TABLE OF CONTENT

Chapter 1-INTRODUCTION.....................................................................................................3 1.1 OVERVIEW.............................................................................................................4 1.2 INTRODUCTION....................................................................................................6 1.3 THEORETICAL FOUNDATION...........................................................................7

CHAPTER-1 INTRODUCTION

1.1 OVERVIEW
The growing use of Internet in India provides a developing prospect for online shopping. If E-marketers know the factors affecting online Indian behaviour, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existing online customers.

This project is a part of study, and focuses on factors which online Indian buyers keep in mind while shopping online. This research found that information, perceived usefulness, ease of use; perceived enjoyment and security/privacy are the five dominant factors which influence consumer perceptions of Online purchasing. Consumer behaviour is said to be an applied discipline as some decisions are significantly affected by their behaviour or expected actions. The two perspectives that seek application of its knowledge are micro and societal perspectives. The online purchasing behaviour of online shoppers and factor influencing online shopping behaviour and its future perspective, internet is changing the way consumers shop and buy 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 price 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 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. Many experts are optimistic about the prospect of online business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from businessto-business commerce, the practitioners of business-to-consumer commerce should not

lose confidence. It has been more than a decade since business-to-consumer Ecommerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behaviour in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers behaviour from different perspectives. Many of their studies have factors or assumptions which are based on the traditional models of consumer behaviour, and then examine their validity in the Internet context.

1.1 INTRODUCTION TO RESEARCH TOPIC E- Retailing an overview Electronic retailing (also called e-tailing and Internet retailing) is a retail format in which the retailer and customer communicate which each other through an interactive electronic network. After an electronic dialogue between the retailer and customer, the customer can order merchandise directly through the interactive network or by telephone. The merchandise is then delivered to the customers address. The World Wide Web can serve one or more of these roles for a retailer Project a retail presence. Generate sales as the major source of revenue for an online retailer or as a complementary source of revenue for a store-based retailer. Enhance the retailers image. Reach geographically dispersed consumers including foreign ones. Provide information to consumers about the products carried, store locations, usage Information, answers to common questions, customer loyalty programmes and so on. Promote new products and fully explain and demonstrate their features. Furnish customer service in the form of E-mail, hot links, and other communications. Be more personal with consumers by letting them point and click on topics they choose. Conduct a retail business in a cost efficient manner. Obtain customer feedback. Give special offers and send coupons to web customers. Describe employment opportunities. Present information to potential investors, potential franchisees and the media.
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The role assigned to the web by a given retailer depends on whether it is predominantly a traditional retailer that wants to have a web presence or a newer firm that wants to derive most or all its revenues from web transactions. In India Non-Store retailing represented by direct selling and e-tailing is estimated at Rs. 1,100 crores. Only 19 percent of all retailers have an e-retailing initiative. The number of retailers with plans to e-tail within one year and those with no plans are almost equal. Significantly, 10 percent of the retailers have discontinued their e-retail initiatives. The main reasons for retailers to stay away from e-tailing are predominantly non-viability of business and resource constraints. It is estimated that 5 percent or more of retail sales of goods and services such as apparel, banking, books, computer hardware and software, consumer electronics, gifts, greeting cards, insurance, music, newspapers/magazines, sporting goods, toys, travel and videos will be made online. In the case of products where it is difficult to provide touch and feel information electronically, such as clothing, perfumes, flowers and food electronic retailers may not be successful. Branding may help overcome many of the uncertainties in purchasing merchandise without touching and feeling it. For example, if customers purchase a size 30inch waist / 32-inch inseam pair of jeans, they know they will fit when bought from an electronic retailer. In some products and services, such as traveling or hotels, electronic retailers might even be able to provide superior information compared to store retailers. The critical issue related to selling successfully for electronic retailers is whether they can provide enough information prior to the purchase and make sure the customers will be satisfied with the merchandise once they get it. There are many buying situations in which electronic retailers can provide sufficient information, even though the merchandise has important touch and feel attributes.

Started on venture capitalist (VC) or initial public offering (IPO) money, by 1999 there was hype around e-tailing. Consumers were thought to be ready to make a deliberate choice of buying from e-retailers rather than retailers. They seemed to fulfill the consumer dream of no queues, no geographic barriers, low prices and unlimited selection - what retail had failed to deliver. But e-tailing ended up disappointing and found that traditional shopping was easier. Ernst & Young statistics for the 1999 Christmas season revealed that US online buyers spent only 26% of their holiday
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spending (averaging $1,080 per capita) online, while they devoted 67% of their total holiday expenditure to in-store purchases, the remaining 7% they spent on catalogue products. By the end of the 2000 holiday season more than 90% of e-tailers closed down in the period to January 2001. E-commerce witnessed the collapse of several online grocers, drug stores, auto dealerships, pet supply stores and other budding ecommerce ventures and hundreds of dotcom investors abandoning their dreams of getting rich quick with e-commerce. However, Retail e-commerce sales grew to $7.5 billion, up 24.7 percent in the second quarter of 2001 compared with just under $6 billion in the second quarter of 2000, according to an August report from the U.S. Commerce Department. Leading market researchers suggest that U.S. markets for online retailers will cross $27 billion by 2007. European Web shoppers are expected to spend more money online for groceries than their American counterparts, according to Forrester Research. The report predicts that Web grocery shopping in Europe will be $51 million or five percent of Europes total grocery sales by 2007. Seven percent of the United Kingdoms grocery sales will go online by 2007. The Nordic countries are expected to follow closely with six percent of grocery sales taking place online. France and Germany will account for more than three percent of sales online in 2007. The present players in the market are trying to learn the lessons from the failures and success of extinct and surviving e-commerce pioneers.

1.2 AN OVERVIEW OF INDUSTRY in GENERAL

Powering the Reinvention of Retailing
Growth of e-retailing hinges on the last mile, When looking at potential growth for online retailing, most analysts look at the number of consumers who are online, what online merchandising they respond to and what marketing it takes to make them repeat buyers. Chicago-based consultant Lauren Freedman has one word for them: Fulfillment. How do we grow this business if people arent home to receive their purchases when they are delivered? says Freedman, president of The E-Tailing Group Inc. Not everyone can receive their deliveries at work.

E-retailing Myths: The common myths earlier were that online selling required low investment and low cost and hence had no entry barriers and it was easy to succeed. There are four B2C myths that can be misleading while managing e-commerce operations. 1. Stickiness is good: Many sites aspire to keep customers on the site as long as possible by adding features and design navigation. They have too many sequential clicks through pages and save the best page for the last. On the contrary it is observed that when it comes to e-commerce sites, the customers would rather complete their purpose than unnecessarily waste a lot of time on a site when looking for a particular product. Therefore, a site should have an introductory home page, offer speed navigation, vividly describe product benefits, update displays regularly, provide expert information and price competitively. 2. More is better: Some sites try to attract customers with flashy technology by bombarding them with fancy graphics, animation and sound effects. But fancy visual and sound effects slow sites to a crawl. A recent survey from Jupiter Media Metrix found that visitors were twice as likely to return to a site with faster loading pages as they were to sites that provide rich media. The Jupiter survey also found that 59 percent

of those surveyed would be more likely to return to a site that offered more product information. 3. Personalization drives profitability: Personalization was supposed to be the killer application of B2C. But personalization is just one of the merchandising techniques that e- commerce sites should consider for incremental sales improvement but per se it does not help to complete sales. This is because customer actions dont always reflect their interests. For example, a customer may have bought a book on baseball as a gift for his brother-in-law, a sports fan. But the customer dislikes sports himself. However, that does not stop the site from continually calling the customers attention to books on baseball, football, basketball and the like. It is recommended that instead of investing in expensive personalization technology sites they would be better off devoting their energies to proper merchandising by answering questions and having items logically arranged. 4. You can sell anything on the web: One can sell many products like CDs, books, gifts, online. But certain products arent a good fit for e-commerce sales, either due to legal restrictions like in the case of alcohol, or the customers need to touch and feel the product or try an expensive piece of apparel to make sure it fits. Sometimes the discounted price shoppers find on the Web may not offset the hefty shipping charges for large, heavy items such as an oven or Jacuzzi. Although, in the case of such products one may not be able to complete the transaction on the Web but it can assist the sale. The web-site can be used to inform customers about these items and direct them to an appropriate sales channel, like its stores or distribution network. 5. Some common myths now are that e-commerce entails high cost and hence is not viable. E-commerce is undoubtedly a high investment business requiring substantial investment to set up the web site, the software for data capture, records and interactive systems for customer dialogue. These are sometimes underestimated and often cause downfalls. But they are investments like any bricks and mortar business; only the heads under which they are made are different. 6. Another myth is that e-commerce cannot make money. But e-commerce can be made profitable by generating volumes to make money and given time to mature and

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taking up the challenge to change customer behaviour. However, it cannot be a gold mine. 7. According to the Ernst & Young Global Online Retailing report, the main reasons that non buyers dont buy online are: they are uncomfortable sending credit card information, preference for seeing the product before purchasing, no existence of credit card, and insufficient information about products to make decisions, lack of confidence with online merchants and limitation of talking to the sale person. In addition, the main concerns of online buyers are overly high shipping costs; need to try for fit in the case of apparel, high prices, inappropriate for large, perishable and luxury items, need to feel and see and concern of privacy. The report also charted that 3 biggest barriers consumers feel hinder their online shopping experience is price, security and ease of navigation. 8. The e-tailers have high fulfillment of costs (which can be as high as US$16 an order for most dotcom e-tailers) and lack of scale makes the business unprofitable. 9. Poor inventory management also causes major losses for many dotcoms. This fact along with inexperienced merchandising teams, brutal price competition, inefficient product return systems, result in poor gross margins for online only players. 10. High marketing costs: Experienced offline brands spend about 18% less than startups on establishing retail websites. E tailer-marketing costs are high. Online rent, a term for the price of time and space on media channels for on-and offline brand marketing, has inflated hugely over the last decade of the twentieth century. According to Thomas Weitzel Partners (August 1999) where a superstore spends an average of US$2.50 promoting a product, e-retailers spend US $17.29 per product. 11. Online customer acquisition costs: Most consumers still need to be persuaded to go online and at the same time almost all e-retailers lose money on every customer. Their customers generate too few orders and too little profit per order to cover the costs of winning them, which can be as high as 65% per order. According to a study by The McKinsey Quarterly in July 2000, for e-tailers to achieve comfortable contributions on each transaction, they would need efficient order fulfilment processes, average orders of at least US$100 and gross margins of at least 25%.

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Factors Affecting the Growth of Electronic Retailing Three critical factors affecting the adoption of a new innovation such as shopping electronically are (1) the ease with which customers can try the innovation, (2) the perceived risks in adopting the innovation, and (3) the benefits offered by the innovation compared to the present alternatives.

Trying Out Electronic Shopping: In September 2002 about 605.60 million around the world had access to the Internet. Majority of these web surfers were living in Europe, followed by Asia/Pacific, Canada & USA, Latin America, Africa and the Middle East. According to the United Nations Conference on Trade and Development (UNCTAD report) Internet usage is seeing an annual rise of about 30-percent which is equivalent to about 2.5 percent of the global population. A growing share of new internet users is in developing countries, which accounted for nearly a third of all new Internet users worldwide in 2001. Already Asia, excluding Japan and the Republic of Korea, added almost 21 million new users to the Internet in 2001, more than North America. With 77 million people under 18 expected to be online globally by 2007, teenagers and children constitute one of the fastest growing Internet populations, Surfing the net is a highly regarded activity by this age group. However, adults over 50 years old are one of the fastest growing markets online. A large number of this age group has home access to the Internet. Studies have revealed that older people are receptive to new technology and have time, money and enthusiasm to surf the web regularly. Apart from staying in touch with far-flung family and friends, the older people tend to purchase merchandise and services online because shopping in stores can be difficult for them.

Perceived Risks in Electronic Shopping Technological developments are reducing the risk of electronic shopping by enabling secure transactions and increasing the amount and quality of information available to electronic shopper. However, security of the credit card transactions remains one of the major concerns, especially in developing economies. Entertainment and Social
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Experience: All non-store retail formats are limited in the degree to which they can satisfy these entertainment and social needs. In-store retail formats score high on this account. They provide more benefits to consumers in terms of entertainment and social experience than simply having merchandise readily available and helping them to buy it. Even the most attractive and inventive web pages and video clips will not be as exciting as the displays and activities in a Disney or Toys R Us store due to their interactivity. In the case of store-based retail formats the delivery time of getting merchandise is immediate. But in the case of non-store retail formats consumers usually have to wait several days to get merchandise, especially when the goods are of a perishable nature and bought prior to an occasion. Number of alternatives: The biggest benefit of electronic retailing compared to other retail formats is the vast number of alternatives that become available to consumers. For example, a person living in India can shop electronically at Harrodss in London in less time than it takes to visit the local supermarket. However, it does have limitations. Shoppers may visit all the sites selling the product. This may be a time consuming exercise unless the consumer is focused and finds a few items that they might like to study in detail. A more significant potential benefit of electronic retailing is the ability to have an electronic agent to select a small set for the customer to look at in detail. Service oriented retailers score higher on this account as their salespeople know what their preferred customers want and help indecision making by limiting the choice.

Cost of Merchandise: Since electronic retailers do not have to spend money building and operating stores at convenient locations, they have much lower costs, as much as 25 percent lower than instore retailers. But the electronic retailers or the customers will have higher costs to get the merchandise to homes, deal with the high level of returns and attract customers to their website. It is quite costly to deliver merchandise in small quantities to customers homes. Customers presently incur these costs when they spend their time and money going to stores to pick out and take home merchandise and then going back to the stores to return the merchandise they dont want.
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E-TAILING CHALLENGES 1. Zero error operations A study by Boston Consulting Group in the United States and Canada in 1999 showed that 57% of Internet users have shopped online and 51% actually purchased goods or services online. The typical online purchaser completed ten transactions and spent $460 online over the previous twelve months. Yet 28% of all attempted online purchases failed, and four out of five consumers who made purchases online experienced at least one failed attempt over the same period. These failures resulted from technical problems consumers encountered with the sites, difficulties in finding products and logistical and delivery problems after the sale. Twenty eight percent of consumers who suffered a failed purchase attempt stopped shopping online and 23 % stopped purchasing at the site in question. However, the study also showed that consumers who enjoyed a satisfying first purchase experience online were likely to spend more time and money on the Net. The satisfied first-time purchaser typically engaged in twelve online transactions and spent $500 during the previous twelve months. The dissatisfied first time purchaser spent only $140 on four online transactions. About 5% of users who had bad online shopping experiences also stopped patronizing the retailers physical store. There are a number of things in the e-business environment that can impact the consumers shopping experience negatively. Primarily the e-tailers need to think about providing support for customers on two subjects: problems with the website usage and questions or problems with the product. Appropriate use of technology and people solutions will have to be defined in order to support e-business initiatives by understanding, tracking and monitoring the online behaviour of customers. Normally, people have to spend a lot of time describing the problem. The customer support team can see where the customer was at the time of reporting the problem or what task was abandoned. Based on which they can efficiently resolve this issue. This type of service will not only enhance a customers experience on the e-tailers website but also provide the organization with an opportunity to reduce costs. E-tailers have several customers survive options ranging from realtime consumer interactions to self-service options:

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Frequently Asked Questions (FAQs): This is a self-service option that relies on information stored in a database to assist customer transactions and provide answers to common questions that are asked by customers. This database is continually built over time and new customers and answers are added, based on knowledge gathered from earlier customer interactions. Call Us Buttons: Call-us buttons appear on the website pages, allowing the customer to call the customer support representative on a regular phone via the web. PCs that are equipped with speakers and a microphone may take advantage of voice-activated websites that send voice over Internet using VoIP technology. Another variation to the same option is call-me buttons, where the customer can request the customer representative to call back, though this may force the customer to go offline. Text Chat: Text chat over the net allows a client to send a question and receive a real time written response. This allows almost instantaneous communication with more than one customer at a time or in a group. Depending on how it is implemented, it may appear to be slow to some users. Collaboration/Co-browsing: Web collaboration technology allows a customer support representative and the customer to share the same screen so that the representative can see exactly what the customer is doing. This type of interaction will help the support representative solve a problem if the customer is stuck at a certain place on the website. On the other hand co-browsing offers the capability where more than one person can browse a site together, with one of the users doing the driving while the other has secondary control. This type of interaction will provide the representative with capability to handle a customer who seems lost on the website. E-Mail Management: email systems should be fully automated using artificial intelligence (AI) or other new technologies that help the e-tailer to deliver an instant automatic reply based on key words or FAQs. E-mail systems can automatically route e-mails to a call centre, where a customer support representative can review the suggested computer-generated response or can prepare a new response before it is sent to the customer.

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Call Centers: Plain old call centers should be enhanced to support calls from online customers as well as catalogue shoppers. Earlier, the call centers had to be confined to a geographic area or country to provide the best support, with the Internet, the call centers can be spread across multiple countries to provide the same, or better, quality of support and reduce the cost of providing the support. E-businesses are realizing that it is imperative to communicate with their customers through a range of media options and that these technologies must work together seamlessly for the customer. This places huge pressure on the customer service divisions of the company. The online e-tailer will use multiple forms of customer service including live interaction by telephone and chat, asynchronous communications using e-mail and fax and computerized service using natural language-based help systems.

2. Increased Gross Margin: Every retailer ideally wants to have high value, high margin and fast moving products. But that is often not possible. The products that fetch the most money may not be the products that the customer wants to buy. Therefore retailing is ultimately about being able to find a balance. E-tailers need to pay attention to gross margin return on investment. For example, if a 25 percent margin category sells six times a year and a 15 percent one sells 12 times a year, it is better to go with the latter. Therefore getting the right product mix is critical to retailing. An e-tailer should also try to cut down the direct costs by achieving distribution efficiencies. There are many factors like the products retail price, the physical requirements of the product to be shipped, and delivery speed required for the product category that would influence the e-tailers, distribution considerations. Price point is a crucial determinant in distribution and business viability decisions. The fulfilment costs associated with FMCG products are so high that merchandise with low price points fail to achieve break even. For almost all products, packaging and/or shipment and same day fulfilment can be vital. In these cases the best distribution centre is the retail outlet closest to the consumer, making personal collection or speedy individual delivery possible. E-tailers should be,

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wherever possible, to adopt the vendor shipping option that would enable it to cut down direct costs and hence increase the realizable gross margin

3. Customer Acquisition: Gaining information about customers and potential customers and converting such needs into demand is more feasible in electronic commerce than any other marketing channel. The Internet allows e-tailers to gather huge amounts of information about their customers easily. They can use this information for personal pricing and customer specific targeted promotions. It might also be used to directly offer customers related products, either in real time during the on-line shopping process or by e-mailing them with special offers. This possibility offers benefits for customers. It is a convenient opportunity to get to know new products they would like to buy without having to look for information in many places. One way e-merchants attempt to lure new customers is through online coupons especially in the case of grocery shoppers. Other categories such as toys, books and music are also popular in terms of redemption of e-coupons. Majority of grocery shoppers use online coupons and nearly half as many redeem online coupons. Toy e coupons witness the highest online redemption rate at 87% followed by books at 83%. While the potential for e-tailing seems boundless, challenges do exist to altering customers expectations and behavior. Changing customer behavior is the most complex task. The e-tailer can change customer behaviour and increase their clientele by managing four key elements: Educate: As a rule, the more potential customers know about the product or services the e-tailer is selling, the more theyre likely to buy. Education does not only have to be about the product but also of the e-tailers business, quality assurance and processes. Guarantee: Any purchase represents a risk to the buyer. The risk may be of paying much more than what its worth or the item may not look as good at home as it does on the web site. The e-tailer should not only eliminate the risk but also reduce the customers perception of risk by having risk-free return or exchange policies.

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Manage Expectations: The e-tailer will need to manage customers expectations so that they are not disappointed or frustrated by the shopping experience. The expectations may be as simple as those about availability of the item or shipping time or the total cost. Satisfaction: The e-tailer, after having educated its customers, hedged their risk and set their expectations, needs to follow through with online customer service. A study in found that U.S. businesses lost more than $6.1 billion in potential Internet sales in 1999 because of poor online customer service and estimated that an industry wide failure to resolve the problem could lead to at least $ 173 billion in lost revenues through 2004. Additionally, 7.8 percent of online transactions initiated by customers are abandoned because of poor customer service. Thus, customer service must integrate seamlessly not only with the companys existing Web site, but the companys entire operations Online and offline.

4. Generating customer traffic: E-tailers adopt one of two approaches to generate traffic: Impulse Driven and Serious Shopper Approach. Impulse purchases are defined as purchases that signify with high emotional activation, low cognitive control and largely reactive behavior. This occurs when consumers experience a sudden and often powerful and persistent urge to buy something immediately even though they she had no prior intention of doing so. Under this approach the e-tailer generates high traffic. The more often a customer visits a site, the more likely they are to spend an increasing amount of money and thus generate profits for the e-tailer. For instance, in apparel, the average repeat customer spends 67% more overall in the third year of shopping relationship with an online vendor than in the first six months. And over three years, customers referred by online grocery shoppers spent an extra 75% above what the original shopper spent. Products that are generally bought on impulse purchases usually have several of the following characteristics: Their price is considered average or acceptably low enough by the consumers; They are low involvement goods; They are related to entertainment activities and hobbies; They are used as gifts to friends and relatives;
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They are considered trendy or popular items; They are personalized versions of common products; They are related to holidays or important festivals or occasions In order to take advantage of such shopping online retailers should offer products that can be bought on impulse. They also need to emphasis product presentation and placement to reinforce the emotions that motivate consumer purchase decisions. They could choose some of the following to generate higher traffic: Ease of access: Impulse purchases can be made without requiring the customer to leave their home in order to see the product on display. Low touch: Most products likely to be bought on an impulse do not require touching or trying on which makes them appropriate for on-line retailing. Dynamic displays: customers can be presented with such products while navigating through the online shop; different items can be shown on each page to maximize the likelihood of purchase; items which are related or complimentary to those in the section of the catalogue currently viewed can be displayed. Personalized displays: on line technology allows personalizing the items advertised to The customer during navigation which can be done based on the customer preferences or demographic information (if membership is an option) or purchase history. Personalized reminders: members or previous customers can be sent or presented reminders about coming holidays or popular items (best sellers) in categories they have expressed interest or made purchases in, in the past. Personalization opportunities: customers can easily be presented with opportunities to personalize common products (e.g. print a name on a cup) that can initiate impulse purchases. Advanced visualization techniques: graphics technology (animation, sound / image effects) gives many opportunities to present a product in a way that will impress the consumer and motivate them to buy it. Purchase expediting: on line retailing allows on click purchasing (for registered customers or members) which leaves virtually no time for second thoughts or reasoning about the purchase of product. In case of the Serious Shopper Approach, the e-tailer builds a relationship based on service levels and quality of products. The e-tailers have to proactively anticipate and
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handle consumer expectations and ensure that whats being delivered is better than what users expect. So retailers constantly need to analyze their product/service categorys relationship with consumers and ensure that their own business isnt becoming disconnected from general expectations.

5. Customer Retention E-business is redefining the way the e-tailers manage customer relationships and place new demands for customer support throughout the sales cycle and thereafter. This task has been made more complex by individualization of customers. The e-tailers cannot afford to ignore even an individual customer because word -of- mouth spreads very fast on the Internet. User groups, communities, web chat and e-mail each have enough individual power to drain away revenues or create bad publicity. Only personalize support and sophisticated customer interaction can help the e-tailer convert more browsers into buyers, resulting in higher revenues per customer. Also, it costs about five to eight times more to acquire a new customer than to keep an existing one. Therefore, it is essential for the e-tailers to build loyalty, aim to achieve zero error operation, to create continuing excitement at the stores and have a mix of impulse and need based products to induce customers to visit the site often. Some notable consumerdriven e-commerce site content already in use: 1. Testimonial pages: Testimonials are a powerful tool to establish credibility, which is especially important for a website in the early stages of existence and/or in the early stages of developing any individual consumer relationship. A web site can also request feedback for testimonials from happy customers and opinion leaders. 2. Awards: This is another credibility tool as well as a tactic to increase traffic. 3. Extensive and useful links or resource pages. 4. Contests, sweepstakes, sign-ups to get visitors to voluntarily opt for future marketing efforts targeting their specific consumer interests. 5. Information: according to an MSN Sidewalk survey, 74% of Internet users seek information

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6. Reviews/ Opinions, especially product related. 7. Learning networks/communities: through forums, chats, interactive software mailing lists and newsletters. This is particularly relevant to complex and/or non commoditized products. 8. A niche network of related sites: reciprocal links, banner ads, sponsorships. New releases and articles can be sent to publications focused on various products or product user niches.

6. Earning Customer E-loyalty Customer loyalty is a key driver of profitability for on line companies. Consumers are motivated to buy more goods online when security features were enhanced and personal information kept private. Increased loyalty can bring cost savings to a company in many ways: lower marketing costs, lower transaction costs (such as contract negotiation and order processing), customer turnover expenses and lower failure costs such as warranty claims and so on. During the past decade, customer loyalty in general has been decreasing. The introduction of electronic commerce accelerated this trend because customers ability to shop, compare and switch is extremely fast and inexpensive, given the aid of search engines, mall directories and intelligent agents. A study found that 75% of online customers who participated in loyalty programmes say that it is not the loyalty factor that motivates them to make online purchases. Instead, e-commerce providers should fill functionality gaps or face losing customers to competitors. Only 22% of 1,200 online consumers said loyalty programmes served as an incentive to buy online. The survey highlighted that loyalty programmes must go beyond giving out points and should reward loyalty with improved service such as priority service, personalized offers and e-mail updates. 72% of the respondents said that customer service is a critical factor in shopping satisfaction and only 41% indicated they were satisfied with the service they had experienced. Managing privacy is an important issue in building loyalty. It is becoming a major concern as technology gets better and companies collect large customer data and start trading it in the market. As a business, e-tailers would need to clearly communicate their privacy policies to build trust with customers.
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7. Managing Technology In e-tailing business, size is no longer a determining factor for success. The critical metric is the speed of decision-making, customer service, response time, etc which are all shortening, owing to the technological revolution. Up-to-date, intelligent and userfriendly technology also communicates professionalism, a vital quality in building trust. Indian retailers are gradually but steadily upgrading their IT infrastructure. Companies are willing to increase their IT spending from 1 percent of sales at present to 5 percent and expect clear benefits in vital areas like inventory management and customer interfaces. In India, Shoppers Stop has one of the most advanced IT systems in place. In a recent Economic Times survey the company was recognized as among the most ITsavvy companies in India. It has already pumped in over 10 crores in to IT systems merchandise management systems, inventory management, CRM package etc, and have futuristic plans to continue its spate of investments. The main aim of the company is to see that the time spent by their merchandisers on mundane functions is minimized and they can spend more time on strategy related issues. However, e-tailers should not fall prey to becoming a slave to technology. In the aftermath of the dotcom blowout and the downturn in the economy e-tailers are reviewing strategies, processes and questioning IT spending as they strive to improve performance and boost profits in a difficult economic climate. It is more critical to have a robust, reliable and scalable software platform than have bells and whistles. Therefore e-tailers should not try to attract customers with flashy technology with fancy graphics, animations and sound effects but should offer more product information. A recent survey found that visitors were twice as likely to return to a site with faster loading pages as they were to sites that provided rich media. It also found that percent of those surveyed would be more likely to return to a site that offered more product information.

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Channel Comparison

Bricks-and-Mortar Catalog Retail Retail Location and presence Physical buildings Print materials branded and easily identified and found Most traditional and oldest location for retail Commands attention in the retail landscape How merchandising Use of store space Page layouts is accomplished and "fix Turing" "Portable store" Sent to targeted mailing lists

e-Retail

Location is the Web address, available globally through any Internet connection Can establish a presence through partnerships and crosspromotions (links between sites)

Web page layout

Organization of Relationship between Signage and other catalog product information tools Relationship between Signage and other product information product and text

product and text tools Category, search, and sorting mechanisms Interactive product locators Options for Pricing strategies Pricing Pricing strategies and campaigns can be implemented
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promotional activity and campaigns can strategies and be implemented campaigns can

Bricks-and-Mortar Catalog Retail Retail on a daily basis be implemented only as frequently as new catalogs are distributed Options for inventory Product must be available at multiple store locations to maximize purchasing opportunities (with the exception of products intended for special order) Product is held at warehouse until ordered

e-Retail

"instantaneously," depending on internal organizational constraints

Multiple inventory ownership options, with most prominent

and shipped to being traditional, "justcustomer in-time," and a hybrid of the two

E-Retail + Traditional Retail Operations Sites like macys.com and gap.com, as well as relative late comers walmart.com and jcpenney.com, are evolving into online branches of brick-and-mortar operations. This kind of site is not limited to the rich, famous, and nationally well-branded. Many smaller stores have used the Web to broaden their market by opening online branches, which make available to Web shoppers goods that were once accessible only to people near the store. The inverse image of this model is also evident: businesses that started out as Web eretailers but have since added brick-and-mortar operations to their sales channels. Gazoontite.com launched its Web site selling hypoallergenic products before opening its flagship store in San Francisco. Additional stores have opened on both coasts and in the Chicago area. Originally intended to reinforce the site's branding and credibility, the
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brick-and-mortar operations have proven to be a huge success, even as the e-retail site has stopped selling. The concepts outlined in this book apply to traditional retail stores and e-retail sites. If your site would benefit from a storefront, the same skills and metrics should guide your decisions. For the purposes of this book, however, we focus on the e-retail component of the business.

E-Retail + Catalog Operations In this category are well-known catalog merchants like Lands' End, which has expanded its popular direct merchant business through landsend.com. For catalog retailers, expansion to the Web is a relatively easy development. They already conduct most of their sales through remote media and are already equipped to handle customer service and order fulfillment. This model also has an inverse, in the form of dot-coms that have added print catalogs or other print sales tools to their online site offerings. Print sales tools can serve as a tangible reiteration of an e-retail brand and its product offerings. Garden.com, for example, added a print catalog to the many merchandising techniques the company uses to drive sales at its Web site. The consistent, physical reminder of your name and brand can be an important aspect of your marketing, regardless of whether you intend to achieve sales through both a print catalog and your retail site.

E-Retail + Web Site Content Selling goods is a complementary component of business for these sites, which may rely on other sources of revenue for some portion of their business. Other components may include community building, editorial and informational content, product reviews, and recommendations or other features to draw users to the site.
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The combination of targeted information and retail is a powerful one that cannot be easily replicated offline. To be sure, many traditional retailers of all kinds offer their customers print newsletters, loyalty programs, educational opportunities, and more. However, the Web uniquely enables customization of that content, allowing customers to pull from the site exactly the content they want and need, when they want it, and, many times, in the form they want it. From the e-retailer's perspective, this customization is automated; the company need not employ envelope stuffers to select and mail the appropriate materials to a customer on a regular basis. From the customer's perspective, this feature creates the experience of becoming a "market of one," with a direct relationship to the retailer. Content and e-retail sites may mix their revenue streams in a variety of ways with any number of tools such as membership programs, advertising, sponsorships, retail, subscriptions, and syndication of content. Affiliate programs, which credit a referring Web site for sales made through the site, can make almost any site a de facto ecommerce site. For the purposes of this book, we considered sites that rely on product sales of 50 percent or more of their revenues. FashionDish.com and Baby Center are both content-driven e-retail sites. Both sites rely on targeted content (celebrity gossip, parenting information) to bring customers to the site and keep them coming back. What format best suits your business? What sales channels will prove successful for you? The balance between Web sites, brick-and-mortar stores, and catalogs depends on your retail strategy, goals, and budget. Although our focus throughout the book will be on the Web-based retail operation, take some time to consider whether additional sales channels make sense for your product, market, and unique selling proposition.

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CHAPTER 2 REVIEW OF LITERATURE

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OVERVIEW

To study the consumer behaviour is very complex as it is a kind of human behaviour, and human beings are always not easily studied, understood and sometimes quite ambiguities. Therefore, the complexity of consumer behaviour represents a challenge to anyone who wants research the subject including marketers. From the concept of marketing, it is based on the notion of creating satisfying relationship between sellers and buyers. In this kind of exchange process, consumer is being an important partner to make requirements, and thus it is essential for marketers who want to possess an understanding of consumer behaviour in order to make marketing strategies.

Perspectives

Traditional consumer behaviour shopping has its own model, which the buying process starts from the problem recognition, information search, evaluation of alternatives, then purchase, and at last post-purchase behaviour. During these serials actions, the perspectives on consumer behaviour could be divided into two parts: Macro perspective and Micro perspective. Macro perspective mainly influences by modes of thought and deploy form of enquiry. Micro perspectives mainly include the decision theories.

Factors

The influences on consumer behaviour are often made between external and internal factors. External factors are come from the environmental conditions, and internal factors are usually from the consumers mind. There are many factors could influence consumers behaviours. According to Warner, the external influences could divide into five sectors: Demographics, socio-economics, technology and public policy; culture; subculture; reference groups; and marketing. The internal influences are variety of psychological processes, which include attitudes, learning, perception, motivation, self image, and semiotics. In addition to these, the consumers have two types of motives while shopping, which are functional and non-functional. The functional motives are mostly about the time, shopping place and consumers needs, which could be like onestop shopping to save time, the environmental of shopping place such as free parking place, lower cost of products and available to choose from widely range of products.
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The non-functional motives are more related with culture or social values, such as the brand name of the store. The traditional shopping is simply about the customer to purchase their needs. This behaviour will be influenced by the sellers advertising and promotion which attracts customers goes there and purchase goods, afterwards a part of new products will be taken home and be used.

Internet Shopping

Internet shopping and traditional shopping are sharing many similarities, at the same time, it still exists some differences between them, such as the Internet shopping could provide convenience and interactive services, and the traditional shopping could gives customers more comfortable shopping environment and good quality of products. Both aspect of shopping malls are trying to improving their services by learn commutatively from each other, such as traditional shopping malls provide more parking spaces, more counters, and closer to residential area in order to improve services in convenience; Internet shopping malls adopt virtual reality and 3D techniques to improve the presentation of products. In the following sections, the study would provide the nature of internet shopping at first, then the E-commerce web site will be indicated to comprehend the essence of internet shopping, after that, online security, privacy and trust will be discussed. All of these general overviews and discussions about the internet shopping will provide a background to the study and help to building the foundation of academic researches.

Nature of Internet Shopping

As mentioned above, the Internet shopping is another mode of shopping and it can provide customers with new experience. Therefore, the Internet shopping has its special nature to difference with traditional shopping. According to Miller (2000), the product and services for Internet shopping could be influenced easily by their type, and he also indicated four sources that could explain the nature of Internet shopping. In this section, the nature of Internet shopping will be discussed below with three main parts: convenience, technology, and product and price.
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Convenience

Internet provides a big convenience for shopper, which is the main reason for them shopping online has been agreed by most of researcher and customers. Due to the feature of Internet, it allows customer to shopping online anytime and anywhere, which means customer can browse and shopping online 24-hours a day, 7 days a week from home or office, which attracts some time-starved shoppers come to Internet for save time to searching products in physical store. Additionally, Internet offers some good ways to save money and time. For example, shoppers do not need go out to the physical store and thus there is no transportation cost. Compare with the traditional shopping, there is no waiting line for shoppers on the Internet, and some shoppers reported that they feel pressure from the sales people sometimes, but Internet offers them more enjoyable while shopping online.

Technology

The convenience based on Internet is mainly according to the technology development, and which plays a key role during the development of Internet shopping. In the last decade, organisations have realised that the new technology could impact on Internet shopping deeply, and thus there are many important technologies like virtual reality and 3D techniques have adopted to gain big competitive advantages. Information technology has used in the form of the Internet improved better quality of product information, which help shoppers decision making. Through the wide range of surveys about the Internet use, the growth of Internet and the rate of growth of Internet usage have been rapid increased in the last decade. According to surveys, the number of Internet users in Great Britain has increased to 22.7 million among 48.4% of the adult population, and about 53% of Internet users have reported that shopping is a primary use of the Web. Moreover, a statistical report on the Internet Development in China from CNNIC (China Internet Network Information Centre) have released in July 2006. From this report, in the aspect of Internet shopping, there are 30 million users often shopping online, and near 1/4 Internet users have online shopping experience. Both surveys shows that more and more Internet users prefer online payment while they shopping, thus the security of
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online payment certainly will become a significant factor to influence the Internet shopping. The provision of the security is becomes the highest or almost the highest budget in the service development of Internet retailer. As this kind of technology is quite complexity and costly for Internet retailer develop by them own, therefore, they usually ask for professional security service provider to check their E-commerce web site, and get the verify or certificates from the provider like VeriSign, in order to let shopper knows that shopping on Internet is very safely. Another Internet technology has adopted for improving the Internet environment is developing a virtual community. As Yoo W., Suh K. and Lee M. mentioned in his report, personal interactions with other customers and service providers play a very important role while shopping online. Because of the feature of Internet, customers can not check the products and service carefully, almost all of trade between sellers and buyers are through a virtual world, and people cannot meet each other directly, therefore, the Internet retailers offering not just products or services but also a nice and efficient interface for interactions with customers, and which could increase the happiness of customer to shopping online and let them gain new shopping experience.

Product and Price

The Internet allows consumers to browse products or services extensively, search the newest products or services information, check and compare prices among all of the offers, and make/change orders instantly and easily. These allowable activities offer another way of convenience to consumers. For browsing the products/services, consumers only need to do is open a browser and exploring the shopping sites, which gives them more pleasure to seeking out the new information about the products and services than searching in physical stores, even some of them did not actually buying anything, but they still gain a new kind of shopping experience. Moreover, the web based contexts can easily and flexibility show the inventory of some niche products, and thus shoppers could looking for it by search through a large scale of product database. For some products, such as books and CDs, which shoppers are already known the quality, and that means the less quality concern for shoppers purchase it from online. Therefore, if the brand name and equity of products or services have

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embedded in shoppers mind, that means this products or services are more amenable to web based marketing. According to the research by Bulkely and Carlton (2000), the majority of Internet shopping behaviours consist of one-time purchases, which is mainly according to consumers different shopping motivations, such as convenience. Therefore, the Ecommerce shopping websites need improve their services or reduce the cost of products in order to motivating these one-time purchase shoppers to become loyal and regular consumers. In the aspect of costs, the E-commerce shopping websites have their strength than physical store, as they can remove the middle marketers (brokers, distributors), and that the lower warehousing cost and distribution expense can be added to online retailing channels for reducing the marketing price, which could greatly attract the price-sensitive shoppers come and purchase.

E-commerce Web Site According to Zwasss (1998) definition for Electronic commerce is the sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks. For doing business, the Internet provides a lot of technologies to enhance the E-commerce. For example, for the aspect of the sharing of business information, the Internet provides shared databases (such as the databases of books have been shared among all of the publishing company in the US); email, web based forum, electronic data interchange (EDI) and other software could increase the interactions with customers and business partners, and also conducting business transactions much easier and more efficiently. The Internet mad the world become smaller and closer, and it becomes very popular in the peoples life. From the firms view, as the Internet makes much easier to running an online business for firms, and the associated costs will be decreased in some ways, thus that strength of the Internet attracts firms to enter this new marketplace. On the other hand, actually there are some problems are exist in the international market, and some of this are not fully solved, such as the currency, taxes and tariffs. Despite those problems, the adoption of E-commerce for Business Company could gain more advantages than disadvantages. There are three components in the E-commerce processing: sellers & buyers, products & services, and E-commerce web site. Each component plays a key role in the Internet
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shopping. The advantages of E-commerce could be divided into four sides: cost reduction, revenue expansion, time reduction, and relationship enhancement. The Ecommerce can be essential complementarities for the firms as the store rents and the cost of for sales staff can be greatly reduced by transferring physical store to online, beside this big cost for traditional firm, the Internet also provides many applications (e.g. email) to reduce the costs, such as printing and mailing cost, and web based advertising can lead to small expenditure. By the reduction of costs, the firm can provide much cheaper products and services to attract more customers, and thus it can help firm increase the revenue expansion. For the time reduction side, as the traditional store have difficult and very costly to update the products information, but the online information is all the time updated, and the interaction between service staff and customers and instant feedback to customers could be mad possible, in other words, these activities improve the relationship with customers indirectly, and also the enhanced interfaces and operational functions.

There are two types of E-commerce web sites: Business to Business Electronic Commerce (B2B) and Business to Customer Electronic Commerce (B2C). B2B is commerce where business activities between companies take place through web site channel. B2C is commerce where the purchase and sale transactions between the consumers and sellers. The Internet retailers can both have B2B commerce and B2C commerce as they can use B2B commerce to link directly to their suppliers and use B2C commerce to sell products and services to individual consumer through Ecommerce web site. The B2B commerce and B2C commerce have some similarities, such as they both use electronic payment systems, and facing the lack of trustiness between both sides. Even there are some challenges exist for doing E-commerce, but it is the trend that the E-commerce is an indispensable constitutes for firms while they are doing business.

Online Security, Privacy, Trust and Trustworthiness

Compare with the in-store shopping, the internet shopping has much higher risks during the purchasing process. As internet shopping is one of the non-store shopping formats, others such as mail order, telephone shopping, catalogue and so on, which have proved by recent studies shown that consumers perceive a higher level of risk. Even though the
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internet provides many functional advantages, but it still have some disadvantages, such as in the sections of security, privacy, trust and trustworthiness.

Security

Due to the characteristics of internet, the information across the web could be lost or stolen quite easily, especially the customers personal information and monetary details. In B2C E-commerce area, there are many web merchants are offering thirdparty privacy and security protection, such as encryption and password protections. The web merchants like TRUSTe provide a third-party verification program for their customers, once a Internet retailer joining the program, there will be a seal offered by TRUSTe shows that their commitment to security. Therefore, because of the third party verification, the customers considered this seal could make them more confident to provide their information to the site.

Even some websites have secured certified by professional organisation, but still have some customers lost their money through internet every year. These financial risks are mostly caused by customers themselves. The reasons could be widely, some customers have apparent sense of using credit card online in the insecurity way, such as public credit card details to unknown people or website, leave credit card in the public place where other people can easily reach, and internet shopping on the computer with virus. In the Maignan and Lukass research shows that the financial risks have been cited as a main reason to stop internet shopping, and security has become a major concern both in online transaction relationships. The security treats can be made through the network and data transaction, and also through unauthorized use. Thus, the Internet retailers have responsibility to keep monetary and personal details of customers safety during the process of online shopping. To improve the effectiveness of the Internet shopping environment could benefit both sellers and buyers and make much convince to the customers.

Privacy

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Another type of risk that consumer will faced is psychological risk, such as disappointment and frustration of shopping online, which is mainly caused by the privacy information lost. On the Internet, the privacy information could be tracked and collected, and then it can be used to sharing with third parties, in order to send spam mails or emails. The Federal Trade Commission (FTC) has statutory authority to prohibit the web site to acquire information by unfair and deceptive trade practices; however, it does not have ability to comprehensively control every activity among the Internet. According to Earp and Baumers research, because of the lack of legal remedies, this implies electronic customers should be aware of privacy risk and it could affect customers obstacle to shopping on the Internet. Moreover, it also leads to customers more carefully to decide what kind of information will be revealed online, and to which web site. From the survey results, most of customers willing to reveal their gender and ages, and 18% of respondents willing to provide credit card details to well-known web site while only 3% of respondents indicated willingness to provide the same information to lesser-known web sites. Moreover, web site that has privacy statement and third-party verification could reduce some customer concerns, but the evidence is not strong. Overall, customers are being very carefully to reveal their personal information since the legal environment of Internet is uncertain.

Trust and Trustworthiness

Mayer, Davis, and Schoorman defined trust as, the willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor, irrespective of the ability to monitor or control that other party. This definition is widely recognized and the most frequently cited. People purchase products and services are the most based on their level of trust in this product or services, and sellers either in the physical store or online shops. Online trust is the basic and essential element for building a relationship with customers. A present research shows that online trust is lower level than the face-toface interactions in the physical store, and the result from Cheung and Lee shows that
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trustworthiness of Internet merchant (perceived integrity, perceived competence, and perceived security control) and external environment (third-party recognition and legal framework) have considerable impact on consumer trust in Internet shopping (see figure 1). The trustworthiness of E-commerce web site is very relying on the how much privacy security can be provided. For example, a highly technical competence can be a factor to influence the trustworthiness. As mentioned above that the web merchant can provide third-party verification to E-commerce web site, and while this privacy and security strategies are used, customers will think their E-commerce transactions through Internet are secure and thus the site is more reliable to them. Beside this point, if the Ecommerce web site can provide the information about their customer services, location of the office, contact telephone number, and a help button on the web site, customers could also increase their trustiness as they can feel that the online retailers is truly exist.

In summary, the Internet offers a new way to do business and gives fresh shopping experience to customers. So far, there are many rules and conventions need to be improved to fit the online environment. For instance, the security must be ensured that the transactions on the Internet are safe; the privacy must be protected by the web sites; and the trust transference programs are needed to help engender customer trust in the Internet shopping environment.

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Online Consumer Behaviours As the traditional shopping behaviours are also could be transferred to internet shopping behaviour. Therefore, this chapter will pick some points of view in association with consumer behaviour that mentioned above and together with other ideas to have a deeper discussion. The current status of studies of online consumer behaviours is investigated through an analysis of existing literatures as background studies of consumer behaviours in order to understanding of the dynamic of online shopping field. After the consumer behaviour background examined, the shopping motivation of consumers and decision making process are considered to be separate into two sections in this study.

Background Since the explosion of the World Wide Web in the 1990s, relative Electronic commerce has been developed rapidly, and it has become an essential characteristic in the Internet era. According to UCLA Centre for Communication Policy, Internet shopping has become the third most popular Internet activities, immediately following email using and web surfing. Online consumer behaviour is complex and can be described as the process of purchasing products or services via the Internet, and Kardes suggested consumer behaviour is the study of human responses to products, services, and marketing of these products and services. As Liang and Lai indicated in their research that this process have similarities with traditional shopping behaviours. During the process of Internet shopping, the potential consumer recognized a need for products or services, and then, they use Internet for searching related information. If the information search result can meet their needs, the potential consumers evaluate alternatives in order to choose one of the best products or services, and final purchase is made and following with post-purchase evaluation. According to Li and Zhangs (2002) taxonomy that developed based on their analysis, there are ten impacts of relevant factors on online consumer behaviours (see figure 2). These ten factors could be categorized into five independent variables (external environment, demographics, personal characteristics, vendor/service/product characteristics, and web site quality) and five dependent variables (attitude toward
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online shopping, intention to shop online, decision making, online purchasing, and consumer satisfaction). The five independent variables are identified as antecedents, which directly determine attitudes towards online shopping. In the antecedents, the vendor/service/product characteristics and web site quality are directly impact on consumer satisfaction. The figure clearly shows that the antecedents, attitude, intention, decision making, and online purchasing are series of processing stage. Consumer satisfaction is separated and occurs among at all possible stages depending on the consumers involvement during the Internet shopping process, and this two ways relationship could influence each reciprocally.

There are many studies of online consumer behaviours in recent years, most of them focus on the factors influencing the online consumer behaviours, and the researchers seems to find different factors in different way. Moreover, there is a variety of studies which focus on comparisons between online and offline consumer behaviour in relation to different products has been presented. Consumer behaviour difference within online and offline shopping are mainly because of consumers attitude and interest. Now that consumers have both online and offline shopping choices, thus when buying books, some consumers using offline store as dating venues, and then buying from the online sites; or, on the other hand, some

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consumers prefer go to the physical bookstore as their perceptions of books and the environment in the bookstore. Consumers often use the Internet search for product information before buying from online or offline stores. According to Anfusos research (2004), the online research drives the offline sales. The study shows that the Internet plays a role as a consumer product information utility more than its role as a direct selling medium. Consumers use online product research, and then spending in the offline. Thus, the study found that Internet influenced offline spending is now growing faster than direct online spending, in other words, consumer still prefer shopping in offline store than buying from the Internet. Compare with convenience of the Internet provided, online consumers could easily go for research products. However, for offline consumers they may go into a store simply to research products, but not over and over. Moreover, many online visitors window shop more than impulse buy. The research shows that the internet has become a useful tool for comparison shopping and users often click around various sites to view and compare products, proceed to leave the site altogether, and then, possibly, return days later to purchase a product, or they might buy locally. Furthermore, online consumer might do this repeatedly, but the offline shoppers would be less likely to do research products very often. Therefore, the Internet shopping allows consumers more freedom to continuously visit and purchase products, even they leave without a purchase.

Shopping Motivation It is true that the E-commerce is increasingly adopted by business organisations, and there also have many evidences to prove that the online shoppers become much more active than before. Through the E-commerce web sits provide superior products and services and interactive communication with online retailers, customers feel more about values, and thus these beneficial offers from the Internet may turn into motivation for customers active or arouse their needs.

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Pittman defines a motivation as the activation of internal desires, need and concerns which energize behaviour and send the organism in a particular direction aimed at satisfaction of the motivational issues that gave rise to the increased energy. According to Perners research, there are several perspectives on behaviour as a way to understand what motivates the consumers: (1) The hard core behavioural perspective is based on learning theories like operant and classical conditioning. (2) The social learning perspective, which allows for vicarious learning. (3) The cognitive approach emphasizes consumer thinking rather than mere behaviour. (4) The biological approach suggests that most behaviour is determined by genetics or other biological bases. (5) The rational expectations perspective is based on an economic way of looking at the World. (6) The psychoanalytic perspective is based on the work of historical psychologists. All of the perspectives help to explain the motivation of consumers in which the customers do the shopping, and the major study in this research is related to the rational expectations perspective. In addition, through understanding of the motive for online shopping can facilitate the comprehension of consumers attitudes, intention and consideration. Thus, the following section Decision Making Process will be discussed about the factors that impact on consumer behaviours.

Decision Making Process Decision making process is the cognitive process leading to the selection of a series of actions among multiple alternatives. Every decision making process will have the final choice which called decision, and it can be an action or opinion. In this study, we mainly talk about the consumer decision making processes, which are the decision making processes undertaken by consumers in regard to before, during, and after the purchase of a product or service.

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According to the Wikipedia web site (2006), there are three ways of analysing consumer buying behaviours in general. They are: l. Economic models: These models are largely quantitative, and they are most relying on the assumptions of rationality and close perfect knowledge. In these models, the consumer is seen to maximize their utility, and some theory such as game theory can be used in some circumstances. 2. Psychological models: These models are qualitative rather than quantitative, and they concentrate on psychological and cognitive processes such as motivation and need reduction. Moreover, these models build on sociological factors like cultural influences and family influences. 3. Consumer behaviour models: These models typically blend both economic and psychological models, and which are practical models used by marketers usually.

In the recent of researches, it suggested that there is a five-stage decision making process for consumer to go through in any purchase (see the diagram below).

When people buy things, they will engage in a decision making process. Thus this model is important for anyone who making marketing decisions to consider the whole buying process rather than just the purchase decision. The current research shows that
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one of the major problems of E-commerce web sites is that they fail in supporting the customers in this process. By understanding the customers needs and concerns as they process the decision making cycle, marketer can provide better products and services. The model has five stages in the whole process, but it does not means that the customers need to pass through all stages in every purchase. In some cases, the customers often skip or reverse some of the stages. For example, a customer buying a favourite food would recognise the need, so he/she can skip the information search and evaluation, and just go right to the purchase decision. Moreover, the complexity of the decision making process can range from careful analysis (rational) to pure impulse (emotional), like the example above, the impulse buy can take place instantaneously, but the complexity purchase always take long time to analysis. Furthermore, this buying decision making process is iterative process, where people collect information from different sources and repeatedly return to re-evaluate and compare the information they have found. According to the researches from the usability consultancy UIE, the online buying decision making process can be acts as a sieve, where customers are filtered out through the each stage of the decision making process. From the figure below, there are 17% of customers are filtered out at the information search stage. In this percentage, there are 9% of customers werent able to find the products which they were looking for, and there are 8% of customers who find the right products but gave up at the end due to lack of information to identify final purchase. For the customers who want to evaluate their product alternatives, there are 25% of customers are filtered out due to some reasons: firstly, some stopped because there is none of the products can fit their needs; secondly, it is because the information of products was not enough to tell them that products are in satisfied their need. At the purchase stage, there are 12% of customers lost due to the inconvenience or disappointed by the E-commerce web site services. Again, there are 12% of customers have problems in the purchase evaluation stage. These customers are unhappy with the product that they purchased from online as some of them got the wrong products, some found the product was not what they expected, and extremely some customer did not receive the product at all.

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Need Recognition

The decision making process starts with need recognition. At this stage, the customer recognizes a need or responds to a marketing stimulus. Therefore, the Internet can provide huge amount of information for marketers utilize to stimulate consumer needs. For the online retailers, they have to do some researches in order to learn which customer needs and concerns they have when making purchase decision, and that could help them to support the customers decision making process. There are many ways to understand the customer needs: one effective and economical method is to collect information from salespersons that are in contact with customers very frequently; another way is through interviews with customers and observations their shopping behaviours in order to gain information. Moreover, online retailers can use advertising online/offline and web site promotions to attract customers come and consume. Besides this, if there is email list and those customers on the list have accepted subscribe to received information of new products and related offerings, which will also be useful to trigger need recognition.

Information Search

When the customers recognized a need, then they have to decide what and how much information is required. If there is enough information of products or services they got recently (which mainly according to their shopping experience), and that also meets the need close to hand, then the final purchase is likely to be made. Otherwise, there is information search process starts. After the customers start looking for information, there are many ways for customers to obtain new information. According to Tutor2u web site, it suggested four different sources: l. Personal sources: family, friends, neighbours etc.
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2. Commercial sources: advertising, salespeople, retailers, dealers, packaging, point-ofsale displays. 3. Public sources: newspapers, radio, television, consumer organisations, specialist magazines. 4. Experiential sources: handling, examining, using the product. Although there are many different sources help consumer to make purchase decisions, but consumers still have to make decisions on: 1. whether they will search information through offline channels or the Internet; 2. whether they will search information through the Internet and then buy through offline channels; 3. whether they will search information through offline channels and then buy through the Internet; 4. use the Internet for both information search and product purchase. As the Internet has one of the main competitive advantages which is the ability to collect as much products information as possible and makes all of the products can be compared among the different providers, therefore it plays a key factor to attract customers using the Internet as the first choice for information search. According to the UIE study is that the usability problems have exist in the design of the sites, such as customers could not find product and unable to process the checkouts. Therefore, online retailers should provide detailed product information and ease use of shopping interface in order to be able to support the customers decision making process. For example, in the online book industry, Amazon offers book reviews to help customers evaluate and make purchase decision. In addition to add more details in the product list such as image and product description, other valuable information such as top sellers can also lead to increased sales.

Besides the factors from the online retailers, consumers have their own characteristics which impact on the decision making process, such as their proficiency or knowledge. The extensive research shows that customers prior knowledge and experience of using Internet can influence the information search result. Moreover, Han also examined that the internet usage skill and familiarity with computers can affect consumer information search through the internet.

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With the development in information technology, more and more customers use a range of search techniques for information search. Search engine is the major and useful tool to support information search, which covers most likely the entire E-commerce web sites and produce hyperlinks to every sites which in association with products. Furthermore, some customers prefer the internal search facilities while they shopping online, which will increase the effectiveness of web site and also influence the consumers decision making process.

Evaluation of Alternatives

Once the customers obtained enough product information and then gained a number of possible alternatives, they must choose between the alternative brands, products and services in the evaluation stage. There is one important determinant of evaluation of alternatives is whether the customer perceived relevance of product, which are mainly according to the price and potential risks. The online customers not only compare product and price, but also need to consider the potential risks such as payment security. For the product and price, the online retailers need to differentiate the products that they were offering, and offer a competitive price or added other values into products such as lower cost of delivery. However, for the less price sensitive customers who more likely to purchase good quality product if the online retailer can improve the shopping interface and provide high quality information. For the potential risks, the online retailers can build more interactions between them and customers for increasing the consumer trust, and also need to employ some security controls during the payment transactions in order to reduce the risk. Moreover, a well deigned community which allows interactions between customers by leaving comments or opinions will also helps customer evaluate their alternatives.

Purchase

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At this stage, the emphasis should be on providing the secure online payment and the easies possible way for the customers to go through their orders. The recent research discovered that 2/3 of all online purchase processes are not completed at the end. There are many reasons for that: the first one is some required registration and poor shipping charge policies made customers leave; secondly, many customers could not find the information needed to complete the purchase; and some customers even did not find the way to checkout. In order to solve these problems, some well known web sites built a large and well staffed team to help customers during the purchase process, such as the Amazon did. Furthermore, the online retailers have to offer a wide range of electronic interactivities in order to serve customers efficiently. For example, the contact email address, instant message based on web, and frequently asked questions (FAQs) about shipping, payment, and return policy can be added in the design of E-commerce web site.

Post-Purchase Evaluation

The final stage is post-purchase evaluation of the decision, which results in a level of customer satisfaction or dissatisfaction. The post-purchase evaluation is common for customers to experience concerns, and which is determined by the customers overall feelings about the product after making a purchase decision. If the products or service meet the customers requirement, then they may feel more comfortable and thus may purchase again in the future. However, some customers after bought a product, they may feel that an alternative would be much preferable, thus they will not re-purchase the product and may switch to other brand next time. If the customers got dissatisfaction with the product as it does not meet their expectations, the product will be returned to online retailer. In order to manage the post-purchase evaluation stage and avoid the product to be returned, the online retailers with the marketing team to persuade the potential customers that the product will satisfy their need. Therefore, the customers will be encouraged that they have made the right decision after having made a purchase.

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Chapter 3

Research Methodology

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Need The need of this research is to identify and get insight into what main factors the online consumer takes into consideration when most he buy products on internet what affects their shopping behaviour, basic need of this research is to find out what are the main factors affect the online consumer when considering and making a purchase over Internet.

Objective of the study

To study the online shopping behaviour of customers To study the factors influencing online shoppers and consumers To study the customers level of satisfaction with regard to online shopping To examine whether customers prefer online shopping to physical stores.

Scope of the Study and Methodology

Scope of the study

At any given time there are millions of people online and each of them is a potential customer for a company providing online sales. Due to the rapid development of the technologies surrounding the Internet, a company that is interested in selling products from its web site will constantly has to search for an edge in the fierce competition. Since there are so many potential consumers, it is of the out most importance to be able to understand what the consumer wants and needs. The importance of analyzing and identifying factors that influence the consumer when he or she decides to purchase on the Internet is vital. Since the Internet is a new medium for there have been new demands set by the consumer. That is why it is crucial for the online retailers to know what influences the online consumer. Analyzing consumer behaviour is not a new phenomenon. The renowned marketing expert Philip Kotler has published several works on the topic of consumer behaviour theories. These theories have been used for many years not only to understand the consumer, but also create a marketing strategy
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that will attract the consumer efficiently Hence, understanding and identifying the consumer is closely related to the directions a company will take with their marketing strategy. These theories can also be applied to identify the online consumer and to create certain consumer segments. However, some distinctions must still be made when considering traditional consumer behaviour and online consumer behaviour.

Since online retailing is a new retailing medium and online consumer behaviour is diverse from traditional consumer behaviour, one must identify what influences the online consumer. Analyzing the process that the online consumer goes through when deciding and making a purchase over the Internet, shows some factors that consumers consider these factors need to be identified and taken into account by online retailers in order to satisfy consumer demands and compete in the online market.

Research Methodology

Data for this study was collected by means of a Survey conducted in Jaipur. The sample size was 100. .The Questionnaire (shown in Annexure) was used mainly to test the model proposed for Attitude towards online shopping. The type of research was both exploratory as well as Descriptive. Likert five point scales ranging from Strongly Agree to strongly disagree was used as a basis of Questions. We took around eleven different factors by studying the existing models of consumer attitudes that play an important role in online purchase, and then proposed a model leading to online shopping.

Research Strategy When collecting data to approach the purpose of a research there are two ways in which the data can be collected. In order to acquire a General knowledge about the topic, secondary data is primarily used and is one of the ways by which data can be collected. The second way to collect data is the primary data collection. Usually when a study is Conducted, secondary data is not sufficient enough and needs to be completed with primary data which is collected by the research.

Descriptive Research Method

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I will conduct the research in order to collect primary data and reach the objective of the Dissertation. I will also be discussing which different types of Methodologies were used. Since the research is of descriptive character the primary intention was to collect secondary data and analyze it. By doing so I found the factors Price, Trust and Convenience. I then collected primary data through a survey. The main purpose of the survey was to collect data about Online Consumer Behaviour and the significance of the established factors, Price, Trust, and Convenience In order to be able to find and establish Online Consumer Segments, Consumer Traits and Online Behaviour had to be identified. The segments were used in order to further identify what impact the factors Price, Trust, and Convenience have on Online Consumer Segments.

Sample Design

The factors that I intended to examine can be applied to and investigated at any population that uses the Internet and buys online products Online. Since there are time and resource restraints, a specific Population had to be identified in order to generalize and create relevant segments. I decided that the sample size should contain over 100 respondents and collected answers from100 respondents. The populations for this research are people of Jaipur. The city was chosen on a convenience basis. Convenience sampling involves using samples that are the easiest to obtain and is continued until the sampling size that is need is reached. I will attempt to collect as many respondents as possible but since I will be studying people of Jaipur I assume that there will be little variation in the population making it more approved to generalize the response rates. The sampling method for people took also place on a Convenience basis since the people that agree to answer the questionnaire are those that were chosen. Type of Research: Descriptive Research. Sample Size:- 100

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Q1. THE AGE OF RESPONDENTS?

AGE
8% 30% 15-20 21-24 25-29 30 and Above

17%

45%

INTERPRETATION

The above diagram shows us the percentage in the age of the respondents. As it shows that from age 15-20 the number of respondents are 30% and from age of 21-24 it is 45% and from 25-29 it is 14% and for 30 and above it is just 8%. This is the above data which is shown by this pie chart.

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Q2. THE GENDER OF RESPONDENTS?

GENDER

17%

MALE FEMALE

83%

INTERPRETATION

As majority of the respondents are from St. Xaviers College, I got more data from males as they were ready to give their experiences, the graph itself is showing more percentage of males rather than females, the percentage of males respondents is 83% and percentage of female respondents is only 17%.

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Q3. THE OCCUPATION OF THE RESPONDENTS?

OCCUPATION
1% 5% 5% STUDENT PROFESSIONAL GOVT. EMPLOYEE SELF EMPLOYED OTHER 87% 2%

INTERPRETATION The pie chart above shows the occupation of the respondent, this is to know that which segment of people are buying more products on the internet whether they are in the segment of student or government employees or professional or self employed, the pie chart shows that the segment of the students i.e. 87% is the most compared to the rest of the occupation in shopping online.

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Q.4 MONTHLY INCOME OF THE RESPONDENTS?

MONTHLY INCOME
3% 6% 2% 4% NONE LESS THAN 10,000 10,000-20,000 20,000-30,000 ABOVE 30,000 85%

INTERPRETATION This pie chart shows the percentage of monthly income of the respondents and it shows that maximum people buying online are not earning as they are students. These student often buy gadgets, CDs, apparels etc online.

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Q5. WHAT MOTIVATES RESPONDENTS TO SHOP ONLINE?

MOTIVATION TO SHOP ONLINE

37% 48%

EASY PAYMENT NO HIDDEN COST WIDE RANGE OF PRODUCTS NO TRAVEL TO SHOP

5% 10%

INTERPRETATION This chart shows us what motivates people to shop online. As from the result above I found out that no travelling to the shop and easy payment are two major things which motivate people to shop online.

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Q6. WHETHER CONSUMERS ARE GETTING COMPETITIVE PRICE?

DO YOU FEEL THAT THE ONLINE STORES ARE PROVIDING YOU COMPETITIVE PRICE?
7%

25%

YES NO CAN'T SAY 68%

INTERPRETATION This diagram shows us that whether online marketers are giving competitive price or not and result which came is that most of the people thought that online stores are providing competitive prices than physical stores. Result shows 68% of people say that it provides competitive prices and only 25% says no.

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Q7. WHAT PRODUCTS ARE BOUGHT BY RESPONDENTS?

WHAT PRODUCTS ARE BOUGTH BY RESPONDENTS ONLINE?

2% Books 20% 27% DVDs/CDs/Games Mobile 4% 7% 17% 15% 8% Event Tickets Laptop Sporting goods Clothing/Accessories/Shoes Other Items

INTERPRETATION The above pie chart shows that more people are willing to buy books but margins with other things is very less, such as clothes/accessories/shoes have a percentage of 20 and event tickets at 17%.

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Q8. WHAT HELPS YOU DECIDE WHICH SITE TO USE FOR SHOPPING ONLINE?

WHAT HELPS YOU DECIDE WHICH SITE TO USE FOR SHOPPING ONLINE?
Search Engine 6% 9% 18% Personal Recommedation 5% Special Offer Online Advertisement 32% 30% Same Store You Buy Offline TV/Print or Other Advertisement

INTERPRETATION This diagram shows us what affects people to buy products on internet and it shows that 32% people came to know about shopping sites through online advertisements and they get attracted towards it and start getting products from there. Whereas, 30% people decision is affected by special offers and the discounts given by the sites.

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Q9. WHICH METHOD OF PAYMENT IS USED BY THE RESPONDENT?

METHOD OF PAYMENT
7%

Credit/Debit Card 35% 56% Bank Transfer Cash on Delivery Paypal

2%

INTERPRETATION This diagram shows us majority people are comfortable using credit cards to pay for their shopping online (56%). This is closely followed by Cash on Delivery with 35%. It also shows that people are not willing to pay through banks or via Paypal.

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Q10. HAVE YOU FACED ANY PROBLEM WHILE SHOPPING ONLINE?

PROBLEM FACED WHILE SHOPPING ONLINE?

26%

Yes No

74%

INTERPRETATION This pie shows if people face any problem while shopping online or not. The result is that 74% of people dont face any problem while purchasing online but 26% of the people do face the problem.

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Table Age 15-20 21-24 25-29 30 & Above No. of Respondents 30 45 17 8

Gender Male Female

Respondents 83 17

Occupation Student Professional Government Employee Self Employed Other

No. of Respondents 87 5 1 5 2

Income None Less than 10,000 10,000-20,000 20,000-30,000 Above 30,000

Respondents 85 2 4 3 6

Motivation to Buy Online Easy payment No hidden cost No travel to shop

Respondents 37 5 10
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Wide range of Products

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Competitive Price Available Yes No Cant say

Respondents 68 25 7

Products Bought Books DVDs/CDs/Games Mobile Event Tickets Laptop Sporting Goods Clothing/Accessories/Shoes Other Items

Respondents 27 17 8 15 7 4 20 2

How Shopping Site is Chosen Search Engine Personal Recommendation Special Offers Online Advertisement Same Store you Buy Offline TV/Print or Other Advertisement

Respondents 18 5 30 32 9 6

Method of Payment Credit/Debit Cards Bank Transfer Cash on Delivery Paypal

Respondents 56 2 35 7

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Faced problem while Shopping Online Yes No

Respondents 74 26

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Chapter-5

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Summary The three segments that were found show a significant difference in the primary factor of concern. The general distribution showed that the factor price was the primary factor for the entire population sample, and that second factor was trust was closely followed by convenience. When we segmenting the respondents through the different variables we found that segment one were mainly trust oriented and the respondents had a high positive attitude towards purchasing books online. Other segment was mainly price and convenience oriented therefore took the most consideration to the opinions and experiences of the Reference groups. As they low disposable income and were somewhat convenience oriented when acquiring information about low prices, we chose to label them price easers. We found that most of the time youngster who are from the age of 20-25 shops a lot on the net rather than other age limits. People used to do online shopping because of its convenience rather than its pricing, but the main thing which is very common in the most of the people about online shopping is its risk of privacy i.e. hacking of account number getting passwords and all.

CONCLUSION

Increased Internet penetration, a hassle free shopping environment and high levels of Net saviness see more and more Indians shopping online. But at the same time the companies need to reduce the risks related to consumer incompetence by tactics such as making purchase websites easier to navigate, and introducing Internet kiosk, computers and other aids in stores. The goal is not to convert all shoppers to online purchasing, but to show them its an option. In addition to above, efforts need to be taken to educate the online buyers on the steps that need to be undertaken while making an online purchase. Moreover, the feedback of an online buyer should be captured to identify flaws in service delivery. This can be done through online communities and blogs that serve as advertising and marketing tools and a source of feedback for enterprises. I found that it
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is a challenge for E-marketers to convert low frequency online buyers into regular buyers through successful website design and by addressing concerns about reliable performance. Thus, the online retailing raises more issues than the benefits it currently offers. The quality of products offered online and procedures for service delivery are yet to be standardized. Till the same is done, the buyer is at a higher risk of frauds.

Indian E-Comm. Report Finds Heavy Spenders Driving Sales By Devin Comiskey August 16, 2007 A Survey by Indian research organization Juxtconsult found that more and more Indian Internet users are opening their wallets online. While such hurdles as limited broadband access and security concerns remain, the report finds there are currently more than 10 million shoppers online in India. While current trends point to increased e-commerce growth in India, the online marketplace in the country of more than 1 billion people is still relatively small. Juxtconsult's survey found that 40 percent of all urban Internet users buy online, while 42 percent of the sales originate through just five percent of consumers. The survey was conducted in April 2007 and sampled more than 30,000 users. "This section of buyers spends 5,000 rupees or more per month on the net," states the report. "It is interesting to note that two out of every three heavy spenders are also 'netholics,' those who are on the net for more than three hours per day...Of all those who buy online, only 25 percent are spending more than 1,000 rupees per month while the (remaining) 75 percent bill less than 1,000 rupees per month." (1,000 Indian rupees is currently equal to approximately $23 US.) The report also found that buying and search patterns among Indians differ between genders. "While 43 percent of male users buy online, only 31 percent of urban female users are consumers as well. Women tend to search more. Defying their more common attitude towards shopping, women are more guarded when it comes to the online market," says Juxtconsult. "Depending on the product type, nine percent to 25 percent are buying online, whereas 33 to 47 percent are searching the net for product information," it says.

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Security Fears Persist

Juxtconsult says the motivation for Indian users to make purchases online varies, but users fear compromised personal information is still a great risk when it comes to ecommerce. "The single biggest motivation for buying online for net users is saving time. Thirty-two percent of them look to shop online with this purpose. Convenience of shopping '24x7' and home delivery are other major incentives," says the report. "However, the concern of possible misuse of credit card or personal information is extremely significant among online buyers, with almost 55 percent of them voicing their concern. Clearly, tackling and countering the issue of online safety figures as an imminent challenge for net marketers." Books, CDs Top the List The products that are purchased most online in India, according to Juxtconsult, are books and CDs - making up 25 percent of all online purchases. "Ironically, computer hardware and software, despite having the home advantage are among one of the least bought products online, with only 13 percent buying them," says the report. "In sum, the online market in India is blossoming but is yet to take off in a considerable way. The Internet is still being used more for searching than buying products and services. Though a noticeable proportion of net users are also net consumers, essentially, at present only a small tribe among them is driving online shopping momentum," says Juxtconsult.

LATEST A new trend in this space is that of Meta search engines. Ixigo and Ezeego are two players in this space. A Meta search engine searches all the online travel sites (including the airlines sites as well) and displays the best deals for the user. Travel websites, such as Make My Trip India Pvt. Ltd and Yatra Online Pvt. Ltd, are battling to win over Indias Rs16,000 crores ($400 million) religious travel market Opportunity in Online Travel Industry: $2billion Online travel company MakeMyTrip (MMT) has recorded sales of Rs. 1000 crore for the financial year ending March 2008, as per a release.
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Barriers to the Growth of the Market: Consumer Bias 68 Consumers often display a bias for brands that they know well and have had a good experience in the past. Thus products of brands with a favourable bias will score over the products of less popular brands. A few would risk buying expensive jewellery from an unknown jeweller online. Lack of Touch Feel-Try Experience The customer is not sure of the quality of the product unless it is delivered to him and post-delivery of the product, it is sometimes a lengthy process to get a faulty or the unsuitable product changed. Thus, unless the deliverables are as per the customers expectations, it is hard to infuse more credibility in the e-Tailing market.

Mounting Competitive Pressures To attract customers, the competing online players are adopting all means to provide products and services at the lowest prices. This has resulted in making the consumers choice-spoilt, who in turn surf various websites to spot the lowest price for the product. Thus, although the number of transactions is increasing, the value of the products sold is continuously falling owning to high competition and leaner margins.

Seasonality E-Commerce Market is faced by seasonal fluctuations. As told by an Industry player, August to February is the peak seasons for sale, while March to July is the dry seasons for sale. During the peak season, occasions that drive the sales are Diwali, Rakhi, Valentines Day, New Year, Christmas, Mothers Day, Friendship Day etc. are. On these occasions younger generations prefers buying and sending gifts online.

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Credibility in Payment System Online frauds and breach are the biggest barriers to online sales. As a result, prospective buyers prefer staying away from revealing their credit card and bank details.

Untimely Delivery of Products It might take a few minutes to search, book and pay for products and services online, but the delivery of the product may take unreasonable time.

Recommendations As we came to know after researching on this topic we recommend that, the online sellers have to make their payment transparent, and as people are coming on their sites and they are buying their products , so retailers have to give more discounts to their customers so that they can visit again and again to their site , and it also helps to make people more aware about the low rick shopping of the net, and one more thing is that there should be transaction of money is very slow they have to make it fast so that customer dont have to face much problem to pay for the product, if customer is going to face some problem he is not going to visit our site and buy product . Following implications should be followed Discount prices A transfer and reliable retailer Fast transactions Focus on customer satisfaction

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