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A COMPREHENSIVE PROJECT REPORT ON

“IMPACT OF E-COMMERCE PLATFORM ON CONSUMER’S


MINDSET.’’

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

BATCH (2020-2022)

Submitted by Enrollment No.

SAANI SOLOMON 200614200056

MAJJI LOKESH 200614200324

MBA SEMESTER-III

Under Guidance of

PROF. JAYPRAKASH LAMORIYA

Assistant Professor

Submitted to:

PARUL UNIVERSITY

FACULTY OF MANAGEMENT STUDIES

P.O. Limda, Tal. Waghodia District Vadodara – 391760

ii
DECLARATION

I, SAANI SOLOMON, Enrolment No. 200614200056 & MAJJI LOKESH,


Enrolment No. 200614200324 from (Parul institute of Engineering and Technology)
(MBA), hereby declare that the report for ‘‘comprehensive project’’ entitled as
“IMPACT OF E-COMMERCE PLATFORM ON CONSUMER’S MINDSET”,
is a result of our own work and our indebtedness to other work publication,
references, if any, have been duly acknowledge. The work carried out under guidance
of Prof. Jayprakash Lamoriya.

Date: Name of the student

SAANI SOLOMON

MAJJI LOKESH

MBA Semester 3rd

Parul University, Vadodara.

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INSTITUTE CERTIFICATE

It is hereby certified that the Comprehensive Project Report submitted in partial


fulfillment of Master of Business Administration at Parul Institute of Engineering and
Technology (MBA), Vadodara, by Saani Solomon, Enrolment No. 200614200056 &
Majji Lokesh EnrolmentNo.200614200324 has been completed under my guidance
and is satisfactory.

Date:

Signature of the Guide Signature of the Director

Prof. JAYPRAKASH LAMORIYA Dr. BIJAL ZAVERI

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PREFACE

We the students of M.B.A. (Semester- III), Parul University Faculty of Management


Studies, Vadodara.

As a part of our course We had to go through a comprehensive project report on any


topic (my topic is Impact of E-Commerce Platform On Consumer’s Mindset) to get
the practical aspect of business management.

The purpose of this project to acknowledge the proper information about E-


Commerce and what is the impact of E-Commerce Platform towards the consumers.

In this report we had presented my great experience in the form of words.

The project flows logically of questionnaire with customers and employees to collect
information require for project. We have tried my upmost to make this report a reader
friendly and try to fulfil my objective of study.

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ACKNOWLEDGEMENT

The success of our research report would not hint at any one individual, but it was a
consolidated effort on the part of all who contributed to this report.
We are thankful to Prof. Dr. Bijal Zaveri (Dean, MBA) for providing us guidance and
the opportunity to gain both theoretical and practical knowledge in the field of rural
marketing as a part of marketing and extending their full support.
We are also thankful to Prof. Jayprakash Lamoriya (Prof.(MBA)) who have also helped
us and supported us as faculty guide.
We are greatly indebted to Prof., Guide, who has been a continuous source of
inspiration right from the conception of the project to its completion.
Last but not least; I would like to thank my parents for their moral support throughout
the project.

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TABLE OF CONTENTS

SR. NO. TOPICS PAGE NO.

Chapter I:
1.1introduction
1.2 History of E-Commerce
1.3 Growth of E-Commerce
1 1.4 Strategies Used by 07-18
E-commerce sector
2. Major companies in E-
Commerce
3. Major Products on E-
commerce Platform

Chapter II:
2 4.1Literature Review 19-27
4.2 Problem Definition
4.3 Background of the Study
4.4 Problem Statement the
Study
4.5 Objectives of the Study
4.6 Scope of the study
4.7 Hypothesis
Chapter III:
Research Methodology
5.1 Research Design
5.2 Source of data and data
3 collection method 28-36
5.3 Population
5.4 Sampling Unit:
5.5 Sampling Frame
5.6 Sample Size
5.7 Sampling Method
5.8 Limitations
5.9 Data collection instrument
5.10Annexure:
5.11 Bibliography

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CHAPTER 1:
INTRODUCTION

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1.INTRODUCTION

E- COMMERCE

The term electronic trade or web based business alludes to such a business exchange that includes
the exchange of data through the web. By definition it covers an assortment of business exercises
which use web as a stage for either data trade or financial exchange or both on occasion. Internet
business implies utilizing the Web and the web for business exchanges or business exchanges,
which commonly include the trading of significant worth (e.g. cash) across authoritative or
singular limits as an end-result of items and administrations

1.2 HISTORY OF E-COMMERCE


The history of E-commerce begins with the invention of the telephone at the end of last century. EDI
(Electronic Data Interchange) is widely viewed as the beginning of ecommerce if consider e-commerce
as the networking of business communities and digitalization of business information. Large
organizations have been investing in development of EDI since sixties. It has not gained reasonable
acceptance until eighties. The meaning of electronic commerce has changed over the last 30 years.
Originally, electronic commerce meant the facilitation of commercial transactions electronically, using
technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These
were both introduced in the late 1970s, allowing businesses to send commercial documents like
purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller
machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another
form of E-commerce was the airline and railway reservation system. Online shopping, an important
component of electronic commerce was invented by Michael Aldrich in the UK in 1979. The world’s
first recorded business to business was Thomson Holidays in 1981. The first recorded Business to

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consumer was Gateshead SIS/Tesco in 1984. During the 1980s, online shopping was also used
extensively in the UK by auto manufacturers such as Ford, General Motors and Nissan. The systems
used the switched public telephone network in dial-up and leased line modes.
Although the Internet became popular worldwide around 1994 when the first internet online
shopping started, it took about five years to introduce security protocols and DSL allowing
continual connection to the Internet. By the end of 2000, many European and American business
companies offered their services through the World Wide Web. Since then people began to
associate a word “E-commerce” with the ability of purchasing various goods through the Internet
using secure protocols and electronic payment services.

The major different types of E-Commerce are:


❖ Business-to-Business (B2B).
• Business-to-business (B2B), also called B-to-B, is a form of transaction between
businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a
retailer. Business-to-business refers to business that is conducted between companies,
rather than between a company and individual consumer.
❖ Business-to-Consumer (B2C).
• Business-to-consumer refers to the process of businesses selling products and services
directly to consumers, with no middleperson. B2C is typically used to refer to online
retailers who sell products and services to consumers through the Internet.

❖ Business-to-Government (B2G).
• Business to government (B2G) is the sale and marketing of goods and services to federal,
state, or local agencies.
❖ Consumer-to-Consumer (C2C).
• Customer to customer (C2C) is a business model whereby customers can trade with each
other, typically in an online environment.
❖ Mobile Commerce (M-Commerce).
• Mobile commerce, also known as m-commerce or M-commerce, is the use of wireless
handheld devices like cell phones and tablets to conduct commercial transactions online,
including the purchase and sale of products

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RETAIL E-COMMERCE SALES IN INDIA

RETAIL eCOMMERCE SALES IN INDIA,2015-2020

90
80
70
60
50
IN %

85
40 75
30 54
20 32
25
10 10
0
2015 2016 2017 2018 2019 2020
SALES IN BILLION 10 25 32 54 75 85
IN BILLIONS

The introduction of the government’s Digital India initiative hand in hand with the increasing
internet penetration over the recent years, resulted in the country’s digital population amounting to
approximately 688
million active users as of January 2020. The traffic in the world’s second largest internet market at
this stage was largely dominated by mobile internet users.
The causes and their effects The arrival of Reliance Jio services in 2007, provided people in the
country with schemes and subsidies that were not only attractive, but easily affordable, irrespective
of their income levels and socio-economic classes. The impact was almost instant, with over 60
percent of the mobile data traffic coming from Jio services in less than ten years of its launch. The
future holds greater promise The number of internet users had increased over the years in rural as
well as the urban areas . It seemed likely from previous trends that the launch of the Jio fixed line
broadband service, called Giga fiber might aid in the already increasing internet penetration across
the country. Along with the demonetization in late 2016, digitization penetrated the country at a
staggering rate, nearly 50 percent in 2019.

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1.3 GROWTH OF THE E-COMMERCE INDUSTRY
E-commerce has transformed the way business is done in India. The Indian E-commerce market is
expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the
growth for the industry has been triggered by an increase in internet and Smartphone penetration.
The ongoing digital transformation in the country is expected to increase India’s total internet user
base to 829 million by 2021 from 636.73 million in FY19. India’s internet economy is expected to
double from US$ 125 billion as of April 2017 to US$ 250 billion by 2020, backed primarily by E-
commerce. India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$
120 billion in 2020, growing at an annual rate of 51 per cent, the highest in the world.
Despite being the second-greatest user base in world, simply behind china (650 million, 48% of
people), the penetration of online business is low diverged from business parts like the US (266
million, 84%), or France (54 m, 81%), anyway is creating at a striking rate, including around 6
million new competitors reliably. The business arrangement is that improvement is at an
articulation point. In India, cash down is the most preferred portion strategy, storing up 75% of the
e-retail works out. Enthusiasm for overall purchaser things (checking long-tail things) is building
up significantly snappier than in-country deftly from affirmed shippers and online business
commitments. Greatest online business associations in India are Flipkart, Snapdeal, Amazon India,
paytm.

Market size
The Indian online grocery market is estimated to reach US$ 18.2 billion in 2024 from US $1.9
billion in 2019, expanding at a CAGR of 57%. India's e-commerce orders volume increased by
36% in the last quarter of 2020, with the personal care, beauty and wellness (PCB&W) segment
being the largest beneficiary. India's consumer digital economy is expected to become a US$ 800
billion market by 2030, growing from US$ 537.5 billion in 2020, driven by strong adoption of
online services such as e-commerce and edtech in the country.
Propelled by rising smartphone penetration, launch of 4G network and increasing consumer
wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion in 2017. Online retail sales in India is expected to grow 31% to touch US$ 32.70
billion in 2018, led by Flipkart, Amazon India and Paytm Mall.
Indian consumers are increasingly adopting 5G smartphones even before roll out of the next-gen
mobile broadband technology in the country. Smartphone shipments reached 150 million units and
5G smartphone shipments crossed 4 million in 2020, driven by high consumer demand post-
lockdown. According to a report published by IAMAI and Kantar Research, India internet users
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are expected to reach 900 million by 2025 from ~622 million internet users in 2020, increasing at a
CAGR of 45% until 2025.
In festive season CY20, the Indian e-commerce GMV was recorded at US$ 8.3 billion, a
significant jump of 66% over the previous festive season. Similarly, the Indian e-commerce market
recorded ~88 million users in festive season CY20, a significant jump of 87% over the previous
festive season.

1.4 DEVELOPMENTS/ STRATEGIES USED BY DIFFERENT E-


COMMERCE SECTORS
Some of the major developments in the Indian e-commerce sector are as follows:

• Flipkart, India's e-commerce powerhouse, announced in July 2021 that it has raised US$ 3.6
billion in new funding from various sources including sovereign funds, private equities and
Walmart (parent company).
• In June 2021, Flipkart added a new fulfilment centre (FC) in Dankuni, West Bengal. The FC is
spread over 2.2 lakh sq. ft. and has a potential to create ~3,500 direct jobs.
• In June 2021, Grofers, the grocery delivery start-up, reportedly entered the unicorn club, after
raising US$ 120 million from Zomato, the food delivery platform.
• In June 2021, Mastercard invested an undisclosed amount in Instamojo, a payments firm, to help
digitise online stores and process their payments more seamlessly.
• In May 2021, Amazon introduced a video streaming service within its shopping app called
MiniTV for users in India. MiniTV features web series, comedy shows and content on tech news,
food, beauty and fashion.
• In May 2021, Flipkart strengthened its grocery infrastructure to cater to customer safety and
demand across India. In this quarter, it is planning to further expand its fulfilment centre capacity
for grocery by over 8 lakh square feet across Delhi, Kolkata, Chennai, Coimbatore and Hyderabad.
• In May 2021, Flipkart announced that it is in talks with sovereign funds, private equity majors
and other investors to raise up to US$ 2 billion at a valuation of US$ 30 billion.
• In April 2021, Flipkart announced a commercial alliance with Adani Group to improve the
company's logistics and data centre capabilities and create about 2,500 direct jobs.
• In April 2021, Flipkart announced to acquire Cleartrip, an online travel technology firm.
Flipkart announced to purchase 100% shareholding of Cleartrip as the company expands its
investments to broaden its digital commerce offerings for customers.

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• In April 2021, Kirana commerce platform ElasticRun raised US$ 75 million in a round led by
existing investors—Avataar Venture Partners and Prosus Ventures.
• In March 2021, Amazon acquired Bengaluru-based retail tech start-up Perpule for Rs. 107.6 crore
(US$ 14.5 million).
• In March 2021, Purplle, an online beauty store, raised US$ 45 million from Sequoia Capital
India, Verlinvest, Blume Ventures and JSW Ventures.
• In March 2021, Captain Fresh, a B2B marketplace for seafood, raised US$ 3 million in seed
capital led by Matrix Partners India and Ankur Capital.
• In March 2021, the Confederation of All India Traders (CAIT), which represents 80 million
traders and 40,000 trader associations, announced the launch of a mobile app for its e-commerce
portal, ‘Bharat E-market’. The association aims to get more small traders to sell online easily
through smartphones.
• In February 2021, Flipkart partnered with Maharashtra State Khadi & Village Industries Board
and Maharashtra Small Scale Industries Development Corporation to bring local artisans and small
and medium businesses into the e-commerce ecosystem.
• In February 2021, Zomato entered into an agreement with the Ministry of Housing and Urban
Affairs (MoHUA) to introduce 300 street food vendors on its portal.
• In February 2021, Flipkart Wholesale, the digital B2B marketplace of Flipkart Group will offer
grocery on its app with an aim to provide kiranas and small retailers one-stop access to a wide
selection of products.
• In February 2021, Udaan, a B2B e-commerce firm, announced to expand its warehouse
capacity (by 5x) to 50 million sq. ft. across several states in the next 7-8 years.
• In January 2021, Flipkart introduced SuperCoin Pay to strengthen its SuperCoin rewards
programme by allowing customers to pay through SuperCoins at >5,000 retail outlets across the
country.
• In January 2021, The Khadi and Village Industries Commission (KVIC) unveiled
eKhadiIndia.com, an e-commerce portal, which will comprise >50,000 products, ranging from
apparel to home décor.
• In January 2021, the B2B e-commerce platform, Udaan raised US$ 280 million (~Rs. 2,048
crore) in additional financing from new investors—Octahedron Capital and Moonstone Capital.
Prior to this, in October 2019, the company raised US$ 585 million (~Rs. 4,280 crore) from
Tencent, Altimeter, Footpath Ventures, Hillhouse, GGV Capital and Citi Ventures. It is likely to
deploy the latest fund towards continued market creation of B2B e-commerce in India and digitise
more small businesses across the country.
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❖ Government initiatives

• Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective
implementation of such programs will likely support growth of E-commerce in the country. Some
of the major initiatives taken by the Government to promote E-commerce in India are as follows:

• As of July 20, 2021, the Government e-Marketplace (Gem) portal served 7 million orders
worth Rs.122,405 crore (US$ 16.39 billion) from 2.2 million registered sellers and service
providers for 53,193 government buyers.
• In a bid to systematise the on boarding process of retailers on e-commerce platforms, the
Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly planning to utilise
the Open Network for Digital Commerce (ONDC) to set protocols for cataloguing, vendor
discovery and price discovery. The department aims to provide equal opportunities to all
marketplace players to make optimum use of the e-commerce ecosystem in the larger interest of
the country and its citizen.
• National Retail Policy: The government had identified five areas in its proposed national retail
policy—ease of doing business, rationalisation of the licence process, digitisation of retail, focus
on reforms and an open network for digital commerce—stating that offline retail and e-commerce
need to be administered in an integral manner.
• The Consumer Protection (e-commerce) Rules 2020 notified by the Consumer Affairs
Ministry in July directed e-commerce companies to display the country of origin alongside the
product listings. In addition, the companies will also have to reveal parameters that go behind
determining product listings on their platforms.
• Government e-Marketplace (GeM) signed a Memorandum of Understanding (MoU) with
8Union Bank of India to facilitate a cashless, paperless and transparent payment system for an
array of services in October 2019.
• Under the Digital India movement, Government launched various initiatives like Umang,
Start-up India Portal, Bharat Interface for Money (BHIM) etc. to boost digitisation.
• In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-ups to
register at public procurement portal, GeM, and offer goods and services to government
organisations and PSUs.
• In October 2020, amending the equalisation levy rules of 2016, the government mandated
foreign companies operating e-commerce platforms in India to have permanent account numbers

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(PAN). It imposed a 2% tax in the FY21 budget on the sale of goods or delivery of services
through a non-resident ecommerce operator.
• In order to increase the participation of foreign players in E-commerce, Indian Government hiked
the limit of FDI in E-commerce marketplace model to up to 100% (in B2B models).
• Heavy investment made by the Government in rolling out fiber network for 5G will help boost E-
commerce in India.

2. INDIAN ECOMMERCE MARKET (MAJOR COMPANIES IN THE


INDUSTRY)

1. Amazon Development Centre India Pvt. Ltd.

• Amazon.com, Inc. often referred to as simply Amazon is American electronic commerce


and cloud computing company with headquarters in Seattle Washington. It is the largest
Internet-based retailer in the world by total sales and market capitalization. It is one of the
Top 10 E-commerce companies in India. Amazon.com started as an online bookstore, later
diversifying to sell DVDs, Blu-rays CDs, video downloads/streaming, MP3
downloads/streaming, etc. Some of the specific website features of Amazon.com are as
follows-

• Reviews- It gives you the option to write product reviews. Many are benefiting from the
product reviews given on amazon.com. Amazon product reviews are helping customers to
take decision-related to purchase.

• Content Search- “Search Inside the Book” is a feature that allows customers to search for
keywords in the full text of many books in the catalog.

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• Third-Party Sellers- Amazon is also working through third-party sellers. It also runs an
associate program in which the third party is allowed to put Amazon product links. The
associate gets a commission if the link generates sales.

2. Grofers India Pvt. Ltd.

• Grofers was founded in the year 2013 by Saurabh Kumar and Albinder Dhindsa. The leading
online grocery delivery platform is headquartered in Gurgaon, Haryana. The company focuses
on delivering groceries, fresh fruits, and vegetables, mobiles and accessories, kitchenware,
books to customers.

3. Flipkart Internet Pvt. Ltd. (Walmart)

• It is one of the Top 10 E-commerce companies in India. Flipkart Internet Pvt. Ltd was founded
in the year 2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore
but has its headquarters in Bangalore. Flipkart has launched its own product range under the
name “DigiFlip” with products including tablets, USBs, and laptop bags. The company is
leading the e-commerce Industry with several product categories. It has also launched several
in-house products.

4. Nykaa E-Retail Pvt. Ltd.

• Nykaa was founded in the year 2012 by Falguni Nayar. She was formerly working as managing
director at Kotak Mahindra Capital Company. The company is headquartered in Mumbai,
Maharashtra. It is a Mumbai-based multi-brand beauty retailer that is selling cosmetics and
wellness products for women. The company is one of the Top 10 E-commerce companies in
India.

5. Think & Learn Pvt. Ltd. (Byjus)

• Byjus was founded by Byju Raveendran and Divya Gokulnath in 2011. The Byjus is a leading
multinational educational technology company based in Bangalore. The company offers
educational content for students from classes 1 to 12. It also trains students for examinations in
India such as IIT-JEE, NEET, CAT, IAS, and international examinations such as GRE and
GMAT.

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6. Zomato Ltd.

• Zomato is a multinational restaurant aggregator and food delivery company. It was founded by
Deepinder Goyal and Pankaj Chaddah in Gurgaon in 2008. Its initial name was “Foodiebay”.
The company was renamed Zomato in 2010. Zomato provides information, menus, and user
reviews of restaurants as well as food delivery options from partner restaurants in select
cities. As of 2019, the service is available in 24 countries and in more than 10,000 cities.

7. Just Dial Ltd.

• Justdial Ltd was founded in the year 1996 by V.S.S Mani. It is headquartered in Mumbai,
Maharashtra. It is one of the Top 10 E-commerce companies in India. Its offices are located in
all top Indian Cities. The Company offers its services across various platforms, such as voice,
Web, mobile Internet, and mobile applications. It offers an array of search plus services,
including order food online, book a doctor’s appointment online, book movie tickets online,
book a cab/flight/bus online, order groceries online, schedule a laundry pick-up online and
schedule a courier pick-up online, among others.

8. MakeMyTrip Ltd.

• The Indian travel Company – MakeMyTrip is known for its strong online presence. The
company provides the entire gamut of travel services including flight, holiday packages, tickets,
hotel booking, etc. It provides travel packages to all tourist locations. It has launched its travel
apps. India’s top e-commerce company was founded in 2000 by Deep Kalra. The company has
also presented internationally through offices in Sydney and New York City.

9. Myntra Designs Pvt. Ltd.

• Myntra is one of the Top 10 E-commerce companies in India. It is a leading online fashion
store offering products for men and women both in all ranges. The company is headquartered
in Bengaluru, Karnataka. It was launched in the year 2009. It has gained success in a short
span of time. The company was founded in 2007 to sell personalized gift items.

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3. MAJOR PRODUCTS ON E-COMMERCE PLATFORM

1. Fashion items

2. Trips and tourism

3. Tech products

4. Second-hand sales

5. Books and Music’s

6. Educational Courses

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CHAPTER II:

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4. 1LITRATURE REVIEW

Choong Y. Lee (June 2003) Studied on A New Marketing Strategy for E-Commerce
The Internet is not a new concept it has been around for over 30 years. The U. S. government
developed the Internet to do research and to connect university computers throughout the country.
In the early 1980’s, the government split the Internet into two sections, one for government use and
one that was designed to promote education and research. Since that time the Internet has boomed,
reaching over 30 million households and organizations around the world. As the Internet expanded
it moved into doing business orientated functions, such as selling products over the Internet. This
concept has become known as e-commerce. E-commerce today represents a 300-billion-dollar
industry. This is why it is an important area to be concerned with from a business’s standpoint. This
huge market is an awesome place for organizations to promote themselves and to contract business
through. Since the expansion of e-commerce, organizations have run themselves thin; the demand
from customers is so great, that many sites can’t keep up with the demand. Not being able to match
the demand in the future will destroy the confidence of customers, in this already intangible means
of commerce. For this means of commerce to continue to attract customers and keep them, they
need to focus on satisfying each customer. On the other hand, there is fierce competition and
creating demand is essential for many companies to survive. Applying the marketing mix to e-
commerce issues, recommendations can be drawn.
There are numerous articles that deal with both the marketing mix and e-commerce, but none
attempt to combine them. According to Marcia Jedd, the biggest problem with e-commerce now
and in the future is delivery (Jedd, 2000). Residential deliveries cost delivery companies three times
as much as deliveries to business, because residential areas are less dense (Jedd, 2000). Also
dealing with delivery, the residential deliveries are much more expensive due to inability to create
economies of scale (Jedd, 2000). Some experts believe that information technology is a must in
improving logistics and supply chains (Ayers, 1999). In recent years, numerous types of
information systems have been developed to increase efficiency of logistics, such Material
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permission from the publisher at Publisher@InformingScience.org New Marketing Strategy for E-
Commerce 302 as warehousing, inventory, and delivery operations (Ayers, 1999).

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It is obvious there is a huge market in e-commerce, and there is a definite need for effective
management. The only way for a company online to be successful in the long run is dealing with
problems and making corrections. With many barriers involved in e-commerce, companies must be
able to effectively and efficiently manage each phase of the marketing mix. Companies can’t afford
to just focus on two or three areas. This is not enough. Focusing on just product and place, will not
accomplish goals in the long run. Each component must be evaluated periodically and managed
effectively. The reason why evaluating each phase periodically, is that with such a diverse and
technology driven area, elements are constantly changing. Scanning the environment is a must to
stay competitive and efficient. In conclusion, the company can only be as good as its weakest link,
each area is as important as the other is, integration among the four areas is vital.

Dr. Prafullkumar N. Tayade(March 2020) studied on (ROLE AND IMPACT OF E-


COMMERCE IN BUSINESS AND TRADES)
E-commerce is a paradigm shift. It is a ``disruptive” innovation that is radically changing the
traditional way of doing business. Electronic commerce is a type of business model, or segment of
a larger business model, that enables a firm or individual to conduct business over an electronic
network, typically the internet. E-commerce is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the Internet. These business
transactions are business-to-business, business-to-consumer, consumer-to-consumer or consumer-
to-business. The term e-tail is used in reference to transactional processes around online retail.
Ecommerce is conducted using a variety of applications, such as email, fax, online catalogs and
shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web services. It can
be thought of as a more advanced form of mail-order purchasing through a catalog. Ecommerce is
the movement of business onto the World Wide Web. The effects of e-commerce are already
appearing in all areas of business, from customer service to new product design. It facilitates new
types of information based business processes for reaching and interacting with customers like
online advertising and marketing, online order taking and online customer service.
The objectives of present study are: 1. To understand the present status and trends of E-Commerce;
and 2. To reveal the key variables influencing the increased usage of E-Commerce
Challenges of E-commerce in India has less credit card population, lack of fast postal services in
rural India. Accessing the Internet is currently hindered down by slow transmission speeds,
frequent disconnects, cost of Wireless connection and wireless communication standards over
which data is transmitted.
Growth of e-commerce depend to a great extent on effective IT security systems for which
necessary technological and legal provisions need to be put in place and strengthened constantly.
While many companies, organizations, and communities in India are beginning to take advantage

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of the potential of e-commerce, critical challenges remain to be overcome before e-commerce
would become an asset for common people. With the explosion of internet connectivity through
mobile devices like Smartphone and tablets, millions of consumers are making decisions online and
in this way enterprises can build the brand digitally and enhance productivity but government
policies must ensure the cost effective methods/solutions. Ecommerce in India is destined to grow
both in revenue and geographic reach. The challenge of establishing consumer trust in ecommerce
poses problems and issues that need further research

Keshav Kansana (ITM University) & Dr. Shahid Amin Bhat (ITM University) February 2016
Studied on A Review Paper on E-Commerce

E-commerce means electronic commerce. It means dealing in goods and services through the
electronic media and internet. E-commerce involves carrying on a business with the help of the
internet and by using the information technology like Electronic Data Interchange (EDI). E-
Commerce relates to a website of the vendor on the Internet, who trades products or services
directly to the customer from the portal. The portal uses a digital shopping cart or digital shopping
basket system and allows payment through credit card, debit card or EFT (Electronic fund transfer)
payments.
A more complete definition is: E-commerce is the use of electronic communications and digital
information processing technology in business transactions to create, transform, and redefine
relationships for value creation between or among organizations, and between organizations and
individuals (C. Nisha and G. Sangeeta, 2012).

E-commerce is a boom in the modern business. It is a paradigm shift influencing both marketers
and the customers. Rather e-commerce is more than just another way to boost the existing business
practices. It is leading a complete change in traditional way of doing business. This significant
change in business model is witnessing a tremendous growth around the globe and India is not an
exception. Moreover, E-Commerce has every potential to curb the pollution and thus producing
significant influences on the environment

Dr. GAGANDEEP K NAGRA* & Dr. R .GOPAL (June 2013) studied on An study of
Factors Affecting on Online Shopping Behavior of Consumers
said that Indian consumers as a whole spend about 55% of the total consumption expenditure on
food items. According to a survey conducted by ORG, the expenditure on non-food items has

22
recorded large growth that the expenditure on food items. Consumers decide whether, what,
when, from whom, where and how much to buy. However, a lot of differences concerning
digital buying have been discovered due to the various consumers’ characteristics and the types
of provided products and services. Pizza Hut also opened an online pizza shop, while eBay and
Amazon took the notion of digital shopping to a completely innovative level. Digital shopping
began in full action since the year 1996. Digital consumers tend to be better educated. Higher
computer literacy makes internet shopping smarter. Alireza Mohammadpour, Taher Roshandel
Arbatani explained E-commerce improves communication and open economy at national and
international level, changing business method and changing traditional markets to its new forms.
One of the new purchase methods with great advantages is e-shopping. Now, the majority of
transactions are done by this method all over the world. Social media marketing as a developing
phenomenon plays an important role in the tendency of e-shopping of customers. Social media
are those available easily and they lead to communication development. The main question of
the present study is whether value capital, relational capital and brand capital play a mediating
role in relationship between social media marketing and customers’ decision to use e-shopping
E-commerce improves communication and open economy at national and international level,
changing business method and changing traditional markets to its new forms. SMM had the
direct, positive and significant impact on three mediating variables: relational, value and brand
capital. Afrina Yasmin, Sadia Tasneem, Kaniz Fatema told Digital marketing embodies an
extensive selection of service, product and brand marketing tactics which mainly use Internet as
a core promotional medium in addition to mobile and traditional TV and radio. Canon image
Gateway helps consumers share their digital photos with friends online. Magazine publishers
can activate and drive their customers into Internet with e-mails and SMS messages to improve
re-subscription rate P. Phani bhaskar and D. Prasanna Kumar
http://www.iaeme.com/IJMET/index.asp 484 editor@iaeme.com (Merisavo et al., 2004). Digital
marketing has no boundaries. Company can use any devices such as smartphones, tablets,
laptops, televisions, game consoles, digital billboards, and media such as social media, SEO
(search engine optimization), videos, content, e-mail and lot more to promote company itself and
its products and services. Srivastava Priyanka written the internet has become an ongoing
emerging source that tends to expand more and more. The growth of this particular media
attracts the attention of advertisers as a more productive source to bring in consumers. In its
most common use, the term "online advertising" comprises all sorts of banner, e-mail, in game,
and keyword advertising, on platforms such as Facebook, Twitter, or Myspace has received
increased relevance. Internet marketing, also known as web marketing, online marketing, web
advertising, or e-marketing, is referred to as the marketing (generally promotion) of products or
services over the Internet. Marketing is used as an abbreviated form for Internet Marketing.

23
Lori N. K. Leonard & Kiku Jones (2010) Studied on (Consumer-to-Consumer e-Commerce
Research in Information Systems Journals)

This study conducts a literature review of a sample of information systems journals in order to
determine the consumer-to-consumer (C2C) electronic commerce (e-commerce) research that
currently exists. Thirty-five information systems journals are reviewed between the years 1997–
2009, and the articles are categorized as being e-commerce and then, more specifically, as C2C e-
commerce. The findings indicate the study of C2C e-commerce is 10.86 percent of the total e-
commerce studies published, which is considerable given the multitude of e-commerce topics.
However, the study indicates many additional areas within the C2C e-commerce area that need to
be researched, such as e-service, mobile commerce, and trust.
The growth of this particular media attracts the attention of advertisers as a more productive
source to bring in consumers. In its most common use, the term "online advertising" comprises
all sorts of banner, e-mail, in game, and keyword advertising, on platforms such as Facebook,
Twitter, or Myspace has received increased relevance. Internet marketing, also known as web
marketing, online marketing, web advertising, or e-marketing, is referred to as the marketing
(generally promotion) of products or services over the Internet. Marketing is used as an
abbreviated form for Internet Marketing.
Rather e-commerce is more than just another way to boost the existing business
practices. It is leading a complete change in traditional way of doing business. This significant
change in business model is witnessing a tremendous growth around the globe and India is not an
exception. Moreover, E-Commerce has every potential to curb the pollution and thus producing
significant influences on the environment

Dr. (Smt.) Rajeshwari M. Shettar (September. 2016) studied on (EMERGING TRENDS OF E-


COMMERCE IN INDIA: AN EMPIRICAL STUDY)
Electronic commerce or E-Commerce refers to a wide range of online business activities for
products and services. It also pertains to “any form of business transaction in which the parties
interact electronically rather than by physical exchanges or direct physical contact.” E-
Commerce is the use of electronic communications and digital information processing
technology in business transactions to create, transform and redefine relationships for value
creation between or among organizations and between organizations and individuals. Today E-
commerce in Indian society has become an integral part of everyday life. Accessibility to E-
commerce platforms is not a privilege but rather a necessity for most people, particularly in the

24
urban areas. Today the number of internet users in the world is close to 3 billion, out of this;
India has a total of 259.14 million internet and broadband subscribers. This penetration of
internet coupled with the increasing confidence of the internet users to purchase on line. This
leads to an enormous growth in the E-commerce space, with an increasing number of customers
registering on E-commerce websites and purchasing products through the use of mobile phones.
India is in a prime position for the growth and development of the E-commerce sector.
The main objective of this research paper is to study the concept of E-commerce. To analyze the
present trends of E-commerce in India to study the various challenges faced by E-business
players in India. To study the prospects of E-commerce in India.

Functions of E-commerce according to author are Communication Function Aimed at the


delivery of information and/or documents to facilitate business transactions. Example: E-Mail.
Process management function Covers the automation and improvements of business processes.
Example: networking two computers together. Service management function Application of
technology to improve the quality of service. Example: Federal Express website to track
shipments and schedule. Transaction capabilities Provides the ability to buy/sell on the internet
or some other online services. Example: Amazon.com.

Today E commerce has become an integral part of everyday life. Accessibility to E-commerce
platform is not a privilege but rather a necessity for people, particularly peoples who are staying
in urban areas. Due to fast adoption of internet enabled devices like Smartphone and Tablets, we
have seen an unparalleled growth in E- commerce. The telecommunication technology has
completely changed the way of our living, communication methods, shopping etc. It has a huge
impact on how we communicate with friends and relatives how we travel, how we access the
information and the way we buy or sell products and services. The growth of Ecommerce
volumes in India is attracting the attention of players around the globe. E-commerce creates new
opportunities for business it also creates new opportunities for education and academics. It
appears that there is tremendous potential for providing E-business education

4.2 PROBLEM DEFINITION

In India e-commerce evaluated like a giant with huge opportunity and success rate. There are so
many big and small players in market. Are they really going to sustain in market for a long time
and is there success rate for them? What are customers expecting from them and are they ready to
fulfill their requirements. The study is to understand what is the impact of E-commerce platform on
customer’s mindset.

25
4.3 BACKGROUND OF THE STUDY

Consumers got used to the traditional method of purchasing, which became a bottleneck for
evolution of E-Commerce. Many of the customers were not able to even know that E-commerce
websites exist. Therefore, there is urgency to concentrate on this particular area.

Online shopping has become a popular way of shopping for consumers. This new innovation for
shopping not only brings a great number and variety of merchandise to potential consumers, but
also offers a numerous business activities and huge market. E- Commerce is no longer known
only as a media that facilitates its users to present themselves on the internet but also as media to
sell some products to consumers known as an online shop. Because of the numerous advantages
and benefits, more people say that they prefer online shopping over conventional shopping these
days.

Online shopping or marketing via internet is the use of technology (computer) for better
marketing production. Online shopping now develops its function along the updated and the
increase of people’s needs. Companies that sell stuffs such as clothes, makeup, shoes, have
learned to use the recent E- Commerce platforms in order to be able to reach the potential buyer
since almost everyone uses social media these days.

Over these past years E-commerce has developed very fast because of many advantages related
to buying on internet because of easier transaction and lower cost as compared to other types of
shopping. Through online shopping everyone can buy faster, have more alternatives and can
order various product or services with lower price.
They concluded that E-commerce is a boom in the modern business. It is a paradigm shift influencing
both marketers
and the customers. Rather e-commerce is more than just another way to boost the existing business
practices. It is leading a complete change in traditional way of doing business. This significant
change in business model is witnessing a tremendous growth around the globe and India is not an
exception. Moreover, E-Commerce has every potential to curb the pollution and thus producing
significant influences on the environment

26
4.4 OBJECTIVES OF RESEARCH

1.To understand the present status and trends of E-Commerce


2.To understand the factors that influence customer to E-Commerce sites.
3.To find out buyer’s awareness about E-Commerce
4. To study about the changes of E-commerce sites on customer’s mind-set.

4.5 SCOPE OF THE STUDY

Digital Marketing is an umbrella term for the targeted, measurable and interactive marketing of
products and services using digital technologies to reach and convert leads into customers to
retain them. The study on the Impact of digital marketing on E-Commerce sites, which helps to
understand the digital era on the present factors, promotional strategies, creating awareness of
the E-Commerce sites.

4.6 PROBLEM STATEMENT

We face millions of problems when we entered into the world of online shopping. Amazon,
flipkart etc. are also some of the online shopping applications site that nowadays reached in
millions of people everywhere. There are some problems that customer deals with like:

*Defected in product that leads to the customer peace of mind decreases.


*Delay in delivery of goods and products is also one of the problems that affect the serenity of
customers.
*The product which customers are choosing might be delivered wrong like, different in colour or
design etc.
*Some goods or product, which customer needs may not be available to the address of the
customer.

4.6 FORMULATION OF HYPOTHESIS:


H1: Qualification of respondents impacts on selection of E-commerce Sites.
H2: Gender of respondents impacts on purchasing of products types.
H3: Digital Marketing Strategies influences purchasing of products on E-Commerce sites.

27
CHAPTER III
RESEARCH
METHODOLOGY

28
5.1 RESEARCH DESIGN
By intent, this study will be a DESCRIPTIVE RESEARCH that uses the survey method. Hence
the study will be a fact-finding investigation with adequate interpretation. It will focus on certain
aspects or dimensions of the identified problems.
The study will be designed to gather descriptive information. Data will be collected by
questionnaire method.
Data will be analyzed using statistical techniques consistent with the objectives of the study.

5.2 SOURCES OF DATA AND DATA COLLECTION


Data required for the research will be collected from both primary and secondary sources.
1. PRIMARY DATA: It will be collected by convenience respondents with the help of
Questionnaire.

2. SECONDARY DATA: It will be collected from various books relating to the topic,
articles, reputed journals, newspaper articles, government publications, websites, Google.

5.3 POPULATION OF THE STUDY


The estimated population is 1000 and above of user E-Commerce sites for purchasing the
product.
5.4 SAMPLING UNIT:
The sampling unit consists of individuals like students, business, employees and others

5.5 SAMPLING FRAME


The sampling frame consists of type of people who are willing to shop through E-Commerce
sites. The respondents for this study are the customers with different age groups.

5.6 SAMPLE SIZE


The sample size is of 115 respondents. Data for this study was collected using a self-
administered questionnaire that was distributed through google forms to respondents

5.7 SAMPLING METHOD


Sampling method refers to the rules and procedures by which some elements of the 29
population are included in the sample. The sample method for this study is simple random
sampling method where the population is picked randomly.

5.8 LIMITATIONS

• There was so much confidential data of companies that are note Exposed.
• Survey was restricted to particular age group because respondents willing to fill are college
students.
• Analysis was done based upon personal opinion of respondents individually, not from any focus
groups ore experts.

5.9 DATE COLLECTION INSTRUMENT


QUESTIONNAIRE
The questionnaire is carefully designed to meet the requirements of the research. The
questions are taken from previous literature on impact of Digital Marketing on E-Commerce
sites with a view to validate the research more and some of the questions are self-structured to
cover the diversity of research problems. The questionnaire consists of two main parts; first part
is mainly focused on questions of demographic factors. Second part of the questionnaire will
cover the internal and external factors Digital Marketing strategies and buyer’s awareness
about E-Commerce products.
Part A: Is all about the demographic factors. This section includes personal and sensitive
questions regarding Gender, Age and Occupation.
Part B: Second part of the questionnaire is related to reviews of the customers towards the E-
commerce site.

30
5.10 ANNEXURE:

1. NAME *
2. AGE *

Mark only one oval.

Below 18
18-25
26-35
Above 35

3. GENDER *

Mark only one oval.

Male

Female
Prefer not to say

4. OCCUPATION *

31
1. Which E-Commerce platform you prefer the most? *

Mark only one oval.

Amazon

Flipkart

Snapdeal

Myntra

2. For how many years you are using E-commerce *

Mark only one oval.

Less than 1 year


One year but less than 5

years More than 5 years


Other:

3. For What purpose do you use E-commerce? *

Mark only one oval.

For personal use

for business use

for both

4. From the various type of E-commerce, what according to you has the largest
marketing share? *

Mark only one oval.

B2B

Commerce B2C

Commerce

B2GCommerce
Other:

32
5. According to you how is E-Commerce helpful to the consumer in the business
domain? *

Check all that apply.

Broadness consumer choice


Encourages price transparency
Fastens business process
Other:

6. What is the most essential Components of E-commerce? *


Mark only one oval per Strongly
row. Disagree Agree
Strongly Agree
Disagree

Customer Engagement

Quality off your products

Standardization off the productprice’s

Ensuring the store security

7. How E-Commerce helps the company building up digitally? *

Mark only one oval per


row. Strongly
Strongl Disagree Agree
y Agree
Disagree

To Increase Brand
Awareness

To Increase Sales

To increase Goodwill

33
8. Does E-commerce changes your mindset about the company or the brand? *

Mark only one oval.

1 2 3 4 5

Strongly Disagree Strongly Agree

9. Google reviews affect the image of any E-commerce platform? *

Mark only one oval.

1 2 3 4 5

Strongly Disagree Strongly Agree

10. Do you Agree that E-Commerce can provide an alternative marketing


channel by eliminating the middle man? *

Mark only one oval.

1 2 3 4 5

Strongly disagree Strongly Agree

11. What is the most prominent domain in which E-commerce is used in India? *

Mark only one oval.

Fashion items

Trips and

tourism Tech

products

Educational Courses

Other:
34
12.What do you thing, Is E-commerce the future of Indian Market? *

Mark only one oval.

Yes

NO

13. Anything you would like to add about E-Commerce

35
5.11 BIBILIOGRAPHY

researchgate.net

google scholar

CMA Panigrahi, Ranjan Upadhyaya, PP Raichurkar International Journal 2 (1), 2016


https://www.google.com/

Sanjay Mishra, Charu RastogiStudies in Indian Place Names 40 (69), 345-351, 2020
Reseasrch-Paper-on-E-Commerce.pdf (ijcams.com)

A Review Paper on E-Commerce (researchgate.net)

Consumer-to-Consumer e-Commerce Research in Information Systems Journals: Journal of Internet


Commerce: Vol 9, No 3-4 (tandfonline.com)

36

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