ECONOMICS PROJECT

TOPIC – EFFECT OF E – SHOPPING ON

CONSUMERS AND RETAILORS

SUBMITTED TO: SUBMITTED BY:

Dr. Mitali Tiwari Rajat pandey
(Assistant Professor Economics) Section B
190101113

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 ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me
during the completion of this project.

My deepest thanks to Lecturer, Ms. Mitali Tiwari the guide of the project for
guiding and correcting various documents of mine with attention and care. She
has taken pain to go through the project and make necessary correction as and
when needed.

I would like to thank Dr. Ram Manohar Lohiya National Law University for
giving me this opportunity to work on this project.

Lastly, I thank my friends for their support, for their help in collecting the
material and for critically going through the project and correcting the mistakes,
without whom the project would have been a distant reality.

I also extend my heartfelt thanks to my family for supporting and guiding me.

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 CONTENTS

S.No Title Page No.

1. Introduction 4
2. Literature Review 5
3. Importance & 6-7
Merits of E -
Shopping
4. Analysis & 8
Interpretation
5. Suggestion 9
6. Conclusion 10
7. References 11

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 1. INTRODUCTION

Purchasing products or services over the Internet, online shopping has attained
immense popularity in recent mainly because people find it convenient and easy
to shop from the comfort of their home or office and also eased from the trouble
of moving from shop to shop in search of the good of choice. Online shopping
is a form of e-commerce which allows consumers to directly buy goods and
services over the internet through a virtual shop. Some of the leading online
stores currently in India are Amazon, Flipkart etc.
Retail is a process of selling goods and services to customers through multiple
channel of distribution. Retail stores may be small or big but they mostly
operate in the same line as “purchasing to sale”. Retail form of business is as
old as civilization and is the most basic form of business. Types of Retail Stores
are like-
The Internet has many advantages over retail stores. Firstly, the choice, whereas
the bookstore at the corner of the street or the nearby cloth store hardly offers
5000 references on its stalls or 20 designs of a particular garment of same size,
Amazon has got hundreds of thousands of variety. Internet is full of online
retailers offering 10 times or even 100 times more products than the average
retailer can possibly dream of. For an e-commerce website, the costs of storing
and referencing a product represent a small fraction of the cost as compared to
the cost of storing and referencing a product for "physical" stores. From the
customer satisfaction and availability of services, online shopping is creating a
major impact upon the retail stores.
Pump India's technological and economic growth has moved into the top gear in
the past few years. According to Google, in India there are more than 100
million Internet users, out of which around 50 million opt for online purchases
and this number is expected to growth in the forth coming years. With such a
large market size, the retail shops to consumer goods, are entering the Web
space to attract potential customers. Even the traditional retailers like Shoppers
Stop, Westside and Pantaloons are looking at the online shopping space for their
continuous growth.

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 2. LITERATURE REVIEW

The research works reviewed during the study are as follows:

1. Anthony d. Miyazakiand Ana Fernandez on “Consumers Perceptions of
Privacy and Security Risk for Online Shopping” have enumerated about
the problems encountered by the consumers while shopping online, and
has suggested the possible ways to safeguard their privacy details.

2. Chayapa Katawetawaraks & Cheng Lu Wang on “Online Shopper

Behavior: Influences of Online Shopping Decision” have shown the
changing attitude of the people due to online shopping. The consumers
prefer the online shopping as a matter of dignity and prestige issue among
the society.

3. EunjuKo and Doris H Kincade, “The Impact of Quick Response

Technologies on Retail Store Attributes” have highlighted the changes to
be done by the retailers in the stores to face the competition.

4. Soyeon Shim, Mary Ann Eastlick and Sherry Lotz on “Assessing The
Impact of Internet Shopping on Store Shopping Among Mall Shoppers
and Internet Users” has proved in their study that the freebies provided by
the telecommunication companies have paved way for the internet users
to shop online.

5. Zan Mo, Yan-Fei Li, Peng Fan on “The Effect of Online Reviews on
Consumer Purchase Behavior” have discovered the truth behind the
changes in the purchasing habit among the youngsters.

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 3. IMPORTANCE AND MERITS OF E – SHOPPING

Merits of E – Shopping :-

1. Convenience. The convenience is the biggest perk. Where else can you
comfortably shop at midnight . There are no lines to wait in or shop
assistants to wait on to help you with your purchases, and you can do
your shopping in minutes. Online shops give us the opportunity to shop
24/7, and also reward us with a ‘no pollution’ shopping experience.

2. Better prices. Cheap deals and better prices are available online, because
products come to you direct from the manufacturer or seller without
middleman being involved. Many online shops offer discount coupons
and rebates as well.

3. More variety. The choices online are amazing. One can get several
brands and products from different sellers all in one place. You can get in
on the latest international trends without spending money on airfare. You
can shop from retailers in other parts of the country, or even the world, all
without being limited by geography.

4. No crowds. If you are like me, you hate crowds when you're shopping.
Especially during festivals or special events, they can be such a huge
headache. Also, it tends to be more chaotic when there are more crowds
out and this sometimes makes us feel rush or hurried.

5. Price comparisons. Comparing and researching products and their prices

is so much easier online. Also, we have the ability to share information
and reviews with other shoppers who have firsthand experience with a
product or retailer.

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Importance of E – Shopping :-

Because of the numerous advantages and benefits, more and more people say
they prefer online shopping over conventional shopping these days. The buyer’s
decision-making process has changed dramatically in recent years. Buyers are
conducting extensive research online before ever speaking to a sales person.
Buyers are also making more direct purchases online and via their smartphone,
never stepping foot into traditional brick-and-mortar locations. The internet
makes doing business much easier and faster. It’s led to changes in the way
people do business with a rapidly growing world wide trend towards online
shopping or e-commerce.

Many people around the world prefer to shop online and buy products from
several brands and companies that they cannot find or are not available for
purchase in their home countries. Nowadays, and with the help of the new
technology and the support of the internet, people from all around the world
started to purchase items online by simply sitting in their homes. Purchasing
items and products through the Web is a very easy task to do. It is now playing a
very important role in everybody’s life especially elderly people, as well as
people with a very busy life schedule. It provides a very comfortable service for
its customers, by being able to save the item in the personal shopping bag, and
buy it later on. Shopping through the Web simply works for people with a valid
credit card, a debit card or an internet bank account.

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 4. ANALYSIS AND INTERPRETATION

Particulars Yes No

Decrease in average sales in the past three

4 1
years

Decrease in profit margin 3 2

Increased discount rates to customers in recent

3 2
times

Discounts demanded by customers while

4 1
making purchase

Timely after sales services of personalized

3 2
nature to customers

Home delivery services to customers 2 3

Increase in window shopping now a days 5 0

1. Many agreed that the turnover and the profit margin of retailers have
administered a falling trend. 


2. Many of the retailers has opinion that the turnover has declined in the
past two years in spite of the special care taken by them with regard to
the availability of the product and the discounts and promotional
activities done by them to push the product to the customer. 


3. Most of the of the retailers agreed that it’s very unfortunate that the
customers are demanding for discount by comparing with the
availability of the product at a discount price through online shopping
so the retailers are unfortunately put in a critical situation. 


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 5. SUGGESTIONS

1. The existing small and medium independent retailers is to closely

examine what changes are taking place in their immediate vicinity 


2. Retailers have to change the attitude towards customers 
 and the market,
fixing their priority as consumer 
 satisfaction. 


3. A retailer should be in the good books of customer by 
 providing better

quality products, fair price and friendly 
 after sales services. 


4. A loyal customer reduces the cost of retailer. All efforts 
 should be put
by retailers to build up the loyalty which in turn will bring a stable sale
and stable customers like bonus points, free insurance, preferred customer
status, cash back schemes and other special offers which satisfy the
customer. 


5. A good and different variety of products in the retail stores acts as a

major motivator for customers to visit a store again and again. For
majority of customers variety comes in the form of having a bakery
within the store, food section, private labels and national brands and
finally a lot of fresh fruits and vegetables. 


6. Retailers should help customers to explore the store. For this shopping
should be made more adventurous by continuously upgrading the product
portfolio, by changing the layout and by providing the touch and feel
experience. 


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 6. CONCLUSION

The retailers are having a tough time in coping with the online shopping trend
which is spread like a virus among most of the people in our country. Thus the
retailers have to cope with the ongoing distraction from the next wave of digital
technologies and will need to prioritize investment in the technologies that will
really add value for their customers or increase the efficiency of their
operations. However in 2017 retailers will need to focus on accelerating change
in their businesses. The best managed retailers can succeed and manage the
peak demand, so it’s vested on the retailer not only to upgrade the shop with
different varieties of products but also to satisfy the customers by all means.
The retailers may have to implement a responsive approach across their
business scale as they try and respond to structural change in the marketplace
and improve innovation, responsiveness and the quality of their delivery. Both
e-stores & retail stores have to survive in their own way. They both are
providing livelihood to thousands of people.

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 7. REFERENCES

1. Anthony d Miyazaki, Ana Fernandez. Journal of Consumers affairs 


2. Chayapa Kataweta waraks, Cheng Lu Wang, Asian Journal of Business Research.




3. Eunju Ko, Doris H Kincade. International Journal of retail and distribution

Management. 


4. Soyeon Shim, Mary Ann Eastlick, Sherry Lotz, Journal of Shopping Centre
Research 


5. Zan Mo, Yan-Fei Li, Peng Fan. Journal of Service Science and Management. 


6.

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