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ACKNOWLEDGEMENT EXECUTIVE SUMMARY EVOLUTION OF COMMERCE USAGES OF e-COMMERCE INTRODUCTION TO ONLINE SHOPPING 20 POINTS TO CONSIDER WHEN SELLING ONLINE e-COMMERCE MARKET SIZE AND TRENDS INDIAN e-COMMERCE MARKET BACKGROUND OF THE STUDY AND LITERATURE REVIEW OBJECTIVE OF THE STUDY AND DETAILS QUESTIONNAIRE ANALYSIS FINDINGS RECOMMENDATION COCLUSION OF THE RESEARCH

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guidance. Department of Business Administration. we would like to thank our family members and friends for their help in completing this term paper. We thank him for his constructive help. proof reading and manuscripting in this term paper. We express our sense of gratitude to Mr. E. University of Lucknow. faculty member. Consumers now like to go and shop online from online shopping vendors. . encouragement and help. A survey has been conducted and deep research work has been done by surveying a targeted consumer class. A project of this nature is surely a result of tremendous support.ACKNOWLEDGEMENT Every work constitutes great deal of assistance and guidance from the people concerned and this particular term paper is of no exception. At last but not the least. Harshit Maurya. The following term paper provides with all the relevant informations for a customer who is going to use e commerce websites for conducting a transaction.commerce websites and its use is increasing rapidly among the users.

which is no more relevant for an ebusiness organization. Percentage was used to identify the level of knowledge of the virtual organization. It can also result in lower security as workers struggle to find ways around the security conditions to enable them to do their jobs. A structural equation model explores the impact of these effects on eventual security levels. It tried to find out the specific purposes for which the virtual organization is used and to determine the perception of a sector of professionals about its effect on their professions and personal development. This study analyzes an information systems user survey to evaluate the tradeoffs between protection and accessibility. HEADNOTE This study investigated and analyzed awareness of the virtual organization and the extent of its use by professionals and management personnel. Over one-third of the respondents report problems with interference from security provisions. Tightening security by making systems more inaccessible can hinder employees and make them less productive. Data were analyzed and a descriptive statistical summary outlines the profile of users. while being exposed to a wide range of vulnerabilities and threats.OBJECTIVE Computer security is a balance between protecting information and enabling authorized access. Frequency analysis measured the level of perception and attitudes of respondents on the virtual organization. The Internet appears to be a very significant driver in changing business environment and in business models changes as well. Most of the respondents indicated that they are aware of the existence of the virtual organization and value it as important and advantageous to their professional careers. More and more organizations perform that change from traditional business to e-business mode. The model. . The study found a positive trend toward the use of the virtual organization among professionals and management personnel. The data for this study hinged on a survey questionnaire. This paper presents a model for e-business information security design that is based on a process-based security paradigm. as well as the paradigm on which it is based. are an alternative for the existing perimeter security paradigm.

it comprises transactions for which Internet acts as a medium for contracting or making payment or for consuming the service/product by the end consumer. 7000 crores by the end of 200708.g. 9210 crores by the end of 2007-08. the size of B2C ECommerce Industry for the year 2006-07 was computed to be around Rs. coupled with consumer s apprehensions towards using their credit cards online.Executive Summary For the purpose of study. 5500 crores for the year 2006-07 and is expected to rise to Rs. Combinations of these three conditions can be as follows Paying online & Consuming Online ( e. the B2C/ C2C E-Commerce market was defined as Buying and selling of products & services on the Internet or on any other application that relies on the Internet. The overwhelming response of the consumers towards this segment is triggered by the entry of low cost carriers. Online Travel Industry is the largest contributor to the B2C E-Commerce Industry. The industry has witnessed an increase in the number of travelers as well as number of travels per traveler. The industry saw an upsurge in the travel aggregators and tour operators. Online gaming) Consuming online & Paying offline ( e. eTailing stands at Rs. who is an individual.g. Books) Another pre-requisite for the study was that the seller of the product/service should be based in India. a growth of about 30% over the current year. they are smaller than online Travel industry as they cater to the niche segments and are faced with a specific set of triggers and barriers. The analysis of the demand side is based on the data captured during survey.g. sized at Rs. 7080 crores. Matrimonial ads) Contracting & Paying online & Consuming offline (e. Travel. 850 crores in the year 2006-07 and contributes maximum to the Online . Moving on to other segments that have been clubbed into Online Non-Travel Industry. The market is expected to reach the mark of Rs. In other words. Based on our discussion with various consumers and internet users. the biggest issue facing this industry is limited penetration of credit cards. thereby bringing affordable travel at doorsteps of Indian travelers. However.

it provides the users flexibility to access large database at the lower costs. Online Classifieds is the second largest contributor to Online Non-Travel industry. there has been a rise in digital downloads to the mobile phone. Along with the PC-based internet access. It is expected to be Rs 1105 crores industry at the end of 2007-08.reports. 255 crores at end of 2007-08. etc. 20 crores in 2006-07 to Rs. Thus. 540 crores at the end of 2006-07. With increase in the mobile subscribers. 820 crores by the end of 2007-08. the mobile-based internet access is expected to drive the growth of B2C and C2C E-Commerce industry in the country.Non-Travel Industry. Since. the category offers the best deals for low-end as well as high end products. this segment is consumer-driven. the growth of B2C E-Commerce industry is inevitable in the country. It is expected to rise to Rs. The size of Online Subscription market is expected to grow by 50% from Rs. 170 crores in 2006-07 to Rs. with continuous efforts towards making online payment systems safer and rise in online shoppers from smaller cities owning to increasing Internet and mobile phone penetration. With the surge in mobile penetration and usage of GRPS enabled mobile handsets. More and more players are entering the market to sell exclusives videos. sale of information online is becoming a success. . The next phase of growth would be marked by localized product offerings and making content available in various Indian languages. The size of Online Classifieds was around Rs. many customers complain about the untimely delivery of products ordered online. However. Owing to elimination of physical costs. research data. the size of digital downloads market is expected to rise from Rs. Though there is no dearth of free data available online. 30 crores at end of 2007-08.

Place and Promotions. Once the marketplace came into existence. the concept of Street Vendors was born. Most of the time. It led to the concept of Mail Order Cataloguing . In a marketplace. the evolution of the Tele shopping networks was inevitable with the development of media vehicles. A slight modification on Price and Place led to the convenience of getting products at their homes. Commerce is function of 4 P s Product. The evolution of money brought with it. Different combinations of 4Ps determine different forms of Commerce. a few pioneers realised that people would be ready to pay extra if they could deliver products at customer s doorsteps. the concept of a marketplace . E-Commerce emerged as the boundary-less trade medium in the era of globalization. The latest generation of commerce is one that can be done over the internet. All these four components play a vital role in a transaction to take place. but also covers: . When the Postal System came into being the sellers decided to cash in on the new opportunity and started using mailers giving description of their products. From here. They can be thousands of miles apart. The term "Electronic commerce" (or e-Commerce) refers to the use of an electronic medium to carry out commercial transactions. but the term eCommerce also covers purchasing mechanisms via Internet (for B-To-B). E-Commerce is not only limited to online sales. Internet provides a virtual platform where sellers and buyers can come in contact for sale and purchase of goods and services. A client who purchases on the Internet is called a cyberconsumer. say milk for grains. This concept delighted the customers and thus. may belong to different parts of the world. might speak different languages.INTRODUCTION Evolution of commerce Commerce has evolved over the centuries. it refers to the sale of products via Internet. Prior to the evolution of money it was a simple barter process where things could be exchanged. Price.

y y y y y y y y Preparation of estimates online Consulting of users Provision of an electronic catalog Access plan to point of sales Real-time management of product availability (stock) Online payment Delivery tracking After-sales service y Barter process y Monetary transactions y Street vendors y Mail order cataloging y Tele shopping y Electronic commerce .

assumed importance. displayed on a website. the Promotion. As the market demands short response time and flexible adaptation to customers' needs. The focus of online promotions is the great deals . brought about by the rapid advances in communication and information technology. has led to the restructuring of the global economic environment and placed new demands on corporate activities. The revolution of communication technology has created the "global village" and affected the way we live and work (19). A series of technological advances have made possible the rapid processing and instant delivery of information and services throughout the world and this in turn. especially because there is no face to face interaction between the buyer and seller. organizations which do not recognize this new discipline may decline and eventually disappear (7). thus giving rise to new styles of administration and management (7). communicating and doing business (17). discounts . Information and communication technology dramatically changed the world scenario in the last three decades of the 20th century. A new organizational communication model that continuously adapts. To survive in this environment. physical products were now electronic products. The new millennium signals the dawn of an exciting electronic information and communication era. Another important P for the e marketer. convenience offered by the eMarketers. The Physical delivery got converted to electronic delivery. The profound technological developments in computer applications in recent years have created a new concept of organizational reality. As the world scenario changes with the development of new technologies. electronic data interchange (EDI) and videoconferencing have helped organizations develop innovative business methods. the Distribution Channel has started to assume new meaning to the B2C and C2C eMarketer. The new information and communication technologies such as Internet. flexibility and responsiveness are the important issues of today's corporate organizations. organizations must learn to be flexible and responsive to customers' needs. Communication for business and other organizational purposes in the 21st Century will be different from communication models of the industrial age. even the transaction was purely electronic. time and speed become important in our daily life (14). a new concept of . electronic mail. In this 21' Century. With options of paying online through debit and credit cards. Internet has the ability to reach the customer s home. Quality. Technological advances have opened new and exciting avenues that challenged the traditional ways of interacting. enhance coordination and improve interaction with customers (1). perhaps one of the several ways to face market challenges is to continue to reinvent and ensure the best means of communicating with customers (12).Since. adjusts and innovates will be essential. which have enabled those organizations to reduce cost.

The PC literate population is on a fast growth curve having grown 100% in 2006 over 2004. as it is . the concept of the virtual organization is not sufficiently clear to business organizations that are unfamiliar with conducting business and sharing resources over the networked corporation. Some of the key variables that need to be understood are the proportion of computer literates. The virtual organization is a new phenomenon in organizational design and the corporate model of the future. frequency of access to the internet. network of independent companies linked by information and communication technology to share skills. To correctly understand the likely growth path for E-Commerce in India it is imperative to understand the internet ecosystem in the country. purpose of internet access etc. However. The virtual organization is an example of a flexible network organization that meets the customer's needs. Byrne (5) states that the virtual organization is a temporary. A Claimed or Ever Internet User is defined as one who has ever accessed Internet. A subset of Claimed Internet users. Active Internet Users are defined as those who have accessed Internet at least once in the last one month. E-Commerce. or permanent. the E-Commerce Industry in India was worth Rs 7080 crores at the end of 2006-07. internet penetration. A correct mapping of these would help in understanding the overall framework of ECommerce in the country. They are the regular users of Internet and are aware of the recent trends and applications emerging on the Internet. Though in India overall penetration is still low the important factor is that a critical mass of users is shaping up which will fuel rapid growth over the next 3-4 years. access internet more frequently and surf noncommunication based applications and advanced online applications like gaming. they tend to spend more time online. Is it big enough? How much is it expected to grow? The adoption and usage of E-Commerce in the country is a function of the overall environment for Internet usage in a country. The population of Active Internet Users was 21 million in March 2006. However. As these Internet Users mature with respect to exposure and awareness of internet.flexible network organizations has emerged. costs and access to one another's market. Usage Of E-Commerce According to the survey conducted among the Industry players. etc.

Internet usage in the country is still driven by email and information search. Though in India overall penetration is still low the important factor is that a critical mass of users is shaping up which will fuel rapid growth over the next 3-4 years. however. the interesting part is that out of the 13. 5. . However.5% people do online shopping especially products like Books.2% use the internet to buy travel tickets. and 5% people deal in stocks and shares through the internet. Though the percentage contribution of E-Commerce is almost same over the years.14. the number of Internet users using E-Commerce is growing rapidly E-Commerce in India. September 2007.2 million internet users across 26 cities covered in I-Cube 2006. (Syndicated Research of e technology group @IMRB International). Gifts etc. Flowers. E-Commerce is still not the key driver of the internet.evident from the charts below. The PC literate population is on a fast growth curve having grown 100% in 2006 over 2004.

How did you come across an e-commerce site? (a) Word of mouth (b) Newspaper (c) Friends (d) Search engines 6. Which age bracket do you fall into? (a) 18 ± 30 (b) 31 ± 45 (c) 46 ± 60 2.QUESTIONNAIRE NAME:- 1. Please specify which feature of an e-commerce site attracts you? (a) Content (b) Visual appearance / layout (c) Products (brands) 5. Which option best describes your general internet usage? (a) Very often (everyday) (b) Once a week (c) Once a month (d) Rarely 4. How comfortable do you feel using internet? (a) Very comfortable (b) Somewhat comfortable (c) Uncomfortable (d) Somewhat uncomfortable (d) 60+ 3. What is the key feature of an e-commerce site product? (a) Overall quality (b) Value (c) Purchase experience (d) Usage experience .

Would you recommend an e-commerce site? (a) Very likely (b) Somewhat likely . Why is e-purchase not so popular? (a) Too complicated to place an order (b) Easier to purchase locally (c) Not familiar with the vendors (d) Security and privacy issues (c) Others (tickets) (d) 12. Most recently you purchased online? (a) Books/ CDs (b) Cloths / apparels Nothing 8. What kind of payment mode you prefer? (a) Online payment (PayPal) (b) Offline payment (c) Credit card (d) Visa / MasterCard 9. Online trading sites are? (a) Very attractive (b) Average (c) Not very attractive (d) Not attractive at all 11. Do you feel internet shopping is good substitute of traditional shopping? (a) Yes (b) No (c) Undecided 13.7. Have you done an e-billing transaction for? (a) Electricity bill (b) Telephone/mobile bill (c) Income tax (d) E-reservation 10.

Your valuable suggestions on how to improve an e-commerce site:- .(c) Somewhat unlikely (d) Not at all 14. do you feel that usage of ecommerce sites for shopping would increase rapidly in the coming years? (a) Yes (b) No 15. As Internet accessibility is increasing in India.

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