Consumer reaction towards E-marketing - A case study in Guwahati City,Assam

Submitted by:
TAPATI SARMAH

RESEARCH SCHOLAR

CENTRE FOR MANAGEMENT STUDIES

DIBRUGARH UNIVERSITY
1. INTRODUCTION:

E-marketing

With the world squeezing into pockets, we have quietly stepped into a completely new era of
digitalization, portraying an evolution in shopping behavior. Consumers, majorly, now shop digitally.
They begin their shopping journeys online; depend upon digital sources to make product decisions;
buy in a contemporary digitalized manner and also have new expectations for all their shopping
experiences shaped by the daily usage of the Internet. Consumers expect greater visibility into the
information that enables calculations of value (product/pricing comparisons, access to promotions,
and how-to insights), they want self-service, and they are more interested in personalized offers and
promotions (Fretwell L. , Stine J. , Sethi H. , & Noronha, 2013).

The increasing use of Internet in the present era provides an emerging prospect for online retailers. It
has been more than a decade since B2C (Business-to-consumer) Electronic commerce (e-commerce)
first evolved. With the tightening of time constraints coupled with the widespread application of IT, a
demand for B2C e-commerce over the Internet is something which not everyone is unfamiliar of.
Practitioners and scholars of e-commerce are in a rat race to gain an improved insight into the
digitalized consumer behavior. Along with the development and advancement of E-tailing (Electronic
retailing), researchers continue to explain E-consumers’ behavior from various dimensions. Many
emerging studies have come up with new factors which are based on the conventional models of
consumer behavior and test their reliability and validity in the Internet context. Moreover, with the
recent advancement in banking, communication and logistics, an opportunity arises to evaluate the
attitudes and perceptions of homogeneous consumers towards E-marketing in light of the most
popular items, searched-for and shopped online

The Internet's World Wide Web (or Web) is considered a strategic information technology with the
potential to change the ground rules by which businesses interact with their customers. As Burstein,
D., and Kline, D. (1995) asserts “The Web has been referred to as the great "marketing superhighway"
(as cited in Jarvenpaa & Todd, 1996-1997, p. 59). Although there is a lot of speculation about the
impact of the Web on the consumer behavior, empirical evidence of consumer reactions to retailing
on the Web is scant.

CISCO’s analysis of 2013 data from the United States revealed that Digital Shoppers are now the
majority. Nearly eight in 10 consumers are digital shoppers who regularly research and purchase
products using the Internet. This “Digital Mass Market” accesses the Internet on a daily basis, owns a
mobile phone (though not necessarily a smart phone), and regularly researches or purchases products
and services online. They increasingly rely on Internet-based sources of information for making
purchase decision. There was a significant growth in reliance upon digitally sourced reviews and
ratings, whether from retailer’s websites or from online third party websites. (Fretwell L. , Stine
J. ,Sethi H. , & Noronha, 2013, p 2).

As Alba et al., 1997; Winer et al., 1997 asserts “A critical understanding of consumer behavior in the
virtual environment, as in the physical world, cannot be accomplished, if the factors affecting the
purchase decisions are ignored or misunderstood. For instance online consumers’ concerns about lack
of opportunity to examine products prior to purchase are regarded as the specific factor affecting
online buying decision. Therefore several researchers proposed that consumers’ shopping behaviour
in online shops may be fundamentally different from that in the traditional environment”(as cited in .
Shergill & Chen, 2005, p. 79).

Consumer Behavior

Consumer behaviour is the study of how individuals decide, select, buy and dispose products or
services. It is the decision processes and acts of people involved in buying and using products. A study
of the consumer behavior includes an understanding of:

 why consumers make the purchases that they make?

 what factors influence consumer purchases?
 the changing factors in our society.

Traditionally, there are Six Stages to the Consumer Buying Decision Process (For complex decisions),
where purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, but, determined by the degree of complexity.
The 6 stages are:

1. Problem Recognition (awareness of need)--This state triggers the difference between the
desired state and the actual condition, deficit in assortment of products. Hunger--Food.
Hunger stimulates our need to eat.
For example, if one sees a commercial for a new pair of shoes, it stimulates our recognition
that we need a new pair of shoes.
2. Information search--
o Internal search--memory.
o External search—is when we need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set. For
instance, Hungry, want to go out and eat, evoked set being--

o chinese food
o indian food
o burger king etc
3. Evaluation of Alternatives-- Here, one need to establish criteria for evaluation, featuring the
buyer ‘wants’ or ‘does not wants’. For instance, if one decides to eat something spicy, Indian
food gets highest rank. And, if he/she is not satisfied with their choice, they return to the
search phase. Information from different sources may be treated differently and Marketers try
to influence by "framing" alternatives.
4. Purchase decision-- It includes choosing the buying alternative and includes product, package,
store, method of purchase etc.
5. Purchase-- Making the final moves in buying the ultimate product and is always subject to
product availability.
6. Post-Purchase Evaluation-- i.e., the outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have we made the right decision. This can be reduced by warranties, after sales
 communication etc. After eating an Indian meal, one may think that they actually wanted a
Chinese meal instead.

There are four type of consumer buying behavior:

 Routine Response/Programmed Behavior-- buying low involvement frequently purchased low

cost items; need very little search and decision effort; purchased almost automatically.
Examples include soft drinks, snack foods, milk etc.
 Limited Decision Making-- buying product occasionally, when one needs to obtain information
about unfamiliar brand in a familiar product category. Requires a moderate amount of time for
information gathering. Examples include Clothes—where the consumer knows the product
class but not the brand.
 Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products--High degree of economic/performance/psychological risk.
Examples include cars, homes, computers, education. Here the consumer spends a lot of time
seeking information and deciding. Consumer seeks information from companies; friends and
relatives, store personnel etc. Here, the consumers go through all six stages of the buying
process.
 Impulse buying-- where there is no conscious planning on the part of the consumers. (Brown
A.,2008, , [Class Notes], Wharton School, University of Pennsylvania,
http://www.udel.edu/alex/index.html).

The factors that influence Consumer Behaviour can be classified into the following four types with
their respective sub-classifications. They are--
 Cultural factors
 Culture
 Sub-culture
 Social Class
 Social factors
 Reference Groups
 Family
 Social Roles
 Status
 Personal factors
 Age and stage in the Life cycle
 Occupation and Economic circumstances
 Personality and Self concept
 Lifestyle and Values
 Psychological factors
 Motivation
 Perception
 Learning
 Memory
If E-marketers intend to ignore the fundamental truths about consumer behaviour, most of the
promises of E-marketing in the business-to-consumer context will not be fulfilled. Internet is changing
the way consumers shop and buy goods and services, and has rapidly evolved into a global
phenomenon. And this has necessitated the study of consumer behaviour (reactions) in the realm of
the digitalized market in operation.

Consumer Durables
Till about ten year ago, many things that were considered as luxuries have become necessities for the
people in the present era. And more so in case of consumer durable goods consumption.

What it is:
Consumer durables are a category of consumer products that do not have to be purchased frequently
because they are made to last for an extended period of time (typically more than three years). They
are also called durable goods or durables.

How it works/Example:
Consumer goods are often divided into two categories: durables and non-durables. Durables have an
extended product life and are not worn out or consumed quickly when you use them. Since they're
made to last, durable goods are typically more expensive than non-durable goods that have to be
purchased over and over again.

A washing machine is an example of a durable good -- it takes many years and multiple uses to wear it
out. The laundry detergent used in the washing machine is a non-durable good -- when the bottle is
empty, the product is depleted and must be repurchased.

Other examples of durable goods are automobiles, appliances, furniture, jewelry, consumer
electronics and sporting goods.

Consumer Durable Industry in India

Ratna(2014) in his report says that a combination of changing lifestyles, higher disposable income,
greater product awareness and affordable pricing have been instrumental in changing the pattern and
amount of consumer expenditure leading to robust growth of consumer durables industry.
In India the Consumer Durables segment can be categorized into three verticals:

White Brown Consumer Consumer

goods goods electronics durables
Those goods which do not wear quickly, yielding utility over time rather than at once are termed as
Durable goods. Within this category, electronic devices and appliances represent consumer goods that
enable individuals to enhance their lives and/or take joy in entertainment. Brown goods include electronic
items such as televisions, DVD players, stereos, and home entertainment systems. Alternatively, white goods
are items such as refrigerators, ranges, freezers, and washer/dryer sets.

Examples of consumer durable goods include electronic equipment, home furnishings and fixtures,
photographic equipment, leisure equipment and kitchen appliances. They can be further classified as
either white goods, such as refrigerators, washing machines and air conditioners or brown goods such
as blenders, cooking ranges and microwaves or consumer electronics such as televisions and DVD
players. Such big-ticket items typically continue to be serviceable for three years at least and are
characterized by long inter-purchase times.
(Dr. Kishor N. Ratna, 2014,Rural Consumer behaviour towards Consumer Durable goods in India(Case
Study of Six Villages in Guntur District),International Journal of Advance Research in Computer Science
and Management Studies, Vol. No. 2, P. 3)

A brief report on Consumer Durable Industry in India

Private & Confidential
Page 3 of 11
This sector is expected to post a CAGR of 15
% over 2010-15. Growth in demand from rural and
semi-urban market is estimated to outpace demand from urban market for consumer
goods.
Consumer durables market is estimated to expand at
a CAGR of 14.8 per cent to US$ 12.5 billion in
FY15 (from US$ 7.3 billion in FY11). Rural and
semi-urban markets are likely to contribute a
majority of consumer durables sales.
1.2
Key Categories
The Indian Consumer Durables segment can be segmented into three groups:
White goods
Brown goods
Consumer electronics
· Air conditioners
· Refrigerators
· Washing Machines
· Sewing Machines
· Watches and clocks
· Cleaning equipment
· Other domestic appliances
· Microwave Ovens
· Cooking Range
· Chimneys
· Mixers
· Grinders
· Electronic fans
· Irons
· TVs
· Audio and video systems
· Electronic accessories
· PCs
· Mobile phones
· Digital cameras
· DVDs
· Camcorder

Key Consumer Durables & Growth Trends

The consumer durables market in India was estimated to be around US$ 4.5 billion in 2006 -07. More
than 7 million units of consumer durable appliances have been sold in the year 2006 -07 with color
televisions (CTV) forming the bulk of the sales with 30 percent share of volumes. CTV, refrigerators
and Air-conditioners together constitute more than 60 per cent of the sales in terms of the number of
units sold.
Source: Cygnus Quarterly Report, Aug 2007

Consumer goods like washing machines, motorcars, TV sets, audio -video systems etc, which yield
services or utility over time rather than being completely used up at the moment of consumption can
be termed as the consumer durables. Most consumer goods are durables to some degree, and the
term is often used in a more restricted sense to denote relatively expensive, technologically
sophisticated goods- consumer durables‘ such as the examples given above which implies high
involvement at the time of purchase.

Size of the consumer durables market in India

Consumer durables market is expected to double at 14.8 per cent CAGR to US$ 12.5 billion in FY15
from US$ 6.3 billion in FY10.

(Source: India brand Equity Foundation, October 2014).

India is expected to become the fifth largest consumer durables market in the world by 2025. Also,
the consumer electronics market is expected to increase to US$ 400 billion, while production could
reach US$ 104 billion by 2016.

The expected market size of consumer durables in India by 2015 is US$ 12.5 billion. Urban markets
account for about 65 per cent of total revenues in the consumer durables sector in the country. The
rural and semi-urban markets are likely to contribute a majority of consumer sales as the rural
consumer durables market is growing at the compound annual growth rate (CAGR) of 25 per cent.

The Government of India has increased liberalization which has favored foreign direct investments
(FDI). Also, policies such as National Electronics Mission and digitization of television and setting up of
Electronic Hardware Technology Parks (EHTPs) are expected to boost the growth of this sector. This
growth will be further supplemented by the reduction in Central Excise Duty from 12 per cent to 10
per cent.

The consumer durables market is anticipated to expand at a CAGR of 14.8 per cent to US$ 12.5 billion
in FY15. Also, the demand from rural and semi-urban areas is projected to expand at a CAGR of 25 per
cent to US$ 6.4 billion in FY15, with rural and semi-urban markets likely contributing majorly to
consumer durables sales. (Source: India brand Equity Foundation, October 2014).

Panasonic had decided to spend 20 per cent of its total digital marketing budget on e-commerce
campaigns, said Manish Sharma, managing director, Panasonic India. “Online retailing amplifies reach
in regions where we do not have a physical retail presence,” he added.

Godrej Appliances is taking a different strategy. The company is tying up with marketplaces like
Amazon and Flipkart, besides its existing partner Indiatimes. “The reason for these tie-ups is because of
the growth we are seeing in online sales. It is faster than offline though the base is small. Online sales
growth for us is 40-50 per cent, which is good. And as traffic grows online, growth numbers will
grow,” said Kamal Nandi, business head and executive vice-president, Godrej Appliances.
2. LITERATURE REVIEW:

1. Consumer Reactions to Electronic Shopping on the World Wide

Author(s): Sirrka L. Jarvenpaa and Peter A. ToddSource: International Journal of Electronic

Commerce, Vol. 1, No. 2 (Winter, 1996/1997), pp.59-88Published by: M.E. Sharpe, Inc.

This paper tries to explore the factors that the customers found important in browsing through
the various electronic malls on the World Wide Web (WWW). However, the an interesting
finding of the survey was that the shoppers did not find Web shopping significantly different
from catalog shopping, in fact many found it inferior. The main reason being, the stores listed
out on the www were nothing more then just the electronic versions of catalogs which fail to
take advantage of the web’s interactive forum. The consumers who prefer to shop online,
would rather be interested in interacting and advocating their preferences, which, as an
important criterion, was over looked The WWW marketers and retailers need to know that
 unless they can make an offer in a significantly convenient way or at noticeably lower prices
and with improvised services, there is no second reason why anyone would start shopping
electronically in a virtual market.

2. Internet-based e-shopping and consumer attitudes: an empirical study

Author(s): Ziqi Liaoa, Michael Tow Cheungb: Information & Management 38 (2001) 299±306

This paper analyses the initial effects and relationships between consumer attitudes and
Internet-based e-shopping. The paper tries to provide theoretically and empirically grounded
reference position to test the role played by different variables affecting Consumer preference
on the indulgence towards e-shopping. It uses Regression analysis as an aid to measure the
respondents (Singaporean customers) towards e-shopping. Regression Analysis shows that the
life content of products, transactions security, price, vendor quality, IT education and Internet
usage significantly affect the initial willingness of the respondents to shop on the internet. The
findings of the paper can be generalised in socio-geographically and technologically similar
situations in the context that Business to Customers (B2C) transactions can be profitably
operative if the marketers and retailers cultivate the consumer preferences accustomed to
conventional shopping by offering goods which do not require much ‘touching-and-feeling’,
rather, physical evidence is minimum, before purchase. Further development can be expected
if initiatives in making the virtual environment enjoyable and attractive while shopping can be
made.

3. Factors Influencing the Adoption of Web-Based Shopping: The Impact of Trust

Author(s): Craig Van Slyke;University of Central Florida, France Belanger; Virginia

Polytechnic Institute and State University, Christie L. Comunale; Long Island University, C.W.
Post Campus

This study establishes that there exists a significant relationship between trust in Web
merchants and an intention to use the Web for purchasing goods and services. This study
establishes that trust in Web merchants has a significant relationship with use intentions, even
when other perceptions of the technology are considered. In other words, trust in Web
merchants accounts for a significant portion of the variability in use intentions, even when the
accounted for by the perceived innovation characteristics is considered. The study confirms the
importance of relative advantage, complexity and compatibility when consumers make e-
shopping decisions.

4. Building consumer trust online

Author(s): Donna L. Hoffman, Thomas P. Novak, and Marcos Peralta, April 1999/Vol. 42, No.
4, Communications of the ACM
The study focuses on the factors that pave the way to reluctance of customers to shop online.
The reason more people have yet to shop online is the fundamental lack of faith between most
businesses and consumers on the Web today. In essence, consumers simply do not trust most
Web providers enough to engage in “relationship exchanges” involving money and personal
information with them. The study reveals that this lack of trust arises from the fact that cyber
consumers feel they lack control over the access that Web merchants have to their personal
information during the online navigation process.

5. An empirical study on predicting user acceptance of e-shopping on the Web

Author(s): Hung-Pin Shih

This study develops an extended model to predict consumer acceptance of electronic shopping
(e-shopping) based on the theory of reasoned action (TRA) and the technology acceptance
model (TAM). The results show that individual attitudes toward e-shopping are strongly and
positively correlated with user acceptance. It also confirmed that perceived ease of use of
trading online and perceived usefulness significantly determine individual attitudes toward e-
shopping. However, perceived usefulness was not found to affect user acceptance significantly.
Additionally, user satisfaction with the Internet/WWW and perceptions of information, system
and service were shown to affect user acceptance significantly. Overall, the proposed model
could be used to predict consumer willingness to shop on the WWW. Consumer attitudes
towards e-shopping strongly determine their willingness to use the Internet/WWW to shop for
physical or digital products or on-line services, or to place an order, request post-purchase
service, take delivery and make a payment.

6. User experience in social commerce: in friends we trust

Author(s): Dong-Hee Shin, Department of Interaction Science, Sungkyunkwan University, Seoul,

Korea, Behaviour & Information Technology, 2013, Vol. 32, No. 1, 52–67,
http://dx.doi.org/10.1080/0144929X.2012.692167, Publisher: Taylor & Francis

The study tries to analyse the consumer behaviour in social commerce (s-commerce), focusing
on the role of social influence on s-commerce. The study is made by developing a model to
validate the relationship between the subjective norm and trust, social support, attitude, and
intention. To conduct the survey, it was phased into 4 stages. First, individual in-depth
interviews were conducted with current users of social shopping and s-commerce. Second, with
the help of s-commerce providers based in Seoul, Korea, focus groups of current and
prospective users were organized, and group interviews were conducted. The goal of the
individual interviews and focus group sessions was to test and validate the survey
questionnaire, to identify items missing from the survey, and to gain a preliminary
understanding of the factors affecting usage behaviors. Third, based on the focus group
sessions, a final survey questionnaire was developed through several comment rounds of an
expert panel. The finalized survey was administered online from July to December 2010, where
a web-based survey questionnaire was posted in the communities of several professional
associations, and on blogs and forums devoted to s-commerce, e-commerce, and m-commerce.
The study implies that the social commerce users are more influenced by social interactions in
their decision to accept s-commerce than m- commerce or e-commerce. S-commerce users not
only view it as a commercial channel but also as a social channel for interaction and
involvement in activities other than shopping, such as, education, information and
entertainment.

7. The Interactions between E-Shopping and Store Shopping: A Case Study of the Twin Cities

Author(s): Xinyu (Jason) Cao, Frank Douma, Fay Cleaveland, Zhiyi XuHumphrey, The
Intelligent Transportation Systems Institute Center for Transportation Studies, University of
Minnesota

The study says that residents living in the urban areas tend to shop online more frequently,
providing support for the innovation-diffusion theory; and that e-shopping tends to have a
complementary effect on in-store shopping, although there is evidence for substitution effect.
The study used structural equation models to find that online searching frequency has positive
impacts on both online and in-store shopping frequencies and online buying frequency
positively influences in-store shopping frequency. Overall, the use of Internet as a shopping
channel tends to generate shopping demand because of the unprecedented large amount of
product information online and the direct impact of online buying on in-store shopping. In
terms of total effect, it seems that online information search has a larger complimentary effect
on traditional shopping than does online buying.

8. A Large-Scale Study of Online Shopping Behavior

Author(s): Soroosh Nalchigar and Ingmar Weber

Explosive growth of electronic commerce and the increasing number of online users has
caused increasing interest in online consumer behavior. Understanding online shopping
behavior and factors that affect it is important for researchers and practitioners alike. The
study indicates that even coarse grained Internet browsing behavior has predictive power in
terms of what users will buy online. Furthermore, the study discover both surprising (e.g.,
“expensive products do not come with more effort in terms of purchase”) and expected (e.g.,
“the more loyal a user is to an online shop, the less effort they spend shopping”) facts. The
study concludes that the amount of effort that online consumers spend before buying an item
differs for various product categories. Experience goods are associated with more effort in
making buying decision while, on the other hand, search products are associated with less
effort. Moreover, an increase in the level of shop loyalty of users comes with a decrease in the
effort that users spend before shopping.

9. European Consumer Views of E-Commerce: A Consumer Research Study of Buying

Behavior and Trends

Oracle, ATG Web Commerce Report, March, 2011

Retailers with a presence in ten or more countries are growing faster and more profitably than
those retailers that focus on just a few regions. Therefore, it is now an imperative for retailers
to compete in the international online market. The results of the European Consumer Views of
E-Commerce survey show variations across countries in key areas: satisfaction rates with the
online experience, opinions on which sector offers the best service, favoured features and
greatest frustrations on Websites, and how much money people will spend online.
Retailers should leverage this data to ensure that their online presence in each country caters
to the needs and desires of each region’s consumer segment. Those retailers that use profiling,
personalization, searching, and interactive help services are able to provide the type of
personalized customer service and shopping experience that will bring consumers from every
country back again and again.

10. A Study on The Online Shopping Value And Consumer Responses: Internet Travel Agency
As Example

Author(s): Cedric Hsi-Jui Wu, Hung-Jen Li, Department of Business Administration, National
Dong Hwa University

The study concludes that flow experience (enjoyment, time distortion, and tele presence), has
direct positive effects on utilitarian value (the successful accomplishment of an intended goal),
and further provided an integrated theoretical model. The results also revealed that both
utilitarian value and flow experience would improve consumers’ website attitudes and either
directly or indirectly affects their intention to purchase online. In other words, although the
flow experience could not directly affect the intention to purchase, it would produce indirect
effects through utilitarian value and attitude.

11. Consumer market study on the functioning of e-commerce and Internet marketing and
selling techniques in the retail of goods

Author(s): Civic Consulting, Subcontractors: TNS opinion – Euromonitor International

Online markets can offer goods for lower prices, and increase choice, thereby increasing
consumer welfare. This report analysed consumer welfare changes implied by the price
difference between buying a good online versus offline, and the consumer welfare aspects of
increased online choice. The analysis encompasses consumer welfare gains under the current
share of Internet retailing for each country and consumer welfare gains under a hypothetical
situation in which the share of Internet retailing would be 15% of total retailing.

12. Young consumers online shopping: an empirical study

Author(s): Syed Shah Alam, Zaharah Bakar, Hishamuddin Bin Ismail, Mst. Nilufar Ahsan,
Journal of Internet Business, Issue 5 – 2008

The analytical results of the investigation indicate relationships between young consumers’
perceptions of the factors that influence their intention to buy through online. More
specifically, consumers’ perceptions of the customer service, reliability and trust of online
purchasing exhibit significant relationships with their online buying intention. Marketers need
to realize that the online marketing environment affects the way consumers view and develop
relationships. In this context, to add value to the online shopping experience and to build
relationships, trust is everything.
 12. Comparison Shopping is a Way of Life

Author(s): by Lauren freedman, President, The e-tailing group, inc., September, 2009

In this price conscious age, 94% of online shoppers invest time to find the lowest price for
commodity products. Savvy consumers are using the Internet to find value, particularly when
shopping for commodity products. Efficiency of price comparison and the ability to merely
Google it, check Amazon’s prices or visit a few competitors is core to today’s consumer
shopping behavior. Throughout their comparison shopping consumers seek out TCO (total cost
including shipping and handling) and product price, named the two most important influencers
for online purchase decisions.

13. Why People (Don’t) Shop Online: A Lifestyle Study of the Internet Consumer

Author(s): William R. Swinyard and Scott M. Smith Brigham Young University

This research shows that on-line shoppers differ substantially from online non-shoppers. On
line shoppers are younger, wealthier, better educated, have higher computer literacy, spend
more time on their computer, spend more time on the Internet, find on-line shopping to be
easier and more entertaining, and are less fearful about financial loss resulting from on-line
transactions.
They also have substantially different Internet-related behaviors than on-line non-shoppers.
Several of these differences are likely due to risk-aversion associated with unfamiliarity or lack
of comfort with the computer and Internet. The results reveal substantial differences between
shoppers and non-shoppers in the time spent with their computers and on-line, and their
computer literacy. Shoppers use computers more, are on-line more, and are more comfortable
with both computer and Internet use. By contrast, the non-shoppers more often use their
connection time to play games, chat, search for images, look at financial information, visit
news groups, search for software, and look for jobs.

14. E-commerce: A new realm for Indian Industries: Its challenges and opporutinities.

Author(s): Dr Suman Kumanr Dawn, Anindya Guha; Dharohar (ISSN 2230-9357), Volume 1,
Issue 2, December, 2011, International Management Journal

The study tries to assess the potential opportunities and economic impacts of e-commerce in
the B 2 B and B 2 C spheres, the forces underlying its expansion and the possible implication for
structures and macro-economic policy management. It points out the key challenges that are
being faced by consumers relating to e-commerce by observing it as a latest business tool for
sustaining competitive advantage to counter competitions.
E-commerce creates new opportunities for business; it also creates new opportunities in the
area of e-retailing, e-procurement, e-marketing, e-education, e-branding, e-people
management etc. Growth of e-commerce would also depend to great extent on effective IT
security systems for which necessary technological and legal provisions need to be put in place
and strengthened constantly.
3. STATEMENT OF THE PROBLEM:

The usage of the World Wide Web (www) is engulfed with much fascinations and speculations.
Although, the WWW, is by far, the most widely used terminology and platform for any life solution-
marketing being no exception, however, there is little empirical evidence underlying all the
speculations. Considering the developing nature of India and the widespread reach of technology, E-
tailing in India has become the buzzword. As compared to the developed nations, India lacks empirical
evidence in predicting, substantiating the understanding of the potential success and failure of
retailing on the World Wide Web, in its own context. Researchers continue to explain E- consumer
behavior from different perspectives, without any definite model. So, knowing the significance of E-
marketing in India, its potentiality and the milestones ahead, it stages a ground for undertaking a
research work on understanding the consumer reactions towards e-marketing.

4. OBJECTIVES OF THE STUDY:

1. To study the behavior of the consumers towards e-marketing of consumer durables

2. To study the perception of the consumers towards e-marketing

3. To locate the factors determining the buying behavior

4. To study the problems faced by consumers in making e-purchases

5. SCOPE OF THE STUDY:

The study shall be confined to the employees, working in small and medium sized organizations of
Guwahati city, B-Class towns of Assam, who have access to the Internet and have made at least one online
purchase in the last one year.

6. METHODOLOGY OF THE STUDY:

The proposed study is empirical and descriptive (ex post facto) one. The methodology of the proposed study is
given below:

A. Sampling design:

Universe of the study: For the purpose of the proposed study, the Universe shall consist of all the
employees of small and medium sized organizations in Guwahati city of Assam, who have access to the
Internet and have made at least one online purchase in the last one year.

Sampling Unit: It shall comprise of 10, purposively selected wards, out of the total number
of wards in Guwahati city, covering 50 small and medium sized organizations in each ward.

Sample size: A total number of 500 respondents shall be surveyed for the purpose, with not
more than 5 respondents, in case of each small sized organisation and 10 in case of each
medium sized organisation, until the total target of 500 respondents have been arrived at.

Parameters of interest: For the purpose of the study, the respondents must be internet users
and has to have made at least one online purchase in the past one year.

Sampling procedure: For the purpose of the study, Purposive Sampling shall be used to arrive
at the proposed sample size.

B. Sources of data:

a) Primary Data: The study proposes to collect primary data on the parameters of interest from the
selected sample. The tool of online and offline “Questionnaire” will be used to collect necessary
 information which will be framed keeping in view the objectives mentioned above. Necessary, reliability
and validity study will be done during the course of the pilot study and necessary changes in the
questionnaire will be made. Finally data shall be collected from the purposively selected sample of
Guwahati city.

b) Secondary data: Secondary data will be collected from the following sources –
Websites, Publications, Online surveys, Reports and Social Medias.

7. TENTATIVE CHAPTERISATION:

Chapter 1: Introduction: An overview of e-marketing

Chapter 2: Design and Methodology: This chapter will include the research methodology adopted,
objectives of the study, scope and limitations of the study

Chapter 3: Consumer behavior, perception and factors: This chapter will include consumer
perceptions and the factors affecting the pattern of behavior that consumers show while shopping on
worldwide web and the problems following.

Chapter 4: Analysis and Interpretation: This chapter will provide the analysis and the interpretation
of the collected data.
Chapter 5: Summary and Conclusion: This chapter will include the findings of the study and provide a
summary for the earlier chapters. It will record the recommendations on the basis of the findings of
the study.

8. RESEARCH QUESTION:

Q. Does the purchase through e-marketing increases with the increase in the income level of the
consumer?

9. SIGNIFICANCE OF THE STUDY:

 The study will help in understanding the potential success and failure of retailing on the World
Wide Web.
 The study will give insight on the issues like consumer preferences, expectations and efforts
while shopping online.
 The study will give insight on the dependence of consumers on e-marketing.
 The study will give an insight on whether the traditional consumer behaviour model holds
good for e-consumer behaviour as well.

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