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CHAPTER 1 INTRODUCTION
A STUDY ON CONSUMER BEHAVIOUR OF INTERNET MARKETING
MARKETING:Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs probability” A market-focused, or customer-focused, organization first determines what its potential customer’s desire and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit.
TWO LEVELS OF MARKETING
STRATEGIC MARKETING: It attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. OPERATIONAL MARKETING: It executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational marketing includes the determination of the marketing mix.
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A Study on Consumer Behavior of Internet Marketing
A SHORT HISTORY OF THE INTERNET
The internet has existed since the late 1960s when a limited number of computers were connected in the United Sates to form the ARPA net. This was mainly used to enable academics and military personnel to exchange defense information. The internet refers to the physical network that links computers across the globe. It consists of the infrastructure of network servers and wide-area communication links between them that are used to hold and transport the vast amount of information on the Internet. The recent dramatic growth in the use of the internet has occurred because of the development of the World Wide Web. This became a commercial proposition in 1993 after development of the original concept by Tim Berners-Lee, British scientist working at CERN in Switzerland in 1989. The World Wide Web changed the Internet from a difficult-to –use tool for academics and technicians to an easy to use tool for finding information for businesses and consumers.
INTERNET MARKETING DEFINED
Internet marketing can be defined as “Achieving marketing objectives through use of electronic communications technology.” The definition of marketing by the Chartered Institute of Marketing “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.”
INTERNET MARKETING:Internet marketing can be defined as the use of the Internet and related digital technologies to achieve marketing objectives and support the modern marketing concept. These technologies include the internet media and other digital media such as wireless mobile media, cable and satellite. In practice, internet marketing will include the use of a company web site in conjunction with online promotional techniques such as search defines , banner advertising , direct e- mail and links or services from other web sites to acquire new customers and provide services. Advanced Management College 2 Bangalore
A Study on Consumer Behavior of Internet Marketing
What business benefits can the Internet provide?
1. Market penetration:- The internet can be used to sell more existing products into existing markets. This can be achieved by using the power of the internet for advertising products to increase awareness of products and the profile of a company amongst potential customers in an existing market. 2. Market development:- Here the internet is used to sell into new markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customer’s country. 3. Product development: - New products are developed which can be delivered by the internet. These would typically be information products such as market reports which can be purchased using electronic commerce. 4. Diversification:-In this sector, new products are developed which are sold into new markets.
The internet can be applied by companies as an integral part of the modern marketing concept since: It can be used to support the full range of organizational functions and processes that deliver products and service to customers and other key stakeholders. As a communications medium it can act as a corporate glue that can integrate the different functional parts of the organization It facilitates information management which is now increasingly recognized as a critical marketing support tool. The future role of the internet should form part of the vision of a company since its future impact will be significant to most businesses.
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Define branding strategy:. or will a new brand be adopted to differentiate and promote the site? 4.Who will be responsible for different aspects of the implementation such as content development. promotion and maintenance? What are the timescales for implementing different parts of the strategy? Advanced Management College 4 Bangalore .A Study on Consumer Behavior of Internet Marketing How does internet marketing differ from traditional marketing? The main differences that should be noted are: The customer initiates contact The customer is seeking information High intensity medium Can gather and store response of individual Individual needs can be addressed and taken into account in future dialogues. and how they are measured. Elements of an internet strategy: 1. 2. Establish objectives: .Which of the marketing functions will be prioritized for 3. action? Define scope: . Consider what the criteria for success will be. Establish timescales and resources: .Establish what the requirements are the customers.How will the web site be used to support the existing site. Benchmark competitors.What combination of online and offline promotion techniques will be used? 5. company and third –parties. Promotion strategy: .
Sales promotion 3. The four elements of the promotion or communications mix are: 1. Implementation constraints: . Legal issues: . INTEGRATING THE INTERNET STRATEGY INTO THE MARKETING PROCESS One of the key decisions in developing an internet marketing strategy is deciding which marketing functions can be assisted by the internet. We will ask how much should be spent on strategy. PROMOTION ACTIVITIES: Promotion is the element of the marketing mix which is concerned with communicating the existence of products or services to a target market. Advertising 2. promotion and maintenance. Achieving management commitment and funding: . Burnett (1993) defines it as: The marketing function concerned with persuasively communicating to target audiences the components of the marketing program in order to facilitate exchange. 8.The effect of the physical setting and performance of the web server and its software on the customer experience must be considered as part of strategy. content development.The proportion of marketing budgets separation web sites is limited. Direct marketing 4. There is a tendency amongst companies first using the internet to restrict applications to promotion and selling.A Study on Consumer Behavior of Internet Marketing 6. Public Relations Advanced Management College 5 Bangalore . 7.Legal constraints on entering new markets must be acknowledged.
Several PR agencies are investigating the potential for organizations to further exploit the potential for electronic Public Relations. PUBLIC RELATIONS:Public Relations activity on the web offers organizations scope for corporate communications. marketing staff are still undergoing a learning curve in terms of exploiting its full potential and integrating it with their offline promotional activities. Direct marketing on the internet offers significant potential for customization of products and services and personalizing a message. DIRECT MARKETING:Direct marketing is currently one of the fastest growing fields of marketing. SALES PROMOTION:The Internet provides marketers with an excellent channel through which to communicate sales promotions. Advanced Management College 6 Bangalore . 4. images and buying information to the web site visitor. sponsorship. The Internet provides scope for two way interaction. The second option is to use banner ads which can increase brand recognition and communicate / reinforce brand values as well as providing a link to the web site. users have the choice of to options for advertising on the web. ADVERTISING:Since the internet is a new medium. 3. publicity and a direct vehicle for communicating press releases. clear targeting of key opinion formers and journalists and the potential for communicating strong corporate brand messages. The utilization of databases and the interactivity of the internet enable organizations to engage on one to one dialogue. The techniques it utilizes can be spread across all the elements of the promotional mix. Such sites can incorporate interactive activity and sounds. The first is to set up a web site and through this communicate key messages.A Study on Consumer Behavior of Internet Marketing 1. 2. Essentially.
and entered your e-store. conversion rate. The next evolutionary step would be to refine the consumer search to those consumers specifically searching for your product or service. current use of the term internet marketing commonly refers to the use of direct response marketing strategies. whether it be B2B or Business to consumer.A Study on Consumer Behavior of Internet Marketing HISTORY OF INTERNET MARKETING Internet marketing first began in the early 1990s as simple. Companies like Google. Yahoo. These methods have been found to be particularly useful on the internet due to its tracking capabilities coupled with the ability to instantly reach the prospect. applied to the internet business space. These are what business owners covet. software programs. This ability for careful analysis has become quite common now. and many other products and services. and entice them with catchy tag lines and promotions. By offering local advertising to small to medium sized businesses. and sales letter commonly come up when discussing internet marketing. text-based websites that offered product information. This type of marketing is the backbone of modern capitalism. and TV infomercials. ROI has grown while the bottom line has been lowered. There are people now selling advertising space. Advanced Management College 7 Bangalore . To clarify. allowing anyone with an idea. while internet marketing can cover any facet of online marketing as described above. which is why you will commonly see terms such as ROI. the lowest cost per lead. and MSN have leveled the playing field of internet advertising. radio. that were traditionally used in direct mail. business models. the design of your website will determine the online to offline or e-commerce conversion rates. Over time Internet marketing evolved into more than just selling information products. product or service to reach the widest audience possible. Once the consumer has chosen your company.
the interactive nature of the internet and the linkage of internet technology to Advanced Management College 8 Bangalore . in turn. ELECTRONIC COMMERCE:Electronic commerce has become the standard term recognized for business transactions conducted on the internet. are linked to larger ISPs with connection to the major national and international infrastructure or backbones. the Internet is a large-scale client/server system. By end 2000. As such. Electronic commerce has implications for existing channels of distribution regarding the logistics involved in delivery of products and services. For consumer. It is a term that encompasses a range of business activities such as selling online. how products and services are ordered. taxed and paid for. Access to organization resources and information. there were over 450 million users of clients accessing over 30 million web sites hosted on servers The client PCs within homes and businesses are connected to the Internet via local Internet Service Providers (ISPs) who. online bill payments. Information is transmitted from client PCs whose users request services to server computers that hold information and host business applications that deliver the services in response to requests. Nun compilations estimated that worldwide. a significant benefit of online shopping is that it provides access to a global marketplace of online shopping sites. 1996).A Study on Consumer Behavior of Internet Marketing HOW DOES INTERNET WORK? The Internet enables communication between millions of connected computers worldwide. home shopping /banking and improving efficiency in dealings with suppliers and clients (Hoffman and Novak. SERVICES MARKETING:The internet provides both a communication and distribution channel for the provision of faster and more effective service delivery.
provide updated drivers and software patches. themselves. for electronic products. Online marketing can serve several purposes: • Actual sales of products—e. Amazon. Print and television advertisements can also feature the firm’s web address. This is one of the reasons why the quality of data collected online is often suspect. Advanced Management College 9 Bangalore .g. • Market research: Data can be collected relatively inexpensively on the Net. those who would like additional information.. when a consumer searches for a specific term in a search engine. thus inexpensively drawing in • Customer service: The site may contain information for those who no longer have their manuals handy and. a “banner” or link to a firm selling products in that area can be displayed. However.A Study on Consumer Behavior of Internet Marketing other information technology hardware provide a wide range of opportunities for marketers to improve the service delivery process. have sought out.com • Promotion/advertising: Customers can be quite effectively targeted in many situations because of the context that they. For example. the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions.
It makes much more efficient than having to visit store after store. It saves time and energy of consumer as they can place an order by a mere click of the mouse. quality and shipping terms before making a final choice. It provides sheer convenience to its customer as they can place an order by a more click of the mouse. Internet marketing provides an integrated source of information on products and services. Online shopping provides vast selection as the products can be displayed. Advanced Management College 10 Bangalore .A Study on Consumer Behavior of Internet Marketing ADVANTAGES OF INTERNET MARKETING OR ONLINE SHOPPING We offer endless number of choices and options to consumers which make online shopping attractive. Internet marketing leads to quick comparison as consumers can quickly compare products in terms of price. reviewed and compared at no cost in terms of time or funds. They are: Online shopping provides a wider choice as consumers. enjoy having choices before they decide whether to buy a product. It saves time and energy of consumer as online shopping is comparatively strain-free. in general.
the consumer needs to see. For example. It can be called micro-targeting. However. DISADVANTAGES OF INTERNET MARKETING Internet marketing has also certain drawbacks as certain buying decisions require information that can best be found in traditional brick-and-mortar stores.. Advanced Management College 11 Bangalore . There are some other items which do not sell well on web because of delivery problems. It is a form of mass personalization. high end jewelry and certain electronic products) are often more cost-effective to ship to end-customers than are bulkier products with less value (e. be economically marketed online. selling online will probably be more costly than selling in traditional stores due to the high costs of processing orders and direct shipping to the customer.g. These kinds of products continue to be bought at a traditional store. in most cases.g. Some factors that are relevant in assessing the potential for ecommerce to be an effective way to sell a specific product are: “Value-to-bulk” ratio: Products that have a lot of value squeezed into a small volume (e. Some people have suggested that the Internet may be a less expensive way to distribute products than traditional “brick-and-mortar” stores. fencing or furniture are best sold in local stores. large items like plumbing materials. Some products may.. For example when buying certain personal items like perfume or clothing. low end furniture). however.A Study on Consumer Behavior of Internet Marketing It provides unique gifting opportunity. feel smell or test. Internet marketing keeps data on its customers.
This allows the merchant to spend money on processing. bee keeping equipment—customers are widely geographically dispersed and thus. however.. Vulnerability of inventory to loss of value: Advanced Management College 12 Bangalore . delivering high bulk. However. generally low value groceries is generally not efficient. Geographic dispersal of customers: Electronic commerce.g. packaging.150. Specialty books—e. in contrast. and these may thus be economically sold online.A Study on Consumer Behavior of Internet Marketing Absolute margins: Some products may have a rather high percentage margin—e. Extent of customization needed: Some products need to be customized—e. a centralized distribution center may be more economically viable. a laptop computer may be bought at $1. for some customers. it may be worthwhile to pay to avoid an inconvenient trip to the grocery store. a scarf bought at wholesale at $10 and marked up 100% to be sold at $20.g.000 and be marked up by only 15%..g. for a total price of $1.. when value-to-bulk ratios and absolute margins are not favorable. the absolute margin is only $20-$10=$10. For example. the absolute margin will be larger--$150. can only cover a small amount of employee time and very limited packaging and shipping. online processing may be useful because the customer can do much of the work. checks have to be personalized and airline tickets have to be issued for a specific departure site.g. However. is often not viable when customers are located conveniently close to a retail outlet. Ten dollars. and shipping the order.. Here. In contrast. for collectors of vintage automobiles—may not be worthwhile for bookstores to stock. However. Willingness of customers to pay for convenience: Some consumers may be willing to pay for the convenience of having products delivered to their door. Here. or $150. for some products—e. Some online merchants do charge for shipping. and travel time. but doing so will ultimately make the online merchant less competitive. destination time.
Heighten Public Awareness:. one of the first things to do is to make customers aware that you are available to serve them. then.5% of their value per week. The overall goal is to tell their customers why they should do business with them.Internet saves a great deal of time.5% of the product value. in no time. No one can provide this information faster than internet. When you want to know about a certain interview or about a particular piece of news. If shipping directly to the customer can reduce the channel time by five weeks. its location and its shopping hours to its customers through which they establish a presence in the market. history. it provides the information in no time.In marketing. Serve Customer:.A Study on Consumer Behavior of Internet Marketing Some products—especially high tech products—have a very high effective carrying costs. the customer should be provided full information about the business with which he has to deal. Share Time-Sensitive Information:. trying to reach the customer directly may make sense. this potentially “rescues” as much as 7.Any potential customer who accesses a certain company’s website is able to know about the company and the offers which it provides. Advanced Management College 13 Bangalore . computer parts may lose as much as 1. because of the inventory value issue.Internet marketing helps in selling goods via web: but before the transaction takes place. even if the direct costs of distribution are higher. There are several reasons for which a person goes to Internet like: Establish Presence: . In such a situation.Many companies provide basic information like general company information. To Sell Goods/Services:. It has been estimated that because of the rapid technological progress made in the computer field.
in the long run. By the forces of supply and demand. Any reduced costs would then be expected to go to customers. Serve the local market: . Amazon. software.com. Even if online selling is more cost effective in some situations.A Study on Consumer Behavior of Internet Marketing Reach the youth market: . destruction or unauthorized use with the help of communication networks and microcomputer-based process. It refers to the protection of hardware. online prices will then be driven down so that the profit from selling online will be no greater than that from traditional retailing. for example.Due to the help of web page. Answer to the queries: . various companies spend a lot of time in giving answers to the queries sent by customer. data. a firm selling online will. theatres and the like in the locality. be competing with other online merchants—not just against traditional “brick-and-mortar” stores. Competition will be greater for products that have large markets than for those where markets are smaller and more specialized.Through the use of web.Everyday. Market at the international level: . Higher prices—closer to the list price Advanced Management College 14 Bangalore .E-security is the protection of computer-based resources against alternation. destruction or unauthorized use. E-security: . procedure and people resources against alternation.The under 25 group is fast becoming a formidable segment of the web markets. a customer is able to know about different shops. a company can reach international customers just as easily and quickly as it can reach the customer next door. costs of handling online orders is often higher than that of distributing through traditional stores. There are a number of economic realities of online competition: As discussed. has found it necessary to discount best selling books deeply.
A new online merchant will face competition from established traditional merchants. CHAPTER 2 METHODOLOGY NEED FOR THE STUDY:The study is undertaken to find out the effectiveness of internet marketing in India. by taking into consideration the already available services and other service to be added by the companies which market through internet. but for a large part of the market. The online merchant. may run out of cash before it can become profitable. if it has no cash reserves other than stockholders’ investment. competition will be intense. These will often have the cash reserves to stay in business for a long time even with temporary competition. The research carried out helps in identifying key area of attraction. Advanced Management College 15 Bangalore .A Study on Consumer Behavior of Internet Marketing —can be charged for specialty books.
It would also specify which area need more focus and those that require adjustments. Economic and social preference of the customers can also be determined to help focus on what kind of additional packages the companies should offer. To study and find out the opinion of customers about internet marketing. Advanced Management College 16 Bangalore . to help meet the expectations of customers and satisfy their needs. OBJECTIVE OF THE STUDY: To assess the effectiveness of internet marketing on purchasing behavior. In addition the companies can easily identify their target group and plan value added packages that would attract customer. It would contribute to the maximization of profit by increasing sales to the target group. To study in depth the scope of internet marketing in future. Further the study will contribute ideal information that will enable internet marketers to set strategic plans to attract new customers and retain their exciting customers. To assess the different ways in which internet marketing can be improved.A Study on Consumer Behavior of Internet Marketing This study would help the internet marketing companies to identify the flows and loopholes in the market. To identify the product frequently purchased through internet.
A Study on Consumer Behavior of Internet Marketing SCOPE OF THE STUDY:The study was conducted in the parts of Bangalore city only. to adopt other value added services and to increase the satisfaction level of the customers The finding would also help the companies to identify key areas that need improvement and identify target groups and meet their needs to maximize sales. 1. This study helps in analyzing areas of weaknesses and strengths of internet marketing. There are three types of research design. This study helps to determine the level in which the companies stand and what strategic measures they can take to be effective and competent in making sales through internet. LIMITATIONS OF THE STUDY:• • The study is limited to particular city. The research is based on only higher lower. The suggestions outline can be used by the companies who market through internet. • • The sample size is restricted to 100 respondents only. Bangalore. RESEARCH DESIGN Introduction:A research design is purely and simply the framework of plan for a study that guides the collection and analysis of data. higher upper and middle class society in Bangalore. To modify and set reasonable prices. i) ii) iii) Exploration Description Casual Advanced Management College 17 Bangalore . to improve and add other services. The research is limited to business to customer internet domain.
It involves the questionnaire of respondents to secure the desired information using a data collection instrument called questionnaire. To determine whether certain variables are associated In this research the researcher has used descriptive design.A Study on Consumer Behavior of Internet Marketing Descriptive research design It is used when the purpose of research is covered under one or more of the following points: To describe the characteristics of certain groups. Questionnaire may be asked verbally or written and response maybe obtained in either form. 2.include those data which are collected for some earlier research work and are applicable in the study the researcher has undertaken. Basic means of obtaining primary data:• • • Communication and observation. Advanced Management College 18 Bangalore . TYPE OF DATA: • • Primary Data Secondary Data Primary Data: . An observation means that the situation of interest is checked and the relevant facts. To make specific predictions. To estimate the proportion of people in a specified population who behave in a particular way. actions or behavior recorded.may pertain to demographic and socio-economic characteristics of the consumers. attitudes and opinions of people their awareness and knowledge and other similar aspects. Secondary Data: .
SAMPLING UNIT The researcher has to decide whether the data is to obtained from every unit of the population under study or only a representative portion of the population. a) Convenience sampling: . Internal 2.Sample unit are chosen primarily on the basis of the convenience to the investigator. In this study the researcher has used the primary data collection from respondents using the instrument called questionnaire. . GRAPHICAL REPRESENTATION Bar-Diagram Pie-chart Advanced Management College 19 Bangalore . 3. Probability 2.A Study on Consumer Behavior of Internet Marketing Type of Secondary Data 1. Secondary data from book and websites.Probability Non-Probability:-The three more frequently used non-probability designs are judgment. The researcher in this study has used convenience sampling technique under non-probability sampling. convenience and quota sampling. 5. External External secondary data are generated and collected from variety of events and source outside the firm’s premises. Non. SAMPLE TECHNIQUE There are two main categories: 1. In this research the sample units are residents in Bangalore city. 4.
2. Open-ended:. In this questionnaire the response as well as the questions is standardized. Advanced Management College 20 Bangalore .3 INDUSTRIAL PROFILE E-commerce application began in the early 1970s with such innovations as electronic transfer of funds.They refer to those questions in which the respondent is given a limited /number of alternative responses from which he/she is to select the one those most closed matches his/her opinion or attitude. 8.refers to a question that has no fixed alternative to which the answer must conform. 7. However. 6. The researcher has used both close ended and open ended questions. Close-ended:. ecommerce applications have rapidly expanded.A Study on Consumer Behavior of Internet Marketing The above two methods of graphical representation are used in this research. INSTRUMENT USED A questionnaire was used to collect the data. Type of questions used 1. which added other kinds of transaction processing and extended participation to all industries. INSTRUMENT DESIGN Structured-undisguised questionnaire was used to collect data. CHAPTER. the applications were limited to large corporations and a few daring small businesses. Then came Electronic Data Interchange (EDI). Since the commercialization of the internet and the introduction of the web in the early 1990s. The purpose of the question is clear and thus undisguised. SAMPLE SIZE The researcher selected sample size of 100 respondents. The respondents answer his/her own words and at nay length he/she chooses.
” Advanced Management College 21 Bangalore . such as home banking. globalization. cycle. and providing customer service. In addition. Some people view the term commerce as describing transaction conducted between business partners. and information via computer networks. and sharing knowledge across institutions for competitive advantage. sped. not just buying and selling. ELECTRONIC COMMERCE APPLICATIONS Direct Marketing Stocks Jobs Online Banking Procurement and purchasing Malls Procurement Auctions Travel Online publishing Customer Services Intra-business Transactions E-government C2C E-learning Electronic commerce describes the buying. such as people. “e-business is all about time. marketing /advertising and supply chain logistics. reaching new customers. services. collaborating electronically with business partners around the globe.A Study on Consumer Behavior of Internet Marketing The field of e-commerce is broad. IBM’s former CEO. To them. finding a job. primarily the Internet. public policy. According to Lou Gerstner. enhanced productivity. collaboration. There are many applications of e-commerce. The implementation of various e. The c-commerce management within each organization coordinates the applications and infrastructure. the term electronic commerce seems fairly narrow. shopping in electronic malls. it refers to a broad definition of e-commerce . conducting an auction. there is infrastructure supports. buying stocks. selling.commerce applications depends on four major support categories. and exchanging of products. so many use the term e-business instead. but also servicing customers.
In a nutshell.The digital revolution has made it possible for digital devices to communicate with one another. running even if they are not doing the business they expected. The following are the main heads which support e-commerce survivals. Anyone with a business or an idea to build up a new business can set up his business through the use of e-commerce and can become the next “armchair millionaire”. which are based on electronic processing and transmission of data. “E-commerce can be defined as “any form of business transaction in which the parties interact electronically rather than by physical exchange of documents of direct meetings amongst officials”. Advanced Management College 22 Bangalore . E-commerce is simply doing business online. Setting up a company website costs much less than it would to print brochures or hire a huge staff. sound and visual images. There is a wide opportunity of transactions though the medium of electronic commerce. The cost of the website is so minimal that companies don’t mind keeping it. The coverage of e-commerce is tremendously flexible. DRIVERS OF E-COMMERCE There are certain drivers of e-commerce which help in growth and survivals.A Study on Consumer Behavior of Internet Marketing E-commerce refers generally to all forms of commercial transactions involving both organizations and individuals. Doing business on internet is quite cheap. Digital convergence: . There is a massive growth of networking which has made it possible to navigate on internet. including text. Electronic commerce has accelerated the growth of trade across the globe.
Advanced Management College 23 Bangalore . Then comes e-brooking wherein people can use the cards to buy sell shares on the BSE. the trend is toward partnering owners and managers across departments to develop a chain of relationship that adds value to the enterprise. the customer have become more choosy and demand higher quality and better performance. It also assures a speedy delivery of service. Business to Consumer: . It is a form of business activity which is engaged in buying and selling of information. Improved service quality C. including a customized way of producing . Change in Organization: .Global competition and the proliferation of products and services worldwide have added unusual pressure on operating costs and profit margins. Anytime: . merchants and consumers to cut costs while improving the quality of goods and service.Today.Today. products and services via computer network.The focus of this kind of e-commerce is on the consumers. Lower product cycle time INTEGRATING E-COMMERCE The e-commerce falls under any of the following category:1. 24-hours a day and seven days a week. anywhere and anytime. Goals of electronic commerce: . e-commerce is divided various heads like e-tailing which means gathering of catalogs on the web where a consumer can log in and buy an item. Demand for customized products and services:. Related cost B. The broad goals e-commerce are A. Under this category. Faster customer response D. delivering and paying for goods and services. Increasing pressure on operating costs and profit margins: .E-commerce is made available to anyone.A Study on Consumer Behavior of Internet Marketing Anyone Anywhere.E-commerce can be said as a modern form of business activity which addresses the needs of the organization. E-commerce addresses these concerns quickly and efficiently at lower costs.
4 ANALYSIS AND INTERPRETATION TABLE-4. Business-to-Employee: . so that the employee can access them from anywhere. These applications are made available on the web.Business-to-Employee e-commerce identifies the set of applications available to the employee of an enterprise. As soon as online purchase deal is entered into and payment is approved through a credit card clearance procedure. 3. 4. 1 Age 15 to 20 No. E-procurement is the latest stage where government agencies announce request for proposals on their web sites for suppliers to bid on each proposal by e-mail or through the web-site. thank you for yours order. such as HR. purchase and travel. of Respondents Percentage 8 % 8 Advanced Management College 24 Bangalore . a message is generally displayed saying. even local schools are buying supplies online. The government market is similar to B2B. Fro example.Business-to-Business e-commerce is industrial marketing.A Study on Consumer Behavior of Internet Marketing Many institutions and universities provide e-learning facilities. Chennaibased Anna University offers online post-graduate courses in engineering for practicing engineers and teachers in technical college. CHAPTER. Today.1: showing Age Categories Serial No.Business-to-government refers to business with the government via the web. Among the processes it handles are fulfillment and procurement. Business-to-Business: . E-commerce has emerged as even government has started looking at moving procurement online. Business-to-Government: . 2.
Advanced Management College 25 Bangalore .1: showing age categories of respondents Percentage 14 3 8 15 to20 21 to 30 31 to 40 above40 75 INTERPRETATION: 75% of the respondents are at the age group of 21 to 30. The maximum number of respondents is at the age group of 21 to 30. 8% are below age group of 20. means maximum are youth.A Study on Consumer Behavior of Internet Marketing 2 3 4 5 21 to 30 31 to 40 More than 40 TOTAL 75 14 3 100 75 14 3 100 CHART-4. 3% are above 40.
ANALYSIS: From the above table it is shown that the major respondents are of the age group between 21 to 30 TABLE-4.2: showing Gender percentage of respondents Advanced Management College 26 Bangalore .2: showing Gender percentage of respondents Serial No.A Study on Consumer Behavior of Internet Marketing 14% are of middle age respondents. Gender No.of Respondents Percentage 1 Male 84 84 2 Female 16 16 3 TOTAL 100 100 CHART-4.
3: showing occupation of respondents Advanced Management College 27 Bangalore . TABLE-4. Male more surf the net than female. 16 % of the respondents are female.A Study on Consumer Behavior of Internet Marketing Percentage 16 Male Female 84 INTERPRETATION: 84 % of the respondents are male. ANALYSIS: Maximum respondents are male.
TABLE-4. Shopping etc.A Study on Consumer Behavior of Internet Marketing Serial No.3: showing occupation of respondents Percentage 28 Employes Student 72 INTERPRETATION: 72 % of the respondents are the Students. Information gathering. 28 % of the respondents are the Employees. mail checking. Respondents 28 72 100 28 72 100 of Percentage CHART-4. 1 2 3 Employees Student TOTAL Occupation No.4: showing respondents who have own computer Advanced Management College 28 Bangalore . ANALYSIS: The maximum respondents are students which use the net for many purposes like.
ANALYSIS: Maximum respondents has own computer. because computer is common now a day. 1 2 3 Computer Yes No TOTAL No. 20% of the respondents doesn’t have own computer. Advanced Management College 29 Bangalore . of Respondents Percentage 80 20 100 80 20 100 CHART.A Study on Consumer Behavior of Internet Marketing Serial No.4: showing respondents who have own computer Percentage 20 NO YES 80 INTERPRETATION: 80% of the respondents has own computer.4.
Airline Ticket booking.A Study on Consumer Behavior of Internet Marketing TABLE-4. Advanced Management College 30 Bangalore . ANALYSIS: Cent percent respondents surf the net as the information is gathered from the respondents staying in Bangalore. 1 2 3 Browse the net. study material. mail checking etc. Yes No TOTAL No. There are many purpose of using the net like Railway reservation.5: showing respondents who surf the net No. of Respondents 0 Yes No 100 INTERPRETATION: 100% of the respondent surf the net. Job searching. of Respondents 100 0 100 Percentage 100 0 100 CHART-4.5: showing respondents who surf the net Serial No.
Serial No.6: showing duration of time spent on browsing the net. 1 2 3 4 5 Time 1 Hour 1-2 Hours 2-4 Hours 4-6 Hours TOTAL No.6: showing duration of time spent on browsing the net. of Respondents 12 61 16 11 100 Percentage 12 61 16 11 100 CHART -4. Percentage 11 12 1 Hour 1-2 Hours 2-4 Hours 4-6 Hours 61 16 Advanced Management College 31 Bangalore .A Study on Consumer Behavior of Internet Marketing TABLE-4.
1 2 3 4 5 6 Purpose of Browsing Checking mail Gathering information Entertainment Shopping Other TOTAL No.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 61 % of the respondents are using the net for 1-2 hours 16 % of the respondents using the net for 2-4 hours 11% of the respondents using the for 4-6 hours ANALYSIS: Maximum no. of the respondents uses the net more than 1 hour. Serial No. Case study etc.7: showing the purpose of browsing the net. \ TABLE-4. Now a day’s maximum person likes online shopping. Because internet is very necessary for office work and also for students to downloading examination form. of Respondents 42 25 18 14 1 100 Percentage 42 25 18 14 1 100 Advanced Management College 32 Bangalore .
Percentage 14 18 1 42 Checking mail Gathering information Entertainment Shopping Other 25 INTERPRETATION: 42% respondents use the net for the purpose of checking mail. Very fast increasing the online shopping. Advanced Management College 33 Bangalore .A Study on Consumer Behavior of Internet Marketing CHART-4.7: showing the purpose of browsing the net. 14 % respondents use the net for shopping purpose. 18% respondents use net for entertainment purpose. ANALYSIS: Major number of respondents uses the net for checking of mails and gathering information. 25% respondents use net for gathering information.
8: showing influential impact on purchasing Percentage 15 0 38 Advertisement Friends Different offer Less Price Other 30 17 Advanced Management College 34 Bangalore .A Study on Consumer Behavior of Internet Marketing TABLE-4. Serial No. of Respondents 38 17 30 15 0 100 Percentage 38 17 30 15 0 100 CHART-4. 1 2 3 4 5 6 Influence to buy Advertisement Friends Different offers Less Price Other TOTAL No.8: showing influential impact on purchasing.
9: showing convenient website for online shopping. 15% respondents influence by less price. 1 2 3 4 Convenient for shopping Yahoo. ANALYSIS: Maximum number of respondents influence by Advertisement to shopping the product through internets. Serial No. TABLE-4.com Other TOTAL No. 17% respondents influence by friends. of Respondents 39 29 32 100 Percentage 39 29 32 100 Advanced Management College 35 Bangalore . And giving different offer also influence the consumer to buy the product or services through online.com Freemarket. 30% respondents influence by different offer.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 38% respondents influence by Advertisement.
com which comes under other.9: showing convenient website for online shopping.A Study on Consumer Behavior of Internet Marketing CHART-4.yahoo.com Other 29 INTERPRETATION: For 39% convenient website for online shopping is yahoo.com For 32% convenient website for online shopping is others. Percentage 32 39 Yahoo. Advanced Management College 36 Bangalore .com Freemarket.com For 29% convenient website for online shopping is freemarket.com for online shopping after that free market. ANALYSIS: Maximum numbers of respondents feel more convenient website is www.
A Study on Consumer Behavior of Internet Marketing TABLE-4.10: showing respondents who found purchasing online cost effective.10: showing respondents who found purchasing online cost effective. of Respondents Percentage 1 Yes 38 38 2 No 62 62 3 TOTAL 100 100 CHART-4. Cost effective No. Serial No. Percentage 38 NO YES 62 Advanced Management College 37 Bangalore .
11: showing delivery of products on time.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 38 % respondents agree on. of Respondents Percentage 1 Yes 60 60 2 No 37 37 3 No Response 3 3 4 TOTAL 100 100 Advanced Management College 38 Bangalore . Serial No. Delivery on the Time No. internet marketing is cost effective. internet market is cost effective. ANALYSIS: Either the people are using online purchasing major respondents found that its cost effective. TABLE-4. The customer also saves the time and money 62% respondents not agree on. Because piece of the product and service less than Physical market.
A Study on Consumer Behavior of Internet Marketing
CHART-4.11: showing delivery of products on time. Percentage
3 37 Yes No No Response 60
INTERPRETATION: 62 % respondents are saying, they deliver the products on time. Means maximum respondents are satisfied from the delivery of the product. 37% respondents are saying, they do not deliver the product in time. ANALYSIS: Major respondents are Satisfied with the deliver of the products in time.
Advanced Management College
A Study on Consumer Behavior of Internet Marketing
TABLE-4.12: showing respondent’s complaints handling on time. Serial No. 1 2 3 4 Response to complaints Yes No No Response TOTAL No. of Respondents 54 45 1 100 Percentage 54 45 1 100
CHART-4.12: showing respondent’s complaints handling on time Percentage
1 45 54 Yes No No Response
Advanced Management College
A Study on Consumer Behavior of Internet Marketing
INTERPRETATION: 54 % respondents found that complaints of customer handled on time. 45% respondents found that complaints of customer are not handled on time. 1% respondents has given no response.
ANALYSIS: The complaints placed by the customers were handled in time was satisfied by more than 50% respondents.
TABLE-4.13: showing respondents satisfied from online marketing Serial No. Opinion of availability No. of Respondents Percentage
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they satisfied from the online marketing. ANALYSIS: Less 40% respondents were not satisfied with online marketing.13: showing respondents satisfied from online marketing Percentage 38 Yes No 62 INTERPRETATION: 62 % of the respondents found that.A Study on Consumer Behavior of Internet Marketing CHART-4. Advanced Management College 42 Bangalore . 38 % of the respondents found that they are not satisfied from the online marketing because of delay in delivery. Because of more availability of product choice and providing the product on less price.
A Study on Consumer Behavior of Internet Marketing TABLE-4.14: showing price opinion of products and services Serial No. 1 2 3 4 5 Opinion about price Expensive Affordable Price Fair Low TOTAL No.14: showing price opinion of products and services Percentage 11 20 14 Expensive Affordable Price Fair Low 55 Advanced Management College 43 Bangalore . of Respondents 14 55 20 11 100 Percentage 14 55 20 11 100 CHART-4.
A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 55% of the respondents found that the price of the products or services through online marketing is affordable price. Serial No. TABLE-4. ANALYSIS: More than 50% of the respondents found that the price of the products or services through online marketing is affordable. Affordable price is also one reason for attracting the customers for online shopping. 11% of the respondents found that the price of the product or service through online marketing is low.15: showing impressive market strategies. of Respondents Percentage 1 Yes 76 76 2 No 24 24 3 TOTAL 100 100 Advanced Management College 44 Bangalore . Impressed by online Marketing No. 14% of the respondents found that the price of the product or service through online marketing is expensive. 20% of the respondents found that the price of product or service through online marketing is fair.
A Study on Consumer Behavior of Internet Marketing CHART-4. they are very impressed from online marketing. ANALYSIS: Maximum number of respondents found. we can easily purchase the product of other countries. Because of internet. We can take the ticket of airlines and railways very easily. We can also give the examination.15: showing impressive market strategies Percentage 24 Yes No 76 INTERPRETATION: 76% of the respondents found they are impressed from online marketing. 24% of the respondents are not impressed from online marketing. Advanced Management College 45 Bangalore .
16: showing why respondents are impressed.16: showing why respondents are impressed. of Respondents 24 38 20 13 5 100 Percentage 24 38 20 13 5 100 CHART-4. Percentage 13 5 24 Customization Affordable Price Creative ad Making Fast Delivery No Response 38 20 Advanced Management College 46 Bangalore . Serial No. 1 2 3 4 5 6 Impress by Customization Affordable Price Creative ad Making Fast Delivery No Response TOTAL No.A Study on Consumer Behavior of Internet Marketing TABLE-4.
ANALYSIS: Maximum number of respondents (38%) impressed by affordable price. 1 Yes Making purchase online No. 13% of the respondents are impressed by marketing fast delivery. 20% of the respondents are impressed by creative ad.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 38% of the respondents are impressed by affordable price. The price of product or service is very less than traditional market. TABLE-4. 5% of the respondents are impressed by no response. Respondents 58 of Percentag e 58 2 No 42 42 3 TOTAL 100 100 Advanced Management College 47 Bangalore . Serial No. 24% of the respondents are impressed by customization.17: showing future decision of customer.
42 % of the respondents will not purchase the product or services through online marketing in future. ANALYSIS: Future growth is rapid for internet marketing as many pof the customers preferring the online shopping because of time scarcity. more choice of products etc. Advanced Management College 48 Bangalore . Because of delivery not in time.17: showing future decision of customer Percentage 58 42 Yes No INTERPRETATION: 58 % of the respondents will purchase the product or services through online marketing in future. easy to purchase. less price. Because of the scarcity of timer.A Study on Consumer Behavior of Internet Marketing CHART-4.
1 2 3 4 5 Loyal customers Give Discount coupons Giving Preference to customer sending appropriate gifts Send additional material TOTAL No. Serial No.18: showing respondent’s loyalty. of Respondents 38 29 21 12 100 Percentage 38 29 21 12 100 CHART-4. Percentage 12 21 38 Give Discount coupons Giving Preference to Customer Sends appropriate gifts 29 Send additional material Advanced Management College 49 Bangalore .A Study on Consumer Behavior of Internet Marketing TABLE-4.18: showing respondent’s loyalty.
29% of the respondents loyal to the company those who giving preference to customers.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 38% of the respondents loyal to the company those who give discount coupons. 21% of the respondents loyal to the company those who send appropriate gifts. of Respondents Percentage 1 Easy Download 29 29 2 Colorful with music 20 20 3 Easy to understand 51 51 4 Other 0 0 5 TOTAL 100 100 Advanced Management College 50 Bangalore . ANALYSIS: Maximum respondents are loyal to the company those who give the discounts coupons. Website attracts No. 12% of the respondents loyal to the company those who send additional material. Serial No.19: showing respondents attractiveness to website. This is strategy of promotion of product and company also gets more margins on products TABLE-4.
29% of the respondents are attracted by easy to download. Percentage 0 29 Easy Download Colorful with music Easy to understand Other 20 51 INTERPRETATION: 51% of the respondents are attracted by easy to understand. 20% of the respondents are attracted by colorful with music.A Study on Consumer Behavior of Internet Marketing CHART-4. The customer can easily understand the feature and functionality of the products. ANALYSIS: Online marketing give the more description or detail about products. Advanced Management College 51 Bangalore .19: showing respondents attractiveness to website.
1 2 3 4 Satisfaction level High satisfied Satisfied Dissatisfied TOTAL No. of Respondents 18 79 3 100 Percentage 18 79 3 100 CHART-4.A Study on Consumer Behavior of Internet Marketing TABLE-4.20: showing consumer satisfaction level Percentage 3 18 High satisfied Satisfied Dissatisfed 79 Advanced Management College 52 Bangalore .20: showing consumer satisfaction level Serial No.
3% are dissatisfied. 18% of the respondents highly satisfied from online marketing. ANALYSIS: Maximum number of respondents were satisfied from online marketing.A Study on Consumer Behavior of Internet Marketing INTERPRETATION: 79% of the respondents satisfied from online marketing. Advanced Management College 53 Bangalore .
yahoo. send appropriate gifts and sent interesting reading materials. furniture. Majority of purchases being electronic goods. software’s and air ticket. watches. software.com.A Study on Consumer Behavior of Internet Marketing CHAPTER -5 FINDINGS. Tickets. free market.com e-mark. customization and setting affordable prices were more preferred. The different offers. The most frequent online consumer purchases(in terms of online buyers saying they have purchased in the category ) have been clothing . give discounts. CONCLUSION AND RECOMMENDATIONS FINDINGS: Frequent online customers are students and young professionals who tend to be more affluent and better educated. Websites that are found attractive are those that are easy to understand contain less transactions and billing procedures and are colorful (contain sound). Creative advertisements and close friends influenced the respondents to purchase or created a will to purchase online. and services. books. Companies that focus on making quick delivery.com. electronic goods. gold. Young users use the internet for entertainment and socialization and elder for investment and more serious matters. Customer were found loyal to companies that remember customer preferences. Advanced Management College 54 Bangalore .com. makemytrip. The most convenient websites for online shopping are e-bay.
opportunities and threats. internet marketing in terms of efficiency is currently growing at a slow rate in India. Information regarding opinion of customers about what needs to be improved and added in the future are also provided. Companies face many questions in adopting e-marketing. and area they have to concentrate on to build in depth customer satisfaction especially with regards to their Indian customers. According to this research. knowing how to advertise on the web.A Study on Consumer Behavior of Internet Marketing CONCLUSION: The idea of a digital lifestyle has become more widely understood and experienced by many people and continues to be experienced more pervasively throughout the 21st century. but with 58% of the respondents willing to purchase online in the near future. Generally it presents a clear-cut picture for development of internet marketing. Knowing how to design an attractive web site. This project research has assessed the findings that will help answer three of them. This study has provided useful information in tabular and graphical forms that will help companies that market their product and services through internet to ascertain their strengths. This project research has assessed the effectiveness of internet marketing in Bangalore. The tremendous increase in the number of Internet users has made the industry to grow more. Advanced Management College 55 Bangalore . and knowing how to build sound revenue and profit This project research has also showed companies about the need to become skilled in consumer relationship management. internet marketing is poised to reach higher heights. weaknesses.
Discounts should be given based on customer prospects. Advanced Management College 56 Bangalore . Banner advertisements on small boxes should contain humor. under promise and over-delivery can create customer delight and thus more investment should be made on infrastructures for shipping of goods. hotmail. companies should go for major entertainment and socializing websites like yahoo. Travel agencies should also set up an R&D unit to outshine and be competent enough. Advertising campaigns near colleges and private company areas will be appropriate to reach the target audience. Ease of use.A Study on Consumer Behavior of Internet Marketing RECOMMENDATIONS: The companies that market their products or services through internet should concentrate on designing suitable products that will fit the youth. good navigation schemes should be added to attract new customers and retain existing once. Under price. music and animations to attract audiences.com.com.com. gmail. Customization is an opportunity worth investigating and should be adopted by companies that produce products like laptop computers. While choosing website to screen advertisements. rediffmai. apparels and beauty products. Different offers should also be given by getting into a joint venture with online trading companies. Websites that are attractive on first viewing and interesting enough to encourage repeat visits must be designed by site design experts. Manufacturers of electronic goods and software should highly focus on marketing their products through internet aggressively to reap more profits.com. Companies should remember customer preferences by creating customer database to help deepen customer loyalty and help send out birthday or anniversary cards.
event management. Sponsorships. Special product or promotion offers based on purchasing histories announcements of special events will help companies build in depth customer satisfaction. For clothing companies by offering different size and colors not available in stores.A Study on Consumer Behavior of Internet Marketing A joint venture with online trading community like e-buy. mysimon. Customer retention by increasing customer services like call me buttons where customer can click and his/his phone rings with a customer representative ready to answer questions. Companies can be smart online marketers and avoid channel conflicts by selling the final products in stores and the spare parts online. Sending out news letters.com. freemarket. public relations and charitable gifts can help build brand image for internet marketers. Advanced Management College 57 Bangalore . Allowing products to be returned back to stores.com.com must be adopted to help promote and sell products online. amazon.
may2007. Kotler Philip. Potter. Cooper Donald R. http:// www. Twelth Edition. Published by Dorling Kindersley (India) Pvt. Page no. Business Research Methods. Marketing Management. 4.A Study on Consumer Behavior of Internet Marketing BIBLIOGRAPHY 1. Marketing through E-commerce. Marketing Mastermind. Page No. Schindler Pamela S. 2 Clementi Loop #02-01.google. Turban. Page No. The Tata McGraw-Hill Publishing Company Limited. 275-278. New Delhi. India. 5. Introduction to Information Technology. Singapore 129809. Published by John Wiley & Sons (ASIA) Pte Ltd. 3. 5. Ltd. New Delhi. 2. Ninth Edition. Journal Page No. 5155.com Advanced Management College 58 Bangalore . Second Edition. 423. Rainer.
.…………………………………………………………………. Do you have a Computer? □ □ Yes □ No □ No □ 4-8 hours □ >12 hours □ Gathering information □ Shopping 2.. how many hours do you spend on browsing? □ 4 Hours □ 8-12 hours □ checking mail □ Entertainment □ Other………………………. Gender: Marital status: - □ □ Male Single □ Female □ Married 1.A Study on Consumer Behavior of Internet Marketing Customer Survey on Online Marketing Name:-………………………………………………………………… Age: .. In a week. Occupation:-…………………………………………………………. Do you browse the Net? Yes 3. 4. What influenced you to buy the product or service online? Advanced Management College 59 Bangalore . For what kind of purpose do you browse the net? 5.
………………………………………………………………………… 7. If yes. Are you satisfied with the option of product available online? 12. Did you find purchasing through Internet cost effective? □ Yes □ Yes □ Yes □ yes □ Expensive □ Fair □ Yes 14. Mention companies name or a brand that you know which uses online Marketing.A Study on Consumer Behavior of Internet Marketing □ Advertisement □ Different offers □ other………………………. Whenever you had a complaint was it catered to on time? 11. □ Friends □ less price 6. Which web site do you think is convenient for online shopping? □ Yahoo.com □ Other………………………………………………………………… 8.com □ Freemarket. Are you impressed by the Online Marketing? □ Customization □ Creative ad Advanced Management College . Was the product delivered to you within the promised time? 10. what is it? □ No □ No □ No □ No □ Affordable □ Low □ No □ Affordable price □ making fast delivery 60 Bangalore 9. What is your opinion about the price of product or services? 13.
Please. Why & What? ………………………………………………………………………. In the coming days.. 17. How do you think internet marketing can be Improved ? …………………………………………………………………… …………………………………………………………………… Advanced Management College 61 Bangalore . If no. mention your overall satisfaction level of purchasing online? 20. Why? If yes. will make any purchase online? □ Yes □ No 16.. Give suggestion. □ Give discount coupons □ sends appropriate gifts □ Easy download □ Easy to understand □ High satisfied □ Dissatisfied □ giving preference to customer □ Send additional material □ Colorful with music □ other…………………………… □ Satisfied 18. You will be loyal customers to a company which.A Study on Consumer Behavior of Internet Marketing 15. What kind of website attracts you during online marketing? 19.
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