The Impact of Instagram Advertisements and their role in

increasing the Return on Investments with Special reference

to Arya Builders and Developers, Bengaluru

Project Report submitted to the BMS Institute of Technology and

Management, Basavanagudi, Bengaluru in Partial Fulfilment of the
requirements for the award of the degree of Master of Business
Studies (MBA)

Submitted by
Nischal Prasanna
ENROLLMENT
NO:

Research Guide
…………
BMS Institute of Technology and Management, Basavanagudi,
Bengaluru

1
April 2022

2
 Project Report on:
The Impact of Instagram Advertisements and their
role in increasing the Return on Investments with
Special reference to Arya Builders and Developers,
Bengaluru

3
 Declaration

I hereby declare that the Project Report entitled “The Impact of Instagram Advertisements
and their role in increasing the Return on Investments with Special reference to Arya
Builders and Developers, Bengaluru” submitted to the BMS Institute of Technology and
Management, Basavanagudi, Bengaluru in Partial Fulfilment of the requirements for the
award of the degree of Master of Business Studies (MBA) is my original work and the
dissertation has not formed the basis for the award of any degree, associateship,
fellowship or any other similar titles.

The material borrowed from other sources and incorporated in the dissertation has been
duly acknowledge. I understand that I myself could be held responsible and accountable
for plagiarism, if any, detected later on. The research papers published based on the
research conducted out of the course of the study are also based on the study and not
borrowed from other sources.

Signature of Nischal Prasanna

Enrolment number:
Date:
Place:

4
 Certificate

This is to Certify that the Project Report entitled “The Impact of Instagram Advertisements
and their role in increasing the Return on Investments with Special reference to Arya
Builders and Developers, Bengaluru” submitted to the BMS Institute of Technology and
Management, Basavanagudi, Bengaluru in Partial Fulfilment of the requirements for the
award of the degree of Master of Business Studies (MBA) and that the Project Report has
not formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or
any other similar titles of any University or Institution.

It is also certified that the Project Report represents an independent work on the part of
the candidate.

Signature of Head of the Department Signature of Guide

Date:

Place:

5
 ACKNOWLEDGEMENT

I am grateful to BMS Institute of Technology and Management, Basavanagudi, Bengaluru

for having given me an opportunity of career enhancement by carrying out the current
project report work.
I am extremely thankful to my guide, mentor, philosopher Professor................for having
guided me with his valuable inputs and extending all his support throughout my research
work and without his able and valuable guidance this would not have been possible. I am
immensely indebted to my guide.................for ensuring the right direction and output of
the research process.

I would like to convey my gratitude to our HOD Dr Shubha for their guidance, advice and
encouragement during the total MBA course work and paper publications.

I would like to thank Mr………………. Managing Director of Arya Builders and Developers,
Rajaji Nagar, Bengaluru for giving me an opportunity to carry out the Project Report in
their esteemed organisation.

I would also like to thank the administration staff of BMS Institute of Technology and
Management, Basavanagudi, Bengaluru for helping me wherever needed.

I would also like to thank all the faculty members for their valuable inputs. I sincerely
thank my mother, father and brother for their limitless support.
Lastly, I also thank everyone who has been directly and indirectly instrumental in the
completion of my Project Report.

Thanks and Regards

Nischal Prasanna
Enrolment number
Date:
Place: Bengaluru

6
 Table of Contents

Chapter Numbers Titles Page Numbers

Cover Page-done 1
Title-done 2
Declaration-done 3
Certificate-done 4
Acknowledgement-done 5
Table of Contents-done 6
Executive Summary-done 7
1 Introduction-done 11
2 Literature Review -done 12
3 Objectives of Study
4 Hypotheses of Study
5 Research Methodology
6 Instagram-done
7 Customer Behaviour-done
8 E-Retailing-done
9 Data Analysis
10 Findings and Conclusions
11 Recommendations
12 List of tables
13 Questionnaire-done
14 Bibliography

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 Executive Summary
Instagram Marketing/Advertisement is a type of social media marketing. It involves
promoting a brand on Instagram. This Social platform helps brands connect with audience
for brand awareness and sales.
Social media is a phenomenon that has drawn a lot of attention both of companies and
individuals interacting on the networking landscape. Social media offer affordable
opportunities to reach large populations. Additionally, online campaigns on social media can
benefit from the persuasive features of interactive multi-media systems. Social media is a
phenomenon that has become an important aspect in marketing mix and revolutionizing the
way companies interact with customers.
The research impact of Social Media Marketing by The Impact of Instagram Advertisements
and their role in increasing the Return on Investments attempts to study how builders and
developers can leverage social media to penetrate their markets and reach-out to their
customers in a personal and direct manner. The report also discloses the influence of
Instagram Advertisements on the buyer behaviour of customers.
The proposed research strives to understand the decision-making process of customers. The
Social media marketing like Instagram is worth millions of dollars it is of utmost importance
for the companies to know the degree of impact their new social media marketing campaign
would have on potential customers. It would help them in channelizing more money and
effort towards the social marketing strategy which has maximum impact on customer
psyche.
Key drivers in Indian e-commerce are:
1. Large percentage of population subscribed to broadband Internet, burgeoning 4G
internet users, and a recent introduction of 5G across the country.
2. Explosive growth of Smartphone users, soon to be world's second largest smart
phone user-base.
3. Rising standards of living.
4. Availability of much wider product range (including Direct Imports) compared to
what is available at brick-and-mortar retailers.
5. Competitive prices compared to brick-and-mortar retail driven by disintermediation
and reduced inventory and real estate costs.
6. Increased usage of online classified sites, with more customers buying and selling
second-hand goods with the rise of social media in recent years there has been a
heightened interest from marketing professionals in the potential of social media for
reaching consumers.
7. The aim of this Project Report is to further the understanding of customer responses
to marketing via social media or Instagram. The rise of social media over the past
decade has raised many questions about the effectiveness and impact of social
media marketing. There are questions of it, how, and under what circumstances they
work for marketing purposes. This Project Report is intended to add to that
emerging body of research.
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8. Following objectives of Project Report are enumerated:

Objectives:
1. To identify the impact of Instagram marketing strategies of retailing companies
on the buying behaviour of customers.
2. To study the effectiveness of Social Media tools like Instagram as best marketing
tool
3. To determine the demographic profile of customers who purchase products
online from e-retailers.
4. To study on-line purchasing behaviour of customers of Building materials and
real estate activities.
5. To identify factors motivating customers to shop online.

The study thus attempts to integrate definitions and meanings of all the key
concepts of Instagram Marketing, On-line Customer Behaviour and E-Retailing in
India. Data Collection and analysis is done to achieve the objectives of the study.

Methods of Data Collection:

The data for the purpose of the study would comprise of both primary and
secondary data. Primary data had been collected by questionnaire survey
method. A single questionnaire had been created and administered in different
areas.

Questionnaire:
It is a well framed questionnaire consist of 30 questions some of which have
been divided into sub-questions in order to get an in-depth knowledge of
customer behaviour.
The questionnaire comprised of different sections relating to the various aspects
of Instagram marketing, buying behaviour etc. Essentially the questionnaire
comprises of questions pertaining to following type of information:
 Demographic Information
 Usage of internet
 Usages of Instagram
 Customer Buying Behaviour
 Product research process on Instagram
 Instagram Marketing tools
 Impact of Instagram

Sampling Technique:
Random Sampling technique has been used for this study as in a Random sample
from infinite population, selection of each item is controlled by the same
probabilities and the successive selections are independent of one another.

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Limitations of the study:
The conclusions are drawn on the basis of data collected from Bengaluru and
every caution has been taken to keep the sample unbiased and true
representative of total population but it may not be applicable for other parts of
nation due to demographic and socio-cultural diversity.

Major findings of the study:

1. Association between the Instagram media marketing and buying behaviour of
customers:
 It is proved that marketing via Instagram significantly affect the buying
behaviour of customers.
 It is established that majority of customers consider Instagram as effective
means of marketing.
 The availability of social media in the form of Instagram has made
customers more informed about brands when making purchase decisions.
 Majority of customers strongly agree to the statement that they are more
exposed to marketing communication as a result of increased media use.

2. Association between demographic factors and the effect of Instagram

marketing on customer behaviour:
 Effect of Instagram is independent of gender
 Effect of Instagram is independent of education
 Effect of Instagram is independent of occupation
 Effect of Instagram independent of income
 Effect of Instagram is independent of age

3. Advertisements by e-retailing companies posted on social networking

accounts like Instagram motivate customers to visit and purchase from the
particular website.
4. Reviews on Instagram are important factors in motivating customers to
purchase from Websites.

Recommendations:
1. As the Project Report establishes a significant relationship between
impact of Instagram media marketing and customer behaviour, its
optimal use is the key to success in attracting more customers.

2. It is important to make advertisements attractive and customize them as

per the likes and dislikes of customers and prospects. The best way to do
so is to incorporate appealing images to text-based announcements to
make them more appealing.

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3. Instagram is most effective tool of marketing as per the study.

Significance of Study:
1. The origination of the internet created an entire new experience for
customers regarding gathering information, comparing products or
prices and the possibility of purchasing on the internet. Therefore,
customer behaviour on the internet is an important factor for
marketers.

2. To predict customer behaviour on the internet marketers, need to

understand how, where and why consumers behave online. This study
aims to explore the impact of Instagram media marketing on the
behaviour of customers.

3. The study will create more understanding about why and how on-line
customers go through their buying decision process (BDP).

4. The research can attribute to more efficient Instagram media

marketing strategies and more effective approach to attract
customers and serve them better to ensure frequent future visits and
purchases.

5. The research findings will help in drawing a generalized conclusion

regarding the influence of Instagram marketing practices of e-retailers
on customers. The result of the proposed research will be capable of
drawing a modified and more effective marketing policy.

Scope of future study:

There is a scope of more focused study on each category of product.
Similar studies can also be conducted in different cities with different
demographics.

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 Chapter 1
Introduction
Instagram was founded by Kevin Systrom and Mike Krieger in October, 2010. Its success
caught the eye of the most valuable social network in the world. In April, 2012, Facebook
acquired Instagram for $300 million in cash and 23 million shares of stock, a total purchase
value of nearly $1 billion.
Instagram’s social intrigue was not simply to influence the existing social networks for
sharing, but to build its own, supplemental network. This was a vital choice. The value of a
network is fundamentally in its connections. Through Instagram you can not only connect
and share with your friends, but you can also increase your professional network.
Instagram is one of the fastest growing social platforms and it has gained immense
popularity over the years. It has become one of the most essential social networks amongst
people, and continues to develop in popularity with over 400+ million dynamic users a
month. It’s no wonder then that businesses of all shapes and sizes are seizing the
opportunity to use Instagram as one of their main marketing channels for brand awareness.
If used properly, Instagram can be a great marketing tool for all sorts of businesses, whether
you are selling a product or a service.

As far as social media marketing channels go, Instagram has been a major power player for a
while. And that’s particularly true for ecommerce businesses that get access to a visual-
focused platform with enthusiastic followers and high engagement.

In the past few years, Instagram has grown and evolved at a rate similar to Facebook,
adopting new features at a lightning-fast rate and becoming even more valuable to
merchants and users alike.

you may know a great deal about Facebook marketing, or you may be an expert on
ecommerce marketing for Twitter, but in the case of Instagram, that kind of social cred
doesn’t mean squat.

Instagram is nothing like most other social networks. A whopping 70% of its 300 million
monthly users reside outside of the United States, and most of them fall between the ages
of 16 and 24. If this is your target demographic, grab a cup of Joe and get comfortable
because you are about to learn everything you need to get started on this mobile-intensive
social network.

“Getting a new idea adopted, even when it has obvious advantages, is difficult. Many
innovations require a lengthy period of many years from the time when they become
available to the time when they are widely adopted. Therefore, a common problem for
many individuals and organizations is how to speed up the rate of diffusion of an
innovation” Everett Rogers

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 Chapter 2
Literature Review
It is of vital importance to study and analyse the fact that social media can play a significant
role in shaping consumer perceptions and hence ultimately influencing the buying decision
process of consumer. In order to have a thorough understanding of the work done in this
field the research work of various Indian and international scholars and writers has been
studied and reviewed as follows:
1. Irene, False Pollach (2008) in their study on Media Richness in Online Consumer
Interactions:

An Exploratory Study of Consumer-Opinion Web Sites have exclusively discussed on

Consumer Opinion websites which provide opportunities to people to share their
opinions or views about a product or service, read others’ opinions and also interact
with other consumers. The writers have identified three major challenges which the
consumer opinion websites face and they are i) quality of contributions ii) motivating
users to participate iii) earning reader ‘s trust. The main objective of this article is to
find out ways by which the quality of the contents of these websites is enhanced so
that it becomes a useful source of information for the consumers as well as the
companies. The conclusions drawn from the study show that the consumer opinion
websites are more influential and provide more valuable information when they
separate the complex task of information search and dissemination from the simple
task of social interaction, and support each task with appropriate levels of richness.
The writers conclude that consumers should consider both positive and negative
points about a product or service before stating their opinion.

2. W. Glynn Mangold and David J. Faulds (2009) in social media:

The new hybrid element of the promotion mix, argues that social media is a hybrid
element of the promotion mix because in a traditional sense it enables companies to
talk to their customers, while in a non-traditional sense it enables customers to talk
directly to one another. The writers feel that social media being a hybrid element of
the promotional mix, should be incorporated as an integral part of the company’s
Integrated Marketing Communication (IMC). When Procter and Gamble (P&G) or
General Electric (GE) entered the arena of social media, they carefully framed their
communications with the market place in order to consistently reflect their
organizational values and they acknowledge the value of incorporating social media
into their IMC strategies and promotional efforts. The second promotion related role
of social media is: customers can use social media to communicate with one another.
The organization cannot control the content, timing, and frequency of the social
media-based conversations occurring between consumers. These stands in contrast
to the traditional integrated marketing communications paradigm where
organizations have a high degree of control over the customer ‘s communication.

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The

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 social media has profoundly affected all aspects of consumer behaviour, and has
bestowed consumers with power they have not previously experienced in the
marketplace.

3. Tom Smith (2010) in the social media revolution:

He says social media has changed the manner in which the communication between
the organizations and the customers were taking place; it has changed from talking
through mass media to listening and conversing through social media. Since the
consumer online is a commentator, reviewer and publisher, all the organizations
have to stop talking and start listening to how they are perceived online. Listening is
just the start, after listening, actively participating in the discussions with the
consumers and engaging them is crucial. This engagement with the consumers
online will be the key way for building long-term advocates of the brand, who not
only purchase their products but also recommend them on and offline. The writer
then opines that there is a huge opportunity for research, as the need for research
outputs and knowledge will shape the consumer opinion. Research and research
companies have a great scope for research through social media and the research
companies that evolve with social media can increasingly prosper.

4. Facebook, Twitter and Orkut by authors P. Sri Jothi, M. Neelamalar and R. Shakthi
Prasad (March 2011):
A study has been conducted on social networking sites like Facebook, Twitter and
Orkut by authors P. Sri Jothi, M. Neelamalar and R. Shakthi Prasad (March 2011) in
their research paper ―Analysis of social networking strategy in developing brand
communication‖, with the primary objective of determining the effectiveness of
brand communication strategy in advertising products and promoting brands on
social networking sites. The various reasons for social media being a widely used
platform, for advertising compared to the other traditional advertising mediums
have been discussed. The various ways that are being provided by social media
platform for its users to communicate with each other and interact with the brand
are discussed like chat, messaging, video, email, voice chat, file-sharing, blogging and
discussion groups. According to the writers’ views, the marketing communications
are becoming personal, interesting, interactive and social. Findings of the study
suggest that social media advertising has its impact on 70% of the users and half of
them access these ads i.e. games, quiz, events etc. It was found that the interaction
is more in the display banner advertisements in Face book and Orkut. Every Social
networking site has a unique communication strategy and user interaction. Face
book promote and allows user interactions, Twitter feeds posts relating the brand
and Orkut promote through click ads and promotional brand pages. Face shows
accessibility because of its huge popularity and Twitter gives more importance to the
text. The writers concluded by stating that social networking sites have the scope to
grow big for highly targeted marketing and advertising. Social networking sites
presents enormous opportunities to build the brands and have become a branding
hub.

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 5. Abu Bashar, Irshad Ahmad, Mohammad Wasiq in Their Research Paper
―Effectiveness Of Social Media As A Marketing Tool:
An Empirical Study‖ (2012) In an era where technology prevails, entrepreneurs as
well as marketers see the need to keep up with the fast pace of change or risk being
outdated. It is practically impossible to design a marketing strategy without
considering social networks. Social media had become really important gradient in
today ‘s marketing mix in general and in promotion mix in particular. Adapting some
form of marketing online through social media is a key node for all businesses,
especially in an industry where trends constantly change such as fashion and
handicrafts. The paper carries out empirical research to understand the effectiveness
of social media as a marketing tool and an effort has been made to analyse the
extent social media helps consumers in buying decision making. In addition,
strategies have been suggested for maximizing the effectiveness. Various statistical
tests have been applied to support the research hypoProject Report.

6. Shalaka Ayarekar (2015)- In Her Phd Project Report Impact And Effectiveness Of
Social Media Advertising On Young Working Women‘s Buying Behaviour With
Reference To Consumer Electronics –
A Study Of Selected Cities In Maharashtra And Gujarat submitted to School Of
Management, D.Y.Patil University state that there is a positive relationship between
social Media Marketing on buying behaviour of young working women. She carried
out research in Nasik, Mumbai and Ahmedabad to assert the impact of social media
on buying of electronic goods. Her Research leads to following points:
 Association between Positive reactions or feelings towards social media
advertisements with consumer buying behaviour
 Association between appealing factor of social media advertisements with
consumer buying behaviour
 Association between memorable visuals and slogans factor of social media
advertisements with consumer buying behaviour
 Association between attractive factor of social media advertisements with
consumer buying behaviour
 Association between Positive reactions or feelings towards social media
advertisements with online purchase behaviour
 Association between trustworthiness factor of social media advertising and online
purchase behaviour.
Research Gap:
From the literature review presented above, it is clearly evident that the research literature
on consumer behaviour and impact of social media marketing on buying decision process
(BDP) of customers leave a vast scope for additional research.
Many marketing analysts and researchers carried out research to identify and analyse the
various factors influencing customer behaviour.

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Most of these studies are associated with impact of demographic factors affecting customer
behaviour. These studies primarily emphasize on the purchasing stage of buying decision
process.

Chapter 6
Instagram
Meaning of Instagram:
The word Instagram is an amalgam of "instant camera" and "telegram." The iOS app was
released through the iTunes App Store on Oct. 6, 2010, and the Android app was released
on April 3, 2012.
Instagram is a social networking app which allows its users to share pictures and videos with
their friends.
The main intention of Instagram is to share and find the best photos and videos. Every user
profile has follower and following counts, representing how many people they follow and
how many other users are following them.
Definition of Instagram:
Instagram is a free, online photo-sharing application and social network platform that was
acquired by Facebook in 2012 and allows users to edit and upload photos and short videos
through a mobile app. Users can add a caption to each of their posts and use hashtags and
location-based geotags to index these posts and make them searchable by other users
within the app. Each post by a user appears on their followers' Instagram feeds and can also
be viewed by the public when tagged using hashtags or geotags. Users also have the option
of making their profile private so that only their followers can view their posts.
Basics of Instagram
Instagram is available for free on iOS, Android and Windows Phone devices. Instagram can
also be accessed on the web from a computer, but the users can only upload and share
photos or videos from their devices. Users can post pictures and videos using their
smartphones, apply diverse manipulation tools, 16 filters, in order to change the
appearance of an image, and share them directly on various platforms in addition to the
user’s Instagram page.
Instagram also permits the users to add some captions, hashtags using the # symbol to
describe the pictures and videos, and tag or mention other users by using the @ symbol
before posting them. In addition to photograph capturing and other functions, Instagram
also provides a similar platform for social connectivity as other social networking sites. Users
of Instagram can follow any number of other users.
However, in Instagram, the users following another Instagram user are called as followers.
Instagram’s social network is asymmetric, implying that if a user X follows Y, then Y need not

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follow X. Also, users can choose their privacy settings according to their own preferences
such that their posted photos and videos are available only to the user’s followers that need
approval from the user to be his/her follower.
By default, their images and videos are public which implies that they are visible to anyone
using Instagram app or Instagram website. The users can consume photos and videos,
mostly by viewing a core page showing a stream of the latest photos and videos from all
their friends, listed in a reverse chronological order.
They can also like or comment on these posts. Such actions will appear in referenced user’s
Updates page so that the user can keep track of likes and comments about their posts.
Therefore, Instagram can likewise be regarded as a social awareness tool similar to other
social media platforms such as Facebook and Twitter.
Meaning of Instagram Marketing:
Instagram marketing is a type of social media marketing in which marketers use the
Instagram platform to promote their business.
Definition of Instagram Marketing:
Instagram marketing is a type of social media marketing, which involves promoting a brand
on Instagram. This social media platform helps brands connect with an enormous audience,
increase brand awareness, and boost sales.
Instagram is one of the most popular social media sites. There are more than 800 million
active users, and 8 million of those accounts are registered to businesses, making it a highly
effective tool for marketing and branding.

Types of Instagram Marketing:

There are many different types of advertising formats on Instagram, including:
 Image ads-
A type of ad that includes a graphic to promote your business. An image ad consists
of an image that you provide featuring information about your business, services, or
products.
 Stories ads-
Story ads exist as dividers between Stories themselves—but, like News Feed ads, it's
difficult to tell them apart from the rest of the organic content within the format:
Aside from the “Sponsored” denotation, and, presumably, an increase in production
value, they look just like organic posts.
 Video ads-
Video advertising encompasses online display advertisements that have video within
them, but it is generally accepted that it refers to advertising that occurs before,
during and/or after a video stream on the internet.
 Carousel ads-

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 Carousel ads are a kind of advertising format that combines multiple videos or
images into single ad. Carousel ads are most popular on Instagram where you can
showcase a number of images to improve your chances of a conversion or sale.
 Collection ads-
A collection ad in Instagram includes a cover image or video followed by three
product images. When someone taps on a collection ad, they see an Instant
Experience – a full-screen landing page that drives engagement and nurtures interest
and intent.
 Explore ads-
Ads in Explore give advertisers an opportunity to extend their campaign to additional
audiences and be part of what's culturally relevant and trending, while reaching
people who are looking to discover something new. Leverage existing feed assets in
this new placement to reach more people in more places.
 IGTV ads-
IGTV Ads are a new way for creators to monetize their IGTV content. According to
Instagram, ads will appear when a user clicks to watch an IGTV video from the
preview button in their feed. They will be mobile-optimized, vertical videos and last
up to 15 seconds long.
 Shopping ads-
A type of ad that features detailed information about specific products that you sell.
To create Shopping ads, you'll set up your product information in Google Merchant
Centre and create Shopping campaigns in Google Ads.

Why is Instagram so good for marketing?

Instagram stories is a way to get more direct with your audience, and, thanks to updates
such as being able to mention accounts, add stickers, and shoppable tags, it's also become a
great way to promote products. Not only that, it allows brands to interact one-on-one with
their audience.

 More than 60 percent of Instagrammers follow at least one brand on the

social media site.
 Companies engage with about 4 percent of their followers on a regular
basis, whereas on Facebook and Twitter, regular engagement between
brands and followers is less than 1 percent.
 Less than 40 percent of businesses market on Instagram, whereas more than
90 percent market on Facebook.
 Approximately 70 percent of those who use Instagram have searched for brands
on the social media site.

Why is Instagram marketing important for online retailers?

In all honesty, Instagram may be the best marketing outlet for your business or it may be a
waste of time. I wouldn’t say it’s important for all online retailers, but when it works, it
really works. If your demographic includes young men and women and your product or
service lends
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itself to a visual strategy (and most do), Instagram cannot be ignored. Let’s review some of
the stats to see why this network is so important for many businesses.
Fascinating stats about Instagram marketing
In the second quarter of 2014, 20% of internet users aged 16-24 had an Instagram account
(source: All Facebook infographic)

Average post engagement for the top 25 brands on Instagram is 3.31% (Twitter is only 0.07%)
(source: Social Bakers)

Instagram users are 25 percent more likely than average Internet users to be in the top
income quartile. (Source: Social Times)

20% of internet users now have an Instagram account (source: Global Web Index)

Advantages of Instagram Marketing

If you aren’t convinced yet, hang tight. You’re about to see how other businesses are
benefiting from having a presence on Instagram. Don’t get left behind. The advantages are:

1. Brand awareness:
With 20% of internet users on Instagram, there is a great opportunity to introduce your
brand to many people who aren’t familiar with it yet.

2. Customer feedback:
Just like with any other social channel, you can benefit from receiving feedback on
Instagram. It may be through a complaint or opinions on new product ideas. Listen and your
customers will tell you what they think.

3. Relationship building
Instagram is a great outlet for your brand to express its personality, visually and through
captions and comments.

4. Increase in sales and interest

With increased brand awareness comes increased sales. The more people exposed to your
brand, the greater your likelihood of making a sale.

5. Potentially reaching a new demographic

Maybe your current clientele is aging and you’re looking for some fresh blood. There is no
better place to find those young in’s than on Instagram.

Disadvantages of Instagram marketing

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Instagram can be a valuable tool to help you reach more of your target audience than you
ever thought imaginable. But it can’t be everything to everyone. Here are three
disadvantages to Instagram marketing that you should consider before you get started:

1. Android and Apple aren’t the only kind of smartphones out there

Instagram is designed for Android and Apple smartphones, and although those make up the
majority of the market, it may end up excluding a small portion of your audience.

2. Copyright ownership can get tricky

Once you upload an image, it is out of your hands. If you are a photographer or spent a
great deal of money on a photograph, you may want to add a watermark. Just know that
this could inhibit sharing, if only a little.

3. It doesn’t reach every demographic

Your grandma may be on Facebook, but chances are good that she isn’t on Instagram.
Instagram is amazing if you are trying to reach a young demographic, but if your audience
consists of Baby Boomers, you may not want to waste your time with Instagram.

How to get started with Instagram marketing for your online store?

Create a Strategy
Before you start posting on Instagram, you need a strategy.

Set Goals
Start by setting some general goals. What do you really want to accomplish from your
presence on this network? Check the top five advantages above for some ideas.

Set Objectives
Once you fully understand your main goal, drill a little deeper and set some specific
objectives. If your goal is to increase brand awareness, how will you know when you have
achieved this? Does it translate to a certain number of followers, likes and comments? If so,
define this number along with a time frame to achieve it in your strategy. You may fall short,
and that’s okay, but it’s better to have goals to strive for than to be unsure whether you are
wasting your time.

Target Audience
You probably already know your customer pretty well, right? You should know her age,
geographic region and other interests. Find this person on Instagram, and find out what she
and others like her are doing.

1
Type of Content
Next, figure out what kind of images you will post. For example, your brand may have three
types of updates: Product, people (staff) and customers (ideally, using your products). Feel
free to get creative and expand upon these types or choose post types that are a better fit
for your brand.

Post Frequency
Then, determine how often you will post. This doesn’t have to be set in stone, but you
should have a minimum number of posts per week or day. This way, your account won’t
become stale. It’ll also help when it comes to scheduling posts in advance.

Track Performance
In order to determine whether you are meeting your goals and objectives, you will need a
way to measure performance. How many likes, visits and comments are your posts getting?
Which types of posts are the most popular? How many followers do you have? Is that
number growing or shrinking? Here are some apps that I have found helpful for monitoring
Instagram performance.

Chapter 7
Customer Behaviour
The study of consumer behaviour assumes that the consumers are actors in the
marketplace. The perspective of role theory assumes that consumers play various roles in
the marketplace. Starting from the information provider, from the user to the payer and to
the disposer, consumers play these roles in the decision process.
The roles also vary in different consumption situations; for example, a mother plays the role
of an influencer in a child’s purchase process, whereas she plays the role of a disposer for
the products consumed by the family.
Meaning of Customer Behaviour:
Consumer Behaviour is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It
refers to the actions of the consumers in the marketplace and the underlying motives for
those actions.
Definitions of Customer Behaviour:
According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the actions and decision
processes of people who purchase goods and services for personal consumption’.
According to Louden and Bitta, ‘consumer behaviour is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing of goods
and services.

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Consumer behaviour is the study of consumers' action during searching for, purchasing,
using, evaluating and disposing of products and services they expect will satisfy their need.
It helps marketers in understanding consumer decision-making process.
Consumers spend time carrying out research and comparing multiple products. They check
product ratings and also ask friends or sales professionals. The process takes longer to
complete. For example, when buying a TV, people spend a long time going to different
shops and comparing products.

Types of Customer/Consumer Behaviour:

There are four types of consumer behaviour:

Habitual buying behaviour,

Variety-seeking behaviour,
Reducing buying behaviour,
Complex buying behaviour.
Consumer behaviour types are determined by what kind of product a consumer needs, the
level of involvement, and the differences that exist between brands.
Nature of Consumer Behaviour:

1. Influenced by various factors:

The various factors that influence the consumer behaviour are as follows:

a. Marketing factors such as product design, price, promotion, packaging, positioning

and distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and

attitudes towards the product.

d. Situational factors such as physical surroundings at the time of purchase, social

surroundings and time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

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2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time

depending on the nature of products. For example, kids prefer colourful and fancy
footwear, but as they grow up as teenagers and young adults, they prefer trendy
footwear, and as middle-aged and senior citizens they prefer more sober footwear.
The change in buying behaviour may take place due to several other factors such as
increase in income level, education level and marketing factors.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave differently.
The differences in consumer behaviour are due to individual factors such as the nature of
the consumers, lifestyle and culture. For example, some consumers are technoholics. They
go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical means
to spend on shopping of advance technologies. But there are other consumers who, despite
having surplus money, do not go even for the regular purchases and avoid use and purchase
of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the
behaviour of the urban consumers is different from that of the rural consumers. A good
number of rural consumers are conservative in their buying behaviours.

The rich rural consumers may think twice to spend on luxuries despite having sufficient
funds, whereas the urban consumers may even take bank loans to buy luxury items such as
cars and household appliances. The consumer behaviour may also vary across the states,
regions and countries. It may differ depending on the upbringing, lifestyles and level of
development.

5. Information on consumer behaviour is important to the marketers:

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Marketers need to have a good knowledge of the consumer behaviour. They need to study
the various factors that influence the consumer behaviour of their target customers.

The knowledge of consumer behaviour enables them to take appropriate marketing

decisions in respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the
decision of buying a product on the basis of different buying motives. The purchase decision
leads to higher demand, and the sales of the marketers increase. Therefore, marketers need
to influence consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may
buy more quantity of certain items and very low or no quantity of other items. For example,
teenagers may spend heavily on products such as cell phones and branded wears for snob
appeal, but may not spend on general and academic reading. A middle- aged person may
spend less on clothing, but may invest money in savings, insurance schemes, pension
schemes, and so on.

8. Improves standard of living:

2
The buying behaviour of the consumers may lead to higher standard of living. The more a
person buys the goods and services, the higher is the standard of living. But if a person
spends less on goods and services, despite having a good income, they deprive themselves
of higher standard of living.

9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also
reflects it. The consumers who own luxury cars, watches and other items are considered
belonging to a higher status. The luxury items also give a sense of pride to the owners.

Importance of Studying Consumer Behaviour:

1. Modern Philosophy: It concerns with modern marketing philosophy – identify
consumers’ needs and satisfy them more effectively than competitors. It makes marketing
consumer-oriented. It is the key to succeed.
2. Achievement of Goals: The key to a company’s survival, profitability, and growth in a
highly competitive marketing environment is its ability to identify and satisfy unfulfilled
consumer needs better and sooner than the competitors. Thus, consumer Behaviour helps
in achieving marketing goals.
3. Useful for Dealers and Salesmen: The study of consumer Behaviour is not useful for
the company alone. Knowledge of consumer Behaviour is equally useful for middlemen
and salesmen to perform their tasks effectively in meeting consumers needs and wants
successfully. Consumer Behaviour, thus, improves performance of the entire distribution
system.
4. More Relevant Marketing Programme: Marketing programme, consisting of product,
price, promotion, and distribution decisions, can be prepared more objectively. The
programme can be more relevant if it is based on the study of consumer Behaviour.
Meaningful marketing programme is instrumental in realizing marketing goals.
5. Adjusting Marketing Programme over Time: Consumer Behaviour studies the consumer
response pattern on a continuous basis. So, a marketer can easily come to know the
changes taking place in the market. Based on the current market trend, the marketer can
make necessary changes in marketing programme to adjust with the market.
6. Predicting Market Trend: Consumer Behaviour can also aid in projecting the future
market trends. Marketer finds enough time to prepare for exploiting the emerging
opportunities, and/or facing challenges and threats.
7. Consumer Differentiation: Market exhibits considerable differentiations. Each segment
needs and wants different products. For every segment, a separate marketing programme is

2
needed. Knowledge of consumer differentiation is a key to fit marking offers with different
groups of buyers. Consumer Behaviour study supplies the details about consumer
differentiations.
8. Creation and Retention of Consumers: Marketers who base their offerings on a
recognition of consumer needs find a ready market for their products. Company finds it easy
to sell its products. In way, the company, due to continuous study of consumer Behaviour
and attempts to meet changing expectations of the buyers, can retain its consumers for a
long period.
9. Competition: Consumer Behaviour study assists in facing competition, too. Based on
consumers’ expectations, more competitive advantages can be offered. It is useful in
improving competitive strengths of the company.
10. Developing New Products: New product is developed in respect of needs and wants
of the target market. In order to develop the best-fit product, a marketer must know
adequately about the market. Thus, the study of consumer Behaviour is the base for
developing a new product successfully.
11. Dynamic Nature of Market: Consumer Behaviour focuses on dynamic nature of the
market. It helps the manager to be dynamic, alert, and active in satisfying consumers better
and sooner than competitors. Consumer Behaviour is indispensable to watch movements of
the markets.
12. Effective Use of Productive Resources: The study of consumer Behaviour assists the
manager to make the organisational efforts consumer-oriented. It ensures an exact use of
resources for achieving maximum efficiency. Each unit of resources can contribute
maximum to objectives.

Chapter 8
E-Retailing
E-Retailing is one of the parts of the e-commerce. The commercial transactions between
organisations using latest web technologies as per the policies of the organisation it takes
from the e-business. In 21st century without internet very difficult for the transactions. The
internet connection will be connected to the no. of marketing’s usage of ecommerce has
increased frequently across the developing countries such as internet. The India e-tailing
sector by focusing on the current and future of the big giant e-tailer in India, Flip kart. The
organisations that have presence only in the virtual world, they are present only online and
do not have physical stores, example of Amazon.com.
The internet as a medium to market their goods and services and try to keep in touch them.
The process of selling the goods and services in electronic media particularly the internet. In
the latest Top 100 Most Valuable Global Brands ranking, the top two most valuable retail
brands are the Chinese e-tailer Alibaba in the number one spot with $66.4 billion and
Amazon,
2
coming closely behind with $62.3 billion. On Monday E-tailers like Flip kart, Amazon and
Jabong now get 50 per cent of their revenues from consumers shopping on their mobile
phones. Predictive analytics is helping e-tailers provide better solutions real-time, enabling
compelling user experience even on mobile screens.
Meaning of E Retailing:
Electronic retailing is the sale of goods and services through the internet. E-tailing can
include business-to-business (B2B) and business-to-consumer (B2C) sales of products and
services. Amazon.com (AMZN) is by far the largest online retailer providing consumer
products and subscriptions through its website.

Online retailers can increase their sales and profits faster than a brick-and-mortar
establishment because selling online offers the advantage of being open twenty-four hours
a day, seven days a week. Selling online also allows retailers to sell their merchandise in any
part of the world without additional expense.
Amazon.com is leading the global e-commerce market, with a revenue of US$ 120,968
million in 2020 Worldwide, followed by Jd.com with US$ 83,058 million. Third place is taken
by Walmart.com with a revenue of US$ 41,114 million.
As of October 2021, Amazon accounted for 41 percent of the U.S. e-commerce market,
making it by far the leading online retailer the country. Second place was occupied by the e-
commerce site of retail chain Walmart, with a 6.6 percent market share, followed in third
place by eBay, with 4.2 percent.
Report of Associated Chambers of Commerce and Industry of India (ASSOCHAM) 2016
about e-retail sector in India:
The Indian e-commerce industry is likely to clock a compounded annual growth rate (CAGR)
of 35 per cent and cross the $100-billion mark in value over the next five years, a study
conducted by Associated Chambers of Commerce and Industry of India (Assocham) along
with PricewaterhouseCoopers (PwC) has said. Additionally, with improvement in
infrastructure such as logistics, broadband and internet-ready devices, there is likely to be a
significant increase in the number of consumers making purchases online, the study said.
It estimates around 65 million consumers in India to buy online in 2016, as against around
40 million in 2014. As per the study titled ―Evolution of e-commerce in India - Creating the
bricks behind the clicks‖, With nearly one-third of internet users already making purchases
online, the e-commerce growth will rely more on increased spending from existing buyers
than first- time online buyers While there have been concerns over steep discounting by e-
tailers, the study said, these flash sales and daily deals have played a major role in
contributing to the growth of e-commerce. The increasing adoption of smartphones and
tablet consumers has also aided to the e-commerce growth.
The report says that the steady growth in the number of web shoppers is helping to boost e-
commerce sales. Many consumers will prefer the web to bricks-and-mortar retailers in large
part because of online deals, about 52 per cent of shoppers said they made purchases
online rather than in stores because online retailers offered better deals.

2
Among popular shopping categories, the study showed that apparel sales capture the
biggest share of Indian e-commerce retail, along with computer and consumer electronics.
The two categories are likely to continue fuelling the market in the future as well. Computer
and consumer electronics and apparel and accessories are together estimated to account
for 42 per cent of total retail e-commerce.
Travel and tourism are also fast-growing segments with as much as 75 per cent of the total
industry having migrated to online commerce. Among other things, a major portion of
services such as air, train, bus, movie ticket bookings, hotel reservation and tour packages
have moved to the internet.
The report added that between 2017 and 2020, the e-commerce industry could spend
around 2-6 per cent of the revenue on warehousing and sortation centres, which would
translate to
$450-900 million. The industry is expected to spend an additional $500-1,000 million in the
same period on logistics functions, leading to a cumulative spend of $950- 1,900 million till
2017-2020 as per the report.
On the employment front, the report estimated the e-commerce industry to employ an
additional 100,000 people in warehousing and logistics, over the around 25,000 persons
working in the segment currently. The e-commerce industry in the country is likely to be
worth USD 38 billion by 2016, a 67 per cent jump over the USD 23 billion revenues for 2015,
as per industry body Assocham.
India ‘s e-commerce market was worth about USD 3.8 billion in 2009, it went up to USD 17
billion in 2014 and to USD 23 billion in 2015 and is expected to touch whopping USD 38
billion mark by 2016. Increasing internet and mobile penetration, growing acceptability of
online payments and favourable demographics has provided the e-commerce sector in India
the unique opportunity to companies connect with their customers, it said.
There would be over a five-to-seven-fold increase in revenue generated through e-
commerce as compared to last year with all branded apparel, accessories, jewellery, gifts,
footwear are available at a cheaper rate and delivered at the doorstep, it added.
It noted that the buying trends during 2016 will witness a significant upward movement due
to aggressive online discounts, rising fuel price and wider and abundant choice will hit the e-
commerce industry in 2016.
It observed mobile commerce (m-commerce) is growing rapidly as a stable and secure
supplement to the e-commerce industry. 106 Shopping online through smart phones is
proving to be a game changer, and industry leaders believe that m-commerce could
contribute up to 70 per cent of their total revenues, as per the statement by ASSOCHAM. In
India roughly 60-65 per cent of the total e-commerce sales are being generated by mobile
devices and tablets.
It noted that the browsing trends, which have broadly shifted from the desktop to mobile
devices in India, online shopping is also expected to follow suit, as one out of three
customers currently makes transactions through mobiles in tier-1 and tier-2 cities. In 2015,
78 per cent of shopping queries were made through mobile devices, compared to 46 per
2
cent in 2013. In

2
2015, the highest growth rate was seen in the apparel segment almost 69.5 per cent over
last year, followed by electronic items by 62 percent, baby care products at 53 per cent,
beauty and personal care products at 52 per cent and home furnishings at 49 per cent.
It revealed that Mumbai ranks first in online shopping followed by Delhi, Ahmedabad,
Bangalore and Kolkata. On the mode of payment, almost 45 per cent of online shoppers
reportedly preferred cash on delivery mode of payment over credit cards (16 per cent) and
debit cards (21 per cent). Only 10 per cent opted for internet banking and a scanty 7 per
cent preferred cash cards, mobile wallets, and other such modes of payment, it said. Among
the above age segments, 18-25 years of age group has been the fastest growing age
segment online with user growth being contributed by both male and female segments. The
survey revealed that 38 per cent of regular shoppers are in 18-25 age group, 52 per cent in
26-35, 8 per cent in 36-45 and 2 per cent in the age group of 45-60. Almost 65 per cent of
online shoppers are male as against 35 per cent female.
Top e-tailing companies of India:
Following Is a List of Top Online Shopping Sites In India on the basis of their revenue and
customer base:
1) Flipkart.
2) Amazon.in
3) Snapdeal.com
4) Jabong.com
5) Myntra.com
6) Homeshop18.com
7) Shopsclue.com
8) Firstcry.com
9) Netmed.com
10)Fabfurnish.com
Support Services in E-Retailing
The electronic retail business requires support services, as a prerequisite for successful
operations. These services are required to support the business, online or offline,
throughout the complete transaction-processing phases.
The following are the essential support services:

 Communication backbone

 Payment mechanism

 Order fulfilment

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 Logistics

e-retailing is not just about building a pretty website. An established management

consulting firm will bring in the requisite skills to evaluate business plan, check out
revenue models, help identify alliances and integrate supply chain processes with e-
commerce initiatives.

Questionnaire
I am the Student of MBA studying in BMS college of Technology and Management. I am
conducting this survey as a part of my project Report work. Kindly fill the questionnaire as
per the true knowledge and oblige:
1 Name
2 Gender Male / Female
3 Age 20 to 30 years 30 to 40 years 40 to 50 Years
50 years and above
4 Degree Up to Graduation Post-Graduation Above Post-
Graduation Graduation
5 Occupation Student Self-Employed Business Profession
6 Income 0-50,000 50,000-75,000 75,000-1,00,000 Above 1,00,000
7 Do you purchase products online? Yes No
8 What are the Products Grocery Pharmaceutical Building Materials Apparels
you purchase online?
9 How Often each of the Some times Most of the times Always Rare
following items online?
Tick 
Grocery
Pharmaceutical
Building Materials
Apparels
10 Which are the E retail Flipkart.com Amazon.in Snapdeal.com Others-Kindly
websites you purchase specify
from?
11 Which Website quotes Flipkart.com Amazon.in Snapdeal.com Others-Kindly
least competitive specify
Prize?
12 How Often do you Every hour Once in a Once in 2-3 Rarely
access internet on day days
Mobile or Computer?
13 What is your average
online shopping 1000-2000 2001- 4001 to 6000 Above 6000
expenditure per 4000
month?

3
14 Do you think that your frequency of
traditional shopping has changed due to YES No
online shopping?
15 If yes, does your frequency of traditional Increased Decreased
shopping?
16 How often do you engage in Some times Most of the times Always Rare
following activities? Tick 
Window shopping with no
intention to shop online
Use internet for researching a
product with the intension of
buying it in stores
Comparing products online &
actually purchasing on online
17 What attracts you to purchase from Website? Tick 
Past Experience
Prices of Products
Payment methods
Delivery method
18 How important are each of the following factors in Tick 
motivating you to shop online?
Ability to shop at a discounted price
Flexibility of shopping hours
Availability of greater variety of products/brand
Time Saving
19 Do you have an account on social Yes No
networking website?

20 If yes, which of the following social networking website Tick 

do you currently have an account with?
Face Book
Google
LinkedIn
Others-Kindly Name
21 How much time in a
typical day do you 30 to 60 1 hour to 2 hours to 3 Above3 hours
spend on social Minutes 2 hours hours
networking sites?
22 Do the advertisements by e-retailing Yes No
companies posted on your social networking
accounts motivate you to visit the particular
website?
23 Did you purchase any product through social Yes No
media?
24 If yes, what was the Advertisement Suggestion by
reason behind your Read online on social Friend Others-Kindly
purchase through review media specify
social media?

3
25 Do you send the link of e-retailing websites Yes No
having a special offer on products to your
friends and family?
26 Do you conduct product information survey Yes No
on website before purchase of product?
27 Does product information survey help to buy Yes No
right choice of product?
28 Do you compare the product information on Yes No
social media before purchase?
29 Do you compare the price of product from Yes No
different websites before purchase?
30 How many online
websites do you visit 1-2 3-4 4-5 Above 5
on an average before
making actual
purchase?
31 Do you know the products of Arya Builder Yes No
and Developers?
32 Have you visited the sight of Arya Builder and Yes No
Developers?
33 Have you purchased products online from Yes No
Arya Builder and Developers?
34 Have you got sufficient information about Yes No
Arya Builder and Developers in websites?
35 Are you happy with information provided by Yes No
Arya Builders and Developers about their
products online?
36 Have you satisfied with the products of Arya Yes No
Builder and Developers purchased online?
37 Are you happy with the Packing of products
of Arya Builder and Developers purchased Yes No
online?
38 Are you happy with the Pricing of products of
Arya Builder and Developers purchased Yes NO
online?
39 Are you happy with the Quality of products
of Arya Builder and Developers purchased Yes NO
online?
40 Do you feel that Arya Builder and Developers Yes NO
has more competitors in the online market?