16 Chapter 5

“In theory, there is no difference 6etween theory andpractice, hut
in practice there is a great deaC of difference”
SURVEY
OF FIRMS
AND
ONLINE
Part-I
Survey of Firms
In order to identify the various business applications, strategies, challenges and
opportunities of e-commerce in India, a survey was administered on 50 Indian firms (150
respondents) selected from Large Scale (including MNCs), Middle Scale and Small Scale
firms. Various parameters were developed on the basis of review of literature and
expert's opinions. The responses to these parameters were gathered and tabulated. Part I
of Chapter 5 deals with the survey of sampled firms. This part carries six sections (I to
VI). Opinions expressed by the respondents (top, middle and lower level of management)
of surveyedfirms towards different parameters have been explained in this section.
The past few years have seen a rise in the number of companies embracing
e-commerce technologies and Internet in India. The scale of business generated though
the e-commerce is multiplying exponentially. It has transformed the traditional business
models and system. Besides functioning as a communication medium, it has been used as
a market space where buyers and sellers exchange information, goods, services without
the hindrance of time and geographical constraints. Marketing functions are performed
under a hypermedia-computer mediated environment where interactivity and connectivity
are replacing the traditional face-to-face negotiation and communication. Internet allows
interactivity between the buyers and sellers to create a shared real time common
marketplace. But the hyper growth of Internet sell is still an American and UK
phenomenon and e-commerce has not taken off in other parts of the globe; although some
countries of Europe, Japan, and Australia are rapidly joining the bandwagon (Khatibi
et al 2003)1.
However, despite of the perceived benefits, e-commerce adoption in India is
hindered by a number of constraints and barriers. As a result of these constraints and
barriers several dot com and other IT enabled companies died in the beginning years of
e-commerce. Even today the Indian companies are hesitant and anxious to adopt this new
form of business technology. In short, e-commerce in India has not taken off as expected.
Therefore, there is a strong need to understand the various challenges behind the
implementation and adoption of e-commerce in the Indian corporate sector and to find
out various opportunities offered by this new form of business technology. There is also a
strong need to re-examine the strategies used by these companies. In order to identify the
various business applications, strategies, challenges and opportunities of e-commerce
among the Indian firms, a survey was administered on a sample size of 50 organizations.
Section I
Profile of Companies
Section I of the questionnaire deals with the profile of firms, which are chosen for
the survey. This section of questionnaire deals with the personal information of the
organization under study. Responses were collected by the Industry sectors
(Manufacturing/Services/Trading/any other) and the types (National/Multinational) and
sizes (Large/Medium/Small) of organization. Further, the respondents from these
1 Khatibi, Ali; Thyagarajan, V. and A. Seetharaman (2003), "E-Commerce in Malyaisa: Perceived Benefits
and Barriers ”, Vikalpa, Vol. 28, No. 3, pp 77-82.
118
organizations were splitted into three categories: Top Management; Middle Management
and Lower Management. Table 5.1.1. and 5.1.2 indicates the profile of surveyed firms
and respondents.
Table 5.1.1: Samples from the Industries
Delhi Haryana Noida Total
Large Scale
Industries
Multinational 5 3 2 10
Indian 5 3 2 10
Medium Scale
Industries
5 5 5 15
Small Scale
Industries
5 5 5 15
Total 20 16 14 50
Thus, total 50 manufacturing, trading, and services industries with the

representatives from large scale, medium scale and small scale industries using
e-commerce technology in their operations, located in Haryana, Delhi and Noida were
chosen. Table 5.1.2 indicates the profile of respondent from selected organizations.
Table 5.1.2: Sample of Respondents rom Organizations

Industries Top Middle Lower Total
Management Management Management
Large Scale
Multinational 10 10 10 30
Indian 10 10 10 30
Total (A) 20 20 20 60
Medium Scale
Total (B) 15 15 15 45
Small Scale
Total (C) 15 15 15 45
A+B+C 50 50 50 150
Thus, total 150 respondents (from top management, middle management and
lower management) were selected and surveyed frrom different types of the
organizations.
119
Section II2
Section II of the questionnaire mainly deals with the introduction/initiation of
e-commerce technology in the organizations. This section comprises several questions
regarding the introduction/initiation process of e-commerce technology.
Year of Introduction/initiation of e-commerce

First question of this section deals with the year in which e-commerce was
actually introduced or first initiative was taken place in any organization. The
respondents were not given any options of time periods; they were free to mention the
year in which e-commerce technology was first introduced or first initiative was taken
place in their organization. The responses of the respondents were recorded and shown in
table 5.2.1.
Table 5.2.1: Time of Introduction/initiation of e-commerce
Time Period No of Respondents
1995-1998 (T,) 10(20)
1999-2002 (T2) 26 (52)
2003-2006 (Tj) 14(28)
Total 50 (100)
Note: Figures in parenthesis indicate percentages
To provide meaningful results, these responses were classified into three

categories: period of between 1995-1998, period of between 1999-2002 and period of
between 2003-2006. Table 5.2.1 indicates that 20 per cent respondents belong to Ti
category, 52 per cent respondents belong to T2 category and remaining 28 per cent of the
respondents belong to category T3
Time taken to launch e-commerce initiative

Second question of this section deals with the actual time taken by the organization
to launch e-commerce. The respondents were given the options of five time periods and
asked to choose the most relevant. Their responses were recorded and shown in the table
5.2.2.
Table 5.2.2: Time taken to launch e-commerce initiative
Time Period No of Respondents
Less Than 6 Months (P|) 8 (16)
6-12 Months (P2) 19(38)
12-18 Months (1-1/2) (P3) 13 (26)
18-24Months (2Years) (P4) 6 (12)
More than 2 Years (P5) 4 (8)
Total 50 (100)
Note: Figures in parenthesis indicate percentage
2 Responses of this section were collected from top management or from the middle management, as most
of the questions are factual in nature. Therefore the same size is 50 for this section. The logic behind this is
that there is no need to collect the data from all the levels of the management, as planning of introduction of
technology like e-commerce is primarily a work of top or the middle management.
120
Table 5.2.2 indicates that 16 per cent respondents belong to Pi, category, highest
38 per cent to P2 category, 26 per cent to P3 category, 12 per cent to P4 category, and rest
only 8 per cent respondents belong to P5 category of time period
Nature of e-commerce initiative

Third question of this section deals with the nature of e-commerce initiative. The
respondents were asked to choose whether the e-commerce initiative was formal (Nj) or
informal (N2) in nature. Their responses were recorded and shown in the table 5.2.3.
Table 5.2.3: Nature of E-Commerce initiative

Nature of Initiative No of Respondents
Formal (N|) 39 (78)
Informal (N2) 1 1(22)
Total 50(100)
Table indicates that highest 78 per cent of the respondents belong to the N|
category and remaining 22 per cent belong to N2 category.
Present level of using e-commerce in comparison to the year of introduction

Fourth question of this section deals with the present level of using e-commerce
technology in comparison to the year when e-commerce was first introduced in the firm.
Broadly, the respondents were given two options: first, if the level of e-commerce usage
increases and second if the level of e-commerce usage decreased. The respondents were
asked to select the most appropriate option. Their responses were recorded and shown in
the table 5.2.4.and 5.2.5. Table below indicates the responses of the respondents, who
were agreed with the parameter that level of usage increasd compare to the year of
introduction of e-commerce.
Table 5.2.4: Level of e-commerce usage (if increased)
Increase (in %) No of Respondents
0-20 (I,) 22 (44)
20-40 (I2) 11 (22)
40-60 (l3) 6 (12)
60-80 (I4) 5 00)
80-100 (I5) 3 (6)
Total 47 (94)
Table indicates that out of 50 organizations, 94 per cent respondents were agreed
with the option first. Among them highest 44 per cent respondents belong to category
22 per cent belong to I2 category 12 per cent of the respondents belong to I3 category, 10
per cent belong to I4 category and only 6 per cent of the respondents belong to I5 category.
Only 3 organizations selected the second option. Also the responses of such
respondents have been collected and shown in table 5.2.5.
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Table 5.2.5: Level of e-commerce usage (if decreased
Decrease (in %) No of Respondents
0-20 (D,) 2(4)
20-40 (D2) 1 (2)
40-60 (D3) 0(0)
60-80 (D4) 0(0)
80-100 (Ds) 0(0)
Total 3(6)
Table indicates that only 4 per cent of the respondents belong to Di category and
only 2 per cent of the respondents belong to D2 category.
Difficulties in planning of e-commerce initiative

Last question of this section deals with the difficulties faced by the indian firms
during the planning of e-commerce initiative. Respondents were asked to choose the most
appropriate options (Pj, P2, P3, P4. P5 and P6). Their responses were recorded and presented
in table 5.2.6.
Table 5.2.6: Difficulties in planning of e-commerce initiative
Parameters No of Respondents
You were not convinced with the benefits of E-Commerce (Pi) 10(20)
It was difficult for you to change your mind for this change. (P2) 6 (12)
Financial burden (P3) 18(36)
Enough advice was not available (P4) 7 (14)
Internal (Top/Middle/lower Management) and External 5 (10)
(Government Policies, Legal Regime etc.) were not looking very
supportive (P5)
Any other (P6) 4 (8)
Total 50 (100)
Table indicates that 20 per cent respondents belong to parameter category of P^
12 per cent are from the category of P2, highest 36 per cent belong to P3, 14 per cent
belong to the category of P4. 10 per cent to P5 category and only 8 per cent are from the
category of Pe.
Further to make an in-depth analysis, the respondents (4 respondents) were asked
to mention the name of other problems (other than Pi to P5) they faced during the
planning of e-commerce initiative. Their responses were recorded and interpreted here:
lack of skilled manpower to handle e-commerce; poor overall IT infrastructure; low
Internet and PC penetration and lack of sound e-commerce strategy were identified as
another important problems they faced during the time of planning to introduce
e-commerce in their firms..
Section III
Level of participation in e-commerce
Section III of the questionnaire deals with the level of implementation of
e-commerce technology in the organizations. The first question of this section deals with
the level of participation3 in e-commerce. The respondents were given the various
3
Participation in E-commerce would mean that a firm has the following facilities and activities.
122
‘facilities’ options (Fi, F2, F3, F4, F5, F6, F7 and Fg) and asked to choose the all-applicable
choice. Their responses were recorded and shown in the table 5.3.1.
Table 5.3.1: Level of participation in e-commerce

Facilities MNCs Indian Medium Small Total
Large Scale Scale
Internet Connection (F1) 10 10 9 6 35 (70)
E-mail (F2) 10 10 9 5 34 (68)
Website/homepage (F3) 10 10 6 2 28(56)
Transactional web server (F4) 10 8 4 1 23 (46)
EDI (Electronic Data Interchange) (F5) 10 7 2 0 19(38)
FAX (F«) 10 10 13 12 45(90)
ERP (Enterprise Resource Planning) (F7) 8 5 2 0 15(30)
Video/Tele conferencing/web (F8) 7 3 2 0 12(24)
Shopping cards4/interactive chat (F9) 5 2 1 0 8(16)
Table indicates that 70 per cent of the respondents belong to Fi category, 68 per
cent to F2 category, 56 per cent belong to F3 category. 46 per cent belong to F4,38 per cent
belong to F5 category, highest 90 per cent belong to F6 category. 30 per cent belong to F7,
24 per cent to Fg and only 16 per cent belong to the F9 category.
Business Applications of E-Commerce

Second question of this section deals with the major business applications of
e-commerce technology. The respondents were given the option of various business
applications of e-commerce technology and asked to choose all the applicable options
(A], A2. A3, A4 As, Ag A7, Ag, A9 and A10) of their choice. The responses of the respondents
were collected and shown in table 5.3.2.
Table 5.3.2: Business applications of e-commerce

E-Commerce Applications MNCs Indian Medium Small Total
Large Scale Scale
Online products/services catalogue (Ai) 10 10 8 4 32(64)
Exchanging data and information (A2) 10 10 7 2 29 (58)
Electronic order from customers (A3) 10 8 6 2 26 (52)
Electronic payment from customers (A4) 10 6 3 2 21 (42)
Electronic order to/from suppliers (A5) 10 5 2 1 18(36)
Electronic payment to/from suppliers (A6) 10 5 1 1 17(34)
B2B (Business to Business) (A7) 10 9 5 3 27(54)
B2C (Business to Customers) (Ag) 10 9 6 3 28 (56)
Both B2B and B2C (A9) 10 8 4 1 23 (46)
C2B (Customer to Business) (A 10) 9 6 2 0 17(34)
4 On a website that sells products or services online, the shopping cards is the name given to the software
that initiates the real life shopping process, acting as an online shop’s catalogue and ordering process.
Typically, a shopping card is the interface between a company’s website and its backend infrastructure,
allowing consumers to select merchandise, review what they have selected, make necessary modifications
or additions and purchase the merchandise
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Table 5.3.2 indicates that highest 64 per cent respondents belong to business
application category Ah 58 per cent belong to A2, 52 per cent belong to A3 category. 42
per cent belong to the category of A4. 36 per cent are from A5. lowest 34 per cent are from
the category of Afi, 54 per cent respondents are from the application category of Aj and
56 per cent of the respondents are from the application categories of Ag. 46 per cent of the
respondents belong to the category of A9 and again lowest 34 per cent respondents are
from the application category of Aio.
Ranges of E-Commerce transactions

Third question of this section belong to the ranges of e-commerce transactions in
comparison to the traditional transactions. The respondents were given the four options
(R( R2 R3 and R4) and asked to choose the most appropriate one. Their responses were
recorded and shown in table 5.3.3.
Table 5.3.3; Ranges of e-commerce transactions
Range (in %) MNCs Indian Medium Small Total
Large Scale Scale
0-25 (R|) 6 7 12 15 40 (80)
25-50 (R2) 2 1 2 0 5 (10)
50-75 (R3) 1 1 1 0 3 (6)
75-100 (R4) 1 1 0 0 2 (4)
Total 10 10 15 15 50 (100)
Table indicates that highest 80 per cent respondent belong to the range category
of Ri. 10 per cent are from R2 category, 6 per cent are from the category and lowest 4 per
cent are from the category R4
Key reasons behind the adoption of e-commerce

Fourth question of this section deals with the finding out the key reasons behind
the adoption of e-commerce technology. Respondents were given the options of seven
key parameters (K|, K2. K3. K4. Ks K& and K7), and asked them to select the most
appropriate one. The responses of the respondents were collected and shown in table
5.3.4.
Table 5.3.4: Key reasons behind he adoption of e-commerce
Parameters MNCs Indian Medium Small Total
Large Scale Scale
To Increase the sale (K]) 2 3 5 4 14(28)
Expanding the existing markets (K2) 3 1 1 2 7 (14)
Accessing the new markets (K3) 3 2 2 2 9 (18)
Strengthening the market share (K4) 1 1 1 2 5 (10)
Because competitors were e-enabled 0 1 2 1 4 (8)
(Ks)
Because customers demand It (ICO 0 0 1 1 2 (4)
Lowering the overall cost of operation 1 2 3 -»
9 (18)
(K7)
Total 10 10 15 15 50 (100)
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Table indicates that highest 28 per cent respondents belong to Kj category, 14 per
cent belong to K2, 18 per cent to K3. 10 per cent to category K4, 8 per cent belong to K5
category, lowest 4 per cent belong to K6 category and again 18 per cent belong to
K7category.
E-commerce and quality of work
Fifth question of this section deals with, how e-commerce improves the quality of
work. Respondents from top management, middle management and lower management
were asked to respond on the various parameters (Qi, Q2, Q3, Q4. Q5, Ck Q7 and Qg). The
responses to these parameters were gathered on the 5-point scale. The responses of the
respondents were recorded and shown in the table 5.3.5
Table 5.3.5: E-commerce anc quality of work

Parameters Strongly Agreed Neither Disagree Strongly Total
Agreed Agree/Nor Disagree
Disagree
Better quality information (Qt) 55 49 11 19 16 150
(36.67) (32.67) (7.33) (12.67) (10.66) (100)
Empowers you to take 42 60 15 19 14 150
informed decisions (Q2) (28) (40) (10) (12.67) (9.33) (100)
Cutting downs on meeting (Q3) 56 63 14 10 7 150
(37.33) (42) (9.33) (6.67) (4.67) (100)
Improving the exchange of 32 49 24 26 19 150
critical knowledge (Q4) (21.33) (32.67) (16) (17.33) (12.67) (100)
Eliminating red tap (Q5) 41 51 30 10 18 150
(27.33) (34) (20) (6.67) (12) (100)
Benefits of specialization (Q6) 28 42 29 31 20 150
(18.67) (28) (19.33) (20.67) (13.33) (100)
Better directing and 25 32 28 40 25 150
coordinating (Q7) (16.67) (21.33) (18.67) (26.67) (16.67) (100)
Time and energy saving (Qg) 61 56 9 12 12 150
(40.67) (37.33) (6) (10) (8) (100)
Better controlling (Q9) 32 57 13 29 19 150
(21.33) (38) (8.67) (19.33) (12.67) (100)
Table indicates that majority of the respondents showed their acceptance

regarding all the parameters indicating the reasons how e-commerce improved the quality
of work. 36.67 per cent respondents were strongly agreed with parameter Qi, whereas
32.67 per cent supported them. 28 per cent of the respondents were strongly agreed with
the parameter Q2, whereas 40 per cent of the respondents supported them. Regarding Q3
parameter 37.33 per cent of the respondents were strongly agreed and 42 per cent
supported them. 21.33 per cent respondents were strongly agreed with parameter Q4
whereas 32.67 per cent supported them. 27.33 per cent respondents showed their strong
acceptance regarding the parameter Q5. whereas 34 per cent supported them. Only 18.67
per cent were strongly agreed with Q6 parameter whereas 28 per cent respondents
supported them. 16.67 per cent respondents showed their strong acceptance regarding the
Q7 parameter and 21.33 per cent supports them. Respondents showed their very strong
acceptance regarding the Qg parameter, 40.67 per cent respondents were strongly agreed
125
whereas 35.33 per cent supported them. Very few about 18 (10+8) per cent respondents
showed their rejection regarding the parameter. For the last parameter, 21.33 per cent
respondents were strongly agreed and 38 per cent supported them. 19.33 per cent of the
respondents were disagreed and 12.67 were strongly disagreed regarding Q9 parameter.
Negative impact of e-commerce on working efficiency
Sixth question of this section deals with to find out any negative impact of
e-commerce technology on the working efficiency level of firms. The responses were
collected from the top, middle and lower level of management. The respondents were
given options (Wiand W2) and asked to choose the most appropriate one. Their responses
were recorded and shown in the table 5.3.6.
Table 5.3.6: Negative impact of e-commerce on working efficiency
Opinion MNCs Indian Medium Small Total
Large Scale Scale
Yes (W,) 1 3 4 7 15 (10)
No (W2) 29 27 41 38 13.5 (90)
Total 30 30 45 45 150(100)
Table indicates that most of the respondents were disagreed with the statement.
Only 10 per cent respondents were agreed with the option (Wi) whereas 90 per cent were
disagreed with (W2) option.
Further, respondents of W) category were asked to mention the percentages and
response behind their opinion. For the purpose of systematic study, their responses have
been categorized into three categories: Ri; R.2; and R3 The responses were recorded and
shown in table 5.3.7.
Table 5.3.7: Percentage (negative) change in the working efficiency
Range in MNCs Indian Medium Small Total
reduction Large Scale Scale
0-5 (R,) 1 2 3 3 9(60)
5-10 (R2) 0 1 1 2 4 (26.67)
10-15 (R3) 0 0 0 2 2 (13.33)
Total 1 3 4 7 15 (10)
Table indicates that highest 60 per cent respondents belong to the category of Ri,
26.67 per cent of the respondents belong to the category of R2 and only 13.33 per cent
belong to the R3 category. Some of the reasons identified by the respondents behind the
negative impact of e-commerce on the working efficiency were: physical and mental
disorders, possibilities of misuse and introvert and fussy.
Problems while working with e-commerce technology
The last question of this section deals with the problems faced by employees
working with e-commerce technology. Firstly, the respondents were asked to select the
126
most appropriate option: whether they experienced any problem while working with
e-commerce technology (Oi) or not (O2). Their responses in this regard were collected
and shown in the table 5.3.8 (I).
Table 5.3.8 (I): Working problems with e-commerce
Large Scale Scale
Yes(Oi) 12 15 19 24 70 (46.67)
18 15 26 21 80 (53.33)
No (02)
Total 30 30 45 45 150
Table indicates that only 46.67 per cent respondents showed their acceptance regarding
this statement and highest 53.33 per cent of the respondents were disagreed with the
statement. Further, the respondents were given 10 parameters (Vu V2, V3 V4 V5> V6> V7-
V8 V9 and Vio) asked to identify the problems faced by them while working with
e-commerce technology. Their responses were recorded and shown in table 5.3.8 (II)
Table 5.3.8 (II): Problems faced by respondents while working with e-commerce
Large Scale Scale
Lack of secrecy (Vj) 2 2 1 3 8(11.24)
Possibility of misuse of technology (V2) 1 1 0 1 3 (4.28)
Lack of personal touch (V3) 0 1 1 2 4(5.71)
Expensive (V4) 3 4 5 7 19 27.14)
Failure of networks (V5) 1 1 1 1 4(5.71)
Non availability of quality devices (V6) 1 1 3 2 7(10)
Problems of maintenance (V7) 1 1 2 1 5(7.14)
Lack of interest in work (psychological 1 1 1 1 4(5.71)
barrier) (V8)
Non availability of staff (V9) 2 2 4 5 13 18.57)
Any other (V|0) 0 1 1 1 3 (4.28)
Total 12 15 19 24 70 (100)
Table indicates that 11.24 per cent respondents belong to the problem category
Vi, 4.28 per cent belong to V2 category, and 5.71 per cent respondents belong to V3
category. Highest 27.14 per cent respondents belong to the problem category V4> 5.71 per
cent belong to V5, 10 per cent respondents belong to V&, 7.14 per cent belong to V7,5.71
per cent of the respondents belong to the category Vg, 18.57 per cent of the respondent
belong to the category V9 and rest 4.28 per cent belong to the category V10.
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Section IV
Opportunities offered by e-commerce
Section IV of the questionnaire deals with the opportunities offered by
e-commerce technology. The very first question of this section deals with the opinion of
respondents regarding the opportunities offered by e-commerce for Indian firms in the
coming next five years. The respondents were given the options (Ei E2 and E3) and asked
to select the most appropriate.Their responses were collected and shown in table 5.4.1 (I).
Table 5.4.1 (I): Opinion regarding opportunities offered by e-commerce
Large Scale Scale
Yes (Ei) 21 16 22 18 77 (51.33)
No (E2) 6 8 12 13 39 (26)
Don’t 3 6 11 14 34 (22.67)
know (E3)
Total 30 30 45 45 150
Table indicates that 51.33 per cent respondents belong to the opinion category E),
26 per cent of the respondents belong to the category E2 and rest 22.67 per cent belong to
the opinion category E3.
Further, those who responded their answers in ‘yes’ (Ei), were asked to indicate
the percentage of transactions of e-commerce they are expected to increase in the next
five years from now (Gi. G2, G3 and G4). Responses of 77 (51.33) percent respondents
were again collected and shown in the 5.4.1 (II).
Table 5.4.1 (II): Expected future growth of e-commerce
Expected Growth (in %) MNCs Indian Medium Small Total
Large Scale Scale
0-25 to the Present Level (GO 15 11 19 16 61 (79.22)
25-50 to the Present Level (G2) 3 4 2 1 10 (12.98)
Total 21 16 22 18 77 (100)
Table indicates that 79.22 per cent belong to Gi category, 12.98 per cent of the
respondents belong to the category G2j 6.49 per cent of the respondents belong to
category G3 and rest 1.31 per cent of the respondents belong to category G4
Key Reasons behind E-Commerce Opportunities
Second question of this section deals in finding out the key reasons behind the
future growth of e-commerce in India. Respondents from top management, middle
management and lower management were given the options (R|, R2i R3, R4, Rs, R6 and R7)
and asked to indicate the degree of agree and disagree regarding various parameters (Ri,
R2. R3, R4. R5, Rg and R7). Their responses were collected and shown in table 5.4.2.
128
Table 5.4.2: Key reasons behind e-commerce opportunities
Reasons Strongly Agreed Neither Disagree Strongly Total
Agreed Agree/Nor Disagree
Disagree
More and more customers are 70 58 6 11 5 150
shifting to the Internet/other (46.67) (38.67) (4) (7.33) (3.33) (100)
ICTs for buying. (Ri)
Indian government is 25 29 26 42 28 150
encouraging businesses to (16.67) (19.33) (17.33) (28) (18.67) (100)
adopt e-commerce
technologies. (R2)
Internal benefits of using 52 63 15 13 7 150
e-commerce technologies are (34.67) (42)
(10) (8.67) (4.67) (100)
motivating Indian firms to
reap the benefits of
e-commerce (R3)
Greater reach and easy 39 47 33 21 10 150
accessibility of Internet and (31.33)
(14)
(26) (22) (6.67) (100)
other electronic
communication resources will
help Indian companies tap the
untapped Indian market. (R4)
Advancement in information 27 39 22 39 23 150
technology and knowledge (15.33) (100)
(18) (26) (14.67) (26)
based economy. (R5)
Financial institution are 41 50 23 19 17 150
providing healthy (27.33) (33.33) (15.33) (12.67) (11.34) (100)
environment for electronic
payment. (R6)
International market and 33 46 37 27 7 150
business environment is (22) (30.67) (24.67) (18) (4.67) (100)
forcing Indian companies to
adopt e-commerce (R7)
Table indicates that 46.67 per cent respondents were strongly agreed with
parameter Ri, whereas 38.67 per cent supported them. 16.67 per cent respondents were
strongly agreed in case of parameter R2, whereas only 19.33 per cent supported them.
34.67 per cent respondents were agreed with the parameter R3 whereas very high 42 per
cent supported them. 26 per cent respondents were strongly agreed with parameter R7
whereas 31.33 percent supported them. Lowest 18 per cent respondents were strongly
agreed with parameter R5, whereas 26 per cent supported them. 27.33 per cent
respondents were strongly agreed with parameter R6 whereas 33.33 per cent supported
them. 22 per cent respondents were strongly agreed with parameter R7 whereas 30.67
percent supported them.
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Future opportunities in e-commerce models
Question 3 of section IV deals with the models of e-commerce, which is expected
to offer huge opportunities in the future. The respondents were given the option of four
business models (Mi. M2. M3 and M4) of e-commerce and were asked to select the most
preferred by them. Their responses were recorded and shown in the 5.4.3.
Table 5.4.3: Future Opportunities in E-Commerce Models
Model’s for Future MNCs Indian Medium Small Total
Large Scale Scale
B2B (M,) 17 19 26 23 85 (56.66)
B2C (M2) 10 7 14 19 50 (33.33)
C2B (MO 1 2 2 1 6 (4)
C2C (M4 2 2 3 2 9 (6)
Total 30 30 45 45 150
Table indicates that highest 56.66 per cent respondents belong to model category
of Mi. 33.33 per cent of respondents belong to category of M2. 4 per cent of respondents
belong to the category M3 and 6 per cent belong to the model category of M4.
Future opportunities in B2B model of e-commerce
This is the second last question of section IV. This question deals with the sector
in which, B2B model of e-commerce will offer more opportunities. The respondents were
given the option of four sectors (Si, S2, S3 and S4), and were asked to select the most
appropriate according to them. Their responses were collected and shown in table 5.4.4.
Table 5.4.4: Future opportunities in B2B model of e-commerce
Industry Sector MNCs Indian Medium Small Total
Large Scale Scale
Manufacturing (S|) 11 13 20 28 72 (48)
Services (S2) 9 10 13 12 44 (29.33)
Trading (S3) 7 6 9 3 25 (16.67)
Any Other (S4) 3 1 3 2 9 (6)
Total 30 30 45 45 150 (100)
Table indicates that highest 48 per cent respondents belong to industry category
Si, 29.33 per cent belong to category S2, 16.67 per cent of the respondents belong to
category of S3 and rest 6 per cent belong to industry category S4.
Future opportunities in B2C model of e-commerce
This is the last question of section IV. This question deals with the product and
services in which B2C model of e-commerce is going to generate huge opportunities in
the future. The respondents were given 10 options (Fit F2, F3, F4. F5, F^ Fy Fs and F9) of
product and services and asked to choose the most appropriate among them. Their
responses were collected and shown in table 5.4.5.
130
Table 5.4.5: Future opportunities in B2C model of e-commerce
Prod ucts/Services MNCs Indian Medium Small Total
Large Scale Scale
Books (F|) 3 4 7 6 20(13.33)
Videos/DVDs/Games (F2) 2 3 4 3 12(8)
Airline/Railway Tickets 7 8 11 10 36 (24)
Reservation (F3)
Music (F4) 5 2 5 6 18(12)
Electronic Equipments (F5) 4 2 3 2 11 (7.33)
Computer Hardware (Fg) 3 3 5 4 15(10)
Computer Software (F7) 2 3 3 7 15 (10)
Automobiles (Fg) 3 2 5 4 14(9.33)
Event Tickets (Fg) 1 2 1 2 6 (4)
Any Others (F10) 0 1 1 1 3 (2)
Total 30 30 45 45 150 (100)
Table indicates that 13.33 per cent respondents belong to category F), 8 per cent
belong to F2, highest 24 per cent of the respondents belong to F3 category, 12 per cent
respondents belong to F4 category, 7.33 per cent respondents belong to F5 category, 10-10
per cent each of the respondents belong to the category F& and F7, 9.33 per cent of
respondents belong to Fg category, 4 per cent to F9 and only 2 per cent of the respondents
belong to F10 category.
Section V
Section V of questionnaire is very important as it deals with the various
assumptions regarding the e-commerce implementations. This section consists of 11
questions. The respondents were asked to respond on these questions. Their responses
were recorded and shown in various table.
Facilitators/utilities/benefits behind the application of e-commerce
The first question of this section deals with the facilitators/utilities/benefits behind
the application of e-commerce in Indian firms. The respondents were given 4 sets of
parameters (A, B, C and D) and they were asked to select the most appropriate responses
to these parameters. The responses to the respondents were gathered on 5 point scale and
Table 5.5.1: facilitators/utilities/benefits behind the application of e-commerce
Parameters 5 4 3 2 1 Total
No. 1. Cost reduction facilitators (A)
1 Reduced marketing and 62 58 8 15 7 150
distribution cost (At) (41.33) (38.67) (5.33) (10) (4.66) (100)
2 Reduced sales costs (A2) 57 66 11 10 6 150
(38) (44) (7.33) (6.67) (4) (100)
3 Reduced cost of material (A3) 41 49 18 25 17 150
(27.33) (32.67) 02) (16.67) (11.33) (100)
4 More efficient supply chain 51 54 19 15 11 150

management (A4) (34) (36) (12.67) (10) (7.33) (100)
131
5 Improved internal functions 48 62 13 17 10 150
(A5) (32) (41.33) (8.67) (11.33) (6.67) (100)
2. Market facilities (B)
6 Greater market reach (Bi) 53 49 7 27 14 150
(35.33) (37.67) (4.67) (18) (9.33) (100)
7 Improved customer services 41 62 9 21 17 150
(B2) (27.33) (41.33) (6) (14) (11.33) (100)
8 Increased customer loyalty 23 46 17 43 21 150
and retention (B3) (15.33) (30.67) (11.33) (28.67) (14) (100)
9 Increase company brand and 37 41 21 29 22 150
image(B4) (24.67) (27.33) (14) (19.33) (14.66) (100)
10 Greater competitive 40 57 24 17 12 150
advantage (B5) (26.67) (38) (16) (11.33) (8) (100)
3. Community and process driven facilitators (C)
11 Pressure and insistence for 53 60 17 12 8 150
Electronic Commerce/mode (35.33) (40) (11.33) (8) (5.33) (100)
by competitors and foreign
buyers (CO
12 Proactive role of industry 27 43 21 37 22 150
associations (C2) (18) (28.67) (14) (24.67) (14.67) (100)
13 Re-engineering of business 32 51 27 24 16 150
process (C3) (21.33) (34) (18) (16) (10.67) (100)
14 Readiness of concerned 22 39 19 46 24 150
government agencies (C4) (14.67) (26) (12.67) (30.67) (16) (100)
15 Insistence for e-commerce 47 60 7 21 15 150
mode by other partners of (31.33) (40) (4.67) (14) (10) (100)
value chain (viz. vendor,
supplier) within country (C5)
4. Technology and organizational facilitators (D)
16 Acceptance of electronic 47 59 20 15 9 150
transactions under law (DO (31.33) (39.33) (13.34) (10) (6) (100)
17 Increased growth of Internet 53 60 5 14 18 150
users (D2) (35.33) (40) (3.33) (9.33) (12) (100)
18 Improved overall business 57 69 11 9 4 150
process flow and save time (38) (46) (7.33) (6) (2.67) (100)
(D3)
19 Strategic advantages 39 53 19 21 18 150
including enhanced business (26) (35.33) (12.67) (14) (12) (100)
opportunity offered by
electronic commerce (D4)
20 Use of related technologies 40 59 13 21 17 150
viz.bar-coding article (26.67) (39.33) (8.67) (14) (11.33) (100)
numbering etc (DO
parameter Ai, whereas 38.67 per cent respondents supported them. 38 per cent were
strongly agreed with parameter A2. whereas 44 per cent respondents supported them.
27.33 per cent were strongly agreed with parameter A3, whereas 32.67 per cent
132
respondents supported them. 34 per cent were strongly agreed in case of parameter A4,
whereas 36 per cent supported them. 32 per cent were strongly agreed regarding
parameter A5, whereas 41.33 per cent supported them.
Very high 35.33 per cent respondents were strongly agreed with parameter
B, whereas 37.67 per cent supported them. 27.33 per cent respondents were strongly
agreed in case of parameter B2, whereas 41.33 per cent supported them. Very few 15.33
per cent were agreed in case of parameter B3 and 30.67 per cent supported them. 19.33
per cent respondents were disagreed in case of parameter B4, whereas 14.66 per cent were
strongly supported them. 26.67 per cent strongly support agreed with parameter B5 38
per cent supported them.
35.33 per cent respondents were strongly agreed with parameter Ci, 40 per cent
supported them. 18 per cent were strongly agreed with parameter C2. whereas 28.67 per
cent supported them. 16 per cent respondents were disagreed with parameter C3 and
10.67 per cent were strongly disagreed. Very few only 14.67 per cent respondents were
strongly agreed with parameter C4’ whereas 26 per cent supported them. 31.33 per cent
respondents were strongly agreed in case of parameter C5, whereas 40 per cent supported
them.
31.33 per cent respondents were strongly agreed with parameter D|, whereas only
39.33 per cent supported them. 35.33 per cent were strongly agreed in case of parameter
D2 whereas 40 per cent supported them. Very high 38 per cent respondents were strongly
agreed with the parameter D3. whereas 46 per cent support them. Only 26 per cent
respondents were strongly agreed with the parameter, D4, whereas 35.33 per cent
supported them. 26.67 per cent were strongly agreed with parameter D5, whereas 39.33
per cent supported them.
Problems in the introduction of e-commerce in organization
Question 2 of section V deals with the problems in the introduction of
e-commerce technology in organizations. The respondents from top management, middle
and lower management were selected and asked to respond their opinion (W* and W?)
regarding the statement. Their responses were collected and shown in table 5.5.2 (I).
Table 5.5.2(I): Problems in the introduction of e-commerce
Top Management Middle Lower Management Total
Management
Industry 1 2 3 4 1 2 3 4 1 2 3 4
Opinions
Yes (W|) 4 3 4 2 3 1 3 2 4 3 4 3 36
(31.58)
No(W2) 6 7 11 13 7 9 12 13 6 7 11 12 114
(68.42)
Total 10 10 15 15 10 10 15 15 10 10 15 15 150
Note: Figures in parenthesis indicate percentages; 1 represents MNCs; 2 represent Indian Large Scale, 3
represents Medium scale and 4 represent small Scale Industries.
Table indicates that 31.58 per cent respondents belong to category of W| and
highest 68.42 per cent respondents belong to W2 category.
133
Further the respondents, who were not agreed with the statement and chose (W2
option), were asked to rank the parameters/inhibitors factors from 1 to 15, according to
the degree of their importance. Their responses were collected and coded, and shown in
table 5.5.2 (II) and 5.5.2 (III).
Table 5.5.2(H):
------------------------- —------------------- Coding
*---------- of Parameters
------- -- -—~
Parameters/inhibitors factors/rank from 1 to 15' Coding
Lack of knowledge and poor understanding of e-commerce P.

Budgeting constrains viz. low investment in IT P2
High set up cost of e-commerce system Pa
Low level of PC/Internet penetration P4
Security and privacy concern P5
Long implementation time h
High cost of Internet usage P7
Poor legal regime for e-commerce Pg
Difficulty in keeping pace up with changing technology P9
Difficulty in shifting mindset in using e-commerce technology P.o
Wide gap between users and IT skills Pn
Overall poor IT infrastructure P«2
Not enough customers/suppliers have Internet access P.3
Difficulty in assessing tangible benefits accrued by e-commerce mode of transactions P14
Low level of readiness of major e-commerce/EDl P15
Table 5.5.2 (II) indicates the coding of various parameters of problems. Ta )le
5.5.2 (III) indicates the responses of respondents towards various parameters.
Tab e 5.5.2 (III ): Ranking of Inhibii ors Factors

Parameter
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total
-"^^Rank
P. 9 6 7 4 5 7 9 8 10 7 12 11 7 5 7 114
P2 5 7 4 6 8 3 11 9 11 4 14 10 9 4 9 114
P3 13 8 7 9 10 6 4 3 7 4 11 6 12 8 6 114
P4 4 6 5 3 12 8 10 11 8 12 7 4 12 5 7 114
Ps 8 6 3 5 7 10 13 12 5 6 8 13 7 5 6 114
p6 3 5 8 4 5 6 3 10 12 8 10 7 14 9 10 114
P7 6 7 9 11 7 4 7 4 8 10 6 9 11 8 7 114
p8 8 5 10 7 6 9 10 11 8 6 7 10 3 9 5 114
P9 14 8 10 9 10 12 10 9 6 6 4 4 5 4 114
P.O 10 11 8 9 6 7 11 5 2 8 9 6 7 7 8 114
p>. 4 6 8 12 8 9 10 4 6 9 7 13 6 8 4 114
P12 8 5 6 10 7 11 8 12 9 5 8 12 5 3 5 114
P.3 6 J 8 7 5 7 10 8 11 9 5 9 15 7 4 114
P.4 9 5 9 8 7 12 11 13
->
6 4 3 13 8 5 114
P.5 3 5
-■>
-> 2 7 4 7 5 10 8 13 12 13 14 8 114
Table 5.5.2 (III) indicates that parameter Pi was highly ranked by 9 respondents
and poorly ranked by 7 respondents. Parameter P2 was highly ranked by 5 and poorly
3 One is highest rank and 15 is lowest.
134
ranked by 9 respondents. Parameter P3 was highly ranked by 13 and poorly ranked by 6
respondents. Parameter P4 was highly ranked by 4 and poorly ranked by 7 respondents.
Parameter P5 was highly ranked by 8 and poorly ranked by 6 respondents. Parameter P6
highly ranked by 3 and poorly ranked by 10 respondents. Parameter P7 was highly
ranked by 6 and poorly ranked by 7 respondents. Parameter P8 was highly ranked by 8
and poorly ranked by 5 respondents. Parameter P9 was highly ranked by 14 and poorly
ranked by 4 respondents. Parameter Pio was highly ranked by 10 and poorly ranked by 8
respondents. Parameter Pn was highly ranked by 4 and poorly ranked by 4 respondents.
Parameter P12 highly ranked by 8 and poorly ranked by 5 respondents. Parameter P!3
was highly ranked by 6 and poorly ranked by 4 respondents. Parameter P14 was highly
ranked by 9 and poorly ranked by 5 respondents and parameter Pj5 was highly ranked by
3 respondents and poorly ranked by 8 respondents.
Table 5.5.2 (IV): Weighted average scores of Factors
Parameter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total W.
^Rank^ A.
S*
P> 135 84 91 48 55 70 81 64 70 42 60 44 21 10 7 882 7.73
P2 75 98 52 72 88 30 99 72 77 24 70 40 27 8 9 841 7.38
P, 195 112 91 108 110 60 36 24 49 24 55 24 36 16 6 946 8.24
P4 60 84 65 36 132 80 90 88 56 72 35 16 36 10 7 867 7.60
P5 120 84 39 60 77 100 117 96 35 36 40 52 21 10 6 893 7.83
Pb 45 70 104 48 55 60 27 80 84 48 50 28 42 18 10 769 6.74
P7 90 98 117 132 77 40 63 32 56 60 30 36 33 16 7 887 7.78
P8 120 70 130 84 66 90 90 88 56 36 35 40 9 18 5 937 8.21
Po 210 112 130 108 110 120 90 72 42 36 20 12 12 10 4 1088 9.54
P.o 150 154 104 108 66 70 99 40 14 48 45 24 21 14 8 965 8.46
P.i 60 84 104 144 88 90 90 32 42 54 35 52 18 16 4 913 8.08
P,2 120 70 78 120 77 110 72 96 63 30 40 48 15 6 5 854 8.33
P.3 90 42 104 84 55 70 90 64 77 54 25 36 45 14 4 967 7.49
Pn 135 70 117 96 77 120 99 104 21 36 20 12 39 12 5 963 8.44
P.5 45 70 39 24 77 40 63 40 70 48 65 48 39 28 8 591 5.18
Note; * Weightage Average Score
Table 5.5.2 (IV) indicates the weighted average scores of respondents towards
various parameters. Weighted to the responses has been given on the basis of rank. Those
who chose highest rank e.g 1 are given the highest weightage, by multiplying such
responses with 15, and those who chose the lowest rank are given poorest weightage
multiplying those responses by 1. The weightage average (W.A.) to all other factors has
been given in the same way.
Table reveals various weightage scores of parameters. Parameter Pi, has been
given 7.73 scores. P2 7.38 scores, P3 8.24 score, P4 7.60 score, Ps 7.83 score, Pe 6.74, P7
7.78, P8 8.21, P9 highest 9.54, P10 8.46, Pn 8.08, P,2 8.33, P,3 7.49, P,4 8.44 and P15 5.18.
Relationship between E-Commerce and Economic Development

Third question of section V deals in finding out the relationship between
e-commerce and economic development. Respondents from top management, middle
135
management and lower management were given the options (Ej and E2) and asked to
select the most appropriate option. Their responses were collected and shown in table
5.5.3 (I)
Table 5.5.3 (I): Relationship between e-commerce and economic development
Opinions MNCs Indian Medium Small Total
Large Scale Scale
Yes (E,) 18 17 28 25 88 (58.67)
12 13 17 20 62(41.33)
No (E2)
Total 30 30 45 45 150(100)

Table indicates that 58.67 per cent respondents belong to Ej category and rest
41.33 per cent belong to E2 category.
Further those respondents who answered in ‘yes’ (Ei) were asked to indicate the
degree of agree and disagree with each parameters (Pi. P2, P3, P4, P5, P6, P7. Ps, P9, P10, PI 1
and P12). The responses were to these parameters were gathered on the 5 point scale.
The responses of the respondents were recorded and shown in table 5.5.3 (II).
Table 5.5.3 (II): Relationship between e-commerce and economic development
5 4 3 2 1 Total
Parameters
Economic Growth -GDP 15 23 8 24 18 88
(Pi) (17.04) (26.14) (9.09) (27.27) (20.45) (100)
Development of Human Capital 13 19 15 24 17 88
(P2) (14.77) (21.60) (17.04) (27.27) (19.31) (100)
Better Occupational Structure 10 22 1 1 26 19 88
(P3) (11.37) (25) (12.5) 29.55) (21.59) (100)
Technological Development 17 29 10 24 8 88
(P4) (19.32) (32.95) (11.36) (27.27) (9.09) (100)
Ui ;
Wider Range of Market 19 7 17 12 88

C /i
(Ps) (21.59) (7.95) (19.32) (13.64) (100)

•
Higher Standard of Living 14 25 15 23 11 88

(P6) (15.91) (28.41) (17.05) (26.13) (12.5) (100)
Increase in Employment 21 39 7 13 8 88
Opportunities (P7) (23.86) (44.32) (7.95) (14.78) (9.09) (100)
Development of Economic 24 43 8 9 4 88
Infrastructure (P8) (27.27) (48.86) (9.09) (10.23) (4.54) (100)
Reducing the Role of 36 37 7 6 2 88
Intermediaries (P9) (40.91) (42.04) (7.95) (5.68) (2.72)
Promotion of Information Flow 16 32 13 18 9 88
and Market Transparency (P10) (18.18) (36.36) (14.78) (20.45) (10.22) (100)
Overall Improvement in 23 39 6 13 7 88
Economic Efficiency and (26.14) (44.32) (6.82) (14.77) (7.95) (100)
Productivity (P,[)
Export Opportunities 33 42 3 6 4 88
(P12) (37.5) (47.72) (3.41) (6.82) (4,55) (100)
136
parameter Pi and 26.14 per cent supported them. 14.77 per cent respondents were
strongly agreed with P2 parameter, whereas 21.60 per cent supported them. Lowest 11.37
per cent respondents were strongly agreed with parameter P3, whereas only 25 per cent
supported them. 29.55 per cent respondents were disagreed with this parameter and 21.59
per cent were strongly disagreed. 19.32 per cent were strongly agreed and 32.95 per cent
were agreed with parameter P4. 21.59 per cent were strongly agreed with parameter
Ps.and 37.5 per cent were agreed with this parameter. 15.91 per cent were strongly agreed
with parameter P6. whereas 28.41 per cent supported them. 23.86 per cent respondents
were strongly agreed with parameter P7, whereas very high 44.32 per cent support them.
27.27 per cent were strongly agreed with parameter Px. whereas 48.86 per cent supported
them. 40.91 per cent respondents were strongly agreed with P9 parameter, whereas 42.04
per cent supported them. 18.18 per cent respondents were strongly agreed with parameter
P10, whereas almost double i.e. (36.36 per cent) respondents supported them. 26.14 per
cent were strongly agreed with parameter Pu and very high 44.32 per cent supported
them. 14.77 per cent were agreed below the moderate level and very few 7.95 per cent
supported this parameter. Highest 37.5 per cent respondents were strongly agreed with
parameter P12. whereas highest 47.73 per cent supported them.
Availability of trained staff to handle e-commerce transactions
Fourth question of section V deals with the availability of trained staff to handle
e-commerce technology and transactions. The respondents from top management, middle
and lower management were asked to respond their opinion in this regard. Their
responses were recorded and shown in table 5.5.4 (I).
Table 5.5.4(I): Availability of trained staff to handle e-commerce transactions
Management
Industry^- 1 2 3 4 1 2 3 4 1 2 3 4
Opinions
Yes(W|) 4 5 8 8 5 6 8 7 6 7 9 11 84(56)
No (W2) 6 5 7 7 5 4 : 7 8 4 3 6 4 66(44)
Total 10 10 15 15 10 10 i 15 15 10 10 15 15 150
Note: Figures in parenthesis indicate percentage: I represents MNCs; 2 represent Indian Large Scale, 3
Table indicates that 56 per cent respondents belong to the opinion category
rest 44 per cent belong to the opinion category W2.
Further, the respondents belong to the category of W|, were asked to indicate the
most responsible factor behind the poor availability of trained staff to handle e-commerce
transactions.7 parameters (Ti. T2, T3, T4, Ts. T^, and T7) were given to them and asked to
select the most suitable according to them. Table 5.5.4 (III) shows coding of parameters.
Table 5.5.4 (II) indicates that coding of parameters and table 5.5.4 (III) indicates the
responses of the respondents towards these parameters.
Table 5.5.4 (II): Coding of Parameters
137
Coding
Parameters
High Cost of Training T,
Low Stability Ratio of Trained Staff t2
Problem of Keeping up Pace with the Changing Technology T3
Reluctance of Staff to Adopt Latest Technologies t4
Staff is Not Qualified Enough to Adopt and Learn New Technologies t5
Lack of Training in Special Software t6
Lack of Support of Top Management t7
Table 5.5.4 (III): Availability of trained staff to handle e-commerce transactions

Management
Industry_^- 1 2 3 4 1 2 3 4 1 2 3 4
Parameters
T, 1 1 2 2 1 2 2 1 1 1 2 4 20
(23.25)
t2 —
1 1 2 1 1 1 1 — 1 1 2 12
(13.95)
t3 — —
2 2 1 1 1 — —
1 2 1 11
(12.79)
t4 1 1 — 1 — 1 —
2 1 2 1 3 13
(15.11)
Ts 1 1 2 — 2 1 2 2 2 1 1 1 16
(18.60)
T6 1 1 —
1 — —
1 1 1 —
1 —
7(8.13)
t7 — 1 — — —
1 1 1 1 —
5 (5.81)
Total 4 5 8 8 5 6 8 7 6 7 9 11 84 (100)
Note:Figures in parenthesis indicate percentages,1 represents MNCs; 2 represent Indian Large Scale, 3
Table indicates that highest 23.25 per cent belong to the parameter T] 13.95 per
cent belong to T2 and 12.79 belong to T3 parameters. 15.11 per cent belong to T4
parameter, 18.60 per cent belong to the parameter T5> 8.13 per cent of the respondents
belong to parameter T6 the and minimum 5.81 per cent belong to parameter T7
Benefits of E-Commerce for Small Scale Industries
Question 5 of section V deals with the assumption that e-commerce is going to be
more beneficial to the small-scale industries over the other type of industries as the
technology size is neutral. Respondents from top management, middle management and
lower management were asked to give their opinion (W, and W2) in this regard. Their
responses were collected and shown in table 5.5.5 (I).
Table 5.5.5 (I): Benefits of E-Commerce for Small Scale Industries
Management
Industry 12 3 4 12 3 4 12 3 4
138
-^Opinions
Yes (W,) 8 5 8 6 4 5 6 7 6 4 6 4 69(46)
No (W2) 2 5 7 9 6 5 9 8 4 6 9 11 81(54)
Total 10 10 15 15 10 10 15 15 10 10 15 15 150
Table indicates that 46 per cent respondents belong to opinion category of W1?
and rest 56 per cent respondent belong to opinion W2 category
Further, those (respondents) went with the opinion category W), were asked to
indicate the degree of agree or disagree regarding various parameters (Bi, B2, B3. B4, Bs,
B6. B7, Bg, Bq and Bio). Their responses were collected and shown in table 5.5.5 (II).
Table 5.5.5 (II): Benefits of e-commerce enjoyed by Small-Scale Industries
Parameters6 Strongly Agreed Neither Disagreed Strongly Total
Agreed Agreed/Nor Agreed
disagreed
Low Investment (Bi) 10 13 12 21 13 69
(14.50) (18.84) (17.39) (30.43) (18.84) (100)
Making it Easier for the 29 25 7 5 3 69
Artisans to access B2C (42.02) (36.21) (10.14) (7.24) (4.34) (100)
World Market (B2)
Disintermediation (B3) 21 22 10 17 9 69
(30.43) (31.88) (14.92) (24.63) (13.04) (100)
High Customer Loyalty and 12 16 10 20 11 69
Retention (B4) (17.39) (23.18) (14.92) (28.98) (15.94) (100)
Improve the competitive 8 15 20 14 12 69
position and Image of Firm (11.59) (21.73) (28.98) (20.28) (17.39) (100)
(B5)
Competitive Advantage 12 19 21 7 10 69
through the Improved Flow (17.39) (27.53) (30.43) (10.14) (14.92) (100)
of Information (B6)
Reduced Working Capital 16 28 5 13 7 69
and Inventory Requirement (23.18) (40.57) (7.24) (18.84) (10.14) (100)
(B7)
Increase Turnover (Bg) 23 21 8 12 5 69
(33.33) (30.43) (11.59) (17.39) (7.24) (100)
Stay Ahead of Competitors 16 24 13 12 4 69
6 In this question, these parameters are adopted by reviewing the literature of the following studies: Cloete,
Eric and Courtney, Steven (2002), ‘‘Small Businesses' Acceptance and Adoption of E-Commerce in the
Western-Cape Province of South Africa", The Electronic Journal of Information Systems in Developing
Counties, Vol. 10, No. 4, pp 1-13. ; Akkeren, J. and Cavaye, A. (1999), "Factors Affecting the Adoption of
E-Commerce Technologies by Small Business in Austraila- An Empirical Study", accessed on
http://www.acs.org.au/act/events/iol999/akkem.html.; Poon„ S. and Swatman,P. (1999), "An Exploratory
Study of Small Business Internet Commerce Issues", Information and Management, Vol. 35, No.l, pp 9-
18.: Castelman, T. and Cavill, M. (2001), Voice of Experience: Developing Exports Capability through
Electronic Commerce in Australian SMEs, Proceedings of the 14lh Bled Electronic Commerce Conference,
accessed on: http://www.mis/deakin/edu.au/research/working_paper_200l/2001_02_castleman.pdf.
139
(Bo) (23.18) (34.78) (18.84) (17.39) (5.79) (100)
Can Obtain Better 16 19 10 14 10 69
Prediction Information and (23.18) (27.53) (14.92) (20.28) (14.92) (100)
Continuously Stable
Purchasing Orders from
Customers (B|0)
Table indicates that 14.50 per cent respondents were strongly agreed with B| parameter,
whereas 18.84 per cent respondents supported them. Highest 42.02 per cent respondents
were strongly agreed with B2 parameter, whereas 36.21 per cent supported them. 30.43
per cent respondents were strongly agreed with parameter B3, whereas 31.88 per cent
support them. 17.39 per cent respondents were strongly agreed with parameter B4,
whereas 23.18 per cent supported them. Very high 28.98 per cent respondents disagreed
with parameter B5 whereas 20.28 per cent supported them. 17.39 per cent respondents
were strongly agreed with B(, parameter whereas 27.53 per cent supported them. 23.18
per cent respondents were strongly agreed with parameter B7 whereas very high 40.57 per
cent supported them. 33.33 per cent respondents were strongly agreed with parameter Bg,
whereas 30.43 per cent support them. 23.18 per cent respondents were strongly agreed in
case of parameter B9, whereas 34.78 per cent support them. 23.18 per cent respondents
were strongly agreed with parameter Bio, whereas 27.53 per cent respondents supported
them.
Type of SSIs where benefits of e-commerce can be maximum enjoyed
Last question of section V deals with the type of small-scale industries where the
benefits of e-commerce can be maximum enjoyed. The responses are collected only from
the respondents from small-scale industries. The respondents were given the four options
(It. L. I3 and I4), and asked them to select the most appropriate. Their responses have been
Table 5.5.6: Types of Small Scale Industry to Utilize the Benefits of E-Commerce
Industry No of respondents
Artisan (f) 12 (26.67)
Farming (I2) 3 (6.67)
Manufacturing (like Textile, Wooden works etc.) (f) 23(51.11)
And Service (I4) 7(15.55)
Total 45(100)
Table indicates that 26.67 per cent respondents belong to industry category I|,
6.67 per cent respondents belong to I2, highest 51.11 per cent respondents belong to
industry I3 category and rest 15.55 per cent belong to I4 category
Section VI
Management strategies for e-commerce implementation
Question 1 of section VI belongs to different management strategies, which are
used in the organizations for the successful implementation of e-commerce. Respondents
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were given the 12 parameters of management strategies (Si. S2..S3, S4, S5, S6. S7, Ss, S9, S10,
Sn and S 12.) and asked them to identity the strategies used in their organizations. The
responses to these strategies were gathered on 5-point scale. The respondents were asked
to score 1, if‘strategy was rarely used’; score I, if the ‘strategy sometimes used’; score 3
if ‘strategy moderately used’; score 4 if ‘strategy used more than moderate level’ and
score 5 if ‘strategy used to large extent’. Their responses were collected and shown in
table 5.6.1.
Table 5.6.1: management s<Tategies or e-commerce implementation
Management Strategies 5 4 3 2 1 Total
Electronic Commerce Strategy is 22 51 17 38 22 150
Integrated with the International (14.67) (34) (11.33) (25.33) (14.67) (100)
Strategy (S,)
Investments for Electronic Commerce 27 59 12 28 24 150
is a Planned Activity (S2) (18) (39.33) (8) (18.67) (16) (100)
Large Investments are Made for the 33 62 13 25 17 150

E-Commerce Implementation (S3) (22) (41.33) (8.67) (16.67) (11.33) (100)
Electronic Commerce Implementation 37 65 19 19 10 150
is Determined by the Top (24.66) (43.33) (12.67) (12.67) (6.67) (100)
Management (S4)
is Determined by the Middle (16.67) (38) (14) (23.37) (8) (100)
Management (S5)
is Determined by the Buyers (S&) (11.33) (24) (18) (28) (18.66) (100)
Electronic Commerce implementation 34 47 19 29 21 150
is Determined by the Value Chain (22.67) (31.33) (12.67) (19.33) (4) (100)
Partners (S7)
is Determined by the Consultants (Sg) (24) (40) (14) (14) (8) (100)
E-commerce Investments are Made on 29 45 26 32 18 150
the Return on Investment Basis (Sg) (19.33) (30) (17.33) (21.34) (12) (100)
is Perceived to Increase the (26.67) (46) (11.33) (12) (4) (100)
Organization’s Competitive Edge (S|0)
Fall in Line/Business Compulsion 22 51 19 30 28 150
Philosophy Guides E-commerce (14.67) (34) (12.67) (20) (18.67) (100)
Implementation (Sm
Business Process Reengineering 19 48 23 32 28 150
(BPR) is Perceived as a Necessity for (12.67) (32) (15.33) (21.33) (18.67) (100)
the E-Commerce Implementation (S!2)
Table indicates that 14.67 per cent respondents were strongly agreed with the
parameter Si, whereas 34 per cent respondents supported them. 18 per cent respondents
were strongly agreed with the parameter S2 and 39.33 per cent respondents supported
them. 22 per cent respondents strongly agreed regarding parameter S3 and 11.33 per cent
respondents were strongly disagreed. 24.66 per cent respondents were strongly agreed
with S4 parameter, whereas 43.33 per cent supported them. 16.67 per cent respondents
141
were strongly agreed and only 8 per cent were strongly disagreed with parameter S5.
11.33 per cent were agreed and 28 per cent were disagreed regarding parameter S6.22.67
per cent respondents showed their strong acceptance and 4 per cent strong rejection
regarding parameter S7 24 per cent respondents were strongly agreed with parameter Sg
and 40 per cent supported them. 19.33 per cent respondents were strongly agreed in case
of parameter S9. whereas 30 per cent support them. 26.67 per cent respondents showed
their strong acceptance regarding parameter S10. 14.67 per cent respondents were strongly
agreed with parameter Sn, whereas 18.67 per cent were strongly disagreed with this
parameter. 12.67 per cent respondents were strongly agreed with parameter S^and 32 per
cent supported them.
Main factors (Internal) of strategic importance
Question 2 of section VI deals with internal factors, which are of strategic
importance for the successful implementation of e-commerce. The respondents were
asked to indicate the main factor of consideration while formulating internal e-commerce
strategy (Fi, F2, F3, F4, F5, F6< F7. Fg, F9 and F10). The respondents were asked to score 1, if
‘factor was rarely considered’; score 2, if the ‘factor sometimes considered’; score 3 if
‘factor moderately considered’; and score 4 if factor considered more than moderate
level’ and score 5 if ‘factor considered to large extent’. Their responses have been
collected and shown in table 5.6.2.
Table 5.6.2: Internal factors of strategic importance for success of e-commerce
Parameters 5 4 3 2 1 Total
Price of the Product or Service (F1) 37 40 25 28 20 150
(24.66) (26.67) (16.67) (18.67) (13.33) (100)
Customer Services (Pre and After 37 42 12 32 28 150
Sale) (F2) (24.67) (28) (7.33) (21.33) (18) (100)
Quality of Goods and Services (F3) 42 57 12 27 12 150
(28) (38) (8) (18) (8) (100)
Human resources (F4) 47 56 11 24 12 150
(31.33) (37.33) (7.34) (16) (8) ( 100 )
Promotion (F5) 13 29 47 37 24 150
(8.67) (19.33) (31.33) (24.67) (16) (100)
Information System (F6) 26 35 34 32 23 150

(17.33) (23.33) (22.67) (21.33) (15.34) (100)
Support of Top Management (F7) 39 51 17 29 14 150

(26) (34) (11.33) (19.33) (9.33) (100)
Sound Technological Infrastructure 35 50 22 30 13 150
(F8) (23.33) (33.33) (14.67) (20) (8.67) (100)
Security and Privacy of Payment and 52 65 13 12 8 150
Information (F9) (34.67) (43.33) (8.67) __ (8) (5.33) (100)
Effective distribution System (F10) 43 57 19 19 12 150
(28.67) (38) (12.67) (12.67) (8) (100)
Table indicates that 24.66 per cent of the respondents were strongly agreed with
Fi parameter, whereas 26.67 per cent supported them. In case of F2 parameter 24.67 per
cent respondents were strongly agreed and 31.33 per cent were strongly disagreed .28 per
cent respondents were strongly agreed in case of F3 parameter, whereas about 38 per cent
142
supported them. 37.33 percent respondents were strongly agreed in case of parameter F4
whereas only 31.33 per cent supported them. 8.67 per cent of the respondents were
strongly agreed regarding parameter F5 whereas only 19.33 per cent supported them.
17.33 per cent respondents were strongly agreed in case of parameter F6. whereas about
23.33 per cent respondents supported them. 26 per cent of the respondents were strongly
agreed regarding parameter F7. whereas 34 per cent supported them. 23.33 per cent of the
respondents were strongly agreed regarding parameter F&, whereas 33.33 per cent support
them. Very few 8 per cent respondents were disagreed in case of parameter Fy whereas
43.33 per cent were agreed. 28.67 per cent of the respondents were strongly agreed in
case of parameter F10, whereas 38 per cent supported them.
Impact of E-Commerce
Third question of section VI deals with, the impact of e-commerce on businesses,
customers, employees, society and economy as whole. The respondents from top
management/middle management and lower management were asked to choose the most
appropriate opinion. The responses to these parameters were gathered on a 5-point scale.
Their responses have been collected and shown in table 5.6.3 (I).
Table 5.6.3(I): Impact of E-Commerce

Management
Industry-""' 1 2 3 4 1 2 3 4 1 2 3 4
„—Opinions
Yes (O,) 7 8 8 9 5 6 7 8 6 7 9 91 11
(60.67)
No (O,) 3 2 7 6 5 4 8 7 4 3 6 4 59
(39.33)
Total 10 10 15 15 10 10 15 15 10 10 15 15 150
Note: Figures in parenthesis indicate percentage: I represents MNCs; 2 represents Indian Large Scale, 3
represents Medium scale and 4 represents small Scale Industries.
Table indicates that 60.67 per cent respondents were agreed with the statement of
problem and only 39.33 per cent respondents were disagreed with the statement and they
selected their answer as O2
Further the respondents who chose the option 0| were asked to indicate the
degree of agree and disagree with each rameter. Their responses were collected and
shown in table 5.6.3(11).
143
Table 5.6.3(11): Impact of E-Commerce on Dif erent Segment
Statements Strongly Agreed Neither Disagreed Strongly Total
Agreed Agreed/Nor Agreed
disagreed
E-commerce will prove to 37 40 7 4 3 91
be beneficial for the (7.69) (4.41) (3.41) (100)
(40.65) (43.95)
businesses (Si)
be beneficial for the (12.08) (7.69) (100)
(39.67) (36.26) (14.28)
customers (S2)
be beneficial for the (18.68) (100)
(8.79) (16.48) (41.76) (14.28)
employees (S3)

be beneficial for the society (12.08) (25.27) (15.38) (100)
(13.18) (34.06)
(S4)
be beneficial for the whole (25.27) (40.66) (100)
(12.08) (13.18) (8.79)
economy (S5)
Table indicates that 40.65 per cent respondents were strongly agreed with Si
statement, whereas 43.95 per cent supported them. 30.67 per cent respondents were
strongly agreed with statement S2, whereas 36.26 per cent respondents supported them.
Only 8.79 per cent respondents were strongly agreed regarding statement S3, whereas
18.68 per cent supported them. 41.76 per cent were disagreed and 14.28 per cent were
strongly disagreed with this statement. 12.08 per cent respondent were strongly agreed
with S4 statement and 15.38 per cent were strongly disagreed with the same statement.
25.27 per cent respondents were strongly agreed with the statement S5. whereas 40.66 per
cent supported their opinion.
Present status of e-commerce infrastructure
Second last question of section VI deals with the present status of e-commerce
infrastructure in India. The respondents were given four options (Ii. T. I3 and I4 ) and
asked to choose the most satisfactory according to them. Their responses were recorded
and shown in table 5.6.4.
Table 5.6.4: Present status of e-commerce infrastructure
Large Scale Scale
Highly Advanced (Pi) 5 6 9 8 28 (18.67)
Advanced (P2) 8 7 11 9 35 (23.33)
Average (P3) 9 1 1 15 17 52 (34.67)
Below Average (P4) 5 4 6 6 21 (14)
Very Poor (P5) 3 2 4 5 14(9.33)
Total 30 30 45 45 150
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Table indicates that 18.67 per cent respondents belong to parameter P|, 23.33 per
cent belong to P2 parameter. Highest 34.67 per cent belong to parameter P5. 14 per cent
belong to P4 parameter and only 9.33 per cent belong to parameter P5
Role of Indian Government in boosting e-commerce

Last question of section VI deals with the role of Indian government in boosting
e-commerce infrastructure. Four options (Gj, G2, G3 and G4) were given to the
respondents and asked to choose the most appropriate among them. Their responses were
Table 5.6.5: Role of Government in boosting E-Commerce

Large Scale Scale
Leading (GO 6 7 10 8 31 (20.67)
Active and Supportive (G2) 10 11 16 15 52 (34.67)
Cooperate with Market (G3) 8 7 11 12 38 (25.33)
Passive (G4) 6 5 8 10 29 (19.33)
Total 30 30 45 45 150(100)
Table indicates that 20.67 per cent respondents belong to Gi parameter highest
34.67 per cent belong to parameter G2, 25.33 per cent belong to parameter G3 and lowest
19.33 per cent respondents belong to parameter G4.
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Part-II
_____________Survey of Online Customers__________
India is not untouched by the wave of online shopping. B2C e-commerce has
registered very rapid growth in India and expected to offer huge opportunities in the B2C
segment of e-commerce. To study the perception of Indian online customers towards
various parameters (services offered by the dot com companies) a survey of 200 online
customers was administered. Part II of Chapter 5 deals with the survey of online
customers. This part carries 3 (Section VII to IX) sections. Responses towards various
parameters were gathered and shown, and discussed in the various tables.
One of the major features of the Internet revolution is its potential to make the whole
economic system, nationally and internationally, more competitive by bringing markets
closer to the model of perfect competition, characterized by large number of buyers and
sellers bidding in a market with perfect information (Litin & Rivlin, 2000)7. Lower
search costs, (Bakos 2000)8, transaction costs and information costs (Schmitz and Latzer
2003)9 in digital markets make it easier for buyers to find low cost sellers. As a result of
these, more and more customers are shifting to Internet for buying goods and services.
According to a recently conducted AC Nielsen Study, more than 627 million people
shopped online in 2005l0. Out of them, about 212 million online shoppers mention books
among the last three items they purchased online. In addition:
• Over 135 million people have purchased DVDs and / or video games.
• Close to 135 million made plane reservations
• Over 128 million purchased articles of clothing / accessories / shoes.
• Over 106 million purchased electronic devices (including cameras, etc.)
• Close to 98 million bought computer hardware
• And over 86 million consumers made hotel and tour bookings
For most of these online purchases, credit cards (59 per cent) or bank transfer (23
per cent) was used to make the payment. In Europe, however, cash on delivery (CoD) is
the 2nd most used payments method, followed by credit card. Cash on delivery is also a
popular payment method used in some Asia Pacific markets, ranking second to credit
card in India (29 per cent) and Japan (25 per cent).
India is not untouched by the wave of online shopping. It has been about a
decade since business-to-customer, e-commerce first evolved in India. Today Indian
customers are becoming more and more comfortable with e-commerce as shown by the
Litan, R.E., and Rivlin, A.M. (2001), "Projecting the Economic Impact of the Internet’’, The American
Economic Review - Papers and Proceedings, Vol. 91, NO. 2, pp. 313-7.
8 Bakos, Y. (2001), "The Emerging Landscape for Retail E-Commerce", The Journal of Economic
Perspectives, Vol. 15, No. 1, pp. 69-80.
9 Schmitz, W. Stefan and Latzer, Michael (2003J, "Competition in B2C e-commerce: An analytical issues
and empirical evidence", Research Unit for Institutional Change and European Integration,, Austrian
Academy of Science, Postagsse 7/1/2, A-1010.
10 The twice-yearly global AC Nielsen Global Online Consumer Confidence Study polled over 21,100
respondents in 38 markets from Europe, Asia Pacific, North America, Latin America, South Africa. Not
surprisingly. Europe and North America display the highest incidence of online shoppers, with Germany,
Austria, and UK topping the list, with at least 95% of Internet users having purchased online. In Asia
Pacific, South Korea and Taiwan rank highest.
146
IOA Power Shopper Report, which puts the e-commerce (B2C) market at Rs. 430 crores
in 2004-05, This is estimated to increase to Rs, 2300 crore by 2006-07.
In the present study, an attempt has been made by the researcher to find out
online shopping experiences of Indian customers (in the forms of items purchased) and to
find out the most preferred method of payment when shopping online. But the main
objective of the study is to find out 'whether Indian customers are satisfied with online
shopping or not’ and to study the level of their satisfaction. For this purpose a
comprehensive questionnaire (appendix 2) was prepared. The data have been collected
from a sample of 200 respondents from Haryana, Delhi, Noida.
Section VII
Question I, relates to general information about sex, age and education of
respondents. The distributions of respondents by the above attributes have been given in
table 5.7.1 to 5.7.4.
Area wise and sex wise distribution of respondents
The first classification of respondents is based on their residential status (area
wise). Area wise distribution of respondents is depicted in table 1.1, which reveals that
25% of respondents are from Haryana. 50 per cent from Delhi, 25 per cent from Noida.
Table 5.7,1: Area wise distribution of respondents

Areas
No. of respondents
Haryana 50(25)
Delhi 100(50)
Noida 50 (25)
Total 200 (100)
Note: Figures in parenthesis indicate percentages.
Table 5.7.2: Sex wise distribution of respondents

Sex
No. of respondents
Male (S|) 109(54.5)
Female (S2) 91 (45.5)
Total 200 (100)
Note: Figures in parenthesis indicate percentage.
Sex wise distribution shown in table 5.7.2 indicates that 54.5 per cent of
respondents belong to male category (Si) and 45.5 per cent belong to the female category
(S2).
Age wise distribution of respondents
The age wise distribution of respondents made on the basis of 5 age groups, viz.,
under 21 years (Ai), 21 to 29 years (A2), 30 to 39 years (A3), 40 to 49 years (A4) and
above 50 years (A5). Age wise distribution of respondents shown in table 5.7.3
147
Table 5.7.3: Age wise distribution of respondents
Age group
No. of respondents
Under 21 (AT 54(27)
21 to 29 years (A2) 59 (29.5)
30 to 39 years (A3) 46(23)
40 to 49 years (A4) 24(12)
Above 50 years (A5) 17(8.5)
Total 200(100)
This table reveals that 27 percent respondents belong to the age group Ai, highest
29.5 percent belong to age group A2, 23 percent belong to age group A3, 12 percent
belong to age group A4 and the remaining 8.5 percent belongs to age group A5.
Educational wise distribution of respondents

The educational qualifications have been classified into five categories, viz.,
those did not complete secondary school (E(), completed secondary school (E2),
completed trade training (E3), completed under graduation/equivalent (E4) and completed
postgraduate (E5). Table 5.7.4 gives the education will distribution of respondents.
Table 5.7.4: Education wise distribution of respondents

Education categories
No. of respondents
Did not completed secondary school (E|) 10(2)
Completed secondary school (E2) 34(17)
Completed trade training (E3) 40 (20)
Completed under graduation equivalent (E4) 50(25)
Completed post graduate (E5) 66 (33)
Total 200(100)
The table shows that only 2 percent respondents belong to Ei category, whereas
17 percent respondents are from E2 category, 20 percent from E3 category, 25 percent
from E4 category and highest 33 percent respondents belong to E5 category.
Section VIII
Items purchase over net by Indian customers
What people buy varies widely by market and individual factors. International
book sellers would want to make sure that their websites accommodate Korean and
Chinese languages as books top the list of items purchased by the Chinese (56 percent)
and South Koreans (50 percent). In Europe. Airline tickets/reservations are mostly
purchased online in markets like Ireland (58%), Norway (45%) and Finland (31%). In
148
UK, Videos/DVDs/Games generate the biggest online market (34%), followed by books
(30%), cameras are also favorites online purchase items similar to books (31%).
To study the most preferred items of purchase on Internet among the
Indian customers, question number 2 was inserted. The respondents were asked to select
the most preferred items to purchase on Internet out of 15 optional items. The responses
of the respondents were recorded and shown in table 5.8.1
Table 5.8.1: Items purchased over the Internet

Items
No. of respondents
Book (ft) 13 (6.5)
Videos/DVDs/Games (I2) 19(9.5)
Airline/Railway ticket reservation (E) 31 (15.5)
Clothing/accessories/shoes (I4) 22(11)
Music (I5) 20(10)
Online subscription of magazines, journals (I6) 21 (10.5)
Electronic equipments (I7) 19(9.5)
Computer hardware (I8) 11 (5.5)
Computer software (I9) 12(6)
Event tickets (I]0) 6(3)
Cosmetics/nutrition suppliers (In) 8(4)
Groceries (I)2) 2(1)
Sporting goods (U) 4(2)
Toys/dolls (Iu) 5 (2.5)
Automobiles (I|5) 6(3)
Other items (Ii6) 1 (-5)
Total 200 (100)
Table 5.8.1 depicts that 6.5 percent respondents belong to Ii category, 9.5 percent
belongs to U category, highest 15.5 percent belong to I3 category, whereas 11 percent of
the respondents belongs to I4 category, 10 percent respondents are of I5 category, 10.5
percent are of 16 category, 9.5 percent are of I7 category, 5.5 percent are of Is category, 6
percent are of I9 category, 3 percent are of I10 category, 4 percent are of In category, 1
percent are of I12 category, 2 percent are of I13 category, 2.5 percent are of I14 category, 3
percent are of I15 category and only .5 percent of respondents belongs to the lie category
of items.
Modes of payment by Indian customers

For most of these online purchases, credit card is the most popular mode of
payment. But again, it varies widely from market to market. For an example cash-on-
delivery is most popular payment method used in some Asia Pacific markets. Question
number 3 of questionnaire related to the most preferred mode of payment by customers to
make online shopping. Respondents were asked to select the most preferred mode of
payment over Internet out of 8 options. The responses of the respondents recorded and
149
Table 5.8.2: Payment method used
Payment method
No. of respondents
Credit card P| 70(35)
Debit card (Smart Card)P2 53 (26.5)
Cash on delivery P3 47(23.5)
Bank transfer P4 18(9)
Money transfer P? 10(5)
Postal transfer P6 2(1)
Prepaid card P7 0(0)
Payment through convenience store 0(0)
Ps
Total 200 (100)
Table 5.8.2 reveals that 35 percent respondents belong to Pi category of payment

methods, whereas 26.5 percent respondents belong to P2 category, 23.5 percent are of P3
category, 9 percent are of P4 category, 5 percent are of P5 category, and only 1 percent
belong to Pr, category. Respondents did not select the payment category option P7 and Pg.
Section IX
Customers’ satisfaction towards services of dot com companies
Internet is changing the way customer shop and buys goods and services, and has
rapidly evolved into a global phenomenon. Many companies have started using- the
Internet with the aim of cutting marketing costs, thereby reducing the prices of their
products and services in order to stay ahead in highly competitive markets. Companies
also use the Internet to convey, communicate and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with the customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the
product from a particular store.
Consumer online purchase decisions are mainly concentrated on identifying the
factors, which affects the willingness of customers to engage in Internet shopping. In the
domain of consumer behavior research, there are general models of buying behaviors that
depict the process which consumers use in making a purchase decision. These models
(Schiffman et al, 200111 and Peterson et al, 199712) are important to the marketers as they
have the ability to explain and predict the consumer purchase behaviour.
Consumers’ attitude towards online shopping is a prominent factors affecting
actual buying behaviour. Jarvenpaa and Todd (1997)*1 proposed a model of attitudes and
shopping intention towards Internet shopping in general. The model includes the several
indicators, belonging to four major categories: the value of product, the shopping
11 Schiffman, L.; Bedneil, D.; Cowley, E.’ O’Cass, A.: Watson, J. and Kanuk, L. (2000), Consumer
Behavior. Australia: Prentic Hall.
12 Peterson, R.A.; Balasubramanian, S. and Bronnenberg, B.J. (1997), "Exploring the Implications of
Internet for Consumer Marketing ”, Journal of Academy of Marketing Science, Vol. 25, No. 4, pp 329-346.
1 ’ Jarvenpaa, S.L. and Todd, P.A. (1997), "Consumer Reaction s to Electronic Shopping on the World Wide
Web", International Journal of Electronic Commerce, Vol. 1. No.2, pp 59-88.
150
experience, the quality of service offered by the website and the risk perception of the
Internet retail shopping. In the research conducted by Vellido et cil (2001), nine factors14
associated with users’ perception of the online shopping were extracted.
In the present study an attempt has made to study the satisfaction level of online
customers regarding the services provided by the dot com companies. Question no 4 of
the questionnaire deals with the satisfactions of customers towards the services provided
by the dot com companies. Their responses were recorded and shown in the Table 5.9.1
(I)
Table 5.9.1 (I): Customers Satisfaction towards the Services of DotCom Companies
Responses Delhi Nodia Haryana Total
Yes (R|) 42 17 22 81 (40.5)
No (R2) 58 33 28 119(59.5)
Total 100 50 50 200 (100)
Table 5.9.1 (I) reveals that 40.5 per cent respondents belong to Ri and remaining
59.5 per cent belong to the response category R2.
Further, to study the level of satisfaction regarding various factors (services
provided by the dot com companies to their customers), a five point Likert Scale based
question was incorporated. The respondents were asked to indicate the level of agree and
disagree regarding various parameters. The responses of the respondents were recorded
and shown in table 5.9.1 (II)
Table 5.9.1 (II): Perceived factors affecting the online purchase by online buyers
Factors Strongly Agree Neither Disagree Strongly Total
Agree Agree/Nor Disagree
Disagree
The dot com companies 97 78 9 14 2 200
provides in deapth (48.5) (39) (4.5) (7) (1) (100)
information of product
and services they offered
(F.)
It is quick and easy to 42 99 38 17 4 200
complete a transaction at (21) (49.5) (19) (8.5) (2) (100)
website of theses
companies (F2)
These sites does not 53 89 29 20 9 200

waste my time (F3) (26.5) (44.5) (14.5) 00) (4.5) (100)
The sites has competitive 57 79 39 16 9 200
prices (F4) (28.5) (39.5) (19.5) (8) (4.5) (100)
14 Among those factors the risk perception of users was demonstrated to be the main discriminator between
people buying online and people not buying online. Other discriminating factors were: control over and
convenience of, the customer process, affordability of merchandise, customer service and ease of use of
the shopping site.
151
The level of 58 80 38 15 9 200
personalization of these (29) (40) (19) (7.5) (4.5) (100)
sites is about right, not
too much or too little (F5)
The website understand 59 88 34 11 8 200
my needs (F6) (29.5) (44) (17) (5.5) (4) (100)
You feel comfortable in 68 72 34 18 8 200

surfing (F7) (34) (36) (17) (9) ____(4)____ (100)
The product that came 49 85 34 18 14 200
was represented (24.5) (42.5) (17) (9) (7) (100)
accurately by the
companies (F8)
You get what you ordered 69 69 36 16 9 200
from the website (F9) (34.5) (34.5) (18) (8) (4.5) (100)
The product is delivered 63 70 38 19 10 200

by the time promised by (31.5) (35) (19) (9.5) (5) (100)
the company (Fjo)
The company, is willing 69 79 28 14 10 200

and ready to respond to (34.5) (39.5) (14) (7) (5) (100)
customer needs (Fn)
When you have problem, 42 94 39 18 7 200
these companies shows a (21) (47) (19.5) (9) (3.5) (100)
sincere interest in solving
it (Fl2)
Enquiries are answered 59 80 38 18 5
promptly (F,,) (29.5) (40) (19) (9) (2.5) 200
(100)
You feel that your 48 81 44 19 8 200
privacy is protected at the (24) (40.5) (22) (9.5) (4) (100)
sites of these companies
(F, 4)
You feel safe in 49 90 28 19 14 200
transactions with the (24.5) (45) (14) (9.5) (7) (100)
website of these
companies (F|5)
The websites has 39 88 40 14 19 200
adequate security features (19.5) (44) (20) (7) (9.5) (100)
(F,6)
Table reveals that 48.5 per cent respondents were strongly agreed with the
parameter Fi. whereas 39 per cent supported them. 21 per cent respondents were strongly
agreed in case of parameter F2. whereas highest 49.5 per cent supported them. 26.5 per
cent respondents were strongly agreed with parameter F3, whereas very high 44.5 per cent
supported them. 28.5 per cent respondents were strongly agreed with parameter F^
152
whereas 39.5 per cent support them. 29 per cent respondents were strongly agreed with
the parameter F5, whereas 40 per cent respondents supported them.
29.5 per cent of respondents strongly agreed with the parameter F6 whereas 44 per
cent supported them. 34 per cent of the respondents were strongly agreed with parameter
F7 whereas 36 per cent supported them. 24.5 per cent respondents were strongly agreed
with parameter Fg whereas 42.5 per cent of the respondents supported them. 4.5 per cent
of the respondents were strongly disagreed with the parameter F9 whereas only 8 per cent
supported them. 31.5 per cent respondents were strongly agreed with the parameter Fjo
whereas 35 per cent supported them.
34.5 per cent of the respondents were agreed with the parameter F11 whereas 39.5
per cent supported them. 21 per cent were also strongly agreed with parameter F12
whereas 47 per cent supported them. 29.5 per cent were agreed with parameter F13
whereas 40 per cent supported them. 4 per cent respondents were strongly disagreed with
parameter F14 whereas 9.5 per cent supported them. 24.5 per cent of the respondents were
strongly agreed weigh parameter F15 whereas 45 per cent supported them. Very few 19.5
per cent respondents were strongly agreed with parameter Fig whereas 44 per cent
supported them.
153

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“In theory, there is no difference 6etween theory andpractice, hut

in practice there is a great deaC of difference”

Thus, total 50 manufacturing, trading, and services industries with the

Table 5.1.2: Sample of Respondents rom Organizations

Year of Introduction/initiation of e-commerce

To provide meaningful results, these responses were classified into three

Time taken to launch e-commerce initiative

Nature of e-commerce initiative

Table 5.2.3: Nature of E-Commerce initiative

Present level of using e-commerce in comparison to the year of introduction

Difficulties in planning of e-commerce initiative

Table 5.3.1: Level of participation in e-commerce

Business Applications of E-Commerce

Table 5.3.2: Business applications of e-commerce

Ranges of E-Commerce transactions

Key reasons behind the adoption of e-commerce

Table 5.3.5: E-commerce anc quality of work

Table indicates that majority of the respondents showed their acceptance

4 More efficient supply chain 51 54 19 15 11 150

Lack of knowledge and poor understanding of e-commerce P.

Tab e 5.5.2 (III ): Ranking of Inhibii ors Factors

3 One is highest rank and 15 is lowest.

Table 5.5.2 (IV): Weighted average scores of Factors

Relationship between E-Commerce and Economic Development

Note: Figures in parenthesis indicate percentage

Wider Range of Market 19 7 17 12 88

(Ps) (21.59) (7.95) (19.32) (13.64) (100)

Higher Standard of Living 14 25 15 23 11 88

Table 5.5.4 (III): Availability of trained staff to handle e-commerce transactions

Large Investments are Made for the 33 62 13 25 17 150

Information System (F6) 26 35 34 32 23 150

Support of Top Management (F7) 39 51 17 29 14 150

Table 5.6.3(I): Impact of E-Commerce

E-commerce will prove to 11 23 12 31 14 91

Role of Indian Government in boosting e-commerce

Table 5.6.5: Role of Government in boosting E-Commerce

Table 5.7,1: Area wise distribution of respondents

Table 5.7.2: Sex wise distribution of respondents

Educational wise distribution of respondents

Table 5.7.4: Education wise distribution of respondents

Table 5.8.1: Items purchased over the Internet

Modes of payment by Indian customers

Table 5.8.2 reveals that 35 percent respondents belong to Pi category of payment

These sites does not 53 89 29 20 9 200

You feel comfortable in 68 72 34 18 8 200

The product is delivered 63 70 38 19 10 200

The company, is willing 69 79 28 14 10 200

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