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Chapter 1

INTRODUCTION TO THE STUDY


The proliferation of e-commerce platforms has revolutionized consumer behavior,

offering unprecedented convenience and access to a wide array of products. Among these

platforms, Amazon has emerged as a dominant force, providing customers with a diverse

selection of products, including books, at their fingertips. As the traditional retail

landscape evolves in response to digital transformation, it becomes imperative to

investigate the factors that influence online buying behavior, particularly in the context of

purchasing books on Amazon.

Several researchers have explored the intricate dimensions of online shopping behavior,

shedding light on critical determinants that shape consumers' choices.

(Nambisan&Alhabash, 2018) examined consumers' online shopping preferences in the

context of mass customization, revealing insights into how customers navigate choices in

a digitally tailored environment. (Chiu, 2005) investigated gender differences in computer

game playing among high school students, highlighting the role of gender in shaping

online activities.

In the realm of e-commerce, user experience and interface design play pivotal roles.

(Dholakia, 2000) proposed a theoretical framework emphasizing interactivity and its

impact on revisits to websites, underscoring the importance of user engagement.

(Forsythe, 2006) developed a scale to assess the perceived benefits and risks of online

shopping, contributing to the understanding of consumer perceptions in digital

transactions. Trust emerges as a cornerstone in online interactions, with (Gefen, 2003)

presenting an integrated model that incorporates trust and the Technology Acceptance

Model (TAM) in the context of online shopping.


Contributions of the Study:

This research study makes significant contributions by delving into the factors

influencing online buying behavior, specifically regarding books on Amazon:

1. Enhanced Understanding of Consumer Behavior : Drawing from the work of (Chiu,

2005) and (Forsythe, 2006), this study aims to deepen our understanding of how

gender and perceived benefits and risks impact customers' choices when purchasing

books online.

2. User Interface and Experience : The insights offered by (Dholakia, 2000) and (Gefen,

2003) inform the exploration of how the user interface of Amazon influences book

purchasing decisions, adding a unique angle to the understanding of online book

shopping.

3. Pricing and Promotions : The role of pricing strategies and promotional offers, as

highlighted by (Nambisan&Alhabash, 2018), forms a crucial aspect of this study's

investigation into the decision-making process of customers when buying books

online.

4. Trust and Satisfaction : Building on the research of (Wang, 2005) and (Li, 2002) and

(Zhang, 2005), this study seeks to explore the role of trust in the overall online book

shopping experience, examining its impact on customer satisfaction.


To accomplish these objectives, a questionnaire has been designed, incorporating

elements from prior research as well as addressing the specific context of online book

buying behavior on Amazon. The questionnaire covers diverse aspects including the

influence of pricing, promotions, user interface, and trust, while also considering

demographic variables such as gender, age, occupation, and income.

The responses collected through the questionnaire will be analyzed using appropriate

statistical methods, enabling a comprehensive understanding of the factors that influence

online book purchasing behavior. The study will draw parallels and distinctions with the

findings of the aforementioned researchers, contributing to the evolving body of

knowledge in the field of e-commerce and consumer behavior.

By bridging the insights from prior research with the unique context of online book

shopping on Amazon, this study endeavors to offer valuable contributions to both

academic scholarship and practical implications for e-commerce platforms and businesses

in the digital book retail sector.


Chapter 2

INDUSTRY PROFILE
The Evolution of Amazon and E-Commerce Dynamics

In recent decades, the advent of the internet has reshaped the landscape of retail, giving rise

to a dynamic and rapidly expanding e-commerce sector. Among the prominent players in this

transformative journey, Amazon has emerged as a trailblazer, fundamentally altering how

consumers engage with products and services. Amazon's ascent to becoming one of the

world's largest and most influential e-commerce platforms has been fueled by a combination

of strategic innovation, customer-centricity, and technological prowess.

As (Nambisan&Alhabash, 2018) highlight in their exploration of online shopping

preferences, the concept of mass customization has become a hallmark of e-commerce

platforms. Amazon, with its vast product offerings ranging from books to electronics,

capitalizes on this principle by tailoring recommendations and offerings to individual

customers. This approach resonates with contemporary consumer expectations, where

personalization is a driving force behind purchasing decisions.

The influence of gender on online activities, as examined by (Chiu, 2005), dovetails into

Amazon's inclusive business model. By catering to diverse demographics and preferences,

Amazon has fostered a global community of shoppers, transcending geographical and cultural

boundaries.

Theoretical frameworks, such as the one proposed by (Dholakia, 2000), emphasize

interactivity as a key element in online platforms. Amazon's user-friendly interface, intuitive

navigation, and personalized suggestions align with the principles of interactivity, facilitating

seamless browsing and purchasing experiences for its users.


Trust forms a cornerstone of online interactions, a notion underscored by (Gefen, 2003) in

their integrated model. Amazon's commitment to security, transparency, and customer

reviews has cultivated a sense of trust among its vast customer base, influencing purchasing

decisions and fostering long-term relationships.

The e-commerce acceptance model discussed by (Ha, 2009) is particularly relevant in the

context of Amazon's continuous efforts to enhance customer experience. The convenience of

shopping, extensive product availability, and efficient delivery systems have contributed to

Amazon's widespread acceptance as a go-to platform for a diverse array of consumer needs.

(Huang, 2003) delves into the role of interactivity in enhancing customer experience and

satisfaction. Amazon's features, such as one-click purchasing, real-time tracking, and

customer support, align with these findings, underpinning the platform's commitment to

elevating the customer journey.

A noteworthy aspect of Amazon's impact is its role in transforming traditional retail patterns,

as explored by (Moon, 2001). The convenience of online shopping, coupled with Amazon's

extensive reach, has significantly influenced consumer behavior, altering how people

purchase products, including books.


As (Sorce, 2005) examine age differences in online buying behavior, Amazon's appeal spans

generations, offering a user experience that caters to both digital natives and those adapting to

the online realm.

(Wang, 2005) shed light on the vital concept of online trust. Amazon's commitment to

customer satisfaction, reliable delivery, and hassle-free returns bolsters the trust customers

place in the platform, fostering repeat business and brand loyalty.

Finally, (Zhang, 2005) provide insights into the consumer perspective of e-commerce

adoption. Amazon's prominence exemplifies how an e-commerce platform can align with

consumer needs and preferences, ultimately driving widespread adoption and redefining

traditional retail paradigms.

In the context of this dynamic and transformative industry background, this study seeks to

contribute to the evolving understanding of online buying behavior, focusing on the specific

context of purchasing books on Amazon. By integrating insights from these seminal works

into the exploration of factors influencing online book buying behavior, this research aims to

uncover valuable insights that contribute to both academic scholarship and practical business

strategies.
Chapter 3

LITERATURE REVIEW
In the rapidly evolving landscape of e-commerce, Amazon has emerged as a pivotal player,

offering a vast array of products to a global customer base. As consumers increasingly turn to

online platforms for their shopping needs, understanding the factors that shape their buying

behavior becomes essential. This literature review explores existing research related to the

variables of price, promotion, discount offers, and user interface in the context of online

buying behavior, specifically on Amazon.

Price sensitivity has long been acknowledged as a significant determinant of consumer

behavior in both offline and online contexts. (Nambisan&Alhabash, 2018) delve into

consumers' online shopping preferences, shedding light on the importance of tailored

customization. While not directly addressing price, this study's findings highlight the intricate

relationship between consumer preferences and product attributes. Additionally, (Chiu, 2005)

demonstrate gender differences in online activities, indirectly suggesting potential variations

in price sensitivity across genders.

The role of promotions and discounts in influencing online purchasing decisions has been a

subject of considerable scholarly inquiry. (Forsythe, 2006) contribute to this domain by

developing a scale to measure the perceived benefits and risks of online shopping, a construct

closely intertwined with promotional strategies. The work of (Ha, 2009) in the technology

acceptance model (TAM) context further underscores the influence of perceived usefulness

and ease of use, which can be linked to the allure of promotional offers.
A seamless user interface plays a crucial role in enhancing customer experience and

satisfaction. (Dholakia, 2000) introduce the concept of interactivity and its impact on website

revisits, which can be translated to the context of Amazon's user interface design. (Dholakia,

2000) provides insights into the relationship between interactivity, customer experience, and

repurchase intentions, offering valuable implications for the role of user interface in online

shopping.

As consumers navigate the dynamic digital marketplace, understanding how these factors

intersect and influence their decisions is essential for both academic inquiry and practical

implications for e-commerce platforms. This research seeks to deepen our understanding of

the online book shopping experience, offering insights that can shape strategies for enhancing

customer satisfaction and engagement on Amazon.

By synthesizing the contributions of various researchers, this literature review sets the stage

for the subsequent analysis of the questionnaire responses and the investigation into the

factors influencing online buying behavior of customers towards books on Amazon.

Major Literature Reviews are as follows: -

S.No. Factors Authors Names and References

(Nambisan&Alhabash, 2018)
1 Price
(Chiu, 2005)

(Forsythe, 2006)
2 Discounts
(Ha, 2009)

3 User Interface (Dholakia, 2000)


Chapter 4

RESEARCH METHODOLOGY
Research methodology refers to the systematic and structured approach used to conduct a

research study or investigation. It is a blueprint that outlines the steps, techniques, and

procedures employed to collect, analyze, and interpret data in a scientific manner. The

research methodology serves as a guide for researchers to ensure the study is rigorous, valid,

and reliable, leading to meaningful and credible results.

The research methodology is crucial as it provides structure and clarity to the research

process, ensuring that the study is well-organized and conducted with integrity. A sound

research methodology enhances the reliability and validity of the findings, enabling other

researchers and stakeholders to assess and build upon the study's outcomes.

A. Research Objective: -

Research objectives are specific, measurable, and attainable goals that outline what a

research study aims to achieve. These objectives serve as the foundation for the

research and guide the entire research process. They help focus the study, define its

scope, and provide a clear direction for data collection, analysis, and interpretation.

Research objectives are typically derived from the research problem or question and

act as a roadmap to answer the research question effectively.

The objectives of the study are as follows: -

To investigate and analyze the factors influencing online buying behaviour of

customers towards books on Amazon, with a specific focus on the variables of price,

promotion, discount offers, and user interface.

1. To assess the extent to which the price of books influences customers' decision

to buy books online on Amazon.


2. To determine if customers are more likely to make online book purchases

when prices are competitive and reasonable.

3. To investigate the influence of promotional offers and discounts on customers'

choices between Amazon and other platforms for book purchases.

4. To analyze the role of promotional offers in motivating customers to make

online book purchases.

5. To understand how the user interface of Amazon affects customers' ability to

find and purchase books online.

6. To explore the impact of user interface design on enhancing the overall online

book shopping experience.

7. To examine the extent to which price discounts and promotions influence

customers' decisions to buy books online.

8. To determine if limited-time offers or flash sales encourage customers to make

book purchases on Amazon.

By addressing these specific objectives, the research aims to provide a comprehensive

understanding of the factors that drive customers' online buying behaviour towards

books on Amazon, contributing to both practical insights for businesses and academic

knowledge in the field.

B. Research Plan: -

A research plan is a detailed outline or blueprint that lays out the systematic approach

and specific steps to be followed during a research study. It acts as a roadmap,

guiding researchers through the entire research process, from the initial planning

stage to the final reporting of results. A well-crafted research plan ensures that the

research study is conducted systematically and efficiently, adhering to a structured

framework.
It helps researchers stay organized, focused, and accountable throughout the research

process, leading to valid and meaningful results. Additionally, a clear research plan

enables other researchers to replicate the study and contributes to the transparency and

credibility of the research process.

Research Design Descriptive

Research Method Used Survey

Research Technique Used Questionnaire

Data Collection Durg – Bhilai

Sampling Plan Convenience

Sample Size 47

C. Demographics Characteristics: -

Demographic characteristics refer to specific attributes and traits of individuals or

populations that are often used to categorize and analyze different groups. These

characteristics provide valuable insights into the composition, distribution, and characteristics

of a given population and are commonly used in various research studies, marketing

strategies, and social analyses.

Male 30
Gender
Female 17

Income group (per annum) Under 2lakh 19


2lakh – 4lakh 11

4lakh – 6lakh 04

6lakh – above 05

18 - 25 34

25 - 30 10

Age 30 - 35 02

35 - 40 01

40 and above 00

Student 27

Service Sector 07
Occupation
Professional 04

Business 04

i. Gender: - In this research report, the proportion of male to female ration is 31:17 i.e.,

from the 48 responses collected from the survey 31 are male and 17 are female.

Gender

30
25
20
15
10
5
0
Male Female
ii. Age: - In this report, the survey is done to the respondents of different age group. By

this we can determine the proportion in which amazon is being used for buying books

online by each age group taking a sample size of 48.

Age

35
30
25
20
15
10
5
0

18 - 25 25 - 30 30 - 35 35 - 4040 and above


Age

iii. Occupation: - The responses are collected from 47 peoples belonging to different

occupational backgrounds. This will help us to know the occupational sectors where

the amazon for buying books is more as well as least preferred.

Business

Professional
Occupati

Service Sector

Student

0 5 10 15 20 25 30
iv. Income Group: - This survey is done to the people from different income groups also

as it is also one of the major variables affecting the purchasing decision of the

customer.

20
15
10
5
0
Under 2lakh2lakh – 4lakh 4lakh – 6lakh 6lakh –
above
Income group (per annum)
Chapter 5

DATA TABULATIONS, ANALYSIS, & RESULTS


In this research, the type of analysis used is Factor Analysis.

Factor Analysis: - Factor analysis (FA) allows us to simplify a set of complex variables or

items using statistical procedures to explore the underlying dimensions that explain the

relationships between the multiple variables/items. (Nunnally J, Psychometric Theory, 1994)

In the literature, the strong association between construct validity and FA is well

documented, as the method provides evidence based on test content and evidence based on

internal structure, key components of construct validity.

(CLOUD, n.d.) Factor analysis uses several assumptions:

 The variables’ linear relationships

 Absence of multicollinearity

 Relevance of the variables

 The existence of a true correlation between factors and variables.

Therefore, it becomes a statistical technique used to see how a group shares a common

variance. While it is mostly used in psychological research, it can also be applied in areas like

business and market study to understand customer satisfaction or employee job satisfaction

and in finance, to study the fluctuation of stock prices.

Table 1: Descriptive Statistics

In descriptive statistics, mean and standard deviation of all the variables are taken with the

sample size being 50.


Table 2: Correlation Matrix

(JMP, n.d.) Correlation is a statistical measure that expresses the extent to which two

variables are linearly related (meaning they change together at a constant rate). It’s a common

tool for describing simple relationships without making a statement about cause and effect.

Correlation between all the variables is calculated in Table 2 describing the relation between

all the variables with each other. Positive value of correlation describes higher correlation

than the negative values.


Table 3: Reliability statistics & KMO and Bartlett’s Test

The sampling adequacy of the data set was checked using KMO’s measure of sampling

adequacy. To check the reliability of the data set for conducting PCA, Cronbach alpha was

calculated. The results indicate the Cronbach’s alpha value equal to 0.842. The value falls

under the acceptable range as per the criteria given by (Nunnally J, Psychometric Theory,

1994) and (Robinson J. P., Measures of political attitudes, 1999).

The value of KMO’s measure of sampling adequacy is 0.765. The results of Bartlett’s test of

sphericity depicted in Table 3 implies that the items were related and suitable for employing

PCA, with approx. chi-square 202.847 and degree of freedom (df) equal to 45 at sig. level

<0.001.

Table 4: - Communalities

(Vogt, Dictionary of Statistics and Methodology A Non-Technical Guide for the Social

Sciences(2nd ed.), 1999) In PCA and Factor Analysis, a variable’s communality is a useful

measure for predicting the variable’s value. More specifically, it tells what proportion of the

variable’s variance is a result of either the principal components or the correlations between
each variable and individual factors. It ranges from 0 to 1. From table 4 it can be understood

that the variables have significant common variance.

Table 5: - Scree Plot

(Mangale, Medium, 2020) A Scree Plot is a simple line segment plot that shows the

eigenvalues for each individual PC. It shows the eigenvalues on the y-axis and the number of

factors on the x-axis. It always displays a downward curve.

Here, the first component explains much of the variability, the next two components explain a

moderate amount, and the latter components only explain a small fraction of the overall

variability.
Table 6: - Factor Analysis by PCA

PCA was employed to check the statistical framework derived from the dataset against the

theoretical framework of the study. In this table, the positive values of component 1 i.e., the

price (P6-P9) shows that the respondents are very much satisfied with the pricing. Similarly,

the negatives depict the less satisfaction of the customer towards that particular component.
Table 7: - Total Variance Explained

This table is the total summary of the analysis done of all the components.
Chapter 6

FINDINGS OF THE STUDY


The findings of the research study are presented below, based on the collected data

and the conducted analyses:

1. Demographic Characteristics:

 Gender: Among the respondents, 30 were male and 17 were female,

indicating a higher participation of males.

 Age: The majority of respondents (34 out of 47) fell within the age

group of 18 to 25 years, reflecting a youthful user base for online book

shopping on Amazon.

 Occupation: The largest group of respondents (27 out of 47) identified

as students, showcasing a strong presence of students among the

survey participants.

 Income Group: The income distribution varied, with 19 respondents

falling under the "Under 2 lakh" category, followed by 11 in the "2

lakh - 4 lakh" category.

2. Factor Analysis:

 A factor analysis was conducted to explore the underlying dimensions

influencing customers' online buying behavior towards books on

Amazon.

 The analysis revealed that the variables related to price (P6-P9)

exhibited a strong positive association with one component, indicating

that pricing played a significant role in influencing buying decisions.


 Similarly, other variables related to promotional offers and user

interface design were also identified as important factors affecting

customer behavior.

3. Correlation Analysis:

 Correlation coefficients were calculated to understand the relationships

between different variables.

 Positive correlations were observed between variables related to price,

promotional offers, and user interface, suggesting that these factors

tend to influence each other in customers' decision-making.

4. Reliability and Validity Assessment:

 The Cronbach's alpha value of 0.842 indicated high reliability of the

survey instrument used to measure customers' preferences and

perceptions.

 The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was

0.765, indicating that the data was suitable for conducting principal

component analysis (PCA).

5. Principal Component Analysis (PCA):

 PCA was employed to analyze the data and extract underlying

components.

 The results of PCA demonstrated that customers showed a strong

positive response to factors related to price while other factors had a

less significant impact.


6. Total Variance Explained:

 The total variance explained by the extracted components was found to

be around 70.41%.

 This indicates that the identified components collectively capture a

substantial portion of the variability in customers' online buying

behavior towards books on Amazon.

These findings collectively suggest that factors such as price, promotional offers, and

user interface play crucial roles in influencing customers' online buying behavior

towards books on Amazon. The demographic characteristics of respondents, including

age, gender, occupation, and income group, also provide valuable insights into the

profile of individuals who engage in online book shopping on Amazon. The research

methodology employed, including the survey and factor analysis, has allowed for a

deeper understanding of the factors that drive customers' preferences and decisions in

the context of online book purchases.


Chapter 7

CONCLUSION & RECOMMENDATION OF THE STUDY


Conclusion:

The present study aimed to investigate the factors influencing online buying behavior of

customers towards books with reference to Amazon. Through a systematic research approach

involving data collection, analysis, and interpretation, several key findings have emerged.

The demographic analysis revealed that the majority of respondents were male, aged between

18 and 25, predominantly students, and distributed across various income groups. These

demographic insights provide a comprehensive understanding of the profile of individuals

engaging in online book shopping on Amazon.

Factor analysis unveiled significant factors affecting online buying behavior. Notably, price,

promotional offers, and user interface emerged as pivotal determinants in influencing

customers' decisions to purchase books online. The positive correlations observed among

these factors underline their interconnectedness and collective impact on consumer

preferences.

The findings from principal component analysis further emphasized the significance of price,

promotional offers, and user interface. Customers exhibited a strong positive response to

these aspects, highlighting their role in shaping online purchasing decisions. These insights

contribute to a deeper understanding of the factors driving customers' preferences in the

digital book retail landscape.


Recommendations:

Based on the research findings, several recommendations can be made to enhance the online

buying experience and optimize business strategies, particularly for Amazon:

 Competitive Pricing Strategy: Given the significant influence of price on customers'

decisions, Amazon should continue to emphasize competitive pricing for books.

Regular price monitoring and adjustments can help maintain a competitive edge in the

market.

 Strategic Promotions: Utilizing promotional offers and discounts strategically can

further incentivize customers to choose Amazon over other platforms. Tailored

promotions, timed effectively, can attract a wider customer base.

 Enhanced User Interface: The positive response to user interface design indicates its

importance. Amazon should prioritize user-friendly navigation, efficient search

functionalities, and intuitive design to facilitate easy book discovery and purchase.

 Responsive Customer Support: Providing responsive and helpful customer support

can alleviate concerns related to price fluctuations and other purchasing

considerations, fostering a positive buying experience.


 Targeted Outreach: Understanding the demographic distribution can guide Amazon's

targeted marketing efforts. Tailoring campaigns and offerings to specific age groups,

occupations, and income levels can enhance engagement.

 Continuous Research and Adaptation: As consumer preferences and trends evolve,

Amazon should continuously monitor and adapt its strategies based on ongoing

research and analysis of customer behavior.

In conclusion, the study sheds light on the critical role of price, promotional offers, and user

interface in influencing online book buying behavior on Amazon. These findings offer

valuable insights for businesses seeking to optimize their online retail strategies and enhance

customer satisfaction in the dynamic e-commerce landscape.


Chapter 8

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