact classes for the brand choice and also gives the
real model for the purchasing behavior. The outcome of the study revealed that the reality of
the high brands by the high market shares bought the online shopping much greater than the
expected. But in case of the small share brand it is just reversed. However in the traditional
shopping the expectations and the observations is not at all links to the brand share.

Aron M Levin, Irwin P Lewin (2005):- For the study two samples of size 199 were used
from a large mid-western American University and an Online survey panel. The study found

28
that the preferences for shopping online or offline were shown to vary across products,
Consumers, and stages of the shopping experience. When attributes such as large selection
and shopping quickly were predominant, online shopping was preferred. When attributes
such as personal service and ability to see-touch-handle the product were predominant,
offline shopping was preferred.

Yaobin Lu (2011):- Focused on factors that influence user‟s intention to transfer their usage
from the offline to the online channel that offers similar services. The study revealed that
innovativeness in new technology and relative benefit had positive effects on user‟s intention
to transfer usage. Moreover, the findings of the study also indicated that internet experience
moderates the relationship between relative benefit and consumer‟s intension to transfer
usage from offline to online services.

Selvakumar (2014):- concentrated on consumer‟s perception of the product sold online and
the issues considered important to online shopping. This study was conducted among the
online shoppers at Coimbatore which is in Tamil Nadu state. It is to analyses the impact of
consumer opinion and the attitude. Questionnaire was made to collect the data from the
population; these questionnaires were given to college going students. The total sample size
is 150 respondents. The finding of this study shows that improvement and accessibility
influence the customer‟s intention to shop online.

Jahanshai et al. (2011) M-commerce is also known as mobile electronic commerce or

wireless electronic commerce. It is a subset of electronic commerce that involves the use of
mobile computing devices in carrying out different types of economic transactions
(marketing, buying and selling products and services).

Kritzinger et al. (2003) Mobile commerce can be described as the act of performing an
electronic transaction that has financial implications from a mobile device such as a cellular
phone or personal digital assistant (PDA).

Shweta Sharma, Sugandha Mittal - examined a developing country can become

industrialized and modernized if it can extensively apply IT to enhance productivity and
International competitiveness, develop e-commerce and e-governance applications. An
Information based society or knowledge based society is composed of it products, IT
applications in society and economy as a whole. Many countries in Asia are taking advantage
of e-commerce through opening of economies which is essential for promoting competition

29
and diffusion of International technologies. Large enough to have a critical mass of 10 to 20
million users to be able to an impact one-commerce and e-governance. In the next 3 to 5
years, India will have 30 to 70 million Internet users which will equal, if not surpass, 57
many of the developed countries. Internet economy will then become more meaningful in
India. The rapid expansion of internet, e-commerce, is set to play a very important role in the
21st century, the new opportunities that will be thrown open will be accessible to both large
corporations and small companies. The role of government is to provide a legal framework
for e-commerce so that while domestic and International trade are allowed to expand their
horizons, basic rights such as privacy, intellectual property, prevention of fraud, consumer
protection etc are all taken care of.

Mr. RAJIV RASTOGI Reported that a developing country can be- come industrialized and
modernized if it can extensively apply IT to enhance productivity and international
competitiveness, develop e-commerce and e-governance applications. An information based
society or knowledge based society is composed of IT products, IT applications in society
and economy as a whole. Many countries in Asia are taking advantage of e-commerce
through opening of economies, which is essential for promoting competition and diffusion of
Internet technologies. The Internet is boosting efficiency and enhancing market integration in
developing countries. The developed world has had a long lead over the developing countries
in the telecom infrastructure. The world average of teledensity is 15 percent compared to the
developed world average of 55 to 60 percent. Same is true of PCs Internet connections, and
the number of Internet hosts. All these traditional indicators for India as seen above are still
small. But the total number of Internet connections is large in absolute numbers.

30
 TABLE 3.1

Classification of Respondents

(Gender wise)

Gender No.of Respondent Percentage

Male 47 94%
Female 3 6%
Total 50 100%

Figure 3.1

Gender

6%

Male

Female

94%

Interpretation: This study shows that out of 50 respondents 94% of the respondents are male
and 6% of the respondents are female.

31
 TABLE 3.2

Age wise distribution

Options No. of respondents Percentage

Below 20 0 0%
20-30 14 28%
30-40 23 46%
Above 40 13 26%
Total 50 100%

Figure 3.2

Age wise distribution

0%

26% 28%
Below 20
20-30
30-40
Above 40

46%

Interpretation: Out of 50 respondents 28% are between the age group of 20-30, 46% are
between 30-40 and 26% are above 40.

32
 TABLE 3.3

Showing monthly sale

Options No.of Respondent Percentage

Below 100000 11 22%
100000-250000 28 56%
250000-500000 7 14%
Above 500000 4 8%
Total 50 100%

Figure 3.3

Showing monthly sale

60% 56%

50%

40%
Percentage

30%
22%
20% 14%
8% Showing monthly sale
10%

0%

No.of respondents

Interpretation: From the data we can understand that 22% of the respondents says that
income is below 100000, 56% of the respondents said that between 100000-250000, 14% of
the respondents are says between 250000-500000 and the remaining 8% of the respondents
said that above 500000.

33
 TABLE 3.4

Showing that most selling brand

Options No.of Respondents Percentage

Vivo 21 42%
Apple 0 0%
Samsung 12 24%
Others 17 34%
Total 50 100%

Figure 3.4

Showing that most selling brand

45%
40%
35%
30%
Percentage

25%
20% 42%
34% Showing that most selling brand
15%
24%
10%
5%
0% 0%
Vivo Apple Samsung Others
No.of respondents

Interpretation: Out of 50 respondents, 42% of the respondents said that Vivo is the most
selling brand in their shop, 24% say Samsung and remaining 34% says others.

34
 TABLE 3.5

Most selling price

Options No.of Respondents Percentage

Below 20000 44 88%
20000-30000 6 12%
30000-50000 0 0%
Above 50000 0 0%
Total 50 100%

Figure 3.5

Most selling price

88%
90%
80%
70%
60%
50%
Most selling price
40%
30%
20% 12%
10% 0% 0%
0%
Below 20000 20000-30000 30000-50000 Above 50000

Interpretation: From the date, 88% of retailers said their customer‟s buy products in a
price below 20000 and 12% of retailers are said the price between 20000-30000.

35
 TABLE 3.6

Showing the retailer opinion about selling all the brands available in e-
store

Options No.of Respondents Percentage

Yes 19 38%
No 31 62%
Total 50 100%

Figure 3.6

Showing the retailer opinion about selling all

the brands available in e-store

70% 62%

60%
50% 38%
Percentage

40% Showing the retailer opinion

30% about selling all the brands
available in e-store
20%
10%
0%
Yes No
No.of respondents

Interpretation: From the research, 38% of the respondents said yes and 62% of the
respondents said no.

36
 TABLE 3.7

Showing the level online shopping affecting the business

Options No.of Respondents Percentage

Highly affected 24 48%
Slightly affected 22 44%
Low affect 4 8%
No affect 0 0%
Total 50 100%

Figure 3.7

Showing the level online shopping affecting

the business
48%
50% 44%

40%
Percentage

30%

20% Showing the level online

8% shopping affecting the business
10%
0%
0%
Highly Slightly Low affect No affect
affected affected
No.of respondents

Interpretation: Out of 50 respondents 48% of the respondents said that online shopping is
highly affected, 44% said that slightly affected and 8% says that low affect.

37
 TABLE 3.8

Showing the highly demanded brand in the mobile store

Options No.of Respondent Percentage

Redmi 11 22%
Samsung 18 36%
Apple 0 0%
Others 21 42%
Total 50 100%

Figure 3.8

Showing that which brand has high demand

in mobile stores

45%
40%
35%
30%
Percentage

25%
42% Showing that which brand has
20% 36%
15% high demand in mobile stores
22%
10%
5%
0% 0%
Redmi Samsung Apple Others
No.of respondents

Interpretation: From the table, we can understand that 22% of the respondents said that
Redmi is the most demanded brand in their store, 36% said Samsung and 42% said others.

38
 TABLE 3.9

Showing that retailers opinion on starting e-store

Options No.of Respondent Percentage

Yes 22 44%
No 28 56%
Total 50 100%

Figure 3.9

Showing that retailers opinion on starting e-

store

44% Yes

56% No

Interpretation: where 44% of the respondents are interested to start e-store and 56% of
respondents are not interested.

39
 TABLE 3.10

Showing the usage of cash less payment methods

Options No.of Respondent Percentage

Using 18 36%
Currently not using 8 16%
Never used 0 0%
Will use in future 24 48%
Total 50 100%

Figure 3.10

Showing the usage of cash less payment

methods
60%

50%

40%
Percentage

30%
48% Showing the usage of cash less
20% 36% payment methods
10% 16%
0% 0%
Using Currently not Never used Will use in
using future
No.of respondents

Interpretation: Out of 50 respondents, 36% of the respondents says that using cash less
payment method, 16% says currently not using and 48% of the respondents are rady to use it
in future.

40
 TABLE 3.11

Showing the level of e-store popularity reducing the regular customers

Options No.of Respondent Percentage

Highly 12 24%
Slightly 23 46%
Low affect 8 16%
No affect 7 14%
Total 50 100%

Figure 3.11

Showing that how e-store popularity

reducing the regular customers

14%
24%

16%
Highly
Slightly
Low affect
46%
No affect

Interpretation: Out of 50 respondents, 24% of respondents said that, e-store popularity

highly reduce the regular customer, 46% of respondents said slightly, 16% of respondents
said there is low affect and remaining 14% says no affect.

41
 TABLE 3.12

Showing that online shopping customer satisfaction level

Options No.of Respondent Percentage

Highly satisfied 4 8%
Satisfied 21 42%
Dissatisfied 23 46%
Strongly dissatisfied 2 4%
Total 50 100%

Figure 3.12

Showing that online shopping customer

satisfaction level
50% 42% 46%
Percentage

40%
30%
20% 8%
10%
0% 4%
Showing that online shopping
customer satisfaction level

No.of respondents

Interpretation: Out of 50 respondents, 8% of the respondents are highly satisfied, 42% of

the respondents are satisfied, 46% of respondents are dissatisfied and 4% of the respondents
are strongly dissatisfied.

42
 TABLE 3.13

Reason behind feeling comfortable through online shopping

Options No.of Respondent Percentages

Variety goods 2 4%
Reasonable price 26 52%
Time saving 22 44%
Other reason 0 0%
Total 50 100%

Figure 3.13

Reason behind feeling comfortable through

online shopping
60%
52%
50%
44%

40%

30% Reason behind feeling

comfortable through online
20% shopping

10%
4%
0%
0%
Variety goods Reasonable Time saving Other reason
price

Interpretation: Comfortability in choosing favourable price is the major reason by 52% of

the respondents to go behind online shopping. 44% said that time saving is the reason. Only
4% said that the availability of various goods is the reason.

43
 TABLE 3.14

Showing opinion on the security of online shopping than traditional

shopping

Options No.of Respondent Percentage

Highly secure 0 0%
Secure 13 26%
Unsecure 28 56%
Highly insecure 9 18%
Total 50 100%

Figure 3.14

Showing opinion on the security of online

shopping than traditional shopping

Highly insecure 18%

No.of respondents

Unsecure 56%

Secure Showing opinion on the security

26%
of online shopping than
traditional shopping
Highly secure 0%

0% 10% 20% 30% 40% 50% 60%

Percentage

Interpretation: From the table we understand that 26% of respondents feel secure, 56% of
respondents say that unsecure, 18% of respondents are said highly secure.

44
 TABLE 3.15

Showing the confidence of retailers in maintaining stock more than e-store

Options No.of Respondent Percentage

Yes 28 56%
No 22 44%
Total 50 100%

Figure 3.15

Showing the confidence of retailers in

maintaining stock more than e-store

44% Yes
No
56%

Interpretation: From the study out of 50, 56% of the respondents are confident enough to
maintain stock where remaining 44% of the retailers are not confident enough to maintain the
stock.

45
 TABLE 3.16

Showing opinion about promoting doorstep delivery

Options No.of Respondent Percentage

Yes 2 4%
No 48 96%
Total 50 100%

Figure 3.16

Showing opinion about promoting doorstep

delivery
120%
96%
100%
80%
60%
40%
Showing opinion about
20% 4% promoting doorstep delivery
0%
Yes No
responden
Percentage

No.of

ts

Interpretation: From the table, we can understand that only 4% of the respondents are
ready to promote doorstep delivery and 96% are not ready for this.

46
 TABLE 3.17

Showing that profit after the growth of e-store

Options No.of Respondent Percentage

Highly effect 33 66%
Moderate effect 12 24%
Low effect 5 10%
No effect 0 0%
Total 50 100%

Figure 3.17

Showing that profit after the growth of e-

store

10% 0%

Highly effect
24% Moderate effect
Low effect
66% No effect

Interpretation: Out of 50 respondents, 66% of the respondents are say highly effect, 24% of
the respondents are say moderate effect and 10% of the respondents are say low effect.

47
 TABLE 3.18

Showing Opinion about the sale service of online mobile seller

Options No.of Respondent Percentages

Excellent 9 18%
Good 31 62%
Average 4 8%
Poor 6 12%
Total 50 100%

Figure 3.18

Showing Opinion about the sale service of

online mobile seller
70% 62%
60%
50%
Percentage

40%
30% Showing Opinion about the sale
18% service of online mobile seller
20% 12%
8%
10%
0%
Excellent Good Average Poor
No.of respondents

Interpretation: Out of 50 respondents, 18% of respondents are saying excellent, 62% of

respondent say good, 8% are says average and 12% of the respondents are saying poor.

48
 4.1 FINDINGS

 In this study we can assume that emergence of e-commerce was badly affect the
mobile retailers.
 This study shows that out of 50 respondents 94% of the respondents are male and 6%
of the respondents are female.
 Out of 50 respondents 28% are between the age group of 20-30, 46% are between 30-
40 and 26% are above 40.
 56% of respondents are says average monthly sales between 100000-2500000.
 Out of 50 respondents, 42% of the respondents said that Vivo is the most selling
brand in their shop, 24% said Samsung and remaining 34% says others.
 Out of 50 respondents, 36% of the respondents says that using cash less payment
method, 16% says currently not using and 48% of the respondents are rady to use it in
future.
 88% of mobile retailers are said most trending price tag was below 20000.
 E-commerce was highly affected the mobile retailers.
 Out of 50 respondents, 8% of the respondents are highly satisfied with online
shopping, 42% of the respondents are satisfied, 46% of respondents are dissatisfied
and 4% of the respondents are strongly dissatisfied.
 46% of respondents are said that emergence of e-commerce was slightly reduce te
regular customer.
 The only one main reason for choosing online shopping was reasonable price.
 Comfortability in choosing favourable price is the major reason by 52% of the
respondents to go behind online shopping. 44% said that time saving is the reason.
Only 4% said that the availability of various goods is the reason.
 Most of the respondents said that the e-commerce was unsecure rather than traditional
market.
 The emergence of e-commerce was highly affect the profit of mobile retailers.
 From the study out of 50, 56% of the respondents are confident enough to maintain
stock where remaining 44% of the retailers are not confident enough to maintain the
stock.

49
 4.2 SUGGESTIONS

 Mobile retailers should improve its knowledge about E - commerce process.

 Mobile retailers should improve the co-ordination of producers, dealers and
customers.
 Give quick online support to customers.
 To understand the customers proper behavior, habits and expectations.
 Provide quality product at reasonable price at both market.
 Provide more offer and discount to attract customers in offline shopping.
 Try to improve the after sales service in case of online shopping.
 Take necessary steps to improve the time on delivery on online shopping.
 Retailers should use modern technology to sell their products.
 Provide information and knowledge in the rural people about new technologies used
for purchasing.
 Develop and create market for a product in rural area too by the sellers.
 Try to open new branches of retail shops for increase the level of Sales.
 Provide awareness and assistance to the customers through various media like
television, newspaper, internet… etc.

50
 4.3 CONCLUSION

This paper concludes that e-commerce provides us wide variety of products and services with
lots of information and attractive pictures at an affordable price at our doorstep. It provides
convenience to customers and allows the enterprise to expand their business over internet. E-
commerce have good impact on markets like reduce the cost of advertisements as many
customers can attract through internet, new brand can be developed, can maintain a good
relationship with customers and can make customized products according to customer‟s
needs. But e-commerce has bad impact on offline retailers because customers buys on low
price from online shops due to which they also have to lower their price and does not get any
profit, retailers cannot maintain a large stock like online shops have stores because it will cost
a huge loss to them. They have to spend more money in offline advertisements to attract
customers. Along with the impacts e-commerce also offers some limitation in terms of
markets and retailers that is website cost, to create and maintain a website a lot of money is
required; infrastructure cost, to fulfill the orders online retailers have to maintain a large stock
in a big warehouse which costs a lot; security and fraud, due to popularity of online shops
criminal elements are also attracted to them who can hack the personal information and can
misuse them; customer trust, it is difficult for customers to trust a new brand without looking,
touching and face-to face interaction.

51